Government Contracting 101 for Veterans: Complete Guide

The federal government doesn't build its own fighter jets, write its own software, or run all its own facilities. It contracts out. And the companies doing this work—government contractors—need people who understand the mission, hold security clearances, and can navigate federal environments.

That's you.

Government contracting represents one of the largest employment sectors for veterans. Your clearance, your understanding of military operations, and your mission-focused mindset make you exactly what these companies seek.

What is Government Contracting?

The Basic Model

The federal government contracts with private companies to:

• Provide goods and services
• Develop technology
• Support operations
• Augment federal workforce
• Deliver specialized expertise

Scale: The federal government spends over $700 billion annually on contracts. Defense contracts alone exceed $400 billion.

Why Contractors?

Government uses contractors because:

• Flexibility: Scale workforce up/down with needs
• Expertise: Access specialized skills
• Cost: Sometimes more efficient than federal employees
• Speed: Can hire faster than federal process
• Innovation: Private sector technology and methods

Types of Work

Government contractors do virtually everything:

• IT systems and cybersecurity
• Weapons systems development
• Logistics and supply chain
• Training and simulation
• Facility management
• Professional services
• Research and development
• Intelligence analysis
• Administrative support

Types of Government Contractors

Large Defense Contractors

The "primes" - massive companies with billions in contracts:

Lockheed Martin:

• Largest defense contractor
• F-35, missiles, space systems
• 110,000+ employees

RTX (Raytheon):

• Missiles, radar, cybersecurity
• Pratt & Whitney engines
• 180,000+ employees

Boeing:

• Aircraft, space, defense systems
• Commercial and military
• 140,000+ employees

Northrop Grumman:

• B-21 bomber, space systems
• Cybersecurity, autonomous systems
• 95,000+ employees

General Dynamics:

• Submarines, land systems
• IT services (GDIT division)
• 100,000+ employees

Professional Services Contractors

Companies focused on services rather than hardware:

Booz Allen Hamilton:

• Consulting and analytics
• Cyber, defense, intelligence
• 30,000+ employees

SAIC:

• IT services, engineering
• Defense and intelligence
• 25,000+ employees

Leidos:

• IT, engineering, science
• Defense, intelligence, health
• 45,000+ employees

CACI:

• IT, intelligence services
• Defense solutions
• 23,000+ employees

ManTech:

• IT, cyber, intelligence
• Defense focused
• 10,000+ employees

Specialized Contractors

Companies focused on specific areas:

L3Harris:

• Communications, electronics
• ISR systems
• 50,000+ employees

BAE Systems:

• Electronic warfare
• Combat vehicles
• 90,000+ employees globally

Peraton:

• Space, intelligence, cyber
• Mission-critical support
• 14,000+ employees

Small Businesses

Thousands of small contractors:

• Often subcontract to primes
• Set-aside contracts for small business
• Veteran-owned business advantages
• More nimble, diverse opportunities

Why Contractors Want Veterans

Clearance Value

Your security clearance is gold:

• Secret clearance: Saves 3-6 months hiring time
• Top Secret: Saves 6-12+ months
• TS/SCI: Extremely valuable, hard to obtain
• Active clearance: Immediate project placement

Companies pay premiums for cleared talent because:

• Can't wait 12+ months to fill positions
• Contracts require cleared personnel
• Clearance shows trustworthiness
• Investigation already complete

Mission Understanding

You understand the customer:

• Military operations and culture
• How DoD/IC actually works
• Terminology and processes
• What warfighters need

Work Ethic

Military develops valued traits:

• Reliability and punctuality
• Working under pressure
• Team orientation
• Getting things done
• Adapting to change

Technical Skills

Military training provides:

• Specific technical competencies
• Systems knowledge
• Operational procedures
• Quality discipline

Government Contracting Career Paths

On-Site Support

Working at government facilities:

• Embedded with government team
• Use government systems
• Daily customer interaction
• Often feels like government job

Common roles:

• Program analyst
• Administrative support
• Technical specialist
• IT support

Technical/Engineering

Building and maintaining systems:

• Engineering positions
• Technical development
• Maintenance and support
• Integration work

Common roles:

• Systems engineer
• Software developer
• Hardware technician
• Test engineer

Professional Services

Advisory and analytical work:

• Consulting
• Analysis
• Strategy
• Specialized expertise

Common roles:

• Management consultant
• Intelligence analyst
• Financial analyst
• Subject matter expert

IT and Cyber

Growing demand area:

• Cybersecurity
• Network administration
• Software development
• Cloud/infrastructure

Common roles:

• Cyber analyst
• Network engineer
• Security specialist
• DevOps engineer

Operations and Logistics

Supply chain and operations:

• Logistics management
• Supply chain operations
• Maintenance support
• Training delivery

Common roles:

• Logistics specialist
• Maintenance technician
• Training developer
• Operations analyst

How GovCon Hiring Works

Contract-Driven Hiring

Unlike typical companies:

• Hiring depends on winning contracts
• Positions tied to specific contracts
• Contract end can mean job end
• Transfers between contracts common

The Process

1. Contract win: Company wins government contract
2. Staffing need: Contract requires specific positions
3. Recruitment: Company recruits for positions
4. Clearance match: Match candidate clearance to requirement
5. Customer approval: Often government approves candidates
6. Onboarding: Start on contract

Clearance Requirements

Most positions require clearance:

• Uncleared: Fewer options, lower pay
• Secret: Many opportunities
• Top Secret: Premium opportunities
• TS/SCI: Highest demand, best pay

Location Matters

GovCon concentrations:

• Washington, DC area: Largest market
• Northern Virginia: Intelligence, cyber
• Maryland: Agencies, Fort Meade
• Huntsville, AL: Defense, space
• Colorado Springs: Space, defense
• San Diego: Navy, defense
• Other bases: Wherever military operates

GovCon Salary Expectations

Cleared Premium

Clearance affects salary significantly:

Clearance Level	Salary Premium
Secret	+10-20%
Top Secret	+20-35%
TS/SCI	+30-50%
TS/SCI + Poly	+40-60%+

Role-Based Ranges

Approximate ranges (DC area):

Entry Level (0-3 years):

• Administrative: $50K-$70K
• Technical: $65K-$90K
• Analyst: $60K-$85K

Mid-Level (3-7 years):

• Administrative: $70K-$90K
• Technical: $90K-$130K
• Analyst: $85K-$120K

Senior (7+ years):

• Administrative: $90K-$120K
• Technical: $130K-$180K+
• Analyst: $120K-$160K+

Benefits

Most contractors offer:

• Health insurance
• 401(k) with match
• PTO (varies widely)
• Tuition assistance
• Training opportunities

Note: Benefits vary significantly between companies. Large primes typically offer better benefits.

Finding GovCon Jobs

Company Career Sites

Apply directly to contractors:

• Most hiring through company sites
• Search by clearance level
• Filter by location
• Review contract opportunities

ClearanceJobs.com

Premier cleared job board:

• Focused on cleared positions
• Indicates clearance requirements
• Company profiles
• Resume posting

Indeed/LinkedIn

General job boards:

• Search "security clearance"
• Search specific contractors
• Network with recruiters
• Set alerts

Recruiters

GovCon staffing firms:

• Work with multiple contractors
• Match skills to openings
• Know the market
• Can be helpful resource

Networking

Veterans network in GovCon:

• Many veterans already work there
• Unit alumni often at contractors
• LinkedIn veteran groups
• Professional associations

Military Experience Translation

Direct Translation

Military Role	GovCon Role
S3/Operations	Program Analyst
S2/Intelligence	Intelligence Analyst
S4/Logistics	Logistics Specialist
S6/Communications	IT Specialist
Maintenance	Maintenance Tech/Engineer
Training	Training Developer
Admin	Administrative Specialist

Skills Translation

Military skills apply:

• Leadership: Project management
• Operations: Program support
• Technical: Engineering/IT
• Analysis: Analytical roles
• Communication: Liaison roles

Contractor vs. Federal Employment

Contractor Advantages

• Higher salary: Often 15-30% more than federal
• Faster hiring: Weeks vs. months
• More flexibility: Change projects/companies
• Merit advancement: Performance-based

Contractor Disadvantages

• Job stability: Contract dependent
• Benefits: Often less robust than federal
• Retirement: 401(k) vs. pension
• Mission ownership: Supporting, not owning

Federal Advantages

• Job stability: Hard to terminate
• Benefits: Better health, pension
• Mission ownership: Direct responsibility
• Authority: Decision-making power

Career Strategy

Many veterans:

1. Start contractor (quick hiring)
2. Gain experience
3. Move to federal (stability) or
4. Stay contractor (salary)

Or vice versa—federal first, then contractor for salary later.

Getting Started in GovCon

Immediate Steps

1. Maintain your clearance: Critical asset
2. Create ClearanceJobs profile: Primary cleared job board
3. Update LinkedIn: Visible to recruiters
4. Research companies: Identify target employers
5. Apply broadly: Multiple applications increase odds

Resume Tips

For GovCon resumes:

• Clearance prominent: Top of resume
• Military translation: Use civilian terms
• Quantify achievements: Numbers and results
• Relevant skills: Match job requirements
• Keywords: Match posting language

Interview Preparation

GovCon interviews typically include:

• Technical/skill verification
• Clearance discussion
• Contract fit assessment
• Cultural fit evaluation

Prepare to discuss:

• Your military experience in civilian terms
• Technical capabilities
• Clearance status and timeline
• Flexibility and availability

Common Mistakes to Avoid

Clearance Assumptions

• Don't assume clearance transfers automatically
• Understand investigation currency
• Know your investigation type
• Be honest about status

Salary Expectations

• Research market rates
• Understand location differences
• Consider total compensation
• Don't undersell yourself (or overprice)

Job Stability

• Understand contract nature
• Ask about contract timeline
• Consider company stability
• Have backup plans

Culture Fit

• Not all contractors are same
• Company culture varies widely
• Research before accepting
• Talk to current employees

The Bottom Line

Government contracting offers veterans:

• Immediate application of military experience
• Clearance monetization
• Mission-relevant work
• Strong compensation
• Multiple career paths

Your military service prepared you for this world. Your clearance opens doors. Your experience is valued.

The government contracting industry needs you.

Start your search at ClearanceJobs.com, Indeed, or company career sites

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Ready to explore specific contractors? See our guides to Lockheed Martin, Booz Allen Hamilton, and other top defense contractors.