No Shutdown Now, But Plenty of Uncertainty The threat of a government shutdown could be back in two weeks, leaving federal managers and contractors scrambling to keep up with the ever-changing fiscal forecast. Republican and Democratic congressional leaders agreed to extend the government’s authority to spend money until March 18, but only after Senate Democratic leaders accepted $4 billion in immediate spending cuts. The House and Senate quickly passed the two-week extension, and President Obama signed it into law on March 2. House Republicans are insisting on deep cuts in spending over the remaining seven months of the fiscal year. If the Democratic majority in the Senate doesn’t agree to a long-term plan, House leaders said they could pass a series of short-term extensions with spending reductions that would add up to their goal of lopping $61 billion off the 2011 budget. "Living with the threat of a shutdown every few weeks is not responsible, and it puts our economic progress in jeopardy," the president said. “Programs are being delayed and new programs are not starting up,” Ray Bjorklund, chief knowledge officer of the research firm FedSources, wrote in Washington Business Journal. “The fear, uncertainty and doubt, or FUD factor meter, is approaching the red line.” Bjorklund said contractors should not panic, but should focus on making contingency plans. Alan Chvotkin, executive vice president of the Professional Services Council, suggests one contingency plan: If you have a contract option or renewal coming up, try to get the contracting officer to exercise it sooner, to avoid delay because of a shutdown. Chvotkin said Congress has never provided back pay for contractors who were idled in past shutdowns. He said contractors should document any costs incurred in stopping work and restarting, so they can seek to recover those costs.