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Annual federal spend under NAICS 561311 is estimated at $200-300 million, with the largest buyers being OPM (via USA Staffing), DoD (especially Army and Navy), and State Department HR. Contracts are predominantly competed as firm-fixed-price, time-and-materials, or hybrid IDIQs with multiple awardees. Demand is driven by seasonal hiring surges, mission-critical skill gaps (e.g., cybersecurity, medical), and legislative mandates like the Veterans Employment Opportunity Act. Competition is moderate; about 200 active 8(a) and SDVOSB firms hold contracts. Most awards are structured as 5-year base-plus-option IDIQs, with occasional single-award BPAs for agency-specific needs.
These agencies are the largest buyers of employment placement agencies services and products in the federal government. Each awards contracts under NAICS 561311 regularly — build relationships with their small business offices first.
To win, focus on agency-specific past performance in placing cleared or specialized talent (e.g., IT, engineering). The dominant buying pattern is through GSA PSS (Professional Services Schedule) and 8(a) STARS III. Set-asides are heavily used: 8(a), SDVOSB, and WOSB. The single highest-leverage move is to obtain a GSA PSS contract for job placement services (SIN 561-1) and then target DoD via the Joint Enterprise (J-E) IDIQ. Also, register in SAM with the correct PSC (R408) and build relationships with agency HR acquisition teams.
Contracts are typically LPTA for simple placements and best-value for specialized roles. Common vehicles: GSA PSS (SIN 561-1), 8(a) STARS III, OPM's USA Staffing IDIQ, and agency-specific HR BPAs. Evaluation is based on past performance, staffing plan, and price for T&M orders.
No federal license is required, but you must comply with state employment agency licensing laws where you operate. Some agencies may require a surety bond or proof of liability insurance.
Task orders range from $50,000 to $5 million, with average IDIQ ceilings around $50 million. Most awards are for 1-5 years including options.
Yes, many contracts are set aside for HUBZone, SDVOSB, or WOSB, and some are unrestricted. However, 8(a) firms have a distinct advantage on sole-source awards up to $4 million.
The NAPS (National Association of Personnel Services) certification and military spouse or veteran-friendly designations are valued. For IT placements, CompTIA or CISSP certifications help.
Evaluators focus on placement rates, time-to-fill, candidate quality, and compliance with EEO and veterans' preference. Demonstrating a track record with federal HR systems like USA Staffing is critical.