Contractors, along with others concerned about a federal debt ceiling deal, should be prepared for difficult, perhaps protracted, negotiations among House, Senate and administration officials now that the House of Representatives has passed a debt ceiling package. By a razor thin vote of 217-215 that chamber pushed through a bill that would trim $4.8 trillion in government spending over 10 years.  While this position has no chance of being implemented, the fact that House Speaker Kevin McCarthy (R-CA) was able to get a measure passed provides him with critical leverage to negotiate spending reductions, albeit with a Senate and administration that have each said that they want a “clean” debt ceiling bill.  President Biden has gone so far as to say that he will meet with Speaker McCarthy only if a debt ceiling default is off the table.  Each side remains far apart as the date ticks closer for an actual default.  The chances of such an action have likely increased with the House vote.  Hard-line members, some of whom voted against the current package because the cuts weren’t deep enough, give McCarthy little room to negotiate and still be able to get a compromise measure passed.  He would absolutely need to have Democratic support, something that may not come if Democrats sense that it would merely bail McCarthy out.  This all creates very muddy waters for government contractors.  Companies may soon see actions on non-critical acquisitions slow in anticipation of a potential partial government shutdown.  A shutdown would, of course, substantially disrupt the business of government, even payments on already completed projects.  Further, any resolution won’t come until the last possible minute, maximizing uncertainty.  The best bet for contractors right now is to be in communication with their current and prospective government clients to ensure that there are plans in place to handle as many eventualities as possible.  Stayed tuned.