Every now and then one of my clients has the opportunity to pursue a deal with the government. It does not matter whether it is the local government, state or federal but I always ask them the same thing: have you done this before? I mean, have you worked with bureacrats before.  If they have not (and most of them have not) then I often caution them to walk away.

Government entities rarely have the impetus to make it a timely decision or cost effective for you to pursue the opportunities.  Typically, they put things out to bid, and expect each bidder to answer their hundreds of questions which in the end they will pick whomever is cheapest and can fulfill the requirements to the minimum.  The cost in pursuing these deals often eclipses the profit gained. 

Unless the bid request is something you can fill out easily, or you have the time, the infrastructure, and the fortitude to jump though many hoops, I recommend you shy away from government deals.  However, once you do get the deal, there are two distinct advantages. Very few other companies will want to jump through the same hoops to get that deal from you, and since you now have the experience (and the documentation) you can pursue other government deals.

You can make money off of government deals… but it will cost you.