Entering the World’s Largest Procurement Market: A U.S. Public Contracts Overview for Global Vendors

The United States is largely growing in sectors like defense, healthcare, energy, transportation, education, and technology, with $30 trillion GDP (Gross Domestic Product) in 2025. According to the 2024 B-Ready report, the U.S. offers one of the most fertile grounds for global business participation. Additionally, the country is growing with an annual growth rate of 1.8%, which is supported by inflation control, employment growth, and commitment to digital and infrastructure modernization. 

Information Technology is one of the primary growth engines of the United States' digital economy, contributing around $2.7 trillion in 2025. From Silicon Valley to emerging tech hubs in Austin and Atlanta, the United States is a global leader in cloud computing, big data, artificial intelligence, and software services. Moreover, the federal and state governments are investing heavily in digital transformation to streamline public services and enhance operational efficiency.

The United States energy landscape is experiencing a dual revolution, balancing traditional energy production with rapid growth in clean technologies. While being the world's top producer of oil and natural gas, the United States is focused on becoming a leader in green energy, with estimates generating economic results of around $640 billion. The United States government has significantly increased its budget for renewable sources like wind, solar, hydro, and green hydro, which is driven by both federal initiatives and global climate commitments.

Education is a foundational pillar for the United States' long-term economic stability. In FY24, the education department had a total spending of around $150 billion for K-12 systems, higher education, and workforce development. Moreover, the funding is significantly increasing towards digital learning infrastructure, school safety modernization, STEM curriculum expansion, emergency response, housing, and municipal management.

This significant commercial environment is managed in a highly structured and transparent public procurement system, specifically designed to meet governmental needs across the country. The public procurement process is administered at two main levels: the Federal Government and the State Government. Procurement of the federal government is mainly governed by policies like the Federal Acquisition Regulation (FAR) and a centralized platform - SAM.gov. The state-level procurement operates independently, as each state maintains its own procurement procedures, regulatory framework, and digital platforms. 

Understanding the U.S. Federal Government Procurement Process 

The United States encompasses one of the world's most structured and transparent public purchasing systems. The country spends billions every year on goods, services, and infrastructure, making the federal government a vast marketplace for both domestic and international vendors.

The public procurement process for the U.S. federal government is mainly governed under the Federal Acquisition Regulations (FAR) to ensure fairness, efficiency, and accountability across all federal agencies. Moreover, the Office of Federal Procurement Policy (OFPP) manages the oversight and coordination that decides the direction for procurement policies and practices across government departments.

When the U.S. federal agencies identify the need for goods, services, and works, the procurement process begins for acquiring goods, services, and works like defense equipment, construction services, technology, and consulting. The federal procuring agency primarily conducts the internal planning and market research, and then releases a solicitation notice that involves Request for Proposal (RFP), Invitation for Bid (IFB), or Request for Quotation (RFQ) on the official government portal for federal contract opportunities -www.sam.gov.

All vendors who are seeking to apply for these federal contract opportunities must be registered on the portal by securing a Unique Entity ID (UEI). Once the proposal is submitted, the procuring authorities evaluate bids on the basis of varied factors like cost, technical competence, past performance, and regulatory compliance. 

The United States federal procurement agencies regularly offer high-value opportunities for global and U.S.-based vendors while ensuring fair processes and clear paths for both large and small businesses. If you are a potential vendor who is genuinely interested in participating in this dynamic and well-regulated market, you must understand the federal compliance requirements in the United States. 

Federal Compliance Requirements for Contractors in the United States 

Here we've mentioned several compliance requirements for contractors in the United States. 

1. Registered on SAM.gov 

Contractors who are interested in federal procurement in the United States are mandatorily required to be registered on SAM.gov, an official government procurement portal. Registration is free and needs to be renewed every year to allow contractors to participate in the federal procurement process.

2. NAICS Code Classification 

Vendors are also required to identify the products or services they offer using NAICS (North American Industry Classification System) codes. These codes enable vendors to determine what sectors you're eligible to compete in and if you qualify for small business set-asides. 

3. FAR & DFARS Compliance 

All the U.S. government contracts are regulated by Federal Acquisition Regulations (FAR) and Defense Federal Acquisition Regulations Supplement (DFARS). Contractors must strictly adhere to these regulations related to pricing, ethics, reporting, and business conduct. 

4. Small Business Certifications 

Businesses may need official certification from the Small Business Administration (SBA) to participate in certain contract categories. This includes programs for Women-Owned, Veteran-Owned, HUBZone, and Minority-Owned businesses. This certification helps in enhancing visibility and access to set-aside contracts. 

5. Cybersecurity Requirements

Contractors handling government systems must implement cybersecurity safeguards and comply with Cybersecurity Maturity Model Certification (CMMC) - a structured framework to ensure data protection. 

6. TIN/EIN Registration

Contractors who are interested in doing business with the U.S. government must have a valid Taxpayer Identification Number (TIN) or Employer Identification Number (EIN). It is essential for tax reporting, verifying legal status, and receiving payments from federal agencies. 

Top 3 Sectors Offering Tendering Opportunities for the U.S. Federal Government

Listed below are the top three sectors offering tendering opportunities for the U.S. federal government.

1. Healthcare and Medical Supplies 

The healthcare sector is widely growing due to rising demand in veterans' services, pandemic preparedness, and nationwide healthcare reforms. 

U.S.-based agencies like the Department of Veterans Affairs, Health and Human Services, etc., issue healthcare tenders related to pharmaceuticals, medical equipment, staffing, and hospital infrastructure. 

While applying for these tenders, contractors must adhere to various federal guidelines related to safety, FDA approvals, and clinical compliance to qualify. 

2. Professional and Advisory Services 

Professional services are one of the most diverse categories in federal procurement, which includes project management and auditing, as well as legal, HR, and financial consulting. 

Tenders in this sector are typically released through GSA's Multiple Award Schedule system, which streamlines acquisition. 

Contractors are selected based on past performance, industry credentials, and ability to deliver expert services within federal compliance norms. 

3. Clean Energy and Environmental Services 

The United States federal government is increasingly investing in clean energy and environmental solutions due to rising demand for renewable energy. In this sector, renewable tenders are issued for solar and wind energy systems, energy-efficient retrofitting, climate resilience planning, and waste management. 

The Department of Energy, Environmental Protection Agency, and U.S. Army Corps of Engineers are some of the U.S.-based departments that handle procurement-related projects to emphasize innovation, green certifications, and lifecycle cost effectiveness. 

Understanding the U.S. State Government Procurement Process 

The U.S. State Government Procurement process represents how 50 states independently conduct their procurement of goods, services, and public works from private vendors. While the federal government has a centralized procurement system, the state-level procurement is specifically conducted by each state as per its own procurement laws, budget procedures, and oversight mechanisms. This allows each state to maintain its unique operational and policy needs. In addition, more preference is usually given to local businesses and sustainability initiatives. 

All 50 states of the United States have their own digital procurement portal, including Cal eProcure, NYS Contract Reporter, MyFloridaMarketPlace, and more. All the interested vendors must be registered on the state-specific portals to access contract opportunities. The procuring entities issue tenders on the portals with Requests for Proposals (RFPs), Invitations to Bid (ITBs), or Requests for Quotations (RFQs) on the basis of the nature and value of the contract. Vendors must carefully follow the guidelines before submitting proposals.

The United States also has NASPO ValuePoint - a platform for cooperative purchasing. This platform is used by state governments to purchase common goods and services. Vendors must register on this platform to access all the U.S. states through a single competitive service. However, it is still required for the vendors to understand each state's unique legal framework, registration requirements, and evaluation criteria. Plus, vendors are also required to comply with the strategic targeting, compliance, and familiarity with the state preferences to win contracts in diverse procurement landscapes. 

Essential Compliance & Documentation for State-Level Bids

To secure U.S. state government procurement, you cannot only submit competitive bids but also adhere to state-specific regulatory compliance and present a complete, accurate, and state-acceptable set of documentation. Listed below are some of the compliances and documentations that every bidder should know. 

1. Taxpayer Identification & Certifications 

Vendors must have a valid Taxpayer Identification Number (TIN) or Employer Identification Number (EIN) along with a completed W-9 form. In fact, some states may even require you to submit tax clearance certifications to prove that you're in good standing with tax authorities. 

2. Bonds, Insurance, and Performance Guarantees 

For contracts that involve construction, transportation, or services, vendors must show proof of liability insurance, workers' compensation, and bid/performance bonds. This serves as a financial guarantee to safeguard public funds. 

3. Corporate Compliance & Legal Disclosures 

Many U.S. states often ask you for disclosure of past litigation, contract terminations, or conflicts of interest. In addition, you may also need to provide organizational charts, details on corporate ownership, and compliance with the state's corporate filing rules. 

4. Digital Submission Readiness 

As the procurement process is digitizing rapidly, procuring agencies also enforce strict guidelines for uploading files for vendors. For instance, vendors are required to submit documentation on time, within the required formats, while following the state-labeled instructions. 

5. Technical & Past Performance Documentation 

Vendor requests are generally evaluated on the basis of technical capabilities and prior performance. You may even need to provide references, case studies, and detailed technical proposals outlining your approach to project delivery and quality assurance. 

Top 3 Sectors Offering Tendering Opportunities for U.S. State Government 

Here we’ve mentioned the top 3 sectors offering tendering opportunities for the U.S. State government. 

1. Public Safety and Emergency Services 

The United States is focusing on public safety capabilities by improving policies, emergency preparedness, and disaster resilience planning. Departments like State Police, Fire Marshal Offices, and Emergency Management Agencies issue security tenders for the procurement of patrol vehicles, radios, surveillance tech, rescue equipment, and response planning software.

Vendors who are interested in the tenders in this sector must follow equipment certifications, fire safety codes, and training requirements. Moreover, background checks and performance evaluations are also standard during tendering. 

2. Environmental Services and Waste Management 

States are largely investing in sustainability and waste management systems, which include climate resilience, clean energy programs, and more. 

Departments like Public Works or Departments of Environmental Protection issue tenders for projects like recycling services, hazardous waste disposal, water treatment, and green construction consulting. 

Vendors seeking tendering opportunities are required to meet environmental standards, have green certifications, and follow reporting frameworks like emissions tracking or sustainability audits.