You built an educational app that works. Students are learning, teachers are engaged, and your product reviews speak for themselves. Now you're wondering if there's a government market for what you've created.
The short answer is yes. Federal agencies spend billions annually on educational technology. But here's where most EdTech entrepreneurs get stuck: they assume selling to the government means competing for traditional office supply contracts through SAM. That's not how educational software gets purchased.
Who Actually Buys Educational Technology in the Federal Space
Department of Defense Education Activity (DoDEA): This is one of the largest school systems most people have never heard of. DoDEA operates schools on military installations worldwide, serving over 66,000 students across 160 schools. When someone mentions selling to schools worldwide, this is often what they mean, not foreign governments, but American schools operated by the Department of Defense on overseas bases.
Department of Veterans Affairs: The VA runs extensive training and rehabilitation programs. Language learning apps, vocational training software, and educational tools for veterans transitioning to civilian careers all have potential buyers here.
Military Family Support Programs: Military families need the same educational support as everyone else, but they move frequently. Apps that travel with families, provide continuity across school systems, or support homeschooling have particular value in this market.
Agency Training Divisions: Nearly every federal agency has workforce development needs. Cybersecurity training, compliance education, language instruction for foreign service, and technical skills development all require educational technology solutions.
Department of Education: While much federal education funding flows through states to local districts, the Department does directly fund certain initiatives, research projects, and pilot programs that purchase educational technology.
The Section 508 Reality Check
Before you get excited about market size, there's a compliance requirement you need to understand: Section 508. This isn't optional, and it's not something you can fix later.
Section 508 requires all electronic and information technology purchased by federal agencies to be accessible to people with disabilities. For educational software, this means screen reader compatibility, keyboard navigation, captioning for video content, and color contrast standards.
If your app doesn't meet Section 508 requirements, federal agencies cannot purchase it. Period. This isn't a competitive disadvantage. It's a disqualifier.
The good news: if you've built accessibility into your product from the start, you're already ahead of competitors who treated it as an afterthought.
Cloud Products Need FedRAMP
If your educational app is cloud-based, which most are today, you'll encounter FedRAMP: the Federal Risk and Authorization Management Program. FedRAMP provides a standardized approach to security assessment for cloud products and services.
There are different FedRAMP authorization levels based on data sensitivity. Not every educational app needs the highest level, but you'll need some level of authorization to sell cloud-based products to federal agencies.
For defense-related contracts, add CMMC to your compliance checklist. The Cybersecurity Maturity Model Certification establishes cybersecurity requirements for defense contractors. DoDEA contracts typically require CMMC compliance.
How Educational Software Gets Purchased
GSA Schedule 70: This is the primary contract vehicle for IT products and services, including educational software. Getting on Schedule 70 gives agencies an approved way to purchase your product without conducting a full competitive solicitation for each transaction.
Blanket Purchase Agreements (BPAs): Agencies sometimes establish BPAs for educational technology, creating streamlined purchasing arrangements with specific vendors. These often come from GSA Schedule holders.
Government-Wide Acquisition Contracts (GWACs): Contracts like OASIS and Alliant provide vehicles for larger, more complex IT procurements. Enterprise-level educational technology purchases often use these vehicles.
Direct Contracts: Some opportunities come through traditional solicitations posted on SAM. These tend to be for specific projects rather than ongoing software subscriptions.
Entry Strategies That Work
Direct Contracting: Pursue opportunities independently, starting with SAM registration and building relationships with program offices. This path requires more upfront investment but keeps you in control of your positioning.
Reseller Partnerships: Partner with companies that already have GSA Schedules and federal relationships. They handle the contracting complexity; you provide the product. You'll share revenue, but you'll also share the burden of compliance and contract management.
Subcontracting to Education Primes: Large contractors who specialize in federal education programs often need EdTech products to complete their solutions. Becoming a subcontractor gets your product into federal classrooms without requiring you to navigate prime contracting yourself.
What About Past Performance?
Federal buyers want to see that you've successfully delivered similar products before. New EdTech companies face the same chicken-and-egg problem as any new contractor: how do you get past performance when agencies want past performance before they'll give you a contract?
- State and local contracts: Work you've done for state education agencies or large school districts demonstrates capability even though it's not federal.
- Pilot programs: Some federal initiatives specifically seek innovative products from companies without extensive federal track records. Research grants and Small Business Innovation Research (SBIR) programs can provide entry points.
- Subcontracting: Past performance as a subcontractor counts. Working under an established prime contractor builds your federal track record.
Pricing Model Considerations
Government procurement often prefers different pricing structures than commercial markets. Annual subscriptions work better than monthly. Per-seat licensing with volume discounts aligns with how agencies budget. Enterprise agreements that lock in pricing for multiple years appeal to buyers who hate procurement paperwork.
Also, federal fiscal years run October through September. Agencies often have end-of-year funding to spend. Understanding this cycle affects both your sales timing and your contract structuring.
Common Mistakes EdTech Companies Make
Underestimating compliance requirements: Section 508 accessibility and FedRAMP authorization aren't nice-to-haves. Building them in from the beginning costs less than retrofitting later.
Targeting wrong buyers: Assuming Department of Education equals K-12 classroom purchases. Much of that funding flows through states, not directly from the federal government.
Pricing like consumer products: Monthly app store pricing doesn't translate to government procurement. Think enterprise licensing, not consumer subscriptions.
Ignoring the procurement calendar: Federal buyers don't make impulse purchases. Sales cycles are long, and timing matters. Starting conversations in August for end-of-fiscal-year spending is too late.
Skipping SAM registration: You can't receive federal contract payments without an active SAM registration. This takes time to complete, so don't wait until you have an opportunity in hand.
Getting Started
First: Complete your SAM registration. Even if you pursue opportunities through resellers or subcontracting, having an active SAM registration positions you for growth.
Second: Assess your accessibility compliance honestly. If Section 508 gaps exist, prioritize fixing them. This isn't just about federal sales. Accessibility requirements are expanding across all government levels.
Third: Research specific opportunities in your product category. Use SAM to search for past solicitations involving educational software. Understanding what agencies have purchased helps you position what you're selling.
Fourth: Connect with agency program offices. Federal education technology buyers attend conferences, participate in industry days, and respond to capability statements. Building relationships before solicitations post gives you competitive insight.
The federal market for educational technology is real and substantial. But success requires understanding that government procurement operates differently than commercial app sales. The companies that win federal contracts aren't necessarily the ones with the best products. They're the ones who learn how the federal buyer thinks and position their products accordingly.
FAQ
Can my educational app be sold to schools worldwide through federal contracts? Federal contracts through DoDEA serve American schools on military installations worldwide. This is different from selling to foreign governments. DoDEA operates over 160 schools serving military families stationed overseas.
Do I need FedRAMP authorization to sell educational software to federal agencies? If your product is cloud-based, federal agencies will require some level of FedRAMP authorization before purchasing. The specific level depends on data sensitivity and agency requirements.
What's the difference between GSA Schedule 70 and direct contracting? GSA Schedule 70 pre-approves your product for purchase by federal agencies, simplifying transactions. Direct contracting means responding to individual solicitations without that pre-approval in place.
How long does it take to become a federal contractor for educational products? Timeline varies based on your compliance readiness. SAM registration takes weeks. GSA Schedule applications take months. Section 508 and FedRAMP compliance depends on your starting point.
Can I sell to federal agencies without a GSA Schedule? Yes. Agencies can purchase through open market solicitations, subcontracting arrangements, or other contract vehicles. GSA Schedule just makes purchasing easier for agencies.
View full FAQ page: usfcr.com/resources/faq
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