Tuesday, October 1, 2013

U.S. Government Shutdown May Mean That DoD Contractors May Not Get Paid

Shutdown May Disrupt DoD Contractor Pay, Official Says -- Defense News

A government shutdown could potentially disrupt or delay payments to contractors and some will not be paid at all, according to a Sept. 26 letter from a top DoD official.

Frank Kendall, undersecretary of defense for acquisition, technology and logistics, said in a letter to trade groups that contractors performing work on contracts made in fiscal 2013 or before will “generally” be paid, but that only fiscal 2014 contracts for “excepted” activities will be paid during a shutdown.

“There may, however, be delays or disruptions in payments because of the effects of shutdown on government employees who process payments,” he said.

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My Comment: As of now the U.S. government is shutting down .... and here is an easy prediction .... as soon as all of these top defense executives get into their office, every one of them  will be calling their lobbyists and politicians demanding to know what are they going to do to fix this mess.

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