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DoD Guidance on Govt Shutdown to Impact New Contracts

The Defense Department has released new guidance for the continuation of military operations and other activities amid a government shutdown.

The document published Thursday states that the shutdown will not affect government contractors that provide services under a fully funded contract the department awarded prior to the expiration of federal funding.

New contracts such as task orders, contract renewals and exercise of options that do not support “excepted activities” may not be carried out under the shutdown.

“In cases where additional funding is required and/or oversight, engagement, or inspection by federal employees who have been furloughed is critical to successful performance under the contract and the contract is not required to support an excepted activity, the issuance of stop work order or the termination of the contract may be required,” according to the document.

Defense Secretary James Mattis wrote in a Friday memo that DoD will continue to carry out daily operations worldwide during a government shutdown, DoD News reported Saturday.

The shutdown resulted after Congress failed to pass another stopgap bill Friday.

“Ships and submarines will remain at sea, our aircraft will continue to fly and our warfighters will continue to pursue terrorists throughout the Middle East, Africa and South Asia,” Mattis noted.

“While training for reservists must be curtailed, active forces will stay at their posts adapting their training to achieve the least negative impact on our readiness to fight,” he added.

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