Myths About Getting Started
Myth 1: "Government contracting is only for big companies." Fact: Small businesses won over $178 billion in federal contracts in FY2023. Congress mandates that at least 23% of all contracting dollars go to small businesses. Set-aside programs create protected competitive pools specifically for small firms.
Myth 2: "You need connections to win contracts." Fact: Federal procurement is governed by strict rules designed to ensure fair and open competition. While relationships help (as in any business), contracts are awarded based on evaluated proposals, not personal connections. Small businesses without any existing government relationships win contracts every day.
Myth 3: "The registration process is too complicated." Fact: SAM.gov registration is free and designed to be completed by any business owner. It takes 2-4 weeks for processing, but the actual data entry can be done in an afternoon. Third-party services that charge thousands for "registration assistance" are preying on this myth.
Myth 4: "You need a security clearance to do government work." Fact: The vast majority of federal contracts do not require security clearances. Clearances are specific to classified programs, primarily in defense and intelligence. Most civilian agency contracts and many DoD contracts have no clearance requirements at all.
Myths About the Process
Myth 5: "The government always takes the lowest bid." Fact: Most federal contracts use "best value" evaluation, where technical capability, past performance, and other factors are weighed alongside price. The government frequently pays more for a technically superior proposal. Price is only one factor in the evaluation.
Myth 6: "Government contracts take forever to get paid." Fact: The Prompt Payment Act requires the government to pay invoices within 30 days and charges interest on late payments. In practice, many agencies pay within 15-20 days. Government payment reliability is actually better than many commercial customers.
Myth 7: "You need expensive special software or equipment." Fact: Many government contracts are for professional services, consulting, IT, and other knowledge-based work that requires no special equipment beyond a computer and internet connection. The tools you already use for commercial work likely apply.
Myths About Growth and Scale
Myth 8: "One contract can make or break your company." Fact: Successful government contractors build diverse portfolios across multiple agencies and contract vehicles. Dependence on a single contract is a risk, not a strategy. Diversification is key to sustainability.
Myth 9: "Government work is boring and bureaucratic." Fact: Federal agencies are tackling some of the most complex and impactful challenges in the world: national defense, healthcare, space exploration, cybersecurity, climate science, and infrastructure. The work is meaningful and the problems are genuinely interesting.
Myth 10: "It’s not worth the compliance overhead." Fact: Compliance requirements exist for good reasons and become routine once your systems are established. The stable, reliable revenue from government contracts — backed by the full faith and credit of the United States — far outweighs the administrative overhead for most businesses.
The Facts Favor Action
Every myth on this list has kept real businesses from pursuing real opportunities in the federal market. The facts tell a different story: government contracting is accessible, fair, well-paying, and explicitly designed to include small businesses.
If you’ve been on the fence about government contracting because of one or more of these misconceptions, the evidence is clear. The market is enormous, the government needs what you offer, and the barriers to entry are lower than you think. The only thing holding you back is getting started.