Government Shutdown Seems Inevitable
The latest budget negotiations between the House, the Senate and the White House ended without a deal being reached. As a result even previously optimistic souls are now predicting the shutdown will happen. The current continuing resolution expires today (Friday, April 8th). Please see this breaking news story from the Washington Post for a detailed description of the stalled negotiations.
Contractors may also want to review a link to our “white paper” describing steps contractors should take to prepare for and ultimately survive the shutdown. We will continue to monitory the situation and provide updates as they are available.
The political stalemate in Washington is not over and still could lead to a Government shutdown. On March 18, 2011, another continuing resolution was signed funding the government until April 8, 2011. If our leaders cannot reach a compromise, the Government will be out of money beginning on April 8th. The total ramifications of a Government shutdown are difficult to predict. What can be predicted is that a shutdown will adversely affect Government contracting. Someone may “win” this game of brinkmanship but, regardless of political orientation, most Government contractors, contractor employees, and the important Government programs they support will suffer.
Of course the shutdown could still be averted or it could be of such a short duration that it is only a minor inconvenience. But with so much at stake, it would be foolhardy for Government contractors to simply assume a shutdown won’t happen (remember what happened in 1995?).
The ramifications faced by contractors during a Government shutdown are widespread and vary in degree from annoying to the catastrophic. Download our whitepaper, written by Tom Marcinko, The Government Shutdown – Contractor Perspective Likely Impacts and Possible Actions, to build your action plan.
Thomas Marcinko is a Principal Consultant in Aronson’s Government Contract Services Group. He has over 25 years of government contracts experience, including proposal development, contract and subcontract administration, FAR compliance, small business programs, and government audits.
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