WHY STARTING THE YEAR UNDER A CONTINUING RESOLUTION HURTS YOU & YOUR CUSTOMER
FY’16 is poised to once again start under a Continuing Resolution, a mechanism that keeps government agencies running, but isn’t the most efficient mechanism for planning. While contractors and their customers are used to the annual CR kick-off by now, what does it really mean for contractors? As suggested on fcw.com last week, there are several things. First, delayed procurements, especially new projects. Agencies can’t commit to anything other than keeping existing programs going under a CR. Also, there is a de facto hiring freeze, something that could impact contractors that do a lot of business offering on-site personnel to support government missions. Uncertainty is another factor as your agency customer wrangles with OMB on budget apportionments. OMB has a lot to say on how much is spent – and where – during a CR period. Add to that poor customer morale and you start to get a clear picture that your federal business suffers as long as agencies operate under a CR. It’s too early to tell how long a CR will last this year, or even if a government shut-down will be averted. As things look right now, don’t expect much before Christmas. Stay tuned.