For those of us in the government market, October is the time to break out the Happy New Year noisemakers and celebrate the new government fiscal year (GFY). Each August and September is a frantic race for agencies to spend their remaining budget, which poses opportunity but a lot of hard work for the vendors that want to earn some of this end-of-year shopping spree money. In recent years, the turning of the new fiscal year has also meant uncertainty. From shut downs to continuing resolutions, the switch from one year to the next has not been as smooth as flipping a calendar page.
A group of senators has come forth to raise concerns about this annual end-of-year frenzy. A recent report found that the last week of the fiscal year accounts for 12.3 percent of spending [on IT]. Numerous other reports over the years have found similar statistics. In 2017 this equated to $11 billion in the final week of the year -- almost five times more than the average weekly spending for that year. This spending happens because agencies are afraid if they do not use all the money they are allocated, their budgets will go down in the future. This group of senators, as well as others in government, are looking at options for reforming the system to eliminate the potential waste resulting from this fast spending. Continue reading