On October 1, the government shut down after Congress failed to appropriate funds for FY 2026. While some essential services continue, many agencies have partially or fully suspended operations until additional funds are appropriated. This shutdown will have a substantial impact on the industrial base, which will intensify the longer it continues. Federal agencies have issued detailed guidance on continued operations throughout the shutdown’s duration, including the Department of Defense (DOD), the Department of Commerce, the Department of State, and the Small Business Administration.
Explanations in six questions and answers on the consequences of this situation by Jerry McGinn, Katy Buda, and Audrey Aldisert
Q1: How does the shutdown affect existing contracts?
Q2: How does the shutdown affect pending awards?
Q3: Can companies still engage with their government customers during the shutdown?
Q4: How will the shutdown impact companies’ revenues from federal contracts?
Q5: What does the shutdown mean for the Small Business Innovation Research Program (SBIR)?
Q6: What does the shutdown mean for the Defense Production Act (DPA)?
