Government FYE

For all the U.S. Government contractors out there, this is the best of time. This is the worst of time. As fiscal year end quickly approaches on September 30th, there are significant questions to ask yourself as a business owner and contractor. This is the time to think forward and position yourself for success in FY24. But you have to start now.

In my 25 years as a government contractor, both running a practice in a major consulting firm, then owning my own company, I learned quite a few hard truths surrounding the flurry of activity between June and October each year. I'll go through some high points and low points in sequence to set the picture of why having a plan and processes in place are critical to success in capturing year end spending and pivoting into the following fiscal year with goals and a plan to achieve them.

In May/June, the government sweeps up money that is not obligated. The money is then reallocated across the agency, then anything remaining goes back to Treasury or OMB for reallocation. Agencies do not want to give any money back as it will likely result in a reduced budget the next year, so there is incentive to reallocate within or obligate it on contracts. At this point, a strong GovCon will know the status of spending and where the agency is planning to fund or which projects at current customers will be priorities and start to position for the award.

• Do you know what the spending plans and immediate needs of the government agencies where you have contracts?
• Is there year end spending to occur in your areas of service?
• What contracting vehicles can you offer or what is being anticipated?
• If you have certification that permits sole source, have you had the discussions with program and contracting officers of your capabilities and how you can help?

The next notable period is June/July/August when a flurry of RFPs are posted. Many are schedule-specific, so having the right schedule contract is critical here, or partnering with a firm who has the contracting vehicle is an option. RFPs are posted and the period to respond is shortened as the award is needed before the FYE. This is a great opportunity to break into an agency or expand your reach within existing relationships as many are set-aside dependent and schedule dependent. The pool of competitors is smaller. I also point out this is a great time for sole sourcing!

• Do you have the relationships in place to act swiftly and confidently for teaming opportunities?
• Do you have the personnel and processes and tools in place to turn out proposals rapidly and at a high, responsive quality?
• Do you have the reach to identify key personnel with specific backgrounds to include in your proposals and work?

Finally, it is now September. The best of times and worst of times. Awards are made and each day is an opportunity to be a game-changer for a small business. It is also a time of heartbreak as what was thought to be a winning proposal did not get the award. Why? You won't know immediately, but it is important to find out. Remember, the work does not need to be completed, but the kick-off will occur before September 30th, so any business will need to be ready to jump and do it quickly.

• Do you have the infrastructure in place to deliver?
• Did anything or anyone change from the proposal to the award that will affect the award?
• Are you ready to start work with the right people and right tools in place?

A business that picks up a few awards during fiscal year end is one that is ready to win. Having the knowledge, then acting on it with systems in place, is a formula for success. Good luck with the remainder of FY23 and lets get ready for FY24!

If you are winning and are too busy to reach out to me, schedule the appointment via https://calendly.com/libby-coaching for after October 1st. There will be plenty of time then, as it is likely the government is shutting down (again). Win, lose, or whatever, I will help you get in place for next year. Give me a call or email me. Happy Year End.