End of Year Spending in the Federal Government

Monday Morning Contracting Tips

Dannie E. James Sr

JE Group LLC

Phone: 404-557-0027

Fax: 404-521-4018

www.jegroupllc.com

Among Defense agencies, the Army and Navy are the biggest 4^th Quarter spenders, while the Air Force and other Defense agencies do most of their purchasing in the first quarter. Army 4^th Quarter spending centered on information technology, communications equipment and technical services, while Navy 4^th Quarter spending centered on aircraft and supporting technical services.

Among civilian agencies, the Health and Human Services and State Departments are the big 4^th Quarter spenders, while the Veterans Affairs, Energy, Treasury and Justice Departments lead in 1^st Quarter Spending. “Pharmaceuticals, medical equipment and Health IT are popular 4^th Quarter purchases for HHS and VA,”.

1^st Quarter is when agencies obligate funds for core mission needs, including Healthcare for ((the Defense Health Agency), aircraft maintenance for Air Force, research labs for DOE, and prisons for DOJ. This contrasts with 4^th Quarter, when a surge of spending occurs for IT and professional services as agencies scramble to expend their remaining funds. Knowledge is key.

We are currently in the last month of the biggest spending push of the year for the federal government market. While many private sector companies slow down for a long, inactive summer, the savvy government vendors are actually going full speed ahead during the summer months with targeted, aggressive marketing and sales campaigns to go after the federal end of year spending rush.

There are many things that should have been in place prior to the end of the fiscal year, which would allowed success of your company in the federal market. Last minute marketing will not assist in your success during the final quarter spending. There is a saying that I believe is real “People buy from people they know”  It does help if you have relationships in the federal government.  

Things to ensure are in place before the End of The Federal Spending:

·         Understand the Federal Government Funding Trend
·         Identify agencies that are buying your products and services
·         Get in front of decision makers early
·         Develop business development strategies
·         Educate your company about direct contract award (Sole Source) and limited competition contract award

All The Best 

 

 

 

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