OK the government shutdown is over and everything is back to normal, right? Well not quite. It will take some time for the furloughed government employees to catch up to their workload, not to mention that with the holidays, normal FY Q1 activities make the government slower than normal this time of year anyway. Now add to that the backlog of work due to the government shutdown and the workload is overwhelming to most government employees. This will mean that things take longer to accomplish here in the short-run until everyone can catch up. Add to that the effects of sequestration, which everyone feels will be harder to implement this year than it was last year, and the effect is a real slowdown in processing work. This means a slowdown in issuing new contracts and a slowdown in processing payments. This is not to mention a slowdown in processing new RFP's or evaluating new RFP's. Every activity is likely to take longer. This could have the largest effect on small business and small business financing. It will definitely slow down cash flow for small business as well as impact their revenues and profits in the short run. We have talked about this before and small business should evaluate how to deal with these issues.
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