A government shutdown, particularly if it is prolonged, will affect more than just federal workers and their families. The large number of people employed by federal contractors and subcontractors could be at risk of furloughs, delays in pay, and adverse impacts to the companies they work for.

Cuts due to sequestration at the Defense Contract Audit Agency (DCAA) led to higher contract costs that are larger than the cuts, according to DCAA estimates provided to the Center for Effective Government.

Many activists and analysts searching for reduced spending at the Pentagon commonly point to the post-9/11 growth of the department’s federal civilian workforce as a place to find significant savings. No doubt some savings could be found here, especially now that the war in Iraq is over and the one in Afghanistan draws to a close. But on closer examination, the savings from slashing the civilian workforce may not be as high as one might think. In some places, the department may want to further expand the ranks of its civilians to actually save more money.