How to Get Your First Government Contract
Where to start, how to build a track record when you have none, and which tender types are most accessible for first-time bidders.
The most common barrier small businesses face in government tendering is the 'experience catch-22': you need a government contract to get experience, but you need experience to win a government contract. This guide shows you how to break in — without fabricating a track record.
Start with the right tender type
Not all government contracts require an extensive track record. Request for Quote (RFQ) contracts under $80,000 are often awarded based on price and a brief capability statement. These are the entry point for most first-time government suppliers.
Look for 'Simple' complexity tenders on TenderFinder — these are typically RFQs with minimal documentation requirements and shorter submission processes.
Build your capability statement first
A capability statement is a 1–2 page document that summarises your business, experience, and key personnel. You'll use it in almost every government bid. Write it before you start chasing contracts.
Focus on: what you do, who you've done it for (government or comparable private clients), your team's qualifications, your insurances, and your ABN/licences. Keep it factual. No claims you can't evidence.
- •Business overview: what you do, how long you've been operating, ABN
- •Core capabilities: specific services or products, not generic categories
- •Past projects: 3–5 examples with client type, scope, and outcome
- •Key personnel: name, role, qualifications, years of experience
- •Credentials: insurance, licences, certifications
Leverage private sector experience
Many evaluation criteria ask for 'demonstrated experience' — they don't always specify government experience. A well-documented commercial project that is comparable in scope and value to the government contract can absolutely count.
Write your private sector case studies using the same format as government assessors expect: client type, contract value, your scope of work, your approach, and a measurable outcome. This makes them directly usable in bids.
Target the right agencies
Commonwealth agencies with a high volume of small contracts include: the Department of Defence (facilities), Services Australia (IT and consulting), the National Disability Insurance Agency (support services), and various property management agencies.
Regional councils and state government agencies tend to award more contracts to local businesses. If your business is location-specific, start there.
The panel contract strategy
Many agencies use 'panel contracts' — a pre-approved list of suppliers that can receive work orders without a full tender process. Getting on a panel is usually a one-off application process, and once you're on, work comes to you directly.
Search for 'approach to market' or 'standing offer' notices on AusTender. These are often panel establishment processes. Applying for panels is usually simpler than full tenders and a great way to establish a track record.
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