Frozen Funds: How the Shutdown Paralyzes Federal Contractors

Original broadcast: 10/19/25

In this episode of Fed Gov Today with Francis Rose, the show opens with the federal government entering the third week of its shutdown. Francis is joined by Joe Jordan, President and CEO of Actuparo, and Alan Thomas, owner of Alpha Tango Strategies. Both share firsthand insight into how the “federal buying machine” is grinding to a halt. Joe explains that agencies are running out of funds and that invoices are no longer being processed, creating a cash flow crunch for contractors. Alan adds that small businesses are already feeling the pain—some even taking out lines of credit to pay staff while waiting for payments. 

The conversation explores how the shutdown could discourage new, innovative companies from working with the federal government and erode trust in the contracting process. Joe advises vendors to track shutdown-related costs carefully, manage cash flow, and communicate clearly with employees and clients. Alan emphasizes the importance of maintaining relationships and empathy on both sides of government and industry during tough times.

Later, Francis welcomes Jordan Burris, Head of Public Sector at Socure, who argues that bureaucracy isn’t the real problem—it’s the lack of a single buyer in government. He explains how multiple stakeholders with conflicting incentives slow procurement and how aligning incentives and rethinking compliance could make acquisition faster and more effective. Burris supports incremental steps toward a “one door” model within agencies to simplify buying and strengthen collaboration.

When the Money Stops: How the Shutdown Is Squeezing Federal Contractors

Francis welcomes Joe Jordan, President and CEO of Actuparo and former Administrator for Federal Procurement Policy, and Alan Thomas, owner of Alpha Tango Strategies and former Commissioner of the Federal Acquisition Service at GSA. Together, they discuss how the shutdown is disrupting federal spending and straining contractors across the country.

Joe explains that agencies are running out of money for programs without multi-year or “no-year” funding, leaving invoices unprocessed and cash flow tight for vendors. Alan shares that some small businesses are already taking out lines of credit to cover payroll as they wait for delayed payments. Both agree that while established contractors will likely endure the disruption, newer companies may reconsider doing business with the federal government after experiencing this instability.

Joe advises contractors to track all shutdown-related expenses, manage cash flow carefully, and communicate openly with employees who may be anxious about the uncertainty. Alan emphasizes the importance of keeping communication strong between government and industry, even during furloughs, to preserve relationships and readiness when operations resume.

As they look ahead, Joe and Alan urge leaders to prepare now for reopening by being patient, collaborative, and understanding of the challenges federal employees will face once they return. Their shared message: focus on people, stay connected, and plan ahead to help the federal contracting community recover smoothly when the shutdown ends.

Three Key Takeaways:

1. Shutdown squeezes contractors, especially small businesses.
   Agencies are running out of funds, delaying payments and forcing small firms to rely on credit just to stay afloat.
2. Communication keeps teams and clients steady.
   Joe Jordan and Alan Thomas stress staying transparent with employees and maintaining contact with government partners throughout the shutdown.
3. Prepare early for a smooth restart.
   When agencies reopen, patience and collaboration will help contractors recover faster and rebuild momentum.

One Door to Government: Fixing Federal Buying from the Inside Out

In the second segment of Fed Gov Today with Francis Rose, Francis welcomes Jordan Burris, Head of Public Sector at Socure and former Chief of Staff to the Federal CIO at the Office of Management and Budget. Burris discusses his recent LinkedIn post arguing that bureaucracy isn’t the real problem in federal acquisition—the challenge is that government has no single buyer. He explains that, unlike in private industry, every government purchase involves multiple stakeholders—procurement, finance, IT, legal, and program owners—each with their own authority and priorities. This creates a system where decisions stall and incentives often work at cross purposes.

Burris says that to improve procurement, agencies must shift from a culture driven by compliance to one focused on performance and return on investment. He believes that rethinking who has decision-making power, aligning incentives, and allowing more flexibility in budgeting could make acquisitions more efficient and outcome-driven. He highlights the General Services Administration’s “OneGov” strategy as a promising step toward creating a unified buying approach, where vendors deal with a single government representative instead of multiple disconnected offices.

He adds that smaller, incremental progress within agencies—such as aligning stakeholders at the bureau or program level—can demonstrate success and be scaled across government. Collaboration between CIOs, CFOs, and acquisition leaders, he says, is essential for aligning technology and mission goals. Burris concludes that by working together and focusing on outcomes, government can simplify procurement and better serve the American public.

Key Takeaways:

1. The real problem isn’t bureaucracy—it’s fragmentation.
   Jordan Burris says government buying stalls because too many stakeholders share decision power, slowing progress and creating conflicting priorities.
2. Shift from compliance to performance.
   He urges agencies to focus less on checking boxes and more on outcomes, return on investment, and mission impact.
3. Build "one door" for smarter buying.
   Burris supports the GSA's strategy and encourages agencies to test unified buying models on a small scale to simplify procurement and improve collaboration.