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Possible Sequestration Has Area Employers On Edge

10:25 PM, Feb 5, 2013   |    comments
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Managing Partner Cos DiMaggio of Alexandria's The Tauri Group.

ALEXANDRIA, Va. (WUSA) -- President Obama Tuesday called on congress to pass a temporary alternative fix to the coming sequestration cuts that threaten recession and, according to the Congressional Budget Office, a million jobs.

"We should give them the chance to come up with this budget instead of making indiscriminate cuts now that will cost U.S. jobs and significantly slow down our recovery," President Obama said.

Washington, DC area contractors who do business with the federal government say the potential of those across-the-board sequestration cuts is causing uncertainty that makes business planning nearly impossible.

"It's very uncertain. People are not sure whether they are going to have new opportunities to go through because of all the delays
and the uncertainty of what's going to get funded and, most importantly, the people who are employed now don't know whether they're going to have a job tomorrow because we don't know where the cuts are going to come from," said Managing Partner Cos DiMaggio of Alexandria's The Tauri Group.

The Tauri Group provides analytical decision support and program management to primarily federal clients who are involved in very technically-oriented programs in national defense, homeland security and aerospace.

Not knowing what the government is going to do makes business planning impossible, he says.

"It means we have to plan for a much greater variety of scenarios,
everything from normal planning, you plan on a certain level of success based on past history, to everything imploding, and what do you do then," DiMaggio said.

He says the worst part of the uncertainty is "if there are going to be cuts that come through sequestration, as opposed to some measured process, they're indiscriminate. They are without regard to priorities. Everything gets cut, and everything gets cut in a significant way."

Some contractors have begun to act in anticipation of the worst.

"One of the things that we have already started seeing is that some companies, in fact one of our subcontractors, issued a preemptive layoff notice just yesterday. In other words they sent letters to about 15 of their employees saying you're out of a job in a couple of weeks unless things get better, even though there is funding right now for that work."

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