COVID-19 tips for contractors

      Small business federal contractors face challenges with the coronavirus (COVID-19) in their contracting relationships with government agencies, and with protecting their own employees and subcontractors, the larger community and their own health. As federal contractors

      What happens if performance is interrupted due to COVID-19? According to Covington & Burling LLP, three Federal Acquisition Regulation (FAR) clauses allow for excusable delays in the event of an "epidemic" or "quarantine restrictions." The FAR clauses are:

• FAR 52.249-14 (for cost reimbursement and time and material contracts),
• FAR 52.249-8 (for fixed price supply and service contracts), and
• FAR 52.212-4 (commercial contracts).

      In addition, FAR 52.243-1 and/or FAR 52.243-2 provide for obtaining an equitable adjustment for increased work.

      In a recent article, attorneys from Holland & Knight noted that when a contractor has an excusable delay under FAR 52.249-14, the government has the right to terminate for convenience.

      Also, under FAR 52.212-4, contractors must notify their contracting officer of the delay “as soon as it is reasonably possible” and mitigate any potential impact, Holland & Knight attorneys said.

      Holland & Knight offered this advice for dealing with COVID-19:

• Take inventory of your contracts and personnel and make an action plan to address contract demands and health and safety concerns;
• Document all wind-down and start-up costs. Create separate accounting categories.
• Consider employee reassignment, paid vacations and/or training;
• Document communications/actions;
• If performance is impossible, seek expense recovery as soon you can.

As employers

      PilieroMazza PLLC attorneys recently advised employers to establish a policy related to COVID-19. Update the policy regularly. The policy should:

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