SEPTEMBER SHAPING UP TO ONE TO REMEMBER FOR FED BUSINESS
Contractors can expect larger than normal fiscal year-end business due to the disruption of business earlier this year stemming from the government’s response to COVID-19. Bloomberg Government reported last week that they expect $194 billion to be spent between now and the end of the fiscal year and that $101 billion of that will be spent in September. That’s 52% of remaining funds. Such a figure would exceed even the September 2018 spend of $99 billion. BGov further believes that $28 billion will be spent on IT during the last quarter, while $32 billion will go towards professional services. This is good news for contractors who may have seen critical projects delayed as their customers dedicated resources to emergency needs related to the pandemic. Serious needs still have to be met, including security, delivery of services to Veterans, and front-line DOD mission support. Contractors must be prepared more than ever, too, to help their customers buy from them easily. Access to IDIQ contracts like the GSA Schedule, NASA SEWP, OASIS and others will be an essential part of a company’s business strategy. Don’t take our word for it. NASA officials told a BGov audience that agency customers’ fourth quarter spending accounted for 54% of all of its revenue under the SEWP GWAC in 2019, 33% of which came in September alone. Similarly, NIH’s NITAAC organization stated that the fourth quarter accounts for 57% of their annual business. Being able to provide your customer with acquisition time savings may be just as important as the solution itself. With Europe closed and two-week quarantines imposed in Maine and Hawaii, contractors should be extra-focused on finishing the year strong. October vacations in Trenton will be there when you’re ready.