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First, to answer your questions:

eccemonkey, post: 20739 wrote:
– should I email or send a letter?

neither. get on the phone and find out who has the problem you can solve.

eccemonkey, post: 20739 wrote:
– should I include a logo letter head?

When you do send a letter, yes

eccemonkey, post: 20739 wrote:
– should I find a name I can address it to or just “Sir/Madam”?

Once you identify the right person/people to talk with, personalise your communications. This might help – http://www.gold.gov.au

eccemonkey, post: 20739 wrote:
– should I keep trying if ignored the first time?

Yes

Government procurement has quite prescriptive guidelines around how they can go about buying stuff.

At a very basic level, for Federal Government procurement,

For FMA Agencies:
$1-$15k can be purchased at someones discretion.
$15k-$80k they’ll need 3 quotes.
$80k+ they have to go to tender.

For CAC Act bodies
$1-$15k can be purchased at someones discretion.
$15k-$400k they’ll need 3 quotes.
$400k+ they have to go to tender.

There are exceptions to this, but thats the basic gist. There is more info here: http://www.finance.gov.au/publications/fmg-series/procurement-guidelines/index.html

Selling to Government can be very lucrative BUT it takes considerable time and energy.

Not sure if you are looking local, state or federal. I have sold to Federal Government in the past so know a fair bit about this. I dont know anything about selling to states or local governments though.