How to Bid on Government Contracts: Your First Proposal

You have registered on SAM.gov, built your capability statement, and found an opportunity that matches your business. Now comes the part that stops most people: writing and submitting a proposal.

Understanding how to bid on government contracts comes down to three things: following the instructions, writing to the evaluation criteria, and submitting on time.

Here is the truth. Your first proposal will not be perfect. That is fine. Government contracting officers expect new contractors to learn on the job. What they do not accept is late submissions, missing documents, or proposals that ignore the instructions.

This guide is Step 5 of our 5-Step Start Here Path. By the end, you will know how the bidding process works, how to build a compliance matrix, and what it takes to submit a competitive proposal.

Start Small: Simplified Acquisitions vs. Full Proposals

Not all government bids are the same. Government bids fall into three tiers, and they require very different levels of effort:

Our advice: Start with micro-purchases or simplified acquisitions. Most simplified acquisitions under the $350,000 Simplified Acquisition Threshold are automatically set aside for small businesses. You are only competing against other small companies.

Micro-purchases (under $15,000) are the fastest path to your first government revenue. Government purchase card holders can buy from any registered vendor without formal competition. Make sure your SAM.gov profile is complete, your website is professional, and you accept credit card payments.

Decoding the Solicitation: Sections L, M, and C

Before you write a single word, you need to understand the three sections that control your entire proposal. Read them in this order:

Read the solicitation three times. First pass for scope (can we do this work?). Second pass for evaluation criteria (how will they judge us?). Third pass for compliance requirements (what exactly must we submit?).

Build Your Compliance Matrix First

A compliance matrix is the single most important tool for first-time proposal writers. It is a table that maps every requirement from the solicitation to your proposal response. Build it before you draft anything.

Here is how to create one:

Step 1: Shred the RFP. Go through the solicitation line by line. Extract every requirement, instruction, and evaluation criterion into a spreadsheet or table. Include the exact section reference and the verbatim text.

Step 2: Map each requirement to your proposal. For each requirement, note which proposal section will address it, who is responsible for writing that section, and whether you can comply fully, partially, or not at all.

Step 3: Check for gaps. Any requirement without a proposal response is a gap. Any proposal section that does not trace back to a requirement is filler. Cut the filler. Fill the gaps.

A completed compliance matrix does two things: it guarantees you address every requirement, and it becomes your outline for writing. No compliance matrix, no winning proposal. This is the step most first-time bidders skip, and it is the reason most first-time bids lose.

How to Write Your Government Contract Bid: Volume by Volume

Most government proposals have three to four volumes. Each one serves a specific purpose.

Volume I: Technical Approach

This is where you describe how you will do the work. Be specific. Do not write about your company’s philosophy. Write about the steps you will take to deliver what the government needs.

Use the language from the solicitation. If the Statement of Work says “provide weekly status reports,” your proposal should describe exactly how you will provide weekly status reports: what the report will contain, who writes it, when it ships, and what format it uses.

Structure your technical approach around Section C requirements, not around your company’s capabilities. The evaluator is reading with a checklist. Make it easy for them to check every box.

Volume II: Management Plan

Describe your team, your organizational structure, and how you will manage the contract. Include:

• An organizational chart showing who reports to whom
• Key personnel resumes (match the qualifications Section L requires)
• Your quality control plan: how you catch problems before they reach the government
• Risk mitigation: what could go wrong and how you will handle it
• A transition plan if you are replacing an incumbent contractor

Volume III: Past Performance

List 2 to 5 contracts or projects similar to this one. For each reference, include the client name, contract number, dollar value, period of performance, a brief description of the work, and the outcome.

If you do not have government past performance, use commercial experience. A five-year track record of delivering IT services to private-sector clients is still relevant evidence that you can deliver IT services to the government.

New for 2026: FY2026 National Defense Authorization Act (NDAA) Section 824 directs the Department of Defense (DoD) to issue guidance on accepting commercial (non-government) past performance in DoD proposals. This is a significant change for new entrants. If you have strong commercial experience but no federal contracts, this provision works in your favor. Guidance is expected by December 2026.

Volume IV: Price/Cost Proposal

Provide your pricing in the exact format the solicitation requests. Understanding the difference between cost-plus and fixed-price contracts helps you choose the right pricing strategy. Common formats:

• Firm fixed-price: A total price for all deliverables. Include your basis of estimate showing how you arrived at the number.
• Time-and-materials: Hourly rates by labor category plus estimated hours. Break out materials and travel separately.
• Cost-reimbursable: Fully loaded labor rates, other direct costs, overhead, G&A, and fee structure.

Pricing must be “fair and reasonable” per FAR 15.404. Do not underbid to win. Price your work so you can deliver it and make a reasonable profit. An unrealistically low price raises red flags with evaluators.

How Evaluators Score Your Proposal

Government source selection works under two main methods. Section M of the solicitation tells you which one applies. This matters because it changes how you write.

Lowest Price Technically Acceptable (LPTA)

The government sets minimum technical requirements. Every proposal that meets those requirements is “technically acceptable.” The contract goes to the lowest-priced acceptable proposal. Period.

How to write for LPTA: Meet every requirement. Do not exceed them. Fancy graphics, innovative approaches, and extra features do not earn you points. They cost you money. Write a clean, compliant proposal and compete on price.

Best Value Tradeoff

The government weighs technical quality, past performance, and price together. A higher-priced proposal can win if it offers significantly better technical quality or past performance.

How to write for Best Value: Invest in your technical approach. Highlight what makes your solution better, not just compliant. Show innovation, risk reduction, and measurable outcomes. This is where your expertise and team qualifications can overcome a price disadvantage.

The Adjectival Rating Scale

Most evaluators rate proposals using a standard scale. Understanding it helps you write to the right level:

For LPTA, aim for “Acceptable” across the board and win on price. For Best Value, aim for “Outstanding” or “Good” on the highest-weighted factors.

The Past Performance Problem (and How to Solve It)

Every new contractor faces the same catch: you need past performance to win, but you need to win to get past performance. Here are five ways to break the cycle:

1. Use commercial experience. Private-sector contracts count, especially when the work is similar. A cybersecurity firm with five years of commercial clients has relevant past performance for a DoD cybersecurity contract.
2. Cite your team’s experience. If your key personnel performed similar work at previous employers, list that experience with their permission.
3. Start as a subcontractor. Subcontracting under an experienced prime builds federal past performance without the overhead of winning a prime contract.
4. Win micro-purchases first. Contracts under $15,000 build your track record with minimal proposal effort.
5. Use NDAA Section 824 (2026). Once DoD issues guidance (expected by December 2026), new entrants can formally cite commercial past performance in defense proposals.

The Debrief: Learning from Every Bid

If you do not win, you are entitled to a debrief. A debrief is a meeting or written summary where the contracting officer tells you why your proposal was not selected.

Debriefs tell you how your proposal scored, what weaknesses the evaluators found, and what the winning proposal did better. To get one, request it in writing within 3 calendar days of being notified you were not selected. Do this every time.

The average win rate for experienced government contractors is 25% to 40%. For first-time bidders, it is lower. About 40% of solicitations receive fewer than three qualified bids. That means the competition is thinner than most people assume. What separates successful contractors from the rest is that they learn from every loss and apply those lessons to the next proposal.

Free Resources for Proposal Writers

The most valuable free resource: Your local APEX Accelerator will review your draft proposal before you submit it. They catch compliance errors, formatting issues, and missing sections. Most first-time bidders do not know this service exists. Use it.

Your First Bid: A Practical Action Plan

1. Start with a micro-purchase or simplified acquisition. Find something under $350,000 that matches your core capabilities.
2. Read the entire solicitation three times. Section M first, then L, then C.
3. Build your compliance matrix. Map every requirement to a proposal section before you write.
4. Ask questions. Submit written questions before the deadline. Everyone sees the answers, but asking shows you are engaged and thorough.
5. Write to the evaluation criteria. Structure your proposal around Section M. If past performance is weighted at 40%, make that section strong.
6. Have APEX review your draft. Free compliance check before submission.
7. Submit at least 24 hours early. Servers crash. Email fails. Late proposals are not evaluated.
8. Request a debrief if you lose. Every loss is a free consulting session on how to improve.

Frequently Asked Questions

How long does it take to write a government proposal?

For a simplified acquisition, plan 2 to 5 business days. For a full FAR Part 15 proposal, 2 to 4 weeks is typical. The timeline depends on the solicitation’s complexity and how prepared you are. Having your compliance matrix template, past performance references, and pricing models ready in advance saves significant time.

What is a compliance matrix and do I need one?

A compliance matrix is a table that maps every solicitation requirement to a specific section of your proposal. It ensures you address every requirement and helps evaluators find your answers quickly. You do not technically “need” one, but proposals written without a compliance matrix almost always have gaps that evaluators catch. Build one for every bid.

What is the difference between an RFP and an RFQ?

A Request for Proposal (RFP) is used for larger, more complex acquisitions above the Simplified Acquisition Threshold ($350,000). It requires a formal multi-volume proposal evaluated on multiple factors. A Request for Quotation (RFQ) is used for simpler purchases, typically under $350,000. It requires a shorter response, often just a price quote with a brief capability description. Start with RFQs.

Can I bid with no past performance?

Yes. The government cannot reject a proposal solely for lack of past performance. Under FAR 15.305(a)(2), a new contractor with no past performance record receives a “neutral” rating, not a negative one. Combine this with strong commercial references, team qualifications, and subcontracting experience. FY2026 NDAA Section 824 will further expand DoD acceptance of commercial past performance.

What is LPTA and how does it affect my proposal?

Lowest Price Technically Acceptable (LPTA) means the government evaluates proposals on a pass/fail basis for technical requirements, then awards to the lowest-priced proposal that passes. Under LPTA, exceeding requirements earns you nothing. Write a clean, compliant proposal and compete on price. Check Section M to see if your solicitation uses LPTA or Best Value.

Can I bid on contracts outside my NAICS code?

Technically yes, but your NAICS code determines your small business size standard. If the solicitation uses a NAICS code where you exceed the size standard, you cannot bid as a small business. Stick to your registered NAICS codes when starting out.

What happens if I win?

You receive a contract award notice. The contracting officer sends you the contract documents to sign. You perform the work per the contract terms and submit invoices for payment. The government pays on Net 30 terms, and the Prompt Payment Act requires interest on late payments.

Should I hire a proposal writer?

For your first few simplified acquisitions, do it yourself. You need to understand the process before you can manage a writer effectively. As you pursue larger, more competitive contracts, professional proposal support (writers, reviewers, graphic designers) can improve your win rate. Many successful contractors write their own proposals for years before investing in professional help.

Congratulations: You Have Completed the Start Here Path

You now know what government contracting is, how to register, how to build your capability statement, how to find opportunities, and how to submit your first bid. That is the complete foundation.

Government contracting is a long game. Your first contract may take 6 to 12 months. Your first big contract may take 2 to 3 years. But every step you take, every proposal you submit, and every debrief you request moves you closer to building a reliable, recurring revenue stream from the largest buyer in the world.

What to do next:

• Learn about FAR compliance so you are ready to perform on the contracts you win
• Explore small business programs like 8(a), HUBZone, and WOSB for additional set-aside opportunities
• Find subcontracting opportunities to build past performance under an experienced prime contractor
• Check if you need CMMC certification before bidding on Department of Defense contracts

This article is for informational purposes only. It is not legal, financial, or regulatory advice. Consult with qualified professionals for guidance specific to your business.