If you’ve ever wondered how companies end up building fighter jets, maintaining federal buildings, or even mowing the lawn outside a VA hospital — chances are, it all started with a government contract.

But what exactly is a government contract?

Let’s break it down.

The Definition

A federal government contract is a legally binding agreement between a private party (individual, business, or organization) and a U.S. federal agency. Under this agreement, the private party agrees to provide goods or services, and the federal government agrees to pay for them.

These contracts are governed by a unified set of rules called the Federal Acquisition Regulation (FAR). This regulation sets standards for how agencies must compete, award, and manage contracts. It ensures fairness, transparency, and consistency across the entire federal system.

What Makes Federal Contracts Unique?

1. They’re centralized under one system
   Unlike state and local contracts, which each follow their own rules, all federal agencies follow the FAR. That means once you understand the federal system, you can apply that knowledge to any federal agency — whether it’s the Department of Defense, Department of Agriculture, or the VA.
2. They’re discoverable
   Most federal contract opportunities are published on public sites like SAM.gov. In fact, there are dedicated databases that let you see what’s being bought, who’s buying it, and who’s already won similar contracts.
3. They’re diverse
   The federal government buys everything from aircraft parts to catering services to translation support. Whatever your business does, there’s a good chance a federal agency is already buying it.

How Can You Use Government Contracts?

Whether you’re an entrepreneur, a service provider, or someone exploring new income paths, federal contracts can be a valuable part of your business strategy. Here’s how:

1. Sell What You Already Do
If you already provide IT services, janitorial support, marketing, training, logistics, or construction — there are agencies actively seeking those exact services. You don’t have to reinvent your business. You just have to align it with federal demand.

2. Subcontract with Prime Contractors
Not ready to go after federal contracts on your own? You can partner as a subcontractor with companies that already have government contracts. This is a great way to build experience, get paid, and learn the process.

3. Start a Niche Service Business
Many small businesses have launched specifically to serve federal needs — like staffing cleared professionals, helping with cybersecurity compliance, or delivering specialized training.

4. Build a Consulting Practice
If you’ve worked in government, defense, IT, logistics, or acquisitions, your experience is valuable. Businesses entering the federal space need guidance — and consultants can play a major role in strategy and execution.

5. License or Resell Products to the Government
Product companies can sell directly to federal buyers or through platforms like GSA Advantage. There are also opportunities for resellers who work with Original Equipment Manufacturers (OEMs).

And It Doesn’t Stop There

Selling to the government directly isn’t the only way to generate income.

You can also:

• Start a consulting business that helps other companies break into federal sales.
• Land a high-paying job as a sales executive for a company already selling to the government.

Both paths can be extremely rewarding — and both are areas we support at GovClose. Whether you want to sell directly, consult for others, or find a career in this space, our training and certification can help you get there.

Want more guidance on government contracts?

• Follow me on LinkedIn for weekly breakdowns, strategies, and real-world insights.
• Subscribe to the GovClose YouTube channel for tutorials, interviews, and detailed contract walkthroughs.

If you’re curious about the world of federal contracting, this is the best place to start.

Check us out at https://govclose.com/