Government contract arbitrage is winning a government contract as the prime, then hiring a subcontractor to do the work. You find the solicitation, get a sub's quote, add your margin and submit the proposal; if you win, you manage the job and keep the difference.
It's how Mayo won [40+] contracts in about two years without doing the labor himself. It's simple to describe and hard to do consistently, which is why most people who try it stall at zero wins, or at one.
Agencies post what they need on SAM.gov for federal work, and on their own portals for state and local. Thousands are open at any time, from janitorial and maintenance to construction and products.
You find a licensed company that does the work, mostly by searching and calling. Many subs are glad of government work once they hear it's a signed contract paid Net 30.
The sub's quote plus your margin is your price. The proposal shows that price and, when asked, past performance and how the work will be done.
If you win, you manage the job: kickoff with the sub, coordination, sign-off and invoicing. The government pays Net 30 and the sub is paid what they quoted.
A one-time maintenance job at a federal site, awarded on lowest price
The licensed company that does the work on site
For finding, pricing, managing and invoicing the job
Net 30 after the work is accepted; the sub is paid from it
| Contract | A one-time maintenance job at a federal site, awarded on lowest price | $100,000 |
|---|---|---|
| Sub's quote | The licensed company that does the work on site | $82,000 |
| Your margin | For finding, pricing, managing and invoicing the job | $18,000 |
| Paid | Net 30 after the work is accepted; the sub is paid from it | ~30 days |
| Illustrative: $18,000 on one $100,000 contract. | ||
Margins vary widely. The skill is choosing contracts where a bid low enough to win still leaves a profit, and putting enough of them out every month.
The one hard requirement. No experience, certifications or clearance needed.
Free. It gives you the UEI and CAGE code you need to bid on federal work.
Enough to find contracts in batches, call subs and get 20 to 25 proposals out a month. A 9-to-5 is fine.
For deposits and the gap before the government pays. Usually less than people fear, because subs are paid from Net 30 receipts.
Week 1
Your income goal becomes a weekly bid target with daily time blocks that fit your life. Your CRM is set up the same week.
Weeks 2–3
Your bid/no-bid strategy is built with Mayo on a 1:1, then turned into a custom AI prompt that applies it to SAM.gov for you.
Weeks 4–5
Calling subs, getting quotes, and the first proposals out the door, reviewed before you submit.
Weeks 6–10
Hitting your weekly bid target on your own schedule, then running the whole system yourself, ready for the award.
Yes. Primes subcontracting work is normal in federal contracting. The prime finds the work, prices it, manages it, invoices it and is responsible for it; that's the value it adds. You name your sub in the proposal and sign a subcontractor agreement before work starts. Small-business set-asides carry limits on how much can be subcontracted (the "51% rule"), so you read which rules apply to each solicitation before you bid. [REVIEW: Mayo and counsel to confirm this wording.]
It's a signed government contract, paid Net 30 once the work is accepted. Mayo has never won a contract and not been paid; the slowest payment was on day 34.
Yes. Many solicitations don't ask for it, and where they do you can use transferable experience and your sub's past performance. Set-asides help too.
A 45-minute Zoom call with Mayo about where you are and what's holding you back. If the program isn't the right fit, he'll say so.
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