I've worked for two companies who would have done business with governments but ended up refusing to do so because the regulatory burdens exceeded the value of the contract.
The first was intel analysis software (DOD contract), and the second was in mental health (medicare and state medicaid contracts). In the first case, they even considered hiring a company who exists solely to help other companies navigate the government procurement process.
> The first was intel analysis software (DOD contract), and the second was in mental health (medicare and state medicaid contracts). In the first case, they even considered hiring a company who exists solely to help other companies navigate the government procurement process.
Indeed. You can get a FedRAMP AWS account pretty easily but I've been told that getting a FedRAMP Moderate environment for production use is a year-long, half-million-dollar project. On top of this you have to continuously deal with the Joint Approval Board (JAB) and Third Party Assessment Organization (3PAO) for any non-trivial changes to information flow or infrastructure. As a kicker the Cost Plus Fixed Fee (CPFF) and Time & Materials (T&M) contracts that are so prevalent in the space mean that your upside is limited and you have to do stuff like get your employees' resumes approved by the government before you can bill for their time.
I don't blame anybody for taking a look at this and saying "not for me".
The first was intel analysis software (DOD contract), and the second was in mental health (medicare and state medicaid contracts). In the first case, they even considered hiring a company who exists solely to help other companies navigate the government procurement process.