TL;DR: Government contracting is a viable career pivot for displaced professionals. The US government spends $700B+/year on contracts, with 28% reserved for small businesses. Your corporate skills — IT, consulting, project management — are in demand. Browse open tenders to see what's available.

The job market in 2026 looks different than it did a few years ago. Tech layoffs, AI-driven restructuring, and economic shifts have displaced thousands of experienced professionals — many with deep expertise in IT, engineering, consulting, project management, and other fields that the government desperately needs.

If you've been laid off or are considering a career change, government contracting might be the most overlooked opportunity available to you. The federal governments of Canada and the US spend hundreds of billions on services every year, and they're actively looking for small businesses to provide them.

This isn't a get-rich-quick pitch. Government contracting requires patience, learning a new system, and building credibility. But for professionals with real skills, it offers something rare: a stable, growing market that doesn't disappear when venture capital dries up.

Why Government Contracting Makes Sense Right Now

The Government Needs What You Know

Federal agencies face the same challenges as the private sector — cybersecurity threats, aging IT infrastructure, data management, compliance requirements, project backlogs — but they can't hire fast enough to address them. They contract out.

Here are the kinds of skills that translate directly to government work:

IT and software development — the federal government is one of the largest buyers of IT services in the world
Cybersecurity — mandates like FedRAMP and CMMC create constant demand
Project management — every large government program needs PMs
Data analysis and reporting — agencies need help making sense of their data
Financial analysis and accounting — auditing, compliance, and financial management
Engineering — civil, electrical, mechanical, environmental
Training and curriculum development — government employees need training programs
Technical writing — every regulation, manual, and procedure needs documentation
Marketing and communications — public-facing agencies need communications support
HR and organizational consulting — workforce planning, DEI programs, change management

If you've spent 5-15 years doing any of these in the private sector, you have skills the government will pay for.

The Market Is Growing, Not Shrinking

Unlike tech startups that can evaporate overnight, government procurement is mandated by law. The US federal government spent over $700 billion on contracts in fiscal year 2024. Canada's federal procurement exceeds $20 billion annually. These numbers go up, not down, because the services are essential.

Small Business Set-Asides Level the Playing Field

In the US, the Small Business Administration (SBA) requires that a percentage of federal contracts be reserved for small businesses. This means you're not competing against Deloitte or Lockheed Martin — you're competing against other small firms, often just 3-10 of them.

Additional set-asides exist for:

Woman-owned small businesses
Veteran-owned businesses
Service-disabled veteran-owned businesses
Economically disadvantaged businesses (8(a) program)
HUBZone businesses

How to Start: A Realistic Roadmap

Month 1: Foundation

1. Choose your niche. Don't try to be everything. Pick the service area where you have the strongest track record. "IT consulting" is too broad. "Cloud migration for federal agencies" is a niche. "Cybersecurity compliance assessment" is a niche.

2. Form a legal entity. If you don't already have an LLC or corporation, create one. Government contracts require a legal business entity.

3. Register in SAM.gov (US) or CanadaBuys (Canada). This is mandatory for federal contracting. The registration is free but takes time — start early. For a step-by-step walkthrough of SAM.gov, see our SAM.gov beginner's guide.

4. Get your NAICS codes. Select the NAICS codes that describe your services. These determine which contracts you're eligible for and whether you qualify as "small business" in your sector. Our NAICS codes guide explains how to choose the right ones.

Month 2: Market Research

5. Study what the government buys. Browse current tenders in your field:

Look at the scope of work, evaluation criteria, and contract sizes. Get a feel for how the government describes the work you do.

6. Study past awards. Look at who won similar contracts and for how much. This tells you the going rate and who your competitors are.

7. Find your PTAC (US). Procurement Technical Assistance Centers are funded by the DoD and offer free counseling to small businesses entering government contracting. There's one in every state. They will literally help you fill out your SAM.gov registration and review your first proposal — for free.

Month 3-6: First Bids

8. Start with subcontracting. Your fastest path to government work may not be winning a prime contract directly. Large prime contractors (the Deloittes and Booz Allens of the world) have small business subcontracting requirements. They need partners. Reach out to primes in your area and offer your specialized skills as a subcontractor.

9. Bid on small contracts. Look for opportunities in the $25K - $100K range. These are often simpler solicitations, have fewer competitors, and let you build past performance without overcommitting. Based on our analysis of 5,700+ federal awards, 38% of all contracts fall in this range.

10. Write your first proposal. Government proposals have specific formats and expectations. Read our guide on how to write a government proposal before you start. Your first one will take longer than expected — that's normal.

What You Need (And What You Don't)

You Need:

Relevant experience. Past performance is the #1 evaluation factor in most government proposals. Your private sector experience counts.
A legal business entity. LLC, S-Corp, or C-Corp.
SAM.gov or CanadaBuys registration. Free, mandatory.
Basic insurance. General liability at minimum. Some contracts require professional liability, workers' comp, or bonding.
Patience. The government procurement cycle is slow. From finding an opportunity to receiving payment can take 6-12 months.

You Don't Need:

A large team. Many government contracts are won by solo consultants or firms with 2-5 people.
A physical office. Many service contracts are performed remotely or at the client's site.
Prior government experience. While helpful, it's not required. Private sector experience in the relevant field is valued.
A security clearance. Most contracts don't require one. If a contract does, the sponsoring agency will initiate your clearance.
Certification as a government contractor. There's no such thing. If you're registered in SAM.gov and meet the solicitation requirements, you can bid.

The Financial Reality

Let's be honest about the economics:

Startup costs are low. Business registration, insurance, and your first few months of operations might cost $2,000 - $5,000. Compare that to most business startups.

Revenue ramps slowly. Don't expect income in your first 3 months. The bidding and award cycle takes time. Plan to have 6 months of personal runway before your first contract payment arrives.

The payoff is real. The median federal contract is worth approximately $130,000. If you win 3-4 contracts per year, that's $400K - $500K in revenue. Government contracts also tend to repeat — once you've delivered successfully, the same agency will often come back.

Payment is reliable. The US government pays its bills. It might take 30-60 days, but the check doesn't bounce. The same is true for the Government of Canada.

How GovBid Helps

The hardest part of government contracting for newcomers isn't the bidding — it's finding the right opportunities. You can't bid on what you don't know exists.

GovBid solves this by monitoring CanadaBuys and SAM.gov daily and sending you contracts matched to your specific skills and industry. Instead of spending hours searching procurement portals, you get a daily email with:

Contracts matched to your business using AI
Plain-English summaries (no government jargon)
Estimated values and deadlines
Direct links to bid

GovBid is completely free — no subscription, no credit card. You get daily matched contracts without spending a cent.

From Layoff to Government Contractor: How Displaced Professionals Are Pivoting