A recent report from the Office of Management and Budget states that federal contract spending in FY 2011 was essentially the same as it was in FY 2010.  According to Federal Computer Week, this is the first time in 13 years that federal spending had either decreased or remained static.  Because of this trend, many companies are cautious about entering the federal market.

Caution may be in order but the market will be back. Lead times in the federal market can range from 6 months to 2 years. For example, obtaining a GSA Schedule to become a vendor with pre-approved prices can take up to a year or more. Consider timing your market entry to coincide with increased contract spending. When will that be? Watch the upcoming presidential race; the shifts in the wind and polls may be pointers.  And you must look at the issue from this perspective. What is the one source of business that one can virtually guarantee will be in existence for many, many years to come. The federal government.  Can you say the same thing about all of your commercial customers?  Probably not.  Let the countdown begin.