LIVING THE VIDA LOCA UNDER A CONTINUING RESOLUTION

Federal contractors and their customers have to live with a Continuing Resolution until at least December 8th – and probably longer (see below).  This can slow down new business, but should not stop all forward activity.  Here are some tips on how to survive in this arena until Congress passes permanent appropriations bills.

1.  Look for other funding sources:  Yes, it’s true that CR-funded agencies can’t initiate new projects using appropriated dollars, but all government spending isn’t via appropriated money.  Look to see if other funding sources are available.

2. Make sure you understand what “new start” means.  Check with your customer to see how they define “new project start” vs. “work on an existing project”.  It may turn out that what you thought was new isn’t classified that way for the customer.

3. Make sure you’ve got a paper trail:  Government agencies still expect you to perform maintenance and similar services, even though they can’t issue or renew a year-long agreement for such.  Make sure you keep careful records on what you’re doing, for whom, when and how much.  Have the discussion with the customer to ensure you get paid for what you’re doing.

4. Pay attention to what Congress is doing with appropriations.  Take the time to understand the difference between “budget” and “appropriations”.  Even though the two terms are used to mean the same thing sometimes, they are technically different beasts.  You want to know when and if appropriations will run out, be renewed, or possibly be sequestered.  Even in a CR you can help shape some of your market.  Don’t sit back and let it shape you.