While there is still time for Congress and the President to reach an agreement on increasing the federal debt ceiling, time is running out with only about two months to go before the anticipated default date.  Federal contractors should understand, though, that the lack of a deal will trigger automatic executive branch actions much sooner than that, potentially disrupting business in the very near future.  Federal offices are required to take certain continuity of operations actions in anticipation of partial, or total, agency shut-downs.  These actions don’t happen overnight.  Preparations typically involve a series of meetings and logistical steps that involve both mid-level and senior officials, the types of people with whom contractors typically interact.  Congress is now out of session for the Passover/Easter break and won’t return until mid-April.  There will be no meaningful action on any debt ceiling deal until that time.  Media outlets also recently reported  that, despite high-level agreements to work together on a resolution, there have been no senior level discussions between Congressional and Executive Branch leaders since late March.  The recent banking crisis just adds to the political circus surrounding this issue, making it clear that the seamless performance of government operations is not a primary focus right now.  Each side wants to serve its core political constituencies.  The resulting impact on third, and potentially fourth, quarter business could be very real, especially if no deal is reached and defaults begin to happen.  Even if a last-minute deal is worked out, sometime in mid-June, it will take some time before “business as usual” returns to the procurement front.  Contractors may want to work now with their federal customers to see if acquisition plans can be accelerated to get as much in place now as possible.  Make sure that your company is prepared for the bumpy road ahead.