Once again, the specter of a government shutdown looms over the federal contracting community. The House just passed a continuing resolution that would extend federal funding through February 18, 2022, and avoid a government shutdown on December 3, 2021. However, it is unclear whether it will be passed by the Senate due to objections over federal vaccine and testing mandate funding. As a result, there is a possibility that the continuing resolution will not pass the Senate by the December 3^rd deadline, which would lead to a government shutdown. Below are key steps your business should take to mitigate the possible negative impact of a government shutdown, along with shutdown-related labor and employment considerations for government contractors.

Mitigating Damages

1. Understand the likely consequences of a shutdown.
   You should anticipate the following consequences of a shutdown for federal government facilities.
   • Government facilities will be closed.
   • No new contracts or modifications will be issued, and there will be delays in the acquisition process for procurements.
   • Non-essential government employees will be furloughed and unavailable.
   • Invoices will not be paid during a shutdown and may be delayed after a shutdown is over.
   • Statutory deadlines for filing claims and bid protests will not be automatically extended.
2. Determine whether a shutdown is likely to impact your contracts.
   Certain contracts can continue even in the face of a government shutdown. For instance,...

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