As September 30 approaches, government contractors should keep in mind that the end of the federal government’s fiscal year brings unique opportunities — and unique risks. Agencies are under pressure to obligate remaining funds, finalize contract actions, and prepare for the new fiscal year. Contractors who understand these dynamics can position themselves for success while avoiding common pitfalls. Below are some insider tips:
1. Anticipate Increased Procurement Activity
The fourth quarter of the government’s fiscal year (July through September) often accounts for a disproportionate share of contract awards. Agencies that have delayed procurements or have unobligated funds may rush to obligate dollars before the fiscal year closes. As such, contractors should be proactive in monitoring procurement forecasts, keeping in close contact with agency customers, and ensuring that their proposals and pricing are ready to move quickly.
2. Be Prepared for Accelerated Timelines
End-of-year contract actions are often subject to compressed timelines. Solicitations may be released with short proposal deadlines, and contracting officers may request expedited responses to clarification questions. Thus, contractors should have their capture and proposal teams on standby and should establish internal processes to respond quickly without sacrificing compliance.
3. Watch Out for Sole-Source and Limited Competition Awards
To meet spending deadlines, agencies sometimes turn to sole-source awards, contract extensions, or use of existing vehicles like GSA schedules or IDIQ contracts. Accordingly, contractors should make sure their contract vehicles are current and compliant, and they should also be alert to potential opportunities for modifications, task orders, or options.
4. Ensure Compliance Amid the Rush
The push to obligate funds can sometimes lead contractors (and agencies) to cut corners. Resist that temptation. Inaccurate or incomplete proposals, unbalanced pricing, or noncompliance with solicitation requirements can jeopardize awards or lead to later challenges. Remember that, even in the fourth quarter, the same procurement rules apply — and agencies may face heightened scrutiny from auditors and oversight bodies.
5. Monitor Agency Funding and Potential Continuing Resolutions
While agencies work to spend down current-year funds, contractors should also prepare for the possibility of a continuing resolution (CR) at the start of the new fiscal year. A CR may limit agencies to prior-year spending levels and restrict the start of new programs. Contractors should plan accordingly for potential delays in new awards after October 1.
6. Keep an Eye on Bid Protests and Post-Award Issues
Last but not least, the volume of contract awards at the end of the fiscal year can also lead to an uptick in bid protests. Thus, contractors should be ready to protect their rights if they believe an award decision was improper. At the same time, contractors receiving awards should be prepared for the possibility that competitors may file protests, which can delay performance. A refresher for government contractors on bid protest intervention can be found here.
Conclusion
The end of the government’s fiscal year is a busy and critical period for contractors. By anticipating accelerated timelines, maintaining compliance, monitoring bid protest activity, and strategically positioning themselves for sole-source and task order opportunities, contractors can maximize success during this hectic season while minimizing legal and compliance risks.
If you have any questions about any of the foregoing, please do not hesitate to contact Aron Beezley or Nathaniel Greeson.