WILL TALK OF GOVERNMENT SHUT-DOWN BECOME A SELF-FULFILLING PROPHECY?

Tax reform  efforts continue, but seem to have driven a wedge between the House and Senate.  Democrats insist on “Dreamer” legislation before year-end, potentially holding up agreement on any long-term spending measures.  The Trump Administration, some say, is difficult to read as its positions change.  These realities, coupled with the December 8th end of the existing Continuing Resolution, have people talking more about a possible December shut-down.  While there’s still lots of time for a deal on appropriations to be struck, partisan wrangling on other issues like immigration and tax cuts could, indeed, create a divide that makes it impossible to get a spending bill passed.  The best outlook right now is for another short-term CR that would take the government into the calendar year.  Whether this will happen without the political showmanship of a shut-down, however, is hard to predict.  Sometimes legislators want the image more than the outcome.  The best thing for contractors to do is discuss possible shut-down scenarios with their government customers now.  Don’t be concerned about being the first to bring up the subject.  Every agency has already discussed this topic at some level and, with less than a month to go, must pay increasing attention to the “what if” scenario in order to be prepared.  You should be as well.  The best time to do that is now, when your clients and contract managers haven’t been sent home.  You may not need to act on whatever plan you devise, but at least you will have a plan if you need it.