Why Government Contracting Feels So Scary—
And Why You’re Not Alone
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Believe me, I get it: government contracting can feel like a maze of red tape, confusing acronyms, and high-stakes paperwork.
If the whole system feels like a maze, you’re not imagining things.
I first stepped into the world of government contracting in 2007 as a Proposal Coordinator for a certified small business. The company held multiple designations—MBE, DBE, SBE, and 8(a)—and was successfully pursuing government contracts at the federal, state, and local levels nationwide.
From 2007 to 2012, I gained direct experience in government contracting, which built upon my broader proposal career that started in 2003. Since 2013, I've been consulting with small businesses, guiding them through the same challenges I navigated within the system.
At the time, I was coming from the world of healthcare IT proposals for hospitals and pharmacies, so I was familiar with the RFP process. However, I didn’t know government procurement lingo, the various rules and processes used by federal, state, and local agencies, or the alphabet soup of acronyms, registrations, and forms that define the public sector contracting world. The mountain of regulations and paperwork nearly sent me packing. But walking away wasn’t an option—I had to figure it out or lose my job.
Sound familiar?
Wait, What Is Government Contracting?
Most people only think of the federal government when they hear "government contracting." But there’s a much broader marketplace out there. Contracting opportunities exist at the FEDeral, State, Local, and EDucational levels—what we insiders call FED/SLED.
Here in Los Angeles and Orange Counties—that means:
City of Los Angeles
City of Irvine
Los Angeles County
Orange County
School Districts
Colleges and Universities
State of California
Other public agencies and authorities across the region
These entities purchase everything from construction and landscaping to consulting, IT services, and a wide range of products—from office supplies and safety gear to furniture, foodstuffs, and specialized equipment.
According to the U.S. Small Business Administration, small businesses received over $183 billion in federal prime contracts during fiscal year 2024—nearly 29% of all eligible prime contracting dollars. This marks the second year in a row that agencies exceeded the 28% goal, setting an all-time high for small business awards.
That’s the big picture. But what does it look like to get started—especially if you’re a small business here in the Greater LA area? In my post, “What Is Government Contracting?”, I break down the public sector market in southern California, explain the different types of bids, and point you to a few key places to start finding opportunities. From cities and school districts to colleges, utilities, and transit agencies, the contracting landscape in LA and Orange counties is bigger than most people realize.
It’s not just you—government contracting can be confusing. But with the right guidance, it becomes manageable.
The Reality Behind the Opportunity
That $183 billion figure gets people excited. CEOs and business owners believe that government contracts will boost their revenue or even save their businesses. But, when they start looking for help, they hit a wall.
Not everyone who says they “do” government contracting knows what they’re doing.
To be clear, there are excellent consultants and companies out there. Many are generous with their time, insights, and tools. However, their help usually comes at a hefty price. And most of them prefer to work with established businesses that are already positioned to bid, rather than those still building their foundations.
That’s why what I’m doing with Help 4 LA Subs and the Biz Ready blog is different.
I’m here to help small business owners who aren’t quite there yet—those who need to get organized, gain clarity, and build systems before entering the bidding process. Because readiness isn’t optional, it’s your strategy!
You might have already:
Bought books and downloaded PDFs
Attended workshops or webinars
Paid consultants who overpromised and underdelivered
And after all that effort…you were still stuck. No contracts, no clarity, and no one to help you figure out what went wrong—or how to move forward.
I’ve met small business owners who spent serious money on “experts” who disappeared when things got complicated. Not every one of them became a client, but their stories stuck with me. One business owner had no real accounting system, struggled to track his cash flow, and was behind on taxes. He wasn’t ready, and the consultant he paid thousands to left him with nothing to show for it.
I’ve also worked with small business owners who were ready to put in the work. One woman came to see me at the SBDC after a state agency invited her to submit a bid. She had questions about the agency’s bid process and wasn’t sure how to proceed—but she showed up eager to learn and willing to figure it out.
There was less than 30 days between our first meeting and the bid deadline, so we had to move fast. We analyzed the bid documents to confirm that it was the right opportunity, then got to work. She put in the hours—cleaning up her systems, clarifying her capabilities, and assembling documentation most businesses never think to prepare in advance.
Her hard work paid off. She submitted a complete and compliant bid package, which won her a multi-year contract. When it came time to rebid, she didn’t need my help. She won the recompete (the agency’s renewal of the original contract) on her own and continued to win contracts with other local government agencies.
The Compliance Gap No One Talks About
One issue that quietly disqualifies small businesses—without ever showing up in the bid documents—is corporate compliance.
When a government entity, certifying organization, or prime contractor asks for proof that your business is in good standing, it’s not just about licenses or insurance. They want to know:
Have you filed your Statement of Information on time?
Do you have a valid Certificate of Good Standing from the state?
Can you provide your operating agreement or bylaws?
Are your ownership and signatory roles documented?
If you’re not sure about any of that—you’re not alone. Most small businesses I work with haven’t revisited these documents since they first formed their LLC or corporation.
Here’s the truth: government agencies expect you to operate like a business, not just call yourself one. And that means staying compliant behind the scenes, even when no one’s asking for it yet.
➡️ Need help? I don’t handle this work personally, but I refer clients to a corporate compliance service that offers hands-on support—no legal jargon, just real help to get your paperwork up to date.
If you think this might be an issue for your business, reach out through my Contact Page, and I’ll point you in the right direction.
What About BOI Reporting?
Some of you filed your Beneficial Ownership Information (BOI) reports with FinCEN late in 2024 or earlier this year—before the March 2025 update.
Here’s the good news: as of March 26, 2025, most U.S.-created entities (LLCs and corporations formed in the U.S.) are exempt from BOI reporting.
There’s no penalty for having filed early, and no need to undo anything. Your filing remains on record, and you are in compliance.
📂 Bonus Insight: What Was the BOI Reporting Rule—And Why Was It So Confusing?
If you felt overwhelmed by the BOI (Beneficial Ownership Information) requirement earlier this year, you weren’t alone.
The rule—issued by FinCEN (the U.S. Treasury’s Financial Crimes Enforcement Network)—was designed to identify the real people behind LLCs and corporations. The goal? Prevent money laundering, fraud, and the use of shell companies from hiding behind anonymous ownership.
But for legitimate small business owners, it just felt like another confusing federal mandate—backed by scary fines and vague instructions. Most people didn’t understand why it applied to them. They just knew the deadline and the threat.
Here’s what’s changed:
As of March 26, 2025, the BOI reporting requirement for U.S.-formed entities was overturned. If you filed early, you’re still considered compliant—but you no longer need to submit a report or worry about penalties moving forward.
🟡 Bottom line:
If you didn’t understand BOI reporting, you weren’t alone. And if you still have questions, that’s exactly why I’m here—to help you cut through compliance confusion and focus on what matters most.
Read the official FinCEN Alert: March 26, 2025 – BOI Reporting Changes
The Real Work Is More Than Just Paperwork
When clients come to me, they’re enthusiastic:
“How do I get certified?”
“Where can I find contracts to bid on?”
“Is there one website that tells me everything?”
They want shortcuts. But success in government contracting doesn’t come from a single form or a certification. It comes from having a plan—a strategy that includes research, marketing, relationship building, and, yes, bids and proposals.
🔎 Quick Note on Bids vs. Proposals:
Not every public sector contract requires a full proposal. In construction and specialty trades, many agencies use standardized bid forms—like pricing sheets, subcontractor lists, or document packages. It’s still paperwork, and it still requires accuracy, signatures, and compliance—but it may not include a write-up about your business or a detailed explanation of how you’ll do the work.
Whether you’re submitting a full proposal or just filling out bid forms, the readiness work is the same: get your house in order, understand what’s being asked, and make sure your documents are complete and compliant.
You Don’t Have to Be an Expert—Yet
Government contracting is scary. But you don’t have to go it alone.
Here on the Biz Ready blog, I’ll help you take it one step at a time. We’ll start with the essentials—building a strong foundation, staying compliant, and getting your business in order. Then we’ll move into certifications, finding the right opportunities, and demystifying proposals.
Along the way, we’ll unpack the specific challenges and advantages facing small businesses across Los Angeles and Orange Counties—so you can make progress no matter where you’re starting from. From understanding how different agencies post bids to navigating local certification programs and outreach practices, we’ll break it all down in plain English.
Got questions about a local agency’s requirements? Wondering if your business should get certified with the City of LA, Metro, or OCTA? Drop me a message—you might see your answer in an upcoming post.
Before the contract comes the compliance. Readiness is more than paperwork—it’s your proof of professionalism.
🔜 Next Week on the Blog:
5 Problems LA Subcontractors Face—And What They Really Need Instead
We’ll unpack the most common traps small businesses fall into—and how to fix them without wasting time or money.
Let’s get your house in order—because readiness isn't just a strategy, it's your antidote to the 'scary' in government contracting.
—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.
Disclaimer: This post is for informational purposes only and does not constitute legal, financial, or professional advice. Please consult a qualified advisor before making decisions specific to your business.
🟨 Want to know if public contracts are the right fit—and what it really takes to be ready?
Start with the free guide: Is Government Contracting Right for Your Business? ➡️ Download the Guide
Want a step-by-step strategy you can work through on your own time?
GovCon Ready in 90 Days is a self-paced program built for LA-based subcontractors who are serious about getting government-ready, without the guesswork.
➡️ Join the early interest list here. (You’ll be the first to know when it’s ready to go.)
What They See Online Still Counts
💡 One more thing: Government agencies aren’t just reviewing what you submit—they’re reviewing what’s already public. GSA is using an AI tool called CODY to scan contractor websites and online content for red flags and inconsistencies. While that’s a federal example, don’t assume local agencies or prime contractors aren’t checking you out online. They may not be using AI—but they are using Google and other search tools. That means your website, registrations, and certifications all need to tell the same story. In today’s environment, readiness includes your digital footprint.