The federal government’s fiscal year ends September 30th, and under a ‘use-it-or-lose-it’ stipulation, agencies that don’t spend their entire budget before the end of the fiscal year could find next year’s budget is reduced. This can lead to a buying spree during August and September.
Contractors who hold a multiple-award contract (such as a GSA schedule contract) often see a sharp increase in sales in the final quarter. These multi-award contracts are designed to make it easier for agencies to make purchases, since pricing and terms have been pre-negotiated.