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What is D2G (Direct-to-Government)?
Direct-to-Government (D2G) refers to a business model where companies sell goods, services, or digital solutions directly to government entities without intermediaries. It is commonly used in procurement, public infrastructure, software systems, and national development projects.
Definition
D2G is a go-to-market and procurement model in which businesses provide products or services directly to government institutions through tenders, contracts, or digital procurement platforms.
Key Takeaways
- Requires compliance with strict regulatory and procurement standards.
- Focuses on transparency, accountability, and long-term contracts.
- Offers high revenue potential but involves lengthy procurement cycles.
Understanding D2G
The D2G model is used by companies operating in areas such as construction, security, energy, ICT services, education technology, and healthcare equipment. Government procurement can be highly competitive, with strict evaluation criteria, including pricing, quality, vendor reputation, and compliance.
The rise of digital procurement systems has made it easier for smaller businesses to enter D2G markets, reducing traditional barriers and increasing transparency.
Importance in Business or Economics
- Governments are among the largest purchasers of goods and services.
- Contracts often offer multi‑year revenue stability.
- Helps businesses expand into national development sectors.
- Requires strong governance, documentation, and competitive pricing.
Types or Variations
- Direct Tendering – Businesses apply for public tenders.
- Framework Agreements – Long-term vendor approval for repeated needs.
- Digital Procurement Platforms – Online submission and evaluation.
Related Terms
- B2G (Business-to-Government)
- Public Procurement
- Government Tendering
Sources and Further Reading
- World Bank Procurement Guidelines
- OECD Government Procurement Reports
- National e-Procurement Portals
Quick Reference
- Direct sales to government
- High compliance requirements
- Long contract cycles
FAQs
Is D2G only for large companies?
No. Many countries encourage SMEs to participate in government procurement.
Why is D2G attractive?
It offers long-term, stable contracts.
What is the biggest challenge?
Compliance and slow procurement cycles.
