Strategies for Contract Management in Preparation for a Government Shutdown

    Cross-functional teams can assess risk ahead of a potential shutdown by:

    • Engage with government clients ahead of time to determine if staff will be deemed “essential”,
    • Contact contract officer to see whether obligations can be accelerated,
    • Identify contracts executable under shutdown, revenue implication for those that aren’t,
    • Determining if contracts can be modified after shutdown to mitigate, make up lost revenue,
    • Knowing the most vulnerable prime contracts on which they have subcontractor role,
    • Complying SEC filings to reflect risk, for publicly traded companies.

    Companies can also take steps to manage their personnel by:

    • Preparing staff most at risk of furlough and determining pay and leave policies,
    • Recognizing that contractors have been ineligible for backpay even if federal workers got it, making repayment timing uncertain,
    • Training employees about contract officer and client agency staff furlough, building/work site closures, halt of background check processes,
    • Paying salaries of employee even if stop-work order issued on contracts,
    • Continuing work on a contract unless a stop-work order is issued,
    • Barring staff from volunteering to perform work.

    Connect with a CFO Enrollment advisor to learn how we can partner with your team to mitigate the impact of a government shutdown.