Government Shutdown Resource Center

On February 9, Congress passed, and the president signed, the Bipartisan Budget Act of 2018, raising statutory caps for both defense and non-defense accounts, and funding the government through March 23. Previously, in late January, a three-day government shutdown occurred due to a lapse in funding before a three-week Continuing Resolution was enacted. 

Even a short-term shutdown can have a significant impact, and it is essential that contractors understand the implications on their operations and what actions they can take during and following the shutdown. The information and resources below address a number of these key questions and will be updated and added to as new developments take place.  

Current and past guidance for selected agencies is available below, with additional agency guidance available from the OMB Repository of Agency Contingency Plans.

We encourage PSC members to send us information about problems, challenges, and issues arising from the shutdown, as well as any information received from the government.

Scroll below for additional news, resources, guidance and reports.

2017 Shutdown Webinar Replay


PSC President & CEO David Berteau Discusses Shutdown Uncertainty

September 2017| Government Matters

Shutdown News

2/9/18 -  PSC Welcomes FY18 Congressional Budget Deal; Awaits President’s FY19 Request 
PSC welcomed the Bipartisan Budget Act of 2018, which was passed by Congress and signed by the president this morning. This bill will enable the enactment of appropriations to fund both defense and non-defense missions. Read more.

2/9/18 - Congress Passes Delayed Budget Deal Ending Hours-Long Shutdown
Congress passed a two-year budget agreement that will boost federal spending by almost $300 billion and suspend the debt ceiling for a year, ending a brief partial government shutdown that began at midnight when lawmakers missed a funding deadline. The 240-186 House vote overcame opposition from many Democrats and a faction of GOP conservatives. The Senate passed the bill hours earlier, 71-28. The measure now goes to the president for signature. 
1/29/18 - Federal Government shutdown, continuing resolutions (CRs), and what contractors need to do
Beth Wingate, President of PSC member company Lohfeld Consulting Group, highlights contractor resources for addressing government shutdowns

1/22/18 - How Government Contractors Can Protect Themselves During a Government Shutdown
PSC member firm Arnold & Porter published an advisory for government contractors facing a government shutdown, including if and when they must stop performance, how contractors may be reimbursed for work performed and costs incurred during the shutdown, and how they can save money during a shutdown without running afoul of applicable labor laws.

1/22/18 - Shutdown Ends after President Signs Short-Term Spending Bill
After three days of contentious negotiations, Congress voted to end a government shutdown on January 22, with President Trump signing the bill that evening.

1/22/18 - A Message from PSC President & CEO David Berteau: The Government Shutdown Continues (members only)
Senate leaders adjourned Sunday night without reaching a budget deal, announcing that they will hold a vote on the budget at noon today, thus, the government shutdown remains intact for now. It is yet unclear whether it will extend into the days to come. Here is what we are doing and saying at PSC, including an action list for government contractors during a government shutdown and a  press release highlighting the negative impact of a shutdown on government missions, military personnel and civilian workers, and on the services contractors who support them.  

1/21/18 - Shutdown continues, but quick end possibly in sight
As the government shutdown enters its third day, the Senate will begin key procedural votes at noon on Jan. 22 to temporarily restore funding. Those votes will come as many furloughed feds are finishing four-hour shifts to wind down non-essential operations. PSC has advised contractors to report to work unless told otherwise, a message echoed by DHS guidance. 

1/21/18 - What federal contractors should do during the government shutdown
Government employees aren’t the only ones who are wondering what they’ll be doing on Monday if Congress can’t reach a budget agreement, federal contractors are also facing a lot of uncertainty. While there are many variables at play, PSC President & CEO David Berteau told WTOP there are a few ways contractors can use time away from federal job sites productively, such as annual ethics training or other required overhead expenses. 

1/19/18 - The real cost of CRs and shutdowns
PSC members Bob Lohfeld (CEO of Lohfeld Consulting) and Simon Szykman (CTO of Attain) discuss continuing resolutions and shutdowns with Mark Amtower on Federal News Radio.

1/19/18 - Government Contractor Shutdown Advisory
PSC members Justin A. Chiarodo and Albert Krachman of Blank Rome LLP offer six suggestions to help address key areas impacted by a shutdown, including contract funding, internal and external communications, recordkeeping, and deadlines.

1/19/18 - Notification to DHS Contractors about a Potential Lapse in Funding
The Department of Homeland Security (DHS) posted to a notice for industry "to advise the Department of Homeland Security (DHS) contractor community of the DHS plans regarding actions that may be necessary in the event that contract funding is affected by a lapse in appropriations."

1/19/18 - Agencies Prep for Shutdown
With hopes for a temporary funding bill dwindling, agencies are preparing to shutter operations, taking their cues from OMB, individual agency guidance and OPM policy. One area that will be a priority in the event of a shutdown is cybersecurity. PSC Executive Vice President & Counsel Alan Chvotkin told FCW that while this emphasis is important, contractors would benefit from more communication from agencies, and advised companies to "keep working until the government tells you to stop."

1/19/18 - Impact of a shutdown on contractors means lost wages, project delays    
Government contractors are often overlooked when it comes to the threat of a government shutdown. And as the most current threat becomes more and more real, many are waiting for guidance from their agency customers. PSC President & CEO David Berteau told Federal News Radio that communication is key to mitigating the worst effects of a government shutdown for federal contractors. 

1/19/18 - Everything You Need to Know about a Government Shutdown
As the federal government edges closer to its first shutdown since 2013, the Washington Post offers answers to common questions about the impact of a government shutdown on federal employees, government contractors, and American citizens. 

1/19/18 - DoD Issues Guidance for Potential Government Shutdown
The Defense Department has issued guidance to its military and civilian leadership on how to proceed if the federal government should shut down at midnight tonight, according to a January 18, 2018  memorandum from Deputy Defense Secretary Patrick M. Shanahan.

1/18/18 - Nonfederal workers may also be impacted by shutdown
It's not just federal employees who are bracing for word that they need to stay home because their offices have been locked. In many cases, sitting alongside thousands of federal employees are government contractors whose ability to work could be in limbo depending on what happens on Capitol Hill today. PSC president and CEO David Berteau weighs in. 

1/5/18 - A Government Shutdown Doesn’t Always Mean Shutting Down IT
Government shutdowns are stressful times for federal employees--especially when they aren’t sure whether they are among those excepted employees expected to come into work. For IT staff, this can be particularly murky, as technology is linked to critical agency missions.

In its 2013 guidance for creating shutdown contingency plans, OMB addressed the issue directly, stating that IT operations and supporting employees can only continue “if they are excepted activities under the Antideficiency Act, or where their continuation is necessarily implied from a congressional authorization or appropriation of other continued functions.”

Which functions would remain operational during a shutdown varies from agency to agency and office to office. To cut through some of the confusion, and provide a comparison of contingency plans, here’s a look at how major federal agencies plan to deal with IT during a shutdown.

Click here for previous Government Shutdown news.