The federal budget cycle dictates when agencies spend, when they're receptive to pitches, and when your proposals matter most. Here's the calendar every government vendor needs to understand.
Every September, something strange happens in the federal government. Agencies that spent eleven months deliberating, reviewing, and delaying suddenly start awarding contracts at a frantic pace. Billions of dollars flow in weeks. Contracting officers work weekends. Companies that submitted proposals months ago get phone calls saying "we're ready to move."
Then October 1st arrives — the new fiscal year — and the frenzy stops. The pipeline goes quiet. New budgets are still being allocated. And for the next few months, it feels like nothing is happening.
This cycle isn't random. It's structural. And understanding it is the difference between timing your government sales efforts for maximum impact and shouting into the void.
The federal government's fiscal year runs from October 1 to September 30. This is different from the calendar year, and it matters because most federal funding must be obligated (legally committed to a contract) within the fiscal year it's appropriated. Money that isn't spent by September 30 often disappears.
This creates a rhythm that every government vendor needs to internalize:
The federal budget cycle is like a river. In the fall and winter, it's a trickle. By spring, it's flowing steadily. In summer, it's a flood. Companies that launch their boats during the flood catch the current. Companies that show up after September 30 find the river dry.
This quarter feels slow, but it's actually the most important one for positioning. Here's what's happening behind the scenes:
Budget distribution: Congress (ideally) passed an appropriations bill, and agencies are figuring out how to allocate their funding across programs. Program managers are writing spend plans. This is when priorities get set for the year.
What you should be doing:
The companies that invest in Q1 relationship-building are the ones that win Q4 contracts. By the time an RFP drops, the winner is usually already known to the program office.
This is when the government's needs crystallize into acquisition documents.
What's happening:
What you should be doing:
This is when the actual competitions begin.
What's happening:
What you should be doing:
September is the Super Bowl of government contracting. More contracts are awarded in September than in any other month — sometimes more than in the previous three months combined.
Why the rush: Most federal appropriations are "one-year money" — they expire on September 30. Agencies that don't obligate their funds lose them. Nobody wants to explain to Congress why they sent money back. So the last quarter — and especially the last month — is a frenzy of awards.
What you should be doing:
Here's the reality that complicates everything: Congress rarely passes appropriations on time. When they don't, the government operates under a Continuing Resolution (CR) — a temporary funding measure that typically keeps spending at the previous year's level.
CRs create uncertainty. Agencies can't start new programs. Large contracts get delayed. Some offices slow spending to a crawl, waiting for a real budget. Others continue spending at the previous year's rate, which means existing contracts keep flowing but new starts are frozen.
For vendors, CRs mean:
The best government sales organizations align their entire year around the federal budget cycle:
This isn't a suggestion — it's how the companies that consistently win federal contracts operate. The budget cycle is the heartbeat of government procurement. Time your efforts to its rhythm, and the system works in your favor. Fight against it, and you'll spend a lot of energy wondering why nothing is happening.
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