If you are a government contractor, odds are you have faced a situation where some aspect of the contract you were performing changed outside of your control, or you ran into something that neither you nor the government expected. As a result, your work requirements likely changed, and with that, your costs likely changed as well. When this happens, there are multiple paths to getting reimbursements for those new costs, and one of the most common ones is a request for equitable adjustment. Today, we’re going to explore when you should submit a request for equitable adjustment as opposed to the other routes.
Continue readingTag Archives: request for equitable adjustment
Help on the Way? Proposed National Defense Authorization Act for 2023 Grants DoD Discretion to Allow Inflation Relief for DoD Contractors
The annual National Defense Authorization Act (NDAA), in essence Congress’ annual budget for the Department of Defense (DoD), commonly includes various riders and attachments that amend or create other federal laws. For example, the 2022 NDAA (finally) gave SBA’s Office of Hearings and Appeals the authority to hear appeals of HUBZone protests (something SBA just recently proposed a rule regarding), and the 2021 NDAA is why SDVOSB self-certification is ending and SBA is taking over the job of carrying out certifications from the VA (SDVOSB contractors, SBA will start accepting applications on January 9, 2023, as we discuss here.) The 2023 NDAA is no exception, and as it is currently proposed, the DoD would get a lot more discretion to help out its contractors in light of inflation.
Continue readingDepartment of Defense Unveils Plan to Address Effects of Inflation on Contracts
Inflation. A word no one likes, but it is something that is currently impacting nearly every facet of our lives. Gas prices continue to rise, grocery costs are through the roof, and everyday living expenses are taking more hard-earned money from our country’s workers than ever before. However, consumers are not the only ones feeling the effects. Costs and expenses of running a business have increased dramatically as well, and those in the federal contracting world are no exception. Questions from both contractors and contracting officers (CO) prompted the Department of Defense (DOD) release new guidance on May 25, 2022, conveying how it plans to handle inflation through economic price adjustments (EPA) as well as when the use of EPAs is appropriate. However, the guidance also discourages flexibility for increased costs based on inflation.
Continue readingDealing with Contract Alterations and Modifications Due to COVID-19
There are many questions facing contractors during this time of upheaval from the coronavirus and the impact on the federal government’s role buying from federal contractors. We’ll try to address as many of them as we can through our COVID-19 Contractors’ Toolkit.
One of the biggest questions is what can be done if the government modifies a contract, cancels work, or reschedules the performance of work. In that situation, it’s important to understand both the impacts on the prime contractor and any subcontractors.
Continue readingOMB 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.
Continue readingGAO Denies Protest to LPTA Solicitation Ridden with Cost Uncertainty and Local Zoning Code Conflicts
Federal agencies have long been afforded wide discretion in defining solicitation requirements to meet their contracting needs. But are a solicitation’s requirements acceptable even where they’re likely to conflict with local zoning codes? What about where the solicitation documents conflict with one another on whether certain requirements are considered “requirements” at all? And finally, is an LPTA procurement acceptable where such conflicts have undoubtedly led to price uncertainty among the bidders?
GAO says, “yes” to all of these, so long as the requirements meet the agency’s needs.
Continue reading5 Things You Should Know: Contract Claims (The Basics)
As a contractor, you strive to do the best job for the fairest price and to develop a good working relationship with the government. But in government contracts—like in any other—disputes sometimes arise. So what’s the best way to protect your interests under the contract?
Here are five things you should know about the basics of claims: