Federal Government Construction Contracts: Complete 2025 Guide

Federal government construction represents a $50+ billion annual market, funding everything from military bases to VA medical centers. For contractors equipped to navigate federal requirements, this market offers stable work, reliable payment, and multi-year opportunity pipelines.

Federal Construction Market

$50-60B

Annual Value

50,000+

Contracts/Year

23%

Small Business Goal

$1-2M

Avg Contract Size

Federal Construction Market Overview

Major Spending Categories

Military Construction (MILCON)

35% of spending

Federal Buildings & Facilities

25% of spending

Infrastructure

20% (highways, waterways, flood control)

Veterans Affairs

10% of spending

Key Contracting Agencies

Department of Defense

• Army Corps of Engineers (USACE)
• Naval Facilities Engineering (NAVFAC)
• Air Force Civil Engineer Center
• Defense Logistics Agency

Civilian Agencies

• General Services Administration (GSA)
• Veterans Affairs (VA)
• Department of Energy
• National Park Service

Registration Requirements

SAM.gov Registration (Required)

System for Award Management registration is mandatory for any federal contract work.

Registration Steps:

Obtain a UEI (Unique Entity Identifier)

Create a login.gov account

Complete representations and certifications

Renew annually (expires after 1 year)

Timeline: Allow 2-4 weeks | Cost: Free (beware third-party services charging fees)

Small Business Certifications

8(a) Business Development

For small disadvantaged businesses. 9-year program with sole-source contracting authority.

HUBZone

Principal office in Historically Underutilized Business Zone. Competitive and sole-source preferences.

SDVOSB

Service-Disabled Veteran-Owned Small Business. Owned/controlled by service-disabled veteran(s).

WOSB

Women-Owned Small Business. 51%+ owned/controlled by women. Access to WOSB set-asides.

Finding Federal Construction Bids

SAM.gov Contract Opportunities

The primary source for federal contract opportunities. Search and filter by:

• NAICS code (236xxx, 237xxx, 238xxx for construction)
• Set-aside type (small business, 8(a), SDVOSB, etc.)
• Place of performance (state, ZIP code)
• Posting date range

Opportunity Types

Presolicitation

Advance notice of upcoming solicitations

Solicitation

Active bid opportunities

Award Notice

Contracts awarded—intelligence for future

Sources Sought

Market research—respond to get on radar

Federal Contract Compliance

Davis-Bacon Act

All federal construction over $2,000 requires:

• Pay prevailing wages by location
• Submit certified weekly payroll
• Post wage determination on site
• Maintain records 3 years

Miller Act Bonding

Required for federal construction:

• Bid bond: 20% of bid price
• Performance bond: 100%
• Payment bond: 100%

Safety Requirements

Federal contractors must comply with:

• OSHA requirements
• EM 385-1-1 (USACE)
• Site-specific safety plans
• EMR impacts evaluation

Bidding Strategies

Understanding Evaluation Methods

LPTA: Lowest Price Technically Acceptable—price drives selection
Best Value: Price and non-price factors evaluated together
Simplified: Under $250K, streamlined procedures

Building Past Performance

Start Small: Build federal record with smaller contracts
Document Everything: Maintain successful completion records
CPARS Ratings: Manage relationships for positive evaluations

Pricing Federal Work

Factor in: detailed labor rate build-up, Davis-Bacon wage impact, certified payroll administration, enhanced safety requirements, Buy American compliance, and quality control programs.

Find Federal Construction Opportunities

ConstructionBids.ai aggregates federal construction opportunities from SAM.gov and agency sources. Combined with state and local bids, receive comprehensive public sector coverage in one daily digest.

7-day free trial•Cancel anytime

Start Free Trial

Frequently Asked Questions

How do I get a government construction contract?

Register in SAM.gov, obtain appropriate certifications if eligible, monitor SAM.gov opportunities, submit competitive compliant proposals, and build past performance through smaller contracts or subcontracting.

What is required to bid on federal construction contracts?

Active SAM.gov registration with correct NAICS codes, adequate bonding capacity, Davis-Bacon compliance capability, relevant past performance, and meeting any set-aside requirements.

Do I need to be a small business for federal contracts?

No, but small business status provides significant advantages. 23% of contracts go to small businesses through set-asides and sole-source awards.

What is Davis-Bacon and why does it matter?

Davis-Bacon requires paying locally prevailing wages on federal projects over $2,000. This increases labor costs and requires certified weekly payroll reporting. Violations can result in contract termination and debarment.