What's Happening?
The ongoing government shutdown has led to stop-work orders for federal contractors, but companies are advised to prepare for the eventual reopening. Stephanie Kostro, president of the Professional Services Council, provides guidance on what typically happens after contractors receive stop-work orders. The trade association recommends ongoing conversations with lenders and financial institutions to manage cash flow during the invoice payments freeze. Finding government contacts for deliverables is becoming more difficult, but companies are encouraged to maintain communication and prepare for the shutdown's end.
Why It's Important?
The government shutdown poses significant challenges for federal contractors, impacting cash flow and business operations. Companies must navigate these challenges to minimize disruptions and prepare for the resumption of work. The guidance provided by the Professional Services Council is crucial for contractors to manage financial risks and maintain business continuity. The shutdown's impact extends beyond contractors, affecting government services and employees, highlighting the need for effective strategies to mitigate its effects.
What's Next?
As the shutdown continues, federal contractors are advised to stay informed and proactive in managing their operations. The Professional Services Council emphasizes the importance of maintaining communication with financial institutions and government contacts. Companies should prepare for the eventual reopening and resume work as soon as directives are issued. The shutdown's resolution will require coordination between government agencies and contractors to ensure a smooth transition back to normal operations.
