Summer time is quote time in the buying cycle for the US Federal Government.  At this time of the year most agencies have already spent most of their appointed budgets.  Keep in mind that September 30th is the last day of the financial year for the Government.  As the summer rolls on, more and more agencies will be out looking for equipment quotes hoping to land extra funds at the end of the year.  Every year usually starting in August and ramping up in September until there is a feeding frenzy in the last week, money will be made available.  The spending rule for all government agencies is to spend what you have or lose it come Oct 1.  Come September, agencies that have not spent will give up the excess funding to the next in line.  If that next agency is not ready (with quote in hand) funding will quickly go the next and so on.  Sometimes the last in line will get an unexpected windfall of funds to put together that gym they have been waiting for.

Starting in June and July many agencies will start working on their ‘wish’ lists.  These lists are contingent on funding becoming available.  In many cases these will go nowhere this year but could come through in the new funding year or beyond.  In other cases these much needed quotes will come through in a hurry.  When quoting to Federal Agencies or Military there are a few things to keep in mind:

1.  Is this a ‘wish’ list or a quote with funding?
   1. A ‘wish’ list will offer the most opportunity come year end.  This type of quote request should be done as a good, better, and best option to maximize your opportunity.  This opportunity will also get green lighted the quickest without much thought to competition come year end.
   2. A funded request will have the most competition tied to it and will be routed through normal channels.  Funded requests come through all year long.
2.  Opportunity, opportunity, opportunity
   1. Go ahead and do the ‘wish’ list quotes.  Don’t be afraid to quote exactly to the quote and then follow up with a better option and a best.  Also try over quoting and under quoting on these.  The buyer here does not know how much money he’ll have until the last minute.  The more options he has the better off you’ll be.
   2. Go ahead and cold quote.  Don’t be afraid to just put a quote in their hands.  You never know if they’ll get last minute funding and need to reach into a drawer for your quote or lose the funds.
   3. After all the quotes are done don’t hesitate to let them know you’ll be available any time in September.  Your availability could be the key, at the 11th hour on September 30th.  Sometimes the last rep in the office is the one that will get the deal.

Products to keep in mind would include benches (SFID325, GFID225, GFID71), racks (SMR1000, GPR378), smiths / trainers (SCB1000, GS348, GDCC200), storage (WT46, GMR10, GOWT, GDR500, GFR500, etc), Iron (Kettle Bells, weight plates, bumper plates, dumbbells, etc), Cardio (E5000, ESB250, T10HRC, and B3 Bikes), and accessories (Body Solid Tools, attachments, etc).

If you are new to this segment there are a number of different ways in which to source opportunities.  A good way to search for current opportunities is through the established bid boards (FedBizOps – www.fbo.gov).  These are useful for finding out what is out there and who is looking for it.  Use this for research purposes more than anything else.  The drawback to this approach would be 2 fold.  Many dealers and manufacturers already are tapping this market in this way so competition is high.  Secondly, the bid list is already established and spec out.  More than likely there is already a favorite in the race for these dollars. 

An alternate method would be to start from the bottom up and cold call if you don’t already have a database.  A good site for information is www.gov.com .  This site provides links to all Federal Agencies, Military, and local.  Each home site will have useful links, maps, addresses, etc.  From there an opportunity is just a mail packet, phone call, or email away.  Now is the time to spend creating these types of opportunities.  Seeds planted in June and July can root and blossom in September.