Pricing Isn’t Enough: Why Federal Tech Vendors Need to Show Value, Not Just Cost
Author: Harvey Morrison
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.
The message from government buyers is clear: don’t just show us what it costs show us what it saves, what it improves, and how it helps us do more with less.
The Shift to Outcome-Based Procurement
In the past, many federal agencies purchased software, platforms, and tools based on compliance checkboxes and lowest price. Today, they're under increasing pressure to demonstrate value to taxpayers, deliver measurable mission outcomes, and consolidate redundant technologies.
GSA’s OneGov strategy is already yielding major savings by negotiating enterprise-wide pricing. Google Workspace, for example, is now offered at a 71% discount governmentwide. But these deals aren’t just about cutting cost they're about aligning technology to mission outcomes, usage models, and measurable ROI.
Why Traditional Pricing Falls Short
Many vendors still lead with static rate cards and feature lists. But price alone no longer seals the deal. Procurement officials want:
Demonstrable cost avoidance (eliminating duplicative tools or manual labor)
Clear time savings (automating repetitive processes)
Quantified risk reduction (faster compliance, stronger cybersecurity posture)
Strategic alignment with federal initiatives (Zero Trust, post-quantum encryption, AI modernization)
If you can’t quantify your value, your competitor will.
What Federal Buyers Expect Now
To remain competitive, vendors must rethink their approach to pricing and value demonstration. This includes:
ROI Models: Show return on investment over 1, 3, or 5 years
Value Calculators: Let agencies plug in their data to project savings and outcomes
Tiered Pricing: Offer packages based on agency maturity, usage levels, or mission alignment
Outcome Framing: Translate product features into mission impact: faster reporting, fewer audit findings, better resource utilization
This shift mirrors the private sector’s emphasis on value-based selling but now with a federal twist, shaped by transparency mandates and fiscal accountability.
How Marion Square Can Help
At Marion Square, we work with technology companies to reposition their federal sales motion around value, not just features or compliance. We help you:
Build federal-aligned ROI calculators and cost-avoidance models
Translate technical capabilities into mission-driven impact statements
Develop tiered pricing strategies that reward agency investment and adoption
Align your messaging with OneGov, DOGE, PMA, and agency-specific priorities
Whether you’re selling cybersecurity, cloud infrastructure, AI/ML tools, or data platforms, we can help you craft a business case that resonates with today’s federal buyer.
It’s Time to Sell Smarter Pricing isn’t going away but it’s no longer enough. Agencies are buying outcomes. They want to know how your solution saves money, accelerates performance, and reduces complexity. If your proposal doesn’t speak to those priorities, you risk being left behind.