OpenBid Learn · Beginner course
Rules changing · as of October 2026Government Contracting 101
Ten short lessons on how the federal government buys, in plain words. You learn the rules, the words, the kinds of bid notice, and how the government picks a winner.
Who it is for
This course is for a small business or nonprofit that has never sold to the federal government and wants to understand how it works before bidding.
After it, you will be able to
- Explain how a federal purchase moves from a need to a signed contract, and who is involved.
- Say what the FAR is, and know why older guides may be out of date.
- Tell whether a bid is set aside for small business, and check whether your business counts as small for it.
- Tell an RFQ, an IFB and an RFP apart, and know what each one asks of you.
- Open a solicitation and find the work, the deadline, the instructions and the scoring.
- Understand how offers are judged, and what to ask for when you do not win.
Lessons
10 short lessonsRead them in order, and tick each one off. The first is free.
Words to know
50 termsThe words you meet on bids, in plain English, with a box to find one fast.
Help
Sabrina insideOur AI assistant answers your questions on every lesson.
To keep
Course notesEvery lesson and every word on one page, to print or save as a PDF.
Watch out
This is teaching, not legal advice.
- The rules are changing. The government is rewriting its buying rules. This course says what was in force when we checked, and what to check yourself.
- Every notice has its own terms. Read the official notice. The contracting officer decides.
- Nobody can promise a win. OpenBid cannot guarantee results.
Rules as of October 2026. Rules change. The government's own instructions are what count.
No refunds once a course is opened.
A course counts as opened as soon as you open any lesson in it after paying. If you paid and have not opened it yet, contact us and we will refund it. See the terms.
Lesson 1 · Free
Government contracting 101
About 6 minutes
- Government contracting means the government pays a business or organization to supply goods or do work. A contract is a binding deal: you deliver, and the government pays.
- The federal government is a very large buyer. The Government Accountability Office says it spent about $793 billion on contracts in fiscal year 2025.
- The law sets a goal that 23 percent of prime contract dollars go to small businesses. A prime contract is one held directly with the government.
- Reports on fiscal year 2025 put the small business share near 28 percent of the dollars that count toward that goal. That is not 28 percent of all contract spending.
- Before you can bid directly, you need an active registration at SAM.gov, the System for Award Management. SBA says you must renew it every 365 days to keep it active.
- Registering gives you a UEI, a Unique Entity ID. It is a 12-character code that identifies your business to the government.
- Searching for federal work and sending in an offer is free. SBA also points to APEX Accelerators, which give free local counseling to businesses seeking government contracts.
- Federal bids are posted as notices. OpenBid shows the agency, the deadline, the set-aside, the NAICS code and a plain-English summary on each bid page.
- This takes time. You will read long documents, follow exact instructions, and may bid more than once before you win anything.
Watch out
- Nobody can promise you a contract. The contracting officer, the government official with the power to sign, decides each award.
- This course teaches how the system works. It is not legal advice. Always read the notice itself, because the notice controls.
What is in the rest of the course
9 more lessons
- Lesson 2: How federal contracting works
- Lesson 3: Understanding the FAR
- Lesson 4: Government contracting vocabulary
- Lesson 5: Federal, state and local contracting
- Lesson 6: How set-asides work
- Lesson 7: Prime contractor and subcontractor
- Lesson 8: RFPs, RFQs and IFBs
- Lesson 9: How to read a solicitation
- Lesson 10: How the government evaluates bids
- Words to know. 50 government terms in plain English.
- Sabrina, our AI assistant, to answer your questions as you go.
- Course notes to print or save as a PDF.
The government's own pages
- SAM.gov (opens in a new tab)The official federal site where you register your business and where contract notices are posted.
- SBA contracting guide: basic requirements (opens in a new tab)Plain-language steps from the Small Business Administration on what you need before you can bid.
- SBA size standards tool (opens in a new tab)Look up the size limit for a NAICS code to see whether your business counts as small.
- SBA guide: prime and subcontracting (opens in a new tab)What prime contractors and subcontractors are, and where SBA points you to look for subcontract work.
- The FAR (opens in a new tab)The federal buying rulebook as it stands in the published regulation.
- The FAR Overhaul (opens in a new tab)The official page for the rewrite of the FAR, with the new text part by part.
- FAR 2.101, definitions (opens in a new tab)The official meanings of many contracting words, and the current dollar thresholds.
- GAO snapshot of federal contracting, fiscal year 2025 (opens in a new tab)How much the government spent on contracts in fiscal year 2025, and on what.