Sequestration Memo from OMB

Summary of the agency responsibilities for implementation

OMB released its memo on February 27 outlining Federal agencies’ responsibilities under the sequester. The full memo is here: Sequestration memo from OMB m-13-05

Agencies will need to:
• reduce approximately 9% for non-defense programs and 13% for defense programs
• maintain and prioritize mission
• identify any major contracts and grants they plan to cancel, re-scope delay or change payment amounts
• identify the number of employees furloughed, length of the furlough and timing
• inform stakeholders – including Federal contractors – and partners in a timely and complete manner of sequestration using as many specifics as possible
• agencies should assure that any contract actions are cost-effective and minimize the impact on mission
• program, acquisition, financial/budget management, information technology and legal should work together to make contract determinations
• new contracts or exercise options should only be entered in to if they support high priority initiatives or failure would expose the government to significant costs in the future
• de-scope or terminate for convenience contracts that are no longer affordable — after evaluation of the cost and benefits and appropriately inform and negotiate with contractors
• in the case of grants, loans, and other Federal financial assistance, agencies should ensure that new obligations or existing agreements protect the mission at the post-sequestration level and inform recipients as early as possible
• implement internal risk management strategies and internal controls that provide hieghtened scrutiny of certain types of activities from sequestered accounts including: hiring new personnel, issuing discretionary monetary awards to employees, incurring obligations for new training, conferences and travel.