Guidance for Federal Contractors During COVID-19

By Elizabeth Sullivan

Last Update: April 8, 2020

Multiple documents have been issued – and expect more in the coming days – with guidance for agencies and contractors on how to operate with the disruptions from COVID-19. GSA launched a site consolidating the governmentwide guidance: https://www.acquisition.gov/coronavirus. Additional guidance can also be found here: https://www.gsa.gov/policy-regulations/policy/acquisition-policy/acquisition-policy-library#ClassDeviations.

Office of Management and Budget (OMB):

• Memorandum to the Heads of Executive Departments and Agencies on Managing Federal Contract Performance Issues Associated with the Novel Coronavirus (COVID-19) – Deputy Director for Management, Margaret Weichert

  • Agencies should be flexible in providing extensions to performance dates if telework or other flexible work solutions, such as virtual work environments, are not possible, or if a contractor is unable to perform in a timely manner due to quarantining, social distancing, or other COVID-19 related interruptions

• Harnessing Technology to Support Mission Continuity – Deputy Director for Management, Margaret Weichert

  • Administration directs that agencies utilize technology to the greatest extent practicable to support mission continuity

• Federal Agency Operational Alignment – Acting Director, Russell Vought

  • Agencies should communicate with customers regarding delaying transactions that are not time-critical

• Additional OMB guidance

Department of Defense (DoD):

• Section 3610 guidance and class deviation

• Managing Defense Contracts Impacts of the Novel Coronavirus

  • Acknowledges Section 3610 of CARES Act, reiterates existing performance delay clauses and states future guidance will be issued "as soon as practicable"

• Class Deviation – Progress Payment Rates – Kim Herrington, Acting Principal Director for Defense Pricing and Contracting

  • FAQ for implementation

  • Pentagon will temporarily increase the percentages paid to contractors, known as periodic progress payments

    • Increases the rate for contracts from 80% to 90% of incurred costs for large businesses

    • For small businesses the rate will go from 90% to 95%

• Defense Industrial Base Essential Critical Infrastructure Workforce – Under Secretary for Defense for Acquisition and Sustainment, Ellen Lord

  • If you work in a critical infrastructure industry, as defined by the Department of Homeland Security, you have a special responsibility to maintain your normal work schedule

  • The Essential Critical Infrastructure Workforce for the DIB includes workers who support the essential products and services required to meet national security commitments to the Federal Government and the U.S. Military

• Contract Place of Performance – Kim Herrington, Acting Principal Director for Defense Pricing and Contracting

  • DoD providing maximum telework flexibility for contractors

• Determining and Making Commercial Item Procurements to Respond to COVID-19

• DoD SmartPay3 – Increases thresholds for micropurchase agreements to $20,000 for inside the U.S. and $30,000 outside the U.S.

• More DoD guidance can be found here

Department of Homeland Security

• Letter to DHS contractors encouraging them to talk to their contracting officers if contract performance is impacted due to COVID-19

• Letter to DHS contractors on contract employees working in DHS facilities

• Guidance on the essential critical infrastructure workforce

• Letter to FEMA contractors regarding performance issues or delays due to COVID-19

General Services Administration (GSA):

• Class Deviation from the FAR – Provide for accelerated payments to small businesses and small business subcontractors

  • Accelerated payments to GSA small business contractors and subcontractors

• Policy Guidance for GSA Essential Critical Infrastructure with FAQ

• FAR & GSAR Class Deviation – Debarring Official Notification to Contractors

• Disaster Response Registry – Contractors can register in SAM with COVID-19 related capability statements and product offerings

Small Business Administration (SBA):

• FAQ for Small Business Contractors – Office of Government Contracting

  • Addresses potential performance interruptions, excusable delays and subcontractors

• Extension in filing semi-annual Individual Subcontracting Reports (ISR)

Additional Agencies:

• Navy Intent and Direction Withholds and Retentions During COVID-19 – Navy DIB guidance

• Office of Personnel Management (OPM) – Five memos around agency operations

  • Additional Office of Personnel Management guidance

• Environmental Protection Agency (EPA) FAQ for small business federal contractors

• USAID guidance for contractors on allowable costs around COVID-19

• NASA letter to contractors – More information can also be found here: https://nasapeople.nasa.gov/coronavirus/

• DLA Information for Suppliers – Contractors can report any issues related to COVID-1

Additional Resources:

• PilieroMazza did a webinar around COVID-19 impact for employers, and specifically federal contractors here. They also did a blog on additional agency guidance here.

• Guidance for grant recipients from Crowell & Moring