Procurement Market Intelligence Report

Government Relations Services
Sourcing Guide & Market Intelligence

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Government Relations Services Global Overview

Definition

Summary

Suppliers of government relations services assist buyers by influencing the actions and policies of government officials to help achieve mutually beneficial outcomes. Government relations services are meant to bridge any disconnect that may arise between businesses and political leaders on the effects legislation could have on a given sector. Service providers may form political action committees, build direct relationships with government officials and staff and act as a liaison between the government and its clients. Government officials may include senators, congressional staff, regulators and other political representatives.

This Report Includes:

  • Political Action Committees
  • Government Relationship Building

Not in this Report:

  • Investor Relations
  • Internal Relations
  • Public Relations
  • Crisis Management

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Global Government Relations Services Procurement Trends

Discover the top international trends affecting procurement in the global Government Relations Services market.

Warning Trends


Public sector demand slumps as the government enters shutdown

  • On October 1, the US federal government entered a shutdown after negotiations for a new appropriations bill failed.
  • During a government shutdown, essential federal government operations, such as law enforcement, air-traffic control, and social security, persist, while nonessential operations are paused and workers involved in these operations are furloughed. Thus, the current shutdown is expected to result in 750,000 federal workers being furloughed, representing a $400 million reduction in daily expenditure by the federal government.
  • This significant reduction in federal spending and operations will affect the entire US economy, weakening aggregate demand and slowing economic growth. For example, the 35-day government shutdown in Q1, 2019, reduced aggregate demand in both the public and private sectors, resulting in a 0.2% reduction in GDP growth that quarter.
  • The effects of the shutdown are likely to be most acute in markets where the public sector is a major buyer segment, weakening demand and increasing average vendor risk by destabilizing important revenue streams.
  • As negotiations for a new appropriations bill to reopen the government remain ongoing, ProcurementIQ will continue to monitor the situation and update this story with the latest information.

Global Government Relations Services Market - Suppliers by Region

Country/Region Number of Suppliers
#1 China 42,635
#2 Europe 39,460
#3 United States 30,300

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  • Canada
  • United States
  • Mexico
  • Latin America
  • South America
  • India
  • China
  • Europe
  • Africa & Middle East
  • Australi & New Zealand
  • Oceania & Southeast Asia

Geography Drilldown - US

Average Cost of Government Relations Services

United States

2026 Market Pricing
$125.00 to $XXX.XX
per hour

Average Price

Prices in the Government Relations Services market range from $125.00 to $XXX.XX, depending on Complexity, Duration, Employee Experience, Supplier Reputation and Location. For example, lower prices are associated with Less complex projects, whereas higher prices are associated with More complex projects.

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Government Relations Services Category Price Trends

Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Government Relations Services market, prices in the US have grown 1.0% from 2022 to 2025. Subscribers can access price trend forecasts, price driver projections and forward-looking cost structure data. Learn more

United States (2022-2025)

1.0%
Compound Annual Growth Rate
United States (2025-2028)

Compound Annual Growth Rate

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Cost Analysis - Total Cost of Ownership for Government Relations Services

Total cost of ownership is Low in the Government Relations Services market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Scope Changes may raise the total cost of ownership unexpectedly.

Negotiated Before

Set Up Fees

Some suppliers might also require retainer fees up front, which can cost anywhere from $1,200 to more than $5,000 per month. Retainer fees are typically used for long-term contracts and act as a down payment to assure the availability of services.

Billed During

Additional Fees

Consultants charge for incidental items, such as travel, materials at cost, market research or supplemental administrative services.

Unforeseen

Scope Changes

Unexpected changes to the scope of the project will likely increase the price buyers pay under both the time and materials and fixed price pricing models.

Buyer Power in Procurement Negotiations

In 2026, buyer power amounts to 0.5 in the United States. Buyer power is most positively impacted by Recent Developments. It is most negatively impacted by Market Share Concentration. Subscribers can access details on eight other factors that impact buyer power. Learn more

United States

0.5

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Supply Chain Risk

The average level of supply chain risk is assessed as Low, which has a positive impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:

1st

Tier Suppliers

  • Commercial Leasing Firms
  • Computer Stores
  • Office Supply Stores

2nd

Tier Suppliers

  • Real Estate Sales & Brokerage Firms
  • Computer Manufacturers
  • Office Supply Manufacturers

Biggest Government Relations Services Suppliers in the US by Revenue

The largest Government Relations Services vendors by revenue in the US are Akin Gump Strauss Hauer & Feld LLP, Hogan Lovells International LLP and Interpublic Group Of Companies, Inc. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more

Supplier Operational Size Headquarters Number of Employees Market Share (%) Market Share Performance (3yr trend) Total Revenue ($ million) Profit Level (%) Risk Level
Omnicom Group Inc. Global NEW YORK, NY >10,000 < 5
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Wpp Plc Global London, UK >10,001 < 5
Interpublic Group Of Companies, Inc. Global NEW YORK >10,000 < 5
Fti Consulting, Inc. Global WASHINGTON, DC 1,001-10,000 < 5
Akin Gump Strauss Hauer & Feld LLP Global D.C., US 1,001-10,000 < 5
Hogan Lovells International LLP Global London, UK 1,001-10,000 < 5
Edelman Public Relations Worldwide Global Chicago, IL 1,001-10,000 < 5
APCO Worldwide LLC Global Washington, US 501-1,000 < 5
Holland & Knight LLP US < 5

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Profit Analysis

The average profit margin across vendors in the Government Relations Services market is 14.2% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Overhead. The cost trend for this component is falling, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more

Vendor & Supply Chain Analysis

Larger vendors typically experience lower financial risk due to their diversified service lines and stronger client networks, while newer entrants typically face a greater risk of default due to capacity constraints and competition with established vendors. Nonetheless, vendor financial risk is low overall.

Low market share concentration stems mainly from the fact that vendors in this market require minimal capital investments and instead focus primarily on obtaining the necessary background skills to perform their consulting services.

Purchased goods do not make up a significant portion of the average vendor’s cost structure, which maintains the low level of supply chain risk.

The United States is a net importer of computers, meaning it imports more computers than it exports. While lower manufacturing costs abroad drive down prices for imported computers, relying on imports can lead to potential shortages or price increases if there are supply chain disruptions due to geopolitical tensions, trade disputes, or global crises.

Supplier Information

Akin Gump Strauss Hauer & Feld LLP

Akin Gump Strauss Hauer & Feld LLP is a private company operating globally in the professional, scientific & technical services sector. The company's offerings include criminal law services, taxation law services and government relations services. Founded in 1945, the company is currently headquartered in... Subscribe to learn more

APCO Worldwide LLC

APCO Worldwide LLC is a private company operating globally in the professional, scientific & technical services sector. The company's offerings include government relations services and investor relations services. Founded in 1984, the company is currently headquartered in Washington, D.C., United States Subscribe to learn more

Edelman Public Relations Worldwide

Edelman Public Relations Worldwide is a private company operating globally in the professional, scientific & technical services sector. The company's offerings include government relations services and investor relations services. Founded in 1952, the company is currently headquartered in Chicago, Illinois,... Subscribe to learn more

Fti Consulting, Inc.

Fti Consulting, Inc. is a public company operating globally in the mining, information, professional, scientific and technical services, administration, business support and waste management services and educational services sectors. The company's offerings include e-discovery software, oil & gas field consulting... Subscribe to learn more

Hogan Lovells International LLP

Hogan Lovells International LLP is a private company operating globally in the professional, scientific & technical services sector. The company's offerings include bankruptcy law services, environmental law services, business law services and government relations services. Founded in 2010, the company is... Subscribe to learn more

Holland & Knight LLP

Holland & Knight LLP is a private company operating globally in the professional, scientific & technical services sector. The company's offerings include government relations services. Founded in 2017, the company is currently headquartered in Tampa, Florida, United States of America with an estimated 5500... Subscribe to learn more

Interpublic Group Of Companies, Inc.

The Interpublic Group of Companies, Inc. is a global marketing, communications, and business transformation services provider under various brands. It specializes in insights, data, media, creative and production, digital commerce, healthcare marketing, and communications. It serves digital commerce, retail... Subscribe to learn more

McNees Wallace & Nurick LLC

McNees Wallace & Nurick LLC is a private company operating regionally in the professional, scientific & technical services sector. The company's offerings include government relations services. Founded in 1935, the company is currently headquartered in Harrisburg, Pennsylvania, United States of America with... Subscribe to learn more

Omnicom Group Inc.

Omnicom Group Inc. is a holding company providing marketing and sales solutions to global companies. It offers services across media & advertising, including creative services, strategic media planning and buying, performance media, and data analytics services; precision marketing, including digital and direct... Subscribe to learn more

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Procurement Management KPIs for the Government Relations Services Market

Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Adjustments To Schedule and Billable Utilization. Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Timeliness and other factors.

KPI Level of Importance (1-5) Measurements Key Considerations
Adjustments To Schedule

Number of schedule adjustments

Severity of schedule adjustments

While schedule adjustments are sometimes unavoidable due to external factors, frequent schedule adjustments from the supplier may indicate the supplier was either not truthful or was unrealistic about how long it would take them to accomplish a project.

Frequent or severe schedule adjustments can lead to disruptions in buyers' operations.

Frequent or severe schedule adjustments can lead to cost overruns for buyers.

Billable Utilization

Total workable hours

Total billable hours

The billable utilization measures the percentage of workable hours a government relations service provider allocates toward a buyer's project.

Billable utilization reflects a service provider's productivity as well as their bandwidth to provide services to clients.

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Questions to Ask During Procurement Negotiations

How can I gain leverage during negotiations?

Experience and Expertise

What is your track record for successfully executing similar services for past clients? Do you have case studies to show this?

What relevant experience do your employees have regarding government relations services?

Competition

Who are your biggest competitors? What strategies do you implement to remain competitive?

Do you have international operations? To what extent does global expansion affect domestic buyers?

Business Continuity

During the past three years, how have you dealt with fluctuations in demand?

Have you ever been unable to perform services for a client due to capacity constraints? If so, how have you since resolved your capacity issue?

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Government Relations Services RFP Guidelines

What should my RFP include?

Organizational Overview

Buyers should give an overview of their organization, including the organizational structure, brand values and specific markets it serves.

Buyers should state the purpose of their government relations efforts.

Statement Of Need

Buyers should specify the type of services needed.

Buyers should specify relations with any key stakeholders that could influence project outcomes, such as trade associations, think tanks, unions or other related business groups.

Project Budget

Buyers should specify the total budget for the service.

Buyers should inquire into any additional charges or fees that they may incur as part of the contract.

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