Case Study: Reducing Market Intelligence Costs | Federal Compass

Case Study: Reducing Market Intelligence Costs


When developing our pricing model, we compared the traditional approach of our competitors to the pricing strategies implemented by innovative and disruptive SaaS companies. We opted to break from industry tradition by embracing modern pricing to support our goal of challenging the status quo.

Now, several months post-launch, we wanted to test our subjective notions of creating a better cost-to-value equation. We engaged one of our first customers to determine the impact our model had on their total cost of ownership.

The Customer

A professional and technology services contractor with strong annual revenue growth since FY14.

Assessment of the Customer

Company Attribute
FY18 Revenues
FY16-FY18 Revenue Trend
Customer Presence
Fourteen customers across defense and civilian departments
Contract Portfolio
Prime position on several highly visible multiple award contracts
Set-Aside/Socio-Economic Status

Assessment of the Customer's Subscription

Annual subscription for twelve seats.

Customer Observations

The customer cited four examples of how they reduced market intelligence investments and increased productivity and determined that Federal Compass' pricing model and capabilities directly led to these improvements.

Quantifiable Savings

Reduced market intelligence costs by $45k annually, by switching to Federal Compass.

Assessment of Reduced Investments

We found that two of these reductions were quantifiable, while two reflected the qualitative and abstract benefits of their subscription.

  • Comparison of subscription costs
  • Reduced dependency and demand for external support
  • Aligning cost with required access
  • Did the contractor identify and target potential markets for customer expansion?

Comparison of Subscription Costs

Previously, the customer had entered into a multi-year, enterprise-wide contract for $38k per year. They noted the subscription included limited access that prevented them from obtaining critically important information.

Their Federal Compass subscription included a mix of twelve seats, a cost of $13k annually based on our monthly pricing model. They opted for an annual subscription that included a two-month discount, reducing their total subscription cost to $10.5k or a savings of nearly $28k over their previous contract. Increased access to information, not included in their previous contract, represented a significant selling point for this customer.

Reduced Demand for External Resources

Over the past five years, this customer engaged with consulting firms and other service providers in support of strategic planning and tactical pursuits. These engagements ranged between $20-$25k with deliveries that quickly grew stale.

Within the mix of twelve seats, the contractor selected five strategic subscriptions. They found that our on-demand capabilities could eliminate nearly $20k in annual expenditures for external support.

Aligning Cost with Required Access

Under their previous enterprise-wide contract, a large number of users was essential to achieving a positive cost-to-value equation. After conducting an internal audit of users, the company found that less than one-third of those with access used the subscription at least once a month.

With Federal Compass, the company had a scalable solution. They initially on-boarded key users, with the option to add new users as needed. The ability to assign a specific tier of access to each user ensured that the company only paid for information required by each user.

Increased Productivity and Resource Availability

Due to subscription and product-related limitations, the company's internal resources were required to augment research gaps. These resources invested valuable time filling capability gaps and were unavailable to support other organizational needs.

After two months of becoming a customer, the company noticed a significant change in the availability of internal resources. They credited this shift to functionality that allowed less experienced users to acquire in-depth information and a robust set of analytical tools that eliminated a significant amount of supplemental research.


While not all the benefits were quantifiable savings, the company identified four advantages that reduced costs, enhanced productivity, and increased the availability of critical resources. Switching to Federal Compass resulted in the company reducing market intelligence costs by $45k annually.

To determine if Federal Compass can reduce costs and increase your productivity visit us today.

Recent Posts

Learn What's on the BIC MAC Menu

Learn why everyone is talking about BIC MAC. It's more than just an OASIS 2 recomplete, it's a one-stop shop for solution-centric professional services. BIC MAC is positioned to significantly disrupt the market. We've seen from OASIS trends that contractors can expect widespread adoption across federal agencies. During this webinar we'll explore the broad range of services that can be expected on BIC MAC and the large number of contractors that are sure to participate. We'll also investigate why certain contractors have more post-award success that others, and some of the techniques to finding the right teaming partners.

written by Jim Sherwood, published 06/28/2021

Polaris Recap: We'll Explore What's Changed with Polaris

With other big-ticket vehicles already competed, Polaris offers another onramp for contractors to get in on the action. We'll explore historic Alliant spending and discuss strategies for Polaris.

written by Jim Sherwood, published 05/18/2021

The March Toward GWACS: CIO-SP4, POLARIS, 8(a) STARS III

Is your company prepared for the shifting landscape within Federal IT procurement? For nearly twenty years, GSA Schedules and agency-IDIQs paved the way for the evolution of second-tier competitions. In 2019, GWACs outpaced IDIQs, for the first time, to become the Government's preferred pathway. Every Federal customer interacts with GWACs, and these vehicles continue to lure in new adopters. From the broad range of services to the number of contractors vying for work, the loyalty to IDIQs is waning as customers begin their march towards GWACs. For many, this statement makes sense; however, getting on a GWAC, let alone finding success, creates a challenge unique to these types of vehicles. It isn't enough to know POLARIS, CIO-SP4, and 8(a) STARS III; a clear vision and strategy are critical to determining the right team, surviving the scorecard, and moving into post-award with a proactive plan to capture business, rather than hopelessly reacting.

written by Jim Sherwood, published 03/09/2021

The Small Business Catch-22: Available Resources Limit Critical Processes

Revenue growth is the primary focus of every small business, but in a market as complex and fluid as the federal contracting market, growth can often stall due to the lack of the right resources. And when effectively managing expenditures puts the right resources out of reach, small businesses often get caught in a growth Catch-22.

written by Jim Sherwood, published 01/25/2021