12:24 am, May 27, 2015

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  • Time lag
    If there is one thing that the industry should understand, the wheels of the government turn slowly. When sequestration hits the government KO's will need time to issue modifications to contracts. The contracts most likely to be impacted first are those service and support contracts, which the government will decide no longer are quite as necessary as first thought. Landscaping contracts, office support, even some consulting support will get cancelled or reduced. The corollary to this is that unless the law is revoked, the actions get much more radical to make the level of cuts required by the end of FY. Day one impact may be minor, but some programs will have pretty sharp cuts by the end of the year to make the required reduction.
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