Are You Prepared for GFY 2018 CR? 5 "Unwritten Rules" to Reduce Your Risk

It's that time of year - the frenzy of Back to School, and Government Fiscal Year End.

During the 4th Quarter of Government Fiscal Year (GFY) 2017, you experience the craziness kids getting ready for the new school year, while Federal Contracting Officers are like College Students cramming for finals. You are braving the aisles of schools supplies, and racks of clothing; Contracting Officers (COs) are hustling to issue Requests for Proposals, evaluate submissions, negotiate the details, then award contracts, and task/delivery orders BEFORE September 30th.

And if you are reading this post, you are probably juggling both responsibilities - preparing your kids for back to school AND hustling your contracting responsibilities for GFY 2017 Year End.

When October 1st arrives, you are exhausted, your kids are settling into their new school year routine, and Federal Contracting seems to go on vacation.

Why the lull?

Continuing Resolution. The last time Congress passed ALL 12 appropriations bills we had our first female Secretary of State, Madeleine Albright, and Bill Clinton was entering the final year of his first term as President.

Exactly 20 years ago - 1997 - was the last time we did not begin a new GFY under a Continuing Resolution (CR). Did you know - the average length of a CR is 3.5 months? The school year is 1/2 over, and we are into the 2nd Quarter of the GFY.

This delay creates a hurry up - wait - hurry up - wait cycle that negatively affects program schedules, and budgets. By the time things are finally ramping up for the GFY, it is almost time for Sweep Ups. Starting the GFY with a CR usually means new funding is not allocated until after your kids go back to school from Winter Break. Consider - because our current political climate is more volatile than chemistry Bunsen burner experiments, GFY 2018 budget approval could be closer to Spring Break.

As part of the Federal Contracting Community, you have experienced the stress and frustration of this standstill. I know your pain.

How can you be better prepared for a GFY 2018 CR on October 1st?

I'll share my "crib notes" with you.

Here are 5 "Unwritten Rules" to pass this GFY's annual test of patience:

1. Confirm you submitted all possible supporting backup for each proposal awaiting negotiation and award. If not - gather it up, scan it, and provide it to your CO to help expedite their evaluation. Why do you care: A lack of supporting documentation and justification delays the CO's ability to evaluate your proposal until you provide what is needed based on their requests. Under a CR, no NEW work is awarded (with few exceptions). Therefore, proposals not negotiated and signed by September 30th are in limbo until the CR is lifted. Be proactive - make sure your CO has everything needed from you. AND Be cautious in including these proposals in your manpower and financial projections; consider slipping the expectation to early 2018. If you are unsure of what supporting backup may be needed, email me at [email protected].
2. Evaluate all of your existing contracts for funds in house, monthly burn rate, and anticipated costs to be incurred between now and March 1, 2018. Discuss your findings with your Program Officers. Prepare, and submit Limitation of Funds/Costs Letters (aka 75% Notices) to your Contracting Officers ~60 Days prior to expending 75% of the funding on contract. (Check each contract for specific time frame and percentage - it may vary.) When requesting additional funds use the amounts you calculated to cover work through 2nd Quarter GFY 2018.
3. Be prepared to submit 75% Notices to your COs every couple of weeks once GFY 2018 begins. Under a CR, existing work tends to be funding in 30 day increments. Each 75% Notice documents your need for funding in order to keep each program on schedule, and on budget.
4. Review your Internal Research & Development (IR&D) Budget and Strategy. Consider setting up or expanding internal projects to keep your employees busy creating Company Intellectual Property (IP). Fostering creativity will increase your competitive advantage, keep your employees engaged, and make you more valuable to your existing customers.
5. Collaborate with other Government Contractors that have active contract vehicles with complimentary scope, and sufficient ceiling. Such partnerships facilitate funds flowing during a CR, while enhancing the product(s) and/or service(s) both Parties provide to your customers. Bonus - it may expose you to a new customer.

As you stock up on school supplies, and hustle to complete GFY 2017 year end tasks - prepare yourself and your company for 1st Quarter GFY 2018.

These 5 Steps will reduce your risk of Continuing Resolution BS, while creating opportunities for you to focus on the Cool S**t you do best!

What are your strategies for thriving during the 1st Quarter of the Government Fiscal Year? Share in the comments.