Venable partner John Cooney was quoted in a January 22, 2012 Washington Post article on the possibility of sequestration and its impact on federal contractors. Sequestration is a mandatory reduction of just over a trillion dollars in federal spending between fiscal 2013 and 2021 due to the failure of a congressional supercommitte to agree on spending cuts last year.
Commenting on the potential impact of sequestration on federal contractors in the defense industry, where half of the mandatory cuts would occur, Cooney said, “I don’t think [the outcome] can be predicted with any degree of accuracy.” Cooney warned that sequestration would put pressure on federal agencies and some might threaten not to renew contracts unless prices are lowered. Cooney added that sequestration would be painful for federal agencies, contractors, and Congress. Commenting on the sequestration of the mid-1980s, Cooney said, “It was a wrenching process for all concerned.”
Commenting on the potential impact of sequestration on federal contractors in the defense industry, where half of the mandatory cuts would occur, Cooney said, “I don’t think [the outcome] can be predicted with any degree of accuracy.” Cooney warned that sequestration would put pressure on federal agencies and some might threaten not to renew contracts unless prices are lowered. Cooney added that sequestration would be painful for federal agencies, contractors, and Congress. Commenting on the sequestration of the mid-1980s, Cooney said, “It was a wrenching process for all concerned.”