Government Contracting Blog

Last week the United States Office of Management and Budget (OMB) provided guidance to federal contractors regarding payment for contractors that have been impacted by coronavirus. Contractors that have received stop work orders or other delays may now be eligible for continued payment under OMB Memorandum M-20-18 and Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). Section 3610 of the CARES Act, which we covered in a previous blog, provides further clarification under the following section of the act entitled “Federal Contractor Authority.” This section of the act states that Contracting Officers have the granted authority to continue paying contractors in order to maintain employment for contractor personnel, even if the contract is subject to a stop work order or other delay. 

On Friday, March 27th, President Trump signed a historic $2 Trillion Dollar Coronavirus aid package into law. This legislation, otherwise known as the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), will provide emergency relief to several groups including individuals, small businesses, large corporations, public health facilities, state and local governments, and education institutions. The CARES Act provides the largest emergency stimulus package in United States history as a result of bipartisan legislation negotiated by Democrats and Republicans to provide an immediate response to the growing COVID-19 crisis sweeping the nation.

As the COVID-19 virus continues to spread across the globe, the United States government turns to GSA Schedule contractors to help prevent, contain, combat, and recover from the effects of the Coronavirus. Because of the large variety of products and services offered through the GSA Multiple Award Schedule, there are multiple opportunities for contractors to assist government agencies in fighting this growing pandemic. Particularly, companies and organizations with 3D printing capabilities can address one of the most important and immediate needs to fight the Coronavirus outbreak: protective gear. 3D printing has been recommended as a solution to the mask supply shortage, and GSA recently sent an email asking GSA contractors to respond with any 3D printing capabilities that can be used to address the COVID-19 relief efforts.

As the nation battles the coronavirus pandemic, the government has stepped in and spending has risen at the federal, local, and state levels. Always one of the government’s primary procurement vehicles, the GSA Schedule contracts become especially important during national emergencies because of the Disaster Recovery purchasing which can be added to contracts.

The first case of Coronavirus in West Virginia occurred on Tuesday, March 17th, meaning the virus has now impacted all 50 states. With the number of confirmed cases of COVID-19 climbing in the United States, President Donald Trump announced Wednesday afternoon that his administration is ramping up its response to the virus through invoking the Defense Product Act. President Trump said the following in response to invoking the Defense Product Act, “It can do a lot of good things, if we need it, and we will have it all completed, signing it in just a little while.”

As the Coronavirus continues to surge, federal, state, and local governments are working to respond in a timely manner to reach those most susceptible to the disease and slow the spread. While social distancing is something that we all can do as individuals to respond to the crisis, it’s important to note how federal contractors come into the mix. We’ve mentioned how the General Services Administration can prepare for the pandemic and how contractors can best come to the aid of state and local governments through the Disaster Purchasing Program. Now that the military is starting to be called to contain the coronavirus, it’s crucial to consider how defense contracts will play the situation surrounding COVID-19. Enter DPAS. The Defense Priorities and Allocations System (DPAS) is used to prioritize national defense-related contracts/orders throughout the U.S. supply chain in order to support military, energy, homeland security, emergency preparedness, and critical infrastructure requirements. We’ve broken down DPAS to show you how it applies to you as a defense contractor.