Sequestration Contractors

Sequestration is a budget technique characterized by the implementation of automatic mandatory spending cuts if deficit levels exceed a certain threshold. The Budget Control Act of 2011 utilized sequestration to... more +
Sequestration is a budget technique characterized by the implementation of automatic mandatory spending cuts if deficit levels exceed a certain threshold. The Budget Control Act of 2011 utilized sequestration to encourage Congress to cut federal spending by 1.2 billion dollars. If Congress fails to make the specified funding cuts, sequestration will kick in and  automatic cuts will be made to the federal budget. A good portion of the slated cuts will come from the national security budget.  less -
News & Analysis as of

Five Cost/Price Evaluation Lessons From Recent Bid Protest Decisions

Introduction - In this era of sequestration and decreased defense spending, paying close attention to cost and price issues is of paramount importance to contractors submitting proposals to the federal government. Nine...more

Sequestration And The Continuing Resolution’s Effect On Government Contracting

On March 26, 2013, President Obama signed the Continuing Resolution, which will fund government operations through the end of Fiscal Year 2013 or September 30. While this may assuage some of the uncertainty of...more

Sequestration and its Impact on the Construction Industry

Pursuant to the Budget Control Act of 2011, sequestration is the process by which automatic across-the-board spending cuts are being imposed on government programs. Because Congress was unable to reach an agreement by its...more

Reported Errors in Calculation of 2 Percent Sequestration

One of King & Spalding’s clients reported to us that its Medicare contractor had not correctly calculated the 2 percent sequestration reduction in payments for purposes of biweekly pass-through payments. ...more

Although Funding Bill Offers Agencies More Discretion On Sequestration, Contractors Should Consider Employment Law Implications in...

On March 21, 2013, the House of Representatives approved a spending bill that would provide funding for the federal government through September 30. The Senate had already passed the bill and President Obama is expected to...more

Under Construction - March 2013: The Ever-Shrinking Federal Budget: Preparing for Contract Cut-Backs

On March 1, 2013, President Obama signed the order directing “sequestration” to go into effect. As has been repeated constantly leading up to sequestration, $85 billion will now be cut from the federal government’s budget...more

Under Construction - March 2013

In This Issue: - Letter From the Editor - Tips for Presenting, Analyzing and Resolving Delay and Impact Claims - The Ever-Shrinking Federal Budget: Preparing for Contract Cut-Backs - Colorado Court of...more

Over-the-Cliff: Advice to Contractors Facing Sequestration

Automatic spending cuts caused by “sequestration” went into effect on March 1, 2013, after the federal Government could not avoid or further delay sequestration as Congress and the President had agreed during January of 2013....more

Sequestration Is Here – Now What Happens to Government Contractors?

On March 1, 2013, President Obama ordered the implementation of across-the-board cuts – sequestration – primarily directed to military and domestic discretionary spending because the White House and congressional leaders...more

How Sequestration May Impact Government Construction Contracts

Pursuant to the Budget Control Act of 2011, sequestration is the process by which automatic across-the-board spending cuts are being imposed on government programs. Because Congress was unable to reach an agreement by its...more

Implementation of Sequestration on Government Contracts

Today, the President issued a Sequestration Order that requires federal agencies to make uniform percentage reductions in each separate item in their budgets. Under that Order, the agencies will be obliged to apply a...more

Legal Alert: Sequestration Arrives With Federal Contractors Still Facing WARN Act Uncertainties

March 1 has arrived without a budget compromise in Washington, DC. Barring a last minute deal before midnight tonight, across-the-board federal budget cuts are expected to go into effect. For employers, this will bring with...more

SEQUESTRATION: Preparing Government Contractors for Uncertainty, Cut-Backs and Contract Termination

Current reports from Congress suggest that “sequestration” will likely take effect as early as March 1, 2013. The sequestration is a key part of the Budget Control Act of 2011, which requires the federal government to...more

Alan Chvotkin on Sequestration [Video]

In this LEVICK daily video interview, we discuss the potential consequences of sequestration and budget uncertainty with Alan Chvotkin, an Executive Vice President and Counsel for the Professional Services Council. With less...more

Sequestration: Funding Shortfalls and Unrequited Patriotism

Sequestration is slated to start January 2, 2013. Under the terms of the Budget Control Act of 2011, OMB must trim $1.2 trillion evenly from the budgets of civilian agencies and the Department of Defense from 2013 through...more

An Update on Sequestration and Government Contractors

Overview. “Sequestration” refers to automatic federal spending cuts put in place by the Budget Control Act of 2011. The cuts go into effect January 2, 2013, unless Congress passes legislation to avoid that result. The...more

Client Alert: WARN Act and Sequestration—What Course to Follow?

If you provide goods or services to the Department of Defense as a prime contractor or subcontractor, you may be concerned about the sequestration of funds beginning January 2, 2013 and its impact on your business. Worrying...more

Sequestration Budget Cuts and the WARN Act

On July 30, the U.S. Department of Labor (DOL) issued a "guidance" letter regarding whether federal contractors must issue written notices - pursuant to the federal Worker Adjustment and Retraining Notification Act (WARN) -...more

Sequestration: What Government Contractors Need to Know

With the 2012 presidential election months away, government agencies and contractors continue to speculate about the possible effects of sequestration. Whether sequestration will actually occur is unknown, as Congressional...more

The Cuts Are Coming, Payments May Not Be: How Defense Contractors Can Prepare

Government contractors are facing a year of unprecedented uncertainty. Three things contribute to this: (1) reduced funding requested by the Pentagon; (2) the prospect of sequestration (the automatic cuts triggered when a...more

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