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SIGA Technologies Inc. Message Board

  • ret6408 ret6408 Mar 7, 2013 6:10 PM Flag

    Is contract safe? Rose said yes

    DHS May Cut Or Cancel Select Contracts Due To Sequester

    [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 contractor on how to comply with DHS orders under sequestration. If DHS chooses to cancel or delay an upcoming acquisition that has yet to be awarded, the department will update its Acquisition Planning Forecast System to reflect that cancelation or delay, Nayak said.

    Contractors unaffected by sequestration will receive no special notices of any kind, Nayak added. All contractors should carry out business as usual unless they receive a formal notification to the contrary.

    Nayak encouraged any contractors with questions to contact the individual contracting officer(s) assigned to their projects.

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    • Both Rose and Luckshire said that the contract was safe when responding to a question by Fred Greenburg:

      "FG: Any backlash effect backwash risk from this sequester which came down dramatically resulting in a lot of instant potential cutbacks, wouldn't you be in line for being cut back in some way?

      ER: Our understanding of our contract is that is in budgets that are not part of the sequester.

      DL: It's uh...The money funding our contract came from a special reserve fund that was appropriated in...

      FG: ....

      ER: 2004

      DL: 2004, so it's not part of an annual appropriation process. So that amount is then obligated to our contract.

      FG: OK..."

    • This is the part I wanted to paste. From the UPMC website:

      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.

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