Breaking into the world of federal contracting can feel like trying to learn a new language, one filled with acronyms, regulations, and opaque processes. But for small businesses, especially veteran-owned and women-owned enterprises, federal contracts represent a powerful pathway to sustainable growth, community impact, and national contribution.
After years navigating this space as both a veteran and a small business owner, I want to pull back the curtain and help others better understand the contracting process, starting with those three little letters that tend to intimidate newcomers: RFI, RFP, and RFQ.
Understanding the Alphabet Soup: RFI, RFP, RFQ
RFI – Request for Information
Think of an RFI as market research. The government uses RFIs to gather intel on the capabilities of industry suppliers. Responding to an RFI doesn’t mean a contract is up for grabs—yet. It’s your opportunity to introduce your company, showcase your niche, and shape how a future procurement might be designed. Smart contractors use RFIs to build relationships early and influence acquisition strategies before requirements are locked in.
RFP – Request for Proposal
This is the main event. An RFP signals that an agency is ready to buy and is seeking detailed proposals that explain how you will meet their needs, at what cost, and with what qualifications. RFPs require a narrative, your technical approach, past performance, management structure, and pricing. This is where many small businesses get overwhelmed, but also where they can shine if prepared.
RFQ – Request for Quote
More streamlined than an RFP, an RFQ is typically used for simpler, lower-dollar buys (often under the Simplified Acquisition Threshold). These don’t always require full-blown proposals. Instead, they ask for pricing, basic capabilities, and turnaround time. For small businesses starting out, RFQs can be a manageable entry point into federal sales.
Small Business, Big Impact: How to Compete with the Majors
It’s easy to look at billion-dollar primes and feel like the odds are stacked against you. But small businesses are the priority in many federal acquisitions. The government sets aside billions in contracts specifically for small, veteran-owned, women-owned, HUBZone, and 8(a) businesses each year. For example, federal contracts between $10,000 and $250,000 are automatically set aside for small businesses. And there is a 5% of contracting dollars goal for 8(a) businesses and women-owned businesses, and a 3% goal for service-disabled veteran-owned businesses and HUBZone small businesses. The key is preparation and positioning.
Here’s how you can start competing:
- Understand Your NAICS Codes & Certs
Make sure your SAM.gov profile is accurate, with the right North American Industry Classification System (NAICS) codes. Certifications like SDVOSB, WOSB, and HUBZone are more than badges; they unlock exclusive set-aside opportunities. Find more about these certifications from the SBA. - Respond to RFIs Strategically
Even if you’re not ready to prime a contract, responding to an RFI plants a seed. It shows your interest, introduces your capabilities, and may get you invited to future Industry Days or pre-solicitation meetings. - Build a Proposal Library
Winning federal work requires a repeatable system. Start collecting resumes, past performance references, company bios, and standard pricing models. Use each bid to refine your templates and approach. - Team Smartly
If you’re not ready to prime, subcontract. Find larger firms aligned with your niche and certifications and offer value they can’t replicate. Past performance gained this way still counts toward your future bids. - Attend Industry Events
Agencies host matchmaking events, industry conferences, and small business outreach days. I’ve met contracting officers who remembered me from years prior, those relationships matter when your name appears on a proposal.
Closing Thoughts: Opportunity Favors the Prepared
Federal contracting is not a mystery; it’s a method. And once you understand the rules, you can build a repeatable strategy that levels the playing field.
My advice to small businesses: don’t wait until you feel “ready.” The path is learned by walking it. Start with an RFI. Attend an industry day. Introduce your company to contracting officers, large primes, small business offices. It’s not just about chasing contracts, it’s about building capability, trust, and resilience.
America needs what small businesses bring to the table — innovation, agility, and heart. It’s time more of us stepped confidently into the federal arena.
