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Tag: billable hours

Government Contractor Aid

A recent study conducted by the National Defense Industrial Association (NDIA) found that over half of small business government contractors are losing money due to a reduction in billable hours as a direct result of stay-at-home orders. To assist, the DoD is adjusting approximately 1,500 contracts to aid with cash flow for those contractors suffering financial strain. (Federal News Network, March 30, 2020)

The Defense Contract Management Agency is administering a mass modification to increase the amount of money allowed to pay vendors who have not finished their work under their current contracts. These “progress payments” will be increased to 95 percent for small companies and 90 percent for large companies. (ibid)

Additionally, provisions for contractors that cannot telework due to the nature of their work were signed into law on 27 March 27 2020 under the Coronavirus Aid, Relief and Economic Security Act, aimed at supporting individuals and businesses struggling with the economic downturn,  as a result of the pandemic. (Government Executive, March 31, 2020)

For some contractors, agencies may “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 a contractor provides to keep its employees or subcontractors in a ready state” as stated under the Act. (ibid)

The National Defense Industrial Association and the Professional Services Council both commend the act. During the pandemic, the Act will assist in ensuring contractors are part of the economic relief efforts and kept in a ready state. The legislation runs through the end of the fiscal year, 30 September 2020.

Questions about your minimum billing rates or how to obtain reimbursement? Give us a call.

Logging Aint Just for Lumberjacks

Nearly half of all US states have had bills introduced requiring government contractors to use software for logging their workers’ activities in minute detail. This is according to the National Association of State Chief Information Officers (NASCIO). (Route Fifty, February 21, 2019)

Most of these bills necessitate contractors to install software that automatically verifies hours billed. New Jersey, Pennsylvania, and Rhode Island require software that takes a screenshot of the “state-funded” activity every three minutes\ and stores the data for seven years. Additionally, New Jersey and Pennsylvania proposals require logging keystroke and “mouse” event frequency. (ibid)

For the first time in over 15 years, NASCIO has weighed in and opposed the proposed bills. The NASCIO executive committee stated the bills do “not reflect the complexity necessary to protect data” and they are “highly prescriptive.” Furthermore, they say requirements in the bills pose “significant risks to citizen privacy and federal regulatory compliance concerns.” Meanwhile, TransparentBusiness supports the bills because they promise to “save your state tens of millions of dollars by simply requiring state contractors to provide transparent verification of billable hours.”(Route Fifty, February 21, 2019)

Not sure if and how you might be affected by the bills? Give us a call at phone: 301-913-5000 and we can explain.