Government Spending Spree: “Christmas in September”

USA Today referred to it as “Christmas in September” for contractors and vendors that sell commodities and services to various government organizations throughout the year. As the 2014 Fiscal Year comes to an end, there is no reason to think otherwise. Unobligated dollars that were programmed at the beginning of the year go unspent for a lot of reasons, primarily due to the uncertainty of demands and priorities within the organizations. Unspent dollars can be caused by plenty of things, including a change in the priorities of a real-world mission or event, a reduction in staff that does not allow for the procurement process to be completed promptly, surplus inventory that needs to be used from the previous year, and variations in commercial pricing. Although improving, there is still this end-of-the-year surge that sets a stage for many to see as fraud, waste, and abuse of tax dollars, when in reality it’s just the system working as it is designed.   What does it mean to us, the vendors? Results include a “bucket” of funds that fall into the “use it or lose it” well. When they go to empty that bucket, the result can be both positive and negative, depending on the position they’re in. They include: –     

• Low value, “nice to have” purchases   
• Quality tends to drop off in place of quick buys     
• Priorities change to allow for the “nice to have” vs. the “must have”  

If we learn to take advantage of this, can it truly seem like Christmas? Here are a few ideas you can work throughout the year to be prepared:

1. Know your customers’ budget situation/process better than they do. When dealing with various government agencies, you have to have a good understanding of their processes, including:
   1. What is their fiscal year?
   2. What budget items can cross into a year without being lost?
   3. What are their procurement policies (formal and informal procurement policies)?

(NOTE: It’s all a matter of public record)

1. When you’re working on opportunities throughout the year, make sure you listen and understand what their “nice to have” needs are. Start building a list of smaller and quick turn solutions that they could get approved and generate “goodwill” with.
2. Get involved early as they build the requirements and future budget. That process can provide you with up to a 5-year “heads up” on what they need. If you can identify a 2014 priority now, they can spend 2014 money even faster.
3. Find out if they have any “rollover” authority and what type of commodities can be procured using it.
4. Counter the low quality/less quality by providing the best price and letting them know that the quality has not changed, only your ability to provide it to them quickly and within your budget.
5. Work as a team with your partners to provide total solution packages that assist in meeting a large requirement with a small package.

Remember that not all organizations have a spending spree. A good example is a department that has only mandatory programs to manage. They will not experience a spree since their money is a priority throughout the year.   Give Lowry Solutions’ Government Tracking Solutions a call, and let’s coordinate our lines of effort and work towards having a great Christmas morning under the tree on October 1st, 2014.

Turning Year-End Spending into Long-Term Operational Value

While fiscal year-end purchasing often focuses on meeting immediate deadlines, it also presents an opportunity for agencies to invest in technologies that deliver lasting operational improvements. Rather than viewing the remaining budget as something that must simply be spent, organizations can prioritize solutions that continue generating value well beyond the close of the fiscal year.

Technology investments that improve visibility, automate manual processes, and strengthen accountability can support agency missions for years to come.

Prioritize Solutions That Solve Ongoing Challenges

End-of-year purchases are most effective when they address persistent operational issues rather than short-term needs.

Government organizations often face challenges such as:

• Limited visibility into assets
• Time-consuming inventory audits
• Manual recordkeeping
• Equipment misplacement
• Compliance reporting requirements
• Aging mobile hardware
• Inefficient warehouse operations

Investing in solutions that address these recurring challenges helps maximize the value of available funding while improving day-to-day operations.

Focus on Scalable Technology

Government operations continue to evolve, making flexibility an important consideration when selecting new technology. Scalable solutions allow agencies to expand capabilities as mission requirements change without replacing existing infrastructure.

Examples of scalable investments include:

• Enterprise asset tracking platforms
• RFID-enabled inventory systems
• Barcode scanning solutions
• Mobile computing devices
• Industrial printing systems
• Cloud-based management software
• Mobile device management (MDM) platforms

These technologies can often be deployed in phases, allowing agencies to realize immediate benefits while supporting future expansion.

Improve Accountability Through Better Visibility

Accurate accounting of government assets is critical for operational efficacy, the economy, and seamless compliance.

Consider that contemporary tracking technologies deliver transparency of a company’s assets in real time. Automated data collection minimizes dependence on manual inventories and assists organizations in tracing assets across multiple properties quickly.

Better visibility helps optimize resource use and can minimize unnecessary spend due to misplaced or untracked equipment.

Look at the Total Cost of Ownership

Caveat to technology evaluation is considering purchase price only. Even so, agencies should also factor in how much long-term operational costs will be running the system, paying for maintenance and support as well as training or managing other personnel who operate it.

A centralized administration solution with simplified maintenance and solid vendor support will minimize ongoing administrative effort, as well as extending the useful life of many technology investments.

Total cost of ownership assessment, usually determining the full risk and benefit profile at the outset, helps to guarantee that procurement-dependent processes continue to add value post-implementation.

Strengthen Collaboration Across Departments

Many technology initiatives benefit multiple departments within an organization. Asset tracking, inventory management, mobile computing, and labeling solutions often support operations, logistics, finance, procurement, and IT simultaneously.

Coordinating purchases across departments can:

• Eliminate duplicate technology investments
• Improve data consistency
• Simplify system integration
• Increase operational efficiency
• Maximize available budgets

Collaborative planning helps organizations select solutions that support broader agency objectives rather than individual departmental needs.

Prepare for Future Procurement Cycles

Likewise, end-of-year purchasing must be noted for supporting long-term planning. Collecting operational data from new technologies can provide agencies with insight about more opportunities for improvement and create a compelling business case for future budget requests.

Those organizations that document concrete benefits in terms of inventory accuracy, asset utilization, labor efficiency, and operational visibility tend to fare better when seeking further investment down the line.

It is no longer a tool for making operations easier, but also a source of useful performance data.

Partner with Experienced Solution Providers

Establishing technology deployments is not just about buying hardware or software. It takes planning, integration, user training, and support for implementations to go well.

Partnering with seasoned solution providers assists agencies in evaluating technologies that align with operational goals while minimizing implementation risk. Offering services like site assessments, deployment planning, system integration, and lifecycle support can facilitate smoother rollouts and better long-term outcomes.

A combination approach of human and technology, where a trusted partner can help agencies minimize investments based on existing needs but prepares them for future operational requirements.

Investing Beyond the Fiscal Year

Organizations should consider year-end spending not as a way to clear off remaining budgets but rather an opportunity to make the organization stronger. Connected technologies such as asset tracking, RFID, barcode solutions, enterprise mobility, and inventory management can be instrumental to optimise operational efficiency, enhance accountability, and gain better visibility into government operations.

Agencies can position themselves to maximize available funding by choosing solutions that account for ongoing hurdles, while setting up their infrastructure for greater modernization efforts in the months and years to come. Smart technology investments today not just support current operations, but prepare organizations to meet shifting operational needs in the future.