Federal construction contracts represent a significant opportunity for qualified contractors. The federal government spends billions annually on construction, from military facilities to federal buildings to infrastructure projects. Here's how to enter and succeed in federal construction procurement.
Understanding Federal Procurement
Market Overview
Federal Construction Spending
- Department of Defense facilities
- General Services Administration buildings
- VA medical facilities
- Federal courthouses and offices
- National parks and public lands
- Border and security infrastructure
Contract Types
- Construction (new and renovation)
- Repair and maintenance
- Design-build
- IDIQ (Indefinite Delivery/Indefinite Quantity)
- Job Order Contracts
Key Agencies
Major Construction Spenders
- Army Corps of Engineers (USACE)
- Naval Facilities Engineering (NAVFAC)
- Air Force Civil Engineer Center
- General Services Administration (GSA)
- Department of Veterans Affairs
- National Park Service
SAM.gov Fundamentals
What Is SAM.gov
System for Award Management
- Required registration for federal contracts
- Contractor information database
- Opportunity listing platform
- Compliance verification
Key Functions
- Entity registration
- Contract opportunity search
- Award data
- Exclusion records
Registration Process
Getting Started
- Obtain DUNS number (now UEI)
- Register in SAM.gov
- Complete required information
- Renew annually
Information Required
- Business information
- Financial data
- Ownership details
- Past performance information
- Socioeconomic status
Timeline
- Initial registration: 7-10 business days
- Annual renewal required
- Keep information current
Entity Validation
UEI (Unique Entity Identifier)
- Replaced DUNS number
- Assigned through SAM.gov
- Required for all federal contracts
- Use for all government dealings
Finding Federal Construction Opportunities
SAM.gov Contract Opportunities
Search Functions
- Keyword search
- NAICS code filtering
- Agency selection
- Geographic area
- Set-aside type
Relevant NAICS Codes
- 236220: Commercial building construction
- 237310: Highway and street construction
- 237990: Other heavy construction
- 238XXX: Specialty trade contractors
Alert Setup
- Save searches
- Email notifications
- Daily/weekly digests
- Opportunity tracking
Agency-Specific Sources
Corps of Engineers
- USACE Solicitations website
- District-specific opportunities
- Presolicitation notices
- Market research announcements
GSA
- GSA eBuy
- Schedule opportunities
- Small business set-asides
- Regional office solicitations
Other Agencies
- Agency procurement websites
- FedBizOpps archive integration
- Specialized industry days
- Forecast publications
Federal Contracting Requirements
Registration Requirements
Essential Registrations
- SAM.gov (mandatory)
- Agency-specific registrations
- Security clearances (some projects)
- Environmental certifications
Compliance Requirements
Standard Requirements
- Davis-Bacon prevailing wages
- Equal Employment Opportunity
- Buy American provisions
- Small business subcontracting plans
Project-Specific
- Security clearances
- Bonding requirements
- Insurance specifications
- Past performance requirements
Small Business Programs
Set-Aside Categories
- Small Business (SB)
- Small Disadvantaged Business (SDB)
- Women-Owned Small Business (WOSB)
- HUBZone
- Service-Disabled Veteran-Owned (SDVOSB)
- 8(a) Business Development
Certification Benefits
- Exclusive competition
- Sole-source potential
- Subcontracting opportunities
- Price evaluation preferences
Federal Bid Process
Solicitation Types
Invitation for Bid (IFB)
- Sealed bidding
- Lowest price technically acceptable
- Clear specifications
- Minimal negotiation
Request for Proposal (RFP)
- Best value evaluation
- Technical and price factors
- Negotiations possible
- More complex evaluation
Timeline
Typical Federal Procurement Timeline
- Presolicitation: Advance notice
- Solicitation: Formal release
- Questions: Site visits, RFIs
- Submission: Proposal/bid due
- Evaluation: Review period
- Award: Contract execution
Submission Requirements
Proposal Contents (RFP)
- Technical approach
- Past performance
- Management plan
- Small business participation
- Price proposal
Bid Contents (IFB)
- Completed bid schedule
- Required representations
- Bonds
- Certifications
Evaluation Methods
Lowest Price Technically Acceptable (LPTA)
How It Works
- Meet technical requirements
- Lowest price wins
- Pass/fail technical evaluation
- No technical trade-offs
Strategy
- Ensure compliance
- Competitive pricing
- Clear documentation
- No extras needed
Best Value Trade-Off
How It Works
- Technical quality weighted
- Past performance matters
- Price considered with quality
- Trade-offs evaluated
Evaluation Factors
- Technical approach
- Past performance
- Management capability
- Price
Strategy
- Strong technical proposal
- Excellent past performance
- Competitive (not necessarily lowest) price
- Differentiation focus
Past Performance
Building Federal Experience
Starting Points
- Subcontract to experienced primes
- Small set-aside contracts
- Indefinite delivery contracts
- State/local government work
Documentation
- CPARS/PPIRS entries
- Contract completion records
- Reference letters
- Project descriptions
CPARS (Contractor Performance Assessment Reporting System)
How It Works
- Agency evaluates contractor performance
- Ratings assigned
- Available to future source selections
- Critical for best value proposals
Rating Categories
- Quality
- Schedule
- Cost control
- Management
- Small business participation
Protecting Your Record
- Review interim evaluations
- Address issues promptly
- Comment on ratings
- Build positive history
Bonding for Federal Work
Standard Requirements
- Bid bond: 20% of bid
- Performance bond: 100%
- Payment bond: 100%
Miller Act Requirements
- Applies to contracts >$150,000
- Performance and payment bonds required
- Statutory framework
- Claim procedures defined
Surety Considerations
- Federal experience matters
- Bonding capacity needed
- Treasury-listed sureties
- Relationship important
Security Requirements
Security Clearances
When Required
- Military installations
- Sensitive facilities
- Classified work areas
- Critical infrastructure
Types
- Facility clearances
- Personnel clearances
- Specific access requirements
Timeline Implications
- Clearance processing takes time
- Plan ahead for requirements
- Maintain clearance status
- Build cleared workforce
Common Federal Contracting Challenges
Compliance Complexity
Challenge: Extensive regulatory requirements
Solution: Build compliance systems, consider compliance support, start with simpler contracts
Past Performance Requirements
Challenge: Can't get work without experience
Solution: Subcontract first, pursue small set-asides, document all relevant experience
Long Procurement Cycles
Challenge: Extended timelines from solicitation to award
Solution: Plan capacity accordingly, pursue multiple opportunities, understand timeline expectations
Pricing Pressure
Challenge: Competitive federal market
Solution: Understand true costs, efficient operations, appropriate risk pricing
Building Your Federal Practice
Getting Started
Entry Strategy
- Complete SAM registration
- Identify target agencies/work
- Build past performance (subcontract if needed)
- Pursue appropriate set-asides
- Develop compliance capability
Growth Path
Progression
- Small contracts → Medium → Large
- Subcontractor → Prime
- Set-aside → Full competition
- Single agency → Multiple agencies
Resources
Support Available
- Procurement Technical Assistance Centers (PTACs)
- Small Business Administration
- Agency small business offices
- Industry associations
Conclusion
Federal construction offers significant opportunities for contractors willing to invest in understanding the system. Success requires proper registration, compliance capability, past performance documentation, and strategic pursuit.
Start with SAM.gov registration and target opportunities that match your capabilities. Build experience through subcontracting or small set-asides. Develop compliance systems that meet federal requirements. Over time, grow your federal practice through proven performance and expanded capabilities.
ConstructionBids.ai includes federal construction opportunities from SAM.gov alongside state and local bids, giving you a comprehensive view of public construction opportunities.
