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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