Key takeaways
- The federal government invests more than $100 billion in IT each year, and GAO keeps IT acquisition and management on its High-Risk List (2025 update, released January 23, 2025).
- Common ways agencies buy SaaS: GSA MAS SIN 518210C, GSA MAS SIN 511210, GSA MAS SIN 54151.
- Rules to plan for: FedRAMP, GovRAMP (formerly StateRAMP), TX-RAMP (Texas).
- A contract vehicle or vendor registration makes buying easier, but it doesn't create demand. The vendors that win reach program owners before budgets and bids are set.
Who buys SaaS in government
Purchases of SaaS happen across federal agencies, states, counties, cities, school districts and colleges, hospitals, tribal governments, special districts and public utilities. The people you'll deal with usually include:
- Federal agency CIO and CTO offices, and program offices that own a mission system
- State CIO offices and central IT agencies (for example, Texas DIR)
- County and city IT directors, plus department heads in finance, HR, permitting, public works and clerk offices
- K-12 district technology directors and higher ed IT, registrar and finance offices
- Chief information security officers who review cloud security packages
- Purchasing agents, procurement officers and contracting officers who run the buy
- Utility and special district IT and operations managers
The purchasing office runs the process, but the program owner who has the problem usually decides what gets bought. Reach both. See government buyer roles for how they work together.
The government SaaS market
- The federal government invests more than $100 billion in IT each year, and GAO keeps IT acquisition and management on its High-Risk List (2025 update, released January 23, 2025). (GAO press release on GAO-25-107852, IT Acquisitions and Management High-Risk update (2025))
- FedRAMP issued 131 Rev5 authorizations in fiscal year 2025, plus 13 FedRAMP 20x authorizations (from 27 submissions) since May 2025. At the start of FY25, only a little more than 350 cloud services had completed FedRAMP in 13 years. (FedRAMP blog, 'FedRAMP built a modern foundation in FY25 to deliver massive improvements in FY26' (September 30, 2025))
- NASPO ValuePoint's new Cloud and Software Solutions portfolio became active September 16, 2026 with 58 suppliers (26 incumbents), and runs to September 15, 2036. (NASPO ValuePoint, Cloud Solutions 2016-2026 portfolio page (2026 update))
How agencies buy SaaS
Small purchases under an agency's threshold can often be made with a quote or a purchase card. Larger purchases need a formal bid or an existing contract. These are the contract vehicles agencies commonly use for SaaS:
| Contract vehicle | What it is |
|---|---|
| GSA MAS SIN 518210C - Cloud Computing and Cloud Related IT Professional Services | The main GSA Schedule SIN for SaaS, IaaS and PaaS that meet the NIST cloud definition, plus related labor. Eligible for state and local cooperative purchasing. |
| GSA MAS SIN 511210 - Software Licenses | For software that is not delivered as a cloud service (for example, licensed or installed software). Eligible for cooperative purchasing. |
| GSA MAS SIN 54151 - Software Maintenance Services | For maintenance and support of licensed software. Eligible for cooperative purchasing. |
| NASPO ValuePoint Cloud and Software Solutions (successor to Cloud Solutions 2016-2026) | Multi-state cooperative contract led by Utah covering SaaS, IaaS and PaaS; states join through a Participating Addendum. |
| NASA SEWP VI | Government-wide acquisition contract (GWAC) for IT, communications and AV products and services, open to all federal agencies; SEWP VI launched in November 2026 with a ten-year period. |
Thresholds differ by state and agency; see our state procurement thresholds. For which cooperatives cover which categories, see cooperative contracts by category.
Rules and requirements for selling SaaS
| Requirement | What it means for you |
|---|---|
| FedRAMP | Federal executive agencies must use the FedRAMP process before putting any SaaS, IaaS or PaaS into production, so a cloud vendor needs a FedRAMP authorization (or a path to one) to sell broadly to federal agencies. |
| GovRAMP (formerly StateRAMP) | A nonprofit program that sets cloud security requirements, with third-party verification, for state, local, tribal and education governments; many of these buyers ask for GovRAMP status in bids. |
| TX-RAMP (Texas) | Texas state agencies, universities and public community colleges can only contract for cloud computing services that hold TX-RAMP certification; FedRAMP or StateRAMP authorization can be used as evidence. |
| Section 508 accessibility | Federal agencies must buy accessible technology, so software vendors are expected to provide an Accessibility Conformance Report (ACR), usually built on the VPAT template. |
| CISA Secure Software Development Attestation | Software producers selling to federal agencies must attest that they follow secure development practices, using CISA's common form submitted through its Repository for Software Attestations and Artifacts. |
| CJIS Security Policy (law enforcement data) | If your SaaS stores or touches criminal justice information for police, courts or corrections, you must meet the FBI CJIS Security Policy and sign the CJIS Security Addendum. |
Requirements vary by agency and contract. Read each solicitation's terms, and check with the buyer when in doubt. This isn't legal advice.
Buying signals to watch
These events often mean an agency will buy SaaS soon:
- A legacy or on-premise system is reaching end of support, or the incumbent contract is in its last option year
- The agency posts an RFI, sources-sought notice or market research request for a cloud replacement
- A new CIO, IT director or department head takes over, often followed by a technology review
- A cooperative contract the agency uses is expiring or being replaced (for example, NASPO ValuePoint moving from Cloud Solutions to Cloud and Software Solutions in September 2026)
- Budget documents or IT strategic plans name a modernization project, or the agency receives grant or modernization funding
For more, see our guide to government buying signals and the contract expirations guide.
A sales process for selling SaaS
- Register. Get into SAM.gov for federal work and each state or local vendor portal you'll sell into. Use our vendor registration checklist.
- Pick your path to purchase. Decide which contract vehicles above fit your target buyers, and whether a reseller or partner already holds one.
- Build the target list. Identify the agencies with the need, the budget and the buying authority, and the people who own the problem.
- Start conversations early. Reach program owners while budgets and requirements are still being written, not after an RFP is posted.
- Follow through to purchase. Help the buyer pick the method, whether a cooperative purchase, quote or formal bid. When a bid comes, use our RFP response guide.
How KSG helps you sell SaaS
Kensington Sales Group runs outbound sales development for companies selling to the public sector. Our SDRs research your target agencies, find the program owners and purchasing contacts, and book meetings for your sales team across Federal, SLED, K-12 and higher ed, healthcare, tribal, special district and utility markets. We also run bilingual English and Spanish outreach across the Western Hemisphere.
For example, we contacted 6,500 public-sector agencies for Dataminr's real-time alerting, generating hundreds of opportunities (read the case study).
See how our outsourced SDR service works.
Sources
- GAO press release on GAO-25-107852, IT Acquisitions and Management High-Risk update (2025)
- FedRAMP blog, 'FedRAMP built a modern foundation in FY25 to deliver massive improvements in FY26' (September 30, 2025)
- NASPO ValuePoint, Cloud Solutions 2016-2026 portfolio page (2026 update)
- GSA MAS SIN 518210C - Cloud Computing and Cloud Related IT Professional Services
- GSA MAS SIN 511210 - Software Licenses
- NASA SEWP VI
- FedRAMP
- GovRAMP (formerly StateRAMP)
- TX-RAMP (Texas)
- Section 508 accessibility
- CISA Secure Software Development Attestation
- CJIS Security Policy (law enforcement data)
Checked November 2, 2026.