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The federal government’s fiscal year doesn’t follow the traditional January-to-December calendar. Instead, it starts October 1st and ends September 30th every year. This distinction isn’t just bureaucratic trivia, for government contractors, it defines when money is available, when contracts are awarded, and how to time your strategy to maximize success.
In other words, understanding the fiscal year isn’t optional. It’s your advantage.
What Is the Federal Fiscal Year?
The federal fiscal year (FY) is the U.S. government’s annual accounting period, running from October 1 through September 30. Every federal agency receives a budget that is tied to this fiscal calendar. Agencies are expected to spend their allocated funds within that time period, or risk losing them.
This leads to the infamous “use it or lose it” phenomenon, especially in Q4 (July 1 to September 30), when agency spending spikes dramatically. In fact, in FY2023, 33% of all government contract spending occurred in Q4, with 16% in September alone【9†Gov Calendar Year & Shutdown.txt†L38-L49】.
Why It Matters: Q4 as Contracting Christmas
If you think of September as Black Friday for government contractors, you wouldn’t be far off. The final quarter of the fiscal year is often called “Contracting Christmas,” with agencies racing to obligate remaining funds before they expire.
For prepared contractors, this is an opportunity bonanza. For those who aren’t ready, it’s a missed window that won’t reopen until next year.
Example:
A janitorial services company that monitored forecasted opportunities in Q2 and positioned themselves by mid-Q3, could see a flurry of awards in September. If they waited until mid-Q4 to prepare, they’d likely be too late to compete.
The Shutdown Factor
Complicating matters, Q4 is also when Congress sometimes fails to pass a budget, leading to a government shutdown. During a shutdown:
- Most contract officers are furloughed
- No new awards are made
- Active RFPs may be paused or extended
This doesn’t mean your planning should stop. In fact, shutdown periods are ideal for improving your proposals, updating your pipeline, or conducting outreach to primes for teaming. As SAS-GPS often reminds clients, “it’s not a break—it’s prep time.”【9†Gov Calendar Year & Shutdown.txt†L46-L49】
Timing is Strategy: How to Get Ahead
The real secret to beating the fiscal year cycle is not reacting to it—it’s working ahead of it. Government agencies begin budgeting almost two years in advance. If you’re only chasing live RFPs, you’re behind.
Here’s how forward-looking firms operate:
- 18–24 Months Out: Track budget requests and agency forecasts.
- 12 Months Out: Begin capability briefings and shaping discussions.
- 6 Months Out: Finalize teaming, compliance checklists, and pricing strategies.
- Q3 (Apr-Jun): Prepare proposal teams, write boilerplate content.
- Q4 (Jul-Sep): Execute and submit.
SAS-GPS Can Help You Stay Ahead
SAS-GPS supports businesses throughout the fiscal year, but our most successful clients engage us before the Q4 rush. We:
- Build out pipelines based on real agency forecasts (Pipeline Development Services)
- Craft pre-positioning strategies for set-aside and open competitions (Federal Teaming Support)
- Offer full proposal team support with fixed pricing (Government Proposal Writing Services)
If you’re scrambling in September, you are already late. Let us help you shift to a proactive fiscal year strategy that drives consistent wins.
