Contractors Should Prepare For Potential Shutdown

As Congress and the Administration appear to be careening toward a potential government shutdown – whether on Friday January 19 or once another short-term continuing resolution expires – it is a good time for government contractors to review their contracts and the potential effect a shutdown might have.

The Antideficiency Act mandates a partial government shutdown when Congress fails to appropriate annual funds. In such situations, agencies with a funding gap will be required to shut down all but a narrowly defined set of essential services and operations. The Act also prohibits the government in such situations from creating new obligations, such as awarding contracts, issuing task orders, exercising options, and making related payments in the absence of a sufficient appropriation legally available for that purpose. Additionally, the Act precludes many government employees from working during government shutdowns. However, there are exceptions for "essential" work