Expert tells why agencies speed up spending before the end of the federal fiscal year (with related video)
With the federal fiscal year drawing to a close on Sept. 30, GPN asked John Wayne II whether federal agencies sometimes accelerate spending near the end of the fiscal year.
Wayne works at US Federal Contractor Registration, which is a third-party registration firm. It helps business owners register to do business with the federal government. The firm has completed more than 65,000 registrations for federal contractors, nonprofits and state and local agencies.
Wayne is a No-Bid Simplified Acquisition Expert at the company. Below, Wayne offers his views on federal contracting opportunities and strategies.
Fiscal year-end brings with it a rush of purchases, many of which are made via simplified acquisitions. Why do agencies have money to spend in August and September? Because many of them save during the year, making sure they have access to a “slush” or “rainy day” fund.
If they don’t need to access funds for emergencies, then they get the chance – or give themselves the chance – to finance projects before the federal fiscal year-end on September 30. According to the National Bureau of Economic Research, federal government spending between September 20 and 30 is 4.9 times higher than the rest-of-the-year weekly average.
Spending increases around the fiscal year-end because many agencies have a “spend it or lose it” mentality. The money left in their coffers at fiscal year-end is often deducted from their budget for next year — mostly because it appears that they don’t need that money after all, when really, they just weren’t able to purchase the product and/or service they need prior to fiscal year-end.
Fiscal year-end also means that the new fiscal year is starting, and this is another period of increased spending, especially for agencies that used their budgets prior to fiscal year-end, and, as such, put spending on hold until the new budget took effect.
If you want to take advantage of this fiscal year-end spending spree, then US Federal Contractor Registration can help. We are the world’s largest third-party government registration firm. We can make sure your firm is correctly registered in the System for Award Management (SAM), help you locate opportunities on which to bid, and also help you tailor a bid to increase your odds of success.
You can reach our company at 877-252-2700, ext. 1, or via the web at this site.
John Wayne II is a federal government marketplace analyst/trainer who specializes in simplified acquisition contracts, micro-purchases, sole-source contracting, subcontracts, federal Small Business, Women, Minority, Veteran, Service Disabled Veteran, 8A and HUBZone set-aside qualifications, and basic government registrations. He has personally assisted and mentored more than 10,000 small businesses, nonprofits, and federal government agencies.
John uses online contractor resources to show businesses how to navigate the federal marketplace, discover competitors, track down available contracts, and network with procurement officers around the nation. His clients have earned millions of dollars in contracts, according to the company.
In the video, learn about some of the tools that US Federal Contractor Registration provides its clients to help them succeed in the federal marketplace.