4th quarter spending rush by the numbers
Daniel Snyder, deputy director of Government Contracts Research at Bloomberg Government, gives a data-based look at how the next five weeks will play out, and which agencies will try to spend the most money.
Because of how late Congress passed appropriations for Fiscal 2018, this year’s spending spree will likely be one of the largest ever. Daniel Snyder, Deputy Director of Government Contracts Research at Bloomberg Government looks at acquisition by the numbers, and says that not all agencies will be looking to offload cash at the same rate.
“At civilian agencies, there’s a vast difference in how agencies operate. An agency such as the Department of Energy obligates nearly all of its funds at the beginning of the year, USAID as well as Treasury also disperse their funds,” Snyder said. “Other agencies offer tremendous opportunity. HHS has about $10 billion of their $26 billion remaining. Veteran’s Affairs has about $6.5 billion. DHS also has about $6.7 billion.”
In addition, Snyder says the lion’s share of unallocated Q4 spending will likely go towards IT. The government spends $90 billion on IT yearly, some of which occurs in Government Wide Acquisition Contracts.
“If we look at contract by contract activity, about 50 percent of the GWAC dollars is going in the fourth quarter. If we trim that down to September alone, looking at the five weeks remaining, 30 percent of the 12 billion going on GWACs occurs in September. For the contract holders looking for the [part of the] $90 billion that is still addressable, there’s a great deal of activity that remains.”