Federal government shutdowns, the result of funding gaps that occur when Congress can’t agree on a spending bill, are a relatively recent phenomenon. Since the first shutdown in 1981, there have been 10 more, with the longest lasting 35 days, from December 18, 2018, to January 25, 2019. On average, shutdowns now occur about every four years and last nearly nine days.

Government shutdowns bring a cascade of economic consequences, including delayed paychecks, pauses in vital services, and disastrous effects for government contractors who may have to reduce staff. There are also broader economic impacts, with shutdowns reducing the GDP by 0.2% on average. For example, the 2018–2019 government shutdown caused a loss of $11 billion in economic output. While $8 billion was eventually recovered, $3 billion was permanently lost.

Planning Ahead To Avoid Shutdown Impacts

The reality is that shutdowns are now an unpleasant feature of government work. Given their ongoing possibility, federal agencies should anticipate and prepare for them, taking steps to keep critical projects moving forward. Among many responsibilities, contract officers should remember that government shutdowns deeply affect their contractors, who have dedicated resources and employees to agency projects. In this e-book, we’ll share five ways that agencies can help mitigate the negative effects of a government shutdown on their contractors—and their projects.

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