Re:Pentagon Spent $5 Billion on Weapons on the Eve of the Sh...
by bane on Wednesday October 02, 2013 @08:52AM
(#6482071)
Government awards new contracts at the start of the new fiscal year. News at 11.
What happens, and this is true of any organization where your budget is set and allocated by somebody else, is that you have to show that your organization actually needs the budget it was allocated last year by spending or at least committing it all. It sends a signal that this year, when you say you need $x you actually need $x. Coming in under budget in this case, say $x-$k means that a signal is sent that you can probably come in under budget again next year and you'll just get $x-$k to start with since they can use $k somewhere else.
If you actually came in at $x-$k near the end of the FY? Spend $k on anything and everything in sight to bulk up your numbers because you've probably requested $x+$q for next year and have $0 left at the end is a good signal that you could do more with more.
Also, with the shutdown have an indeterminate end, nobody knows how long it'll be before they can award important contracts so if they can clear those out ahead of time they will.
What happens, and this is true of any organization where your budget is set and allocated by somebody else, is that you have to show that your organization actually needs the budget it was allocated last year by spending or at least committing it all. It sends a signal that this year, when you say you need $x you actually need $x. Coming in under budget in this case, say $x-$k means that a signal is sent that you can probably come in under budget again next year and you'll just get $x-$k to start with since they can use $k somewhere else.
If you actually came in at $x-$k near the end of the FY? Spend $k on anything and everything in sight to bulk up your numbers because you've probably requested $x+$q for next year and have $0 left at the end is a good signal that you could do more with more.
Also, with the shutdown have an indeterminate end, nobody knows how long it'll be before they can award important contracts so if they can clear those out ahead of time they will.