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Challenges Ahead for Government Contractors

Updated on January 12, 2013

when the budget cutting dust clears

As a government contractor, one may not need to be a trendsetter to succeed. In fact, if one were to examine the beliefs of those that work in the field supporting the government as private contractors, it may be disclosed that many such contractors believe the opposite to be the case.

It doesn't really seem like too much of a stretch of the imagination to posit that the setting of trends in the government circle is about as welcome as cutting expenses by eliminating one's own position!

This natural reticence to put a cash cow out to pasture, in the form of suggesting cuts to one's own occupation, may go a long way towards explaining why the government finds itself in debt to the tune of $16 trillion.

No one wants to be the recipient of, or even the thrower of, the proverbial first stone.

Yet the trends are clearly pointing towards the dire need for shedding salaries, workers, yes and even a government contractor or two or three, to avert the pending fiscal cliff.

It remains clear that something and someone is going to have to give if the move towards greater efficiency and economy, to save the nation from its penchant for overspending, is to be in any way authentic.

President Obama, with a clear victory and possibly a mandate in hand, can now bide his time. Will the Republicans play ball? If they don't the fiscal cliff may soon save all the trouble by making the across the board cuts that politicians are inherently loath to make.

How many, if any, of the cuts that are sure to come will be at the expense of the dedicated government contractor? Will they be justified? Will that matter?

Spending cuts. These then are the trends that the government contractor can or at least should realistically anticipate. Expect the unexpected and get prepared for the worst.

Advice? What to do. Give up? Not an option. Who among the present crop of contractors will still have a job when the politicians finally make up their minds? How many new contractors will be able to find a job when the budget cutting dust clears?

Not an attractive scenario.

Government contractors should:

  • reevaluate their status regularly.
  • stay abreast of every proposed spending bill that relates to their contracts
  • remain positive at all times
  • be prepared to resell the value of the work that they have contracted for
  • develop that Plan B,


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