B2G
B2G, or Business-to-Government, refers to commercial transactions where a private company provides goods, services, or technology solutions to public sector entities. In subscription and service models, B2G describes recurring or contractual relationships between a business and a government agency, often governed by procurement regulations and long-term service agreements.
Prepared with AIContent updated
A public buyer and applicable procurement rules
B2G means selling to public authorities and institutions. Rules depend on country, purchase type and contract. Not every purchase follows the same tender procedure, and the language of a product website does not determine jurisdiction.
From requirements to delivery
Illustrative B2G workflow; procedure and deadlines follow the actual procurement.
- Requirements
Read procedure, evidence and evaluation
- Bid
Assess resources, price and obligations
- Contract
Record start, expiry and any options
- Delivery
Document service and correct invoicing
An option or bid opportunity is not a guaranteed renewal or active recurring revenue.
Assess before bidding
Read requirements, evaluation, deadlines and documentation. Security, accessibility and data protection may matter, but particular certifications are not universally mandatory. Include bid effort, implementation and ongoing delivery in the economics.
Contract, option and renewal
An extension option is not an exercised renewal. Check who can exercise it, when and on what terms, and plan for expiry and any new procurement. Public-sector status guarantees neither low churn, future payment nor contract continuation.
Invoicing and cash
Measure value and concentration
Measure normalised recurring value from active agreements under a consistent policy. Conditional pipeline and unexercised options are not already active ARR. Investigate dependence on a few contracts and their expiry dates, not merely portfolio size.
Questions and answers
Do all public purchases follow the same tender process?
No. Establish the jurisdiction, purchase type and procedure from current rules and procurement documents. Use the buyer’s actual materials and official guidance.
Does a public customer mean low churn?
Do not assume it. A contract can expire, be competed again or change under its terms. Retention also depends on when customers actually have an opportunity to renew.
Is an expected contract ARR?
No. Show pipeline and scenarios separately from normalised value of active eligible agreements. A forecast should identify probability, start date and assumptions.
