If the government does shut down on Dec 21, could this delay if not halt newly won government contracts with private contract holders?

2018-12-17T11:56:18-05:00

If the government does go into a shutdown mode on Dec 21, could this delay if not hault newly won government contracts with private contract holders? I ask as the federal PACIFIC USAF contract I have been selected to fill via Nobilis SRS is part of POTFF, a DoD program known better as preservation of the force and family. I assume funds for this are already granted and made available to them and no risk of funds being pulled via gov shut down apply here yes?

Response by MSgt Michael Smith made Dec 17 at 2018 1:03 PM

2018-12-17T13:03:06-05:00

Yes. Kinda sucks right? If the government shuts down, so does the money used to pay contracts and contractors. So all contractors and contracts that are paid on a per-hour, or per-day basis and non-essential will be furloughed. Those are the real ones that suffer most. As a Federal Employee, I get back pay during a shutdown, Contractors don't.

Response by SGT Joseph Gunderson made Dec 17 at 2018 1:28 PM

2018-12-17T13:28:46-05:00

It is possible. That being said, if the money that was paying for these contracts has already been set aside out of a previous budget it should not affect it at all. The government shut down affects future expenditures. For example, if the previous budget was used to pay for a contract it will continue as planned. If a contract was agreed on but it was set to begin from a new budget (e.g. the budget that is being delayed) it will not be paid for just yet.

Response by SFC Private RallyPoint Member made Dec 17 at 2018 1:53 PM

2018-12-17T13:53:06-05:00

It was explained to me that contractors continue to get paid because you are working for a private entity, not the DOD. The business who took the contract has already been paid, or funds allocated, and so they pay the individual worker. However, it will affect future contracts.

Response by CAPT Kevin B. made Dec 17 at 2018 7:22 PM

2018-12-17T19:22:13-05:00

I was in contracting for some time. When we were "shut down", invoices still got processed, work was still being administered, etc. The reason is MONEY. Contractors perform many services and projects. Most of those services are needed every day. So they work; and then they BILL. There's this thing called the Prompt Pay Act which means when the Government receives a valid certified invoice, we have 30 days to pay or start paying interest. In the contracting world, a big dinger is having to shell out interest. It's big because it's easy to spot so that's what inspectors do. So it boils down as to who are the "essential" personnel. Keeping contracts going is typically "essential". We will frequently see new awards or task orders delayed unless there's a J&A (Justification/Authorization), hence essential. Those have to do with continuity of service most often and others like "if we don't award now, we'll blow another construction season."

I don't know enough about your contract, funding, etc. but suspect an initial award delay is probable if it doesn't involve National Security. The Contracting Officer typically requests the winning bidder to extend the shelf life of the bid (say 30 days). That can keep folk hanging but that's what happens when politics (aka irrational stuff that has no bearing on the need) intervenes.

Response by Joshua Hockett made Dec 17 at 2018 9:42 PM

2018-12-17T21:42:43-05:00

Upon further review I think I am in the clear as far as funding goes. The funds used to make this position available came from USSOCOM under the POTFF and awarded to Nobilis SRS in June this summer. That being said it is from previously budgeted funds and 'should' cover the 5 year term of this contract position. My concern now however is whether or not a shutdown would delay my mission visa approval time. It is routed through Germany, then Rome, then US Italian consulate where I then go to pick it up after making an appointment to go in and collect it. Being those are all outside the US Government I think I'll be in the clear.

Response by SGT David T. made Dec 18 at 2018 9:42 AM

2018-12-18T09:42:33-05:00

Funds are obligated at time of award so they cannot be pulled for any reason other than a termination or reduction of scope. If it is incrementally funded, then there maybe some impacts since a funding mod couldn't be executed (unless using no year money). Very few contracts are funded like that so I don't think you have anything to worry about.