Raising the Roofs . . . and Floors: Acquisition Thresholds in the Time of Emergency

As many contractors have heard, the President declared a state of emergency under the Stafford Act. What will this mean for acquisitions conducted while the COVID-19 emergency continues?

In this post, I’ll dig into some contractor-specific effects of that declaration: modifying the micro-purchase, simplified acquisition, and commercial purchase acquisition thresholds.

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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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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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GAO Finds that FEMA Reasonably Evaluated Stafford Act Set-Aside Eligibility

You’ve likely heard of small business set-asides, SDVOSB set-asides, 8(a) Program set-asides, HUBZone set-asides, and other set-aside categories regulated, for the most part, by the Small Business Administration. But have you ever heard of a Stafford Act set-aside?

If not, you might want to keep reading about GAO’s recent analysis where it assessed whether the awardee was eligible for the Stafford Act set-aside.

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