Services
As a free service to the contractor community (inside and outside of the Government), Centre is offering a White Paper which contains background information, the legal guidance to follow in the event of a shutdown and practical information for contractors. To obtain the free White Paper, please contact Eric Crusius, Esq. by e-mail (ecrusius@centreconsult.com) or telephone 703-288-2800 x238.
Government Shutdown Furlough Counts
April 8, 2011
GovExec: http://www.govexec.com/dailyfed/0411/040811Kl1.htm
Department of Justice Guidance on ShutdownFrom a Division within the Department of Justice
Date: April 8, 2011
Subject: Contractor Guidance related to potential lapse in FY2011 Appropriations
Dear Contractor:
As you are aware, the FY 2011 Appropriation (Budget) for the Department of Justice has not been passed by Congress as of this date. The current Continuing Resolution (CR) is scheduled to expire on April 08, 2011 at midnight. In the event a FY 2011 Appropriations Act or a new CR is not passed prior to the expiration of the current CR, there will be a lapse in available Government funding. This lapse means that there will be no funds available to obligate and allocate to your existing contract with OJP for continued performance. In addition, if your contract has been funded with prior year funds, there will be no Government personnel available for oversight and administration of your contract. Therefore, upon the expiration of the current CR, and in the absence of a FY 2011 Appropriations Act or a new CR, you are hereby ordered to stop any and all work associated with your contract(s) with DOJ. You will be issued an official "Stop-Work Order" letter on Monday, April 11, 2011 as a part of the "orderly shutdown of the Government". Once a FY 2011 Appropriations Act has been passed and normal Government operations are able to resume, you will receive a "Stop-Work Order Cancellation" letter outlining what contract activities may resume and the effective date. Contractors are cautioned not to perform any contract related activities during the "Stop-Work" period, as to do so is at your own risk and you will not be reimbursed for these incurred costs.
We realize the inconvenience this may cause and appreciate your compliance.
What's Closed, What's Open?April 8, 2011
With the possible government shutdown approaching, what will be closed and what will be open?
CNN: http://www.cnn.com/interactive/2011/04/politics/interactive.govt.shutdown.list/index.html?hpt=T2
Government Shutdown: The Latest Information
With a looming government shutdown approaching on April 8, 2011 and no sign of a continuing resolution or budget being passed, Centre has launched govshutdown.com to get as much information out to its clients and the government contracts community as quickly as possible. We will link to breaking legal issues, news, and guidance from the Government as it happens.
The latest information will be at the top of the page. Feel free to check back often. While we are launching a new website soon, feel free to browse our current website for more helpful information inside and outside the government contracts world.
Harry Reid: Government Shutdown "Likely"
April 7, 2011
Breaking on CNN: http://m.cnn.com/primary/_pA1APw-iFrNnkoQFf
Agencies Prepare for Shutdown
March 5, 2011
OMB has instructed agencies to prepare their employees for a shutdown. More here: http://www.govexec.com/story_page.cfm?articleid=47504&oref=todaysnews
The Real Budget Deadline: TODAY
April 5, 2011
By the House’s own rules (established when the GOP took over the House this past November), all bills must be on the floor for 72 hours before they can be considered. That means any budget must be on the floor by midnight tonight.
House GOP Readies for Shutdown
April 5, 2011
Politico is reporting that the House GOP is distributing its own shutdown plan to Congressional offices this morning in the event that a shutdown occurs on Friday. More on this can be found here: http://www.politico.com/news/stories/0411/52532.html
Government Shutdown Update - New Audio Seminar and Centre Website and White Paper Updates
March 30, 2011
Just yesterday, Senator Pryor of Arkansas declared that “[w]e’re probably looking at a shutdown.”
As both sides of the budget debate dig in their heels and a Government Shutdown appears more likely, Centre Law Group will be holding another audio seminar for contractors and their counterparts in the government. The audio seminar will take place on Wednesday April 6, 2011 (just two days before a possible shutdown) from 12:00 p.m. until 1:30 p.m. ET. Participants to the audio seminar will receive a PowerPoint presentation at or before the seminar. The audio seminar is $35 (but free for current clients). Please register online for the seminar at Government Shutdown Update. Centre clients can contact Nicole Snyder by e-mail (nsnyder@centreconsult.com) or telephone (703-288-2800 x233) to register for the audio seminar. The seminar will focus on practical guidance for contractors and all in the contracting community to deal with this unprecedented event.
In addition, Centre has launched a free website with shutdown information, located at www.govshutdown.com. We will be updating this website throughout the week and next week with the latest news and guidance as it becomes available.
Also, as a free service to the contractor community (inside and outside of the Government), Centre is also offering a White Paper which contains background information, the legal guidance to follow in the event of a shutdown and practical information for contractors. To obtain the free White Paper, please contact Eric Crusius, Esq. by e-mail (ecrusius@centreconsult.com) or telephone (703-288-2800 x236).
If you have any specific questions about how the shutdown will affect your specific business or contracts, please call or e-mail Eric Crusius using the above information.
Senator: “We’re probably looking at a shutdown”
March 30, 2011
As the days pass without a budget deal and with the House Republicans unwilling to pass a continuing resolution, a Government Shutdown is becoming increasingly likely. According to Politico.com, Senator Mark Pryor declared that “[w]e are probably looking at a shutdown.” Senator Barbara Mikulski was equally pessimistic, stating that “[r]ight now, they look a bit dismal,” when asked about the chance of funding the Government past April 8th without interruption. The entire story is here: http://www.politico.com/news/stories/0311/52184.html
In light of this news out of Capitol Hill and requests from the contracting community, Centre will be hosting another audio seminar next Wednesday (April 6) regarding the implications and consequences of a Government Shutdown for the contracting community. Details about the seminar will be posted here later today.
Government Shutdown Could Trigger Recession
March 30, 2011
An article in the Huffington Post today details how a prolonged Government Shutdown could trigger a recession. The story is here: http://www.huffingtonpost.com/2011/03/29/government-shutdown-economy_n_842262.html. Interestingly, the story states that the Governments shutdown plans are still “classified.”
Hoyer: Odds of government shutdown have increased over past two weeks
March 29, 2011
We are just 10 days away from the Government running out of funding and all sides are still wrangling over proposed budget cuts. This story in the Washington Post (http://www.washingtonpost.com/blogs/2chambers/post/hoyer-odds-of-government-shutdown-have-increased-over-past-two-weeks/2011/03/29/AFLNnSuB_blog.html) details Hoyer’s belief that we are closer to a government shutdown now than a few weeks ago. On one side, you have the GOP House leadership being pulled to the right by the Tea Party and on the other side, you have the President and Congressional Democrats not always acting in unison.
In light of these developments, Centre is planning another audio seminar for next week. Stay tuned for details.
Contractors' Frustration Growing With Lack of Information
March 21, 2011
A new article in the Federal Times points out the growing frustration with the lack of information from the Government for contractors in the event of a shutdown.
More information is here: http://www.federaltimes.com/article/20110321/AGENCY01/103210306/1009/ACQUISITION
GOP Budget Committee Chairman: A Shutdown Wouldn’t Be That Bad
March 17, 2011
At an event sponsored by Politico, GOP Congressman Paul Ryan (R-Wis.) stated that a Shutdown “sounds worse than it probably is” while noting that “essential” services would continue. The Huffington Post added, “Although both parties have said they want to avoid a shutdown, House Republicans and Senate Democrats have thus far shown little willingness to compromise. Even after the Senate voted down a House bill that would defund politically vulnerable programs and cut more than $50 billion from the budget for the rest of the fiscal year, House Republicans have said they are committed to deep funding cuts and certain riders. If a final compromise strips riders to block funding for Planned Parenthood and health care reform, some members of the House GOP have vowed to vote against it -- even if that means putting the government on hiatus.” The full story is here: http://www.huffingtonpost.com/2011/03/17/paul-ryan-government-shutdown_n_837031.html.
Politico also reported from the event and concluded:
And the stakes are about to get even higher for the GOP with a looming debt ceiling vote. Failure to increase the nation’s debt limit would lead the government to default on its loans in a scenario Federal Reserve Chairman Ben Bernanke has repeatedly called “catastrophic.” But despite doomsday warnings from administration officials, conservative Republicans and freshmen in both chambers who ran on anti-government spending platforms have indicated they won’t support such an increase, especially if it’s not paired with deficit-reduction measures.
Politico’s story is here: http://www.politico.com/news/stories/0311/51480.html
In its audio seminar, Centre noted the potential consequences of not raising the debt ceiling on Government contractors. Centre will continue to monitor the situation and update govshutdown.com as events warrant.
The Latest News: Good and Bad
March 16, 2011
It appears both houses of Congress will pass a continuing resolution funding the Government through April 8, 2011. That’s the good news.
The bad news is that House Republicans have publicly stated that they will not agree to another continuing resolution and are seeking substantial cuts before agreeing to a budget. That means if Democrats and the President do not agree to cuts, a shutdown could become inevitable.
In addition, as described in our White Paper, the Government will soon hit its debt ceiling. This in itself could cause the Government to default on its obligations and/or cause the Government to shut down. The latest guidance has this occurring sometime in April or May – though no one knows for sure. Twenty-two GOP senators have already come out to declare that they will vote against raising the debt ceiling unless the Democrats engage in serious entitlement reform. More information is here: http://www.politico.com/news/stories/0311/51421.html.
We’ll continue to monitor this developing situation.
Former RNC Chair Michael Steele: “Nothing Wrong with a Government Shutdown”
March 8, 2011
According to ABC News, recently ousted RNC Chair Michael Steele told ABC’s Top Line that there is nothing wrong with a government shutdown. Steele went on to say: “I've been an advocate for it over six, seven months now for the simple reason it is the shocker. It is the reality check that the spenders need to have, that those who are trying to chart a different course need to have, whether they are Republicans or Democrats in the Congress.”
A link to the full story and interview is here: http://blogs.abcnews.com/thenote/2011/03/michael-steele-nothing-wrong-with-a-government-shutdown.html
Shutdown Date Approaching With No Agreement in Sight
March 7, 2011
The CR will expire in less than two weeks and there is little evidence of compromise form either side in the budget debate. The Senate Democrats and House Republicans have not moved off of their positions with Senate Minority Leader McConnell complaining that President Obama is not serious about tacking entitlement reform. We’ll monitor the situation and see if things change as March 18th approaches.
Sides Far Apart on Budget
March 4, 2011
The news out of Congress today is not good. The House Republicans appear set to vote on a measure next week that will slash more than $60 billion from this year’s budget. However, in the Senate, the Democrats expect to vote on a budget bill in the coming days calling for only $6 billion dollars in cuts – a tenfold difference. With the sides this far apart, Centre will monitor events to see if the gulf between the parties narrows in the coming week. Right now, it appears both sides are entrenched and there is just a week left before there will be an appropriations lapse and a Government shutdown without further action.
More on this can be found here: http://www.reuters.com/article/2011/03/04/us-usa-congress-spending-idUSTRE7205MS20110304?feedType=RSS&feedName=topNews
Two More Weeks
March 2, 2011
As expected, Congress passed a CR giving until March 18, 2011 for all sides to agree on a budget. Because the Republican-controlled House of Representatives seems unwilling to go beyond that date, it looks like there will be a new budget or a shutdown then. Many in Congress are already fretting about this daunting task saying that coming together on a budget by that date will not be possible. We also note that even with the passage of the CR, there is still a wide gulf separating the Republicans and Democrats. Stay tuned!
Congress Denies Bid to Extend CR
March 1, 2011
Congressional leaders have rejected a bid by the President to extend the CR for a month instead of two weeks. While a vote is expected today in the House to extend funding through March 18, 2011, there is no word when or if the Senate may take up the issue. Also, the rejection of the President’s call for a month-long CR signals that the myriad of complicated issues that go into a contentious budget process must be condensed into a two week period to avoid a shutdown.
For more information, see: http://www.politico.com/news/stories/0211/50384.html
To Complicate Matters Further
February 28, 2011
GovExec.com posted an interested article (http://www.govexec.com/dailyfed/0211/022511rb1.htm) about another wrinkle – agencies funded by user fees such as the Federal Financing Housing Authority. These agencies would – for the most part – be immune from a government shutdown because they do not rely on annual appropriations. Like every rule, there is an exception. As the article points out, even though the Export-Import Bank is self-financed, it relies on Congress for authority to spend its own money.
Coming Soon to an Inbox Near You
February 28, 2011
Centre is in the process of revising its White Paper. If you already received a White Paper, we will endeavor to send you a new one automatically.
Kicking the Can Down the Street
February 27, 2011
The good news is that there is talk about a possible compromise to keep the Government open for two more weeks (http://content.usatoday.com/communities/theoval/post/2011/02/obama-republicans-democrats-may-avoid-government-shutdown/1). The bad news is that this compromise would not solve any of the underlying differences between the Democrats and Republicans – which essentially must be solved in the next two weeks. While Centre is obviously hoping a shutdown will be avoided entirely, it is important for contractors to be prepared while the threat of a shutdown looms.
Gingrich: 1995-1996 Shutdown Was Not a Disaster
February 27, 2011
Newt Gingrich, the Speaker of the House during the 1995-1996 Shutdown, argues in the Washington Post today (http://www.washingtonpost.com/wp-dyn/content/article/2011/02/25/AR2011022506633.html) that the 1995-1996 Shutdown resulted in a net benefit for the United States. In all, Gingrich states that the shutdown enabled Congress to cut entitlement funding by numbers not seen in decades. Finally, Gingrich states that while a shutdown is not ideal, it would be far worse than for Republicans to bend on their principles. We’ll see if the Republicans in Congress are listening.
Audio Seminar Update
February 25, 2011
As you may know, Centre will be holding a special audio seminar on Tuesday, March 1, 2011 from 12:00 p.m. to 1:30 p.m. ET regarding the possible government shutdown. While the cost is $35, it is free to current clients. The seminar will likely feature Barbara Kinosky, Esq. (Partner), Eric Crusius, Esq. (Senior Attorney), and Nadine A. Massih, CPA (Managing Director, Government Consulting). Steve Greenberg, who has decades of experience in government contracting will be moderating the seminar.
To register, contact Nicole Snyder at (703) 288-2800 x233 or nsnyder@centreconsult.com.
White Paper Update
February 25, 2011
We will be releasing an updated version of our White Paper over the weekend based on additional research and guidance. While this is not a major update, it will provide additional information to contractors. Anyone who would like an updated version of the White Paper, please e-mail Eric Crusius, Esq. at ECrusius@centreconsult.com. Because this is a fluid situation, we expect further updates to the White Paper as events warrant.
Further Reading Regarding Possible Shutdown
February 25, 2011
We recommend you monitor The Washington Post’s “Federal Eye” blog for the latest information. That blog is located here: http://blog.washingtonpost.com/federal-eye/
An informative article about the pain contractors would bear in the event of a shutdown is here: http://www.govexec.com/dailyfed/0211/022311rb1.htm
Government Shutdown Documents
February 25, 2011
Centre has been gathering all important and relevant documents to provide guidance to its clients. You can download the documents by clicking the link. As new documents are found/become available, we will post them.
1995 Dellinger Memorandum
1981 Civiletti Memorandum
Congressional Research Service Memorandum: http://www.fas.org/sgp/crs/misc/RL34680.pdf
Centre to Hold Audio Seminar Regarding Looming Government Shutdown
February 24, 2011
Centre Law Group has announced an emergency audio seminar regarding the looming Government Shutdown. It is free for clients and only $35 for non-clients. To register, contact Nicole Snyder at (703) 288-2800 x233 or nsnyder@centreconsult.com.
MSNBC.com Reports on the costs of a government shutdown.
February 24, 2011
On MSNBC.com’s “First Read,” Carrie Dann highlighted the costs of “keeping the government’s lights off.” It is an interesting read and can be found here: http://firstread.msnbc.msn.com/_news/2011/02/24/6124161-the-cost-of-keeping-the-governments-lights-off-
Our first bit of general advice is to take inventory of your contracts and contact your contracting officer to see if he or she has any guidance as to next steps. It is also important to document everything you do, mitigate any expenses, and not do anything that runs afoul of the FAR.
If there is a shutdown, contracting professionals and their governmental counterparts will be in unchartered waters. It is imperative to be as prepared as possible, take all precautions, and plan for all contingencies. If you are interested in attending the audio seminar, please contact Nicole Snyder nsnyder@centreconsult.com or (703) 288-2800 (there is a $35 registration fee, but is free for our existing clients). The first hour will be devoted to the presentation and the last thirty minutes or so will be for questions.
If you would like a copy of the White Paper, contact me by e-mail at ecrusius@centreconsult.com or by telephone at (703) 288-2800 and I will forward our White Paper to you.
Centre to Make White Paper Available Regarding Government Shutdown
February 23, 2011
Centre has been monitoring the political situation and its implications for contractors since the November elections. As the threat of a government shutdown becomes more real, Centre has been gathering information for its clients. To that end, it will be making a White Paper available tomorrow. Information about it will be posted on this page and over at centreknowledge.com.
