Winding Down: COVID-19 Work Stoppages & Suspensions

Many contractors are facing work stoppages or suspensions because of COVID-19—especially where working from home is not feasible. This post aims to provide a little bit of clarity about work stoppages, suspensions, and the FAR’s excusable delays provision.

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President Invokes Stafford Act: What that Means for Federal Contractors

Under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121-5207), or more commonly the “Stafford Act,” the President can declare an “emergency” or, if the incident is more serious, a “major disaster.” These declarations, among other things, give federal contracting officials certain acquisition flexibilities not normally available.

In response to COVID-19, President Trump declared a nationwide emergency (an unusual step because these declarations are typically limited to a limited geographic area). And he has since approved major disaster declarations for at least seven states: New York, Washington, California, Iowa, Louisiana, Texas, and Florida. What are some of the flexibilities that have been unleashed by these declarations and how might they impact federal government contractors?

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COVID-19 & SBA 8(a) Program Suspensions: FAQs

If you are a government contractor participating in the Small Business Administration’s 8(a) Business Development Program, there is a good chance you received an email this week about COVID-19 and the SBA’s 8(a) suspension authority. What is this authority and, more importantly, how would suspension impact your 8(a) status?

In this post, we aim to provide some answers to frequently asked questions about these suspensions.

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Did the FAR Plan For COVID-19? Yes, Sort of

There are not many people or organizations that can say they anticipated the spread of this pandemic disease that is confining million to their homes as part of stay in place orders and self quarantines.

Though the FAR Council did not foresee that the coronavirus and COVID-19 would trap contractors in their homes, it did anticipate that from time to time events completely out of the control of contractors may conspire to affect the performance of contracts—though perhaps not to this magnitude.

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OMB Offers Guidance to Agencies about Managing Contractors during COVID-19

Late last week, the Office of Management and Budget issued a memo providing direction to agencies on how to best coordinate with and manage contractors as the nation presses through the disruption caused by COVID-19.

Below are some of the salient points.

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Uncle Sam’s Strong Arm: Contracting Under the Defense Production Act

The COVID-19 pandemic threatens to stretch Americans’ medical resources incredibly thin. From disposable face masks to respirators, there is real concern that current supplies will be insufficient to treat the anticipated influx of COVID-19 patients.

To address this problem, many have pointed to the Defense Production Act as a way to increase production of this essential equipment. This is largely because the Defense Production Act substantially modifies some of the core government contracting principals articulated in the FAR.

From a legal standpoint the Defense Production Act provides some extraordinary powers to the President to increase domestic production in time of crisis, powers that drastically differ from the procedures of the FAR. Importantly, these changes would only impact procurements conducted directly under Defense Production Act authority. For those businesses subject to its provisions, though, the differences could be quite stark.

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The Coronavirus Stimulus Package Could do More for Small Business Contractors

Congress is expected to pass a huge coronavirus stimulus package in the coming days. While lobbyists and congressional staffers wrestle over the last bits and pieces to find their way in to the bill, there seems to be a pretty important group left out—small business federal contractors.

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