WELCOME TO SEPTEMBER! THREE THINGS TO FOCUS ON RIGHT NOW

Summer is now officially over and with it a change of pace in business and a host of opportunities and potential challenges.  Here are three things federal contractors should focus on now.

1.  Frenzied Pace of Business:  There’s substantial business left to be done in the last month of the federal fiscal year.  September is the largest single month for many acquisition categories and, with government spending expected to equal or exceed last year’s record-breaking threshold, this year could be especially busy.

2.  Slow Congressional Action on Appropriations Or a CR:  While the Senate returns to work right after Labor Day, the House will not.  It’s currently scheduled to return on September 11th, a day that will largely be set-aside for 911 recognition.  Both chambers will then leave town almost immediately thereafter for the Jewish high holidays.  This means that the bulk of spending action will have to take place in the last 10 days of the month.  There’s a lot of uncertainty on whether Congress can actually pass even a “clean” CR to keep the government open.  We probably won’t know until the last possible moment.

3.  Expect the Unexpected.  Hurricane Idalia just swept up the east coast and disrupted business from Florida to Virginia.  Federal customers changed priorities and will do so again if another storm develops.  That can delay other business while the clock ticks down to year-end.  In addition, regional military conflicts and terrorism always have a way of flaring up when they’ve been quiet for a while.  These, too, can disrupt business, but could potentially provide opportunities.  On the business front, double-checking that the deal your business is counting on is still going through can avoid a nasty surprise.  Lastly, the end of the fiscal year is a time when key government contacts may retire, causing the personnel deck to reshuffle and mandating that contractors develop new relationships.  We hope that readers took some time to relax in August.  Things won’t slow down again in the government market until Thanksgiving.