You need past performance to win a government contract like an RFP. You need a government contract to build past performance. If that sentence made you want to close this tab, you're not alone - it's the single most common reason capable small business owners never bid at all.
So let's actually talk about it, because "it's possible" isn't the same as "here's how."
First - this feeling is completely normal
If you've read an RFP and hit a line asking for "three examples of similar work delivered for a government client" and felt your stomach drop a little, that's not a sign you're not ready. It's a sign the system was built around businesses that already have a foot in the door - which used to describe absolutely nobody, including every business currently winning contracts today.
Every single government contractor working right now started with zero government contracts. The ones with a decade of past performance now had exactly none of it once. Somewhere, they found a way in. There's a way in for you too - it's just usually a different door than the one you're staring at.
Why this catch-22 exists (and why it's not actually a locked door)
Governments genuinely don't want a closed marketplace where the same five companies win everything forever. Small business participation is a real policy priority, not just something written on a webpage - which is exactly why lower-friction entry points exist. You just have to know where to look for them, because they're rarely the big, flashy RFP that first caught your attention.
Where small businesses actually get their first win
1. Start below the formal RFP threshold
In Canada, departments can purchase goods under roughly $25,000 (or services and construction under $40,000) without running a full competitive RFP process. These lower-dollar purchases are exactly where a business with no track record has the best odds - less competition, simpler requirements, and a real shot at your first "yes." It's a smaller cheque, but it's the cheque that turns "we've never delivered for government" into "here's proof we have."
2. Subcontract before you prime
You don't have to be the business that signs the contract to gain real, legitimate experience from it. Larger contractors and established primes often need subcontractors and specialists to actually deliver the work. Subcontracting gets you inside a government project, builds a track record you can genuinely point to later, and often comes with far less compliance overhead than bidding as the prime.
3. Target standing offers and supplier lists - not just one-off tenders
We've written before about how a meaningful amount of government work never gets re-advertised publicly - it's called off directly from pre-approved supplier lists (standing offers and supply arrangements). Getting listed doesn't require existing government past performance the way a large competitive RFP often does; it requires meeting the qualification criteria for that specific list, which is frequently more about capability and credentials than prior contract history.
4. Let your commercial and private-sector work count
Not every RFP demands government-specific past performance. Many will accept - and some genuinely welcome - relevant work you've delivered for private clients, municipalities, or non-profits as evidence of capability. Don't assume "similar work" has to mean "similar work for government." Read the actual wording of the requirement before ruling yourself out.
5. Watch for the Small Business Procurement Program
Public Services and Procurement Canada is rolling out a phased Small Business Procurement Program, specifically designed to make requirements friendlier for smaller, newer suppliers. If you're building your first government track record, this is the kind of shift worth watching closely - it's a sign the door is being propped open on purpose, not just left ajar by accident.
What this actually looks like in practice
A new supplier rarely wins a seven-figure federal RFP as their first contract - and that's fine, because that was never really the plan. The realistic path looks more like: a small below-threshold purchase, then a subcontract role on a larger project, then a standing offer listing, and only then, a few real examples later, a competitive RFP where you can finally check the "past performance" box honestly instead of hoping nobody looks too closely.
Each of those steps is smaller than the opportunity that first caught your eye. That's the point - they're also each far more winnable.
Frequently asked questions
Can a business with zero government contracts actually win one? Yes. Nearly every current government contractor started with none. The path in is usually through smaller, below-threshold purchases, subcontracting, or standing offer lists - not the largest RFP you can find.
Does commercial experience count as past performance? Often, yes - many RFPs accept relevant private-sector or municipal work as evidence of capability. Always check the exact wording of the RFP though! Some RFPs may specifically request a specific type of experience.
What's the fastest way to start building a track record? Subcontracting with an established prime contractor. It gets you real, verifiable delivery experience on a government project without needing to win the prime contract yourself.
You don't need experience. You need a way in.
That's really what this comes down to: not becoming more qualified, but finding the entry point that matches where you're actually starting from. Once you've got even one real example under your belt, everything after it gets easier.
If you're staring at an opportunity right now and can't tell whether it's realistically winnable at your stage, that's exactly the kind of question worth a second opinion. Book a free 20-minute call and I'll give you an honest read.