CONGRESS’ FAILURE TO ACT ON SPENDING CAUSES DISTRACTION IN LAST WEEK OF FY
Congress left town last week without agreeing to a Continuing Resolution to fund the government beyond midnight Friday. The last minute nature of the talks raises the possibility of a 3-4 day CR while final specifics are hammered out. While this does keep the government open, it creates needless tension for contractors and their customers. Agencies must, for example, draw up contingency plans in the event that no CR is passed and agencies have to shut down. There is no serious talk of this, but federal law requires such preparation. This takes time away from business that could be conducted during the last week of the fiscal year, particularly if senior level input is required for any deal. Zika funding, an item of interest to many contractors, will reportedly be part of any final measure, though flood relief and safe water issues are still up in the air. A CR funding the government until midnight December 9th is likely. It’s just a question of when it will happen.