Detailed Answer
The federal government operates on a fiscal year (FY) that differs from the calendar year:
**Federal Fiscal Year:**
- Start: October 1
- End: September 30
- Example: FY2026 = October 1, 2025 through September 30, 2026
**Why This Matters for Contractors:**
- Q4 (July-September) is the busiest contracting period
- Agencies must obligate remaining funds before year end
- Many solicitations drop in spring for Q4 awards
- New fiscal year may have budget changes
**Key Contract Timeline Implications:**
- Period of performance often aligns with fiscal year
- Option years typically exercise at fiscal year boundaries
- Continuing resolutions affect start-of-year contracting