Several news sources are stating that a government shutdown would greatly effect government contractors and small businesses, but that proves to be incorrect with agencies still releasing contracts. FedBizOpps (FBO.gov,) the government’s massive database that displays all of the available contracts and opportunities out for bid is still showing activity. Even with the government shutdown taking effect earlier today, FedBizOpps still shows close to 200 government contracts released for bid just this morning. These awards are available to any and all businesses that are registered in System for Award Management (SAM) and meet the service requirements for the bid.
Even the DoD has announced that they will continue to award contracts throughout the progress of the shutdown. Lt. Cmdr. Nate Christensen, a spokesman for the Pentagon stated that the DoD will not publicly announce contracts during the shutdown, but they will continue to award qualified contractors. The DoD spends more contracting dollars then any other government agency. According to USASpending.gov, the DoD spent a whopping $361.6 billion in fiscal 2012. The agency that spent the second most in FY 2012 was the Department of Energy with $25.2 billion; $336.4 billion less than the DoD.
There is still speculation if the government shutdown lasts longer than two weeks, it could start to mildly effect government contractors. Is this true? The answer is yes and no. Yes, because according to Moody’s Analytics the furlough of 770,000 non-essential federal employees could reduce economic growth between 0.12% to 0.16% in our last fiscal quarter. The study also explains that this could effect contractors in construction for example due to the loss of government supervisors on projects sites. No, because regardless of the shutdown contracts are still being created, jobs are still getting done despite lack of normal federal attention and most federal agencies continue to function completely unaffected. US Federal Contractor Registration is reporting there is no delay in System for Award Management (SAM) registration creation and small businesses are continuing to contact them for registration aid and government contracting assistance.
With the end of the fiscal year approaching, contracting officers have to spend their contracting dollars immediately. Otherwise, they will have a lower spending limit the following year. 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. The majority of business owners find SAM registration to be very difficult and find that the government will reject their registration if improperly filed. That is why over 50,000 businesses have decided to hire US Federal Contractor Registration to conduct their SAM registration and provide year long technical support with the overall process. The silver-lining is that US Federal Contractor Registration will officially remain unaffected by the government shutdown.