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.
Unlocking Federal Markets: Why Data-Driven Technology is Essential for Government Agencies in FY 25
The integration of artificial intelligence (AI) into federal operations is a cornerstone of government technology priorities for Fiscal Year 2025. At Marion Square, we’ve been closely tracking the federal AI market and uncovering significant trends that indicate where technology investments are heading.
Navigating FY25: How AI Companies Can Capitalize on US Government Priorities
The US Government’s increasing investment in AI represents an unprecedented opportunity for companies willing to align with its strategic priorities. While the road to adoption may vary between agencies, a deep understanding of priorities such as infrastructure, national security, ethics, R&D, and workforce development can set your company up for success in FY25.
The New Phase of AI Governance: Update on AI Executive Order 14110
In October of 2023, the Biden Administration issued an Executive Order aimed at securing the United States’ leadership in the development and deployment of artificial intelligence while ensuring this technology is used responsibly to protect individual privacy and data. This landmark order sets new standards for AI safety and security, upholds Americans’ privacy, promotes equity and civil rights, safeguards consumers and workers, encourages innovation and competition, and reinforces American leadership on the global stage.
Navigating the Government’s Transition to Post-Quantum Encryption: A Strategic Approach
As quantum computing continues to evolve, the security of existing cryptographic systems faces an unprecedented threat. Post-quantum encryption (PQE) is no longer a distant goal; it is a critical, urgent priority. Marion Square has been actively tracking the federal government’s transition to PQE, working closely with both technology companies and government agencies to ensure a smooth and secure transition.
Federal mandates such as NSM-10 and OMB 23-02 have set the course for agencies to begin their PQE journeys. The stakes are high, and failure to meet these mandates could expose critical systems to quantum-enabled adversaries. According to the recent OMB report to Congress, the government is expected to spend approximately $1 billion annually over the next decade on this transition, though many experts predict the true cost could be much higher.
US Government Preparing for the Post-Quantum Era: The Opportunity for PQE Technology and Services Vendors
Marion Square is actively working with our partners and clients to understand and map the requirements Federal Agencies have for transitioning to Post Quantum Encryption (PQE). For PQE technology companies, this transition presents a unique opportunity: a growing market with billions in potential federal contracts.
Market Update: Artificial Intelligence
Marion Square is continually researching Government initiatives and programs to identify key opportunities for our clients. For those organizations that are focused on providing AI algorithms, infrastructure, and services an interesting, potential opportunity for FY 25 is the Dept of Energy’s (DOE) -Frontiers in Artificial Intelligence for Science, Security, and Technology- or FASST initiative.
Unlocking Federal AI Opportunities in FY 2025: Navigating the Two-Tiered Approach to Maximize Success
As Artificial Intelligence (AI) becomes an engine driving innovation across industries, its role in the Federal government is accelerating at an unprecedented pace. With FY 2025 federal funding poised to fuel AI initiatives across all agencies, it’s clear that AI has transcended from being a technological trend to a national priority.
Understanding and strategically leveraging this tiered structure will be crucial for companies looking to accelerate their go-to-market (GTM) strategies and secure contracts that matter.
Market Update: Post Quantum Encryption
With the recent release of the NIST Post Quantum Encryption (PQE) standards (NIST Releases First 3 Finalized Post-Quantum Encryption Standards | NIST) we at Marion Square anticipate there will be a focus from Federal Agencies in FY 25 to become compliant with the White House Executive Order and National Security Memo for Post Quantum Cryptography.
The Rise and Importance of Open-Source Intelligence (OSINT)
According to market analysis the space is large, around $7B today, and is expected to grow at 28% CAGR annually thru 2030 when the market will be approximately $36B. Global Open Source Intelligence Market Size $36,241.2Mn 2030 (custommarketinsights.com) Law Enforcement followed by Government Intelligence Agencies and Defense Intelligence Agencies are by far the largest customers for OSINT technologies.
Preparing for PQE
Prepare for PQE: M-23-18 (whitehouse.gov)- June 2023
• Ensure that requirements under:
o NSM-10-US becomes a leader in QIS while mitigating risks to systems vulnerable to Cryptographic Resistant Quantum Computer. )CRQC)
o M-23-02-provides guidance on transitioning to PQE
o NMM-2022-09- outlines Zero Trust Security principles
are made transparent in FY 25 Budget submissions.
How the Federal Government is Shaping the Standards for Quantum
You are going to hear more and more about Quantum in the coming months and years, more specifically mandates and orders regarding Quantum and Post Quantum Encryption. The latest estimates are that a viable Quantum Computer which can crack the current encryption algorithms (RSA, Elliptical Curve, Diffie Hellam) could be less than 10 years away and with transition times (from existing solutions to Post Quantum and Quantum solutions) estimated at between 5 and 7 years the Federal government is beginning to take notice of the risks Quantum Computers pose to national security.
Determining your Total Addressable Market (TAM) for Government - IQT Webinar Recap
Late last year, I had the opportunity to participate in an In-Q-Tel (IQT) webinar and present the concept and value of determining the Total Addressable Market (TAM) for Government to IQT portfolio companies. In the commercial space, the TAM is everyone/every organization that a company could potentially sell to, the TAM we at Marion Square have developed for Government, takes this to a more detailed level. Since Government agencies are strictly confined by their budget cycles and certification requirements (think FedRAMP) we believe organizations should take these items into consideration when developing their TAM.
Taking Care of Big & Small Vendors: Carahsoft’s 3rd Annual Marketing Summit
Marion Square attended Carahsoft’s 3rd Annual Marketing Summit on November 1st, 2023. Co-Founder and CEO Harvey Morrison presented with Carahsoft’s Vice President, Mike Shrader to discuss best practices for both large and small vendors looking to sell to the Federal Government.
What Should you do to be Productive during a Government Continuing Resolution (CR)?
The overarching theme around a CR to keep in mind is that CR's reduce the amount of time an agency has to complete a solicitation. Instead of a 12 month window to conduct market research, identify contracting vehicles and approaches to procurement, meet with vendors, etc agencies timeframes are compressed. If the FY 24 budgets aren't approved until Dec (which is the current consensus) then agencies will only have 9 to 10 months to complete their work or risk loosing their funding at year end.
AI/ML Federal Market Overview
The FY 24 budget includes $210B for federal research and development (R&D), this is the largest ever investment for Federal R&D.
Artificial Intelligence R&D is a main focus area for FY 24 investment with several agencies requesting $1B to fund AI research projects and programs in areas such as:
• Facial recognition technology
• Drone systems
• Systems to analyze large amounts of data
• Cyber Security
Quantum Information Science (QIS) Federal Market Overview
• Post Quantum Cryptography is becoming a focus area with the release of May 22nd National Security Memo- initial standards are being released by NIST. Though the FY 2024 budget request sees several investments in advancing quantum computing R&D, contractors will begin to see funding and needs in cyber budgets for PQC transitions as early as FY 2025.
FY25 Federal Cyber Priorities
The US Government is signaling its future cyber priorities with a recently released OMB Memo M-23-18 "The Administrations Cyber Priorities for FY 25" M-23-18 (whitehouse.gov). The memo instructs Federal Agencies to prioritize budgeting/funding around the key initiatives specifically outlined within the memo. In reading the memo, one will notice that several of the priorities are a continuation of funded initiatives that are currently going through the budget approval process as part of the FY24 budget.
The Fiscal Responsibility Act (FRA) and how it Effects Government Spending
Over the last couple of months there has been quite a bit of news regarding the recently passed Fiscal Responsibility Act (FRA) which raised the US Government debt limit until Jan 1 2025. Vendors who sell to the US Government are wondering what effects this bill will have on Federal spending in the coming years and how best to plan and execute their Government go to market sales strategies.
Data Analytics: A Key Focus Area for FY2024
At Marion Square, we continually research and analyze Federal Agency IT budgets and key spend priorities for our clients. This time of year, is especially busy because agencies have begun releasing and justifying their budget requests for FY24. This information provides organizations selling into Government with critical insights into key Government spending priorities and trends for the upcoming fiscal year, which is only 5 months away.