September 11, 2025

As the end of the federal fiscal year approaches, September 30th, many government contractors are facing a far different environment than usual. Instead of the typical year-end buying surge, this year is marked by budget uncertainty, possible government shutdowns, and a volatile contracting landscape.

If you’re a government contractor, now is the time to prepare strategically, not just aggressively.

Here’s what your team should be doing right now to manage risk and maintain resilience in the face of federal funding uncertainty.

1. Monitor the Budget and Shutdown Outlook Closely

The risk of a federal government shutdown is very real during this time of year – especially when Congress is struggling to pass full appropriations bills or relying on short-term Continuing Resolutions (CRs).

You should be:

  • Tracking Congressional budget negotiations and agency contingency plans;
  • Subscribed to alerts from OMB, GSA, and agency-specific acquisition offices;
  • Talking to your contracting officers about how a potential shutdown would impact your contracts.

**Action Step: Identify which of your contracts are funded, incrementally funded, or dependent on new appropriations.

2. Review Your Contracts for Stop-Work Clauses and Funding Status

Many contracts include stop-work clauses that allow the government to pause performance during a shutdown. Others are fully funded and can continue regardless.

You need to know:

  • Which contracts can continue under a CR or shutdown
  • Which personnel or projects may need to be paused
  • How you’ll manage cash flow if payments are delayed

Tip: Document everything and keep detailed communications with COs. Written direction is key.

3. Communicate Proactively With Government Customers

Many agency staff are equally unsure about what’s coming. You can stand out by being proactive and clear in your communication:

  • Ask your Contracting Officer how a CR or shutdown might affect specific deliverables;
  • Clarify whether your work is deemed “essential” or “excepted”;
  • Offer contingency plans that demonstrate reliability under uncertainty.

Tip: Be the contractor who makes the CO’s life easier – not harder.

Need expert support to close out the federal fiscal year?

Rubino works closely with government contractors to ensure that nothing is left to chance during this critical time. From finalizing deliverables and reviewing compliance to preparing financial statements and navigating FAR and DFARS requirements, our team understands the unique challenges of the year-end sprint.
Whether you’re racing to secure final approvals, submitting last-minute proposals, or ensuring your accounting systems are audit-ready, Rubino can help you close the fiscal year with confidence, and set the stage for a strong year ahead.

Let’s talk about how we can support your success.

4. Brace for Delayed Awards, Modifications, and Payments

Even if your contract work is uninterrupted, other areas might suffer:

  • Delays in award announcements;
  • Slower modifications or option period exercises;
  • Payment processing delays, especially for cost-reimbursement contracts.

Now is the time to:

  • Assess your cash flow: Can you float payroll for 30+ days if payments are delayed?
  • Talk to lenders and financial partners: Prepare a line of credit or bridge funding if needed.
  • Notify subcontractors: Be transparent about potential slowdowns or work pauses.

5. Diversify Your Portfolio to Manage Risk

If you’re overly dependent on one agency or one type of contract vehicle, your business may be vulnerable to shutdown-driven disruptions.

Consider:

  • Expanding into agencies less likely to be impacted by shutdowns (DoD, VA, etc.);
  • Pursuing multi-year IDIQs or task orders that are already funded;
  • Partnering with prime contractors to access more stable work streams.

Strategy Note: The most resilient firms spread risk across multiple contracts, funding sources, and customer types.

6. Tighten Internal Operations and Scenario Planning

Uncertainty doesn’t mean inaction. It means preparation. Your operations team should be actively:

  • Mapping out shutdown contingency plans
  • Identifying key personnel for standby or reassignment
  • Creating templates for stop-work notifications, client updates, and Human Resources guidance

Prepare Now: Don’t wait until the shutdown hits. You need to be ready to act within hours.

7. Use the Downtime, If It Comes, Wisely

If a shutdown does occur and your work is paused, use the time to:

  • Refresh your capability statements and marketing materials;
  • Conduct training and certifications for staff;
  • Revisit your business development pipeline and preparation for Q1/FY2026.

Think of it as an enforced pause to strengthen your long-term positioning.

Final Thoughts: Resilience Over Revenue

This fiscal year’s close isn’t just about chasing awards – it’s about ensuring your business can withstand shocks, communicate clearly, and maintain trust with both government and industry partners.

In an environment where procurement is slowed by political uncertainty, contractors who are prepared, flexible, and financially sound will emerge stronger.

Need Help Navigating Uncertainty?

Whether you’re managing a portfolio of federal contracts or just entering the market, navigating potential shutdowns requires a solid plan. If you need help building a risk mitigation strategy, evaluating your contracts, or planning communications, we’re here to support you.

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