Steps to Safeguard Your Small Business During a Government Shutdown
A government shutdown can be a significant disruption for small business federal contractors. Preparing in advance and taking the proper steps can help mitigate the financial and operational impact of a shutdown. The following is a non-exhaustive set of steps and issues that small business contractors may consider: Review Your Contracts: Scrutinize every contract for clauses related to funding, stop-work orders, excusable delays, or the Availability of Funds clause (FAR 52.232-18). Identify which contracts are funded by annual appropriations versus those with multi-year or “no-year” funding. This will help you determine which projects are most at risk. The impact of a shutdown varies greatly depending on the type of contract. Create a master spreadsheet listing all contracts, agencies, funding status, and current work phases. Fixed-Price Contracts: You may be required to continue work, even if payments are delayed. If you are ordered to stop, you may be able t...