DHS Sequestration Letter to Contractors
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The Department of Homeland Security (DHS) has informed its contractor community about potential contract impacts due to sequestration mandated by the Budget Control Act of 2011. While DHS is actively working to reduce the negative effects, there is a possibility that budget cuts could lead to reduced funding for the procurement of certain supplies and services, as well as decreased government capacity to manage contracts. This could result in cancellations, scope reductions, or terminations of both planned procurements and existing contracts. In case such actions are necessary, contractors will receive timely notifications from the Contracting Officer, including instructions to ensure compliance with DHS decisions under the affected contracts. For canceled or delayed procurements, updates will be made in the Acquisition Planning Forecast System. However, if a contract is not impacted by sequestration, DHS will not send specific notifications to contractors. Until a formal notice is provided indicating otherwise, contractors are expected to continue fulfilling all contract terms, requirements, and deliveries. Contractors with questions are advised to contact their assigned Contracting Officer. This communication underscores DHS’s commitment to transparency and collaboration while managing the challenges arising from sequestration.
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