DOT warns companies of canceled, renegotiated contracts

The U.S. Department of Transportation notified contractors Tuesday of potential effects from the sequestration budget cuts, the Washington Business Journal reported. The impacts include not exercising optional years under existing contracts, suspending or reducing the scope of work and negotiating prices down or canceling contracts completely.

Pointing to the $85 billion in federal cuts required by Sept. 30 under sequestration, a notice to contractors from the Office of the Senior Procurement Executive…