End of the Federal Fiscal Year Contracting Rush
Veteran Owned Businesses and SDVOSBs Have Opportunities at the End of the Federal Fiscal Year
View our most recent list of SDVOSB/DVBE and Veteran Owned Business Government Bids
The end of the Federal Government’s Fiscal year closes on September 30th, and Veteran Owned and Service Disabled Veteran Owned Businesses can take advantage as Federal Agencies try to spend their allocated funds to reduce the chance of their budget figures being reduced in the next cycle.
Harvard’s Kennedy School of Government published a study in 2010 (click to view study) that analyzed federal government contract spending by week and quantified the year-end government spending effect. The study analyzed aggregate spending data from the years 2004-2009 and found that nearly 17 percent of spending by government agencies occurs in the last month of the fiscal year and almost 9 percent of spending occurs in the last week. Overall contract spending by federal agencies was almost five times the weekly average during the last week of the fiscal year. For major federal IT projects that the study tracked in more detail, weekly spending increased to 7.2 times the weekly average during the last week of the fiscal year.
The Study explains, “For these organizations, unspent funding may not only represent a lost opportunity but can also signal a lack of need to budget-setters, decreasing funding in future budget cycles”. If the budget is not fully utilized during the fiscal year, agencies run the risk of losing that budget in future spending cycles.
To be successful, government contractors should target the period just before and after fiscal year end as one of the best times of the year to build business with government agencies.
Be sure to take a few minutes and view our most recent list of SDVOSB/DVBE and Veteran Owned Business Government Bids.
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