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How to Sell to the U.S. Government: The Complete Guide for Tech Companies

Everything a tech company needs to know about selling to the federal government — from SAM.gov registration to winning your first contract.

The $700 Billion Market You're Not In

The U.S. federal government is the largest buyer on Earth. Over $700 billion in contracts flow annually through federal agencies — from software and cybersecurity to logistics and construction. And yet, most tech companies have never pursued a single federal dollar.

Not because they're unqualified. Because the system looks impenetrable from the outside.

It's not. It's complex, yes. It has its own vocabulary, its own rhythms, its own rules. But thousands of companies with fewer than 50 employees sell to the government every year. Many started exactly where you are now — staring at SAM.gov wondering where to begin.

Step 1: Register in SAM.gov

The System for Award Management is the federal government's vendor registry. No registration, no contracts. Period.

You'll need your company's EIN, your banking details for payment, and a login.gov account. The registration process takes 10-15 business days and costs nothing — ignore any service that tries to charge you.

During registration, you'll receive a Unique Entity ID (UEI) and a CAGE Code. You'll also select NAICS codes — industry classification codes that determine which opportunities you're eligible for. Pick every code that genuinely applies to your work, not just your primary one.

Renew annually. An expired SAM registration disqualifies you from awards even if you've already won the evaluation.

Step 2: Understand How the Government Buys

Every purchase above a certain threshold follows the Federal Acquisition Regulation (FAR). The basic flow: an agency identifies a need, writes a solicitation (RFP, RFQ, or RFI), posts it publicly, evaluates responses, and awards a contract.

Three things to internalize early. First, government buyers are risk-averse — your job is to make them feel safe choosing you. Second, past performance matters enormously. Start small with subcontracting, SBIR grants, or micro-purchases under $10,000. Third, relationships matter as much as proposals.

Step 3: Find Opportunities

All federal contract opportunities above $25,000 are posted on SAM.gov under Contract Opportunities. But by the time an RFP hits SAM.gov, the buying office usually has a preferred vendor in mind.

The real competition happens earlier — during the market research phase when agencies post RFIs and Sources Sought notices. Responding to these puts you on the buyer's radar and can shape the eventual solicitation in your favor.

Step 4: Choose Your Entry Point

SBIR/STTR — Novel technology, compelling research narrative. Phase I awards (~$250K). No prior government experience needed.

GSA Schedule — Mature commercial product. Takes 6-12 months but gives agencies an easy way to buy from you.

DIU Commercial Solutions Opening — Commercial tech with defense application. White paper submissions, no FAR compliance for prototype phase.

Subcontracting — Low-risk exposure. Large primes are required to subcontract to small businesses.

Step 5: Build Your Capability Statement

A capability statement is a one-page document: core competencies, past performance, differentiators, NAICS codes, UEI, CAGE code, and certifications. Keep it to one page and free of marketing fluff.

Step 6: Start Showing Up

Attend industry days. Request capability briefings. Respond to every relevant RFI. Join industry associations (NDIA, AFCEA, PSC). The goal isn't to sell — it's to become known before the RFP drops.

Common Mistakes

Bidding on everything. Focus on 3-5 agencies. Marketing-speak in proposals. Address requirements directly. Ignoring compliance. One missing form can disqualify you. Giving up after one loss. Average win rate is 30-40%. Always debrief.

The Timeline

6-12 months to first proposal. 12-18 months to first award. 2-3 years to sustainable pipeline. SBIR grants can shorten this to 3-6 months.

Outrider shortens this timeline by matching your capabilities directly to government needs using AI — so you spend less time searching and more time winning.
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