STUDY SHOWS FEDS SPEND MONEY RIGHT AFTER CR & ON SEPTEMBER 30th

Federal agencies consistently spend between 6-8% of their annual acquisition budget in the last week of the fiscal year, according to a report issued recently by the Department of Treasury’s Fiscal Service Data Lab. That equated to over $35 billion of business in FY’17.  That’s a good reason to postpone your vacation for another week.  Year-end isn’t the only time feds spend money, according to Treasury.  The week after Congress passes a Continuing Resolution also sees a spike in buying activity.  Professional service spending spikes at this time, as well.  Conversely, Treasury found that agency service spending decreases somewhat when Congress passes actual longer-term appropriations bills.  The speculation is that such funding measures allow agencies to do better long-term planning.  While Treasury’s analysis is intended primarily for federal agency use, contractors will find it useful as well.  In addition to the year-end numbers, for example, Treasury also found that spending tended to ebb and spike at specific times each month.  This information can be vital to contractor planning and outreach.  While it is no news that spending happens at the end of the year, info on CR-related spending and monthly peaks where spending spikes enables companies to appropriately plan BD activities.  Make sure that your plans are fine-tuned for the end of this FY.