Questions, in plain English

A solicitation is the government's request for bids. It describes the work, the price form to fill in, the rules for the contract and the deadline. Federal solicitations are posted on SAM.gov, and each has a solicitation number you use on everything you send.

A Request for Quote (RFQ) asks for a price, usually on smaller or simpler purchases. A Request for Proposal (RFP) asks for a price plus a written plan, and the agency may weigh things like experience and approach along with price. An Invitation for Bid (IFB) is sealed bidding: the lowest price from a bidder who meets the requirements wins, and bids are often opened in public.

A sources sought notice is the agency asking which businesses could do a job before it decides how to buy it. Answering is free and doesn't commit you, and enough answers from small businesses can lead the agency to set the job aside for them. A presolicitation notice says a solicitation is coming soon, so you can get ready.

A set-aside is a contract only certain businesses may bid on: small businesses, or small businesses in the 8(a), HUBZone, women-owned or veteran-owned programs. Purchases above the micro-purchase threshold and up to the simplified acquisition threshold are generally set aside for small businesses when at least two capable small businesses are expected to bid at a fair price.

Since October 1, 2025, the micro-purchase threshold is $15,000. Purchases at or under that amount can be made without competition, often with a government purchase card. The simplified acquisition threshold, the ceiling for the faster, simpler buying procedures, is $350,000.

The North American Industry Classification System gives every kind of business a six-digit code. Each solicitation uses one code, and that code's size standard decides whether your business counts as small for that bid. You list all the codes that fit your business in your SAM.gov registration.

The Unique Entity ID (UEI) is the 12-character number SAM.gov gives your business; it identifies you on every federal award. The CAGE code is a five-character code from the Defense Logistics Agency that is assigned during SAM.gov registration. Both are free and both go on your bids.

No. Any business with an active SAM.gov registration can bid on contracts open to everyone, and small businesses can bid on small business set-asides by stating their size in SAM.gov. The SBA certifications (8(a), HUBZone, women-owned and VetCert) are needed only for the set-asides in those programs.

The contracting officer is the government employee with the authority to sign the contract and change it. Questions about a solicitation go to the contracting officer or contract specialist named in the notice, in writing. Only the contracting officer can approve changes to the work or the price.

Past performance is the record of how well you did on similar jobs. Many solicitations ask for a few recent examples with a contact for each. Work for cities, counties, states and private customers counts, so new federal contractors can still show it.

Federal agencies pay by direct deposit to the account in your SAM.gov registration. Civilian agencies usually take invoices through the Treasury's Invoice Processing Platform, and the Department of Defense through PIEE (Wide Area Workflow). Under the Prompt Payment Act, agencies generally pay within 30 days of receiving a proper invoice and pay interest when they are late.

Many service contracts have a base year plus option years. Each year the agency can choose to continue the contract for another year at the prices you bid. You price every option year in your bid, so plan for wages and costs going up.

On many contracts you can ask for a debriefing, an explanation of how your bid was rated. Award amounts and winners are public on SAM.gov and USAspending.gov, which shows what the winning price was. Both help you price the next bid.