When to Expect Your First Federal Contract
A question we at Marion Square get asked often is “when can I expect my first Government sale to close?”. This answer to this question has many ‘depends on’ factors, but overall, the realistic expectation to closing your first Government sale could be anywhere from 3-18 months (or more) once you’ve executed your sales plan. The Federal sales process is more complex than the commercial sales process, leading to a longer closing timeframe. Let’s discuss the factors you should consider when putting together your sales plan and mapping your pipeline:
Doing Your Research
Market research is essential to creating a successful Federal GTM –
Knowing which agencies are purchasing your technology
Knowing which agencies are budgeting for your technology
Are there any recent RFIs or open RFPs or RFQs?
Who are the primes on the recently awarded contracts?
Are there current funded initiatives?
The best approach to pursuing Government work is to have a well-defined sales plan based on actual market data, providing proper insights and intelligence to guide decisions and actions.
Federal Budget Process and Timeline
It’s important to understand how the Federal Government budgets and when they spend money – this plays a huge role in the timing of contract awards. Since the Government’s FY 2024 ends on September 30th, now is the time to begin getting in front of agencies and making them aware of your value proposition and the problem you solve, so they can budget your technology into either the FY25 budget (since it has not been approved yet) or the FY26 budget.
A Continuing Resolution (CR) is typically expected each year and anticipated this year as well especially since it’s an election year. During a CR, agencies can’t purchase anything new, they can only pay to keep current programs moving (some agencies completely shut down).
Innovation Funding Opportunities
Sometimes innovation and grant funding can lead to a quicker award because there is a defined application process, review process and award process. If awarded, you now have a contract vehicle for agencies to purchase from and past performance and funding if awarded is usually timely. There are several innovation funding routes to pursue depending on your technology, including:
Small Business Innovation Research program that eleven agencies participate in and roughly $2.5B is awarded each year. Examples include the National Seed Foundation and AFWERX
Department of Homeland Security (DHS) Science and Technology (S&T) Directorate
Setting Realistic Expectations
At Marion Square, we believe a successful Government sales strategy is built on in-depth market research and analysis. Understanding which Government initiatives and programs are critical, funded, and have compelling timelines can be the difference between a pipeline of qualified deals that are closing and generating revenue versus having a multitude of meetings leading to no real opportunities.
Having detailed knowledge of Government wide and Agency initiatives, budgets, and contracting processes enables an organization to focus their time and resources in the areas that will yield the greatest results in the shortest time, dramatically improving and organizations sales effectiveness and predictability of their Government sales opportunities. Marion Square’s Federal Market Assessment engagement provides key market insights needed to create a successful Federal GTM.