EARLY Q4 ANECDOTAL EVIDENCE SHOWS MIXED EXPERIENCES SO FAR

Federal contractors are reporting mixed results as the first month of the federal fourth quarter comes to an end.  Smaller, product-focused businesses are reporting slower sales, while larger, service-based businesses are reporting something similar to “business as usual”.  This is no surprise for several reasons.  First, although the government does award service contracts right up to the end of the fiscal year, most larger projects are further along, with some already awarded and others scheduled for such action in the next few weeks.  Second, product buys are traditionally made late in the year, with this year’s exceptionally late appropriations actions likely pushing that back even further.  Reviewing Federal Procurement Data System (FPDS) spending information is also of limited utility at this time of year with DOD spending being one-quarter behind.  That makes it difficult to do true year-to-year comparisons.  What the data does show is that IDIQ contracts will continue to be vital to year-end business efforts. This is the time of year where it’s absolutely essential to promote use of your IDIQ contracts and, for GSA contractors, to dedicate sufficient resources to monitoring the e-buy system. Depending on the market segment, there is almost certainly more posting action on e-buy than on SAM.gov.  Overall, service, and even some office product spending seems to be on pace to exceed last year’s levels.  Other areas, like specialty equipment or anything deemed “non-essential” may face more challenges.  The pace of business will likely accelerate over the next two months, but no contractor can afford to sit back and react to what may come their way.  Experts always advise that a proactive approach to business brings the best results.  Make sure that describes you.