Are you a contractor seeking to grow your business and stay ahead of the competition? Did you know that monitoring government spending trends can expedite your road to success?
If you’re proactive in government contracting, you’re likely aware that the fourth quarter is crucial, with more federal contract dollars (historically 31%) being expended than at any other time of year.
If this is new to you, it’s not too late to take advantage of current government 4th quarter spending for
your business. This is the time of year when contracting officers need to allocate any unused funds.
Why an Increase in Spending During Quarter Four?
Why an Increase in Spending During Quarter Four?
There are a variety of reasons for this increase:
Delay in Government Budgets
This can lead to later contract awards.
New Requirements
These can cause delays in awarded contracts.
Budget Reserve
Contracting officers often hold some of their budget in reserve for last-minute agency needs, similar to a rainy-day fund. In the 4th quarter, they must spend these unused funds. If they don’t, legislators might reduce their budget for the following year.
Government Spending Transparency – The Facts
The government aims to provide access to information that allows you to proactively participate in opportunities.
I Want This for My Business. How Do I Move Forward?
To grow your business portfolio with the government, here’s what you need to do:
Become Familiar with USASpending.gov
This website offers a wealth of transparent information. The more time you spend on it, the more knowledgeable you will become.
Search Criteria to Jump-Start Your Research
- By NAICS Code: Determine which agencies spend the most money in your industry.
- By NAICS Code for Prime Contractors: Identify prime contractors winning contracts in your industry.
- By Type of Set-Aside: Learn which set-aside contracts have been awarded.
- By PSC Codes: Narrow the spending to specific areas of a NAICS code.
- By Contract Location: Focus on location-dependent businesses.
- By Disaster Emergency Funds: Search for who is winning disaster emergency funds contracts.
- By Simplified Acquisition Procedure: Find agencies who prefer this vehicle.
It may be a bit overwhelming at first, as being a business owner also requires you to focus on day-to-day activities. However, if you or someone you delegate dedicate time (i.e., incorporate time segments on your calendar), it will become a “must-have” task for your business. Especially since the time spent is directly tied to potential revenue.
In Summary
Yes, you can grow your business with the above strategies and by taking advantage of the Government Buying Cycle in 2022, but don’t stop there. This trend is cyclical, so be prepared to benefit from it yearly with a clear plan to ramp up early.
If you’re looking to learn how to take advantage of the government’s fiscal year, attend our upcoming class:ing to learn how to take advantage of the government’s fiscal year, check out our upcoming classes.
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