Defense contractors say it is hard to determine this early on how their programs will be affected by the ongoing government shutdown, but they seem to believe they can continue working as planned throughout the shutdown, building ships, aircraft and weapons systems for the military.

Huntington Ingalls Industries [HII] spokeswoman Beci Brenton said the company is closely monitoring the situation and discussing potential impacts with the Navy. “The majority of our contracts are already funded, so we would anticipate minimal near-term impact,” she added.

Prime contractors believe their work constructing ships and aircraft, supporting fielded systems and more will continue unimpeded in the short-term but will monitor how the government shutdown will affect their programs if it drags on too long. Photo courtesy U.S. Navy.

Lockheed Martin

[LMT], which has contracts for construction, services, maintenance planning and much more for a range of tasks in all the services, said any impact to the company would depend on the terms of individual contracts. “Unless we are directed otherwise by our customers, our facilities will remain open, and our employees will continue to receive their pay and benefits,” company spokeswoman Larisa Cioaca said. “Employees working at government offices that are closed may work from the nearest LM office or from home.”

Boeing [BA] too believes it should be somewhat shielded from the shutdown in the near-term. “Boeing and the Defense Contract Management Agency (DCMA) have contingency plans that have gone into effect,” spokeswoman Meghan McCormick said. “At this time, normal production is expected to continue for most programs during a short-duration shutdown. Boeing, its customers and DCMA will also be coordinating continuation of critical production operations and services. Employees supporting programs or activities where operations are curtailed or halted due to funding or other issues will be notified by their managers.”

Rep. Joe Courtney (D-Conn.) said he thought the Navy had taken steps to help shield the industrial base in his district from facing the effects of a shutdown.  The service awarded several contracts right before the end of the fiscal year, including a repair availability contract for USS Providence (SSN-719) to General Dynamics Electric Boat [GD] just two days before the end of the fiscal year, and a $152 million contract modification to Electric Boat made four days before the end of the year in support of development studies and design efforts to support the attack submarine program.

“So I think there was an attempt to try to, even with sequestration and all the other pressures, to try and at least maximize whatever resources they had to bridge the potential gaps there,” Courtney said.