Government Contracting Q&A
100 direct answers to common questions about federal contracting, organized by what you need to know.
Eligibility Questions
Who qualifies, requirements, certifications and size standards
Eligibility Questions
Do you need security clearance for VA contracts?
Most VA contracts don't require security clearances. VA work typically involves healthcare, IT, and facilities rather than classified information. Background checks (not clearances) are common for patient-facing roles.
Can you bid on federal contracts without employees?
Technically yes, but winning is difficult. Most service contracts require demonstrated capability and personnel. Sole proprietors can win, but staffing plans and ability to hire are scrutinized heavily.
Can you bid on federal contracts if you owe back taxes?
Federal tax delinquency over $10,000 requires disclosure and may affect contract award. Serious delinquency can result in non-responsibility determination or prohibition from award under certain appropriations.
Who qualifies for SDVOSB certification?
A Service-Disabled Veteran-Owned Small Business must be 51% owned and controlled by service-disabled veterans. SBA now certifies SDVOSBs, and VA contracts require specific VA certification through VetCert.
Can Canadian companies bid on U.S. federal contracts?
Yes, Canadian companies can bid on most U.S. federal contracts. Canada is a TAA-designated country, and NAFTA/USMCA provisions facilitate cross-border procurement. Some security-related work may have restrictions.
Can you win federal IT contracts without FedRAMP authorization?
It depends. Contracts involving cloud services processing federal data typically require FedRAMP. On-premise solutions, non-cloud IT services, and some agency-specific authorizations may not require FedRAMP.
Do teaming partners and subcontractors need SAM registration?
Subcontractors receiving federal funding through flow-down typically need SAM registration. Teaming partners not receiving direct federal funds may not, but registration is often required by contract terms or prime contractors.
Can a fully remote company win federal contracts?
Yes, fully remote companies can win federal contracts, especially for professional services and IT work. However, some contracts require physical presence, security clearances, or on-site work that may not suit remote operations.
How much does it cost to get on a GSA Schedule?
There are no GSA fees to obtain a Schedule contract. However, contractors invest $10,000-$50,000 or more in internal costs for proposal preparation, or $15,000-$30,000 for consultants. Ongoing costs include the 0.75% Industrial Funding Fee.
Do you need insurance for federal contracts?
Yes, most federal contracts require minimum insurance coverage. Common requirements include general liability, auto liability, workers' compensation, and sometimes professional liability depending on contract type.
Do you need bonding for federal contracts?
Bonding requirements depend on contract type and value. Construction contracts over $150,000 require performance and payment bonds. Supply and service contracts generally don't require bonds.
Can a subcontractor become a prime contractor on the same contract?
Generally no, due to organizational conflict of interest concerns. However, you can transition from sub to prime on future recompetes if you exit the current team.
What disqualifies you from federal contracts?
Debarment, suspension, tax delinquency, criminal convictions, false statements, and violations of federal law can disqualify contractors.
Do you need CMMC certification for all DoD contracts?
No, CMMC is only required for contracts involving Controlled Unclassified Information (CUI). Many DoD contracts don't handle CUI and won't require CMMC.
Can a business be both 8(a) and HUBZone certified?
Yes, you can hold multiple certifications simultaneously including 8(a), HUBZone, WOSB, and SDVOSB if you meet all requirements.
Who qualifies for HUBZone certification?
Businesses must have principal office in a HUBZone, 35% of employees living in HUBZones, and meet small business size standards.
Can nonprofit organizations bid on federal contracts?
Yes, nonprofits can bid on federal contracts. However, they are not eligible for small business set-asides and may face restrictions on fee/profit.
Do you need a physical office to bid on federal contracts?
A physical address is required for SAM.gov registration, but remote/home-based businesses can compete. Some contracts require local presence.
Can LLCs get federal contracts?
Yes, LLCs are fully eligible for federal contracts and are a common business structure for government contractors.
Do you need a GSA Schedule to bid on federal contracts?
No, GSA Schedule is not required. You can bid on open-market solicitations posted on SAM.gov without a Schedule.
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