As the end of fiscal year 2023 approaches, the potential for a shutdown looms due to Congress not passing necessary spending bills. Our partners provide guidance for government contractors on mitigating economic risks in the event of a shutdown. Key steps include preparing and updating an inventory of open contracts and agreements, seeking specific instructions from the contracting officer in writing, and setting up new cost pools to track costs related to the shutdown. Contractors are advised to keep accurate records of decisions, instructions, and costs incurred during the shutdown to maximize recovery potential. Upon the end of the shutdown, contractors should assess and quantify increased costs and seek recovery where economically viable.
To learn more, read our latest client alert.