Survival Guide | Beware the CR

Conduct a financial risk assessmenton each contract to identify corporateexposure and customer exposure,then rank the contracts based on risk.Pursue a customer communicationsplan to developrisk-mitigation plans forboth the customer and thecompany.The chief financial officershould aggregate the financialimpacts and construct an overallrisk-mitigation plan for the company,including drawdown requirements onexisting banking lines of credit. Make sure your businessunit leaders understand the basic tenetsof a continuing resolution: no new startsand a slower spending ramp in the government'sfirst and second quarters.Your leaders need to be realistic in theirfinancial forecasts and in their budgetestimates. Our ultimate goal is to have acontinuing resolution feel no different tothe firm or to our clients by concentratingour efforts on strengthening and establishinglong-term relationships and supportingmission-critical programs thatcontinue to rise to the top of the fundingpriorities, even during these flat cycles. Educate the program teamson the impact the continuing resolutionmay have on new work and transformationand modernization programs thatare near start. Understand how potentialdelays might impact business growth andthe cumulative effect on future projects. Quick and clear communicationsgive the customer the opportunity to,within the constraints of the contract,establish priorities for resource shifts, forexample, from nonessential system support to mission-critical system support. Each year, Congress adds languageto the resolution that provides forsome new program starts and specificrelief from the continuing resolution. Youmay be able to help your customers getrelief for items such as critical infrastructureimprovements, public outreach programsand education initiatives. Be proactive in the prior fiscalyear to position critical and value-addedprograms that would continue throughthe continuing resolution. Work withcustomers to make better use of eachdollar spent by concentrating efforts oncritical near-term needs and identifyingand continuing to support selected long lead-time items. No. 1 is an open and honestconversation on what the continuingresolution will do to their agency andprograms. What plans will be stopped orheld? What equipment purchases will bedelayed?Also develop action plans on what willhappen once the budgets are approved.WT: Is a continuing resolution alwaysbad for business? Yes, because most contracts areincrementally funded, the company hasto work at risk. You can bill for the servicesonly if contractually authorized, andin a services environment, you may losestaff if they become nervous over theinstability of their work situation. Borrowing a term from theDefense Systems Management College:"It depends."The potential for funds to be swept upat the end of the fiscal year to pay thebills is much higher and more problematicfor business if you aren't supportingthe war on terror. Not always. In a true government/industry partnership, the teamcan try new or innovative ways to completethe mission. New ideas can betried that may not have been consideredin a business-as-usual environment.