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Sep 28, 2010
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Government Procurement Harmed by Year End Politics

The end of the Government fiscal year is upon us and, as usual, Government contractors will be caught in the political cross fire.  Congress will yet again be unable to agree on an omnibus spending bill, so for the foreseeable future, Government agencies will operate on a series of continuing resolutions.  This inefficient but apparently unavoidable process creates significant uncertainty for Government contractors.  Will programs be funded and if so how much?  Should contractors work “on risk”?  Should schedules and work plans be adjusted due to working for months on a partial budget?  Will the budget uncertainty of working under a continuing resolution ultimately increase the cost of the project?  Do some employees need to be furloughed on the hope they can be re-hired when the budget is finally passed?  These and other issues make this an extremely frustrating time of year for all people involved in the non-political day to day world of Government procurement.   Stan Soloway, President and CEO of the Professional Services Council wrote an insightful article on this subject in the September 2010 issue of Washington Technology.

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