This article has been updated as of July 15th, 2024
Understanding federal spending patterns is essential for success in federal contracting. The 4th quarter holds particular significance, presenting unique opportunities for informed contractors. As the fiscal year ends, a significant increase in federal spending emerges, creating a window of lucrative opportunities.
Understanding Year-End Federal Spending
The U.S. federal fiscal year spans from October 1 to September 30. As we approach the year-end, a surge in spending is driven by the "use it or lose it" budgeting policy. This policy requires agencies to spend their entire budget within the fiscal year to avoid potential budget cuts in the subsequent year. Consequently, this results in an uptick in contract opportunities. According to recent data, federal spending in the 4th quarter has consistently shown significant increases, illustrating the robust market for contracting opportunities.