The government is currently funded through December 8^th, but the picture after that time is growing considerably cloudier.  There is a laundry list of either high-dollar, or high-contention, issues that must be ironed out for a permanent appropriations measure to be passed.  Storm relief, immigration, and health care are just three of the issues that seem likely to trigger substantial fights.  Add to that SASC Chairman John McCain’s comment that he will “go to the mat” to get the defense spending increases he wants, and contractors must take the threat of a shutdown as seriously as they did in 2013 when a shutdown last happened.  Sequestration, too, is also a larger possibility than in the last two years.  Deals would have to be cut to allow defense – and likely domestic – spending caps to rise, but defense hawks are unlikely to support non-defense increases, especially when billions of extra dollars have already been committed to hurricane relief. Contractors should start having the shut-down and sequestration discussions with their customers now.  Yes, it’s a distraction that slows down normal operations on both sides.  It is better to be prepared and have a clear understanding of what these potential occurrences mean to you now, though, then to have to run frantic in December trying to figure it out at the last minute.