Tracking Shutdown Costs Now Will Determine What You Can Recover Later

Government Contracts attorneys Jeremy Burkhart, Gregory Hallmark and Angela Jimenez were featured in an article published in Washington Technology and NextGov recapping a webinar they led with the National Contract Management Association (NCMA) on how federal contractors can best manage the government shutdown. The article focused on their comments regarding tracking shutdown-related costs and the potential for recovering them once the shutdown concludes. Mr. Burkhart emphasized that companies "need to track everything [they're] doing," and the attorneys recommended steps such as establishing a cost-tracking system and sending all required notices to the contracting officer, even if they are furloughed. Ms. Jimenez added that recording costs in a separate stop-work account will ease documentation and also make it clear that the costs stem from a stop-work order.

The speakers reminded attendees that the government will only reimburse costs it deems reasonable, so businesses should be prepared to defend their decisions with documentation and data. Contractors should also compile and submit equitable adjustment requests in the applicable timeline and channel.

"You would need to show the math and itemized expenses and provide supporting documentation for your supporting cost," Ms. Jimenez said.

Mr. Hallmark additionally highlighted Anti-Deficiency Act prohibitions against voluntary work, or work that continues after funding lapses. The law establishes criteria for emergency work that can continue without appropriation, and contractors who violate it will likely not get reimbursed.

"Unless your contract is included within one of these excepted activities, this is probably performance of improper voluntary services and you have to know that there's a good chance you're doing this at risk, there's a good chance you're not going to get paid," he said.

READ: Tracking Shutdown Costs Now Will Determine What You Can Recover Later