|
Federal Market Intelligence for Small Business |
|
|
|
|
Set-Aside Alert news analysis:Agencies offer guidance for contractorsKey issues: telework and ‘essential’ contract workersFederal agencies are stepping up their guidance to contractors during the COVID-19 pandemic with several key documents outlining policies on telework, essential critical infrastructure work and regulatory tools for reducing impacts on contractors. The agencies also are increasing communications and offering flexibilities and increased pay in some cases to assist contractors during this chaotic period. Even so, contractors are seeking more guidance on access to federal buildings, telework options, cybersecurity requirements and many other issues related to performing on federal contracts during the current emergency, while also dealing with stay-home orders from state and local authorities. “So here’s the rock and the hard place: contractor employees may not be able to telework if by doing so their company risks a ground for default termination because their system requirements were not compliant, but the employee may not be able to perform at the government site because the agency is restricting access due to COVID-19,” attorney James Fontana noted in a recent column at Washington Technology (https://bit.ly/39Dm62Y ). FEDERAL GUIDANCE REGARDING CONTRACTORS - KEY MEMOS Here is a timeline of four key federal agency guidelines for contractors during the COVID-19 emergency: March 20 - OMB Memo (https://bit.ly/2ypiAMO) The Office of Management and Budget’s Deputy Director Margaret Weichert releases a memo urging agencies to “evaluate and maximize telework for contractor employees, whenever possible.” But the memo did not provide details on how to make the evaluations. March 20 - DOD Memo (https://bit.ly/3dOjLFS) Ellen Lord, Under Secretary of Defense for Acquisition and Sustainment, issued a memo stating that the defense contractors in critical infrastructure industries were “essential critical infrastructure workers during the COVID-19 emergency.” “Companies aligned with the essential critical infrastructure workforce definition are expected to maintain their normal work schedules,” Lord wrote. She listed jobs that meet that definition as those including aerospace, mechanical and software engineers, manufacturing and production workers, IT support and security personnel, intelligence support, aircraft and weapons systems mechanics and maintainers, suppliers of medical supplies and pharmaceuticals and critical transportation. The jobs also include those within companies and their subcontractors who provide materials and services to DOD at its own facilities or at contractor facilities, she wrote. Workers who meet those definitions are “expected to keep their normal work schedules,” she added. Workers who aren’t considered essential include those providing office supplies, recreational support or lawn care, Lord wrote. March 28 - DHS CISA Memo (https://bit.ly/2X5jTLb) Christopher Krebs, director of the Homeland Security Dept.’s Cybersecurity and Infrastructure Security Agency (CISA) published the “Essential Critical Infrastructure Workforce Advisory List,” with guidelines on identifying essential critical infrastructure workers, including contractors. (Note: An earlier version of the guidance was released by CISA on March 19 at https://bit.ly/2yplkd4. CISA also released this version with updates https://bit.ly/39HCOOK) March 30- DOD Memo on regulatory tools (https://bit.ly/2JzkZXB) The memo by Kim Herrington acting principal director, Defense Contracting and Pricing, appears to be a response to recent industry calls to issue additional guidelines regarding use of equitable adjustments for contracts affected by the COVID-19 crisis. The memo states that contracting officers must strive to continue operations and achieve mission goals while also protecting the defense industrial base as much as possible. “Fortunately, we have the regulatory tools to take action to address these impacts,” Herrington wrote. The tools include:
The memo also publishes Section 3610 Federal Contractor Authorities of the “CARES Act” stimulus package approved by Congress in response to the COVID-19 pandemic. The section gives contracting officers discretion “to modify the terms and conditions of the contract to reimburse paid leave where contractor employees could not access work sites or telework but actions were needed to keep such employees in a ready state,” the memo summarizes. ADDITIONAL DOD GUIDANCE AND ACTIONS DOD progress payments On March 20, Defense Dept. officials issued a Class Deviation raising progress payment rates to 95%--up from 90%--for small business defense contractors. The goal is to improve cash flow during the COVID-19 emergency. Large businesses would receive a raise to 90%, up from 80%. Read the DOD memo at https://bit.ly/2x0cGS7. DOD 8(a) sole-source contracts DOD issued a Class Deviation on March 17 raising the threshold for which justifications and approvals are required for 8(a) sole-source contracts. Effective immediately, the threshold is $100 million, up from $22 million. For procurements valued at $100 million or less, contracting officers do not have to execute a justification and obtain approval for award of a sole source contract under the Small Business Administration’s 8(a) Business Development program. Read the memo at https://bit.ly/2JCDvhG. DOD telework memo On March 20, DOD officials in a memo said the same maximum telework flexibilities extended to DOD service members and civilians also are available to contractors “when contract services can be delivered, without mission degradation, while off-site.” Read the memo at https://bit.ly/39Gz3cu. Governmentwide Contingency Purchase Card Guidance The guidance was released on April 2 outlining flexibilities and thresholds for contingency purchasing related to COVID-19. Read the guidance at https://bit.ly/2X2DHyK. DCMA Commercial Item Determination for COVID-19 This Defense Contract Management Agency (DCMA) memo lists items that have been determined to be commercial items related to COVID-19. Read the memo at https://bit.ly/2X6H6wC. DOD Memo for the Defense Industrial Base The March 27 memo contains numerous Web links to basic DOD contracting information. Read it at https://bit.ly/3aGETvE. OTHER AGENCIES’ GUIDANCE March 24 - Update on NASA response to Coronavirus (https://go.nasa.gov/39M3Bd7) The memo outlines NASA policies and provides links, including a link to facility status at https://nasapeople.nasa.gov/coronavirus/coronavirus.htm. It also included a link to a NASA news release on work impacts of the coronavirus at https://go.nasa.gov/3bP9esd.
|
Washington Insider:
|
Copyright © 2020 Business Research Services Inc. All rights reserved.