# Federal Employee Explores Self-Employed Contracting in DMV

A current GS14 federal employee based in the Washington, D.C. metropolitan area is investigating transitioning into self-employed government contracting with a focus on artificial intelligence (AI) services. This exploration highlights significant legal and ethical restrictions for federal employees bidding on government contracts, particularly those requiring security clearances. Obtaining a Facility Clearance (FCL) is complex and typically necessitates partnerships with entities that already hold clearances. Industry feedback underscores the challenges of entering the market solo without unique capabilities or past performance, given the saturation of cleared IT and AI contractors. Procurement professionals and contractors should note the importance of compliance with ethics rules and the strategic advantage of gaining experience through subcontracting or joining established contractors before pursuing independent contracting ventures.

- Federal employees must consult ethics officials to navigate restrictions on bidding and contracting activities to avoid conflicts of interest.
- Facility Clearance requirements and security protocols present significant barriers for new entrants, emphasizing the need for partnerships with cleared organizations.
- The AI services market in the federal space is highly competitive, with many established companies holding necessary clearances and relationships.
- Procurement planners and contractors should consider subcontracting opportunities or teaming arrangements as pathways to build past performance and clearance credentials before independent contracting.

**Jurisdictions:** federal
**Industries:** Information Technology
**Topics:** Artificial Intelligence
**Published:** September 21, 2026

### Government Entities
- U.S. Federal Government
- Defense Counterintelligence and Security Agency (DCSA)

### Key Quotes
> The industry is flooded with IT and AI companies that already have clearances and relationships, so without unique capabilities or past performance, ROI is very low for new entrants.
> — Anonymous commenter

> If you are a current fed, talk to your ethics personnel before you do anything.
> — Original poster

### Sources
- [Current Fed trying to get into self-employed contracting](https://www.reddit.com/r/GovernmentContracting/comments/1wlxjcd/current_fed_trying_to_get_into_selfemployed) - reddit-governmentcontracting