Georgia Tech Procurement Assistance Center

What to expect during a government shutdown: Submitting bids, getting paid, and more

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Background

Federal agencies receive funding through a series of appropriations bills. A number of these bills — including those that fund the Department of Defense, the Department of Health and Human Services and the Department of Education — have been approved for the federal fiscal year that began October 1st.  As a result, those agencies are not being affected by the partial shutdown of the federal government.

Agencies Affected

However, appropriations bills that support other agencies — including the Department of Homeland Security, the Justice Department, the Department of Agriculture, the Department of Transportation, the Department of Commerce, the State Department, the Interior Department, the Commerce Department, and the Department of Housing & Urban Development — have expired.  These nine departments are directly affected by the shutdown, although some units within these departments remain open because they are funded by money that is not subject to congressional appropriations, or their services are deemed “essential,” or because they can operate with what is known as “carryover funding.”

The shutdown has special implications for federal contractors, including vendors competing for federal contracts.  The contracting offices of the agencies affected by the shutdown may be closed.  In some cases, these agencies have issued stop-work orders to their contractors.  Listed below are details.

Should vendors submit bids during a government shutdown?
Some government contractors could go unpaid even after the shutdown ends 
Employers can’t use E-Verify system during shutdown
What vendors learned from the last government shutdown
Signs point to extended shutdown with no deal emerging quickly

Shutdown advice for contractors: If a stop-work order comes, stop work

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Congress’s progress on its 12 annual spending bills for fiscal 2019 means “we’re in pretty good shape ” for funding federal agencies, David Berteau, president and CEO of the 400-member Professional Services Council, told his contractor members in a webinar last Wednesday.

Congressional appropriators have reported all spending bills from committee, with a half-dozen approved by full chambers, Berteau noted, lawmakers’ most productive pace in 12 or 13 years. But with only 11 legislative days left before the fiscal year ends Sept. 30, there is a “slim chance” of all 12 getting through conference or a major negotiated omnibus deal, which is why it is “prudent” for agencies and contractors to prepare for the possibility of a lapse in appropriations. Getting all the bills signed by Oct. 1 “is subject to a lot of decisions affected by both votes and politics,” Berteau said.

“The reason we [present preparation guidance for our members] is not to predict a [shutdown]–we hope there is no government shutdown,” added Alan Chvotkin, PSC’s executive vice president and counsel, but because reacting to agency closures “is an arcane area.”

Keep reading this article at: https://www.govexec.com/contracting/2018/08/shutdown-advice-contractors-if-stop-work-order-comes-stop-work/150578/

Deal-making accelerates as federal contractors jockey for spending

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For the first time in a while, investors are betting big on “big government.”

The federal services market has experienced a jolt of dealmaking activity in recent months as companies position themselves to capture new government spending, breathing life into a sector that has been sluggish for years.

In late January, fast-growing technology contractor ECS Federal was bought for $775 million by On Assignment, a California-based recruiting firm with little experience in the federal market. In the same week, Lockheed Martin spinoff PAE bought the firm Macfadden & Associates in a move that was largely viewed as an effort to consolidate amid shifting budgets.

Meanwhile, Falls Church, Va.-based defense giant General Dynamics upped the ante last week when it announced a $6.8 billion agreement to buy CSRA, one of the largest government IT services firms. Also last week, two private equity firms added to their stable of federal contractors: Veritas Capital is acquiring the government business of PricewaterhouseCoopers; and Arlington Capital Partners is buying a small engineering services firm called Integrity Applications.

Keep reading this article at: https://www.washingtonpost.com/business/capitalbusiness/dealmaking-accelerates-as-federal-contractors-jockey-for-spending/2018/02/18/1c707acc-1343-11e8-9065-e55346f6de81_story.html

4 things for contractors to remember in planning for a possible government shutdown

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With six weeks left in fiscal 2017, budget experts are warning federal contractors that it’s only prudent to begin preparations for the possibility of a government shutdown on Oct. 1.

Lawmakers will have just a few weeks left to develop a budget compromise when they return from August recess before the current spending resolution expires Sept. 30.

House lawmakers passed the Make America Secure Appropriations Act, a “minibus” of spending bills that sets appropriations for the departments of Defense, Energy, Interior, Veterans Affairs and other agencies, as well as the legislative branch. The Senate has passed no appropriations bills yet.

But as budget experts encourage federal contractors to begin preparing for the worst, there is some good news.

Agency contracting officers and senior leadership are more practiced in handling these situations now than they did at the start of the last shutdown in October 2013.

Keep reading this article at: https://federalnewsradio.com/government-shutdown/2017/08/4-things-for-contractors-to-remember-in-planning-for-a-possible-government-shutdown/

VA aims to unsnarl $1.4 billion in delayed projects

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The Dept. of Veterans Affairs is seeking congressional approval for a plan to get moving on $1.4 billion in major construction projects that have been stalled because of differences in funding projects at VA and at the Army Corps of Engineers — which is handling design and construction for VA at those delayed projects.

More broadly, VA also is studying what to do about its hundreds of vacant or underused facilities.

Dr. David Shulkin, confirmed in February as the VA’s new secretary, told reporters in a May 31 White House briefing that 11 VA projects have been held up because the VA and the Corps “still are trying to work through very difficult processes and interpretation of appropriation rules.”

Shulkin, a physician by training, added, “We’re waiting for congressional approval on a joint proposal to move forward, which would allow these projects to move ahead.”

Keep reading this article at: http://www.enr.com/articles/42108-va-aims-to-unsnarl-14b-in-delayed-projects

Congress tries to avoid a government shutdown as Oct. 1 nears

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US CongressLawmakers are working behind the scenes to cobble together a continuing resolution in the next two weeks to keep the government open past Oct. 1.

Senate Majority Leader Mitch McConnell, R-Ky., has scheduled for Monday evening (Sept. 19, 2016) a vote to proceed on a short-term continuing resolution that funds the government through Dec. 9, according to a tweet from CQ Roll reporter Jennifer Shutt. The hope is that the Senate will finish up work on the stopgap spending measure by the middle of next week, and send it over to the House for a vote later next week. H.R. 5325, the legislative branch spending bill, is serving as the legislative vehicle for the short-term CR.

Senators tried to get the measure squared away this week, but partisan battles over various issues cropped up. Earlier this week, Senate Democratic leader Harry Reid of Nevada told reporters that “lots of problems” remained with a Republican stopgap spending proposal, according to The Hill.  Republicans do not want any of the money allotted to fight the Zika virus in Puerto Rico to go toward Planned Parenthood clinics, and there are other fights over disaster aid to Louisiana and Internet oversight. It’s also possible that the House will move forward on its own next week without waiting for the Senate to send something over.

Keep reading this article at: http://www.govexec.com/management/2016/09/congress-tries-avoid-government-shutdown-oct-1-nears/131577

GAO report is a good reminder to bidders: Agencies don’t always follow the rules!

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The United States government has awarded more than $280 billion in contracts so far this fiscal year — FY2015 ends September 30.  Last year, that number was just over $445 billion on September 30.  (Data available online at https://www.usaspending.gov).  While this year’s total contracts awarded will be less than last year, the disparity reveals that the rest of August and September is likely to set a blistering pace of federal contract awards.

GAO-GovernmentAccountabilityOffice-SealIn late July, the Government Accountability Office (GAO) — tasked with investigating how the federal government spends taxpayer dollars — released what many are calling a scathing report.  The report explains that many federal agencies fail to follow the procurement regulations found in the Federal Acquisition Regulations (FAR).  The report is a good reminder for contractors who bid on federal procurements to be watchful of procurements that appear to deviate from the rules.  Data suggest not only that these agencies are breaking the rules, but also that protestors who call them on it are increasingly getting some relief.

The percentage of protesters obtaining relief—either through a protest being sustained or voluntary action taken by an agency—is called the effectiveness rate. From FY2001 to FY2014, the effectiveness rate of GAO protests grew from 33% to 43% (see Figure 2). Over the last five fiscal years the effectiveness rate has remained relatively stable, averaging 42%.
The percentage of protesters obtaining relief — either through a protest being sustained or voluntary action taken by an agency — is called the effectiveness rate. From FY2001 to FY2014, the effectiveness rate of GAO protests grew from 33% to 43% (see above). Over the last five fiscal years the effectiveness rate has remained relatively stable, averaging 42%.  Source: Congressional Research Service at https://www.fas.org/sgp/crs/misc/R40227.pdf

 

Congress typically funds federal agencies through annual appropriations.  An elementary principle of federal fiscal law is that if an agency’s appropriations are not obligated by the end of the fiscal year in which the appropriation was made, those funds expire and generally become unavailable to the agency.  Often, agencies spend their appropriated funds late in the year in an effort to save some “dry powder” early on in case an unforeseen need arises.

With Congress always looking for ways to cut spending, agencies do not want to end a fiscal year with unobligated funds.  In Washington it is hard for an agency to justify to lawmakers the need for more money if the money Congress appropriated last year — money the members of Congress had to explain to their constituents was needed then — was not used.  Accordingly, at the end of each fiscal year agencies resolve this dilemma by finding ways to close the gap between the portion of their appropriation obligated and the portion faced with becoming expired on September 30.  Too often that solution is a less than ideal procurement.

With only a little over $280 billion in federal contract awards to date, federal agencies look posed to make another year-end dash to spend our cash.

Keep reading this article at: http://www.mondaq.com/article.asp?articleid=421792

House Small Business Committee calls for $50M cut to SBA budget request

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The House Small Business Committee recommends cutting almost $50 million from President Obama’s fiscal 2015 budget request of $864.64 million for the Small Business Administration.

Committee Democrats will present their own views on the White House request at a later date, said Ranking Member Nydia Velázquez (D-N.Y.) at a March 25 committee markup.

Although the budget request is for $64 million less than the agency’s current year spending, the March 25 majority committee report  says there’s room for more cuts.

Keep reading this article at: http://www.fiercegovernment.com/story/house-small-business-calls-50-mil-cut-obamas-sba-budget-request/2014-03-26

 

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