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Tag: contractor

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.

 

 

 

More COVID-19 Guidance

Last week the Office of Management and Budget (OMB) updated its agency guidance for federal contractors, as a response to the COVID-19 pandemic. The three main takeaways are:

  • Agencies are encouraged to work with their contractors to allow for the maximization of telework.
  • Agencies must be flexible providing extensions to performance dates if working virtually isn’t possible or if a contractor must quarantine. Agencies should also weigh whether to keep key personnel in a mobile-ready state for national security measures.
  • Agencies are urged to leverage the special emergency procurement authorized in connection with the emergency declaration under the “Stafford Act”. These include increases to: the micro-purchase threshold; the simplified acquisition threshold; and the threshold for using simplified procedures for certain commercial items. These are designed to reduce discord for contractors, especially small businesses, allowing for a more rapid response to the increasing demands agencies face. (Nextgov, March 22, 2020)

The agency guidance comes after trade groups and lawmakers strongly voiced the need for contractor guidance. The updated guidance includes a section of frequently asked questions, including contractor exposure to COVID-19. (ibid)

OMB also issued technology guidance for use during the COVID-19 national emergency. The technology guidance also includes a FAQ section, with steps to ensure IT and cybersecurity measures are met while working remotely. It urges agencies to continue updating their websites to enable public access to government services.

Need some help figuring out OMBs agency guidance for contractors? Give us a call.

Phase 2: Resistance is Futile

Although we covered this last month, it’s worth another review  as GSA moves to phase two of the MAS consolidation.

As you know, GSA is merging the Multiple Award Schedule (MAS) program contracts from 24 different schedules into one. Notices of changes to terms and conditions for current contract holders under the MAS program should be received by contract holders in the coming months.

The consolidated schedule makes it simpler for the government to make purchases and will roll out in three parts:

  1. Creation of a new contract vehicle for all future acquisitions
  2. Bring current contract holders onto the new consolidated schedule
  3. Consolidate those businesses that have multiple contracts across many schedules(Federal Times January 31, 2020)

Terms and conditions are being standardized and all current contract holders and contractors, placed on the consolidated schedule, must respond to them by July 31, 2020. (ibid)

Questions about the consolidation and how you and your contracts are affected? Give us a call.

FAR 51 Deviation Authority is expired!

Here’s what you need to know.  Contracting officers were permitted to give contractors access to the Federal Supply Schedule (FSS) and GSA Global Supply Programs if appropriate, for the fulfillment of their agency requirements. They used the FAR 51 Deviation Authority vehicle for this purpose. On 23 October, the FAR 51 Deviation expired. It will no longer be used on orders placed after this date. Under Refresh 1, clause CI-FSS-056 Federal Acquisition Regulation (FAR) Part 51 Deviation Authority (Federal Supply Schedules) (Jan 2010) is deleted.

In lieu of FAR 51 Deviation, agencies may use Order Level Material (OLM) procedures to acquire other direct costs (OCDs) and material support items to meet specific order requirements. Additional information for OLMs may be found at www.gsa.gov/olm.

Many question if a contracting officer can issue a letter of authority (required by the Deviation) anytime during the life of the order, if the order or BPA was awarded on or before 23 October 2019. The short answer is yes, as long as the order was issued prior to the 23 October Deviation expiration date. However, if the BPA was awarded prior to then, and subsequent award terms were awarded after 23 October, those subsequent award terms may not use the deviation.

Wondering if you are grandfathered in and still able to take advantage of the FAR 51 Deviation Authority? Give us a call.

Game Planning, Not a Game

Federal News Network surveyed 100 or so government contractors during the final week of the shutdown about current contracted projects and expectations once the shutdown ended.

Not surprisingly, 71 percent said projects would be delayed and 40 percent believe it would take more than four weeks to get up to speed. Respondents also thought high costs would accrue during the re-start. Comments included the following:

  • Significant costs associated with re-start include rescheduled travel, reworked program plans, and employee hiring
  • Security clearance waits
  • Awaiting payment of invoices submitted before the shutdown
  • Permanent loss of employees to commercial firms due in part to fear of future shutdowns. (Federal News Network February 2019)

The Office of Management and Budget (OMB) requested that agencies move swiftly to pay contractors along with federal employees. However, agencies themselves are experiencing payment backlog, as several of the government’s invoice processing agencies had large portions of their own workforces furloughed. Before they returned, contractors’ unpaid invoices had been stacking up, awaiting formal acceptance and payment since 22 December 2018. (ibid)

We are hopeful that Congress passes legislation to make contractors ‘whole’ once future shutdowns ends, but we’re not holding our breath. Prudent contractors should plan for fiscal management upon another shutdown, possibly as early as 15 February.

Questions about your payments? We can try to help at 301-913-5000.