One of the first things people assume about government contracting is that it takes serious money to get started — licenses, inventory, a warehouse, maybe a lawyer on retainer. For the everyday-product work most beginners start with, that's simply not the case.
The short answer: getting started is nearly free. You don't spend real money until after you've already won a contract — and even then, many first orders are small.
What's free
- SAM.gov registration. The official government vendor registration costs nothing. If a service offers to "register you on SAM" for a fee, walk away — you can do it yourself for free.
- Finding opportunities. The DLA's bid board, DIBBS, is free to search and free to quote on.
- Submitting bids. There's no charge to submit a price quote on a solicitation.
What actually costs money — and when
Here's the key mindset shift: you don't buy the product until after you win. A solicitation names the exact item; you submit a price you can honor; and only once you're awarded the contract do you purchase that item from your supplier and deliver it.
So your real cost is working capital — the money to fill your first orders before the government pays you. The good news:
- Many first awards are small — often fundable for a few hundred to a few thousand dollars.
- You get paid after your delivery is accepted, so it's a short cycle, not a long-term investment.
- You can be selective — only bid on orders you can comfortably fund.
Costs you might choose (but don't need on day one)
None of these are required to start, but they're worth knowing about:
- Business formation (LLC) and an EIN — if you don't already have a registered business.
- Optional tools or education to speed up your learning curve.
- Packaging or shipping costs, which you build into your quoted price.
The honest bottom line
You can register and start bidding for effectively $0. The money question isn't "can I afford to start?" — it's "can I fund the first order I win?" And because you choose which solicitations to bid on, you stay in control of that. Treat it like a real business with a small, controlled startup cost rather than a big upfront gamble.
See how the whole thing works: How to Sell to the DLA and How to Win Your First Government Contract.