September Spending: “Use-It-or-Lose-It”

The month of September marks the end of the federal government’s fiscal year and the beginning of its annual year-end spending spree.

In this episode of FedBiz’5, we are hosting Amanda Bach from FedBiz Access to discuss the advantages of marketing your business to the Federal Government for ‘September Spending.’

During the month of September, federal agencies typically scramble to spend what’s left in their annual budget, for fear that leaving excess funds unspent may prompt Congress to spend less in the following year. It is known as “use-it-or-lose-it” spending, and it happens every year.

Most budget authority provided to federal agencies for discretionary spending requires the agencies to obligate funds by the end of the fiscal year or return the funds to the Treasury; state and local government agencies typically face similar constraints.

Early in their fiscal year, when future spending demands are uncertain, agencies have an incentive to hold back on marginal spending early in the budget cycle and then burn through those dollars near or at the end of their fiscal year, by September 30th.

So, in the month of September you’ll find that government buyers are purging their remaining budgets and looking accelerate award opportunities. Government buyers are required as part of their incentives to create set-aside award opportunities for certified small businesses.

As a government contractor the best time to plant the seed with buyers is early in the cycle. Research who buys what you sell, make sure your registrations are current and compliant, and market your capabilities.

One source federal buyers turn to is FedBiz Connect, a searchable database of 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, UEI No., location, socio-economic status, NAICS Codes, PSC, capability statement, past performance, FEMA registered, smart cards, points of contact, etc.

The key to government contracting is connections. Government buyers purchase from businesses that they know, they have their Capability Statement on file, and experience proves they can be a reliable source.

September spending creates an opportunity for federal contractors, who have established relationships with buyers, to support their immediate needs. FedBiz Access (“FedBiz”) has a fulfillment team that takes the time to understand your business and ask questions to ensure you have a solid engagement plan.

FedBiz offers proprietary marketing packages to targeted buyers in the federal government with its Federal Connections Package, and on the state, local, and education market with its Local Connections Package.

FedBiz is a leading government contracting business development and marketing firm that offers research and engagement strategy coaching, registrations, certifications, and GSA Schedules.

FedBiz has over 21 years of experience working with thousands of companies worldwide to help them win over $35.7 billion in awards. From registration to award, FedBiz helps businesses succeed in the government marketplace.