This is the first “boots on the ground” thing I learned being subject to a procurement process: if someone - or the right person - within an org wants your stuff, then you’ll be surprised how many on-paper “requirements” are able to just fall away.

Or they'll tell you the hidden requirements! I remember selling to a school board back in 2008. We wanted to issue them a bill with one line item: "Software, $100,000."

Luckily, we had a champion inside who took us aside and gently proposed that we repackage it into several line items: site-wide licensing, installation support, training support, 1-year of tech support, custom development fee, etc. It tallied to the same amount, but looked a lot more "normal" for procurement purposes.

Yup. You have to speak their language.

I would think that this kind of itemization would also help them in cases where they are trying to detect fraud.

It’s not a big app. I spent like 50+ hours making the app. So charging thousands is out of their budget.

It's not a factor of how long it took you to make it, but the value of it to the end user. If (in a contrived example) it took you 1 hour to create but saved the end user many hundreds of hours of expensive labor, it could be worth a great deal. Think about the output instead of the input when pricing your creation!

Don't make the mistake of assuming the hours spent is correlated to the amount they will spend.

I'm not saying they will spend thousands of dollars but you might be surprised how big their budgets are and the numbers they are used to.