As the Government approaches yet another potential shutdown, we wanted to bring our reader’s attention to the information we have previously provided on this topic and some just-in-case planning suggestions. While unfortunate, the shutdown battles have become a perennial occurrence for most of the last two decades. We began writing on the topic prior to 2010, and our blog archives go back to 2012. The advice from these older blogs is just as relevant to contractors now as when initially published. Below are a few blogs we’ve published on the government shutdown topic:
- Government Closures & Shutdowns for Government Contractors (2018)
- Government Shutdown? Impact on Contractors (2013)
If you have specific concerns or questions, please let us know. We would be happy to talk through your situation, the potential impacts of a shutdown, and what you can do to prepare and protect your company.
Additionally, now is the time to coordinate with the Contracting Officer as to how best to continue performance on existing contracts during the shutdown – should it happen. Many contracts, especially service contracts, require daily access to Government locations and interaction with civilian and military personnel. Non-productive time by contractor employees is not a good thing for either party to the contract. Under even a cost-type contract, this eats into the limited funding and can impact the program. Under a fixed-price contract, it comes out of your pocket. Having a plan to continue efficiently and effectively performance benefits everyone. Additionally, should a request for equitable adjustment be needed due to the actions of the Government, this plan can help the groundwork and shows due diligence.
As a side note – many contracting officers are not that knowledgeable of the program under contract, so you are likely going to have to bring the Government’s program staff into this planning.
The big takeaway from this is that even though the Government may be shut down and payment for your contractual service could be delayed, you are still required to continue contract performance as efficiently and effectively as possible.
Redstone GCI assists contractors throughout the U.S. and internationally with understanding the Government’s expectations and supporting contractors from contract award to contract closeout. We would be happy to assist you with questions and concerns. Our staff includes experts in human resources, accounting, audit support, government compliance, and contract administration to assist our clients in government contracting.