Sequestration is going to impact federal contracting and agencies should ensure that any contract actions are both cost-effective and minimize negative impacts on the agency’s mission to the extent practicable, but in general, new contracts should not be entered into unless failing to do so would result in greater costs in the future, according to the OMB memo.
Otherwise, it said agencies should only exercise options where they support high-priority initiatives, and may also consider de-scoping or terminating for convenience contracts that are no longer affordable within the funds available for fiscal 2013, should no other options exist to reduce contracting costs in these instances.
Further, agencies should take all appropriate steps to minimize to the extent practicable the impact on small businesses of reduced contracting activities, OMB said.
