shutdown | The Contracting Education Academy

October 21, 2013 By AMK

After the shutdown, uncertainty still plagues Pentagon

Now that the shutdown has ended, it’s business as usual again in Washington. At the Pentagon, that’s the problem. In a word: uncertainty.

“I know there are no guarantees in life, but we can’t continue to do this to our people, having them live under this cloud of uncertainty,” said Defense Secretary Chuck Hagel.

Hagel said that the shutdown harmed everything for the Defense Department from training to the trust of key allies. But instead of waking up Thursday to a normal budget cycle, Pentagon planners instead are right back to where they started before the shutdown — under the budgetary thumb of sequester and continuing resolutions that temporarily fund the government weeks or months at a time.

Hagel said he is now worried about the morale of the military and its civilian workforce.

“Morale is a huge part of this,” Hagel said. “We won’t be able to recruit good people. Good people will leave the government. They’re not going to put up with this. Good people have many options.” Hagel said he is now worried about the morale of the military and its civilian workforce.

Bob Hale, Pentagon comptroller, was blunter as usual.

Keep reading this article at: http://www.defenseone.com/politics/2013/10/after-shutdown-uncertainty-still-plagues-pentagon/72158.

October 16, 2013 By AMK

Shutdown could crimp Pentagon training and confuse contractors

Despite the Defense Department’s recall of half of its furloughed civilians, the government shutdown could create uncertainty in the military’s training programs and delay contractor payments in ways that affect the national security supply chain, according to a report released Monday by the Congressional Research Service.

Made public by the nonprofit Center for Effective Government, the report reviews the Pay Our Military Pay Act that Congress passed last week, giving Defense Secretary Chuck Hagel authority to recall most of the civilian employees who previously had been denied “excepted” status, because their “responsibilities contribute to the morale, well-being, capabilities and readiness of service members.”

Keep reading this article at: http://www.defenseone.com/management/2013/10/shutdown-could-crimp-pentagon-training-and-confuse-contractors/71612

October 15, 2013 By AMK

DoD issues class deviation to deal with contracts made in advance of appropriated funds

On Oct. 9, 2013 the Department of Defense issued a class deviation providing instruction to contracting officers who are being pressed to obtain supplies and services necessary to carry out and support the mission of the Department. This special direction is necessary since DoD, due the Government shutdown and budget uncertainty, does not have access to FY14 funding. FY14 began Oct. 1, 2013.

Entitled “Contract Obligations in Advance of Fiscal Year (FY) 2014 Funding,” the class deviation directs contracting officers to include a special clause in contracts and contract modifications. The clause is also is to be included in task and delivery orders, and when exercising options. The clause reads as follows:

The deviation does not apply to: 1) actions using existing appropriations that are currently available for obligation and liquidation of obligations, such as prior year funds, or 2) actions under the Pay Our Military Act.

A link to the full class deviation, along with accompanying memoranda, can be downloaded here: DoD Class Deviation 2014-O0001.

October 14, 2013 By AMK

Under shutdown, a complicated picture emerges for contractor employees

With the start of the government’s first shutdown since 1996, every federal employee who’s not granted a specific exception is being placed on unpaid furlough starting today, for a total of about one million workers. But the picture’s a lot murkier for federal contract employees. Most of them will continue to do work for agencies during a shutdown, even if it’s not clear when their companies will be paid nor when the government employees with whom they share office space will return to work.

Trade associations who represent government contracting companies have been telling their members for the past several days that they need to stay in close contact with government contracting officers and project managers on each of the programs they’re involved in to determine whether work will go on during a shutdown, since the impact will vary dramatically case-by-case.

In the case of contract employees, the question is not so much about whether they’re essential to the protection of life and property — the biggest criteria used for most federal employees in furlough decisions — but rather, how and when the money that funds their contracts was obligated by the government. Since the shutdown is hitting at the beginning of a new fiscal year, it’s reasonable to expect that many, if not most, contract employees will actually continue working during a shutdown, depending on how long it lasts.

Keep reading this article at: http://www.federalnewsradio.com/index.php?nid=851&sid=3469048

October 10, 2013 By AMK

Defense execs predict production halts If shutdown stretches to mid-month

The federal government shutdown won’t hurt much this week but after two to three weeks, contracts won’t get paid or issued, testing won’t get done. and production of major weapons systems may be disrupted or halted.

That was the consensus of several senior defense executives, including Exelis CEO David Melcher, at a gathering held here today by the Atlantic Council.

If contracts are not paid, then companies’ cash flow will be hurt, Melcher said during his presentation. ”I’m just not a big fan of the brinkmanship being practiced here,” he said when I asked him just what worried him about the next few weeks, especially since the federal debt ceiling must be lifted in the next two weeks to maintain America’s good faith and credit rating.

And then, of course, there’s the whole optics thing — like those World War II veterans shoving metal barriers aside to get to the ugly memorial on the Washington Mall. If you want to know how much this worries Republicans, take note of the fact that Republican National Committee Chairman Reince Preibus has offered to pay to keep the memorial open for the next 30 days.

Keep reading this article at: http://breakingdefense.com/2013/10/02/defense-execs-predict-production-halts-if-fed-shutdown-stretches-to-mid-month

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