How to get government construction contracts is a five-step process: registration, NAICS codes, bonding, opportunity search, and a disciplined bid decision. The market for government construction contracts is huge. In FY2025, Federal agencies obligated $50.1 billion on construction contracts (NAICS sector 23), per USASpending.gov. In addition, small businesses won $21.6 billion of it. That is a 43% share, far above the 28% small-business share across all federal contracts.
The federal government pays its bills too. When you work with them, you never have to worry about collecting. Think about what it could mean for your business to capture just a small percentage of that consistent and easy revenue. Could you hire more people? Buy more equipment? Or maybe even increase your bottom line and hire a manager so you can finally take a vacation? Keep reading to learn how you can accomplish all of this.
How much does the federal government spend on construction?
First, let’s talk dollars and cents. Who’s buying, and how much are they buying? You’ll need to know this if you want to get government construction contracts. I promise we’ll cover the “how” part soon.
As we said earlier, the feds obligated (meaning they signed a contracts to pay for goods and services) $50.1 billion on construction contracts in FY2025. Commercial and institutional building construction (NAICS 236220) took the largest share at $30.6 billion. If this is your business, you better be doing work with the feds already.
Here are the largest construction NAICS codes by FY2025 federal obligations, with the Small Business Administration (SBA) small-business size standard for each. Pay attention to the SBA size standard. Thus, if you can certify as a small business (meaning your receipts for the last year are under the SBA size standard for that NAICS code), you are MUCH more competitive to win the work.
| NAICS code | Industry | FY2025 federal obligations | SBA small-business size standard |
|---|---|---|---|
| 236220 | Commercial and Institutional Building Construction | $30.6B | $45M |
| 237990 | Other Heavy and Civil Engineering Construction | $10.3B | $45M* |
| 237310 | Highway, Street, and Bridge Construction | $1.2B | $45M |
| 236210 | Industrial Building Construction | $1.2B | $45M |
| 237130 | Power and Communication Line Structures | $1.1B | $45M |
| 238220 | Plumbing, Heating, and Air-Conditioning Contractors | $1.0B | $19M |
| 238210 | Electrical Contractors and Wiring Installation | $0.8B | $19M |
Source: USASpending.gov, FY2025 contract obligations (award types A–D), retrieved July 30, 2026. Size standards: SBA size standards table. *Dredging has a separate, lower standard.
Again, the size standard decides which small business set-aside contracts you can win. A firm with $35 million in average annual receipts is small under NAICS 236220. The same firm is large under NAICS 238220. Make sure that your average receipts are below the standard for each code in the SBA size standards table before you certify as a small business.
Which agencies buy the most construction work?
Now let’s get to they buyers. Do you have a military base in your town? That’s Department of Defense (DoD). What about a port of entry? That’s the Department of Homeland Security (DHS). When you know who’s buying, you can approach them and win work (which we’ll cover soon)!
The DoD bought $31.4 billion of construction goods and services in FY2025. That is 63 percent of all federal construction obligations. If you want to get government construction contracts, get to know the DoD.The DHS came second at $6.2 billion, and the Department of Veterans Affairs was third at $3.6 billion.
| Agency | FY2025 construction obligations |
|---|---|
| Department of Defense | $31.4B |
| Department of Homeland Security | $6.2B |
| Department of Veterans Affairs | $3.6B |
| Department of the Interior | $2.3B |
| General Services Administration | $1.5B |
| Department of Transportation | $1.3B |
| Department of State | $1.2B |
| Department of Energy | $1.1B |
Source: USASpending.gov, top awarding agencies for NAICS 23, FY2025 obligations, retrieved July 30, 2026.
How do you register to bid on federal construction contracts?
Now the nuts and bolts. Let’s talk about how you actually bid on government construction contracts. The first few steps are easy and you can do them in just an afternoon! Then you can actually win some contracts.
First, you need to register your business on SAM.gov. Registration is free, but the official processing time is up to 10 business days. You must have an Employer Identification Number (EIN) and a business bank account to register. SAM.gov assigns your Unique Entity ID (UEI) during the process. Our SAM.gov registration guide explains each step and how to avoid delays.
Then write a one-page capability statement. It lists your core competencies, past performance, NAICS codes, UEI, and CAGE code. Contracting officers ask for it, and prime contractors ask for it when they vet subcontractors. Our capability statement guide tells you how to do it. Spend some time on this, you’ll need it often in the future.
You’ll also want to complete your free profile in the SBA Dynamic Small Business Search. Contracting officers use that database for market research before they set a contract aside. An empty profile makes you invisible to them.
Which NAICS codes must a construction contractor register?
Register every NAICS code for work you do now and can document. Most federal construction contractors register 4 to 6 codes. A general contractor with in-house concrete and electrical crews registers 236220 plus the matching 238xxx codes. The prime code makes you visible for prime awards. The specialty codes make you visible to primes who search SAM.gov for subcontractors.
The code on each solicitation also sets the size standard for that competition. The gap is large: $45 million for 236220 against $19 million for most specialty trade codes. Read the code on every solicitation before you decide to bid.
What bonds do federal construction contracts require?
Now let’s talk bonding. If you’re not squared away, your bid will be immediately disqualified, so make sure you spend some time here (I promise we’ll get to finding opportunities soon).
Federal construction contracts above $150,000 require a performance bond and a payment bond, per FAR 28.102-1. The two bonds are typically 100 percent of the contract price. Contracts between $35,000 and $150,000 require an alternative form of payment protection. Sealed-bid construction solicitations that require these bonds also require a bid guarantee. The bid guarantee is at least 20 percent of the bid price, with a cap of $3 million (FAR 28.101-2).
| Contract value | Required security |
|---|---|
| Under $35,000 | No Miller Act bond requirement |
| $35,000 to $150,000 | Alternative payment protection, selected by the contracting officer |
| Above $150,000 | Performance bond and payment bond, each typically 100 percent of contract price |
| Bid stage (sealed bids that require bonds) | Bid guarantee of at least 20 percent of the bid price, capped at $3 million |
Source: FAR 28.102-1 and FAR 28.101-2, acquisition.gov.
Surety pricing is a market rate, and industry sources put it near 3 percent of the contract value for qualified firms. Price your bids with that cost included.
Bonding is the rule that blocks the most new contractors. A surety underwrites your finances, your credit, and your track record before it issues a bond. If you cannot get a bond on the open market, apply to the SBA Surety Bond Guarantee Program. The SBA guarantees part of the bond, which helps small contractors qualify. Start the surety relationship months before your first bid.
What is the Davis-Bacon Act and how does it change your bid?
Now some more red tape that you need to navigate – wage determinations. If you skip this, you will lose to the competitor who didn’t. We’re almost to finding and bidding on opportunities!
The Davis-Bacon Act requires prevailing wages on federal construction contracts above $2,000, per the Department of Labor. In practice, it applies to almost every federal construction job. The wage determination is an attachment to the solicitation, and the rates in it become your labor floor. You must pay each worker classification at least the listed rate plus fringe benefits. You must also submit certified payroll records each week, on form WH-347.
Read the wage determination before you price a bid. The listed rates plus fringe benefits often run far above open-market rates for the same trades. A bid priced from your normal payroll can lose its full margin to the wage determination. Wage determinations are published on SAM.gov, and the applicable one is in the solicitation package.
Where do you find federal construction solicitations?
Finally, we’re to the good part! If you’ve made it this far, congratulate yourself. You’ve cleared a ton of hurdles and you’re almost to the point of capturing some government spending (and earning yourself a well-deserved vacation)!
Federal construction solicitations above $25,000 are posted on SAM.gov Contract Opportunities. Search by your NAICS codes and save the searches for daily email alerts. Construction work also appears under product service codes that start with Y (construction) and Z (maintenance and repair). Search the two code families, because agencies do not classify work the same way.
You’ll need to respond to sources-sought notices as well. Agencies post them before a solicitation to measure small-business interest. Enough responses from small firms can turn the contract into a set-aside.
SAM.gov search is free, but it will waste hours of your precious time. A typical construction solicitation includes drawings, specifications, a wage determination, and bonding instructions. These live in attachments, and a SAM.gov search does not read attachments for you. If you choose the free route, you will have to read every single one of those attachments. But don’t worry, your son will understand that reading government solicitation documents is more important than you being at his little league game! If you don’t want to be that guy, keep reading to find out how we can give you your time back.
So how do you find work without wasting time?
We’ve talked about how to get your business ready to bid and how you can use free tools to find opportunities. That’s what everyone is doing. Your competition pays people full-time salaries just to monitor SAM.gov. That’s why they have government construction contracts and you don’t. But, what if you had a tool that fully analyzed every opportunity for you? What if you had a tool that understands what you do, then reads every single word of the solicitation documents and determines whether or not it’s a good fit for you?
That tool is Procura. I built Procura because I was sick of spending nights and weekends just reading solicitation documents. Procura does it for you. It reads every single solicitation, including all of the attachments. It then scores every opportunity against your capabilities statement and gives you an executive summary on why you should pursue it and how.
Procura only costs $399/month, less than your family’s groceries, and a fraction of an estimator’s time. Use Procura.
Frequently asked questions
Is SAM.gov registration free?
Yes. Registration on SAM.gov is free, and renewal each year is free. Companies that charge for registration are third-party services, not the government.
Do you have to post a bond before you bid?
For sealed-bid work above $150,000, yes. The bid guarantee is due with your bid. Establish a surety relationship before you bid, not after you win.
What counts as a small business in construction?
It depends on the NAICS code on the solicitation. The size standard is $45 million in average annual receipts for general building construction (236220). It is $19 million for most specialty trades (238xxx). The SBA size standards table has the current figure for every code.
Can you win federal construction work with no past performance?
Yes, but start small. Contracting officers can accept commercial past performance on small awards. Subcontract work on federal jobs also counts toward your record.
How long does it take to win a first federal construction contract?
Plan in months, not weeks. Registration takes weeks, a surety line takes longer, and agencies award on their own schedule. Firms that bid a steady set-aside pipeline win sooner than firms that chase one large prize.
Find the construction contracts worth your bid
That is how to get government construction contracts without wasted bids: register, certify, bond, search, and qualify with discipline. Procura Federal does the qualification step for you. It reads every federal solicitation and its attachments, scores the fit against your capability statement, and flags the compliance requirements. Book a demo below and see it run on live construction solicitations in your NAICS codes.
