When contemplating a sales strategy with the US federal government, most companies focus on identifying opportunities, writing proposals and going on contract with a government agency. However, if your business sells low dollar goods there may be another option for you to consider.
For many companies it will make sense to sell direct to government agencies vs. bidding on existing contract opportunities.
The direct sale of goods to government agencies allows for:
Faster turn around
The ability to easily adjust shipping costs
The removal of some constraints associated with traditional contracts
Many agencies hold Government Purchase Cards (GPC) which allow them to make direct purchases below a certain dollar threshold. These direct purchases avoid the complex contracting process and allow for the immediate purchase/sale of goods and services (certain restrictions/regulations apply to these purchases).
Additionally, there are several government agencies and pseudo-government agencies who do not go through any published contracting source to buy goods. They are typically using government credit cards to make these purchases.
In future articles, I will address the marketing and business development approach to these type of sales. Feel free to reach put with any questions to RichardCharlesHoward@gmail.com