Insights

Commercial vs Federal: How are they different?

Pursuing business with the federal government is not like pursuing a commercial customer. Government contractors must navigate a complicated landscape of regulations and compliance requirements.  Most government purchases are subject to the Federal Acquisition Regulation (FAR) and may involve government specific contract types and vehicles. One cannot simply have a meeting with a government program manager, take them golfing on the weekend, and win a “handshake” agreement. This type of activity could actually put your federal business pursuit at risk.  

When approaching the federal customer, it’s important to know that many internal and external stakeholders are often involved.  The person who controls the requirement may be different from the person with the money and is certainly different from the person who has contracting authority.  Navigating these stakeholders can take time, which is one of the reasons why the federal government typically has a much longer sales cycle, especially for services. It is not uncommon for large services opportunities to take more than two years to close.  

Once the contract is won, the challenge of implementation remains.  Compliance with government regulations, laws, and ethical norms are not for the faint of heart. Depending on your solution, the dollar value of contracts and other factors, federal contract compliance can be a significant cost.

So…why pursue the federal market?

  • The federal government is a significant buyer.  In FY2023, contract spend was $750B.
  • The government pays its invoices.
  • Wall Street has a favorable view of the federal government as a customer.

Jefferson can help your company grow in the federal space.  Our professionals have strong insights and connections across the federal government and contractor community.  We are are adept at incorporating this knowledge into business development, capture, and go-to-market strategies and tactics.  See more about our Solutions and feel free to connect with us today!

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Commercial vs Federal: How are they different?

Pursuing business with the federal government is not like pursuing a commercial customer. Government contractors must navigate a complicated landscape of regulations and compliance requirements.  Most government purchases are subject...

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