Are you still getting paid for the work you do? If you're still getting paid for the work you do... well, contractual instability happens, and the issue is being handled at levels above you. The uncertainty is unpleasant, but there's not a lot you can do about it. For now, just keep working and keep getting paid.
At the same time, if I'm reading this right, it's not a particularly good sign as far as long-term stability of your position. If the contract falls through entirely, would that mean you'd likely lose your job? If so, this is a good time for you to be sharpening up your resume.