Staying Calm as Sequestration Looms
July 15, 2012
Despite the concerns of larger defense contractors, smaller companies are taking a more measured and cautious approach to about $1 trillion in mandatory federal budget reductions set to start in January.
The cuts — better known as sequestration — has been roundly criticized by officials at the largest defense contractors. Perhaps the most vocal has been Robert J. Stevens of Bethesda-based Lockheed Martin, who has publicly said the company may have to notify all of its employees within months that they could be laid off if sequestration goes into effect.
Smaller contractors, which typically lack extensive government relations and lobbying teams, have been increasingly trying to figure out how the cut will affect their businesses. Arlington-based industry group Professional Services Council last week held an event attended by about 300 contracting representatives — in person and on the phone — in which it reviewed how sequestration might work.