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Contractors Watch Congress as Shutdown Deadline Fast Approaches

US-POLITICS-OBAMA-CONGRESSThe high probability of a government shutdown if Congress and the White House do not reach a funding deal has contractors preparing for potential ramifications on on their businesses,  Politico reported Monday.

Leigh Munsil writes contractors would not able to communicate with many government employees during the shutdown, if it occurs.

Elizabeth Ferrell, a partner at McKenna Long & Aldridge, told Politico a nearly three-week shutdown could also affect stock prices, existing contracts and halt new contracts.

“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,” she said.

“If it’s a short shutdown, the impact on the defense industry will be probably negligible,” Todd Harrison, a senior fellow with the Center for Strategic and Budgetary Assessments, told Politico.

“But if the shutdown continues for several weeks, then it could start to have an effect,” he added.

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One comment

  1. I am perplexed at how our political leaders can get away with not accomplishing their jobs and yet they still have jobs and continue to get paid. I am especially disturbed at how they believe they can hold our military service members, government workers and contractor’s hostage. I am talking about our budget and the continuing resolution. The last time Congress passed a spending bill was in April 2009 – over four years ago. We have been working on a continuing resolution ever since. A continuing resolution is supposed to be an emergency backup to be used for a short period of time while they finalize the budget. It is not meant to be used for over four years.

    We are yet again in the shadows of a government shut-down. Yes, for over four years they have kicked the can down the street at midnight. Will they do it this time? It is not a guarantee they will. I was in the military during the shut-down of 1995. I was there when they told all the government service workers and contractors to go home. It was painful during the process. We did not know if we were going to get paid at the end of the month, and the month was December. I do not know how badly it affected the individuals that had to go home. I also went through the painful draw-down of the military during the 1990s when there was very little money. We had to buy our own reams of paper and carry it with us to make copies. It was not our tax payers who kept military running. It was our service members who paid for small, but necessary supplies out of our pockets.

    I for one am very tired of waiting until mid-night to see if we turn into a pumpkin. A government shut-down of two weeks or less may not affect everyone severely. Those with leave will be able to take leave. Those with savings and credit will be able to continue to pay their bills. It will however adversely affect those individuals who do not have a backup plan. It will affect everyone’s spending power. It will spill over into communities that have a large government presence. It will have a negative affect during a time of year when spending normally increases, and a time of year that the retail industry depends on those increases. The longer the shut-down the larger the effect will be. The difference with this shut-down over the one in 1995 is that in 1995 our economy was not trying to recover as it is now.

    The reason our Congress and Senate are able to do get away with this is that there is no pain for them. They will continue to get paid even during a government shutdown. Furloughs do not affect them. There are a few who may think and want to act responsibly, but each have their own agenda and they are allowing their own individual agendas to get in the way of working together to act responsibly for the good of America. I believe it’s time we send our political leaders a message, especially to those who refuse to play well together and those senior leaders who have been around for a while allowing a budget not to be passed. In simple terms, they are derelict in the performance of their duties. In the corporate world we would be fired, and in the military dereliction of duty is punishable under Article 32 of the Uniform Military Code of Justice (UCMJ), so why are we allowing our leaders to get away with this?

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