October 11 2013 Copyright (c) 2013 Business Research Services Inc. 301-229-5561 All rights reserved.

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  • Tips for Surviving the Shutdown

    Government contractors large and small are in upheaval as a result of the federal shutdown that started on Oct. 1.

    The effects on the vendor community are still evolving. Many contractors will continue to work for various reasons and the effects will vary on a case-by-case basis.

    For contract employees, the impact will depend on how and when the money that funds their contracts was obligated by the government.

    “A shutdown means that there’s no additional funding that is made available for contracts,” Elizabeth Ferrell, a government contracts expert at McKenna Long & Aldridge, told Politico. “So with very limited exceptions, there are no new contract awards, no additional funding obligated to existing contracts; contractors are faced with performing when there are no government people around (and) government people will be furloughed.” (Web link http://goo.gl/wKp3sN)

    Still, some contracting activity continues. Over $1.1 billion has been obligated by 31 federal agencies since Oct. 1, according to the American Small Business Coalition (Web link: http://goo.gl/eSg8cE)

    The situation is full of uncertainty and contractors are being advised to stay in close touch with their agency contracting officers as much as possible.

    "There is no one-size-fits-all advice that fits all contractors in a shutdown," Steven Koprince, government contracts attorney, told Set-Aside Alert.

    Meanwhile, here are some resources to help:

    • Dealing with a Government Shutdown: Six-Step Action Plan, by Bradley Wine of Morrison & Foerster LLP: http://goo.gl/n0eYcN
    • Shutdown Action - What You Need to Do Now, from accounting firm Cherry Bekaert: http://goo.gl/kJ7Zds
    • Government Shutdown Resource Center, from the Professional Services Council: http://goo.gl/yfKMBw
    • Government Shutdown Begins: What it means for small businesses, from CPA Practice Advisor: http://goo.gl/tZOpSi
    • How the Government Shutdown Affects You, from Aronson FedPoint blog http://www.aronsonblogs.com/gcsg/?p=9460
    • Client Alert on contractor labor and employment issues during government shutdown, by Piliero Mazza PLLC: http://goo.gl/wRQd9F
    • Employment Law Issues Facing Government Contractors in the wake of the Government Shutdown, by Proskauer Rose LLP http://goo.gl/7e0WmL
    • Agency-by-agency shutdown guidance, by Federal News Radio: http://goo.gl/W4x4NN


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