Earlier quoted context omitted.
It happens far too often. Right now I'm looking at a government RFP (request for propsals) that fits what I'm doing very well. But everyone I speak to tells me that it's an entirely doomed process, and that the government will never choose a tiny tech startup over a large corporation. I'm pretty sure they're right.
By law many federal agencies have to give research grants to small businesses. My mom runs a physics research company and that's how they stay in business. You check out SBIR grants - http://en.wikipedia.org/wiki/Small_Business_Innovation_Resea...
I'm curious -- how does this work? I.e. what kinds of organizations contract her for what kinds of tasks / duration? I would have thought that research was inherently un-estimatable.