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Home DoD

DOD Shutdown Guidance Limits Contract Work to Pre-Funded Efforts

by Jane Edwards
November 10, 2025
in DoD, News
The Pentagon. DOD issued updated guidance for the continuation of military operations amid a government shutdown.

DOD released updated guidance for the continuation of military operations and other activities amid a government shutdown.

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

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  • Lack of Oversight May Trigger Stop-Work Orders
  • Departmental Priorities
  • Defense Appropriations Bill Blocked in Senate

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According to the document published Thursday, vendors who were already awarded contracts before the funding lapse may continue to perform work even if it supports non-excepted activities, but only to the extent of funds already obligated on the contract before the lapse in appropriations.

The Pentagon noted that new contracts, renewals, extensions, task orders or exercised options may not be issued or executed unless they support an excepted activity. Until Congress appropriates new funds, no additional obligations can be assumed for non-excepted work.

For the latest GovCon news and updates on acquisition opportunities, make sure you’re subscribed to Executive Mosaic’s trio of daily newsletters: GovCon Wire, ExecutiveBiz and ExecutiveGov, on those sites’ respective homepages.

Lack of Oversight May Trigger Stop-Work Orders

According to the guidance, contract performance cannot continue if it requires inspection or oversight by furloughed federal government employees. In such cases, DOD may issue stop-work orders or terminate contracts.

Departmental Priorities

DOD identified several priority areas that may continue during a funding lapse if suitably resourced, including shipbuilding, depot maintenance, critical munitions, Golden Dome for America, Middle East operations and border security.

For contracts relevant to mission priorities, DOD components should evaluate whether they may be deemed “excepted” and allowed to proceed even in a funding lapse.

Defense Appropriations Bill Blocked in Senate

The Hill reported Thursday that the Senate failed to pass the full-year $852 billion defense spending measure in a 50-44 vote, falling short of the 60 votes needed to advance the bill.

The Senate vote comes as the government shutdown extends into its third week.

According to the report, Senate Democratic Leader Chuck Schumer, D-N.Y., opposed to taking up the measure without first voting on the annual appropriations bill for labor, health and human services.

The defense appropriations bill would allocate $171 billion for weapons systems procurement and $141 billion for research, development and testing initiatives.

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