News

UPDATED: AGC Federal Government Shutdown Resource Center

October 3, 2013
Information for Construction Contractors Operating Under the Federal Government Shutdown The fiscal year 2013 appropriations law expired October 1, 2013, the beginning of FY 2014.  The failure by lawmakers to reach an agreement on funding for the new fiscal year resulted in a federal government shutdown.  The 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 could be impacted by and  what they can do during 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 To view the Corps guidance, click here. Bureau of Overseas Building Operations (Department of State) While OBO did not issue informative, agency-specific guidance in 2013, its umbrella department—the Department of State—issued guidance. To view the 2013 Guidance, please click here. Bureau of Reclamation To view the BOR guidance, click here.  The Secretary of the Department of Interior also issued a message that can be found here. Department of Defense DOD has posted a website dedicated to government shutdown questions and concerns. To access the website, click here. Department of Labor DOL has posted a website dedicated to government shutdown questions and concerns. To access the website, click here. Department of Veterans Affairs To view the VA government shutdown guidance, click here. 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 USDOT shutdown guidance, click here. General Services Administration To view GSA shutdown guidance, click here. Natural Resources Conservation Service NRCS issued shutdown guidance in 2011. To view the 2011 NRCS guidance, click here. The NRCS webpage is currently unavailable due to the government shutdown 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.) For more information on E-Verify, please click here. 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 To view OPM’s federal workforce guidance, click here. For more information, please contact Jimmy Christianson at (703) 837-5325 or christiansonj@agc.org 
Go to top