Does Buy America apply to traffic signals and ITS equipment?

On FHWA federal-aid projects, Buy America covers iron and steel and, under FHWA's 2025 rule, manufactured products. FHWA treats ITS cabinets in the right of way as manufactured products, but has not settled every item, so check with FHWA and the state DOT.

Are SMART grants still available?

No new SMART solicitations are planned. USDOT says existing grant agreements will continue to be honored, so agencies with awards are still buying.

Who buys traffic technology?

State DOTs and city or county traffic engineering and public works departments, often with federal-aid funds managed by the state DOT.

How long does it take to sell transportation technology to government?

It depends on the size of the purchase and how it's bought. Small purchases under an agency's threshold, or buys through an existing cooperative contract, can move quickly. Purchases that need a formal bid or a new budget line usually take longer, often a full budget cycle.

Can KSG help us sell transportation technology to government?

Yes. Kensington Sales Group provides outsourced SDRs who research target agencies, reach the right program owners and purchasing contacts, and book qualified meetings for your sales team. Book a 30-minute call to talk it through.

Selling Transportation Technology to Government: A Guide

Key takeaways

The IIJA authorized $100 million per year for FY2022-2026 for USDOT's SMART grants; the final Stage 1 round (announced December 16, 2024) provided $54 million for 34 projects in 21 states, and the program has 122 Stage 1 and seven Stage 2 projects.
Common ways agencies buy transportation technology: Federal-aid highway program via state DOTs, USDOT SMART grants, HGACBuy public works contracts.
Rules to plan for: FHWA Buy America, FHWA Buy America iron and steel, SMART grant program ending.
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 transportation technology in government

Purchases of transportation technology 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:

State DOTs (traffic operations, ITS and signal divisions)
City and county transportation and public works departments
Metropolitan planning organizations (MPOs)
Transit agencies
Toll authorities and port authorities
Job titles: traffic engineer, city/county engineer, ITS program manager, signal systems manager, traffic operations manager, transportation director, public works director, purchasing agent

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 transportation technology market

The IIJA authorized $100 million per year for FY2022-2026 for USDOT's SMART grants; the final Stage 1 round (announced December 16, 2024) provided $54 million for 34 projects in 21 states, and the program has 122 Stage 1 and seven Stage 2 projects. (U.S. Department of Transportation, SMART Grants Program)
Congress reallocated $204,912,000 in unobligated SMART balances under H.R. 7148, and USDOT says it will not issue new SMART funding solicitations. (U.S. Department of Transportation, SMART Grants Program)

How agencies buy transportation technology

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 transportation technology:

Contract vehicle	What it is
Federal-aid highway program via state DOTs	Most traffic technology bought with FHWA funds runs through state DOT and local agency projects that must meet FHWA Buy America and procurement rules.
USDOT SMART grants	Grants to public agencies for smart transportation technology demonstrations; existing agreements continue but no new rounds are planned.
HGACBuy public works contracts	Cooperative used by local governments nationwide for public works products and equipment.

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 transportation technology

Requirement	What it means for you
FHWA Buy America - manufactured products	FHWA's January 2025 rule ended a decades-old waiver, phasing in a U.S. final assembly requirement and then a more-than-55-percent U.S. component cost requirement for manufactured products on federal-aid projects; ITS cabinets in the right of way are treated as manufactured products. Check FHWA for current effective dates, since a delay notice followed.
FHWA Buy America iron and steel	Iron and steel products permanently built into federal-aid highway projects, including predominantly steel cabinets and poles, must be U.S.-made.
SMART grant program ending	No new SMART solicitations will be issued, so vendors should target agencies with existing awards rather than wait for new rounds.

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 transportation technology soon:

An agency wins or holds an existing SMART, safety or other federal transportation grant
A project appears in the state or MPO transportation improvement program (STIP/TIP)
A corridor study, signal retiming study or Vision Zero/safety action plan is adopted
Signal controllers or cabinets reaching end of life, or a central traffic management system upgrade
A city or state DOT issues an ITS master plan or traffic management center expansion

For more, see our guide to government buying signals and the contract expirations guide.

A sales process for selling transportation technology

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 transportation technology

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 helped KOVA sell its emergency alert notification system to US airports: 164 opportunities and $5 million in revenue from a two-year campaign (read the case study).

See how our outsourced SDR service works.

Sources

Checked November 2, 2026.

Selling transportation technology to government.