What Is Government Contracting?
A Plain-English Guide to Winning Local, State, and Federal Work—Without the Red Tape.
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What is Government Contracting?
Working with the government can be an excellent way for small businesses to grow revenue—but it can also be confusing. I’ve talked to many business owners who want a slice of government spending but feel lost.
Most assume federal contracts are the only path. But there are thousands of opportunities at the state and local levels, often with fewer requirements and faster timelines.
These local and regional opportunities can be a great place to start and help you learn the ropes without being overwhelmed by federal red tape.
Some business owners are curious about certifications like MBE, WBE, DBE, and SB/DVBE (specific to California). Others have submitted bids that went nowhere and don’t understand why.
If any of that sounds familiar, this overview is for you.
What Is B2G?
B2G (Business-to-Government) refers to sales made to government agencies—including FEDeral, State, Local, and EDucational institutions (FED/SLED). These agencies routinely buy goods and services from businesses like yours and follow structured processes to do it.
Common Solicitation Types
Here are the main ways agencies request offers:
IFB – Invitation for Bid
Used when price is the deciding factor, the lowest responsible bidder typically wins.RFP – Request for Proposal
Evaluates both cost and your approach; proposals are scored using weighted criteria.RFQ – Request for Quote (Price)
Used for informal purchases or choosing among pre-approved vendors.RFQ – Request for Qualifications (Credentials)
Often used in construction, architecture, and consulting.RFI – Request for Information
Used to assess interest or explore solutions; doesn’t lead directly to a contract.RFO – Request for Offer
A California-specific term, especially in IT procurements.Task Orders
Issued under on-call or master contracts—common in maintenance, repair, and ongoing services.CMAS – California Multiple Award Schedules
A shortcut for state agencies to buy goods and services from pre-approved vendors.
Bid Types Explained
Here’s a quick visual of the four most common bid types:
From IFBs to RFIs, here’s your plain-English guide to the four key ways government agencies request bids—and what each means for your small business.
Note: Other methods like RFQ for Qualifications, RFOs, Task Orders, and CMAS exist and are covered more deeply in future posts.
Where to Find Bids in Southern California
If you’re based in southern California, keep an eye on:
Cal eProcure – for State of California departments
RAMP (Regional Alliance Marketplace for Procurement) – City & County of LA
Is Government Contracting Regulated?
Absolutely. Each level of government follows different rules:
State of California – Governed by the State Contracting Manual
Local Agencies – Governed by their own purchasing policies
Federal – Governed by the Federal Acquisition Regulation (FAR)
These rules help ensure taxpayer dollars are spent fairly and transparently.
How Do Government Agencies Buy?
There’s no one-size-fits-all approach. Government buyers use several methods, including:
Negotiated contracts
Purchase orders and agreements
Blanket purchase agreements
Credit card micro-purchases (often under $10,000)
💡Pro Tip: Local agencies often rely on micro-purchases and informal quotes—making them ideal entry points for small businesses.
What Does It Take to Win a Government Contract?
Success in government contracting takes more than good intentions. You’ll need:
Research – Know the agency’s goals, pain points, recent purchases, and buying methods.
Patience – Some local contracts are won on the first try—but often, it takes time to build credibility, learn the process, and develop relationships. Federal contracts usually require a longer runway (12–24 months).
Targeting – Don’t “spray and pray.” Tailor your outreach to specific agencies and projects.
Strong Bids – Follow every instruction. Meet every requirement. Communicate your value clearly.
How Long Until I Win My First Contract?
There’s no universal timeline—but most businesses secure their first state or local contract within 12 to 18 months if they’re active and consistent.
Starting with micro-purchases, subcontracting, or on-call bids can lead to earlier wins and help you build your performance history.
Real Talk:
The Long Game Pays Off
Are there any guarantees in government contracting?
Nope. It’s competitive—and sometimes ruthless. I’ve seen contracts decided by a 0.8% price difference or a single overlooked detail.
But I’ve also seen this:
✨ A small local service provider won a state contract the first time they bid because their response was organized, fairly priced, and met the agency’s exact requirements.
🕰️ Another client spent almost two years developing a federal strategy and building relationships—and landed a five-year contract worth six figures annually. It took time, but it paid off.
No guarantees. But there’s a pattern:
Businesses that stay ready
Show up consistently
And play the long game—win.
That’s why I teach B2G as a long-term strategy—not a quick cash grab.
If you’re serious about growth, this is a game worth playing.
How Much Money Can I Make?
There’s no single number, but I’ve seen small vendors build six-figure revenue streams from just a few reliable local contracts.
For example, even a single maintenance contract for a local facility might pay $40,000–$80,000 annually—and often renews for multiple years. The key is readiness, positioning, and persistence.
Is It Worth It?
Absolutely—if you’re committed.
California and Los Angeles area public agencies spend billions of dollars each year on goods and services, and many contracts are set aside specifically for small and diverse businesses.
But only you can decide: Do you have the systems, time, and commitment to pursue government work seriously?
Your Next Step
👉 Curious if government contracting is right for your business? Check out our Resources Page for the checklist, Is Government Contracting Right for You? and other helpful tools.
Let’s get your house in order—because readiness is your best strategy!
Stephanie
About Stephanie:
Stephanie Clark-Ochoa is a Government Procurement Strategist and founder of Clark-Ochoa Business Services. Through Help 4 LA Subs, she provides practical tools and insights to help micro and small businesses in the Greater Los Angeles area become government-ready and thrive in public contracting.
Real Support. Practical Advice.
Get Your House in Order. Get Government-Ready Results.
➤ Ready to see if government contracting is right for your business? The Subcontractor Readiness Checklist helps small businesses in the Greater LA area figure out whether they’re prepared—and what steps they should take next. Sign up below to get your FREE copy and start building your government-ready foundation.