This is the time of year when government contractors are optimistically looking for end of the fiscal year "sweep-up" dollars…..NOT SO FAST! There might be a competing priority.

This year contractors need to be proactive in reviewing their existing contracts, going over every detail, to anticipate and plan for possible (if not likely) task order delays and even contract terminations. This proactive approach is critical for small businesses and conducting this contract cautionary review or inventory could be a "make or break" action.

Why especially this year? Yes, this is something you should do every year, but with the pending budget challenges or outright cuts you must analyze what you are selling to the government and what are the possible budget impacts to your current contracts. Remember the federal government can modify or terminate any contract at any time just for their convenience.

Terry Murphy, a partner with the Kaufman & Canoles law firm and federal contracting subject matter expert, agrees that it is especially important that government contractors review their contracts in this uncertain budget environment. He provides the following helpful hints:

•    Be proactive considering all contract contingencies; talk with your contracting officer.

•    Talk with your subcontractors about possible impact to both work flow and payment.

•    Get all changes in your contracts (and subcontracts) in writing and how the government will handle any delays spelled out in writing.

•    Talk with your banker; keep them informed and work out any necessary contingency plans well in advance.

Again, be proactive and plan ahead. Focus on risk mitigation!