In our third federal buying season podcast with Larry Allen of Allen Federal Business Partners, he tells Comstor partners why 2016 may be more important than other years to get projects on the books and started as quickly as possible.
According to Allen, September still could prove to be a boon for Comstor partners if they have sales in the pipeline because as much as 17 percent of all federal sales are closed in September. What makes 2016 different, in the opinion of Allen and other industry experts is the threat of continuing resolutions, which are designed to provide contingent funding so the government can continue normal operations while Congress debates budgets. This may hamper the start date of projects that aren’t underway before the end of calendar year 2016.
Allen shares that – per usual – October 1 will see the FY17 for the federal government begin with a continuing resolution. He and others believe that this fiscal year will see as many as 4-5 continuing resolutions in effect to run the fed government well into 2017 calendar year.
“While continuing resolutions keep the government open,” Allen explained, “federal agencies cannot start any new project using continuing resolution money.”
So, Allen says, if you want to have a good 2017, Comstor partners need to get their federal customers started now – before the end of calendar year 2016, so it won’t stall. He suggests getting at least the first phase of a big project slated for FY17 started as quickly as possible, because then it is no longer “new.”
“Now is when you have the opportunity to get the ball rolling on a FY17 project, because if you wait on a major systems upgrade, for example, you could be waiting to March or April before funds are available,” he said.
To hear all that Allen shared with EDGE360 about the importance of starting FY17 projects now, listen to the podcast below.
For more about the federal market from Larry Allen, see recent posts here:
Nathan Clyker, Regional Manager of Federal Sales at Comstor, shares his wisdom about the federal market here: