Key takeaways
- US government is many markets: federal agencies, 50 states and 91,438 local governments (2025), each buying separately.
- For federal contracts, international companies need an NCAGE code to register in SAM.gov. Registration is free and must be renewed every 365 days.
- The Buy American Act sets domestic-content thresholds for federal purchases (65% for 2024 through 2028, 75% from 2029), but trade agreements can let products from participating countries be treated as domestic.
- Federally funded infrastructure projects run by states, cities and utilities may fall under Build America, Buy America (BABA).
This guide is general information, not legal advice. Rules change; confirm requirements for your products and contracts with qualified advisers.
How the US public sector is organized
"US government" is not one buyer. It is thousands of independent ones at three levels.
- Federal: departments and agencies such as Defense, Homeland Security, Veterans Affairs and the General Services Administration, buying under the Federal Acquisition Regulation (FAR).
- State: 50 state governments, each with its own procurement office, laws and vendor registration.
- Local: the U.S. Census Bureau counted 91,438 local governments in 2025, including 3,031 counties, 19,489 municipalities, 16,184 townships, 40,199 special districts and 12,535 independent school districts.
State and local government together, often called SLED (state, local and education), is where many international companies find their first US customers, because purchases are smaller and decisions are made closer to the people using the product.
Registering to sell
Federal: SAM.gov
To win federal contracts, a company must be registered in SAM.gov, the federal System for Award Management. For entities based outside the United States, the official quick-start guide sets out the key points:
- International entities must get an NCAGE code before registering in SAM.gov.
- SAM.gov assigns your Unique Entity ID (UEI) as part of registration.
- Registration is free. Be wary of services that charge for it without saying so.
- You must renew every 365 days to stay active.
State and local: vendor registration
There is no single registration for state and local government. Each state, and many cities, counties and school districts, run their own vendor portals and bid notification systems. Our list of state procurement portals links to all 50.
Domestic-content rules
Buy American Act (federal purchases)
The Buy American Act gives preference to domestic products in federal purchasing. The domestic-content threshold for manufactured products is 65% for items delivered in 2024 through 2028, rising to 75% from 2029.
Trade agreements
Under the World Trade Organization Government Procurement Agreement and certain US free trade agreements, the United States gives non-discriminatory treatment to goods from participating countries in covered procurements. The Trade Agreements Act implements this, so in contracts covered by those agreements, qualifying products from those countries can be treated like domestic products. Whether your product qualifies depends on your country, the contract and where the product is substantially transformed.
Build America, Buy America (federally funded infrastructure)
BABA applies to iron, steel, manufactured products and construction materials used in infrastructure projects funded in whole or part with federal money, including projects run by states, cities and utilities. Iron and steel must be made in the US through every manufacturing process; manufactured products must be manufactured in the US with more than 55% of component cost from US components. Agencies can grant waivers for public interest, non-availability or when compliance would raise overall project cost by more than 25%.
How your product gets bought
| Channel | How it works | Good for |
|---|---|---|
| Direct sales | You sell and contract with the agency yourself | Companies ready to register, bid and support customers directly |
| US reseller or distributor | A US partner holds the contract and resells your product | Getting on existing contracts quickly; local delivery and support |
| Cooperative contracts | Agencies buy from contracts already competed by programs like Sourcewell or NASPO ValuePoint, often through a partner that holds the award | Avoiding a separate bid at every agency; see cooperative purchasing contracts |
| US prime contractor | You supply or subcontract to a larger US company that holds the government contract | Federal programs and large systems projects |
Many international companies combine channels: a partner to hold contracts and deliver, plus their own outreach to create demand, because agencies still need to hear about you before they buy through any channel.
Building pipeline from outside the US
- Pick a first segment. Choose one or two government types where your product's case is strongest, and define your target market from TAM to target.
- Validate before you scale. Talk to 50–100 target agencies about their needs, budgets and current vendors before committing to a full launch.
- Time outreach to budgets. Most agencies plan spending months before their fiscal year begins; see our government fiscal year calendar.
- Follow buying signals. Budgets, capital plans, grant awards and council minutes are public; see government buying signals.
- Lead with peers. US public buyers trust other US public buyers. Your first reference customer matters more than any marketing.
- Show up where buyers gather. Book meetings around public sector conferences and work through associations.
How KSG helps international companies
Kensington Sales Group runs market validation and outbound sales development for companies entering the US public sector, from first conversations to a pipeline your own US team can take over. See our US market entry service.
Sources: SAM.gov Quick Start Guide for International Registrations; White & Case on Buy American Act thresholds and trade agreements; Sidley on OMB's final BABA guidance; U.S. Census Bureau, Government Organization Summary Report: 2022 and 2025.