Legal Alert - SEQUESTRATION: Preparing Government Contractors for Uncertainty, Cut-Backs and Contract Terminations
February 27, 2013
by Brett W. Johnson
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 immediately cut at least $85 billion from the budget. The cuts will be split equally between the defense and domestic spending budgets. Although the president and Congress are negotiating a possible alternative to sequestration, it is clear that any future solution will result in very large reductions in federal government spending. Because substantial budget cuts will occur in some form, companies that provide goods and services to government entities should have a strategy to ensure that the government meets its contractual and statutory obligations.
Read Bio
©2023 Snell & Wilmer L.L.P. All rights reserved. The purpose of this publication is to provide readers with information on current topics of general interest and nothing herein shall be construed to create, offer, or memorialize the existence of an attorney-client relationship. The content should not be considered legal advice or opinion, because it may not apply to the specific facts of a particular matter. As guidance in areas is constantly changing and evolving, you should consider checking for updated guidance, or consult with legal counsel, before making any decisions.
The material in this newsletter may not be reproduced, distributed, transmitted, cached or otherwise used, except with the written permission of Snell & Wilmer.