One of the biggest hurdles government contractors face is getting in front of the right government buyer to demonstrate their product or service’s value.

Unfortunately several government contractors are unaware of the impact a government’s budget cycle has on a leader’s decision to procure goods. As a former senior government executive I can tell you budget cycle timing matters.

I can not count the number of times I had to tell a government contractor to come back in a few months or even the following year because my state and local budget funds were already earmarked or worse yet spent. Oftentimes leaving them frustrated and possibly pushy because they don’t understand the budget process.

Utilizing the below guidelines can help determine the best times to leverage your government contracting strategies and earn your ideal customer’s trust along the way.

First Quarter

Most local governments follow the June – July budget schedule, some follow the federal government’s September – October cycle, while others prefer January – December. Regardless of when a government starts and ends their budget process, each will inevitably have a first quarter.

During the first three months of the cycle is when money for the current fiscal year becomes available, new projects are launched, and most RFPs are released.

First quarter to do:

• Research RFP announcements and apply when applicable
• Review the government agency’s finalized budget for their fiscal year goals and upcoming funded projects
• Offer support to government leaders on their upcoming projects.

Second Quarter

By the second quarter, first quarter RFPs are entering the review phase and funded government projects are still being launched.

Second quarter to do:

• Continue researching RFP announcements and apply when applicable
• Regularly engage with your ideal government buyers to continuously earn their trust and possible influence future contracting opportunities

Third Quarter

During the third quarter, the fiscal year RFPs are still being reviewed and awarded. Government leaders and departments determine what surplus money they might have and start spending their use or lose funding.

Government decision makers start submitting requests and plans for the upcoming fiscal year’s budget.

Third quarter to do:

• Plan to reach out more frequently to your ideal government buyer as they might be looking for quick one time solutions to burn their use or lose funding. This is also an excellent time to propose they consider your product or service for a short term pilot project.
• Building on the trust you earned during quarter one and two, use the third quarter to possibly influence your ideal government buyer’s decision to add funding to their budget for a future project or RFP.

Fourth Quarter

The fourth quarter is busy for the government but not in terms of new government contracting opportunities. Government buyers are usually heads down with their budget hearings and final budget preparations and might not have time to discuss products and services; unless a compelling event occurs during this time.

Fourth quarter to do:

• Don’t take a government leader’s brush off personally
• Continue to send resources and articles to help your ideal government buyer generate ideas for their upcoming fiscal year.

Unlike private sector companies, who can typically procure what they want when they want, state and local governments are often limited by highly restrictive budgets.

Knowing your ideal government customer’s budget cycle can help you plan your approach and possibly influence future opportunities.

If you’re interested in learning how Drake Strategy & Associates can heIp you use a government’s budget cycle to your advantage, schedule a meeting today.