Use Q4 to Your Advantage
It may be back to school season, but it is also nearly Federal fiscal year end.
Every year as September 30th approaches, the same pattern plays out across federal contracting: agencies are sitting on appropriated funds they have to spend before the Federal Fiscal Year closes, and their contracting offices are stretched thinner than ever while trying to spend it. The result: a Q4 full of contract modifications, bridge contracts, and sole source awards. For contractors who know how to position themselves, it is a quarter full of opportunity. We're currently advising clients to lean into this dynamic rather than wait it out. Here's why, and how to think about it.
Why Q4 looks the way it does
Federal agencies operate on "use it or lose it" appropriated funding. If money isn't obligated by fiscal year end, it typically goes away. At the same time, contracting officers and program offices are managing heavier workloads with the same (or fewer) staff, which makes running a brand-new, full-and-open competition in the final weeks of the fiscal year impractical. Modifications, bridges, and sole source justifications become the path of least resistance for getting dollars out the door on time. That's not a loophole; it's simply how the system responds to the calendar. The contractors who benefit most are the ones already having the right conversations before the crunch hits.
Three questions worth asking right now
1. Could your current contract be modified to address additional client needs?
Look at the work you're already doing for an agency and ask honestly: what related needs have come up that aren't formally in scope yet? Program offices are often more receptive than you'd expect to a modification that solves a real problem they already know they have – especially if it lets them spend funds against a vehicle that's already vetted and in place.
2. Could you modify the contract to meet more stringent fixed-price requirements (and adjust scope accordingly)?
Many agencies are under pressure to shift work toward firm-fixed-price arrangements for better cost predictability. If that shift is coming for your contract, get ahead of it. Think through what scope adjustments or assumptions would need to accompany a move to fixed price, and bring a proposed structure to the table rather than waiting to be asked.
3. What small pilot projects could you run through your GSA Schedule or an existing BPA?
If a new full competition isn't realistic before fiscal year end, a small pilot task order under an existing GSA Schedule or Blanket Purchase Agreement can be. Pilots are low-risk for the agency, fast to execute, and when done well become the foundation for a larger scope of work down the line.
The conversation matters more than the paperwork
None of this works as a cold pitch dropped in an email during the last weeks of September. It works because the conversation started early - with your contracting officer, with your program officer, with anyone who has visibility into unobligated funds and unmet needs. Contracting officers in particular are navigating heavy volume this time of year; contractors who show up with a clear, well-scoped ask make their job easier, not harder.
If you haven't already had these conversations, now is the time. Ask what funding pressures your contracting office and program office are under. Ask directly whether a modification, a small pilot, or a scope adjustment could help them solve a problem they're already facing. Bring options, not just requests.
The clock is ticking
September 30 is closer than it feels. Agencies that still have funds to obligate are moving quickly, and the contractors who've laid the groundwork (clear proposed scope, a rationale that helps the agency, and a relationship with the people who can act on it) are the ones positioned to benefit.
If you want to talk through how this applies to your specific contract or vehicle, we're happy to help you think it through before the quickly narrowing window closes.
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