The $92 Billion Federal AI Gold Rush: Why Your "One-Size-Fits-All" GTM is Failing
At Marion Square we have been following the Federal AI market very closely, not that the FY 27 Budget Requests have been released, I wanted to share some perspective for both our AI vendor partners and the market in general.
The federal AI market in 2026 is no longer a playground for speculative pilots; it has transformed into a massive, operational machine. For vendors, the opportunity is staggering: potential award values for AI contracts have surged to nearly $92 billion, a nearly 2,000% increase from just two years ago.
The Trillion-Dollar Pivot: Why Your FY 2027 Federal Strategy Must Be Laser-Targeted
The Presidents fiscal year 2027 budget request has arrived, and it marks a historic shift in how the U.S. government intends to spend taxpayer dollars. For companies looking to partner with the federal government, the headline is clear: overall defense spending is surging to unprecedented levels, while non-defense federal spending is being aggressively leaner.
The Federal Quantum Strategy is Real. Execution is still Emerging.
A recent report from the U.S. Government Accountability Office provides a useful and overdue assessment of where the federal government actually stands on quantum.
The conclusion is not that the United States lacks strategy or commitment. In fact, the opposite is true. Federal investment, policy direction, and research activity around quantum technologies have been sustained and deliberate.
The issue, as the report makes clear, is that this strategy has not yet been translated into a consistent, government-wide execution model.
Post-Quantum Cryptography is no Longer a Future Problem - The Federal Market is Already Moving
Most discussions around post-quantum cryptography (PQC) still frame it as a long-term concern something to monitor, plan for, and revisit in a few years.
That framing is now outdated.
Start Small. Prove Fast. Scale Deliberately. Why Software Vendors Must Rethink Packaging Under the Warfighting Acquisition System
For years, selling software into the federal government often meant pursuing a large program opportunity, negotiating a broad deployment, and structuring a multi-year agreement from the outset. Even when pilots were used, they were often treated as stepping stones toward immediate enterprise adoption.
The Portfolio Manager Is New and It Changes How Software Vendors Must Scale Inside DoW
This post is Part Two of a Marion Square blog series examining the Department of War’s shift to the Warfighting Acquisition System and what it means for commercial technology vendors.
The new acquisition strategy responds to this reality by introducing something DoW did not previously have in a formal, empowered way: portfolio level ownership of digital and software capabilities.
That is where the new Portfolio Manager role comes in.
Funding Uncertainty, Clear Opportunity: Navigating the FY 26 Federal Budget Maze
The headlines are all about gridlock: the Senate racing to pass a three-bill “minibus,” the House waiting for the green light, and another short-term continuing resolution (CR) keeping the lights on only through January 30. It’s tempting to read this as a signal for technology companies to pause their government efforts.
That would be a mistake.
While Washington wrestles over process, the underlying mission priorities driving government IT, cybersecurity, and AI investments haven’t changed. Agencies are still under binding mandates from Zero Trust and post-quantum encryption to AI governance and data modernization that require continued action regardless of the budget dance on Capitol Hill.
At Marion Square, we see this as one of the best times to be positioning for growth.
Navigating Government Shutdowns: A Contractor’s Guide with Marion Square
When Congress fails to pass funding legislation, the federal government officially shuts down. For federal contractors, a shutdown introduces a period of significant uncertainty, affecting ongoing projects, payment schedules, and future business opportunities.
FY26 is Around the Corner: Why Tech Companies Need to Act Now to Win in Government
The federal government’s FY26 budget cycle begins October 1st, and agencies are already shaping acquisition plans. Billions are being directed toward AI, cybersecurity, post-quantum readiness, infrastructure, and defense making this one of the largest opportunities yet for technology companies
Whether you’re already working with federal agencies or just starting to explore the market, the message is clear: the time to act is now.
The Senate Proposes National Quantum Cybersecurity Strategy: What It Means for Your Organization
On August 6, 2025, Senators Gary Peters (D-MI) and Marsha Blackburn (R-TN) introduced bipartisan legislation that could significantly accelerate the nation’s migration to post-quantum cryptography (PQC). The bill, known informally as the National Quantum Cybersecurity Strategy Act, underscores a growing federal urgency: quantum computing is no longer just a research milestone it’s a looming cybersecurity disruptor.
For technology providers, government contractors, and agencies alike, this legislation represents both a challenge and a market defining opportunity.
Post-Quantum Discovery & Inventory: Navigating Options for Compliance and Action
As federal agencies accelerate their timelines for post-quantum encryption (PQE) readiness under NSM-10, OMB M-23-02, and forthcoming FIPS 140-3 mandates, a foundational requirement is completing a comprehensive cryptographic inventory and discovery process. However, how agencies get there and what tools or partners they use can vary widely. In this timely webinar, co-hosted by Marion Square and Square Peg Technologies, we broke down the evolving landscape of PQE inventory requirements and provided a practical guide to the approaches agencies are taking to meet them.
Webinar recording from July 24, 2025
The Federal Government Is Spending-Here’s How to Position for FY26 Funding Now
If you're in AI, cybersecurity, infrastructure, or defense tech and still sitting on the sidelines of the federal market, now is the time to move. A recent Financial Times article called attention to the surge of interest and investment in defense tech start-ups. But the trend goes far beyond drones and weapons systems. It’s a signal that the U.S. government is actively buying, planning, and modernizing and the window for engaging in FY 26 is already open.
FY26 Budget Status: What You Need to Know
As of July 21, 2025, the federal Fiscal Year 2026 budget has not been fully passed. While both chambers of Congress have made substantial progress on individual appropriations bills, the complete budget package awaits final approval. FY2026 officially began on October 1, 2025, creating pressure for lawmakers to finalize funding or resort to temporary measures.
How Smaller Software Vendors Can Align with GSA's OneGov Strategy
GSA's OneGov initiative is reshaping how the federal government buys IT software and while the spotlight is currently on major vendors like Google, Adobe, and Salesforce, the implications extend far beyond the big players.
Pricing Isn’t Enough: Why Federal Tech Vendors Need to Show Value, Not Just Cost
Federal IT spending continues to grow, but how agencies choose technology partners is changing fast. GSA’s OneGov initiative and the Department of Government Efficiency (DOGE) mandate are redefining what it means to be a competitive vendor in today’s procurement landscape.
Aligning Sales Strategies with DOGE Priorities: Navigating the New Federal Marketplace
The federal buying landscape is undergoing a fundamental transformation. With the rise of the Department of Government Efficiency (DOGE), agency decision-makers are now laser-focused on one thing: results. Features and functionality alone no longer win contracts — vendors must clearly demonstrate how their solutions drive measurable business outcomes aligned to mission priorities.
SWIFT Is Here: What DoD’s New Software Acquisition Model Means for Vendors – And How to Win
One of the most important developments in recent years arrives this week: the Department of Defense's formal launch of SWIFT the Software-Initiated Fast Track.
Backed by the Office of the DoD CIO and spearheaded by Katie Arrington, SWIFT is designed to radically accelerate the acquisition and deployment of commercial software across the Department. More than a program, SWIFT represents a shift in philosophy – one that software companies must understand and adapt to if they want to stay competitive in defense.
Quantum Momentum in Washington: Why Now is the Time for Quantum Tech Companies to Engage with the U.S. Government
Since 2018, federal quantum funding has grown steadily year-over-year from just over $400 million in FY19 to nearly $1 billion in FY23. This surge is anchored by the National Quantum Initiative Act (NQIA), which authorized over $1.2 billion in its first phase to support national labs, academia, and private-sector collaboration.
What a Full-Year CR Means for Technology Companies
On March 15, 2025, President Trump signed a full-year Continuing Resolution (CR) into law for Fiscal Year (FY) 2025, a move that significantly impacts various sectors, including technology companies. This legislation funds the government at FY24 enacted levels through September 30, 2025, accompanied by notable increases in defense spending and reductions in non-defense allocations. For technology companies working with or adjacent to government programs, this CR brings both opportunities and challenges.
Understanding Budget Reconciliation and Its Impact on Selling to the Government
Budget reconciliation is an internal tool that Congress uses to adjust revenue and spending but does not directly fund government operations. The real impact for vendors comes from the appropriations process, which determines actual agency budgets and purchasing power. Understanding where we are in the process helps you better time your federal sales efforts and align with government priorities.