Bloomberg Government: How the Coronavirus Pandemic is Impacting Contractors

Federal agency guidance for contractors

“The Small Business Administration released guidance to address concerns that small businesses performing on federal contracts may have related to the impact of Covid-19…”

“Department of Defense issued guidance to contractors to work with their contracting officer to determine what is mission-essential and what can be accomplished remotely via telework…”

“Homeland Security Department sent a letter to contractors on March 6 addressing how to deal with contract employees working in DHS facilities…”What’s coming next?

Contract payments are likely to be stalled, not stopped.

“Payments to federal contractors by federal agencies are almost certainly going to be negatively impacted, but loss of payment is unlikely on existing agreements.”

“Contractors are advised to continue work unless a stop-work order is formally issued by the contracting officer.”

Expect telework supplies and services to spike.

“Telework at government agencies may bring increased information technology contract spending in order to secure data and networks and other technology required to work from home.”

“BGOV expects agencies to purchase products to aid telework, to include: virtual private networks (VPNs), remote desktop access, user authentication mechanisms, and more.”

“Use of telemedicine is likely to increase – on March 17, the Trump administration announced that Medicare beneficiaries can take advantage of telehealth at no additional cost. The Health and Human Services and Veterans Affairs departments may require additional IT products to fulfill this need.”

Classified site activity is likely to dip.

“Contractors with classified contracts may have trouble fulfilling requirements without access to a secure site. Possible solutions include: allowing contractors to work in an alternate secure location or delaying any additional work on those contracts. It’s unlikely that this work could be done remotely, even with additional technology…” Read the full article here.

Source: How the Coronavirus Pandemic is Impacting Contractors – Bloomberg Government.



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