THE GOVERNMENT IS OPEN, WHAT COMES NEXT?
While life under a Continuing Resolution is not ideal, both contractors and their federal customers are used to starting a new fiscal year this way. Most know whether there is any leeway in funding to start a new project, despite a lack of formal appropriations. Similarly, work will continue on projects already underway. The real question is “What comes next?”. That’s a tough question to answer right now as many variables exist. Here are three areas that may impact federal business for good or for ill. 1. The House Deposes Speaker McCarthy: No one word really sums up the move by House members to oust Speaker Kevin McCarthy. “Inane”, “Foolish”, “Self-defeating”, and “Unwise” are some that come close. For contractors and their customers hoping for sound Congressional leadership and quick approval of FY’24 appropriations, the action is a definite set-back, perhaps a substantial one. Instead of working on important legislation, which also includes passing the FY’24 NDAA, the House is now a circus. Only when the circus leaves town will contractors know when they and their customers may have money to spend on the actual business of government. 2. Plan for FY’24 Business, Especially Important IDIQ Contracts: Companies need to dial-down the Congressional side show and remember that several important contract programs are in cycle. Offers are due on GSA’s OASIS+ contract in a few weeks. The small business POLARIS program proceeds with periodic amendments. Coming soon will be the highly anticipated Alliant 3 program. Also, don’t look now, but NIH is gearing up to recompete the CIO CS IT commodity contract that currently expires in early 2025. These contracts, and the business both they and their current cousins bring, will be the focus of many contractors right now. There will, eventually, be money to spend and contractors need to be prepared for when business fully re-opens. 3. We Could Go Through All of This Again: The current CR runs through November 17th. There is no way Congress will be able to pass all 12 FY’24 spending bills by that time. It is similarly unclear, though, whether they will be able to muster enough votes to pass another CR. Contractors and their customers need to be prepared for a mid-November shutdown, one that could well last for 2-3 weeks given the time of year. Keep those files and procedures within reach in case they’re needed.