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AGC Federal Government Shutdown Resource Center

What You Need to Know Now: Preparing for a Possible Government Shutdown The fiscal year 2013 appropriations law currently funding government operations, including many federal contracts, will expire on October 1, 2013, the beginning of FY 2014.  A failure by lawmakers to reach an agreement on funding for the new fiscal year will result in a federal government shutdown.  The possibility of a shutdown has left contractors wondering how or even if they can continue to perform their federal contracts.  Construction contracts awarded on a fixed-price basis will be substantially unaffected by the shutdown.  However, for most cost-type contracts, time and materials contracts, IDIQ/MATOC/MACC contracts, and those contracts that have yet to be awarded, the shutdown will likely suspend operations completely.  Therefore, it is important for contractors to prepare for the consequences of a government shutdown. For more details on how contractors can prepare for a government shutdown, please click here. In addition, former AGC FAR Committee Chairman Dirk Haire has written a matrix and model letters for contractors to utilize to help answer questions on what to do in the instance of a government shutdown.
To view the matrix and sample letters, click here. AGC has also prepared information from the following federal agencies on their contingency plans—either from 2011when government shutdown was last threatened or new 2013 guidance—should the government shut down at midnight October 1. The 2011 documents are merely informative, but not authoritative, for how federal agencies will handle a 2013 government shutdown. Army Corps of Engineers The Army Corps of Engineers issued guidance to its entire workforce on the potential government shutdown in 2011.  To view that 2011 guidance, please click here. For contracting specific information, see the Department of Defense 2011 guidance below. If and when 2013 USACE guidance is released, the document will be posted on this resource center. Bureau of Overseas Building Operations (Department of State) While OBO did not issue informative, agency-specific guidance in 2011, its umbrella department—the Department of State—issued guidance. To view the 2011 DOS guidance, please click here. If and when 2013 guidance is released, the document will be posted on this resource center. If and when 2013 DOS guidance is released, the document will be posted on this resource center. Bureau of Reclamation The BOR issued the following documents in relation to the 2011 government shutdown threat: If and when 2013 BOR guidance is released, the document will be posted on this resource center. Department of Defense In 2011, Deputy Secretary of Defense William J. Lynn III issued guidance to its entire workforce on the potential government shutdown. The full guidance is below, but the relevant section to DoD contractors is below: “Generally, contractors performing work on contracts funded prior to a shutdown, whether supporting excepted activities or not, may continue working and will be paid out of the obligated funds, subject to further direction from the contracting officer. New contracts, or increases in funding of existing contracts, needed to support excepted activities may be entered into during the period of a shutdown, but payments under such contracts cannot be made until Congress provides additional funding. Contract personnel should also report to work on Monday, April 11, to be briefed on their status.” To view the 2011 DoD guidance documents, click here and click here. Deputy DoD Secretary Carter recently released this memo to Pentagon employees. Department of Labor DOL issued guidance in 2011. To view the 2011 VA guidance, click here. If and when 2013 DOL guidance is released, the document will be posted on this resource center. Department of Veterans Affairs The VA issued guidance in 2011. To view the 2011 VA guidance, click here. If and when 2013 VA guidance is released, the document will be posted on this resource center. Federal Highway Administration The federal-aid highway program will not be immediately impacted by a shutdown. Because Congress has enacted authorization for Highway Trust Fund spending through the end of FY 2014 and there remains a balance in the trust fund, the Federal Highway Administration will remain open for business and will continue to process state DOT requests for reimbursement for on-going highway projects. States will also be able to continue to enter into contracts with the assurance of federal reimbursement. To view the 2011 DOT guidance, click here. General Services Administration GSA issued the 2011 GSA Plans for Shutdown and  2011 GSA Operations in Absence of Appropriations. If and when 2013 GSA guidance is released, the document will be posted on this resource center. National Resources Conservation Service NRCS issued guidance in 2011. To view the 2011 NRCS guidance, click here. If and when 2013 NRCS guidance is released, the document will be posted on this resource center. Naval Facilities Engineering Command The Navy continually updates a webpage with furlough and budget information. To access that website, click here. E-Verify Program The E-Verify program, which is run by U.S. Citizenship and Immigration Services (USCIS), is not expected to be operational if there is a government shutdown. The E-Verify public website and the logon page to the E-Verify system is expected to include guidance for employers. The governing MOU for employers states “If the automated system to be queried is temporarily unavailable, the 3-day time period is extended until it is again operational in order to accommodate the Employer’s attempting, in good faith, to make inquiries during the period of unavailability.” (See Article II C (II) of the MOU) The governing 1996 statute which created E-Verify specifically addresses extensions of the time periods if the employer tries to submit inquiries in good faith but the system cannot receive such inquiries, thus we believe there will be impetus to provide official guidance from USCIS about all deadlines associated with E-Verify queries, should the system not be operational. (See Sec. 403(a)(3)(B) of IIRIRA of 1996.) Office of Management and Budget Office of Management and Budget Director Sylvia Burwell issued a September 17, 2013, memo to agency officials instructing them on how to approach the potential government shutdown. To view the 2013 OMB memo, which includes frequently asked questions on contracting, grant administration and payment processing during a lapse appropriation, click here. Office of Personnel Management OPM issued the following report in 2011: Potential Impact of a Lapse in Appropriations on Federal Employees by the Office of Personnel Management: To view full report and regularly updated budget-related website, click here. For more information, please contact Jimmy Christianson at (703) 837-5325 or christiansonj@agc.org.