During our federal sales seminars a predominant question from attendees is: "Is the federal playing field level?" The answer to this question is yes, in theory, but no in practice. The federal market is open to a degree but in a much different way than most people outside the market understand.

The Federal Acquisition Regulation (FAR) contains the rules that federal procurement personnel must follow when buying products and services. The rules have been gradually loosened and made more realistic in the past ten years. Contracting officers have more latitude than under earlier rules. While federal agencies publicly embrace full and open competition, the government would grind to a halt if that were the reality.

Federal buyers are charged with the task of getting the best value for the taxpayer. Depending on the situation, getting the best value does not always mean encouraging competition. The commercial sector would not operate efficiently if it bought everything using full and open competitive purchasing procedures and the federal government is no different.

Buying services and solutions is inherently less competitive than buying a product because of the many risk factors involved and the need for the customer to understand what they are buying. The federal government has always experienced problems with the lack of competition in buying services and solutions. It is the same in the commercial sector because buyers are purchasing an intangible at considerable risk. Would you take the lowest bid for heart surgery?

Products that have defined features and benefits, like toner cartridges, laser printers, and computer monitors, lend themselves to competitive procurements. Products based on complex technologies with many optional features and capabilities -- commercial off-the-shelf software, scientific computers, network routers -- tend to be less competitive.

This article is an excerpt from the new book "Rolling the Dice in DC". The book is written for managers and sales people and describes the day-to-day dogfight of competing and winning in the federal market. Read this book if you want to know the good, bad, and the ugly of the federal market, what it takes to enter the market, and the potential returns.