In 2013, the nation saw an event that no one could have imagined: sequestration government shutdown. The government shutdown led to a massive halt to our governmental infrastructure and a mass exit of employees. As a result, United States contractors suffered a great deal of damage and as we leave 2013 behind and progress forward, we must be reminded of three main points. These three main points are here to remind us the significant impact on how corporations support the United States Government into 2014 and beyond.
The installation of sequestration is, in theory, a great idea. It forces the House and Senate to end their quarrels and come to a resolution towards a balanced budget and allow the government to strive and support its citizens and public works; this setup was a “carrot-and-stick” scenario.
“If you create a budget, everyone agrees and when the President signs it, there is no penalty. If a budget isn’t created, a computer system will cut 10% off the top of the last budget signed and continue to cut a percentage off until a budget is in place.”
As we all know, theory does not always follow reality. As with small children, some decided to see if they could push the system into thinking that there was no real danger, as computer systems do, followed their programming.
This created the first real concern within United States contracting.
Check back next week on our blog to read more on contracting and the United States Government.