Federal contractors feel impact of partial government shutdown
Tom Marcinko, principal consultant at Aronson, discusses “A Contractors Guide to Surviving a Government Shutdown” and why it’s important that prime contractors remember their subcontractors when planning for a shutdown.
In past government shutdowns, federal employees have been granted back pay by acts of Congress. While a bill introduced by Maryland senators would guarantee federal back pay for all future shutdowns, contractor employees aren’t covered. Tom Marcinko, principal consultant at Aronson, wrote “A Contractors Guide to Surviving a Government Shutdown” to provide contractors with funding gap guidance. Marcinko told Francis Rose that there’s no one-size-fits-all plan for shutdowns.
“The contractors need to approach the shutdown on a contract-by-contract basis, because individual contracts will have different attributes that relate to the shutdown,” Marcinko said. “Maybe you’re doing essential work and the shutdown doesn’t apply, maybe you’re not and you’ll receive a stop work order. Maybe you won’t receive a stop work order, but it’s impossible to do the work because it’s at a government facility that’s closed.”
Marcinko says that companies can find ways to keep their employees busy while not working on government programs.
“Ideally, you would have other contracts that are active they could work on, or perhaps a proposal they could work on in the back office, that’s not always going to be the case. Keeping the employees on the bench, if you will, paying their salaries, some contractors can’t afford that,” Marcinko told Government Matters.