Government procurement programs provide Texas small businesses with access to billions of dollars in federal, state, and local government contracts. Unlike grants, procurement opportunities are ongoing — government agencies purchase goods and services continuously, creating a steady stream of revenue opportunities for certified and registered businesses. This guide covers the major procurement programs available to Texas small businesses.
Federal Procurement Programs
Small Business Set-Asides
Federal agencies are required to set aside certain contracts exclusively for small businesses when the agency determines there are at least two qualified small businesses that can perform the work at a fair price. The federal government has a statutory goal of awarding at least 23% of all prime contract dollars to small businesses. In practice, hundreds of billions of dollars in contracts are set aside for small businesses annually.
SBA 8(a) Set-Asides and Sole-Source
The 8(a) program provides the most aggressive procurement preferences, including sole-source contracts up to $4.5 million for services and $7.5 million for manufacturing. Complete 8(a) certification guide.
WOSB Set-Asides
Women-owned small businesses can access set-aside and sole-source contracts in designated NAICS codes. WOSB guide.
SDVOSB Set-Asides
Service-disabled veteran-owned businesses have their own set-aside and sole-source opportunities, with particularly strong preferences at the VA. SDVOSB guide.
HUBZone Set-Asides
Businesses in designated HUBZones can access set-aside contracts and receive a 10% price evaluation preference in full and open competitions. HUBZone guide.
GSA Schedule
The GSA Schedule (also called the GSA Multiple Award Schedule or Federal Supply Schedule) is a long-term contract vehicle that allows federal agencies to purchase products and services directly from pre-approved vendors. Getting on the GSA Schedule requires an application process, but once approved, your business is visible to all federal buyers. Texas businesses on the GSA Schedule can sell to agencies nationwide.
State of Texas Procurement
Texas HUB Program
The Historically Underutilized Business program is the primary state procurement preference program. State agencies are required to make good faith efforts to meet HUB participation goals across all procurement categories. HUB certification gives your business visibility in the state's vendor directory and positions you for both prime and subcontracting opportunities. Complete HUB certification guide.
Centralized Master Bidders List (CMBL)
All businesses wanting to sell to Texas state agencies should register on the CMBL through the Texas Comptroller's office. The CMBL is the state's vendor registration system, and agencies use it to identify potential vendors. Registration is free and allows you to receive bid notifications for your commodity codes.
Electronic State Business Daily (ESBD)
The ESBD is the official portal for state procurement postings. All state purchasing opportunities above certain thresholds are posted here. Monitoring the ESBD and setting up email alerts for your commodity codes is essential for finding state contract opportunities.
HUB Subcontracting Plans
On larger state contracts, prime contractors are often required to submit a HUB Subcontracting Plan showing good faith efforts to subcontract to HUB vendors. This creates subcontracting opportunities for HUB-certified businesses on contracts they could not pursue as prime contractors.
Local Government Procurement
City MBE/WBE Programs
Major Texas cities operate MBE/WBE certification programs with procurement participation goals. Houston, Dallas, San Antonio, Austin, and Fort Worth each have their own programs. MBE/WBE certification guide.
County and School District Procurement
Texas counties, school districts, and special districts purchase goods and services through their own procurement processes. Many use cooperative purchasing organizations like BuyBoard, TIPS/TAPS, or DIR (Department of Information Resources) contracts, which allow vendors to reach multiple agencies through a single contract vehicle.
Building a Procurement Strategy
- Get registered: SAM.gov for federal, CMBL for state, and relevant city vendor registrations.
- Get certified: HUB, 8(a), WOSB, SDVOSB, HUBZone, and city MBE/WBE as applicable.
- Monitor opportunities: Set up alerts on SAM.gov, ESBD, and city procurement portals.
- Build past performance: Start with smaller contracts and subcontracting to build your track record.
- Use free resources: PTACs provide free assistance with all aspects of government contracting.
Identify All Available Programs
Government contracting is just one part of the support landscape. Our screening report checks your business against 150+ verified programs — including procurement preferences, grants, tax credits, and loans — and identifies which ones may match. Start your free screening →