Government contractors are facing an unprecedented calamity as Congress and the President have engaged in a high-stakes no-winners game of chicken with the debt ceiling. Failure to raise the debt ceiling by August 2, 2011 (or raise it sufficiently to cover all expenses even if it is raised) will cause the Government to prioritize payments, scale back and even cancel programs.
Centre has been monitoring this issue closely since the spring has prepared a “White Paper” utilizing the little guidance there is to provide some useful information to government contractors and their government counterparts. The White Paper not only introduces the causes of the debt ceiling situation we are now in, but also details how contracts could be affected, how work stops, and goes into some specific legal issues that arise. Please contact Eric Crusius at email@example.com or 703-288-2800 x238 to receive the White Paper