DEBT CEILING ROULETTE & ITS IMPACT ON CONTRACTORS

Although the government is technically funded until December 11th, spending could slow after November 3rd if Congress cannot pass a measure to increase the country’s debt ceiling. The chaos inaction or a “no” vote would cause would certainly transcend government procurement and take personnel resources away from the award and management of contracts.  Since Congress has never before failed to increase the debt ceiling, the precise impact on spending is unknown.  It gets more expensive, though, for the government to borrow money the closer it gets to November 3rd.  This, in turn, makes borrowing more expensive for contractors, increasing your cost of doing business.  Contractors and their federal customers would like to have a more stable market in which to conduct business.  Any debt ceiling move likely won’t come until the last minute, so buckle down and stay in communication with your federal customers.