Beware of the Office of the Budget Cutting Beast -

3 Things About Government Fiscal Year End Sweep Ups, and a Strategy to Benefit

I was recently asked if federal funds intended for a specific program are safe from "Sweep Ups".

The answer:

No. If the funds are not allocated to a specific contract, then they are at risk for being Swept Up before the current Government Fiscal Year ends.

Don't get caught by the Budget Cutting Beast

3 Things to Know:

1. When do "Sweep Ups" Begin?

There is no official date for money to be swept up. "Sweep Up" typically begins in July at the start of the Government Fiscal Year (GFY) 4th quarter. This year's RUMINT is that many Agencies just received the final tranche of their GFY 2017 money in June. More funding is in jeopardy of being swept up because of the delayed and then accelerated time for allocating money to existing and new contracts. It's a good bet that sweeping has already started.

For the Federal Government, budgeted funding is considered "use or lose". Money that has not been allocated to its intended contract is at risk of being "swept up", or worse - lost.

Typically, funds must be committed to a new, or existing contract no later than September 30th of the current fiscal year. Many federal agencies set the deadline earlier in September since the paperwork and workload increase dramatically during Government Fiscal Year End.

2. Where does "Sweep Up" money go?

"Sweep Up" money may be used on another one of your Program Manager's existing contracts. On occasion it is placed onto a newly awarded contract. Often the money is passed along to another Program Manager for use on one of his existing contracts. Frequently, it is MiPR'd (Military Interdepartmental Purchase Request) to another Agency for use on one of its contracts.

"Sweep Up" funds sometimes end up on random projects seemingly unrelated to what the money was originally intended to support. No Program Manager, or Agency wants to "lose" money from their budget.

3. What are the Keys for using "Sweep Up" money?

Knowing the color, the expiration date, and the budget line item description(s) for the money are the keys to correlate where money can be swept for use. All "colors" of money (R&D, S&T, O&M, etc.) can be swept up - for a quick reference chart describing each type e-mail [email protected]. And most government funding has a time limit. 1-year money has to be allocated for a project that is going to be completed within its 1-year expiration date, while 2-year money has twice as long before it expires. Everyone's favorite is "no year" money, which tend not to ever be swept up. For more information on types of appropriations visit: https://disbursements.house.gov/glossary.shtml.

When budgeted money is not allocated to any contract, it is considered "lost" because Agencies are "forced" to return any unused portion of their budget. Typically, the amount "lost" is then not included in the Agency's budge for the next fiscal year either. So, it is a double whammy - lost from the current fiscal year PLUS reduced from the next fiscal year.

Strategy - Avoid the Budget Cutting Beast and benefit from "Sweep Ups"!

Create a plan, and ask.

Position yourself with a detailed plan for "Sweep Up" funds. Know your contracts - the scope of work, the period of performance, and the color(s) of money each contract can receive.

Discuss the funding options with your Government Program Managers. They, or their colleagues, may have un-allocated funds that could be swept up into your project. (Be aware of the limits of your Program Managers' authority.)

For additional funds - show what additional problems you can solve, and/or improvements you can provide - be specific. Think small scale, and large scale. Tell your customers "why" and "how" they benefit by spending their extra "Sweep Up" dollars on YOU.

Bonus Strategy

Partner with other contracts to collaborate on obtaining "Sweep Up" funds to enhance one of your (or their) Program Manager's projects.

During the GFY 2017 "Sweep Up" Season, may you avoid the Office of the Budget Cutting Beast by having sufficient funding, or by easily obtaining the additional funds you need to do the Cool $#!t you do for the Government.

To see how you can benefit from customized strategies to minimize your risk, and maximize your opportunities, email [email protected], or click here to set up a free 30 minute discovery call to learn more.