Government contracts represent one of the largest revenue opportunities for small businesses in Texas. Between federal agencies, state government, cities, counties, school districts, and special districts, Texas has an enormous volume of procurement activity. Unlike grants, government contracts pay for goods and services you deliver — providing steady, recurring revenue rather than one-time funding.
This guide covers how Texas small businesses can access government contracting opportunities at every level.
State Contracting: Texas HUB Program
What Is HUB?
The Texas Historically Underutilized Business (HUB) program is the state's primary small business procurement program. HUB certification provides procurement preferences for state agency contracts. Texas state agencies are required to make good-faith efforts to include HUB-certified businesses in their procurement processes.
Who Qualifies
HUB certification is available to businesses that are at least 51% owned and controlled by a person who is:
- A minority (Black, Hispanic, Asian Pacific, Native American)
- A woman
- A veteran (including service-disabled veterans)
The business must be based in Texas or have a significant Texas presence. Certification is free. See our detailed HUB certification guide.
How to Find State Contracts
Texas state contracts are posted through the Electronic State Business Daily (ESBD) and the Centralized Master Bidders List (CMBL). Register on both platforms to receive notifications about contracting opportunities that match your business capabilities.
Federal Contracting
SAM.gov Registration
Every business pursuing federal contracts must register with the System for Award Management (SAM.gov). Registration is free but requires a Unique Entity Identifier (UEI). Allow several weeks for the registration process.
Small Business Set-Asides
The federal government sets goals for small business participation in procurement. A percentage of federal contracts are set aside exclusively for small businesses. Additional set-asides exist for:
- 8(a) businesses: Socially and economically disadvantaged small businesses certified through the SBA 8(a) program.
- Service-Disabled Veteran-Owned (SDVOSB): Businesses owned by service-disabled veterans.
- Women-Owned Small Businesses (WOSB): Businesses certified as women-owned through the SBA.
- HUBZone businesses: Businesses in designated Historically Underutilized Business Zones.
Finding Federal Contracts
Federal contracting opportunities are posted on SAM.gov (formerly FBO). Search by NAICS code, keywords, or agency. Texas has a large federal contracting presence due to military installations, NASA, the VA, and numerous federal agencies with Texas offices.
SBA Procurement Programs
The SBA operates several programs to help small businesses win federal contracts:
- 8(a) Business Development Program: Provides contracting advantages including sole-source contracts up to $4 million for services and $7 million for manufacturing.
- Mentor-Protege Program: Pairs small businesses with experienced government contractors for guidance and joint venturing.
- SBA Surety Bond Guarantee: Helps small contractors obtain bonds needed for government contracts. See our construction grants guide.
Local Contracting
City and County Procurement
Texas cities and counties purchase a wide range of goods and services from local businesses. Many have their own small business or M/WBE procurement programs with set-asides. Common categories include:
- Construction and facility maintenance
- Janitorial and cleaning services
- Landscaping and grounds maintenance
- IT services and equipment
- Office supplies and furniture
- Food service and catering
- Vehicle maintenance and fleet services
- Professional services (accounting, engineering, legal)
Register as a vendor with your city and county purchasing departments. Most Texas cities maintain online vendor registration portals.
School District Procurement
Texas has over 1,000 school districts that collectively spend billions annually on goods and services. School district procurement covers construction, maintenance, food service, transportation, technology, and supplies. Many districts participate in cooperative purchasing programs that streamline the procurement process.
Getting Started with Government Contracting
- Get your certifications: HUB certification (state), SAM.gov registration (federal), and city vendor registration (local) are the foundation.
- Identify your NAICS codes: Know the industry classification codes that match your products and services.
- Start small: Begin with smaller contracts to build past performance. Government buyers value contractors with a track record.
- Attend procurement events: Texas agencies, cities, and federal offices host matchmaking events where small businesses meet contracting officers.
- Consider subcontracting: Larger prime contractors need HUB and small business subcontractors to meet their own procurement goals. Subcontracting builds experience and relationships.
- Pursue Mentor-Protege: If you qualify for 8(a), the Mentor-Protege program can accelerate your contracting capabilities.
Common Industries for Government Contracts
- Construction: Construction business grants guide
- Cleaning and janitorial: Cleaning business grants guide
- Trucking and logistics: Trucking company grants guide
- HVAC and mechanical: HVAC business grants guide
Find Programs That May Fit Your Business
Government contracting is just one of many programs available to Texas small businesses. Grants, tax credits, and workforce incentives can also reduce costs and support growth.
Not sure which programs may fit your business? Our free screening report checks your business against 150+ verified programs — grants, tax credits, loans, and incentives — and shows you which ones may match. Start your free screening →