Government Contracts Partner Eric Crusius was quoted in a Federal News Network
article about new guidance from the Department of Defense (DoD) on how to continue to pay contractors even if they cannot work during the COVID-19 crisis. The DoD released a memo and set of frequently asked questions outlining how the government can modify contracts to ensure vendor employees are paid, and the Office the Director of National Intelligence released a similar memo for contractors working for intelligence agencies. Mr. Crusius commented on the positive effects of the memo for clients.
"This memo is a wonderful permission slip for contracting officer to see. They know if they have the funds available, they can pay contractors, so it's a double win because it's keeping contractors on ready state and keep[ing] firms from going under," he said. "As I'm speaking with clients, there are some employees who can't work, so that is impacting their profits and their cash flow. Certainly big companies that do cleared work will be impacted, as will companies that work onsite doing services like cleaning offices."
READ: DoD, ODNI Sign 'Permission Slips' to Keep Contractors Viable Through the Pandemic