In U.S. government contracting, September typically has the highest spending because it is the end of the federal fiscal year. The federal government's fiscal year runs from October 1 through September 30. Agencies receive budgets for that fiscal year and often must obligate (commit) much of their funding before the fiscal year ends. Why spending spikes in September 1. "Use it or lose it" pressure Many appropriated funds expire at the end of the fiscal year. If an agency doesn't obligate the money by September 30, it may lose access to those funds. Program managers and contracting officers therefore rush to award contracts before the deadline. 2. Budget execution targets Agency leadership tracks how effectively departments spend their allocated budgets. Unspent funds can create the perception that an office didn't need its full budget. As a result, offices often push to get planned purchases awarded before year-end. 3. Delayed acquisitions pile up Projects that were supposed to be awarded earlier in the year often experience: - Requirement changes - Legal reviews - Budget delays - Staffing shortages - Procurement bottlenecks Many of these acquisitions eventually get pushed into Q4, especially September. 4. Year-end purchasing authority Once agencies know exactly how much funding remains available, they can make final purchasing decisions and release awards. This often creates a surge of: - Task orders - Purchase orders - Professional services contracts - IT contracts - Equipment purchases - BPA calls and modifications How big is the spike? Historically, federal agencies spend a disproportionately large share of annual contract dollars in September. Depending on the year, 10–15% (or more) of all annual contract obligations can occur in September alone, even though it represents only one month of the fiscal year. What this means for contractors September is often called "September Madness" in GovCon because: ✅ Awards move faster ✅ Simplified acquisitions increase