September Federal Spending Spree: 'Christmas Comes Early' for Contractors
For federal agencies and government contractors, Christmas comes in September, the final month of the federal government’s fiscal year. Federal agencies want to make sure they spend what’s left in their annual budgets with a ‘use-it-or-lose-it’ mentality.
For fiscal year (“FY”) 2018 federal agencies spent approximately $98 billion (with a ‘B’) on 509,828 contracts for goods and services in the month of September. This is approximately 18% of their total annual contract spending of approximately $555 billion and marks a September increase of 16% from FY 2017 and a 39% increase from FY 2015.
Federal agencies worry spending less than their annual budget may trigger Congress to allocate lower funding for the next fiscal year. This creates an opportunity for federal contractors who have created relationship with contracting officers to support their immediate needs. When the order comes down from on-high to spend, these contracting officers turn to trusted sources.
One source federal contracting officers turn to is the FedBiz Directory. The FedBiz Directory is a searchable database of small businesses registered for federal contracting that highlights their business to contracting officers and prime contractors.
The database is searchable by keywords, business name, CAGE code, DUNS No., location, socio-economic status, NAICS, PSC, Capability Statement, past performance, FEMA registered, smart cards, points of contact, etc.
FedBiz Access works with small businesses to make sure their SAM registration and DSBS profile are optimized, accurate and complete. A company’s information is then pulled into the FedBiz Directory database directly from these government sources where it is searchable and easy to match verified vendors with the goods and services required.
FedBiz Access also provides clients with access to its Market Intel Database where companies can find open solicitations, expiring contracts, upcoming opportunities, contracting officers’ contact information, etc., and build relationships to position themselves when purchasing starts.
It’s important for small businesses to get positioned prior to September so federal contracting officers know who they are well before ‘Christmas’. Contracting officers like to buy from businesses they know… do they know you?
Frequently Asked Questions
- 1 Why is September a crucial month for federal government contractors?
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September marks the end of the federal government's fiscal year. Agencies adopt a "use-it-or-lose-it" approach to their budgets, leading to a significant increase in contract spending to utilize remaining funds and avoid reduced allocations for the next year.
- 2 What is the typical volume of federal spending in September?
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September sees a substantial surge in federal spending. For instance, in fiscal year 2018, federal agencies spent approximately $98 billion on over half a million contracts, accounting for about 18% of their total annual contract spending.
- 3 How can contractors identify and access these year-end federal opportunities?
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Federal contracting officers often rely on resources like the FedBiz Directory, a searchable database of registered small businesses. FedBiz Access also offers its Market Intel Database, providing clients with information on open solicitations, expiring contracts, and upcoming opportunities.
- 4 What is the "use-it-or-lose-it" mentality in federal budgeting?
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The "use-it-or-lose-it" mentality describes federal agencies' drive to spend their allocated budgets by the end of the fiscal year. This practice aims to prevent Congress from reducing future funding, resulting in a concentrated period of contract awards and spending.
