Contractors still reeling from shutdown

New shutdown possible?

      The 35-day partial shutdown of the federal government is leaving behind chaos, confusion and more pain for small business federal contractors.

      As federal workers began returning to work early this week, there were numerous headaches for vendors wondering when government invoices will be paid, how soon operations and programs will resume, how new deadlines will be updated and communicated, whether to apply for an Equitable Adjustment (see related story on REAs) and, in general, how quickly operations would approach normal, if ever. It could take weeks or even months.

      With President Trump threatening another shutdown on Feb. 15 if Congress does not provide $5.7 billion for a border wall, there also is anxiety about another possible shutdown.

      The closure cost the U.S. economy $11 billion in January 2019, with $8 billion expected to be recouped, resulting in a net loss of $3 billion, the Congressional Budget Office reported.

      Small federal contractors suffered a $2.3 billion hit from the shutdown, although some of that will be recovered, according to the U.S. Chamber of Commerce.

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