The current government shutdown is now the longest in U.S. history, and many federal contractors are incurring costs as a result of shutdown-related work stoppages and delays. Luckily, many federal contracts contain clauses that provide a potential avenue for recovery of such costs. Further, there are practical steps that contractors can take to increase their chances of recovering shutdown-related costs from the government.
What contract clauses might apply?
Several Federal Acquisition Regulation (FAR) clauses, including the following ones, could provide contractors with an avenue to recover costs incurred as a result of shutdown-related delays or work stoppages:
- FAR 52.242-14 (Suspension of Work)
- FAR 52.242-15 (Stop Work Order)
- FAR 52.242-17 (Government Delay of Work)
- FAR 52.243-2 (Changes – Cost-Reimbursement)
- FAR 52.243-3 (Changes – Time-and-Materials or Labor-Hours)
It is very important to note that these clauses generally impose very short timeframes in which a contractor must provide the government with notice and/or assert its right to an adjustment.
Keep reading this article at: https://www.jdsupra.com/legalnews/federal-contractors-may-be-able-to-53396/