How to Get Government IT Contracts: A Guide for Small Tech Firms

The Federal IT Market

Federal IT spending exceeds $100 billion annually and continues to grow. The government is modernizing legacy systems, migrating to cloud infrastructure, implementing zero-trust security architectures, and investing heavily in AI and machine learning capabilities. For small IT firms, this represents one of the largest and most stable markets in the world.

The biggest IT-buying agencies, by approximate annual IT spend:

• Department of Defense (DoD): ~$40 billion. The single largest IT buyer in the federal government. Covers everything from enterprise software to cybersecurity to battlefield communications systems.
• Department of Veterans Affairs (VA): ~$6 billion. Major investments in electronic health records, telehealth platforms, and benefits processing systems.
• Department of Homeland Security (DHS): ~$8 billion. Heavy spending on cybersecurity, border technology, identity management, and data analytics.
• Department of Health and Human Services (HHS): ~$6 billion. Focused on health data systems, Medicare/Medicaid platforms, and public health IT infrastructure.

The fastest-growing IT spending areas are cybersecurity (driven by federal zero-trust mandates), cloud migration (agencies moving off on-premise data centers), AI and machine learning (data analytics across every agency), and software modernization (replacing legacy COBOL and mainframe systems). If your firm works in any of these areas, federal contracting should be on your radar.

NAICS Codes for IT Contractors

Every federal contract is tagged with a NAICS code that classifies the type of work. For IT firms, there are six codes you need to know. Each comes with an SBA small business size standard that determines whether you qualify as "small" for set-aside contracts under that code.

• 541511 — Custom Computer Programming Services. Writing, modifying, testing, and supporting software to meet the needs of a particular client. Size standard: $34 million in average annual revenue. This is where you'll find custom software development contracts.
• 541512 — Computer Systems Design Services. Planning and designing computer systems that integrate hardware, software, and communication technologies. Size standard: $34 million. The broadest and most commonly used NAICS code for IT consulting work.
• 541513 — Computer Facilities Management Services. On-site management and operation of a client's computer systems or data processing facilities. Size standard: $34 million. Covers managed services and facilities operations contracts.
• 541519 — Other Computer Related Services. Computer-related services not classified elsewhere, including disaster recovery, software installation, and computer technology consulting. Size standard: $34 million. This is the catch-all code for IT work that doesn't fit neatly into the other categories.
• 518210 — Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services. Providing infrastructure for hosting, data processing, and related services. Size standard: $40 million. This is where cloud services, hosting, and data center contracts live.
• 511210 — Software Publishers. Carrying out operations necessary for producing and distributing computer software, including design, documentation, installation, and support. Size standard: 1,250 employees (employee-based, not revenue-based). If you sell a software product rather than custom development services, this is your code.

Most IT firms should register under at least three of these codes. A cybersecurity consulting firm, for example, might use 541512 for their core systems design work, 541519 for specialized security assessments, and 518210 for cloud security monitoring services. The more relevant codes you track, the more opportunities you'll catch — because agencies don't always classify IT work the way you'd expect.

Contract Vehicles for IT

In federal IT, many of the best contracts aren't posted as standalone solicitations on SAM.gov. Instead, they flow through contract vehicles — pre-competed frameworks that agencies use to buy IT services faster. Understanding these vehicles is critical for IT firms because they're where a large share of IT dollars go.

Government-Wide Acquisition Contracts (GWACs)

GWACs are large, multi-agency IT contract vehicles administered by specific agencies but available to all federal buyers. The major ones:

• Alliant 2 — Managed by GSA. The largest IT GWAC, covering the full range of IT services. Full and open competition (not restricted to small businesses). Getting on Alliant 2 as a prime is extremely competitive, but subcontracting opportunities under Alliant 2 primes are abundant.
• 8(a) STARS III — Managed by GSA. A GWAC reserved exclusively for 8(a)-certified small businesses. If your firm has 8(a) certification, this is one of the most valuable contract vehicles you can hold. It gives agencies a fast path to buy IT services from small disadvantaged businesses.
• VETS 2 — Managed by GSA. A GWAC set aside for Service-Disabled Veteran-Owned Small Businesses (SDVOSBs). Covers a broad range of IT services and gives veteran-owned IT firms a dedicated channel to compete.

GSA Multiple Award Schedule (MAS) — IT Category

The GSA Schedule (also called the Federal Supply Schedule) is a long-term contract between GSA and commercial firms. Large Category F covers IT products and services. Having a GSA Schedule means agencies can buy from you without running a full competitive procurement — they just issue a task order against your schedule. For IT firms, this is often the first contract vehicle worth pursuing because the barrier to entry is lower than GWACs.

Agency-Specific BPAs

Many agencies establish Blanket Purchase Agreements (BPAs) for recurring IT needs. A BPA is an agreement with a vendor (or set of vendors) to provide specific goods or services over a period of time at pre-negotiated terms. Agencies like the VA, IRS, and Census Bureau frequently set up IT BPAs for help desk support, application development, and cloud services. These are often set aside for small businesses and appear on SAM.gov as individual solicitations.

Set-Asides in IT

Federal set-aside programs reserve contracts exclusively for qualified small businesses. In IT, set-asides are especially important because the overall market is dominated by large integrators like Booz Allen, SAIC, and Leidos. Set-asides carve out space where small firms compete only against other small firms.

The programs with the most IT contract activity:

• Small Business Set-Aside: The broadest category. Any contract under $250,000 must be set aside for small businesses if the contracting officer expects at least two qualified small firms can compete. Many IT contracts above that threshold are also set aside.
• 8(a) Business Development Program: For small disadvantaged businesses. The 8(a) STARS III GWAC is the prime example — it's specifically designed to channel IT spending to 8(a) firms. If you qualify for 8(a) and get on STARS III, you have access to a pipeline of IT task orders that only other 8(a) holders can compete for.
• Service-Disabled Veteran-Owned Small Business (SDVOSB): The VA is required by law to give preference to SDVOSBs. Given the VA's massive IT budget (~$6 billion), this creates significant opportunity for veteran-owned IT firms. SDVOSB set-asides at the VA cover everything from EHR system support to telehealth development to cybersecurity operations.
• Women-Owned Small Business (WOSB): Set-asides available in industries where WOSBs are underrepresented. Several IT NAICS codes qualify.
• HUBZone: For businesses operating in Historically Underutilized Business Zones. HUBZone IT firms get both set-aside access and a price evaluation preference on full-and-open competitions.

If you hold any of these certifications, make sure your contract-matching tool filters for your specific set-aside type. A generic search will bury these opportunities among thousands of unrestricted solicitations.

How to Get Started Without Past Performance

The biggest challenge for new IT contractors is the past performance catch-22: you can't win contracts without past performance, and you can't get past performance without winning contracts. Here are five proven strategies to break in.

1. Subcontract with a Prime Contractor

Large IT primes (Booz Allen, Deloitte, ManTech, CACI, etc.) regularly need subcontractors to fulfill small business participation requirements. Find primes working in your technical area and offer your team as a subcontractor. You build past performance on a real federal contract without having to win the prime contract yourself.

2. SBA Mentor-Protege Program

The SBA's mentor-protege program pairs small businesses with experienced government contractors. Your mentor can provide technical assistance, help you navigate proposals, and form joint ventures that let you bid on contracts using their past performance. For IT firms, this is one of the fastest paths to competitive credibility.

3. Teaming Agreements

Two or more small businesses can form a teaming agreement to bid on a contract together. One firm serves as the prime and the others as subcontractors. This lets you combine capabilities and past performance across multiple firms. Teaming is especially common in IT where contracts often require a mix of specialties — networking, cybersecurity, application development, and cloud infrastructure.

4. Commercial Item Contracts (FAR Part 12)

If you sell a commercial IT product or service — something you also sell to private-sector clients — you may qualify for simplified acquisition procedures under FAR Part 12. These contracts have lighter evaluation criteria and past performance requirements are often relaxed because the product has a commercial track record.

5. Get on the GSA Schedule

A GSA Schedule contract is itself a form of past performance. Once you're on the schedule, agencies can issue task orders against it with streamlined competition. The application process evaluates your commercial experience and pricing, not your federal past performance — making it accessible to firms with private-sector track records but no government work yet.

Common Mistakes for IT Contractors

After seeing how small IT firms approach government contracting, these are the mistakes that cost the most time and money:

Only Watching One NAICS Code

An agency might post a "cybersecurity assessment" contract under 541512, 541519, or even 561621 (Security Systems Services) depending on how the contracting officer categorizes it. If you're only tracking 541512, you'll miss the others. As covered in our NAICS codes guide, most successful IT contractors track 3-5 codes.

Ignoring Subcontracting Opportunities

Many small IT firms focus exclusively on winning prime contracts and overlook subcontracting. But subcontracting with an established prime is often the better move — especially early on. You get revenue, you build past performance, and you learn how federal projects actually run. Large IT primes are required to meet small business subcontracting goals on most major contracts, so they're actively looking for capable small firms.

Chasing Contracts Too Large for Your Capacity

A 5-person IT shop bidding on a $50 million systems integration contract is wasting proposal resources. Agencies evaluate your ability to perform, and staffing capacity is a real factor. Start with contracts that match your current headcount and revenue. Contracts in the $150,000 to $2 million range are the sweet spot for most small IT firms. As you build past performance and grow your team, you can move up.

Not Tracking Recompete Dates

Federal IT contracts typically run 1-5 years with option periods. When a contract is coming up for recompete, the agency has to resolicit it. This is your best opportunity to displace an incumbent. But if you're not tracking recompete dates, you won't know about the opportunity until the solicitation drops — giving you weeks to prepare instead of months. Smart IT contractors identify target contracts early and start relationship-building with the agency well before the recompete.

How GovConToday Matches IT Contracts

GovConToday is built for exactly this kind of multi-NAICS, niche- focused matching. When you set up your profile with IT-relevant NAICS codes — say 541511, 541512, and 541519 — our daily scan pulls every new opportunity from SAM.gov tagged with any of those codes.

Here's what that looks like in practice. A single day's digest for an IT firm tracking those three codes might include:

• A 541511 contract from the Air Force for custom application development
• A 541512 small business set-aside from the VA for IT systems integration support
• A 541519 solicitation from HHS for data migration services

Without tracking all three codes, you'd only see one of those opportunities. The matching also filters by your set-aside certifications and geographic preferences, so you're not sifting through contracts you can't bid on.

On the free plan, you can track up to 3 NAICS codes — enough to cover the core IT codes. The Pro plan ($29/month) gives you unlimited NAICS codes, set-aside filtering, and enhanced match scoring, which is useful when you want to add adjacent codes like 518210 and 511210 to cast a wider net.

Key Takeaways

• The federal government spends over $100 billion a year on IT. The biggest buyers are DoD, VA, DHS, and HHS, with the fastest growth in cybersecurity, cloud, and AI.
• IT contractors should track multiple NAICS codes — at minimum 541511, 541512, and 541519. Add 518210 for cloud work and 511210 if you sell software products.
• Contract vehicles like GWACs (Alliant 2, 8(a) STARS III, VETS 2) and the GSA MAS IT Category are where a large share of IT dollars flow. Get on a vehicle or subcontract under one.
• Set-asides matter in IT. The 8(a) STARS III GWAC and VA SDVOSB preferences create real, less-competitive pipelines for certified firms.
• Break the past performance barrier through subcontracting, the SBA mentor-protege program, teaming agreements, or FAR Part 12 commercial item contracts.
• Avoid common mistakes: track multiple NAICS codes, pursue subcontracting alongside prime contracts, right-size your bids, and monitor recompete dates early.
• Use NAICS-based matching (like GovConToday) to catch IT contracts across categories instead of relying on keyword searches that miss opportunities or return noise.