{"id":22859,"date":"2018-02-02T16:59:43","date_gmt":"2018-02-02T16:59:43","guid":{"rendered":"https:\/\/one.sightlinemg.com\/federaltimes\/uncategorized\/2018\/02\/02\/continuing-resolutions-jack-up-government-costs\/"},"modified":"2026-08-08T04:54:33","modified_gmt":"2026-08-08T04:54:33","slug":"continuing-resolutions-jack-up-government-costs","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/federaltimes\/congress\/budget\/2018\/02\/02\/continuing-resolutions-jack-up-government-costs\/","title":{"rendered":"Continuing resolutions jack up government costs"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Despite their intended purpose of keeping the government spending at even levels while budget negotiations occur, <a href=\"https:\/\/www.federaltimes.com\/opinions\/2018\/01\/09\/short-term-budget-fixes-are-bad-government\/\" title=\"\" class=\"\" target=\"_blank\">continuing resolutions actually cost the government<\/a> more money, according to government contractors who spoke at a CR roundtable with Rep. Steny Hoyer, D-Md., on Feb. 1, 2018.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cJust holding the government flat actually drives costs,\u201d said Ann Darrin, engineering manager at the Johns Hopkins University Applied Physics Lab. \u201cThere\u2019s no cost savings in continuing resolutions. Actually, it\u2019s the opposite, it drives the costs up, because you can\u2019t start [projects] in a timely manner, you can\u2019t plan, you have to recover, things just get dragged out and you can\u2019t take advantage of new technologies that are coming in.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Over four months into the 2018 fiscal year, Congress has yet to pass a full budget and has instead <a href=\"https:\/\/www.federaltimes.com\/federal-oversight\/congress\/2018\/01\/18\/shutdown-watch-congress-looks-to-pass-a-continuing-resolution-on-federal-budget\/\" title=\"\" class=\"\" target=\"_blank\">relied on four continuing resolutions<\/a> to fund government operations. According to Hoyer, Congress is likely to pass a fifth CR next week, which will keep the government open through March 22, 2018.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Hoyer added that continuing resolutions hurt contractor relationships with suppliers, as the contractors can\u2019t know when full funding will enable them to purchase the materials they need.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Continuing resolutions and <a href=\"https:\/\/www.federaltimes.com\/management\/2018\/01\/19\/contractors-face-greater-uncertainty-as-shutdown-looms\/\" title=\"\" class=\"\" target=\"_blank\">government shutdowns cost contractors<\/a> large sums of money in planning and personnel according to Jonathan Kelly, president of the Goddard Contractors Association and program manager at Science Systems and Applications Inc. His own company recently ran the numbers on just how much the CRs had cost them.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe planning for the four was about a quarter-of-a-million dollars, with unproductive schedules and trips and all of that. The actual shutdown itself, although it only lasted roughly three days, was another quarter-of-a-million dollars. So, in all, we lost in unproductive time where we could have hired roughly five or six more people if we\u2019d had the money,\u201d said Kelly.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cAnd that\u2019s the hard costs. There\u2019s also the soft side of anxiety of employees, the morale \u2014 especially the younger ones who\u2019ve come out and never had to do this before \u2014 they suffer more. And it will affect the recruitment and stuff like that.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">According to Hoyer, those hurt most by the CRs and shutdown are small companies and low-level employees, who rely more heavily on weekly incomes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The structure of many government contracts, which rely on phases that have to be approved prior to moving forward, also drives up costs during a shutdown, as many contractors are stuck in a completed phase while the next waits on budget authorization.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cI think on existing contracts where you have that phased approach, you ramp up over time \u2014 it\u2019s not just a flat line \u2014 and when you\u2019re dealing with CRs, you don\u2019t get to ramp up. And so your program inevitably ends up getting lengthened out, stretched out, when it really wasn\u2019t supposed to. It wasn\u2019t planned that way,\u201d said Georgie Brophy, director of space infrastructure and civil programs at SSL Government Systems.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If that stagnation goes on for too long, contractors risk having to redo the work they\u2019ve already completed.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cIf they can\u2019t award a task because of continuing resolutions for the next phase, then you just put the stuff on the shelf and wait. And the stuff on the shelf gets old. So once the stuff on the shelf gets old, you have to redo it,\u201d said Mina Samii, senior vice president and chief operating officer at Earth Resources Technology.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Contractors also lose out on hiring crucial talent needed to complete future phases, since they don\u2019t know when the funding for that phase will be available. According to Kelly, if contractors can\u2019t hire talent right away, the candidate often already has another job by the time the contractor is able to do so.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWhen we have a lot of CRs where none of the new starts happen, it\u2019s sort of like just keeping things going at a low level, so it\u2019s very stagnant. So we lose productivity, we lose our edge in terms of being able to start new projects,\u201d said Samii. \u201cWe lose good people who will end up saying, \u2019Forget about this, I\u2019m just going to work for industry.\u2019\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Because of these challenges, early budget decisions can end up saving the government a lot of money by preventing contractor costs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe can actually save money by having the right plans, by having the right staff in place, by having the new starts that take advantage of the new technologies that are offered to us,\u201d said Darrin.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Contractor costs and personnel struggles add an unexpected price tag to Congress&#8217;s favorite stopgap measure.<\/p>\n","protected":false},"author":7,"featured_media":45483,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":65,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[65,106,31,15,33],"tags":[],"coauthors":[2853],"class_list":["post-22859","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-budget","category-daily-brief","category-home","category-management","category-newsletters"],"acf":{"subheadline":"","legacy_arc_id":"QOPOCPYQQJHU7L6FWG3BA6ISSM","arc_canonical_url":"\/management\/budget\/2018\/02\/02\/continuing-resolutions-jack-up-government-costs\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented 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