5 Tips Federal Agencies Should Consider at Fiscal Year End

September 30th marks the end of the federal government's fiscal year. During this time, government procurement buyers focus on several key aspects to ensure efficient and effective use of funds. Procurement is essential to the federal government as it supports resource allocation, enables government programs and services, provides transparency and accountability, promotes supplier diversity, and seeks value for money. By implementing streamlined procurement practices, the government can meet its objectives, serve the public interest, and uphold responsible stewardship of public funds.

Here are some tips to consider for federal government procurement buyers during this period:

1. Use tools to maximize your budget

Planning allows procurement leaders to allocate remaining budget funds strategically. By identifying needs and opportunities in advance, they can ensure that funds are utilized responsibly, maximizing the value derived from available resources.

Federal agency procurement leaders can maximize their budget by buying in bulk. This strategy allows them to consolidate purchases, negotiate volume discounts, streamline procurement processes, optimize inventory management, and establish long-term cost reductions. By aggregating their requirements and purchasing larger quantities from a single vendor, procurement leaders can obtain better pricing and terms, stretching their budget further. Bulk purchasing also reduces administrative tasks, improves inventory management, and ensures stable pricing over time.

Another way to maximize year-end funds is with a Request for Quote (RFQ). This tool allows teams to avoid back-and-forth negotiations with suppliers, while Amazon Business does the work to save you money on high-volume purchases. By leveraging the competitive pricing offered by numerous sellers, government leaders can invite multiple sellers to provide quotes, promoting a competitive environment and ensuring the best prices. The RFQ feature also streamlines the procurement process, providing a transparent and efficient platform for requesting and receiving quotes, enabling government leaders to specify their requirements and make informed purchasing decisions. Overall, Amazon Business' RFQ and Bulk Buying features offer a valuable tool for government leaders to optimize their budget and ensure cost-effective procurement.

2. Scale by defining guardrails

Federal buyers must adhere to procurement regulations, policies, and procedures to ensure transparency, fairness, and accountability in the procurement process year-round. By adhering to strict procurement regulations, such as competitive bidding, proper documentation, and conflict-of-interest safeguards, the government minimizes the risk of fraudulent activities or misappropriation of resources. Compliance measures provide safeguards against irregularities and help identify and address any potential instances of fraud or mismanagement.

By setting Buying Policies and Approval Workflows within a department, this will identify preferred products or sellers -- like 889, solicit approvals for orders over specific spend limits and restricted sellers or categories, and block purchases from particular categories. This will help communicate your agency's preferences for specific suppliers and products with easy-to-see visual reminders so buyers know what they can buy. With Guided Buying, a paid feature, you can encourage socially responsible purchasing by creating buying policies to prefer credentialed local and diverse businesses, and more sustainable products.

3. Start planning for next year through reporting

While the year may be ending, procurement teams need to engage in strategic planning for the upcoming fiscal year. This includes assessing needs, evaluating vendor performance, and identifying potential improvements or changes in procurement processes to enhance efficiency and effectiveness. Orders and reconciliation are vital for government procurement teams when planning for the next year's budget.

Firstly, by tracking and analyzing orders placed through Amazon Business, procurement teams can gain visibility into their spending patterns, identify trends, and assess their purchasing needs with tools such as Amazon Business Analytics and Spend Visibility*. This information is crucial for accurate budget forecasting and allocation, allowing teams to align their procurement strategies with anticipated demands and optimize budget utilization.

Secondly, reconciliation becomes essential. By reconciling orders, teams can identify any discrepancies, such as overcharges or incorrect billing, ensuring accuracy and accountability in financial transactions. This process strengthens financial control, safeguards against fraudulent activities, and ensures that the allocated budget is effectively utilized, providing a reliable foundation for planning next year's budget. Amazon Business offers reconciliation, expense management, and accounting processes with line-item detail (level 3 transaction data) on purchases made using eligible Visa, Mastercard, and American Express credit cards. In addition, we integrate seamlessly with expense management software partners such as Intuit QuickBooks, Emburse, and Zoho Expense.

4. Examine supplier relationships

The fiscal year-end allows procurement buyers to evaluate their procurement strategies, assess supplier performance, and identify areas for improvement. They can make informed decisions about future vendor relationships, contracts, and procurement processes by analyzing past procurement activities and outcomes.

Firstly, consider finding a strategic procurement partner, like Amazon Business, that has features built for government agencies. Look to see if it offers multi-user accounts, purchase approvals, the mandatory source of supply solutions such as the AbilityOne® storefront, tax-exempt purchasing, exclusive price and quantity discounts, negotiated pricing, to a Seller Credentials procurement-system integration.

Secondly, consider a partner that provides customer advisors. These advisors provide personalized assistance, helping teams navigate the system, resolve technical issues, and optimize account settings. They offer strategic insights, suggesting cost-saving opportunities and alternative suppliers while keeping teams informed about platform updates and best practices. With a customer advisor's expertise and guidance, government procurement teams can streamline their purchasing process, and make informed decisions.

Lastly, look into finding a supplier with reliable shipping. Fast shipping is vital for government customers due to their urgent and time-sensitive needs. It ensures prompt delivery of critical supplies, equipment, and services, enabling government agencies to meet operational requirements efficiently. Fast shipping reduces downtime and disruptions, maintaining continuity in government operations. It also enhances responsiveness during emergencies, allowing quick access to essential resources. By utilizing Amazon Business' fast shipping options, government customers can ensure timely delivery, efficient operations, and effective response in both regular and emergency situations.

5. Evaluate new technology and innovation to streamline purchasing

Digital purchasing has become the norm for how procurement is today. Yet, government agencies have been slow to modernize their systems due to a lack of financial resources and personnel and the complex nature of implementing a new e-procurement system. During year-end, now is a good time for leaders to assess the e-procurement technology landscape and explore opportunities to leverage digital tools and innovations to streamline procurement processes, improve data analytics, enhance transparency, and optimize decision-making.

By planning for fiscal year-end, procurement leaders can enhance responsible financial management, efficient resource allocation, compliance with regulations, and transparency and accountability in government spending. It helps optimize the use of public funds, mitigate risks, and support effective decision-making for the upcoming fiscal year.

*a paid feature