Last year, over one-third of all government spending occurred during the fourth quarter. It’s that time of year again! The question is, are you ready to take advantage of the fourth quarter and secure your share of this spending?
Understanding the Federal Fiscal Year
The federal fiscal year begins on October 1st and ends on September 30th. The fourth quarter spans July, August, and September.
During fiscal year 2023, $758.6 billion was awarded to businesses, including federal contracts, with $246.4 billion occurring in the fourth quarter. This represents 32.4% of all spending. Ideally, each quarter should account for 25% of the annual spending. However, the fourth quarter presents the greatest opportunity to government contracts.
The “Use It or Lose It” Phenomenon in Government Fund Allocation
In the fourth quarter, agencies are keenly aware of the need to deploy any remaining budget before the end of the fiscal year to avoid losing that funding in the following year. This urgency creates significant opportunities for contractors.
Contracting officers will actively seek qualified gov contracting companies to provide needed products and services. If your business has been engaging with government agencies and procurement officers throughout the year, even if you haven’t secured a contract yet, you might be well-positioned to capitalize on fourth-quarter opportunities.
Tips for End-of-Year Business Development
Nurture Relationships
If you have been promoting your business throughout the year, contracting officers may already know who you are and what you offer. Continue to nurture these relationships by reminding them of your company’s qualifications and capabilities. However, be mindful that this is a busy time for contracting officers. Make it easy for them to engage with you without being pushy.
Ensure Government Procurement Readiness
Your branding should reflect the million-dollar contracts you aim to win. Ensure your NAICS codes and certifications are up-to-date in SAM.gov and on your capability statements. Include your GSA Schedules, IDIQs, or other contracting vehicles in your marketing materials.
Prepare Forecasted Opportunities
Create a list of forecasted government bids with the agencies you are interested in. During the fourth quarter, engaging a contracting officer about specific upcoming forecasts is allowed, although direct discussion of these projects is not possible until they are formally posted.
Leverage Teaming Partners
Utilize the capabilities of your teaming partners to capture fourth-quarter opportunities. Being part of a contracting community like the Teaming Co-op Program can simplify finding suitable teaming partners. Learn more at www.teamingco-op.com.
Pursue Sole Source Contracts
With your small business certifications, you can pursue sole source contracts, which are direct awards without competitive bidding. Small business certifications allow you to receive sole source contracts up to $4.5 million for civilian agencies and up to $8 million for DoD agencies.
Discuss Simplified Acquisition Procedures (SAP) and Micro Purchases
Prepare to discuss SAPs (projects under $250,000) and Micro Purchases (projects under $10,000) as part of federal procurement with agency buyers. Agencies must make every effort to buy from qualified small businesses for SAPs, and Micro Purchases are an efficient way to make awards.
Sample Email for Engaging Agency Buyers
Subject Line: Seeking Sole Source Contracts During the 4th Quarter
Dear [POC’s First Name],
I understand the urgency of your procurement challenges during the last quarter of this fiscal year. That’s why I’m writing this email to you.
We can assist with any Simplified Acquisition needs, Micro-Purchases, or Sole Source initiatives.
I’m with [Your Company Name] and we want to make your buying decision easy.
Our company is a (SDVOSB, HUBZone, 8(a), WOSB, or any other relevant certifications).
We specialize in:
- Bullet point #1
- Bullet point #2
- Bullet point #3
We can respond very quickly to any Simplified Acquisition needs, Micro-Purchases, or Sole Source initiatives.
Very Truly Yours,
[Your Name]
[Your Title]
[Your Email]
[Your Website]
[Your Office Phone]
UEI #: [Your UEI Number]
See attached – CAPABILITY STATEMENT
Conclusion
My hope is that your business grows this year by maximizing your win rate during the fourth quarter. Let us know what other techniques you’ve used to help your company succeed in the fourth quarter.
ABOUT THE AUTHOR: Abraham Xiong, CCM™
Abraham Xiong is a small business advocate, social entrepreneur, executive trainer, technology enthusiast, business coach, and community leader. He is the Founder of www.GovAssociation.org and www.GovGenie.com, which are organizations assisting small businesses to access more contract opportunities in the B2G marketplace.
Abraham can be reached at: info@govcontractors.org
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