The final quarter of the government fiscal year starts next week. Based upon historical spending trends, federal contract awards will spike in September. In fact, federal contract awards can double in September compared to previous months. Last fiscal year, federal agencies reported more than $122 billion in contract awards in September. The chart below depicts federal contract awards by month from fiscal year 2018 to 2023, and shows the clear jump in awards during the final month of the fiscal year.
Federal Contract Awards by Month & Fiscal Year
FY 2018-2023
5 Steps to Prep for Year-End Federal Spend
If you haven’t started taking steps to prepare for year-end spending, there’s still time. Here are a five things you can do as a company to prepare for government fiscal year-end spending.
1. Get Your Contracts in Order
While not always required, it can help to have an established contract vehicle to offer government buyers. This is especially true for year-end, time-sensitive purchases. Contract vehicles have pre-negotiated terms, conditions, and pricing that can cut down on the typical government sales cycle. When agencies purchase through a GSA Multiple Award Schedule (MAS) Contract in particular they follow streamlined ordering procedures unique to the contract.
Having a contract vehicle and keeping it up to date is important. In practice, this means making sure your contract reflects current pricing, offerings, and contact information. An outdated contract can cost you sales. This is especially true during the fiscal year-end when the clock is ticking for government buyers to spend any remaining funds.
If your company has a GSA MAS Contract, use this 7-point checklist to make sure your contract is ready for business.
2. Get Ahead of Upcoming Opportunities
Whether you use a paid subscription platform or free, publicly available resources like SAM.gov, USASpending.gov, and FPDS.gov, make sure you have a process in place to monitor and track opportunities. Beyond monitoring open opportunities, use Requests for Information (RFIs), Industry Days, and Procurement Forecasts to get ahead of upcoming opportunities. Make sure you’re utilizing these seven resources to find government contract opportunities.
3. Check in With Current and Past Clients
Have a plan to stay connected with your customers and any government contacts you’ve built over the years. Check in with your contacts ahead of the fiscal year-end to see if there are any projects or needs you can help fulfill with remaining budgets.
4. Reach Out to Potential Prospects
Stay on top of market research to identify the top agencies that could have a need for the products or services you offer. Conduct periodic outreach campaigns to generate awareness and highlight how your offerings align with the agency’s needs and priorities.
5. Plan & Prepare Your Resources
Regardless of when your busy season happens, it’s important to have the allocated resources to handle the anticipated influx of work. Beyond having the resources available, take the time to make sure your staff is equipped with the information, collateral, materials, and resources they need to be successful. If your company holds a GSA MAS Contract, here are five things your team should know.
Need Assistance Getting Your GSA Contract in Order?
Our team has the experience to provide you with valuable insight and the bandwidth to prioritize your contract updates. Contact us to discuss your GSA Contract needs!