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
Can foreign companies bid on federal contracts?
Foreign companies can bid on some contracts, but many have restrictions. Trade agreement countries have more access. Security-sensitive contracts are restricted.
Can a sole proprietor get a federal contract?
Yes, sole proprietors can register in SAM.gov and compete for federal contracts, though forming an LLC or corporation offers better liability protection.
Can I bid on contracts using different NAICS codes?
Yes, you can bid on contracts in any NAICS code you're qualified to perform, but each solicitation specifies a NAICS code that determines size standard for that contract.
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.
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 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.
What disqualifies you from federal contracts?
Debarment, suspension, tax delinquency, criminal convictions, false statements, and violations of federal law can disqualify contractors.
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 security clearance for all federal contracts?
No, most federal contracts don't require security clearances. Only contracts involving classified information require cleared personnel.
Do you need past performance to win federal contracts?
Not always. Micro-purchases and some simplified acquisitions don't require it. For larger contracts, commercial experience or key personnel experience may qualify.
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 determines if my business is considered "small" for federal contracts?
Size standards vary by NAICS code and are based on average annual revenue (typically $750K-$47M) or average employees (typically 500-1,500) over the past 3-5 years.
Can a new company with no experience win federal contracts?
Yes, new companies can win federal contracts, though starting with micro-purchases, subcontracting, or GSA Schedule can build needed past performance.
Who qualifies for 8(a) certification?
Business owners must be socially disadvantaged, economically disadvantaged, and control day-to-day operations. The business must be small and at least 51% owned by qualifying individuals.
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 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 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.
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.
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