Government contract pay varies enormously — here is how to read the numbers
One of the first questions every business owner asks when exploring government contracting is: how much can I actually make? The range runs from a few thousand dollars for a simple supply order to hundreds of millions for a major multi-year services contract — which is not particularly useful without more context.
What matters is understanding the realistic range for your specific industry and contract type, what drives contract value up or down, and what a first-time contractor should realistically expect to pursue. Use the Contract Finder to see current dollar amounts on active solicitations in your industry and state right now.
How contract values are determined and reported
Federal contract values depend on several factors: the scope and duration of work, the agency is budget for that requirement, the contract type (firm-fixed-price versus cost-reimbursement), and whether it includes option years. A janitorial services contract for a single small federal office building might be worth $80,000 per year. The same contract type for a large multi-building federal campus might be worth $2 million per year.
Multi-year contracts are typically reported at their total potential value — base period plus all option years exercised. A $500,000 annual services contract with four option years may be listed as a $2.5 million award. This makes contract values appear larger than the annual revenue they represent. When evaluating whether to pursue an opportunity, look at the annual value, not just the headline total.
Janitorial and facilities maintenance
Small facility contracts typically run $50,000 to $300,000 annually. Larger campus or multi-building awards reach $500,000 to $3 million per year. Total contract values including all option years commonly range from $250,000 to $15 million. This is one of the most accessible entry points in federal contracting — contracts are locally awarded, set-asides are frequent, and the work is clearly defined. A first-time contractor winning a $75,000 janitorial contract builds the federal past performance credential needed to pursue $750,000 awards in subsequent years.
Construction and renovation
Small repair and maintenance projects run $25,000 to $500,000. Mid-size renovation contracts fall in the $500,000 to $5 million range. New construction projects start at $5 million and extend to $50 million and above for major facility projects. The Army Corps of Engineers and GSA award the highest volumes of construction contracts. Under the simplified acquisition threshold of $250,000, agencies have additional flexibility in award procedures — making contracts at this level particularly accessible for small businesses without extensive federal contracting history.
IT support and managed services
Help desk and desktop support contracts typically run $200,000 to $2 million annually. Network managed services range from $500,000 to $10 million per year. Cybersecurity services contracts frequently exceed $1 million annually and can reach $50 million for large agency engagements. IT contracting runs higher in total value because of the multi-year structures common in technology services and the business-critical nature of the work. An 8(a)-certified IT firm can access sole-source contracts up to $4.5 million without competitive bidding — a significant advantage for small businesses in this category.
Landscaping and groundskeeping
Single-site contracts run $30,000 to $150,000 per year. Multi-site regional contracts reach $200,000 to $1 million annually. Veterans cemeteries and national memorials carry premium pricing due to the exacting standards required for these facilities. Including all option years, total contract values commonly range from $150,000 to $5 million. These contracts provide stable recurring revenue and are consistently among the most frequently set aside for small businesses.
Security guard services
Single-building security contracts run $150,000 to $500,000 per year. Multi-site or armed guard contracts reach $500,000 to $5 million annually. DHS and DOD facilities award the highest-value security contracts. This category frequently uses IDIQ (Indefinite Delivery Indefinite Quantity) contract structures where a master agreement is awarded and task orders for specific locations and periods are issued against it over time — providing both flexibility and revenue predictability.
Professional and consulting services
Project-based consulting engagements run $100,000 to $1 million. Long-term advisory contracts reach $500,000 to $10 million annually. Program management and evaluation contracts range from $2 million to $50 million for major agency programs. This is among the highest-margin categories in federal contracting — the work is primarily professional labor, overhead costs are lower than construction or manufacturing, and experienced consultants bill at $150 to $300 per hour on federal cost-reimbursement contracts. A strong proposal and credible past performance can make a small firm genuinely competitive against much larger companies.
What a realistic first contract looks like
Most small businesses win their first federal contract in the $50,000 to $500,000 range. This is not a disappointment — it is a critical milestone. Your first federal award gives you the past performance record that is one of the most important evaluation factors on every future bid. A $75,000 janitorial contract performed well is worth far more than its dollar value because it opens the door to contracts that are five or ten times larger. Agencies trust contractors they know have delivered before.
Start by searching for opportunities in your industry and state at the Contract Finder. Review the dollar values on active solicitations. This will give you an accurate picture of what agencies in your area are currently buying and at what price points — which is the information you need to decide where to focus your first bid efforts.