What Veteran Business Owners Should Know about Government Contracting during the Covid-19 Crisis

PAYROLL RELIEF

Section 3610 of the Act provides payroll relief for government contractors, who may be reimbursed for expenses associated with providing paid leave to qualifying employees and subcontractors.

Employees and subcontractors qualify when:

·     They are unable to perform work on federal government facilities due to public health emergency restrictions; and

·     Their duties cannot be performed remotely by teleworking.

Reimbursement is limited to the minimum billing rates stated in the contract, not exceeding an average of 40 hours per week, including sick leave. Section 3610 of the Act sunsets on 9/20/20.

SPEEDY PROCUREMENTS

The Act also addresses an increased use of Other Transaction Authorities (OTAs), which can help contractors speedily secure procurements. OTAs traditionally give the Department of Defense the ability to move forward with certain prototype and research projects without going through the traditional acquisition process, which can take years. (10 U.S.C. § 2371b).

The Act extends the Department of Health and Human Service’s ability to use OTAs, and it removes some spending caps on their use with other agencies. “Agencies have also sped up the use of other contract vehicles, such as blanket purchase agreements, which allow agencies to purchase supplies or services through an established contractor for repetitive needs,” Jerry McGinn, executive director at George Mason University’ Center for Government Contracting, said in a Washington Business Journal article. “We’ve seen lots of quick churn, 24-hour responses on BPAs and other funding opportunities where the agencies are looking to get things immediately on contract.”