Surviving the Government Shutdown: Small Business Survival Guide
It all begins with an idea.
Audit your Contract Portfolio Immediately
Classify Contracts by Risk
– Fully funded / fully obligated contracts are safer they may continue despite appropriations lapses.
– Incrementally funded contracts (those reliant on additional funding after start) are at risk of being suspended.
– Dependent on new funds / awards contracts may be fully frozen.
Map Dependencies
Does the work require access to federal facilities, government personnel, or agency reviews that might be suspended? If so, anticipate disruption.
Identify Essential vs Non-Essential Work
Some contracts may be deemed essential (life, safety, emergency) and allowed to continue. But don’t assume get explicit confirmation from your Contracting Officer.
Communicate early & often with your CO / COR
Request Written Direction
Before doing any work under uncertain conditions, ask for written, contract-level direction on whether your contract is “essential” or must stop.
Document all Impacts
Track all costs, delays, extra labor, idle time, and changes in schedule. The more detailed your contemporaneous records, the better your position to recover or negotiate later.
Negotiate Adjustments / Bilateral modifications
Where possible, seek formal contract modifications to reflect new realities (i.e schedule delays)
Contact your Congressional Representatives
Implement a Shutdown Readiness Plan in Advance
Trigger Points and Thresholds
Define triggers (e.g. “if funding lapses”) to switch to your shutdown mode (e.g. pause non-critical tasks, conserve cash.)
Cross-Training and Redeployment
Where possible, shift personnel to non-federal work, commercial projects, internal improvement, or business development during downtime.
Furlough Policies
If you must furlough employees, ensure compliance with both federal and state wage/hour laws (especially for exempt vs nonexempt employees) and plan timing carefully.
Cash Reserve Buffer
If cash reserves are available, set aside a contingency reserve to cover a few weeks or months of expenses.
Credit / Liquidity Arrangements
Have a line of credit, bridge financing, or alternative funding options ready. Some private credit firms specialize in supporting contractors during shutdowns.
Diversify Revenue Sources Away from Federal Fependency
One of the best long-term defenses is reducing reliance on federal contract income alone.
Pursue Commercial/Private Sector Contracts
If you can bid in non-government markets, do so. This gives a buffer when government work slows. It can be tough to pivot, but seek out lean aggressive marketing tactics (i.e cold calling, private sector bid boards) to drive some business in the interim.
Subcontracting and Teaming
Partner with primes on contracts that have more stability, or cross-sector teaming to broaden your exposure. Lean on your network, remember a lot of businesses are in the same boat during a government shutdown.
Recurring / Subscription Services
If your business can add a service or product with recurring revenue (e.g. maintenance, software, training), that revenue is more stable during government funding gaps.
Geographic / Agency Diversification
Don’t put all your eggs in one agency (e.g., DoD, DHS); spread across agencies and regions to reduce exposure. Government shutdowns affect federal civilian and DoD customers differently.
Manage Internal Costs Aggressively
Freeze Nonessential Expenditures
Delay capital purchases, hiring, travel, new technology investments, marketing (if possible).
Negotiate with Subcontractors / Vendors
Seek flexibility, extended payment terms, or “pause” provisions from your vendors.
Lean staffing / Just-in-Time Staffing
Where possible, limit ramp-up until contracts are more certain. Use part-time, contract, or contingency staff if feasible.
Expense control
Focus resources on winning, performing, or safeguarding highest-priority contracts.
Prepare for Restart / Recovery Post-Shutdown
Have a “Restart Playbook”
Be ready to rapidly recommence operations once funding returns: recall staff, re-engage subcontractors, mobilize supply chains.
Expedite Catch-Up Work
Contracts may require acceleration or overtime to meet deadlines compressed by the shutdown. Ensure you understand the risks and negotiate terms.
Pursue Recovery of Costs / Claims
If the shutdown has increased your costs (e.g. idle labor, rework, loss of productivity), explore your legal rights under the contract (e.g. equitable adjustments) to recover.
Maintain Client / Stakeholder Relationships
Continue communication, reassure subcontractors, vendors, and employees about your plans and solidity.
Special Considerations & Legal Cautions
Don’t Proceed without Authorization
Avoid making voluntary services or continuing performance if not authorized—Anti-Deficiency Act prohibits spending without appropriation.
Watch your Contract Clauses
Be familiar with FAR clauses like Availability of Funds (52.232-18), Suspension of Work / Stop-Work clauses (FAR 52.242-14 and 52.242-15), and how they may apply.
Be Careful with Furloughs and Wage Laws
If you furlough employees, ensure you comply with state labor laws, and that exempt classifications (if applicable) remain valid.
Documentation is your Best Friend
When the smoke clears, having contemporaneous logs, communications, time records, cost tracking, and change orders will make or break your ability to recover losses.
A Realistic Outlook & Mindset
Be mentally prepared for:
Delayed Recovery
Even after appropriations resume, it may take time for agencies to ramp up, process invoices, and restart frozen activity.
Cash Drag and Credit Stress
You may need to absorb interest, financing costs, or late payments.
Competitive Shakeout
Some competitors less prepared may fold or scale back, giving you opportunity but also uncertainty.
Policy / Legislative Uncertainty
Future shutdowns or funding gaps may become more frequent, so building resilience is not a one-off task.
Why Responding to RFIs Is Critical to Your Business Success
It all begins with an idea.
In the fast-paced world of procurement and contracting, opportunities often begin long before a formal Request for Proposal (RFP) is issued. The first crucial step? The Request for Information (RFI).
Many companies overlook RFIs, assuming they’re just preliminary or informational. But in reality, responding to RFIs strategically can determine whether your business is even considered for future bids.
RFIs offer a vital opportunity to make contact with the Contracting Officer to influence their acquisition strategy towards a contract vehicle or program that benefits you. Once the requirements are released to bid, that opportunity is lost.
In this article, we’ll break down what RFIs are, why they’re so important, and how you can use them to gain a competitive edge and position your company for long-term success.
What Is an RFI?
An RFI, or Request for Information, is a document organizations use to gather details about products, services, or vendors before launching an official RFP (Request for Proposal) or RFQ (Request for Quotation). Think of an RFI as planting the seed for future business, anchoring your pipeline well into the future.
RFIs help buyers:
Understand what solutions exist in the market
Assess vendor capabilities and experience
Build shortlists for future tenders
For vendors, responding to an RFI is an early opportunity to get your foot in the door, showcase expertise, and influence how the eventual RFP is shaped.
Why Many Businesses Ignore RFIs (and Why That’s a Mistake)
Because RFIs don’t immediately lead to a contract, some companies skip them to focus only on “live” bids. However, this short-term mindset can backfire.
Ignoring RFIs means:
You miss early engagement opportunities with potential clients
You lose visibility before an RFP is even written
You allow competitors to shape the buyer’s understanding and requirements
Only responding to requirements once they’ve become an RFQ or an RFP is like cold calling, your Win P rate is instantly reduced dramatically. Responding to an RFI, even when there’s no immediate payoff, builds brand awareness, trust, and relationships that can directly lead to future business.
The Strategic Value of Responding to RFIs
You Influence the Buying Criteria
When you respond to an RFI, you’re helping the buyer understand what’s possible. Your response can shape the technical requirements or evaluation criteria of the eventual RFP.
In many cases, the vendors that provide the most insightful RFI responses find the later RFP aligns closely with their strengths.
You Build Early Relationships
RFIs allow you to establish credibility with procurement officers and decision-makers before the competition intensifies. By positioning your company as knowledgeable and responsive early on, you’re more likely to be invited to submit formal proposals later.
You Gain Market Intelligence
RFIs aren’t just about selling they’re about learning and they’re about leveraging influence. Responding gives you a window into market needs, future projects, and emerging trends. This intelligence can help you forecast opportunities and refine your offering.
You Strengthen Your Brand Reputation
Organizations that consistently respond to RFIs demonstrate professionalism and reliability. Buyers notice this. Even if you don’t win immediately, you’ll be remembered as a serious, capable vendor.
The Connection Between RFIs and Long-Term Success
Businesses that treat RFIs as strategic opportunities build a stronger pipeline of qualified bids.
Here’s how RFIs contribute directly to success:
Increased invitation rates for RFPs and RFQs
Better understanding of client needs
Higher win rates through early influence
Improved positioning as a trusted partner, not just a bidder
By the time competitors see the RFP, you’ll already have the inside track — because you were part of shaping it.
Early Engagement Equals Future Wins
Responding to RFIs isn’t a low-priority task it’s a strategic investment in your company’s growth. Each RFI you respond to builds visibility, shapes buyer perceptions, and opens doors for future opportunities.
In a competitive marketplace, success doesn’t come from showing up at the last minute it comes from being part of the conversation from the start.
So the next time an RFI crosses your desk, don’t ignore it. Respond smartly, respond strategically and position your business for long-term success. Contact BidSpy to learn more about how to rapidly and effectively respond to RFIs.