The government fiscal fourth quarter (Q4) is rapidly approaching, meaning the busiest time of the year will soon be upon government contractors. Between July 1 and September 30, federal agencies scramble to spend what’s left in their budget, in fear that their budget will be lowered the following year if there is excess money. This causes a government spending spree in the last quarter of the fiscal year.
September is categorized as the “use it or lose it” month in federal contracting. According to the fiscal 2021 budget request, studies have shown that one out of every nine dollars in federal contracts was spent in the last week of the fiscal year. The budget request states, “On average, the Federal Government spends $3.2 billion a day in contracts. In the last two days of 2018 alone, agencies spent $10 billion a day,” (Budget of the U.S. Government, 2020, p. 17).
Q4 of the government fiscal year provides an opportunity for federal contractors to maximize their current contracts and win more contracts.
So, what can you do as a federal contractor to prepare for the busy season?
- Build relationships with agencies. If you haven’t already done this, now is the time to start. Reaching out to agencies is a great way to remind them of your capabilities, which may prompt them to allocate some of their budget to your company.
- Double-check that your GSA Schedule or other contract vehicles are up to date. Do you have new products or services to add? Is your pricing correct? Ensure everything is up to date so that the government is aware of your full capabilities.
- If you’re an 8(a) company, send out your requirement letters to contracting officers for sole source opportunities. This letter directs the contracting agency to consider your company for a sole source award. This is first come first serve.
- Plan ahead. Expect short lead times and turnarounds, and start your pricing now.
- Prepare your team. If they are not aware of the Q4 busy season, brief your team. As a federal contractor, Q4 can be a lot of extra work, but it pays off.
Spending season is almost upon us. It’s time to win some government contracts. If you need help with the government contracting process or implementing any of the above tips, contact our team. We’re happy to help.