The federal market can be an alien and confusing world. Many would-be contractors firmly believe that federal bureaucracies are governed by strange and convoluted procurement rules designed to confuse and even intimidate. The market appears big and mysterious from the outside and this creates misconceptions about how federal business is done. The mystery dissolves once you are on the inside and have learned how to play the game.

Companies entering the federal market find that it is essentially the same as the commercial market. You have to find out who buys what you sell, knock on their door, be prepared for rejection if you are unknown to the federal buyers, and then find a way to get around their resistance to newcomers. In the federal market, as in the commercial market, businesses must sell to the end users of the product or service they offer. The difference with the federal market is that it is critical that you have a way to close the sale.

The competitiveness of the federal market is a frequent topic of conversation inside the Beltway because the amount of competition and the rules governing purchasing decisions are critical to how a sale is made. Full and open competition is rare in the federal market. The lack of full and open competition is not an indictment of the federal acquisition system, because in most cases it is not really in the best interests of the taxpayer.

Full and open competition is not cost-effective and inherently lengthens the time required to make a purchase. The goal of the federal acquisition system is to maximize competition consistent with providing best value for taxpayers. That having been said, federal contracting officials and industry representatives are also aware of the need to make the market more open and receptive to outsiders.

The key to market entry is holding a multi-vendor contract like a GSA Schedule as a way to close your sale.

This article is an excerpt form the new book Rolling the Dice in DC". The book is written for managers and sales people and describes the day-to-day dogfight of competing and winning in the federal market. Read this book if you want to know the good, bad, and the ugly of the federal market, what it takes to enter the market, and the potential returns.