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Elections, debt limit reset are sources of uncertainty for federal contractors

Source: FNN

National elections, debt limit reset, budget caps, workforce shortages and the pace of contracting are just some of the sources of uncertainty the federal contracting industry faces this year.

With the presidential election fast approaching and the House and Senate majorities being on the line, there are a lot of uncertainties for federal contractors and the way they will interact with their programs after November 5.

“There are eight distinct possibilities that can come out of this election. It’s not just a Democrat or Republican in the White House. It’s a majority of Democrats or Republicans in the Senate. It’s a majority of Democrats or Republicans in the House and the nature of the activities that are likely to come out, the priorities, the objectives, and even the arrangement of funding within that will be very different under one of these possible outcomes than it is under the other possible outcomes,” David Berteau, the President and CEO of the Professional Services Council, said during the Federal Acquisition Conference Thursday.

As elections approach, political appointees start to leave their positions, which usually doesn’t significantly impact ongoing projects, but new programs requiring high-level approval tend to face delays. In addition, it is challenging for political appointees to initiate or complete new projects in the final year of a term.

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