If you have a GSA Multiple Award Schedule (MAS) contract, understanding the government buying cycle is both beneficial and essential to your marketing success. This cycle, which is unique to the federal government, influences when and how federal agencies purchase goods and services. Just like with commercial markets, you want to learn more about your customers’ buying habits, budgets, and timeline. If you are more aware of how the cycle works and when spending is ramped up, you can plan your marketing strategy accordingly and have a better chance at winning contracts.
Understanding the Federal Government Buying Cycle
The government buying cycle is the process federal agencies go through when procuring goods and services. It typically includes planning and budgeting, solicitation, evaluation of proposals, awarding of contracts, and contract administration. This cycle is influenced by fiscal year constraints, budgetary approvals, and specific procurement regulations.
The government Fiscal Year most likely does not run on the same timeline as your company’s Fiscal Year. The federal government “New Year” begins on October 1st and runs through September 30th. So, by the end of the calendar year (December), the government FY is already finished with its first quarter.
This also means the budgets are not decided at the end of the calendar year. The first Monday in February is when the President’s budget request is submitted for each department and agency. This is typically delayed when there is an administration change. After a series of congressional hearings, the budget resolution is set for April 15 of each year meaning the official budget has to be decided on, but is almost never on time.
So, what does this have to do with your GSA Schedule? Let’s discuss below.
The Impact of the Buying Cycle on GSA Schedule Marketing
Timing is Everything: The government Fiscal Year begins on October 1st and ends on September 30th. Many agencies plan their budgets well in advance but often make their purchases toward the end of the Fiscal Year. Aligning your marketing efforts with this timing can increase your chances of capturing these opportunities.
Planning Ahead: Understanding the planning phase of the buying cycle is crucial. During this period, agencies identify their needs and allocate budgets. Engaging with potential buyers and decision-makers at this stage can position your offerings favorably when the actual buying begins. You can also ensure you are tuned into any new initiatives, budget raises, budget cuts, etc., so you know where to focus your efforts. When the budget is released sometime on or after April 15, make sure you are reviewing the numbers, especially for your target agencies.
Staying on top of Relevant RFPs: Request for Proposals (RFPs) are released during the solicitation phase, and often during Q4 of the Fiscal Year. Quick and effective responses to these RFPs are essential. If many RFPs are released in Q4, there may be several Requests for Information (RFIs) and Sources Sought Notices preceding Q4. It’s important you get your foot in the door early on these before the RFPs come out.
Q4 Spending Spree: Like any other company or organization, you don’t have to have a huge surplus because next year’s budgets will be adjusted. Q4 accounts for roughly 1/3 of all government spending. This is a huge opportunity for contractors to secure government business. Planning now to make a push in Q4 of next year (July 1-September 30) can ensure you have enough support and resources to go after any relevant opportunities, and your GSA Schedule contract is updated and managed successfully.
Strategies for Aligning with the Government Buying Cycle
Build Government and Industry Relationships Early
Establish relationships with key government officials and decision-makers before the buying season begins. This can give you insights into upcoming opportunities and requirements. If you want to expand your business and are considering a partnership whether it’s subcontracting, a Contractor Teaming Arrangement (CTA), or Joint Venture (JV), you’ll want to start the process early. Then when a relevant opportunity arrives, you have everything in place.
Tailor Your Offerings
Once you have identified target customers and opportunities, it’s important to customize your products or services to meet the unique needs of government clients, keeping in mind their procurement cycle and budgetary constraints. For example, if the government is heavily pushing an initiative such as cybersecurity or zero-trust measures, or there’s a new Executive Order (EO) about installing new Electric Vehicle charging ports, whatever it is—make the connection.
Use Tools to Your Advantage
You can use free sites such as USASpending.gov, FPDS, Schedule Sales Query Plus (SSQ)+ to learn more about current budgets, spending, awards, and trends. Additionally, you can use paid subscription tools and services to help you find marketing analysis, trends, and upcoming opportunities, especially ahead of Q4.
Planning for Future GSA Schedule Opportunities
Having a better grasp of the government buying cycle is an essential part in GSA Schedule marketing success. By timing your efforts, tailoring your offerings, and building strong relationships, you can significantly increase your chances of government business.
For more information on GSA Schedule marketing, check out our blogs:
- 3 Ways to Leverage Your GSA Schedule and Expand into New Markets
- GSA Schedule Marketing 101
- 10 Ways to Prepare Your GSA Schedule for Government Fiscal Year 2024
If you need help maintaining your GSA Schedule, or are interesting in getting a GSA Schedule for your company, one of our consultants can help guide you in the right direction.
