Agency layoffs, shutdown create ‘perfect storm’ for contractors

Federal contractors are preparing for a particularly difficult government shutdown if Congress doesn’t pass a funding agreement, with agency staffing reductions compounding the usual strains during a lapse in appropriations.

If a shutdown were to happen Wednesday, the Professional Services Council is advising companies to continue working until they receive a stop work order from the government. PSC sent a letter to congressional leaders late last week, urging them to avoid a shutdown and warning about potential disruptions to government operations.

Stephanie Kostro, president of PSC, said the association provided an early September briefing to members that urged them to identify a point of contact within the government if a shutdown were to happen.

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