FY2019 Q4 Outlook: What Does It Mean for Your Business?
It’s no secret that Q4 is the government’s busy season, but what does (or can) that mean for your business?
The Federal Government works by the fiscal year (FY), which is separated into the four quarters listed below.
> First Quarter (Q1): October 1 – December 31
> Second Quarter (Q2): January 1 – March 31
> Third Quarter (Q3): April 1 – June 30
> Fourth Quarter (Q4): July 1 – September 30
Federal Government Contractors often pay special attention to Q4 because it is historically known for its surge in agency spending. This is because they have a budget for the entire fiscal year and if they do not use it, they lose it.
The chart below shows the average fiscal year spending by quarter from 2012 through 2016. Furthermore, September alone accounts for over 50% of Q4 spending, so there’s still time!
Maximizing Q4 Opportunities
In the last quarter, reaching out to agencies that you have already built relationships with is a great way to remind them of your products/services and may prompt them to allocate some of their remaining budget to your company.
GMP can also help our partners with an Unfinanced Requirement (UFR) campaign. A UFR campaign is when GMP submits an unsolicited proposal to a government agency with the intent of that agency using a portion of their remaining funds to purchase our value-added solutions. In other words, the agency has additional funds that were previously allocated for a different purpose or not allocated at all, and now need to be distributed elsewhere.
In addition, ensure that everything with your GSA Schedule and other contracts is up to date. Make modifications and check that your prices, products and services are up to date. If you need assistance with this effort, please reach out to GMP for help.
IT Spending for Q4 FY19
Federal agencies are poised to spend more on unclassified information technology products and services in fiscal 2019 than ever before — just under $70 billion for the year — leaving about $29 billion in expected IT spending for the last quarter of fiscal 2019, according to a Bloomberg Government estimate.
The SEWP program spends a large portion of its annual obligations in Q4. Since fiscal 2015, SEWP IV and V fourth quarter obligations have accounted for an annual average of 53% of its total obligations. That’s because SEWP makes some changes to its acquisition operations to account for the end-of-year rush, including longer hours and more outreach. This makes it easier for agencies to award contracts quickly as money expires.
VA & DoD Spending
According to the Federal Procurement Data System (FPDS), the Department of Defense (DoD) and Veterans Affairs (VA) were the biggest spenders in Q4 FY18, spending $119 billion+ and $11 billion+ respectively, and and are expected to do the same this quarter. GMP currently serves more than 75% of the VA and DoD facilities, and historically these agencies have accounted for more than 70% of our government customer base.
GMP actively monitors the market for opportunities that arise with these agencies, but if you have any leads that you would like our assistance with please feel free to contact us at any time. GMP can also help you approach these agencies by providing contacts, and a market analysis of past contracts that were awarded for competing solutions. If you would like access to this information, feel free to submit a market analysis request to email@example.com.
We at GMP are here to serve you. We will have extended business hours for FY Q4 and we will do our best to process short-notice quote requests. If you have an opportunity due in less than 24 hours, please give your GMP Account Manager a quick call to let them know.