Sweep Ups - What's in Your Recipe?
I was recently asked for an explanation about “Sweep Up Funds”. Here’s an analogy to highly simplify the concept. Think of “sweep up” in terms of food where groceries = funding, meals = government contracts, recipe = scope of work, a week = a government fiscal year, and the grocery store = Treasury.
If you have received all your groceries for the week and have everything you need to make your meals, then you don’t have any groceries to “sweep up” for adding to a meal or sharing with a friend. Also, you don’t need to ask your neighbors or go in search of anything else to make your meals (sweeping up from others).
However, if you got a bag of 6 bell peppers and only need 4, and you can’t use the other 2 for any of your meals, then maybe one of your neighbors could use the other 2 so you don’t have to throw them away. In that case, your neighbor(s) “swept up” the food from you. If you found a way to use the extra for your recipes, then they were "swept" into your meals. If you gave away or used the 2 extra bell peppers (swept up groceries), you are likely to still get 6 peppers in your next weekly installment from the grocery store. On the other hand, if those 2 extra bell peppers don’t get used then they are thrown away (lost) because you aren't allowed to incorporate them into next week’s meals. The result is that you will most likely only get 4 bell peppers in your next budget from the grocery store even if your meal plan now calls for 6.
Alternatively, you bought 2 bell peppers and need 4. So you start knocking on your neighbors’ doors to see if they have 1 or 2 that you can use. If not, you ask your friends, and others at work – hoping someone has the extra bell peppers you need. You are trying to “sweep up” groceries from people in your world. If no one has extra bell peppers, you cannot go back to the grocery store so you do without. In this case you can request more bell peppers for next week and the grocery store will consider providing the additional groceries.
This analogy illustrates in a simple way the basics about "sweep up" funds. For the Federal Government, budgeted funding is considered “use or lose”. Money that hasn’t been allocated to its planned for contract will eventually be either “swept up” or lost. There is no single official date that money is swept up. “Sweep up” typically begins in early July (start of the Government Fiscal Year 4th quarter). This year’s RUMINT is that the sweeping has already begun.
So, where does “sweep up” money go?
“Sweep up money” may be used on another one of a Program Manager’s existing contracts; on occasion it is placed onto a newly awarded contract; often it is passed along to another Program Manager for use on one of his/her existing contracts. Frequently, it is MiPR’d (Military Interdepartmental Purchase Request) to another agency for use on one of its contracts.
“Sweep up” funds sometimes end up on random projects unrelated to what the money was originally intended to support.
Your Program Managers may have their own unallocated funding that could be swept up into another project. The best way to position yourself is to have a detailed plan for the sweep up funds and discuss options with your Sponsors. Show your Sponsors what they are going to get for their money – be specific. Think small scale and large scale. Why should they spend their extra dollars, or go find extra dollars to spend, on you? Also, consider working with your prime contractors to collaborate on getting sweep up money for your joint programs.
Key for using “sweep up money” is that the color of the money, the money’s expiration date, and the budget line item descriptions correlate to where the money is swept to for use. All types of money (R&D, S&T, O&M, etc.) can be swept up, or lost. 1-year money has to be allocated for a project that is going to be completed within its 1-year expiration date; 2-year money has a longer time frame. No year money tends not to ever be swept up.
When budgeted money isn’t allocated to a contract, it is “lost” because agencies are “forced” to return the unused portion to the Treasury. Typically the amount “lost” is then not included in the budget for the next fiscal year either. So it is a double whammy – lost from the current fiscal year PLUS reduced from the next fiscal year.
During this year's “Sweep Up”, whether you are a Government Program Manager or a Federal Contractor, may you have sufficient groceries, or be able to obtain more, for the meals you are preparing so you don’t have to throw anything away or give it back to the grocery store.
About the Author
Angelique brings over 20 years of cradle-to-grave federal contracting experience.
“Bridging the gap between the often drab administration and the allure of scientific exploration to make way for innovation is what I do best. Strategically guiding my clients through creative conversations allows them to develop the streamlined systems and power partnerships required to achieve optimal results.”
~ Angelique S. Dimmick, Founder and Strategist
