Partial government shutdown’s impact on contracting community

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David Berteau, president & CEO of the Professional Services Council, and Wesley Hallman, senior vice president of policy at the National Defense Industrial Association, discuss what the shutdown is doing to businesses, and why some companies are being hit harder than others.


The government shutdown has already cut into some companies bottom lines. SAIC reported that they’ve lost $10 million in revenue each week since the shutdown started. Wesley Hallman, senior vice president of policy at the National Defense Industrial Association, says that even though the military is funded, military contractors are still feeling the effects.

“There’s not going to be legislation that is going to be passed necessarily that is going to make them whole. In the past, it hasn’t happened. So, without that, how do you make up for that again?” Hallman said. “Many of the companies that live contract to contract, they have to make hard decisions on whether they stay in the sector over time or not. If they do leave the sector, that leaves our warfighters and other government agencies bereft of those companies and those innovative ideas that make government better.”

David Berteau, president & CEO of the Professional Services Council says that an unforeseen issue from the shutdown is how it could impact background checks.

“There’s a very interesting twist here. We have now moved to continuous evaluation inside of the Pentagon. One of the elements of continuous evaluation is monitoring of your financial condition. If the Office of Personnel Management advises people to work with their lenders and actually get behind in their credit card payments, could this have a negative impact on security clearances across the millions of people who have them?” Berteau said. “These are the kinds of collateral effects that we still have to understand and explore.”