Legal Meets Practical

On Wednesday, President Obama signed a bill to fund the government through December 11, averting a shutdown and giving lawmakers about 10 weeks to negotiate a longer-term budget solution.

The 2016 fiscal year began on Thursday (October 1), and federal agencies would have had to furlough thousands of government workers if not for this last-minute reprieve.

As many of you may remember, the last government shutdown went on for 16 days in 2013 and cost the U.S. economy about $24 billion (especially since many government workers were paid administrative leave for doing nothing, not to imply this was their fault in any way).

The push by Republicans to defund Planned Parenthood threatened a government shutdown. When it came down to the wire, however, and Democrats continued to block the provision, Republican leaders removed it to let the bill pass. The House did pass a separate resolution to defund Planned Parenthood, but this was more of a statement than anything else – the resolution will not be taken up by the Senate.

So, as a government contractor, what do you need to know about shutdowns? We averted the issue this time, but in ten weeks, we might not be so lucky. Be prepared by reviewing these five tips:

• Know what gets shut down. TheAntideficiency Act governs how a shutdown works. It says agencies can’t obligate funds or contract work without appropriations. Agencies are also prohibited from accepting volunteered services.There are exceptions where contractors can continue to work, including emergency risks to property or human health, such as a hurricane. Agencies funded on multi-year appropriations or no-year appropriations can also remain open, leaving contractors some options, depending on what the agency projects they may be working on.

• Befriend your contracting officer. In theory, the contracting officer should be the person with access to the most accurate information relating to your contract(s). Don’t be shy about reaching out to him or her about the status of your contract(s); however, be cognizant of the fact that your contracting officer is undoubtedly stressed and may be dealing with other folks who are less than happy. You know the old saying – more flies with honey.

• Don’t stop working until you get a stop work order. We know how it works in government contracting. Don’t stop performing under your contractual obligations until you get your order in writing. If there is any ambiguity, email your contracting officer (for the paper trail) about status and document any conversations you have with him or her in an email later sent (to clarify your discussions, confirm what you’re doing, etc).

• Document everything. Document everything you do in a government shutdown, particularly those expenses occurred after a stop work order is issued. The government reimburses certain expenses incurred in government shutdowns.

• Know your risk. Especially for small businesses doing business with the government, time is money. If you’re doing one thing, you can’t do something else. If you work in construction and take on a commercial project while you are in limbo with the government, know that the government shutdown might end any day. Also, if you incur unforeseen costs because of a shutdown, such as having to cancel conferences and other events, some can be reimbursed through the government’s policy on equitable adjustment.

Thank goodness no one needed to use these tips this time around. But in 10 weeks, if a longer-term budget solution hasn’t been reached, you might need to dig this article up.

*Did you find this article informative? If so, sign up for Sarah Schauerte’s legal blog on veteran small business issues at: https://legalmeetspractical.com. Also, Legal Meets Practical is now on Twitter! Follow Sarah Schauerte for breaking news here.