The federal government awarded more than $759 billion in contracts in fiscal year 2023, and 27 percent of that — nearly $205 billion — went to small businesses under set-aside programs. Winning a share of it starts with one skill: reading a solicitation carefully and responding to exactly what it asks for.
> TL;DR: Find the solicitation on SAM.gov. Read the entire document before touching a single word of your response. Decide whether you can meet every requirement (the go/no-go decision). Build a compliant proposal with a technical volume, price volume, and past performance section. Price using burdened labor rates and a defensible profit margin. Submit through the channel specified in Section L by the exact deadline. If you lose, request a debrief.
The three types of solicitations — and which one you are actually responding to
Not every government buy works the same way. The document type tells you the rules of the game.
Invitation for Bid (IFB). Used for sealed bidding on contracts where price is the only factor. Construction and commodity purchases are the classic examples. You submit a price. The lowest responsive, responsible bid wins. There is no technical evaluation, no best-value tradeoff, no credit for a clever approach. If you are not the lowest price, you do not win. Full stop. IFBs are governed by FAR Part 14.
Request for Quotation (RFQ). Used for commercial items and smaller purchases, often below the simplified acquisition threshold of $250,000 (FAR 2.101). Submitting a quote is not legally binding the way a proposal is — the government issues an order from the quote, rather than signing a contract in response to it. You will see RFQs on GSA Advantage and for simplified acquisitions under FAR Part 13. The evaluation criteria tend to be simpler: price, delivery, and a basic capability check.
Request for Proposal (RFP). The most complex and most common solicitation type for service contracts, IT work, professional services, and large procurements. FAR Part 15 governs RFPs. The government evaluates proposals on multiple factors — technical approach, past performance, price — and makes a best-value or lowest-price-technically-acceptable award. This is the format most small businesses spend their careers learning to respond to.
| Solicitation Type | FAR Part | Evaluation Basis | Common Use |
|---|---|---|---|
| IFB (Invitation for Bid) | Part 14 | Lowest price only | Construction, commodities |
| RFQ (Request for Quotation) | Part 13 | Price + delivery | Commercial items, simplified acquisitions |
| RFP (Request for Proposal) | Part 15 | Technical + past performance + price | Services, IT, professional work |
When in doubt about which type you have, look at the top of the first page. The document will name itself.
Making the go/no-go decision before you write a word
Writing a federal proposal takes anywhere from a few days to several months of work. The go/no-go decision — the honest assessment of whether you should bid — is the most valuable hour you will spend on any opportunity.
Ask these questions before touching the keyboard.
Can you meet every requirement in the Statement of Work? The Statement of Work (SOW) or Performance Work Statement (PWS) describes exactly what the government is buying. If a requirement calls for a facility security clearance and you don't have one, or for ISO 9001 certification you haven't pursued, the evaluators will mark you non-compliant. A non-compliant proposal is rejected before anyone reads your technical approach.
Do you have relevant past performance? Most RFPs ask for three to five past performance references of similar scope, dollar value, and complexity. "Similar" is evaluated against what you are bidding. A $500,000 network engineering proposal with $50,000 commercial references will not score well. Think carefully about whether your track record maps to the requirement before you invest the time.
Are you eligible for the set-aside? If the solicitation is set aside for SDVOSB, WOSB, HUBZone, or 8(a), only certified firms can submit a proposal. Bidding without the required certification is an immediate rejection. If you are close but not yet certified, check your readiness before the deadline.
Do you have enough time to write a competitive proposal? A rushed proposal loses to a prepared one. If the response window is ten days and you are discovering the solicitation on day seven, a realistic assessment might be to pass on this one and position yourself earlier on the next iteration.
Do you know why you would win? If you cannot name two or three concrete reasons the evaluators would pick you over the incumbent, the odds are against you. Win without a differentiator is theory; win with one is a plan.
Reading a solicitation: the sections that matter most
A federal RFP follows a uniform contract format defined in FAR 15.204. The lettered sections tell you everything you need to know about the work and the rules.
Section C — Statement of Work or Performance Work Statement. This is the requirement. Read it three times. The PWS describes outcomes the government wants to achieve; the SOW describes tasks it wants performed. Either way, this document is the rubric your proposal will be graded against. Every technical approach you describe should trace directly back to a requirement in Section C.
Section L — Instructions, Conditions, and Notices to Offerors. Section L tells you how to build the proposal. Page limits, file format, volume structure, font size, the number of past performance references required, whether oral presentations are involved. A proposal that violates Section L instructions can be rejected as non-compliant before it is evaluated on substance. Read it before you write anything.
Section M — Evaluation Factors. Section M tells you how you will be graded. It names the factors (technical approach, past performance, price), their relative weights, and the rating methodology. The order in which factors appear usually indicates their importance — a technical factor listed before price means technical is weighted more heavily. Write your proposal in the order Section M cares about, not the order Section C lists requirements.
Section H — Special Contract Requirements. Small-business subcontracting plans, security requirements, travel clauses, key-personnel provisions. Most solicitations above $750,000 to large businesses require a subcontracting plan. Read this section for obligations that will affect how you staff and run the contract.
One specific thing most first-time bidders miss: look for amendments. Contracting officers post amendments to SAM.gov to answer questions, extend deadlines, or change requirements. If you download the original solicitation and never check back, you may be responding to a requirement that no longer exists.
How the government evaluates proposals: LPTA vs. best value
Federal evaluations fall into two main frameworks, defined in FAR 15.101.
Lowest Price Technically Acceptable (LPTA). Under FAR 15.101-2, the government establishes a minimum technical bar — acceptable or unacceptable ratings on technical factors — and then awards to the lowest-price offeror who clears it. If you pass technical, only price matters. There is no credit for exceeding the technical standard. LPTA is used when the requirement is well-defined, the risk of poor performance is low, and the government is primarily optimizing for cost. Defense commodity contracts and routine support services often go LPTA.
Best-value tradeoff. Under FAR 15.101-1, the government compares proposals holistically across technical, past performance, and price factors. A higher-priced offer can beat a lower one if the technical approach and past performance justify the premium. The evaluation narratives explain the tradeoff. This is the framework where a differentiated technical approach actually matters — and where writing a stronger proposal has a measurable return.
The solicitation's Section M will tell you which framework applies. If it says "lowest price technically acceptable," invest your time in understanding the minimum bar and pricing aggressively. If it says "best value" or "tradeoff," invest in a differentiated technical approach.
Building a compliant proposal
A compliant proposal contains every element Section L requires, in the format it specifies, within the page limits it sets. Compliance is not the bar for winning; it is the bar for being evaluated. Non-compliance is an automatic disqualifier.
The technical volume
The technical volume is your plan for doing the work. It answers the question: how will you perform the Statement of Work?
Write to the PWS, not around it. For each major task or deliverable in Section C, your technical approach should describe your method, your staffing, your tools or process, and why your approach reduces risk for the government. Evaluators are matching your narrative to the requirements in Section C and the criteria in Section M. Make that matching easy. Don't make them hunt.
Avoid restating the SOW back to the government. Saying "We will provide the required deliverables on time" is not a technical approach. It is a recitation. Describe the how: what process, what staff, what tools, what checkpoints, and what evidence of reliability you will provide.
One more thing: use the exact language from the solicitation when referring to deliverables and requirements. Evaluators flag discrepancies between your terminology and the contract's terminology as a technical risk.
The past performance volume
Most RFPs ask for three to five references that demonstrate similar work. For each reference, provide:
- The contract name, number, agency or commercial customer
- The dollar value
- The period of performance
- The scope, in terms that map to what you are bidding
- A point of contact the government can call
The government will contact your references and may pull your CPARS record. Coordinate with your references before submission — a reference who is surprised by a government call is a reference who gives a weak answer. See the deeper guide on CPARS and past performance for how those evaluations work and what evaluators look for.
If you have no federal past performance, use commercial or subcontract work and describe why it is directly relevant. Evaluators have discretion to give limited credit for non-federal experience when scope and complexity are comparable.
The price volume
Price is evaluated separately from technical, usually by a different team. It does not improve because your technical volume is strong. Price it right on its own merits.
Pricing your bid
This is where more proposals fail than in any other section. The government does not accept "we will be efficient." It evaluates a detailed price buildup.
Labor categories and hours. Break your work down by labor category (program manager, senior engineer, analyst, etc.) and estimate the hours needed for each. Map labor categories to the job descriptions in the solicitation if it specifies them. Fabricated categories with vague titles raise red flags.
Fully burdened labor rates. Your hourly rate for each category is not the employee's salary divided by 2,080. It is the salary plus fringe benefits (typically 25–35% of base), plus an overhead rate (typically 15–30% for services firms), plus a general and administrative rate (typically 10–20%). The resulting number is your fully burdened direct labor rate. Add profit on top — typically 8–12% for service contracts, though it varies.
Indirect rates. If you have existing government contracts, your indirect rates are probably established. If you are a first-time bidder, you will need to build a rate structure and document it. Indirect rates that are wildly out of market for your industry will attract scrutiny. Defense Contract Audit Agency (DCAA) audits contractor cost accounting; even if you are not subject to full DCAA oversight yet, building a defensible indirect cost structure from the start is worth the effort.
Direct costs. Travel, materials, subcontractors, equipment. Each needs to be justified. If the solicitation requires travel, spell out who travels, where, how often, and at what per-diem rates (use the GSA per-diem rates at gsa.gov/perdiem as the baseline).
Total evaluated price. For LPTA competitions, this is the number you are competing on. For best-value competitions, evaluators will assess whether your price is realistic and complete relative to your technical approach. A price that seems too low raises questions about whether you actually plan to deliver what you proposed.
Submitting through SAM.gov and other portals
Most solicitations require electronic submission. Section L will specify the exact method. The main channels are:
SAM.gov (Contract Opportunities). Many solicitations, particularly civilian agency procurements, accept proposals through SAM.gov directly via the posting's "Submit Offer" function. Others post a SAM.gov notice but direct you to submit through a separate system.
DoD SAFE or other agency portals. The Department of Defense uses a variety of portals including PIEE (Procurement Integrated Enterprise Environment) and its module ProcureAware for certain solicitations. Health and Human Services uses HHS PSC. Always follow the submission instructions in Section L exactly.
Email or physical delivery. Still required by some solicitations, particularly small civilian agencies. If the solicitation specifies an email address and a time-stamped receipt requirement, test the email address in advance. Late proposals — including those delayed by email filters or wrong submission portals — are generally rejected under FAR 15.208.
The deadline is an absolute. FAR 15.208 allows the government to accept a late proposal only in specific narrow circumstances (government-caused delay, for example). A proposal that arrives one minute late, through the wrong portal, or in the wrong file format can be rejected without evaluation. Submit at least 24 hours early when possible.
After submission: award timeline and debriefs
The wait after submission varies widely. A simple RFQ may get an award in two to four weeks. A complex RFP with a large award value may take three to twelve months from proposal submission to contract award. The solicitation will often include an estimated award date; treat it as approximate.
Notifications. The government is required to notify offerors of award decisions. You will receive either a notice of award (if you won) or a notice that award went to another offeror (if you did not). Award notices are also posted on SAM.gov.
Debriefs. If you lose, you have the right to request a debrief under FAR 15.506. You must request it within three days of receiving notice of the award decision. The contracting officer then has five days to schedule it. A debrief will tell you your evaluated strengths, weaknesses, and deficiencies, as well as the overall evaluated cost and technical rating of the winning offeror. This feedback is invaluable for your next proposal. Request it every time you lose.
Protests. If you believe the award was improper — a legal error, a non-compliant winner, a conflict of interest — you can file a protest with the Government Accountability Office (GAO) or the Court of Federal Claims. A GAO protest must be filed within ten days of the debrief or no later than ten days after you knew or should have known the basis for the protest (Bid Protest Regulations, 4 C.F.R. § 21.2). Protests are a legitimate tool, not a sore-loser maneuver, but they require a genuine legal or regulatory basis.
Before your first bid: check your foundation
Bidding requires an active SAM.gov registration with a current UEI and CAGE code. It requires a NAICS code that matches the solicitation's requirement. It requires past performance you can reference. And it requires an honest assessment of whether your business is operationally ready to perform and survive the payment terms of a federal contract (net-30 to net-90 is common).
Our government readiness assessment walks you through the pre-bidding checklist — registration status, certification eligibility, past performance gaps, financial readiness — so you know what to fix before you spend weeks on a proposal you were not positioned to win.
For building your capability statement before you engage a contracting officer, see our federal capability statement template and builder. For finding the right opportunities before they become competitive solicitations, the guide to finding federal contract opportunities covers the full pipeline from procurement forecasts to sources sought responses.
Frequently asked questions
Do I need to be registered on SAM.gov to submit a proposal? Yes. An active SAM.gov registration with a Unique Entity Identifier (UEI) is required before you can receive a federal contract. Registration is free and takes roughly five to ten business days to process. No registration, no award.
What is the minimum size contract I can bid on? There is no minimum size, but the simplified acquisition threshold ($250,000 under FAR 2.101) is an important line. Below it, the government can use simplified acquisition procedures with far less documentation, faster timelines, and less formal proposal requirements. Micro-purchases (under $10,000) can be made with a credit card with no competition requirement at all.
Can I team with another company to meet requirements I don't have alone? Yes. Joint ventures, prime-subcontractor arrangements, and teaming agreements are all legitimate. Teaming with a larger firm that has the clearances, certifications, or past performance you lack is one of the most effective entry strategies for new contractors. The FAR allows it; buyers see it regularly. Just document the arrangement before submission.
What happens if I submit a non-compliant proposal? It is rejected without evaluation. Common non-compliance triggers include exceeding page limits, missing required volumes, submitting in a prohibited file format, or failing to provide a required representation or certification. Read Section L before writing a single word.
How do I price a contract when I don't know my indirect rates yet? Build a cost model based on comparable market rates and document your assumptions. The Defense Contract Audit Agency publishes industry-average indirect rate data that can serve as a starting benchmark. Many first-time contractors also work with a DCAA-experienced accountant or use resources from the APEX Accelerator network (formerly Procurement Technical Assistance Centers) to build their first indirect cost structure. APEX services are free and available in every state.
Last reviewed: June 2026
Primary sources: Federal Acquisition Regulation (FAR), acquisition.gov — particularly Parts 2, 13, 14, 15, and 42; SAM.gov Contract Opportunities at sam.gov/opportunities; GAO Bid Protest Regulations at 4 C.F.R. Part 21; GSA per-diem rates at gsa.gov/perdiem; CPARS guidance at cpars.gov; SBA federal contracting guidance at sba.gov/federal-contracting.
