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June 25, 20242 min readKevin Lam

Structuring a $1.4M Deal Through a Channel Partner

Account ExecutiveChannel SalesVARDoDDeal Structure

The Challenge

A DoD customer wanted to purchase our solution but needed to go through their existing contract vehicle — a blanket purchase agreement with a large government integrator. However, the integrator did not carry our product. We needed to establish a three-way relationship between us, the integrator, and the customer in time for the end-of-fiscal-year purchasing deadline.

The Approach

I engaged our channel sales team to rapidly onboard the government integrator as a reseller. Simultaneously, I worked with the customer's contracting officer to ensure our product could be added to the existing contract vehicle as a modification rather than requiring a new procurement action.

The logistics were complex: the integrator needed a reseller agreement, a quote, technical specifications in their format, and GSA pricing confirmation — all within two weeks. I personally managed the process across all three organizations, holding daily stand-ups with each party to track progress and remove blockers.

The Result

The contract modification was approved with three days to spare before the fiscal year deadline. The $1.4M deal included hardware tokens, software licenses, professional services delivered by the integrator, and three years of premium support. The integrator was so impressed with the collaboration that they added our solution to their standard offering for DoD customers.

Key Takeaway

In government sales, the procurement vehicle can be more important than the product itself. Understanding how to navigate contract vehicles, integrator relationships, and fiscal year deadlines is essential. Sometimes the AE's most valuable skill is not selling the product but orchestrating the procurement.

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