Selling to the Government: They Buy Everything From Paperclips to Spaceships
The government is the largest buyer of goods and services in the world. In Fiscal 2020 government spending (federal, state, and local) accounted for approximately $8.3 trillion, or equal to 40% of the U.S. gross domestic product.
| GOVERNMENT SPENDING | |
| Federal Spending ① | $6.6 Trillion |
| State Spending ② | $1.5 Trillion |
| Local Spending (cities, townships, counties, school districts, and special districts) ② | $1.7 Trillion |
| Total Government Spending | $8.3 Trillion |
That amounts to approximately $23 Billion in spending each calendar day of the year on everything from office supplies to military hardware.
(These numbers will be higher for Fiscal 2021 and 2022 based on projected spending for the COVID-related response and economic stimulus plans.)
There are approximately 500 Federal Agencies and over 90,000 state, local, and educational government agencies employing millions of people across the U.S. This is the largest and most diverse market in the world, as well as your largest prospect for new business.
FedBiz Access works with contractors and organizations to help them do business with governmental agencies by ensuring their registrations are current, complete, and compliant. FedBiz Access has a large database and directory for contracting that is affordable and useful for identifying and competing for government awards. The business development services include targeted market research, set-aside certifications, and GSA Schedule registrations.
FedBiz services help businesses establish their foundation with the federal government, as well as state and local, through their initial registration and certification filings, as well as market research to find the right buyers.
FedBiz Access helps companies build a clear path from registration to award.
Frequently Asked Questions
- 1 How much does the government spend annually on goods and services?
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In Fiscal 2020, government spending (federal, state, and local) totaled approximately $8.3 trillion, accounting for 40% of the U.S. gross domestic product. This amounts to roughly $23 billion in spending each calendar day.
- 2 What types of goods and services does the government purchase?
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The government is the largest buyer globally, purchasing everything from basic office supplies like paperclips to advanced military hardware and spaceships. This makes it the most diverse market in the world for goods and services.
- 3 Which government entities are involved in this spending?
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Government spending encompasses approximately 500 Federal Agencies and over 90,000 state, local, and educational government agencies. This vast network represents a significant and diverse market for businesses.
- 4 How can FedBiz Access help my business sell to the government?
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FedBiz Access assists businesses by ensuring their government registrations are current, complete, and compliant. They offer services like targeted market research, set-aside certifications, and GSA Schedule registrations to help companies identify buyers and compete for government awards.
