Army Corps Freeze: Contractor Survival and Diversification Guide

The news is urgent: The Trump administration has ordered the Army Corps of Engineers to pause another $11 billion in infrastructure projects, halting work on essential efforts like flood control, navigation, and environmental projects, particularly in Democratic-led regions. This action builds on earlier infrastructure suspensions, creating an immediate and serious threat for firms tied to Corps-funded work.

For small and mid-sized construction, A/E, and environmental consulting businesses, this budget gridlock is an existential threat leading to immediate revenue halts. Subcontractors are on the front lines, facing cash-flow interruptions and the stack-up of unpaid invoices, often with zero notice. Unlike federal employees, contractor staff won’t be reimbursed for lost workdays, making workforce protection a top priority.

This episode is your survival guide, designed to help you shift your mindset from “pause and hope” to “pivot and protect”. We break down the immediate actions you must take to safeguard your company:

• Understanding Stop-Work Orders: We explain the ramifications of Stop-Work Orders issued under FAR 52.242-15 or Suspensions under FAR 52.242-14, which freeze performance on existing task orders.
• Cost Recovery Documentation: Learn why you must start timers for your critical 20- and 30-day notice windows and how to proactively log idle labor, mobilization/demobilization costs, and lost productivity daily using FAR-backed formats for claims.
• The Pivot to Protection: Discover how to immediately diversify your revenue mix. We explore strategies for tapping into the $2 trillion SLED (state, local, and education) infrastructure markets, bidding on state transportation and water projects, and utilizing cooperative purchasing vehicles (like NASPO or Sourcewell) that are not tied to the federal budget cycle.
• Monitoring Recovery: Key signals to watch, including Congressional movement on continuing resolutions and official Army Corps/OMB memos that might reclassify essential projects and unlock funding.

Don’t wait for D.C. to fix this. Resilience in government contracting means preparing for volatility and building a pipeline that doesn’t hinge on a single agency. Listen now to learn how to protect your payroll and pivot fast.