cost reimbursement | The Contracting Education Academy

October 2, 2020 By cs

DoD explains how contractors will get reimbursed for COVID expenses — if Congress cuts a check

With lawmakers and the White House unable to come to an agreement on a new coronavirus stimulus package, it’s unlikely that money requested to reimburse defense contractors for pandemic-related expenses will reach these companies until at least the second quarter of 2021, according to the Pentagon’s top weapons buyer.

Ellen Lord, defense undersecretary for acquisition and sustainment, laid out the reimbursement process. She said it would take the Pentagon five to six months to distribute those funds after they are approved by Congress.

“Then we want to look at all of the proposals at once,” Lord said at a recent Defense News Conference. “It isn’t going to be a first in, first out, and we have to rationalize using the rules we’ve put in place what would be reimbursable and what’s not.”

Lord estimated that the tab for defense contractors’ pandemic expenses from March 15 to Sept. 15 would come to “between $10 and $20 billion.”

Keep reading this article at: https://www.defenseone.com/business/2020/09/dod-explains-how-contractors-will-get-reimbursed-covid-expenses-if-congress-cuts-check/168344/

May 5, 2020 By cs

Navy hoping to keep some acquisition momentum during COVID-19

The Navy says the way it is procuring goods and services during the COVID-19 outbreak may help quicken acquisitions later on during the crisis and keep programs on target for whenever it ends.

Speaking at the recent virtual Sea Air Space Conference, Navy acquisition chief James Geurts said the service is injecting money into the acquisition system to keep companies liquid with cash so they can stay afloat. The Navy is also speeding up contract awards.

“We are going to apply all the things we’ve learned during this to accelerate during the recovery phase because ships still need to come out on time,” Geurts said. “We’ve got to do the maintenance, we’ve got to continue to supply lethal capabilities to our sailors and marines and we can’t afford to lag the recovery.”

Geurts said he does not foresee the crisis affecting the Navy’s priorities after things return to normal. The Navy still wants at least 350 ships and it wants to field its Columbia-class submarine. The trick is keeping everything on schedule or close to it through the coronavirus outbreak.

“What’s important is that we don’t let the delay and disruption carry any further than it has to into the execution of our programs,” Geurts said. “There will be delay and disruption. The program teams have looked hard into where we were prior to this crisis so we can separate issues we had going in from issues caused by the crisis.”

Keep reading this article at: https://federalnewsnetwork.com/navy/2020/04/navy-hoping-to-keep-some-acquisition-momentum-during-covid-19/

The Contracting Education Academy at Georgia Tech has established a webpage where all contract-related developments related to the coronavirus (COVID-19) are summarized. Find the page at: https://contractingacademy.gatech.edu/coronavirus-information-for-contracting-officers-and-contractors/

May 1, 2020 By cs

DoD expects three month acquisition delays, billions in payouts to contractors

The Defense Department will suffer serious setbacks on developing weapons and pay companies billions of dollars in relief funds as a result of COVID-19.

The Pentagon expects a three-month delay across the board for major acquisition programs, putting a kink in systems like the Ford Class Aircraft Carrier, the Columbia Class Ballistics Missile Submarine and the Next Generation Operational Control System.

“Particularly, we see a slowdown in the shipyards,” Ellen Lord, defense undersecretary for acquisition and sustainment, told reporters Monday at the Pentagon. “Aviation is the most highly impacted sector that we have. Right now there isn’t any specific COVID penalty that we see for a specific program; however, we do anticipate a three-month slowdown in terms of execution.”

Lord said DoD is now starting to look at key procurement milestones that may be impacted by the delays.

Meanwhile, DoD is just beginning to take into account the amount of money in relief funds it will have to pay out to companies unable to do government work because of the coronavirus.

Keep reading this article at: https://federalnewsnetwork.com/defense-main/2020/04/dod-expects-three-month-acquisition-delays-billions-in-payouts-to-contractors/

April 21, 2020 By cs

OMB releases guidance to clarify coronavirus relief act’s contracting provisions

On Friday, April 17 the Trump administration released guidance to clarify how and when agencies can reimburse contractors as outlined in the recently enacted novel coronavirus economic relief legislation.

**Click on image above to download OMB Memorandum M-20-22.**

The Office of Management and Budget published a memo to supplement Section 3610 of the $2.2 trillion CARES Act, which allows federal agencies to use their funds to give contractors sick or paid leave during the pandemic if they are not able to access their worksites or telework. Although the administration advised agencies to “maximize telework” for contractors, that is not possible for many contractor jobs, including some involving sensitive or classified work. Trade associations that represent federal contractors previously welcomed this provision, but then asked for more clarification.

For applicable contractors, agencies can “modify the terms and conditions of a contract, or other agreement” to “reimburse at the minimum applicable contract billing rates” up to an “average of 40 hours per week [for] any paid leave (including sick leave) a contractor provides to keep its employees or subcontractors in a ready state,” according to the legislation. The new guidance says agencies can use their funds to reimburse contractors from the period of March 27 (when the CARE Act was signed) to September 30, 2020. Initially, the bill did not give a start date.

Additionally, the Office of Federal Procurement Policy within OMB “has developed [the] guidance to help agencies make rational business decisions that balance the need for contractor resiliency with the need for good stewardship,” Michael Wooten, OFPP administrator, told Government Executive on Friday. This includes being mindful of the challenges small businesses face and helping contractors secure the correct documentation they need for reimbursement.

Keep reading this article at: https://www.nextgov.com/cio-briefing/2020/04/trump-administration-releases-guidance-clarify-coronavirus-relief-acts-contracting-provisions/164729/

August 12, 2016 By AMK

GAO sustains protests of $17.5 billion DISA contract

Encore III, a controversial contract before the Defense Department began soliciting bids from industry to purchase up to $17.5 billion in IT services, received its strongest rebuke yet – this time from the Government Accountability Office.

The contract supports the department’s Joint Information Environment, a massive IT modernization project to globally connect the military services and defense agencies to supply “information on demand,” as the RFP states.

GAO announced last week it upheld pre-award bid protests from contractors CACI and Booz Allen Hamilton on grounds that the Defense Information Systems Agency (DISA) – the Pentagon’s IT arm – failed on two grounds “to provide a reasonable basis for comparing the cost of competing proposals.”

Keep reading this article at: http://www.nextgov.com/defense/2016/08/gao-sustains-bid-protests-175-billion-disa-contract/130519

The Navy says the way it is procuring goods and services during the COVID-19 outbreak may help quicken acquisitions later on during the crisis and keep programs on target for whenever it ends.

The Defense Department will suffer serious setbacks on developing weapons and pay companies billions of dollars in relief funds as a result of COVID-19.

On Friday, April 17 the Trump administration released guidance to clarify how and when agencies can reimburse contractors as outlined in the recently enacted novel coronavirus economic relief legislation.

Encore III, a controversial contract before the Defense Department began soliciting bids from industry to purchase up to $17.5 billion in IT services, received its strongest rebuke yet – this time from the Government Accountability Office.

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