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Contractors may struggle under burden of shutdown

October 2, 2013 By ei2admin

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

Filed Under: Contracting News Tagged With: budget cuts, contract payments, essential government functions, government shutdown, shutdown, support services

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