Recommendations for Preparing for a Government Shutdown

Recommendations for Preparing for a Government Shutdown

MGT 590

Valerie Chandler

October 28, 2018

In preparing for this presentation, I came across a news article from Reed Smith, an international law firm, that advises on how to prepare for a government shutdown. The following are my suggestions to the firm to prepare for the impending government shutdown based on this article.

Consider the Shutdown's Likely Influence on Our Existing Contract Funding

The shutdown’s impact to existing contracts relates most directly with the financial support of those contracts. A crucial factor for establishing whether contract funding is lost during a government shutdown is whether the contract is completely funded or funded in phases. According to the Anti-Deficiency Act, federal administrators may not make payments or sustain agreements more than the amount of accessible funds or before funds have been allocated. Therefore, with the lack of federal funds, work in contracts for which subsidy has not been applied may need to be stopped.

On the other hand, the Department of Justice states that certain contracts are released from the ADA's ban on receiving payments, including contracts associated with statutory responsibilities of the president, food and drug assessments, air traffic control, reactions to environmental or manufactured catastrophes, law enforcement, and the management of financial markets. Additionally, the Office of Management and Budget states that some businesses may continue to operate, however they will not get compensation while the government is shutdown.

However, even if the funding has been appropriated for the continuing operation of a government contract, logistical and other problems may occur at some stage in the shutdown to delay that work. The possibility of funding is a vital component, but it is not enough. I advised that this firm take into account the following matters when creating a government shutdown course of action plan: The type of products or services the contact provides and the state it is being performed in; the nature of contract, whether it is fixed price or cost reimbursement; whether the contract is completely funded or funded in phases; whether the contract contains provisions for example restriction of expense or funds; what added costs will be elicited by the shutdown; and which subcontractors will be affected by the closure.

Contact our Contracting Officer About the Operational Expectations For the Duration of the Shutdown

Despite whether it appears obvious from the source or type of our contract funding, or the nature of our operations, that our contracts continue on during the shutdown, it is imperative to contact our contracting officer to confirm what is required of our firm and which operations will continue normally. It is imperative to get with the CO as soon as possible Contacting your CO as soon as possible to establish the firms’ operational obligations for the duration of the shutdown and, if our operations are to continue normally, to tackle any logistical problems that could occur. For instance, the lack of or shortage of federal employees at a contract worksite may cause delays or barriers to your access. For instance, countless products need consent from other organizations before they can be transported into or out of the country. If these officials are furloughed, distributers and exporters may encounter setbacks. For example, furloughs at the EPA caused a stop to all imports of pesticides in the U.S. Imports of lumber and steel were likewise hindered along with exports of semiconductor manufacturing equipment. (Morris, Clark, & Esterl, 2013).  Airbus was incapable of supplying new airplanes to JetBlue and US Airways since the FAA employees who endorse airplanes were furloughed. (Ostrower, 2013) Recognizing these issues in advance and devising alternative means of access that are still within the terms of your contract will permit your continued efficient performance. The firm should document these discussions and ask the CO to provide in writing any instruction or course of action regarding your expected performance during the shutdown.

Evaluate the Repercussions of our Remaining Contract Operational Expectations

While clarifying the expectations with the CO, I would also advise the firm to establish how a modification or pause to our government contracts will affect the company’s overall operations. For instance, the government closure may involve having to place our employees or however compensations for the work may be postponed. These modifications could considerably affect the firm’s operation considering 30% of our contracts are government contracts. Being aware of these problems and being able to concentrate on them with our CO will allow our firm to ascertain approaches to lessen the costs of the  government closure.

Share with our Staff and Subcontractors the Anticipated Effect to Overall Operations

Sustaining the company during the shutdown is not merely about implementing a line of attack to tackle work stoppages and obstructions, but also about sharing the relevant specifics of those strategies to the individuals that will be accountable in some way for executing them. Notifying the staff and our subcontractors about their operational expectations during the shutdown will show that upper management has thoroughly and meticulously considered the circumstances and doing all they can to keep the firm and employee’s careers in place. Although in some situations the information may not be good, it must still be conveyed out of principle and also because it may be mandatory by national and local labor and employment laws, shared bargaining contract, or agreement.

Continue These Discussions and Keep account of the Firm’s Performance

Nobody can guess how long a government shutdown may continue. As the closure lingers, continue frequent interactions with the CO, staff, and subcontractors about their operational expectations. I recommend recording everything, from accounts of the labor the firm utilizes, to specifics of the exchanges with staff and subcontractors about their operational expectations, and any other method used (and any cost incurred) in connection with the firm’s continued operations. Likewise, record the intentions for taking these actions, and how they aid your operational expectations. Contingent on the type of contract and the relevance of particular contract clauses, the firm may be able to acquire compensation for expenses the firm sustained to maintain the firm’s performance during the closure. However, any request for such compensation will require sufficient documentation.