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Notice to Vendors Regarding Sequestration

On March 1st, as required by law, the President issued a sequestration order canceling approximately $85 billion in budgetary resources across the Federal government for the remainder of Fiscal Year 2013. Within the Bureau of Prisons (BOP), sequestration will result in a reduction of over $338 million from the Fiscal Year 2013 funding level. Vendors should be aware that the budget cuts imposed by sequestration may impact existing contracts/order and will likely affect the award of new contracts/orders.

We are taking every step to mitigate the effects of these cuts; however, based on our initial analysis, reductions to expenditures under certain contracts/orders may be necessary. New awards will not be made or options exercised unless they are absolutely necessary to protect our mission-critical operations. Vendors with existing contracts with the BOP will be notified by their contracting officer as soon as we determine the specific contracts/orders subject to reduction as well as the extent of the reduction. Please note that reductions to expenditures could be accomplished in a variety of ways, including, but not limited to, price reduction, scope reduction, reduced level of effort, determination to not exercise an option: delay or cancellation of new work, or partial or complete termination for convenience.

Your patience and understanding is appreciated as we work through these challenges.