Overview

• The funding lapse took effect Oct. 1 at 12:01 a.m., creating uncertainty over ongoing work and payments for federal contractors.
• Contractors are urged to obtain written direction from contracting officers to confirm whether to continue or stop work and to avoid performing at risk.
• Firms should review agency shutdown plans and contract clauses to gauge status and prepare for delays tied to furloughed personnel or restricted facility access.
• Detailed, contemporaneous records of disruptions and extra costs are critical to support requests for equitable adjustments, time extensions, or later claims.
• Companies should reassess workforce and subcontractor arrangements and line up short-term financing to bridge delayed invoices and supply-chain ripple effects.