CARES Funds Available For Contractors

The Office of Management and Budget (OMB) recently published a supplement to Section 3610 of the CARES Act that allows contractors sick or paid time-off during the national emergency if contractors are not able to access their worksites or telework. (Government Executive, April 17, 2020)

At this time, maximizing telework is advised; however, many contractor jobs involve sensitive and/or classified work, making telework not feasible. Trade associations realized this pretty quickly and asked for additional clarification of the Act. For these specific contractors, agencies are allowed to “modify the terms and conditions of a contract, or other agreement to reimburse at the minimum applicable contract billing rates up to an average of 40 hours per week for any paid leave (including sick leave) a contractor provides to keep its employees or subcontractors in a ready state.”

In addition to the paid leave/sick leave clarification, the updated guidance allows agencies to reimburse contractors from the 27 March (when the CARE Act was signed) through 30 September 2020. The original bill did not include a start date. (ibid)

OMB, via the Office of Federal Procurement Policy, developed a guide to assist agencies when working with contractors to ensure the correct documentation is submitted for proper reimbursement. (ibid)

Don’t know where to start the process of getting paid during this national emergency? Give us a call.

 

 

 

HHS Did What?

The Department of Health and Human Services Program Support Center (PSC) has decided to end assisted acquisition services. Some agencies under the PSC umbrella include: the Office of Personnel Management, the Office of Special counsel, the Environmental Protection Agency, and the Defense Department (DoD).  (DoD accounts for roughly $1 billion of the $1.4 billion total contract amount under the PSC.) (Federal News Network, July 22, 2019)

It appears HHS stopped offering assisted acquisition services in mid June, just as agencies are preparing for fourth quarter acquisitions. This likely includes the $150 million multiple-award contract PSC was about to award for EPA along with a number of “in-process” contracts for DoD. Additionally, any award for the prior four years must be moved to other agencies or absorbed by the “home” agency by September 20, 2020. (ibid)

So why exactly did HHS decide to stop its assisted acquisition services? In a memo to the civilian agency customers, they said they do not have the internal controls, policies, or procedures necessary. DoD customers received a comparable memo. (ibid)

Why now? Possibly due to the manner in which PSC has handled classified information for DoD and other agencies’ procurements through the self-certification process. The self-certification process is achieved through the DD-254 form. However, a recent audit found that PSC does not actually perform classified work. (ibid)

Unfortunately, this abrupt change is putting a burden on many agencies. Since the decision was made and will affect the fourth-quarter spending, agencies must now scramble to get other assisted acquisition service provider help. The decision also affects vendors, who spend time and money to bid on solicitations that must restart. And the question remains: will vendors lose work from existing contract awards that they bid on and won?

Roughly one-third of all federal spending occurs in the fourth quarter, with one-quarter of the spending in September. Administrators plan to meet with member companies, DoD ,and the Office of Federal Procurement Policy to arrive at  a game plan going forward. (Federal News Network, July 22, 2019)

Will this affect a bid you are working on or a recent contract award? If so, give us a call.