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1 1 (January 10, 2019)

handle is hein.crs/govyjv0001 and id is 1 raw text is: Congressional ______ SResearch Service How a Government Shutdown Affects Government Contracts January 10, 2019 On December 22, 2018, funding lapsed on annual appropriations for certain government agencies, causing a partial government shutdown. This has prompted questions about how the FY2019 partial government shutdown might affect, among other things, the government's ability to solicit and award new contracts and contractors' ability to perform and to be compensated under existing contracts. The effects that the funding lapse will have on federal contracts depend in large part upon the length of the shutdown, as well as the contract's type, terms, funding source, and similar factors. In general, however, during a lapse in funding, the Antideficiency Act significantly limits an affected agency's ability to solicit and award new contracts, to obligate new funds to existing contracts, and to perform essential contract administration functions. Consequently, the shutdown may affect even fully funded contracts to some degree. This Sidebar examines possible effects that a government shutdown could have on new and existing federal contracts. It does not address particular agencies or specific contracts. While certain agencies have issued contingency plans that provide guidance about how the funding lapse affects their contracts and procurement programs, the detail of such guidance varies by agency and contract. In some instances, agencies might have provided only general guidance applicable to all contractors that might not clearly address all relevant issues associated with individual contracts. In other instances, agency contracting officers might have provided individualized guidance or formally exercised rights under specific contracts in advance of a funding lapse. However, given the uncertainties surrounding this partial shutdown, contracting officers might not have fully addressed every individual contract in advance of the funding lapse. As a result, contracting officers may need to modify contracts or take other actions to address the impact the shutdown had on individual contracts after funding is approved. Potential Effects on New Contracts The Antideficiency Act-a generally applicable appropriations statute-broadly forbids federal employees from obligating funds above or in advance of an appropriation or from volunteering services to the government. Employees who violate the Antideficiency Act could be subject to employment discipline and criminal penalties. Consequently, federal agencies whose annual appropriations have lapsed generally must furlough employees and halt all activities other than those that are excepted from the strictures of Congressional Research Service https://crsreports.congress.gov LSB10243 CRS Legal Sidebar Prepared for Members and Committees of Congress

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