Measuring the Effects of Federal Budget Dysfunction: Impacts of Continuing Resolutions on Public Procurement

Abstract

This study measures the behavioral effects of continuing resolutions by examining their impact on federal procurement activities. The restrictions imposed by continuing resolutions are explored as an example of political control over a public organization. The analysis employs a dataset describing the timing of U.S. Marine Corps purchase orders for goods and services. Individual purchase orders were sampled over a four-year period (2016−2019) that endured continuing resolutions of different lengths. The analysis examines the impact of continuing resolutions on the number of purchase orders initiated, the duration of their review period, and the dollar amount per request. The results depict multiple impacts that appear to concentrate on requests for services rather than commodities. These findings help quantify the magnitude of the disruptions caused by federal budgetary dysfunction.