CONGRESS HAS PASSED ANOTHER CR: WHAT THAT MEANS FOR CONTRACTORS

Congress pushed final action on FY’24 appropriations out for at least another six weeks last week, keeping the government open, but effectively cutting the fiscal year by nearly half.  The new measure retains the two-tiered approach in the previous CR, meaning that the VA, HUD, and Treasury are among the agencies that face a new March 1st funding deadline, while March 8th is the date for DOD, DHS and most of the rest of the government   The best-case scenario now is that individual offices will have their spending budgets in mid-April, creating an extremely tight timeframe in which to conduct business.  The best-case scenario isn’t a done deal, either.  Rep. Tom Cole (R-OK), a House Appropriations Subcommittee Chair, has previously stated that he still wasn’t sure if there was enough time to pass 12 separate bills before the March deadlines.  This could indicate a concern that some agencies, likely civilian, may see a full-year CR.  House leaders have also previously said that they would like to pass each bill on its own, steering away from the recent practice of passing one, omnibus (some do say “ominous”) spending package.  This could also create a timing issue.  Contractors should by no means, though, hit the federal “pause” button.  Agencies will continue to move forward with projects in anticipation of funds.   Similarly, companies should be ready to go with proposals and RFP/Q response as soon as money becomes available.  Allen Federal predicts that there is a 70-75% chance that all appropriations measures will be enacted by midnight March 8th.  Stay tuned.