Federal Construction Contracts: How to Win Government Projects in 2025

Federal construction represents a $150 billion annual market, offering stable, well-funded projects for contractors who navigate the procurement process successfully. From military base construction to federal courthouse renovations, opportunities span every trade and geographic region.

Winning federal construction contracts requires understanding registration requirements, procurement processes, and compliance obligations distinct from commercial work. This guide covers everything contractors need to know about pursuing federal construction—from SAM.gov registration to bid submission to contract execution.

In This Guide:

Federal Construction Market Overview
Getting Started: SAM Registration
Finding Federal Opportunities
Understanding Procurement Methods
Small Business Set-Aside Programs
Compliance Requirements
FAQ

Federal Construction Market Overview

Market Size: $150 billion annually Major Agencies: Department of Defense, GSA, VA, Army Corps of Engineers Growth Driver: Infrastructure Investment and Jobs Act ($550B infrastructure funding)

Major Federal Construction Categories

Military Construction (MILCON):

Barracks and housing
Training facilities
Hangars and maintenance facilities
Base infrastructure

Veterans Affairs:

Hospital construction and renovation
Outpatient clinics
Medical center modernization

General Services Administration:

Federal courthouses
Federal office buildings
Land ports of entry
Historic preservation

Army Corps of Engineers:

Flood control infrastructure
Navigation and harbors
Environmental restoration
Military construction support

Other Agencies:

National Park Service facilities
Bureau of Prisons construction
FAA facilities
Customs and Border Protection

Getting Started: SAM Registration

System for Award Management (SAM.gov)

All contractors pursuing federal contracts must register in SAM.gov:

Registration Requirements:

DUNS Number (now UEI - Unique Entity Identifier)
CAGE Code (Commercial and Government Entity)
Banking information for electronic payments
Business type classifications
NAICS codes for your services
Contact information

Timeline: Allow 2-4 weeks for complete registration and validation

Maintenance: Registration must be renewed annually; keep information current

Key NAICS Codes for Construction

Select appropriate NAICS codes during registration:

| NAICS Code | Description | |------------|-------------| | 236220 | Commercial and Institutional Building Construction | | 237310 | Highway, Street, and Bridge Construction | | 237110 | Water and Sewer Line Construction | | 238210 | Electrical Contractors | | 238220 | Plumbing, Heating, AC Contractors | | 238910 | Site Preparation Contractors |

Small Business Certifications

Consider pursuing certifications that unlock set-aside opportunities:

SBA Certifications:

8(a) Business Development: Socially and economically disadvantaged
HUBZone: Historically Underutilized Business Zones
WOSB/EDWOSB: Women-Owned Small Business
SDVOSB: Service-Disabled Veteran-Owned Small Business

Self-Certification:

Small Business (based on size standards)

Finding Federal Opportunities

SAM.gov Contract Opportunities

SAM.gov (formerly FedBizOpps) lists all federal contract opportunities over $25,000:

Search Features:

Keyword search by description
NAICS code filtering
Agency selection
Set-aside type filtering
Geographic location
Posted date range

Opportunity Types:

Presolicitation: Advance notice of upcoming procurement
Combined Synopsis/Solicitation: Simplified procurement
Solicitation: Formal invitation for bids
Award Notice: Contract awards (useful for subcontracting)

Agency-Specific Portals

Some agencies maintain separate procurement systems:

Army Corps of Engineers:

USACE Solicitation Center
Regional district procurement offices

Department of Veterans Affairs:

VA eCMS (Electronic Contract Management System)
Construction & Facilities Management

General Services Administration:

GSA eBuy for Schedule contracts
Regional procurement offices

Bid Aggregators

Commercial services consolidate federal opportunities:

ConstructionBids.ai:

Federal opportunities with commercial coverage
Daily digests matching your criteria
Compliance requirements identified

GovWin:

Federal market intelligence
Early-stage opportunity tracking
Competitor analysis

Understanding Procurement Methods

Sealed Bidding (IFB)

Traditional low-bid procurement for construction:

Process:

Agency issues Invitation for Bid (IFB)
Contractors obtain plans and specifications
Submit sealed bids by deadline
Public bid opening
Award to lowest responsive, responsible bidder

Best For: Well-defined projects with clear specifications

Competitive Proposals (RFP)

Best-value procurement considering factors beyond price:

Evaluation Factors:

Technical approach
Past performance
Management capability
Price (weighted against technical factors)

Best For: Complex projects requiring technical expertise

Simplified Acquisition

Streamlined procurement for smaller projects:

Micro-purchases (<$10,000): Minimal competition
Simplified Acquisition ($10,000-$250,000): Three quotes minimum
Commercial Items: Streamlined procedures

Task Order Contracts

Multiple Award Construction Contracts (MACC) and IDIQ vehicles:

Benefits:

Prequalified contractor pool
Faster task order awards
Ongoing relationship with agency
Reduced competition per task

Pursuit Strategy:

Compete for MACC/IDIQ contracts when solicited
Build relationships with contracting officers
Perform well on initial task orders

Small Business Set-Aside Programs

Small Business Set-Asides

Federal agencies must achieve small business contracting goals (currently 23%):

Total Set-Aside:

Competition limited to small businesses
Must meet size standard for NAICS code

Partial Set-Aside:

Portion reserved for small business
Remainder open competition

8(a) Business Development Program

SBA program for socially and economically disadvantaged businesses:

Benefits:

Sole-source contracts up to $4.5 million (construction)
Set-aside competitions among 8(a) firms
Business development assistance
Nine-year program participation

Requirements:

Unconditional ownership by disadvantaged individuals
Management and control requirements
Net worth limitations
Business size requirements

HUBZone Program

Supports businesses in Historically Underutilized Business Zones:

Benefits:

10% price evaluation preference
HUBZone set-aside contracts
Sole-source authority

Requirements:

Principal office in HUBZone
35%+ employees reside in HUBZone
Meet small business size standards

Service-Disabled Veteran-Owned Small Business (SDVOSB)

Supports businesses owned by service-disabled veterans:

Benefits:

SDVOSB set-aside competitions
Sole-source contracts up to $4.5 million (construction)
3% federal contracting goal

Requirements:

51%+ owned by service-disabled veterans
Management and control by veterans
Verification through SBA

Compliance Requirements

Davis-Bacon Act

Prevailing wage requirements for federal construction over $2,000:

Requirements:

Pay prevailing wages per DOL wage determination
Submit weekly certified payroll (WH-347)
Post wage determination at job site
Maintain records for three years

See our complete Davis-Bacon guide

Contract Work Hours and Safety Standards Act

Overtime requirements for federal contracts:

Time-and-a-half for hours over 40/week
Safe and healthful working conditions
Liquidated damages for violations

Buy American Act

Domestic preference requirements:

Use domestic construction materials
Exceptions for non-availability or unreasonable cost
Enhanced requirements under IIJA

Bonding Requirements

Federal construction typically requires:

Bid Bond: 20% of bid amount
Performance Bond: 100% of contract value
Payment Bond: 100% of contract value (protects subcontractors)

Miller Act requires bonds on federal construction over $150,000.

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Frequently Asked Questions

How do I start bidding on federal construction contracts?

Start bidding on federal construction contracts by:

Register in SAM.gov: Required for all federal contractors
Obtain necessary licenses: State contractor licenses, specialty certifications
Establish bonding capacity: Federal projects require bid, performance, and payment bonds
Monitor SAM.gov: Search Contract Opportunities for relevant solicitations
Consider certifications: SBA programs (8(a), HUBZone, SDVOSB) unlock set-aside opportunities
Start small: Pursue simplified acquisitions and subcontracting initially

What size contractor can pursue federal work?

Contractors of all sizes pursue federal construction work:

Small Contractors: Set-aside programs specifically target small businesses; simplified acquisitions under $250K have reduced requirements
Mid-Size Contractors: Competitive on many construction opportunities; consider joint ventures for larger projects
Large Contractors: Pursue major construction contracts; subcontracting requirements create opportunities for smaller firms

Small businesses have significant advantages through set-aside programs and small business goals.

How long does SAM registration take?

SAM.gov registration typically takes 2-4 weeks for complete processing:

Initial registration: 7-10 business days
CAGE code validation: Additional time if new code needed
Banking verification: May require additional validation
Renewal: Must be updated annually

Start registration before you need it. Registration issues cannot be resolved quickly when a bid deadline approaches.

What bonding is required for federal construction?

The Miller Act requires bonds on federal construction contracts over $150,000:

| Bond Type | Amount | Purpose | |-----------|--------|---------| | Bid Bond | 20% of bid | Ensures bidder will accept contract | | Performance Bond | 100% of contract | Ensures completion | | Payment Bond | 100% of contract | Protects subcontractors/suppliers |

Establish bonding capacity before pursuing federal work. Work with a surety experienced in federal construction.

What is the 8(a) program?

The SBA 8(a) Business Development Program assists small businesses owned by socially and economically disadvantaged individuals:

Benefits:

Sole-source federal contracts up to $4.5 million (construction)
Set-aside competitions limited to 8(a) firms
Business development and mentoring
Joint ventures with larger firms

Eligibility:

51%+ owned by disadvantaged individuals
Small business under SBA size standards
Demonstrated potential for success
Good character

The program runs for nine years, with increasing competition requirements over time.

How competitive is federal construction bidding?

Competition varies significantly by opportunity type:

Open Competition: Very competitive, 5-15+ bidders common
Small Business Set-Aside: Moderate competition, 3-8 bidders typical
8(a) Set-Aside: Less competition, 2-5 bidders typical
Geographic Set-Aside: Limited to local area contractors
SDVOSB/HUBZone: Smaller certified contractor pools

Certifications and set-aside programs significantly reduce competition compared to open procurements.

What past performance do I need?

Federal contractors must demonstrate relevant past performance:

New Contractors:

Commercial project experience counts
State and local government experience relevant
Start with smaller opportunities (simplified acquisition)
Consider subcontracting to build federal experience

Established Contractors:

Past Performance Information Retrieval System (PPIRS) ratings
References from previous federal contracts
Documentation of successful project completion

Past performance is evaluated as part of best-value procurements and often weighted heavily.

Can I subcontract on federal projects?

Yes, subcontracting is common on federal construction:

Finding Opportunities:

SAM.gov award notices identify prime contractors
SubNet (SBA subcontracting database)
Direct outreach to large prime contractors
Agency small business offices

Requirements:

Davis-Bacon prevailing wage compliance
Certified payroll submissions through prime
Buy American requirements apply
Payment bond protections

Subcontracting builds federal experience and relationships for future prime contract opportunities.

Conclusion

Federal construction represents $150 billion in annual opportunities for contractors who invest in understanding procurement requirements and compliance obligations. The Infrastructure Investment and Jobs Act channels additional billions into infrastructure projects, expanding opportunities across all trades.

Success in federal construction requires SAM.gov registration, appropriate bonding capacity, and commitment to compliance (Davis-Bacon, safety, domestic preference). Small business certifications unlock set-aside opportunities with reduced competition, providing pathways for contractors new to federal work.

ConstructionBids.ai monitors federal opportunities across all agencies, identifying relevant solicitations and clearly flagging compliance requirements to help contractors pursue government work efficiently.

Start your 14-day free trial and discover federal construction opportunities matching your capabilities.

Federal Construction Contracts: How to Win Government Projects in 2025

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