How a Government Shutdown Affects Contractors? EP-040
Release Date: 01/01/2019
Here we go again. The Government has shut down again. This is at least the second time this year. How does this impact my government contracts? That all depends on what Agencies you have contracts with. The Department of Defense (DoD) is partially funded. So, depending on the whether the DoD activity is directly related to the warfighter will determine if the contract will continue or a stop order issued. Let’s see the affected agencies, shall we?
Agencies Affected by the Shutdown?
The following are Agencies impacted by the Government shutdown. Each agency will have to determine which employees are essential during the shutdown. These employees will work for no pay while their coworkers are at home.
- Internal Revenue Service (IRS)
- Health and Human Services (HHS)
- Justice Department
- S. Intelligent Agencies
- Department of Homeland security (90%) operational, only 10% Furloughed
- Department of the Interior (DOI) (Campgrounds, full-service restrooms and concession impacted)
- Department of Transportation (DoT) will mostly be opened with impact on issuance of new pilots’ licenses, medical certificates, research and development stopped.
- National Institutes of Health – will impact research
- Environmental Protection Agency will be working but unable to determine for how long and the extent impacted.
- S. Small Business Administration – locally offices will be shutdown.
Why Can’t My Contract Continue During the Shut Down?
Contractors cannot continue to work during a Government shutdown because of the Antideficiency Act. Congress created this act in 1884 with major amendments to the act in 1950 and again in 1982. This law prohibits the federal government from entering into a contract that is not “fully funded”. So, without the appropriations the government is forced to stop work. For more information on this Act please see Pub.L. 97-258. The Act also does not allow the volunteering of services either.