Could the Two-Week Federal Furlough Affect Contractors?

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    Elliot Volkman

    H.R. 6134, Rep. Mike Coffman’s (R-CO) debt reduction proposal, hit the floor on the House this month. The bill proposes a mandatory two-week furlough during fiscal year 2012 for federal civilian employees and a 10-percent cut in pay for members of Congress. The proposed bill is expected to save $5.5 billion.

    Coffman described the bill’s effects in a statement. “Currently, at least 24 states, and nearly three quarters of a million workers, are undertaking a budget-cutting maneuver that I believe we should institute at the federal level: short term employee furloughs. These states, across the nation, along with city and county government counterparts, recognize that occasional worker furloughs are necessary to cut budgets and hold down spending. It also has the benefit of ensuring that federal workers are not sheltered from the realities of life in today’s economy.”

    In addition to Coffman’s proposed bill, Rep. Kevin Brady (R-TX) proposed the Cut Unsustainable and Top-heavy Spending (CUTS) Act. The CUTS Act includes a three-year federal employee pay freeze, 10-percent cut in the federal workforce and reduction in government printing and vehicle procurement costs. The act was proposed after President Obama requested a two-year federal employee pay freeze.

    In December 2010, Congress passed a stopgap funding bill that included Obama’s two-year pay freeze for federal civilian employees. It passed 193 to 165 vote in the House and 79 to 16 in the Senate.

    With one bill passed to freeze federal pay and at least two more in the pipeline, what do you think the effect will be on contractors: Will this result in more work for contractors, or less?

    If you don’t want to comment, you can also take the poll.

    [This was originally posted on govWin]

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