Georgia Tech Procurement Assistance Center

Federal contractors may be able to recover costs caused by the government shutdown

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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/

What to expect during a government shutdown: Submitting bids, getting paid, and more

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Background

Federal agencies receive funding through a series of appropriations bills. A number of these bills — including those that fund the Department of Defense, the Department of Health and Human Services and the Department of Education — have been approved for the federal fiscal year that began October 1st.  As a result, those agencies are not being affected by the partial shutdown of the federal government.

Agencies Affected

However, appropriations bills that support other agencies — including the Department of Homeland Security, the Justice Department, the Department of Agriculture, the Department of Transportation, the Department of Commerce, the State Department, the Interior Department, the Commerce Department, and the Department of Housing & Urban Development — have expired.  These nine departments are directly affected by the shutdown, although some units within these departments remain open because they are funded by money that is not subject to congressional appropriations, or their services are deemed “essential,” or because they can operate with what is known as “carryover funding.”

The shutdown has special implications for federal contractors, including vendors competing for federal contracts.  The contracting offices of the agencies affected by the shutdown may be closed.  In some cases, these agencies have issued stop-work orders to their contractors.  Listed below are details.

Should vendors submit bids during a government shutdown?
Some government contractors could go unpaid even after the shutdown ends 
Employers can’t use E-Verify system during shutdown
What vendors learned from the last government shutdown
Signs point to extended shutdown with no deal emerging quickly

Shutdown advice for contractors: If a stop-work order comes, stop work

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Congress’s progress on its 12 annual spending bills for fiscal 2019 means “we’re in pretty good shape ” for funding federal agencies, David Berteau, president and CEO of the 400-member Professional Services Council, told his contractor members in a webinar last Wednesday.

Congressional appropriators have reported all spending bills from committee, with a half-dozen approved by full chambers, Berteau noted, lawmakers’ most productive pace in 12 or 13 years. But with only 11 legislative days left before the fiscal year ends Sept. 30, there is a “slim chance” of all 12 getting through conference or a major negotiated omnibus deal, which is why it is “prudent” for agencies and contractors to prepare for the possibility of a lapse in appropriations. Getting all the bills signed by Oct. 1 “is subject to a lot of decisions affected by both votes and politics,” Berteau said.

“The reason we [present preparation guidance for our members] is not to predict a [shutdown]–we hope there is no government shutdown,” added Alan Chvotkin, PSC’s executive vice president and counsel, but because reacting to agency closures “is an arcane area.”

Keep reading this article at: https://www.govexec.com/contracting/2018/08/shutdown-advice-contractors-if-stop-work-order-comes-stop-work/150578/

The next gov’t shutdown: How contractors can prepare

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Congress’ short-term spending bill signed on Jan. 22, 2018 ended the nearly three-day government shutdown. As this spending bill only appropriated funding for government operations for three weeks, however, and does not resolve the underlying political disputes, it is unlikely to put an end to shutdown politics for good, or even for long.

Participants in the federal market would be wise to review the issues and challenges presented by shutdowns in order to remain prepared for what may come.

What Activities Can Continue During a Shutdown?

During a shutdown, federal contractors must determine whether they may continue performing. A government shutdown is not a self-executing stop-work order; a shutdown itself does not suspend a company’s obligations to perform or the government’s obligation to pay for performance. What matters is whether a contractor’s work requires any new appropriation or authorization of spending, and whether critical government personnel, facilities, and resources are available.

Keep reading this article at: http://www.mondaq.com/article.asp?articleid=666774

Also see DoD’s Jan. 18, 2018 Shutdown Guidance (Jan. 18 2018) at: https://www.defense.gov/Portals/1/Documents/pubs/GUIDANCE-FOR-CONTINUATION-OF-OPERATIONS-DURING-A-LAPSE-OF-APPROPRIATIONS.pdf,

5 things contractors need to know during a shutdown

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If the federal government closes its doors on Oct. 1, it won’t be like past shutdowns for one big reason: contractors.

“The 2013 shutdown was different than every other shutdown that had come before it,” said John Cooney, a former counsel for the Office of Management and Budget and current partner at Venable LLP. “Many more government services are delivered through contracts, they’ve been outsourced. There are just that many more functions that are delivered externally and that complicates everything.”

Professional Services Council - PSCCooney was part of a Sept. 21 Professional Services Council panel that spoke on how to prepare for a government shutdown.

And as the threat of a shutdown looms large on Oct. 1, many in Washington are harkening back to their 2013 recollections of the last government closure.

Keep reading this article at: http://www.federaltimes.com/story/government/acquisition/contracts/2015/09/23/5-things-contractors-need-know-during-shutdown/72677568/

For more information, visit PSC’s shutdown resource page.

For more information on managing during a government shutdown, see: http://gtpac.org/2013/10/02/how-to-manage-a-federal-contract-during-the-government-shutdown/

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