$200M/Day in Federal Contracts for Boeing, Others, in Jeopardy Due to Shutdown

via Bloomberg:

  • Closure could mean lost, delayed money for service providers
  • Boeing, Leidos among companies with big federal contracts

 

If recent history is any guide, federal contractors could be out more than $200 million a day in lost or delayed revenue from the partial government shutdown, based on data compiled by Bloomberg.

The companies run the gamut, from businesses that provide upgrades to flight communications and air traffic systems, to producers of anti-malarial and HIV medicines in Africa, to operators of government cafeterias.

Since Dec. 22, thirteen major federal departments and agencies have closed as Republicans and Democrats argue over whether Congress should provide President Donald Trump with money to build a wall along the U.S. border with Mexico. Those agencies have mostly stopped awarding new money for contracts.

In the fiscal year that ended Oct. 1, those agencies announced $89.3 billion in obligations to contractors, an average of $245 million each day, according to reports from federal databases. The Department of Homeland Security, NASA, and the State Department accounted for more than half those funds.

Turning Off the Tap

The shutdown has halted most contract obligations at the following agencies. Here’s how much those agencies awarded in contracts in the 2018 fiscal year.

Source: Data compiled by Bloomberg Government

The data don’t reveal which companies aren’t getting paid. But using reports from federal databases, Bloomberg Government calculated the contractors that received the most money in obligations from those 13 agencies in the latest fiscal year. Near the top of that list are a number of publicly traded companies, including Boeing Co.General Dynamics Corp.and Leidos Holdings Inc.

“We are actively monitoring the situation and await direction from our government customers,” Erin Tindell, a spokeswoman for Leidos, said by email. “A relatively small portion of our business is impacted by the recent government shutdown.”

Shutdown Threatens Major Federal Contractors

During the 2018 fiscal year, the following contractors each received at least $500 million in obligations from the 13 major agencies now closed by the shutdown.

Source: Data compiled by Bloomberg Government

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