HOW MUCH MONEY REALLY GETS SPENT AT YEAR-END? BLOOMBERG HIGHLIGHTS THE OBVIOUS AND NOT SO

Contractors have known that summer is the traditional federal “busy season”, but what does that really mean?  An analysis provided by Bloomberg Government finds that over 17% of spending is done in September alone, with agencies like DHS, Interior and AID reporting fully 25% of their annual contract spend in that month alone.  August is the second biggest month, but is a fraction of September’s spend rate.  Bloomberg went on to point out two important factors for contractors to keep in mind:  First, when doing business with DOD, remember that not all DOD is money is “one year” in nature.  There are opportunities for multi-year projects. Multi-year capabilities mean less pressure to spend at fiscal year-end, but also more of an ability to initiate projects throughout the year.  Contractors do have a role, though, in ensuring that DOD customers don’t “forget” about obligated, but un-spent funds.  Bloomberg also highlighted that October 1st is just as busy as September 30th.  This is due to the numerous “regular order” business that must be initiated at the start of the new fiscal year.  Supplies, staff augmentation, lease and rental renewals are just some examples of October 1st business.  So, your firm can pass out on October 3rd which, this year, is conveniently on a Saturday.