WELCOME TO BUSY SEASON!

Federal agencies will spend an estimated $217 billion between now and the end of the fiscal year according to Bloomberg Government.  That’s a significant amount of money on the table and obtaining a share of it often determines whether or not a contractor has a successful year.  Bloomberg further estimates that 60% of total dollars, or $132 billion, will be spent via standing IDIQ contracts such as the GSA Schedules, NASA SEWP, and NIH CIOSP-3, among others.  Further, the Department of Defense will collectively be responsible for about half of total spending, with the Army projected to be the biggest single buyer in the defense community.  The leading civilian agency is expected to be the VA, where spending on both IT and healthcare is expected to accelerate.  Plenty of opportunities for small businesses should be available as well, considering Bloomberg’s estimate that the top 10 federal agencies need to spend $28 billion with small firms during the quarter in order to make their small business contracting goals.  The VA has the most ground to make up among civilian agencies, while Agriculture is increasing its small business use and Energy, which typically commits most of its money early in the fiscal year, has made the most progress.  Every contractor should have a well-established pipeline by now of projects they expect to close by September 30th.  This is the time of year to focus on that pipeline and ensure that all contracts and partners are tuned up and ready to hit the ground running when feds return from the 4th of July holiday.  The pace of business will only accelerate over the next 3 months.  Remember that October is a great time to rest and reflect on what hopefully will be a successful year-end.