4th Quarter Spending Expected to Decline

September 26, 2016

The Year-End Spending Rush Is On, But It’s Not What It Used to Be

Source: Government Executive, Katherine McIntire Peters, September 16, 2016

The federal equivalent of Black Friday isn’t what it used to be. Conventional wisdom has it that agencies rush to spend their budgets in the final quarter of the fiscal year, but a new analysis of federal contracting data shows that Q4 spending is declining after years of elevated levels, with more agencies obligating a larger share of funds in the first quarter of the fiscal year.

The analyst report by Arlington, Va.-based big data and analytics firm Govini, “Positioning for 2017: Competitive Outlook in Defense and Civilian Agencies,” attributes the shift in part to greater budget certainty. Govini has a data sharing partnership with Government Executive Media Group.

According to the report: “Nearly 40 percent of all cabinet-level agencies had a decrease in Q4 share of FY15 spending compared to FY14, and many are on-track to do so again in FY16. Both Defense and civilian agencies are contributing to the softening of the year-end spending spike.”

The Justice Department had the largest drop in Q4 spending, declining by 8 percentage points from 2014. READ MORE….

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