The federal fiscal year runs from the first day of October through the last day of September the following year. For example, Fiscal Year 2023 runs from October 1, 2022, through September 30, 3023. That means the end of the year is fast approaching.
What does this mean for Federal Contractors?
The Government is now pressed to use up the remainder of its budget. Contracts must be awarded, and money must be spent. If you haven’t put your bid on those big contracts, now is the time.
So, what exactly is a fiscal year?
This is the annual timeframe that companies and governments use for both budgeting and financial reporting. The start and end time frame of a fiscal year often is different from a normal calendar year. Used in federal tax filing and budget documents for reporting expenses and income, the fiscal year is utilized in accounting for the Government.
The year is broken down into quarters
- Quarter 1 is from October through December
- Quarter 2 is from January through March
- Quarter 3 is from April through June
- Quarter 4 is from July through September
The Government’s Fiscal Year hasn’t always been October through September.
The Congressional Budget and Impoundment Control Act made the change to the Fiscal year back in 1974. Before then, the fiscal year was considered July 1st through June 30th. The year was changed to allow more time for Congress to agree upon a budget.
What’s the Fiscal Year Budget for 2023?
The budget is $5.8 Trillion for the fiscal year 2023, a record amount of spending. As of September 1st, the government has spent a total of 5.3 trillion dollars since the fiscal year began on October 1, 2022. Meaning by September 30, 2023, the government must spend another 4.7 trillion dollars. That’s a lot of spending left for one month.
Small Business Spending in Fiscal Year 2022
Every year the government must utilize small businesses in the purchase of goods and services. Looking back historically can paint a good prediction of what the spending will be like next year. Reviewing the totals for 2022 shows that spending on a small business level exceeded its obligation. The small business contracting goal was 23% in Fiscal Year 2022. Results were an all-time high with an investment of $162.9 Billion in the small business economy, an increase of $8.7 Billion from fiscal year 2021.
The high percentage of 26.5 of federal contracting dollars for small businesses is expected to be surpassed this fiscal year.
Let’s break this down by socio-economic certification.
- Small Disadvantaged Business spending exceeded its goal of 11% spending.
- SDVOSB spending exceeded its goal of 3% reaching 4.6% and increased $3 Billion over the previous year.
- HUBZone spending did not meet its 3% goal but was granted a record-breaking $16.3 Billion in procurement, with a $3 Billion increase over the previous year.
- WOSB spending was $26 Billion which ended the year with 4.6% barely missing the 5% goal
- Small Business Subcontracting goals were exceeded, bringing 30.9% or $79.1 Billion to small business contractors.
Are you qualified to capitalize on end-of-year spending?
To increase your revenue through Government contracting, follow these guidlines.
- Must have a UEI Number and CAGE code
- Be registered with SAM with optimal NAICS and PCS codes.
- Get your socio-economic certification to qualify for set aside contracts.
- Find contracts that are scheduled to be awarded within 30 days.
- Submit the award-winning bid.
Not sure how to become a successful government contractor
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Contact us today to schedule a ready assessment with one of our FBDAs. You can head over to the FBDA page and pick the person you would like to work with. There will be an option to schedule directly with your choice of advisors. You can also submit a form anywhere on our website and one of our advisors will reach out to you.
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