Client Alerts & Newsletters

Government Relief From COVID-19 Impacts on Federal Contracts and Grants

Mar.23.2020

In the last several days, the federal government released a number of guidance documents designed to ease the impacts of COVID-19 on government contractors and grantees.  The guidance is summarized below:

Contractors:

  • DoD Progress Payments Increase to 90% for Large Businesses and 95% for Small Businesses under DFARS Clause.  On March 20, DoD issued guidance that raises the progress payment recovery rate from 80% to 90% for large businesses, and from 90% to 95% for small businesses.  The DoD memorandum requires Defense contracting officers to immediately use deviations for DFARS 252.232-7004 (DoD Progress Payment Rates) and FAR 52.232-16 (Progress Payments) permitting for these larger percentage progress payments.  Contractors should encourage Contracting Officers to amend their current contracts with these revised clauses in order to take advantage of these increases.
  • DoD Permits Maximum Telework Flexibility for Contractors.  On March 20, DoD issued guidance to Defense contracting officers to provide maximum telework flexibility for contractors.  Contracting officers should work with program managers and requirements owners to permit flexibility in a contractor’s place of performance without mission degradation.

USAID Awardees:

  • Crowell & Moring has published a blog post discussing extensive COVID-related guidance specifically for USAID.

OMB Guidance for Contractors and Federal Grant Recipients:

The entire Crowell team is standing ready to assist affected contractors and federal award recipients impacted by COVID-19.  We wish you continued good health.

For more information, please contact the professional(s) listed below, or your regular Crowell & Moring contact.

Jacinta Alves
Partner – Washington, D.C.
Phone: +1 202.624.2573
Email: jalves@crowell.com

Lorraine M. Campos
Partner – Washington, D.C.
Phone: +1 202.624.2786
Email: lcampos@crowell.com

Adelicia R. Cliffe
Partner – Washington, D.C.
Phone: +1 202.624.2816
Email: acliffe@crowell.com

John E. McCarthy Jr.
Partner – Washington, D.C.
Phone: +1 202.624.2579
Email: jmccarthy@crowell.com

Gail D. Zirkelbach
Partner – Los Angeles
Phone: +1 213.443.5549
Email: gzirkelbach@crowell.com

Judy Choi
Counsel – Washington, D.C.
Phone: +1 202.624.2954
Email: jchoi@crowell.com

Laura J. Mitchell Baker
Associate – Washington, D.C.
Phone: +1 202.624.2581
Email: lbaker@crowell.com

Stephanie L. Crawford
Associate – Washington, D.C.
Phone: +1 202.624.2811
Email: scrawford@crowell.com

Crowell & Moring LLP is an international law firm with more than 500 lawyers representing clients in litigation and arbitration, regulatory, and transactional matters. The firm is internationally recognized for its representation of Fortune 500 companies in high-stakes litigation, as well as its ongoing commitment to pro bono service and diversity. The firm has offices in Washington, DC, New York, Los Angeles, San Francisco, Orange County, London, and Brussels.

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