Experts Highlight Uncertainty as Primary Shutdown Effect

Some analysts believe the federal shutdown’s effects on contractors will linger even after the government reopens and resolves the dispute over the debt ceiling, Bloomberg reported Thursday.

Kathleen Miller and Danielle Ivory write several federal contractors have experienced late payments, stop-work orders and solicitation cancellations amid the shutdown.

“Even if the government suddenly opens for business, we can’t expect everything to get back to normal right away,” Larry Allen, president of McLean, Va.-based Allen Federal Business Partners, said in a statement.

A Defense Department spokesman told Bloomberg the agency expects to process more invoices and payments now that it has called back to work some of its furloughed civilian staff.

Miller and Ivory report agencies award more than $500 billion in contracts per year and the Pentagon accounts for more than two-thirds of all federal awards.

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