Selling to the government is not as simple as selling to a single entity. The federal government is comprised of various agencies and departments, each with their own unique needs and priorities. In order to successfully sell to the government, it is important to understand this complex ecosystem and target specific agencies and functions.

The size of the federal market can be misleading. While the government spends about half a trillion dollars annually on goods and services, this includes everything from vacuum cleaners to supercomputers. The annual spending on information technology (IT) is estimated to be around $80 billion, but this figure does not include the intelligence community IT budget or spending by quasi-governmental organizations.

Federal agencies have a purpose for existing and rely on IT systems to accomplish their missions. They also have their own IT shops for maintaining and defending their networks, managing data centers, and developing systems. Agencies initiate new IT projects in response to mandates from Congress or senior administration officials, and there is a constant push for modernization and efficiency within the government.

The Federal Chief Information Officer (CIO) is a powerful figure in the federal IT landscape, but they do not have direct control over agencies’ IT budgets. The CIO’s main function is to issue policy and influence agency decisions through oversight and budgetary control. However, policy implementation can be challenging, and agencies often have their own priorities and protocols.

Buying decisions in the government are made by contracting officers, who are responsible for ensuring that acquisitions meet procurement regulations. It is important to understand who generates the requirements for IT purchases, as this can vary depending on the agency. While the department CIO may be involved in some agencies, many have delegated authority to other executives or program managers.

Political appointees also play a role in government IT decisions. These individuals are appointed by the administration in power and are responsible for carrying out orders. The relationship between political appointees and career civil servants can sometimes be rocky, as appointees may lack the necessary expertise or experience.

The rise of services contracting has been a significant trend in the federal IT market. The government has increasingly turned to contractors for a wide range of services, and many product companies have added services to their offerings. Traditional consulting companies have also entered the federal market, selling solutions to government clients.

Overall, selling to the government requires a deep understanding of the complex ecosystem and the different factors that influence IT decisions. Building relationships with key stakeholders, understanding agency priorities, and navigating the procurement process are all crucial for success in this market. It is important to approach different levels of the government appropriately and to focus on building bottom-up support rather than relying solely on top-level contacts.

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