It seems hard to believe, but less than six months after the last budget showdown and shutdown, government contractors find themselves once again facing the prospect of a government shutdown. If the House, Senate and White House can’t come to an agreement over the budget and Obamacare, the stalemate may continue. With only a few days left for a Senate continuing resolution to be passed before the September 30th deadline, government contractors must
Current agency-by-agency effects of sequestration are:
Agriculture Department: Agriculture Department will not need to furlough food safety inspectors, due to the continuing resolution signed March 26.
Air Force: The Washington Post reported that employees in combat zones, non-appropriated funds employees, and foreign nationals would be excepted from furloughs. The Post also said that further exceptions would be allowed for “safety of life or property.” An Air Force spokeswoman told Government Executive that all Air Force civilian police, security guards and firefighters would be subject to furlough “except at installations where the manning level is under 25 percent.”
The Department of Veterans Affairs (VA) reminded readers of a special sequestration exclusion in their March 2013 eNewsletter. A special rule exempts all programs administered by VA (including VA Medical Care) from sequestration (but not federal pay or “federal administrative expenses”). Due to this exemption, VA programs such as the Federal Supply Schedule (FSS) Service will not be impacted by budget cuts. Other government agencies are not so lucky. Unless exempt or subject to special rules, 2013 sequestration reductions are uniform by category for accounts and “programs, projects and activities” within accounts. In 2013, the budget sequester will enact $85.4 billion in cuts with a total of $109 billion in cuts through FY2021.
The VA FSS Program supports the healthcare requirements of the VA and other federal government agencies (OGA) under delegation from GSA. VA explains that the exemption is a direct result of the importance
Results of the widely known and anticipated 18th Annual Grant Thornton Government Contractor Survey were recently released, offering both surprising and presumably expected insights. Julian Rosenberg, government contract advisory leader at Grant Thornton reported some noteworthy takeaways from the survey in the areas of cost accounting, company relationships with the DCAA, revenue, profit, win rates as well as indirect cost rates. Highlights from the survey also supplied interesting information on M&A activity.
Fringe Benefits are Increasing
In a time of fierce competition within the government contracting industry, accounting practices related to indirect costs and direct labor can be critical factors. According to the survey,
WASHINGTON (AP) — Members of Congress are traveling less and worrying more about meeting office salaries. Their aides are contending with long lines to get inside their offices and fewer prospects of a raise. Such are the indignities thrust upon the men and women who brought the country $85 billion in government spending cuts this month.
There probably won’t be much sympathy for a senator or congressman making $174,000 a year who is in no danger of being furloughed or laid off, at least until the next election.