Chantilly, VA (PRWEB) October 16, 2013
With almost 1000 federal contractor clients, Gary Loyd, the Centurion Research Solutions CEO, has ample reason for concern. In Tuesday's Washington Technology Insider, Centurion's business development expert, Mike Lisagor, pointed out, "For every closed government building, hundreds or even thousands of contractors have been sent home. The furlough of contracting officers has resulted in delayed awards meaning lost company revenue and laid off employees. With over 150,000 companies doing business with the federal government in fiscal year 2012, this is no small issue."
The general public believes contractor employees, like their federal counterparts, will eventually be compensated for lost hours due to the government shutdown. With the exception of certain contract types such as fixed price, this just isn’t the case. Most services contracts are cost reimbursable or time and materials. That means contractors cannot be paid for work not performed."
Lowest Price Technically Acceptable (LPTA) awards have meant much lower profit margins for services contractors. Small businesses, in particular, lack the resources to sustain their workforce during a furlough. Non-payment means negative cash flow. So, company employees are being sent home and forced to use accrued personal leave. Tens of thousands of new jobless claims have already been filed with more to come."
While few federal workers will lose their jobs, major contractors, like Lockheed Martin and Raytheon, have already announced significant lay-offs. In many cases, agencies that rely on these skilled workers to supplement their workforce will no longer have access to their services."
When (and if) the government opens its doors, so-called non-essential federal workers will most likely be paid for the time they were furloughed. For contractors, it’s not a question of essential or non-essential. That train already left the station."
Continued fiscal fighting may be a new reality for government contracting. Smart companies will continue to tighten their belts and look for new markets and opportunities most likely to be funded in the future. Smart employees will do the same."
About Centurion Research Solutions
Centurion Research Solutions, founded in 2003, is a business intelligence and analytics company with a simple mission: offer innovative solutions that help federal contractors efficiently win more government business. To achieve this mission, Centurion has been providing online, subscription-based services, custom research and analysis, tools and methodologies, professional services and in-depth training. Industry leaders such as Alion, Northrop Grumman, SAIC, Lockheed Martin, BAE Systems, InDyne, CACI and Raytheon rely on Centurion solutions, thought-leadership and expertise to help them identify and analyze relevant opportunities to win more government contracts.