The federal fiscal year-end spending rush
Why federal agencies award so many contracts in September, how the fiscal year and appropriations drive it, and how contractors prepare for the busiest buying season.
Why September is busy
The federal fiscal year runs from October 1 to September 30. Much of what agencies spend on contracts comes from annual appropriations that can be committed (obligated) only during the fiscal year they are for; money not obligated by September 30 generally can't be used for new purchases after that. So agencies finish their buying plans in the fourth quarter, and contract awards peak in September, especially in its last days.
A late start adds to it: when a year begins under a continuing resolution, agencies often hold new starts until a full-year appropriation passes, which pushes buying later in the year.
What gets bought at year-end
Year-end buying leans toward what can be awarded quickly: orders under existing contract vehicles (GSA Schedules, GWACs, IDIQs and BPAs), products and equipment, software and licenses, and options on existing contracts. Large new competitions are rarely started and finished in the last weeks.
How contractors prepare
- Hold the vehicles agencies use for fast orders, or team with companies that do.
- Talk with program and contracting offices in the spring and summer, when year-end plans are made.
- Have quotes, capability statements and pricing ready to send quickly in August and September.
- Check each agency's past year-end awards: which offices rush, and what they buy.
On SpendQuery
Official sources
Questions people ask
When does the federal fiscal year end?
September 30. The new fiscal year starts October 1; fiscal 2027 runs from October 1, 2026 to September 30, 2027.
What is use-it-or-lose-it spending?
The pressure to obligate annual funds before they expire at fiscal year-end. Agencies plan for it, and contract awards rise sharply in September as a result.
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Updated 2026-10-13. General information, not legal advice; the solicitation and the FAR govern each purchase.