March 12, 2013

Dear Contractor,

As you are likely aware, due to the failure of Congress to reach a deal on balanced deficit reduction to avoid sequestration, the President on March 1, 2013, as required by law, issued a sequestration order canceling approximately $85 billion in budgetary resources across the Federal government for the remainder of the Federal fiscal year.  As partners with the United States Agency for International Development (USAID), we are writing to provide you with timely and clear information about how these unfortunate budget cuts impact us, and in turn what it means for funds provided to your company.

At this time, USAID is taking every step to mitigate the effects of these cuts, but based on our initial analysis, it is likely that your company's workforce, revenue, and planning processes may be affected.  For example, USAID may decide not to exercise an option on your contract or may need to negotiate lower prices or other terms via a bilateral modification to meet the constraints imposed by sequestration.  The Agency may also determine it necessary to stop or suspend work, reduce the scope of work, or partially or completely terminate your contract for convenience.  Additionally, planned contract actions for new work may be re-scoped, delayed, or canceled depending on the nature of the work and the degree to which it directly supports the agency's mission goals. 

  To the extent that your contract is affected due to these budget cuts, you will be contacted by the appropriate USAID Contracting Officer with additional details.

Thank you for your continued partnership with the United States Agency for International Development and for your cooperation as we work together to manage these unfortunate circumstances.

 Sincerely,

 Aman S. Djahanbani

Senior Procurement Executive