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How some contractors successfully weathered the shutdown

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The 35-day government shutdown cost thousands of small- and mid-size businesses nationwide that supply services or technology to the federal government $2.3 billion in revenue and forced tens of thousands of layoffs.

As once-furloughed federal employees and contractors begin the slow business of reopening government, the cold reality is that another shutdown looms if a spending deal is not reached before Feb. 15.

It’s a time of “uncertainty” for contractors, according to David Berteau, who represents hundreds of companies as head of the Professional Services Council, and some contractors “may be in a holding pattern” while they wait and see whether the government shuts down again. In the interim, Berteau is advising contractors to proactively seek backed government invoices for money owed, sniff out new solicitations and bid on as many opportunities as they can.

Yet amid all the doom, gloom, and wall-to-wall news coverage, the longest government shutdown in history brought about pockets of optimism, innovation and strategy and teachable moments the contracting community that could serve thousands of businesses and 1 million-plus individual government contractors moving forward through future shutdowns or trying times.

Nextgov spoke with two small government contractors about their strategies for handling the shutdown and lessons learned.

Keep reading this article at: https://www.nextgov.com/cio-briefing/2019/01/how-some-contractors-successfully-weathered-shutdown/154568/

The next gov’t shutdown: How contractors can prepare

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Congress’ short-term spending bill signed on Jan. 22, 2018 ended the nearly three-day government shutdown. As this spending bill only appropriated funding for government operations for three weeks, however, and does not resolve the underlying political disputes, it is unlikely to put an end to shutdown politics for good, or even for long.

Participants in the federal market would be wise to review the issues and challenges presented by shutdowns in order to remain prepared for what may come.

What Activities Can Continue During a Shutdown?

During a shutdown, federal contractors must determine whether they may continue performing. A government shutdown is not a self-executing stop-work order; a shutdown itself does not suspend a company’s obligations to perform or the government’s obligation to pay for performance. What matters is whether a contractor’s work requires any new appropriation or authorization of spending, and whether critical government personnel, facilities, and resources are available.

Keep reading this article at: http://www.mondaq.com/article.asp?articleid=666774

Also see DoD’s Jan. 18, 2018 Shutdown Guidance (Jan. 18 2018) at: https://www.defense.gov/Portals/1/Documents/pubs/GUIDANCE-FOR-CONTINUATION-OF-OPERATIONS-DURING-A-LAPSE-OF-APPROPRIATIONS.pdf,

What federal contractors should do during the government shutdown

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Government employees aren’t the only ones who are wondering what they’ll be doing on Monday if Congress can’t reach a budget agreement; federal contractors are also facing a lot of uncertainty.

Depending on when their contract was funded, what agency they’re with, what they’re doing, and where they work out of, some contractors may continue working as if nothing has changed.

If the federal personnel the contractor works alongside is locked out, the contractor may be too.

There are a lot of variables at play and most of them look to be less than ideal for contractors, who in most cases will lose money during this ordeal. But while everyone hopes this will remain a short-term dispute, there are a couple of ways contractors can use the time away from federal job sites more productively.

Keep reading this article at: https://wtop.com/government/2018/01/federal-contractors-government-shutdown/

 

 

Impact of a shutdown on contractors means lost wages, project delays

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Government contractors are often overlooked when it comes to the threat of a government shutdown. And as the most current threat becomes more and more real, many are waiting for guidance from their agency customers.

“We are hearing there is a lack of communication,” said David Berteau, the CEO of the Professional Services Council, an industry association. “We saw cases in 2013 where the contracting officer and contracting officer representative for a program gave direction to the contractor and put them on the list of cleared individuals, but when they showed up at the base or installation, there was no guard or the guard didn’t let them in. There were a lot of those disconnects in 2013. If a shutdown happens this time, the same thing may happen.”

PSC, the IT Alliance for Public Sector and the Coalition for Government Procurement are offering resources centers for contractors as they plan for a possible partial shutdown.

Keep reading this article at: https://federalnewsradio.com/government-shutdown/2018/01/impact-of-a-shutdown-on-contractors-means-lost-wages-project-delays/

Government contractor shutdown advisory

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With yet another government shutdown looming, contractors face a number of uncertainties and challenges that warrant close attention — regardless of whether a shutdown takes place or how long it lasts.

Among other challenges, contractors may face:

  • a lack of incremental funding;
  • the inability to enter into new contracts or contract modifications;
  • closed government facilities;
  • furloughed government employees;
  • delayed payments;
  • increased indirect costs; and
  • unexercised and deferred contract options.

Below we offer six suggestions to help address key areas impacted by a shutdown, including contract funding, internal and external communications, recordkeeping, and deadlines.

Keep reading this article at: https://governmentcontractsnavigator.com/2018/01/19/government-contractor-shutdown-advisory/

Radar deal tops DoD’s October contract awards of $17 billion, analysis shows

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Raytheon Co., the world’s largest missile maker, won the U.S. Defense Department’s biggest contract last month, a potential $1.6 billion deal to build advanced radar for new naval destroyers.

The Waltham, Mass.-based company received a Navy contract to develop the air and missile defense radar for Arleigh Burke-class destroyers beginning in 2016, according to the Oct. 10 announcement.

Raytheon beat out Bethesda, Md.-based Lockheed Martin Corp. and Falls Church, Va.-based Northrop Grumman Corp. for the work, most of which will be performed at the company’s Sudbury, Mass., site.

The award topped a list of more than 180 contracts announced in October, with a combined value of more than $17 billion, according to a Military​.com analysis of the Pentagon’s daily contract announcements. That figure doesn’t reflect what is actually spent, or obligated, because many deals are only partially funded at first.

The total is less than a third of the value of agreements announced in September, which is typically the busiest time of year for federal contracting as employees rush to ink deals before the Sept. 30 end of the fiscal year. The trend was likely exacerbated this year by the federal government shutdown.

Keep reading this article at: http://www.dodbuzz.com/2013/11/05/radar-deal-tops-17-billion-in-october-contracts/

DoD acquisition staff back to work, they just can’t buy anything

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The Pentagon has recalled 90 percent of the 350,000 civilians furloughed last week, including acquisition, contracts and logistics personnel.

But, as Defense Secretary Chuck Hagel made clear in his recall memo, due to the fact that the Pentagon doesn’t currently have an appropriations bill, those folks don’t have any money to buy stuff.

The Pentagon brought back most of the furloughed civilians based on an interpretation of the quickly written Pay Our Military Act, signed by President Obama on Sept. 30. The law says furloughs don’t apply to civilian employees whose responsibilities contribute to the morale, well-being, capabilities and readiness of service members.

Keep reading this article at: http://www.defenseone.com/management/2013/10/dod-acquisitions-staff-back-work-they-just-cant-buy-anything/71483

Shutdown consequences set to begin for government contractors

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Contractors in recent weeks have complained about losses in productivity from preparing for a potential government shutdown, but worse impacts are almost certainly on the way now that the closure has taken effect.

The Department of Homeland Security warned of what would be in store last week in a letter to partner firms. “As a consequence of the lapse, certain planned procurements may be cancelled and certain existing contracts may be stopped, reduced in scope, terminated or partially terminated,” the memo said.

DHS promised to notify businesses of any changes that would be necessary, but the answers cannot come soon enough for some firms.  A recent Post article quoted company planners saying they found it nearly impossible to determine how the shutdown would affect them because of the many variables involved.

Among the factors to consider: Whether contracts are covered by past or future congressional appropriations — the latter would require a new spending deal from lawmakers and the White House  – and whether their workers are exempt from furloughs because they assist with essential government functions.

Keep reading this article at: http://www.washingtonpost.com/blogs/federal-eye/wp/2013/10/01/shutdown-consequences-set-to-begin-for-government-contractors/ 

Federal government prepares shut-down count-down

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Agencies on Friday began posting their contingency plans online to prepare for a possible government shutdown on Tuesday, Oct. 1. If the government closes, approximately 800,000 federal civilian employees could be furloughed. Those placed on unpaid leave will receive official furlough notices on Oct. 1, if necessary.

We’re compiling a list of agency shutdown guidance as it’s posted. We’ll continue to update this information over the next few days as agencies publish their plans. The Office of Management and Budget also will link to agencies’ guidance on its website. Click here to read the 2011 contingency plans that agencies prepared the last time the government nearly shut down.

Keep reading this article at: http://www.govexec.com/pay-benefits/2013/09/agencies-post-shutdown-plans-online/70976

Contractors brace for possible government shutdown

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The threat of a federal government shutdown is even more bad news for a  defense industry struggling to weather sequestration.

Following a summer of Pentagon furloughs and with other sequestration cuts  starting to sink in, the government — caught between a gridlocked Congress and a  dug-in White House — is marching to the brink of a complete halt, which industry  sources say could do irreparable damage to defense firms.

“A shutdown means that there’s no additional funding that is  made available for contracts,” said Elizabeth Ferrell, a partner at McKenna Long & Aldridge who’s worked in government contracts law for more than 30 years.  “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, government people will be  furloughed.”

Defense contractors would have to work in a vacuum, she said, when normally  they rely on give-and-take with government employees. “The government will cease  to function, except for a very limited number of essential people,” she  predicted.

Keep reading this article at: http://www.politico.com/story/2013/09/defense-firms-brace-for-hard-hit-of-a-shutdown-97179.html.

 

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