“Follow the money” is a catchphrase popularized by the 1976 docudrama film All the President’s Men, which suggests political corruption can be brought to light by examining money transfers between parties. While the term was popularized in the 1970s, the premise behind the statement has been around for over a century. In Latin, the term Cui bono? means “to whom is it a benefit?”
Federal Funding Transparency
The Federal Funding Accountability and Transparency Act of 2006 (FFATA) was signed into law on September 26, 2006. The legislation required that federal contract, grant, loan, and other financial assistance awards of more than $25,000 be displayed on a publicly accessible and searchable website to give the American public access to information on how their tax dollars are being spent. In 2008, FFATA was amended by the Government Funding Transparency Act, which required prime recipients to report details on their first-tier sub-recipients for awards made as of October 1, 2010.
The Department of the Treasury (Treasury)—which runs the site—has taken steps to provide transparent information and foster accountability to the public on government spending. In 2014, the Digital Accountability and Transparency Act (DATA Act) was signed, and Booz Allen Hamilton, teaming with Kearney & Company, was brought on to build a new USASpending.gov site designed to give Americans a clearer understanding of how their tax dollars are spent.
Searching Federal Awards
The website enables searching of federal government contracts awarded from FY2008 to the present. Data is uploaded directly from more than a hundred federal agencies’ financial systems. Data is also pulled or derived from other government systems. For example, contract award data is pulled into USASpending.gov daily from the Federal Procurement Data System Next Generation (FPDS-NG), which is the system of record for federal procurement data; Financial Assistance award data is loaded in from the Financial Assistance Broker Submission system (FABS). In the end, more than four hundred points of data are collected.
Every agency has a Senior Accountable Official who must officially certify that the quarterly financial data submitted by their agency is accurate and complete. The agency’s data is published on USASpending.gov only after it has been certified.
As of May 31st, 2023, the Federal Government has spent 6.1 trillion dollars. It is likely we will have the first year ever where we hit the 10 trillion-dollar mark.
Leveraging USASpending.gov for Government Contracting
If you have a desire to win government contracts, USASpending.gov offers several ways to help grow your government contracting business:
- Search by NAICS Code: Determine which agencies spend the most money in your industry.
- Search by NAICS Code for Prime Contractors: Identify which prime contractors are winning contracts in your industry.
- Search by Type of Set-Aside: Learn which set-aside contracts have been awarded.
- Search by PSC Codes: Narrow the spending to specific areas of a NAICS code.
- Search by Location: Focus on contracts based on geographic location, especially if your business is location-dependent.
- Search for Disaster Emergency Funds Contracts: Identify who is winning Defense Department contracts and disaster emergency funds contracts.
- Search for Simplified Acquisition Procedure Awards: Find agencies that prefer this procurement vehicle.
Identifying Top Spending Agencies
When leveraging USASpending.gov to grow your government contracting business, one critical step is to identify the top agencies that allocate the most funds within your industry. This can help you target your efforts more effectively and understand where to focus your contracting strategies.
Top Spending Agencies:
- Department of Defense (DoD): The DoD is historically the largest spender on federal contracts, often accounting for a significant percentage of total federal contract expenditures. Monitoring DoD contract opportunities can help you tap into the substantial spending within defense and military sectors.
- Department of Veterans Affairs (VA): The VA also represents a major portion of federal spending, particularly in healthcare and veteran services.
- Department of Health and Human Services (HHS): HHS is another key agency with substantial spending, especially in health services and research.
- General Services Administration (GSA): GSA manages procurement for many other federal agencies, making it a significant player in federal contract spending.
- National Aeronautics and Space Administration (NASA): NASA spends considerable amounts on research and development contracts related to space exploration and aeronautics.
- Department of Energy (DOE): The DOE allocates a significant amount of funds for energy research, infrastructure, and technology development.
Steps to Identify Top Agencies
- Search by NAICS Codes: Use NAICS codes to determine which agencies are spending the most within your industry.
- Analyze Spending Data: Look at spending data to see which agencies are awarding the largest contracts.
- Monitor Award Trends: Track trends in contract awards to identify which agencies consistently allocate substantial funds.
- Explore DoD Contract Opportunities: Regularly check for DoD contract opportunities to stay informed about major defense-related contracts that may align with your business capabilities.
By focusing on these top agencies and aligning your offerings with their procurement needs, including exploring DoD contract opportunities, you can better position your company to secure federal contracts and grow your business in the government sector.
Conclusion
When was the last time you visited USASpending.gov? If you’re aiming to enhance your government contracting efforts, utilizing the website’s comprehensive data and insights is crucial. By understanding how federal funds are allocated and targeting the right agencies, including those offering federal contracting opportunities, you can strategically position your business for success in the competitive landscape of government contracts.
When was the last time you visited USASpending.gov?
Comments are closed