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.

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.”

If your company would like to do business with the Government, one initial question you may have is how to find Government contract opportunities that exist within the federal, state, and local marketplace. While finding opportunities may be fairly simple process, you should consider the following: Who is my ideal Government customer? What are my differentiators? What is my go-to-market strategy? After determining the answers to those important questions, your company should be able to capitalize on the myriad of opportunities that Government agencies at the local, state, and federal level offer to commercial vendors.

There are many ways for your business to sell to the federal government, one of which includes holding your own GSA Schedule contract. A common alternative to holding your own GSA Schedule contract is to sell your products to the government through a reseller. Many companies choose this approach for a myriad of reasons including: when a company does not have the internal resources to support a GSA Schedule contract, or if a company does not qualify directly for a GSA Schedule contract. Regardless of the reason, many small businesses build a successful federal sales practice through partnerships with companies that act as resellers to the government.

In April 2019, the Small Business Administration (SBA) released a plan to enact revised size standards for small businesses. According to the SBA, a size standard is usually defined by the number of employees or average annual receipts and represents the largest size that a business, including subsidiaries and affiliates, may be to remain classified as a small business for SBA and federal contract programs. In 2010, the United States Congress passed the Small Business Jobs Act (Jobs Act) which requires the SBA to review all size standards every five years. Under the Jobs Act, the SBA is also required to adjust to reflect market conditions as needed, including inflation.