Murky Laws Keep Contractors Wary of Losses in Next Debt Crisis

Lawyers representing government contractors have been keeping track of the legal uncertainties exposed by even the possibility of a debt limit breach, expressing concern for the future if the government doesn’t make certain procurement-related laws more explicit.

Even if what lawmakers and the White House are calling an agreement in principle to raise the debt ceiling is enacted before the government runs out of money for existing obligations, attorneys say that this type of looming threat could become more accepted. If the government defaults once, it could become as common as government shutdowns have in recent years.

“The first time ...