The "land and expand" strategy in federal contracting involves winning an initial bid and performing well. This builds trust, leading agencies to offer additional, often unlisted projects directly, bypassing the competitive public bidding process for smaller contracts under a certain threshold.
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Prepared tackled the slow GovTech market by providing its initial product for free. This strategy bypassed cumbersome procurement, built a large user base, and established the credibility needed to overcome the authority of entrenched, larger competitors.
To overcome the construction industry's conservatism, Monumental operates as a subcontractor. This model is easier to sell than a large capital expenditure like a robot, as it fits existing project budgets and workflows, de-risking adoption for general contractors.
Eric Coffey broke into government contracting by partnering with existing businesses. He managed the complex bidding process for them in exchange for a percentage of the contract, leveraging their history and workforce to win bids he couldn't have secured alone.
The government's procurement process often defaults to bidding out projects to established players like Lockheed Martin, even if a startup presents a breakthrough. Success requires navigating this bureaucratic reality, not just superior engineering.
Federal agencies are more reliable clients than state or local governments because they can print money to cover debts. State and local entities often have balanced budget requirements and can face shortfalls after disasters, risking non-payment on fulfilled contracts.
Tech companies often use government and military contracts as a proving ground to refine complex technologies. This gives military personnel early access to tools, like Palantir a decade ago, long before they become mainstream in the corporate world.
In the public sector, the goal is not to outcompete rivals but to improve service delivery. A government CPO's version of competitive research involves talking to counterparts in other states, partnering with civic tech organizations, and learning from innovative vendors to understand best practices.
The buying committee is larger than just the key contacts sales engages. Hidden influencers, particularly in procurement, play a crucial role. If they have no brand awareness or trust in your company when the deal reaches their desk for final approval, they can single-handedly block it.
Challenging the myth of slow government procurement, the Department of Energy completed an eight-figure software deal with a brand new vendor in just five weeks. This speed was possible because the vendor presented a strong ROI and a solution to an urgent, high-level problem, proving that bureaucracy can move fast for clear priorities.
Despite the high cost of distribution, OpenGov's success relied on a high-touch, in-person sales strategy. The team would show up with donuts, meet everyone in town, and build deep relationships, even for small initial contracts.
