Even as the clock ticks down to the end of the federal fiscal year – Sept. 30 – businesses can still take advantage of last-minute opportunities, Government Product News senior editor Mike Keating writes in this Expert’s Corner.

Experienced contractors and vendors know that right now — before the end of the federal fiscal year on Sept. 30 — is a great time to land government business. For 12 years running, in fact, federal agencies have awarded more purchasing contracts in the fourth quarter than in the previous three quarters, according to a Federal Procurement Data System report.

Federal buying and spending accelerates near the end of the federal fiscal year, Michelle Hermelee, a government consultant at BH Sky Associates, says. Hermelee’s Princeton, N.J.-based firm assists companies trying to enter the government market by identifying, securing, negotiating, marketing and managing contracts with all levels of government.

Hermelee notes that the speed-up can be especially pronounced for purchases that come under the bid threshold that covers smaller dollar-value purchases. “Maybe those procurements at the end of the fiscal year aren’t going to go out to public bid,” she says. “The agencies are in a hurry — they’ve only got a couple of days. With the money to spend, and it might be a couple of thousand dollars, they might look in the agency’s own internal database of vendors.”

At that point, near the end of the fiscal year, it’s especially crucial for businesses to know and understand their federal customers, according to Hermelee. “It’s important that vendors know who is buying at the agency, as well as which agencies are buying the products and services that the vendor is selling. Vendors need to get in the agency’s system and get in front of agency personnel,” she says.

“Give the agency a call. Get out there, and make sure you’ve registered as a vendor in the agency’s database,” Hermelee advises.

The Griffin Method (TGM) is one organization that contractors and vendors turn to when they need help selling to federal agencies. The Arlington, Va.-based consulting firm provides services and products that help government contractors navigate the federal procurement and contracting process — from the fundamentals of locating federal opportunities to the steps needed to write winning proposals.

“There are a couple of ‘best strategies’ that vendors can use to capture federal business during the annual end-of-fiscal-year rush to close out federal contracts,” TGM founder and CEO Dick Griffin, who managed contracts at three federal agencies, tells IMT.

“The very best is to have been in dialogue with a program office that buys what you sell earlier in the year,” Griffin continues. “Having a prepackaged offer to do something they know they need to do helps a lot.

“Because the time between announcement and response is short, there usually is not enough time for a program office to develop a good statement of work. So, savvy contractors are handing out white papers now, hoping the program offices will use the ideas and suggestions as guidelines for the RFP/RFQ they assume will have to happen before Sept. 30,” Griffin concludes.

Late-Night Purchasing Activity on September 30
An Air Force contracting officer in the 1990s, Richard Pennington recalls some late-night purchasing sessions as the federal fiscal year drew to a close. “We used to have midnight contract-signing parties on Sept. 30 to get a percentage of the contract obligated prior to the end of the fiscal year,” he recalls.

Pennington, now an attorney at the Denver office of the Atlanta, Ga.-based McKenna Long & Aldridge LLP law firm, which specializes in government contracts, says that the “bona fide needs” rule applies to end-of-fiscal year contracts.

The rule states that, as long as the government commits to the obligation prior to the time the fiscal year expires, it is a valid obligation that can be charged against that particular fiscal year, Pennington says.

Mark Amtower, a government marketing expert at Amtower & Co. and the author of the upcoming book Selling to the Government: What it Takes to Compete and Win in the World’s Largest Market, also says it’s possible that federal buying offices may be burning the midnight oil on Sept. 30.

“Orders will come in late that night, so if your sales execs cannot do the financial side of the transaction, make certain someone is on hand — in all time zones — who can close the deal before midnight where the order comes from,” Amtower advises, before going on to urge manufacturers and other prospective vendors to stay visible in the federal marketplace.

“Sell where they know you,” Amtower says. “Go to current or recent federal accounts and let them know you are available. Help them close the sale before midnight on Sept. 30, 2010.”

Michael Keating is senior editor for Government Product News and a contributing editor for American City and County, both published by Penton Media Inc. His complete second-half 2010 government budget forecast is available at GovPro.com. Keating has written articles on the government market for more than 100 publications, including USA Today, Sanitary Maintenance, IndustryWeek and the Costco Connection. Mike can be reached through his website, MikeKeat.net.