Although total federal spending continues to decline year to year, buying activity in the last part of the fiscal year remains strong as a percentage of total obligations. Deltek, Inc. predicts that approximately $140 billion will be in play during the 4th quarter this year. Similarly, a recent B-Gov webinar laid out historical spending trends and predicted significant activity right up to September 30th. Both companies agreed that “Q4” is really all about September, with Deltek estimating that over 17% of all federal spending takes place in this month alone.

Fully 35% of all MAC business is conducted in the fourth quarter. Popular MAC and GSA Schedule contracts, in order, include the IT 70 Schedule, followed closely by GSA’s PSS, and Alliant large business. Navy Seaport-E and the VA’s new T4NG are also expected to fare well. Leading DOD agencies making year in buys, in order, are the Army, Navy, Air Force, and DLA. Civilian agency targets include State and Interior, each of which obligate over half of their total annual spending in the last quarter. The Social Security Administration and HHS are also heavy late-year spenders. Where not to spend year-end efforts? Energy and NASA, where most money, save for SEWP, is spent early in the year.
It’s not only small projects that come through this time of year, either. B-Gov estimates that well over 5,000 individual task orders will value exceeding $1M will be issued. Reduced total dollars only increases the importance of 4th quarter success. Make sure you know where the money is and that you have the partners and contract vehicles necessary to get it.