$750 billion a year — and most small businesses are targeting the wrong slice of it.

The federal government spends over $750 billion on contracts every year. Texas state agencies spend billions more. And Texas has 254 counties, 1,023 school districts, and hundreds of special-purpose entities that buy from private businesses every single day.

By the end of this module, you will know which market — or combination of markets — gives your specific business the clearest path to a first win.

Three markets. Three completely different systems.

DoD, VA, GSA, DHS, NASA Johnson. Every contract over $25,000 posted on sam.gov. Highest values, most formal, longest timelines — and the most small business programs.

Federal is the largest market — but not always the fastest path to your first win.

For a Texas business, the federal presence is massive: Fort Hood, JBSA, NAS Corpus Christi, VA medical centers in Houston/Dallas/Waco/San Antonio, NASA Johnson, and dozens of civilian agencies.

Every federal contract over $25,000 must be posted on sam.gov — that's a legal requirement, not a suggestion. Which means if you have your search alerts set up correctly, you'll see every relevant opportunity the moment it posts. That level of market visibility simply doesn't exist in commercial sales.

The most overlooked market — and for new contractors, often the best first move.

Texas has over 1,200 municipalities, 254 counties, 1,023 school districts, and hundreds of special-purpose entities. All of them buy constantly. Most contractors ignore them.

Key portals: Bonfire (Harris County, Dallas, Fort Worth, McKinney, AISD) · IonWave (HISD + DFW area) · OpenGov (Austin, Corpus Christi) · BidNet Direct and DemandStar (aggregators across multiple entities)

How a contract actually gets awarded — from the inside.

Understanding the government's buying process tells you exactly where to invest your energy. Here's what actually happens, step by step.

1. 1Program manager identifies a need. A government employee has a problem — a service to perform, product to deliver, project to complete. They bring it to procurement.
2. 2Contracting officer plans the acquisition. The CO decides whether to set the contract aside for small businesses, which contract type to use, and how formal the process needs to be.
3. 3Sources Sought / RFI is issued. The CO asks the market: "Who can do this work?" Most contractors ignore this because there's no contract yet. This is the single biggest missed opportunity in GovCon. Responding puts your name in front of the CO before any competitor enters the picture — but there's a deeper advantage most coaches don't tell you: your response goes to the program manager, who is still writing the Statement of Work. If you clearly describe a specific capability, that capability language sometimes ends up in the final solicitation. You've essentially helped shape the requirements that everyone else has to respond to. A Sources Sought response is 1–2 pages: introduce your company, describe relevant experience, confirm you can meet the requirements, and note your small business status and certifications. No price, no proposal. Just presence — and positioning.
4. 4Solicitation is released. The formal bid document goes live. The clock starts immediately.
5. 5Proposals are evaluated. Evaluators score against published criteria. Writing to the criteria is the single most important skill in proposal writing.
6. 6Award and debrief. Winner is notified. What most contractors miss: under FAR 15.506, you have a legal right to request a debrief within 3 business days of being notified you lost. Almost nobody does this. Debriefs reveal your technical score vs. the winner, your specific proposal weaknesses the evaluators documented, and whether your price was competitive. One debrief will improve your next proposal more than reading any guide. Request it every time.

Government contracting is a relationship business dressed up as a paperwork business.

Three people determine your fate at every agency. Know exactly who they are and what they can do for you.

Which market is right for your business?

Use this as a starting point. As your business grows, you'll pursue multiple markets simultaneously.

Decision Point

A real scenario from the field. No answer permanently locks you out — but the consequences below are real. Choose one, then see what unfolds.

Make a choice above, then continue to the knowledge check.

Knowledge Check

Three quick questions to lock in what you just learned. Click any answer — right or wrong, you'll see the full explanation. The goal is retrieval, not a grade.

Complete these before moving to Module 2.

Module 2 covers the business setup steps that unlock your eligibility — legal structure, EIN, banking, and the financial infrastructure agencies will verify before awarding you a contract.

• ✓Identified your primary starting market — federal, Texas state, Texas local, or a specific combination — and written one sentence explaining why: where your buyers are, whether you have relevant certifications, and how quickly you need revenue
• ✓Named 3 specific target agencies — not categories, actual agencies (e.g., "Harris County Facilities Management" not just "local government") — written down somewhere you'll return to
• ✓Looked up at least 1 past contract award on usaspending.gov in your service area — noted the agency, dollar value, contractor name, and contract end date. If the end date is within 18 months, you've found a live re-competition opportunity. Put it on your calendar.
• ✓Can explain in your own words what a Sources Sought notice is and why responding to one — before any contract exists — is the highest-leverage thing a new contractor can do