The federal government's fiscal year starts October 1 and ends September 30; 31 U.S.C. 1102 says so in one sentence. For a contractor chasing federal work, that calendar is the most predictable pattern in the market. The data show that a large share of each year's federal construction contract dollars is obligated in September, and that October is reliably the quietest month for new obligations.
A correction: an earlier version of this article was written as a first-person account, with a story about a friend's $1.1 million VA clinic win, bid-board counts from "my watch list," and claims that the fourth quarter captures "30 to 40 cents of every federal dollar" and that federal construction proposals take "40 to 80 hours." It called October a "flood" of new solicitations without any data to measure one. We could not verify the anecdote or the figures, so they have been removed. Below is what USAspending data and the governing rules actually show.
What the Spending Data Show
We pulled monthly federal contract obligations from the USAspending.gov API on October 18, 2026, for contract award types (definitive contracts, purchase orders, delivery orders and BPA calls) with NAICS sector 23, Construction. Obligations include new awards and modifications, net of deobligations, by action date. Figures are in billions of dollars.
| Month | FY2024 (Oct 2023–Sep 2024) | FY2025 (Oct 2024–Sep 2025) |
|---|---|---|
| October | 1.02 | 1.26 |
| November | 2.34 | 1.43 |
| December | 3.32 | 2.45 |
| January | 2.00 | 1.88 |
| February | 2.38 | 2.31 |
| March | 2.68 | 3.15 |
| April | 3.10 | 3.48 |
| May | 4.63 | 3.01 |
| June | 3.82 | 2.24 |
| July | 5.03 | 5.60 |
| August | 5.41 | 5.13 |
| September | 17.52 | 19.17 |
| Fiscal year total | 53.25 | 51.12 |
Three things stand out.
September is the peak, by a wide margin. In FY2023, FY2024 and FY2025, September accounted for 32.0%, 32.9% and 37.5% of construction contract obligations, respectively. The fourth quarter (July through September) was 48% to 59% of the year.
October is the low point. October obligations were about $1.0 billion to $1.3 billion in each of those years, roughly 2% of the annual total. The first quarter (October through December) was 10% to 13% of the year.
The pattern holds by product code too. Filtering instead on product and service codes Y (construction of structures and facilities) and Z (maintenance, repair and alteration of real property) gives almost the same picture: September was 31% to 36% of obligations in FY2023–FY2025.
FY2026 looks different, and the data are not final. Through the USAspending data available October 18, FY2026 construction obligations under NAICS 23 totaled about $75.9 billion, with large months in March 2026 ($15.9 billion) and June 2026 ($10.2 billion). The Department of Homeland Security was the largest awarding agency in both months; top recipients in those months included Barnard Construction and Fisher Sand & Gravel. The September 2026 figure of $9.1 billion is incomplete. Under DFARS PGI 204.604, Defense Department contract action reports are not available for public view until 90 days after the date signed, so most of DoD's late-summer and September actions have not posted yet. Expect FY2026 fourth-quarter numbers to rise substantially as that data arrives.
Why the Money Moves in September
The September spike is a product of appropriations law, not habit.
Most federal appropriations are available for obligation only for a set period. Under 31 U.S.C. 1502(a), the balance of an appropriation limited to a definite period is available only for expenses properly incurred during that period, or to complete contracts properly made within it. One-year money that is not obligated by September 30 can no longer be used for new obligations. Expired accounts close permanently on September 30 of the fifth fiscal year after availability ends (31 U.S.C. 1552).
Not all construction money is one-year money. Military construction accounts are typically available for five years. In the House-passed FY2026 Military Construction and Veterans Affairs bill (H.R. 3944), for example, Army military construction funds were made available "until September 30, 2030." Even so, agencies tend to push awards toward the end of each fiscal year because requirements, designs and funding approvals take months to line up.
Agencies also cannot get ahead of their appropriations. FAR 32.703-2 lets a contracting officer start a contract action chargeable to next year's funds before they are available only for operation and maintenance and continuing services, such as rentals and utilities, under an Availability of Funds clause. That authority does not cover new construction. A construction award needs funds in hand.
What This Means for October
The data do not show an October flood of new obligations; October is the slowest month. What the calendar does suggest:
The September crunch closes out solicitations. Contracting officers need proposals in hand early enough to evaluate and award before funds expire, so many solicitations close in August and September. If you find a September solicitation late in its response window, it is usually too late to bid it properly.
New-year work has to be solicited before it can be awarded. Since most construction can't be awarded until funds are available, and since agencies tend to award late in the year, the months after October 1 are when contracting offices build and publicize the next round. FAR 5.203 requires agencies to publish a notice of a proposed contract action at least 15 days before issuing the solicitation, and, outside of commercial acquisitions, to allow at least 30 days for responses on contracts over the simplified acquisition threshold. Watching presolicitation and sources-sought notices in the fall is how you see next summer's awards coming.
Continuing resolutions slow the start. Fiscal 2027 began under a stopgap. Congress passed, and the President signed, a continuing resolution (H.R. 6500) in early September 2026 that holds funding at current levels through December 11, 2026; the House vote was 370 to 48, according to Nextgov reporting on September 1, 2026. Fiscal 2026 opened with a lapse in appropriations and a government shutdown beginning October 1, 2025, and October 2025 construction obligations ($0.88 billion) were the lowest October of the four years we pulled. Under a CR, agencies generally operate at prior-year rates and avoid starting new projects, so new construction solicitations can slide until full-year appropriations pass. Maintenance and repair work tends to continue.
On October 18, 2026, the Buildermuse federal bid board, which pulls open solicitations from SAM.gov daily, listed 5,319 open federal opportunities. Watch that count and the posting dates over the next two months; if full-year appropriations pass after December 11, expect a second wave of postings.
Get Ready Before the Solicitation Drops
Registration, bonding and wage homework all take longer than a response window.
SAM.gov registration. You need an active registration to bid and to be paid. Registration is free; GSA tells registrants to allow up to 10 business days after submission, and validation problems can take longer. Registrations must be renewed every 365 days. See our SAM.gov registration guide for construction contractors for the common snags.
Bonding. Under FAR 28.102-1, the Miller Act (40 U.S.C. chapter 31, subchapter III) requires performance and payment bonds on federal construction contracts exceeding $150,000. For contracts over $35,000 up to $150,000, the contracting officer must require two or more alternative payment protections, such as a payment bond or an irrevocable letter of credit. Your surety's single-job and aggregate limits set the largest job you can chase, so have that conversation before the solicitation you want is posted. If you can't get bonded commercially, SBA's Surety Bond Guarantee program covers contracts up to $9 million for non-federal work and up to $14 million for federal contracts, per SBA's program page. Our guide to construction bonding covers bid, payment and performance bonds.
Wage determinations. Under FAR 22.403-1, federal construction contracts over $2,000 must include the Davis-Bacon wage requirements. The applicable wage determination is attached to each solicitation and varies by county and construction type. Pull current determinations for your area from SAM.gov before you need them, and read our Davis-Bacon prevailing wage guide for how they affect pricing.
Small-business status. Under 15 U.S.C. 644(g), the government-wide goal for small-business participation is at least 23% of the total value of prime contract awards each fiscal year, with separate goals for disadvantaged, women-owned, HUBZone and service-disabled veteran-owned firms. Agencies plan set-asides with those goals in mind. Certifications such as 8(a) take time to obtain, so start well before you need them.
Reading the package. Section L (instructions) and Section M (evaluation factors) of a federal solicitation decide how your proposal is scored. If you have never worked through one, read our walkthrough on how to read a federal construction solicitation before the next one you want is posted.
A Practical Calendar
Based on the obligation pattern and the rules above:
- July to September: awards peak. Many solicitations close; contracting offices are busy evaluating and awarding. Make sure you are registered and bonded so you can accept an award.
- October to December: obligations are low, and Congress is often still working on appropriations. Watch presolicitation notices, sources-sought notices and industry days. This is the time to get on agencies' radar, update capability statements and talk to your surety.
- January to June: appropriations usually settle, and solicitations for the year's work move toward award. Bid the ones that fit, with full response windows.
- Every month: check active opportunities in your state and NAICS codes. Federal work is local in practice; your best targets are within reasonable mobilization distance.
Frequently Asked Questions
When does federal fiscal year 2027 start?
October 1, 2026, and it ends September 30, 2027. Under 31 U.S.C. 1102, the federal fiscal year begins on October 1 of each year.
How much federal construction spending happens in September?
USAspending data for NAICS 23 contract obligations show September accounted for 32.0% of the fiscal year in FY2023, 32.9% in FY2024 and 37.5% in FY2025 ($19.17 billion of $51.12 billion). FY2026 September data are incomplete because Defense Department actions post with a 90-day delay.
Is October a busy month for federal construction contracts?
Not for obligations. October has been the lowest month for federal construction contract obligations in recent years, about $1.0 billion to $1.3 billion, or roughly 2% of the year. The fall is better used for tracking presolicitation notices and preparing to bid the next year's work.
Why do agencies rush to obligate money before September 30?
Most annual appropriations are available for new obligations only during the fiscal year (31 U.S.C. 1502(a)). Money not obligated by September 30 can't be used for new contracts. Some construction funds, such as military construction, are multi-year, but award timing still tends to bunch late in the year.
What happens to federal construction bids under a continuing resolution?
A CR keeps agencies funded at prior-year levels for a set time and usually discourages new starts, so some new construction solicitations wait for full-year appropriations. Fiscal 2027 began under a CR that runs through December 11, 2026.
Do I need a bond to bid federal construction work?
For contracts over $150,000, the Miller Act requires performance and payment bonds (FAR 28.102-1). Contracts over $35,000 up to $150,000 require alternative payment protections. Solicitations may also require a bid guarantee.
