Many companies that cannot perform their federal contract work during the government shutdown will still have to pay their employees, which could be a challenge with their government revenue cut off.
Contractors retain employees who can’t work during the shutdown because once it ends, “you have to have the people available to start work again immediately,” said Trey Hodgkins, a senior vice president at the trade association TechAmerica. “The company is faced with having to pay these people even if they have nowhere to go to do the work.”
They can’t simply furlough their employees the way federal agencies can, for legal reasons.
Contracts that require new funding in fiscal 2014, which began today, are mainly on hold during the shutdown. Those that support essential government functions are the exception, and agencies can also award new contracts for essential functions.
Keep reading this article at: http://www.fiercegovernment.com/story/contractors-may-struggle-under-burden-shutdown/2013-10-01
