Monday Morning Contracting Tip (01/28/19)

Government Shutdown

What happens when the government decides to shut the government down again?  “Be Prepared”

I didn’t share much about the government shutdown during the shutdown because we were already in the shutdown, but I’d like to share some information about preparing for the next shutdown that we hope not to see in the next three weeks or so, but possible. There is a need to review the issues and challenges presented by shutdowns in order to remain prepared for what may come.

• Be very familiar with the clauses incorporated in the terms and conditions of the contract awarded
• Contractors must determine whether they will continue performing or stop work
• A government shutdown is not a self-executing stop-work order
• The shutdown itself does not suspend a company’s obligation to perform nor does it release the government its obligation to pay for performance   
• It can be determined if the contractor’s work require any new appropriation or authorization of spending  
• There’s also a need to identify whether critical government personnel, facilities and resources are available
• It is important to have Direct contact with your Contracting Officer, if your contracting officer issues a stop-work order, then stop work and comply with the order.
• If you do not receive a stop-work order, then you must consider (1) whether your contract is deemed required to support "exempt" government activities and (2) how your contract is funded.    

One important compliance requirement to understand, does your contract required to support activities exempt from the Anti-Deficiency Act?

Many of the legal complications of a government shutdown derive from the Anti-Deficiency Act, which makes it a crime to obligate the United States to spend funds that Congress has not previously appropriated.

There are some narrow exceptions: https://www.gao.gov/legal/appropriations-law-decisions/resources

All The Best

Dannie E. James Sr

JE Group LLC

Phone: 404-557-0027

Fax: 404-521-4018

www.jegroupllc.com

www.amstability.com


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