During the TELECON, SIGA management stated that sequestration will not affect the BARDA contract. However, going forward we need to understand how this could jeopardize future sales.
The Department of Homeland Security (DHS) may cut, curtail or cancel certain contracts in the remainder of the fiscal year because of sequestration, its chief procurement officer cautioned in a recent notice to its contractors.
The department has not yet made any determinations as to which if any contracts the sequester will affect, but it may send special notifications to specific contractors if it must cut funding for the programs they support, wrote Nick Nayak in a letter to industry Tuesday.
[Editor's note: For a deeper look at the impact of sequestration on DHS and homeland security, see this Homeland Security Today "Kimery Report,"DHS Moves to Implement Sequester; How Will Security be Impacted?"]
Sequestration requires federal agencies to cut a certain percentage of funds at various levels from non-exempt accounts across the board. Homeland Security Secretary Janet Napolitano recently estimated DHS loses about five percent of its overall budget for FY 2013 under sequestration.
"At this time, DHS is taking every step to mitigate the effects of these cuts, though it is possible that sequestration may result in a reduction in the funds designated to purchase certain supplies and services as well as reduction in the government's capacity to administer DHS contracts. Such reductions may result in certain planned procurements being cancelled or reduced in scope and certain existing contracts being reduced in scope, terminated or partially terminated," Nayak said.
If DHS designates a contract for reduction, termination or partial termination, the contracting officer for that contract will send a formal notice to the contractor "in accordance with the terms and conditions of the affected contract," Nayak said.
Each individual notice would contain instructions for the cont
sequestion is a joke. The Feds will still be spending a trillion more this coming year as it did when this clown took office. All that is being "cut" is the rate of growth in spending. It is a political football with each side trying to scare the public into blaming the other. That said, there is always a risk that spending for programs can be cut and that language will always be in their "disclaimer." Who knows, BHO may want to spend more on golfing with Tiger and buy less for homeland security.
For Immediate Release March 13, 2013
Statement from the Press Secretary on H.R. 307
On March 13, 2013, the President signed into law:
H.R. 307, the "Pandemic and All-Hazards Preparedness Reauthorization Act of 2013," which reauthorizes appropriations through Fiscal Year 2018 and revises authorities for activities to improve public health and bioterrorism emergency planning, preparedness, and response; streamlines authorities within the Department of Health and Human Services to improve coordination and eliminate inefficiencies; and strengthens the role of the Food and Drug Administration to bring prevention and treatment products, known as "countermeasures," to market for emergency use.