How to Bid on Federal Construction Contracts Successfully

Federal construction contracts represent a massive, stable market opportunity. The U.S. government spends over $100 billion annually on construction through agencies like the Army Corps of Engineers, GSA, VA, and Department of Defense. Here's how to access this market.

Understanding Federal Construction Procurement

Key Agencies

Major federal construction spending agencies:

• U.S. Army Corps of Engineers (USACE): Largest federal construction buyer
• Naval Facilities Engineering Command (NAVFAC): Navy/Marine construction
• General Services Administration (GSA): Federal buildings
• Department of Veterans Affairs: Healthcare facilities
• Air Force Civil Engineer Center: Air Force facilities
• Bureau of Reclamation: Water infrastructure
• National Park Service: Park facilities

Contract Types

Federal construction uses several contract types:

Firm Fixed-Price (FFP):

• Most common for construction
• You bear cost risk
• Price based on drawings and specs

Indefinite Delivery/Indefinite Quantity (IDIQ):

• Task order contracts
• Multiple award possible
• Work assigned via task orders
• Good for ongoing relationships

Job Order Contracts (JOC):

• Unit price based
• Typically for smaller projects
• Quick procurement for routine work

Design-Build:

• Combined design and construction
• Two-phase selection common
• Growing in federal use

Getting Started: Required Registrations

1. SAM.gov Registration

System for Award Management registration is mandatory:

Required Information:

• Legal business name and address
• DUNS number (now UEI)
• CAGE code (assigned during registration)
• Banking information
• Points of contact
• Business size and type
• NAICS codes
• Product/service codes

Registration Tips:

• Allow 2-3 weeks for processing
• Keep registration current (annual renewal)
• Update immediately if information changes
• Ensure bank account matches exactly

2. Unique Entity Identifier (UEI)

Replaced DUNS number:

• Assigned through SAM.gov
• Required for all federal contracts
• Free to obtain

3. CAGE Code

Commercial and Government Entity code:

• Assigned during SAM registration
• Used in contract administration
• Connects to Defense Logistics Agency

4. Small Business Certifications

If applicable, pursue:

• Small Business (self-certification)
• 8(a) Business Development Program
• HUBZone certification
• Service-Disabled Veteran-Owned Small Business (SDVOSB)
• Women-Owned Small Business (WOSB)

Finding Federal Construction Opportunities

SAM.gov Contract Opportunities

Primary source for federal bids:

Search Strategies:

• Filter by NAICS code (236220 for commercial building)
• Search by agency
• Set geographic parameters
• Filter by set-aside type
• Save searches with email alerts

NAICS Codes for Construction:

| Code | Description | |------|-------------| | 236220 | Commercial building construction | | 237310 | Highway construction | | 237110 | Water/sewer construction | | 238210 | Electrical contractors | | 238220 | Plumbing/HVAC contractors |

Agency-Specific Sources

Some agencies have additional portals:

• USACE: Solicitation module in ProjNet
• GSA: eBuy for schedule orders
• VA: VA Vendor Portal
• DoD: Defense Logistics Agency portals

Third-Party Services

Commercial services aggregate federal opportunities:

• ConstructionBids.ai (AI-powered matching)
• GovWin
• Bloomberg Government
• Federal Compass

Federal Acquisition Regulations (FAR)

Understanding FAR

The FAR governs federal procurement:

• Establishes uniform policies
• Defines contract types
• Sets competition requirements
• Specifies evaluation criteria

Key FAR Provisions for Contractors

FAR Part 36: Construction contracts

• Defines construction contracting procedures
• Bid bond requirements
• Performance/payment bond requirements
• Progress payment procedures

FAR Part 19: Small business programs

• Set-aside procedures
• Subcontracting goals
• Size standards

FAR Part 22: Labor standards

• Davis-Bacon Act compliance
• Service Contract Act
• Equal employment requirements

Davis-Bacon Requirements

Prevailing wages mandatory on federal construction:

• Wage determinations by location
• Certified payroll requirements
• Apprentice ratios
• Fringe benefit calculations

Factor Davis-Bacon wages into all federal bids.

The Federal Bidding Process

Solicitation Review

When you find an opportunity:

1. Download all documents from SAM.gov
2. Review the Statement of Work carefully
3. Check wage determinations included
4. Note all deadlines (questions, bid, completion)
5. Identify all requirements (bonds, insurance, certifications)

Pre-Bid Activities

Site Visits:

• Often mandatory for federal work
• Sign-in sheets verify attendance
• Ask questions; document answers
• Note security requirements

Questions/RFIs:

• Submit by deadline (strict enforcement)
• Get clarifications in writing
• Amendments issued to all bidders
• Don't rely on verbal responses

Bid Preparation

Required Documents (typical):

• [ ] Completed SF 1442 (Bid Form)
• [ ] Bid bond (20% of bid)
• [ ] Acknowledgment of amendments
• [ ] Representations and Certifications
• [ ] Schedule of Prices
• [ ] Subcontracting plan (if over threshold)
• [ ] Past performance information

Common Forms:

| Form | Purpose | |------|---------| | SF 1442 | Solicitation, Offer, Award | | SF 24 | Bid Bond | | SF 25 | Performance Bond | | SF 25-A | Payment Bond | | SF 330 | Architect-Engineer Qualifications |

Bid Submission

Follow instructions exactly:

• Electronic submission through SAM.gov
• Physical submission if required
• Arrive before deadline (late = rejected)
• Complete all required forms
• Sign all required signatures

Evaluation Criteria

Lowest Price Technically Acceptable (LPTA)

Award to lowest bidder meeting requirements:

• Most common for construction
• Technical compliance is pass/fail
• Price determines winner
• Little negotiation opportunity

Best Value

Tradeoff between price and non-price factors:

• Technical approach weighted
• Past performance considered
• Price isn't only factor
• May pay more for better offer

Common Evaluation Factors:

• Technical approach
• Management plan
• Past performance
• Price
• Small business participation

Past Performance Evaluation

Federal agencies check your history:

• CPARS ratings from prior contracts
• References from past performance questionnaires
• Relevance of experience
• Problems on prior contracts

Build positive CPARS ratings on every federal contract.

Bonding Requirements

Bid Bonds

Required for most federal construction:

• 20% of bid amount (standard)
• Guarantees you'll accept award
• Secures performance bond commitment

Performance and Payment Bonds

Required by Miller Act (over $150,000):

• Performance bond: 100% of contract value
• Payment bond: 100% of contract value
• Must use Treasury-approved surety

Obtaining Federal Bonds

Requirements are stringent:

• Strong financial statements
• Relevant experience
• Key personnel qualifications
• Equipment and capacity
• Bank references

Consider SBA Surety Bond Guarantee Program if bonding is challenging.

Strategies for Success

Start Small

Build federal experience gradually:

• Pursue contracts within your capacity
• Subcontract to learn federal processes
• Target set-aside opportunities
• Build CPARS ratings

Develop Agency Relationships

Get to know your target agencies:

• Attend industry days and outreach events
• Meet with Small Business Office
• Understand agency priorities
• Learn their contracting patterns

Partner Strategically

Consider teaming arrangements:

• Mentor-protégé relationships
• Joint ventures
• Subcontracting to primes
• IDIQ task order partners

Invest in Compliance

Federal contracts require systems:

• Accounting system for cost-type contracts
• Certified payroll procedures
• Safety program compliance
• Quality control systems
• Cybersecurity requirements (CMMC)

Common Pitfalls

Administrative Errors

• Missing signatures
• Incomplete forms
• Late submission
• Wrong format

Compliance Failures

• Davis-Bacon violations
• Small business misrepresentation
• Improper certifications
• Missing required documents

Performance Problems

• Schedule delays without justification
• Quality deficiencies
• Safety violations
• Poor documentation

Resources for Federal Contractors

Government Resources

• Procurement Technical Assistance Centers (PTACs): Free counseling
• SBA District Offices: Small business assistance
• Agency Small Business Offices: Outreach and guidance

Training

• Government contracting courses
• Federal acquisition certification programs
• Agency-specific training

Industry Organizations

• Associated General Contractors federal committee
• Society of American Military Engineers (SAME)
• National Contract Management Association (NCMA)

Conclusion

Federal construction contracts offer stable, well-paying work for contractors willing to navigate the procurement system. The learning curve is real, but the rewards—consistent work, reliable payment, and long-term relationships—justify the investment.

Start by completing your SAM.gov registration and pursuing opportunities that match your current capabilities. Build your federal experience systematically, maintain excellent performance records, and expand your reach over time.

The federal market rewards contractors who understand the rules and execute flawlessly. Make that investment, and you'll access opportunities that many competitors find too complex to pursue.