Bottom line, government contractors will not be affected in the case of a government shutdown. However, everyone is still curious to who will be affected. The answer is non-essential government employees. Some government contractors that work in government facilities that shutdown will be affected, otherwise the majority of contractors will continue their contracts with the federal government unaffected. This will cause nonessential federal employees to cease work and be told to go home. The government will stop giving out loans, and stop passport creation.
Last night, the House of Representatives passed two spending bills that would amend Obamacare. The Senate is projected to reject the two amendments stating earlier that any amendment to Obamacare would be a deal breaker. This would cause Congress to slowly lay on the breaks due to a spending bill not being approved. Hence, the government shutdown. The part of this whole congressional mess is that Obamacare isn’t even directly tied to spending. It is being used as a bargaining chip by republicans in the House in an effort to remove the newly created health care law.
Small businesses make up 80% of the overall work force in America. The government is not going to stop contracting officers hiring small businesses for contracts and awards. If anything, the government is going to continue to encourage small business involvement. With the end of the fiscal year approaching contracting officers have to spending their contracting dollars, otherwise they will have a lower spending limit the following. If they don’t use it, they literally lose it. That is why it is important small businesses register in System for Award Management (SAM) now more than ever in order to be eligible for government contracts and federal set-asides.