Here are some important updates on help available for Government contractors.
Applying for All Possible SBA Loans
Hopefully, your company has already applied for all the loans and grants available to date, not only on the federal but state and county levels. In case you have not and you were stuck in a do-loop where your bank is not an SBA lender and other SBA lenders won’t take new clients, here is the largest SBA lender for you to go to: the Live Oak Bank. They are working through their PPP Applications and are willing to take on new customers, hopefully this week. Below is the link to get started with them: https://www.liveoakbank.com/paycheck-protection-program-sign-up/
The Federal Government is Spending More
A bit of good news – per our latest market updates, the federal government is spending more now than ever. That should bode well for the government contracting industry.
Vehicles to Keep Your Eye On
Here are some of the upcoming big vehicles that you may want to keep track of:
ASTRO, the General Services Administration’s new $90 billion-dollar contract, is aimed at consolidating and better coordinating the Pentagon’s wide-ranging vehicle-related expenses: https://www.bgov.com/core/news/#!/articles/Q82TA2DWX2Q2.
Also, some information on CIO-SP4 is here: https://www.bgov.com/core/news/#!/articles/Q884O7DWRGG4. OST is on the task force providing feedback to NIITAC on the draft solicitation, so let us know your thoughts so we could advocate for you by sending an email to email@example.com.
DoD Contractors: No Punishment for Contractor Delays
Additionally, some good news for DOD contractors: Pentagon won’t punish contractor delays. Current regulations can excuse delays beyond a contractor’s control and allow for “equitable adjustment” of schedules or payments to companies for difficulties caused by virus-related schedule slips, acting Pentagon Pricing and Contracting Director Kim Herrington said in a March 30 Memo: https://www.acq.osd.mil/dpap/policy/policyvault/Managing_Contracts_under_COVID-19_Memo_DPC.pdf
Download the list of Health Insurance Carriers that are providing premium relief, put together by the Capital Group here.
As of note, we are advocating for government contractors as Round 4 of the CARES Act. We expect things will move fast once the House reconvenes on 4/20.
OST is Advocating for You!
OST is a member of a government contractors advocacy group. We want to help ensure a consistent federal policy issued by OMB on implementing the recently issued statutes, and issue OMB implementing guidance that would help government contractors. Here are some examples of our recent communication with OMB:
- Fully endorse and support contractors teleworking or otherwise working remotely, and payment therewith, consistent with mission requirements, law, and Office of Personnel Management memorandum M-18-20, “Managing Federal Contract Performance Issues associated with the Novel Coronavirus (COVID-19)”
- Apply equally to contractor work conducted at government or contractor facilities or sites, whether they support unclassified or classified work
- Provide a fair cost reimbursement methodology that allows for reasonable direct and indirect costs and in-progress payments for work normally paid on a lump-sum basis
- Provide standard contract modification language, preferably made available within 15 days of issuance of OMB guidance, to maintain ready state (on-call) contractor capability, reflect dependencies on subcontractors and suppliers whose performance may be impaired by COVID-19, and adjust contract performance issues, including reductions in scope or schedule changes due to COVID-19
- Allow expedited consideration of extensions in periods of performance and adjustments in contract ceiling values to minimize unnecessary disruption in contract execution for the duration of the emergency
- Apply to contractor work done for all government agencies to the greatest extent practicable to promote consistency for existing and new work.
Finally, if you are in Maryland, Maryland PTAC has put together a resource page: https://www.mdptac.org/covid-19-resources.
Contact us to learn more.