FedSubK Feature: The End of FY Madness: Things Contracting Officers Want You To Know
Updated: Dec 6, 2024
It's that time of year when I start reflecting on end of FY activities. For decades, I worked 60-70 hour weeks starting right after the July 4th holiday through September 30th. It was a grind and I'm not sure if industry necessarily understands, let alone appreciates, the mountains that get moved so that contracts are awarded by 11:59 pm on that last day, September 30th. (And, yes, I've signed my share of contracts at that very last moment.) I thought this year I'd share all the things I wish industry knew from the insiders perspective on what happens during an end of FY in the Federal contracting offices in every agency across the country.
Purchase Request Cutoff Dates
The purchase request package is the trigger to start an acquisition. It answers the six basic questions a KO (Contracting Officer, remember) needs in order to determine their next course of action:
- What is the scope of the work being procured (e.g., services, supplies, construction, R&D, utilities, etc.)?
- What is the random order of magnitude (ROM) estimate for the entire effort?
- What type of funds are being used (e.g., one-year, two-year, no-year), are they available, and if so, what is the committed amount (i.e., the amount fenced specifically for this contract)?
- What is the duration of the scoped effort?
- When does work need to begin?
Every contracting office sets dates by which requiring activities must have their completed purchase requests submitted in order to guarantee award by September 30th. The dates vary by type of action and dollar value based on the processing time required but generally speaking the customary cut-offs are--
- July 1st for large negotiated contracts,
- August 1st for negotiated task orders, and
- August 15th for all other small dollar actions.
This gives the Chief of Contracting a known workload. If only it were that easy.
A Typical Day in the Life of a Chief of Contracting at the End of FY.
It goes something like this:
- It's July 20th. The Commanding Officer (CO in DoD) has met with a customer agency and they just completed their scoping work on a very large key project for critical recurring services.
- He / She promised the customer in that meeting that we (i.e., my office) will have it awarded by September 30th.
- The project manager tells the Contracting Officer (KO in DoD).
- The KO tells me (Chief).
- I call the CO (Colonel) and say, "Sir, we have a July 1st cutoff for actions of this type and size that require a formal acquisition and are a competitive negotiated acquisition."
- Silence on the phone. We both know how it happened. They are a habitually late customer. It's not the first time and it won't be the last.
- The Commander promises my KO will have a complete purchase request package in a few days.
Tick-tock. Tick-tock. Days and more days go by. It's now August 1st and no purchase request package.
How many times do you think this same scenario happens in the last three months of the fiscal year? A few? A dozen? Try many times a week.
Are you starting to see how Requests for Proposal (RFPs) end up being released with short fuses for offer receipt dates? If not, let's talk about...
Procurement Action Lead Times (PALTs).
The PALT is the time between the initiation of a procurement action and the award of the contract. Most types contract actions have a designated PALT duration within which an award should be made. However, the more time lost early in the PALT by the program office or others in reviews and approvals is less for the Contracting Officer later in the process.
The simplified run down of what a Contracting Officer has to fit within the PALT to get every new contract action on the street, regardless of dollar value, is:
- Receive a complete purchase request package (e.g., estimates, scope, technical specifications, and special instructions) -- the preparation of which may or may not count against the PALT, depending on agency policy.
- Conduct market research.
- Develop an acquisition strategy and possibly a formal written acquisition plan (depending on that ROM estimate and use of existing contracts).
- Prepare bid, quote, or solicitation documents.
- Obtain pre-bid/pre-quote/pre-solicitation approvals and legal sufficiency concurrence.
- Issue a pre-solicitation notice (when required).
- Issue the bid, quote, or solicitation.
PALT also includes the offer/proposal period, answering questions during the solicitation period, review of offers, training and overseeing technical and price evaluation boards, documentation of findings, contract formation, award, unsuccessful offeror letters, debriefings, and even a potential protest.
The minimum PALT for the most simple negotiated new contract is 60 days with half of that being the offer / proposal period.
Then there shorter PALTs for task orders and purchase orders at lower dollar values, and other types of purchases (i.e., Blanket Purchase Agreements (BPA), BPA calls, Basic Ordering Agreements (BOAs)), and no PALT for micropurchases. Those also have their own buying process, though not as involved as a new contract. These types of actions tend to pop up out of the blue even later than contracts because people think that smaller dollars equals fewer headaches. Not so.
Getting Back To Our Scenario...
Eventually the procurement package arrives on August 12th. Now the Contracting Officer has to squeeze their work, a 30-day offer/proposal period, evaluation, and award into less than 60 days. Near impossible.
AND
That same Contracting Officer has multiples of these types of actions on their desk at the same time. One action gets awarded and the celebration is short because another is immediately added to your plate.
All which have to be awarded by 11:59pm on September 30th.
Starting to feel panic setting in? Good, because now you can begin to understand the life of a Contracting Officer and Chief of Contracting at the end of EVERY FISCAL YEAR.
And exceptions to the cutoff dates get made over and over again.
I've had my own staff say, "Can't you push back?" Yes, I can. But as a Chief of Contracting you make exceptions early when risk of untimely award is low. You hold your cards for when leadership tries to force that last minute big contract or two into the pecking order when it is far too late to be successful and risk of no award is greatest. And it always happens.
As a Chief, you watch the workload, push people on status and deadlines weekly, monitor overtime, and watch for employee burnout. Then you shift workload as needed based on skill sets. It's non-stop balancing act taking into account remaining time, staff skills, employee morale, agency mission, and public funds. And it's a grind.
So...Why Do Contracting Officers (COs/KOs) Get A Bad Rap?
Bottom line, here are the facts about COs/KOs and Contract Specialists this time of year.
They hate late RFPs and short offer periods just like you. The scenario above happens constantly through the end of FY. So when a RFP drops late, know that COs/KOs aren't doing it for the fun of it. And they aren't making up their time on your time. It is simply that there isn't enough time and if you want the contract (and they want to award the contract on time) everyone has to make it work somehow.
They are the "Enforcers" of Federal procurement. (And yes, my nickname as a CO/KO was "The Enforcer".) Because of this enforcer role, COs/KOs deal with a lot of people that become rude very quickly when they don't get their way. It gets old really quick. Be the one nice person in their day and they will remember you. Honey, not vinegar.
The "End of FY Email Deluge" is H-E-Double Hockey Sticks. Quarter 4 of any FY is NOT (I repeat, NOT) the time to do a huge marketing push at a CO/KO if you haven't done any work for that agency before and don't have an existing relationship. If you haven't done your marketing by this point in the FY, work on your strategy for Quarter 1 of the next FY. Sure, you can send an email or two and let them know you are there if they need a vendor for a last minute purchase order in your area of expertise, or a micropurchase (read my blog on those small actions that are prevalent at the end of FY). Bad timing and pushiness doesn't start any relationship off well.
Our Lips Are Sealed. This 80's song is the "Go-Go" motto of COs/KOs and Contract Specialists year round but especially during end of FY procurements. Why? Risk of jeopardizing a contract award with no time left to recalibrate. If a CO/KO says they can't give you any info, it applies to everyone calling about that same project. It goes back to the rules (which they don't make and only enforce). And they understand it can be frustrating. It can be for them, too.
Money gets tighter the closer it gets to September 30th. When it comes to budgets and funding, COs/KOs don't control any of it. If you worked long hours on a proposal to get it submitted in a matter of days (or hours) only for project funds to never materialize, you aren't the only one disappointed.
COs/KOs and Contract Specialists are constantly juggling the use of multiple Federal systems and tools. Market research tools, SBA Dynamic Small Business Search (DSBS), contractor portals, eOffer and eMod systems, SAM.gov and its Contract Opportunities, contract writing systems, financial management systems, invoice and payment processing, GSA eBuy, GSA Advantage!, Federal Procurement Data System (FPDS), Contractor Performance Assessment Reporting System (CPARS), and more. And each system has workarounds because systems development doesn't keep up with rulemaking and policy. Sounds sort of backwards, right? It does to them, too.
They are not policy experts, but COs/KOs live and die by it. Read the FAR or any FAR supplement. Now you see my point. Enough said.
The sacrifices are big. Only now, in their 30s, have my daughters told me how much of their childhood I missed as a single mom while climbing the ladder, going to college at night, TDYs to negotiate and oversee contracts, and working 60-70 hour weeks for no less than 25%-30% of the year as a CO/KO and Chief of Contracting. I wish I could get it back. No one can. Contracting jobs age people fast. People get sick from the stress. I know the extremely high level of stress over many years and deploying to Afghanistan for several months in a contingency contracting environment contributed to my own cancer diagnosis at age 42 within two months of my return from overseas. I had no prior family history. This happened as I reached my dream job as a Chief of Contracting. And I worked every day while going through treatments except chemo days and a few days after surgeries. I've seen Contract Specialists, Contracting Officers, and the technical folks that support them take computers to hospitals to work while their kids go through leukemia treatments, come back to work the day after a funeral for a loved one, hold negotiations on the afternoon before their wedding that night. All to get it done. They do superhero things at the end of FY, but they are human.
What I'm Trying to Say is...
Be kind at the end of FY. Thank a CO/KO and Contract Specialist for their time, their hard work, and for their service to the public. They are the stewards of the public's funds and they take that job very seriously.
They will do it all again next year, and the next year, and the next knowing what they know of the workload, obstacles, challenges, and successes. And now you know too.
Signed,
A former superhero that is human, too.
References:
Check out the fedsubk.com/about page for a small sliver of the experience that informed the above.
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FedSubK Feature: What is Buying In?
"Buying in". Do you know what that is? Let's illustrate it with a little story...
Once upon a time an agency leader🤴 was looking around at things to make 🌟efficient.🌟 They got the idea that every agency should have the same widgets🔅 their agency had.
The agency leader🤴 called up a widget company👩🔧 and said, "We are interested in your widgets. 🔅What kind of discount can you give us?"
The widget company👩🔧 offers a discount 📉 because they know this agency🤴 not only buys for themselves but may buy for other agencies🫅🤴👸 where a highly trusted widget competitor👨🔧 presently has the work.
The widget company👩🔧 was "buying in" -- offering unrealistic discounts📉 that made the price unrealistically low not only for the current effort but also to influence the purchasing decisions on future buys. Then prices usually up 📈 again over time.
Depending on when "buying in" happens there could also be questions related to compliance with the Competition in Contracting Act (CICA) and possible other violations.
This is why agency announcements that management has made a deal for "$1 a license" and other such management interference is of concern. 🚨 Management plays the numbers game. I'm not saying numbers aren't important, but let's just say... there is a real reason why management typically does not hold contract signature authority. 😬😉
The Government is supposed to keep things fair and do its due diligence. But it's falling for the oldest trick in the book.
Risk, intent, compliance with statutory requirements, misunderstanding of requirements, and comparable market pricing must be evaluated when the Contracting Officer has reason to believe a proposed price is unrealistically low price. But are they?
If a contract isn't in place, there there is still a need to follow appropriate competition rules before a handshake deal. If a contract is already in place, there are things to consider when new discounts appear to be unrealistic including the risk of continued performance, depending on the type of product or service being purchased.
The Government gets a quick win to lock in a low rate, saving some money now. That's called the short game. Government buyers getting blurry-eyed over unbelieveably low prices and don't do the long-term analysis.
But I'll bet you a dollar the company is playing the long game. They are watching and waiting, getting to know your needs and asking loads of questions. "When do you use my widget most?" "Who buys the most widgets?" "When do you typically buy widgets?" And then as fast as they dropped the price, they raise it again on you when you can't afford to make a change -- like at an end of fiscal year. That's how they get locked in and receive perpetual contracts.
BTW...the fairy tale above is a true story. I've had new politicals and new leadership / commanders trot companies into my office saying "Company ABC here says they want to sell us "widgets" at a huge discount compared to what we're paying or others are paying now."
Well...okay then.
As a Contracting Officer, whether I could even begin to entertain that idea depends on several things. It's not an automatic "yes". You could replace "widgets" with just about any product or service and it's probably happened to a Contracting Officer somewhere. Especially as new Administrations come into Government.
The stories in the news that made me think -- "Huh, are they buying in?" are the Axios story "Anthropic wants to sell Claude to the Government for $1". (https://www.axios.com/pro/tech-policy/2025/08/05/ai-anthropic-government-sale-dollar) and FedScoop story "Federal agencies can buy ChatGPT for $1 through GSA deal" (https://fedscoop.com/openai-chatgpt-enterprise-federal-government-gsa-deal-general-services-administration-anthropic/).
My husband (also a retired Contracting Officer) and I look at each other often during the news now and, based on the reported discount or price alone, we know that company is likely "buying in". That's based on our combined 72 years of Fed experience and our Contracting Officer "Spidey sense" from having been around the block a few times. But these deals just the most recent in a series of deals GSA is making with companies since the new Administration came to town. OneGov is the program GSA is, in my former Contracting Officer opinion, using to tout savings under for the press releases. But it may come back later to be a big mistake. I hope I'm wrong.
Program/Project Managers and Contracting Officers AND the competition to these companies...LEARN about it and WATCH for it. It's on the rise.
(And don't get me started on having to argue with new politicals, leadership, and commanders about why I can't terminate a current contract and then turn around and give the same work to another contractor at their unrealistic lower price.🙄😱 That's a topic for another time.)
The practice of "buying in" is becoming more common now. Learn about it and how to spot it.
DoD Reduction In Force (RIF) Guidance
Just when you thought it couldn't get any more confusing, some agencies also have their own RIF guidance separate from the OPM guidance that is what we've heard the most about. DoD is one of those agencies.
A copy of the current DoD RIF guidance, DoD Instruction 1400.25, Volume 351, is found at: https://www.esd.whs.mil/Portals/54/Documents/DD/issuances/140025/140025_V351.PDF?ver=DgEFMmb9dLDV7OV-PLb7VQ%3D%3D
This guide establishes policy, assigns responsibilities, and prescribes procedures for reduction in force (RIF) actions taken under Part 351 of Title 5, Code of Federal Regulations (CFR), as modified by Section 1597(f) of Title 10, United States Code (U.S.C.).
This guidance does not, in full, apply to DoD employees covered by an alternative personnel system (e.g., the Acquisition Demonstration; Science and Technology Reinvention Laboratories; and the Defense Civilian Intelligence Personnel System). Those systems will develop their own policies and procedures for RIF that comply with the law, as approved by the Under Secretary of Defense for Personnel and Readiness (USD(P&R)). This guide also does not apply to Senior Executive Service (SES) positions.
The policy statement in 1.2 states that, "For any RIF of civilians in the competitive and excepted services in the DoD, the determination as to which employees will be separated from employment must be made primarily on the basis of performance."
In accordance with 10 U.S.C. 1597, DoD must report to Congress 45 days prior to implementing an approved RIF.
DoD will comply with 5 CFR 351.402 and 351.403 when establishing competitive areas and competitive levels, respectively. Competitive service employees and excepted service employees are placed on separate retention registers established in accordance with 5 CFR 351.404 and 351.405.
For purposes of DoD RIF, employees are placed in one of two categories:
- employees with a period of assessed performance of less than 12 months, and
- employees with a period of assessed performance of 12 months or more.
An employee’s period of assessed performance for purposes of RIF will be the sum of the months of assessed performance associated with the employee’s performance appraisals within the most recent 4-year period preceding the cutoff date established for the RIF. However, periods of time in a rating cycle for which an employee’s performance was not assessed are not included in the employee’s period of assessed performance.
For example, if an employee receives a rating after serving 10 months of the 12-month cycle, the employee’s period of assessed performance is 10 months for that rating cycle.
For employees absent for military service, periods of time during the rating period may be treated as periods of assessed performance if they meet the requirements of Paragraph 3.3.c.(1) under Paragraph 3.3.b.(2) of the DoD guide.
Retention Factors
Competing employees are listed on a retention register based on--
- Rating of Record. See Section 3.3.c. for rating of record examples based on cutoff dates, military service, time frames for ratings to be used, and ratings from a system other and the Defense Performance Management Program (DPMAP).
- Tenure Group. This follows the definitions found in 5 CFR 351.501(b) for competitive service and 5 CFR 351.502(b) for excepted service.
- Average Score. In general, an employee’s average score for one performance appraisal is derived by dividing the sum of the employee’s performance element ratings by the number of performance elements. The average of the average scores drawn from the two most recent performance appraisals received by the employee, except when the performance appraisal reflects an “unacceptable” rating of record will be reviewed. When the most recent performance appraisal reflects an “unacceptable” rating of record, only that performance appraisal will be considered for purposes of the employee’s average score.
- Veterans’ Preference. This follows the procedures in 5 CFR 351.501(c) with three veterans' preference subgroups:
- AD - 30% or more disabled veteran
- A - eligible for veterans' preference for the purpose of RIF but not for placement in the AD category (i.e., less than 30% disabled veteran determination)
- B - not eligible for veterans' preference for purpose of RIF
- DoD Service Computation Date-Reduction in Force (DoD SCD-RIF). Follows rules of credible service as found in 5 CFR 351.503(a) and (b). DoD does not follow 5 CFR 351.504, which grants additional retention service credit in RIF based on an employee's ratings of record.
Rounds in Reduction in Force (RIF)
Two rounds of RIF will be conducted. Round One, Release from Competitive Level, and Round Two, Assignment Rights, are explained in the document in detail related to types of appointments, order of release from the competitive level, and exceptions that may apply. They are found in sections 3.5 and 3.6, respectively.
Displacement may occur during Round Two. Displacement is the assignment of an employee to a continuing position in a different competitive level that is held by another employee with a lower retention standing (i.e., “bumping” another employee). Displacement may be at the same grade or at a grade up to three grades or grade intervals (or equivalent) below the position of the released employee.
Right of Only One Offer
Employees released from a retention register are only eligible for one offer of assignment (similar to OPM rules), with some exceptions. If the employee accepts and offer, rejects an offer, or fails to reply to an offer in a timely manner, they are not entitled to further offers. However, the DoD Component must make a better offer of assignment to a released employee (i.e., to a position with a higher representative rate) if a position becomes available before, or on, the RIF effective date.
Sample retention registers and scenarios are found in the guide in Appendix 3A. Employees have the right to request a review of retention registers and have representation also be allowed to review the registers, as requested by the employee.
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DISCLAIMER: Info is provided for awareness. I am NOT an HR professional but an HR enthusiast having started in HR and being a Federal supervisor and hiring manager. Before taking any action that changes your status, please seek the advice of an attorney knowledgeable in Federal employment law.
Voluntary Separation Incentive Payment (VSIP)
Voluntary Separation Incentive Payment (VSIP) allows agencies that are downsizing or restructuring to offer employees lump-sum payments up to $25,000 as an incentive to voluntarily separate. The amount received is reduced by Fed and state taxes, social security, and Medicare, as applicable.
The full guide on the program is found at the OPM website https://www.opm.gov/policy-data-oversight/workforce-restructuring/voluntary-separation-incentive-payments/guide.pdf
Eligibility for VSIP requires an employee be employed by an Executive Branch agency for at least three (3) continous years without a time limit and not be--
▶️ a reemployed annuitant;
▶️ otherwise be eligible for disability retirement;
▶️ recipient of a notice of involuntary separation for misconduct or poor performance;
▶️ recipient of any previous VSIP from the Federal Government;
▶️ on a service agreement for which--
➡️ a student loan repayment benefit was paid, or is to be paid, during the 36-months preceding the date of separation;
➡️ a recruitment or relocation incentive was paid, or is to be paid, during the 24-months preceding the date of separation; and
➡️ a retention incentive was paid, or is to be paid, during the 12-months preceding the date of separation.
If you receive a VSIP and later come back to Federal Service within 5 years of the date of the separation on which the VSIP is based, you must repay the entire amount before your first day of reemployment. This includes working under a personal services contract or other direct contract with the Government.
The top 10 questions related to VSIP can be found at https://www.opm.gov/policy-data-oversight/workforce-restructuring/voluntary-early-retirement-authority/top-10-frequently-asked-questions-about-vera-and-vsip.pdf
OPM's page on VSIP is at https://www.opm.gov/policy-data-oversight/workforce-restructuring/voluntary-separation-incentive-payments/
DISCLAIMER: Information is provided for situational awareness. I am not an HR professional but an HR enthusiast having been a Chief of Contracting and Federal supervisor. Please consult with an attorney knowledgeable in Federal employment law before making any decisions that impact your Federal employment status.
