Dealing with Contract Alterations and Modifications Due to Changes in the Administration

There are many questions facing contractors during this time of change and disruption based on new initiatives from the Trump Administration and the impact on the federal government’s role buying from federal contractors.

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.

Here are some steps to take to deal with this type of situation. Depending on the facts at hand, it might make sense to perform these steps in the order listed. In other situations, it may be helpful to reach out first, get the temperature of the government and subcontractors, and then review the prime contract and subcontract. Changes to how contracts are managed is something that contractors have dealt with in other situations, and we’ve had recommendations on these types of issues in the context of government shutdowns and COVID-19 over the years.

Continue reading

Back to Basics: Similarly Situated Entities

If you are a small business government contractor who ever utilizes subcontractors to complete federal set-aside contracts, knowing what a “similarly situated entity” is for a given contract is vital to your success. So, let’s take it back to the basics of “similarly situated entities.”

Continue reading

Room for Improvement: GAO Reviews Agency Oversight of Small Business Subcontracting Plans

Recently, GAO published a report on small business subcontracting plan compliance, concluding that agency oversight of these plans need improvement.

Continue reading

Dealing 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 reading

GovConVoices: Prime Management Of Subcontracts: Will ASBCA Decision Affect DCAA’s “Obsession”?

The Armed Services Board of Contract Appeals recently dismissed a government claim that Lockheed Martin Integrated Systems, Inc. (LMIS), failed to comply with its prime contract terms by not adequately managing its subcontractors and therefore all subcontract costs (more than $100MM) were unallowable.

Although the government claim was directed at a large contractor, some of the amount in question, presumably, included invoiced amounts by small business subcontractors.  At least by implication, had the government prevailed, it could have resulted in requirements for prime contractors to become far more demanding and intrusive in terms of subcontractor documentation and/or access to subcontractor records.

Continue reading