Professional Services Council Advises Contractors Amid Government Shutdown

What's Happening?

The ongoing government shutdown has led to stop-work orders for federal contractors, impacting their operations significantly. Stephanie Kostro, president of the Professional Services Council (PSC), has outlined key strategies for contractors to navigate this challenging period. These strategies include maintaining communication with lenders and financial institutions to manage cash flow during the invoice payment freeze. Contractors are also advised to identify government contacts who can provide updates on deliverables, despite the difficulty in communication due to the shutdown. The PSC is actively guiding its member companies to prepare for the eventual reopening of government operations.

Why It's Important?

The government shutdown poses a substantial risk to federal contractors, affecting their financial stability and operational continuity. The PSC's guidance is crucial in helping these companies mitigate the adverse effects of the shutdown. By maintaining communication with financial institutions, contractors can better manage their cash flow and avoid severe financial disruptions. Additionally, staying informed about government deliverables ensures that contractors are prepared to resume work promptly once the shutdown ends. This proactive approach is vital for minimizing the economic impact on the contracting industry and ensuring a smoother transition back to normal operations.

What's Next?

As the shutdown continues, contractors are expected to follow the PSC's recommendations closely to safeguard their operations. The focus will be on maintaining financial stability and preparing for the resumption of government activities. Contractors may need to explore alternative funding options or temporary measures to sustain their business during this period. The PSC will likely continue to provide updates and support to its members, ensuring they are equipped to handle the challenges posed by the shutdown. The eventual reopening of government operations will require contractors to quickly adapt and resume their projects, emphasizing the importance of readiness and strategic planning.