The United States Federal Government – A Viable Customer For Foreign Companies COPYRIGHT
2009 v.2 ©
The US Government is the largest purchaser of goods and services in the WORLD spending over $400 Billion annually. This figure does not take into consideration the 2009 American Reinvestment and Recovery Act / Stimulus Funding. The government purchases everything from products to services including IT services to law enforcement equipment and office supplies.
The US Government fiscal year runs from October 1 – September 30. Although selling to the government is not recession-proof, it is a great way to mitigate risk and diversify your client base. Budgets are set in advance and normally follow buying patterns, such as a spike in purchases during the fourth quarter. Government works on a “Use it or lose it” fiscal policy, so July, August and September are the three months where the Procurement Officers are utilizing remaining funding. These procurements are fast and furious and most likely end up in the hands of the contractors who have the relationships and are viewed as “solution providers” and “partners”.
Every vertical market has their nuances and so does business-to-government, or B2G. A high level sale in any sector is usually the result of a relationship, although some companies are lucky. Because the government is a risk-adverse client, the importance of the relationship and trust-building is increased. Having a physical presence in the