Summary
Highlights
Natalie makes six figures a year working one to two hours a week by landing government contracts in areas she has no prior experience in. She bids on jobs, finds subcontractors to do the work, and captures the profit. You don't need to be established or have experience. If you know how to use ChatGPT or Claude, you're an expert on the thousands of jobs up for bid on sam.gov. This business can scale to six, seven, or even eight figures a year with basically no startup costs and low time spent per week.
The government is required to spend money annually with small businesses. To become a small business, you need an LLC. Once you have an LLC, register your business with sam.gov, a free public website. When naming your LLC, choose a generic name like 'Natalie's Services LLC' instead of a specific one to keep your bidding options broad. When looking for opportunities, prioritize services over products because it's easier to negotiate payment terms with service providers, where you get paid first and then pay your subcontractor.
Natalie's first winning bid was for formalin (hazardous waste) disposal, a 5-year contract where she doubled her subcontractor's $700 quote to $1,500 per pickup. This resulted in an $800 profit per pickup, totaling over $10,000 annually for five years. Her second win was a catering contract in Idaho. Her subcontractor charged $41,000, and she charged the government $52,000, making an $11,000 profit in two weeks. Learning to check past government pricing for similar services can help in setting competitive bids and maximizing profit.
Government contracting is a numbers game; the more contracts you bid on, the higher your chances of winning. There are hundreds of thousands of contracts daily from local, state, city, schools, and universities. The average person can win one contract and secure steady income for three to five years. The government issues an evaluation criteria for every contract, which outlines what they are looking for. Often, they prioritize the lowest price if all submission requirements are met. Subcontracting is encouraged, and explicitly stated in job listings when not allowed.
Natalie uses AI tools like Claude to process solicitations and attachments quickly. She uses a specific prompt to determine if a contract is worth pursuing, create proposals, and understand submission requirements. Niching down can lead to larger contracts; for example, Natalie focuses on hazardous waste and landscaping but has also won unique bids like a relocation assistance contract. Contracts under $350,000, classified as Request for Quotes (RFQs), don't require past performance, making them ideal for new contractors. You can also use a partner's past performance for larger contracts.
Natalie profits $10,000 to $12,000 monthly, with some months reaching $24,000. These are recurring revenues from 5-year contracts. To maintain this, she spends about one hour a month, primarily for invoicing, provided she has reliable subcontractors. Subcontractors should be hungry, communicative, and responsible. Vetting subcontractors involves reviewing their online presence, past work, and ensuring they are serious about their business. It's crucial to have clear communication and a contingency plan, as the prime contractor is ultimately responsible for contract fulfillment.
Government contracting is not widely known, but AI has made it more accessible. Startup costs are minimal: an LLC, internet, and a cell phone. The process requires hustle and systemization, but the opportunities are vast across various governmental levels. Felons can participate by subcontracting work, as they are not on-site. Government agencies can make mistakes, and contractors should not hesitate to negotiate modifications if the scope changes. The government also provides free advisories via PTAC and Apex offices to assist with proposals.
A law states that the prime contractor must do at least 50% of the work, unless the subcontractor is also a certified small business in the same industry. Special programs provide advantages for woman-owned, minority-owned, veteran-owned, or businesses in disadvantaged areas. You must add value beyond simply passing through the work to avoid illegal pass-through schemes. Research, utilize free advice from PTAC or Apex offices, and consider SBA certifications for potential advantages.