Helping individuals, companies, and organizations understand key legal and practical considerations for promoting compliance and making better business decisions in these types of federal, state, and local government contracting matters MORE

Traditionally, a fixed price government contract is one in which the contractor absorbs the risks and costs of performance.  Absent an economic price adjustment (EPA) clause in the contract, an unforeseeable event, such as a force majeure, or government imposed contract change, the contractor is stuck with the benefit or lack of benefit of the particular contractual bargain. In a cost reimbursement contract, while actual allowable, allocable and reasonable costs will be captured and paid, any fee contemplated to address the risks of performing that commitment are typically low.

However, the current landscape is not a normal one.  It may be due to the COVID-19 pandemic sickness, restrictions and lockdowns, the war in Ukraine, China’s belt and road initiative, US spending of trillions of public dollars on entitlement programs, or something else, however, we see the impact in growing workforce, materials and product shortages.  Economic theory aside, we know that so long as there is a continuing demand for limited services and supplies inflation will continue to grow.  And, if price controls are instituted, they will not aid existing product shortages, and in fact may compound them.

Continue Reading Growing Issue of Inflation in Government Contracts Supply Chain Leads to DoD Clarification on Potential for Relief

Last year at this time, we reported on the prospect of a partial government shutdown due to Congress’s failure to enact appropriations legislation to fund all aspects of the government for Fiscal Year (FY) 2021. In that case, the bill was passed and life continued. This year the stakes are higher. Though Congress started early, preparing separate appropriations bills for FY 2022 this summer, they still have not been passed. In addition, we are seeing bills for higher levels of spending than in the previous years, since the spending limits set in the Obama-era Budget Control Act of FY 2011 have now ended.

Continue Reading So … Where Is The Money – We’ve Seen This Movie Before But The Stakes Are High

Previously we reported on President Trump’s Executive Orders banning U.S. nationals’ investment in designated Chinese companies that pose a threat to our national security under the International Emergency Economic Powers Act. Law360 reports that under that ban a total of 44 companies were designated as Communist Chinese Military Companies (CCMCs).  In addition, we reported on the implementation of requirements of the Federal government and its supply chain not to use or purchase designated Chinese telecommunications and video surveillance equipment and services due to the threats they pose to our national security.  Contractors are now required to report if they use or would deliver covered equipment or services and the agencies are directed not to buy from such contractors unless an exception or exemption applies.

Continue Reading President Expands Ban on Chinese Military-Industrial Complex Companies Based on Finding of Unusual and Extraordinary Threats – Actions to Address Cybersecurity and Supply Chain Risk Continuing

If you live on the East Coast and tried to get gasoline last week, you already know firsthand of the impacts that a cyber incident can wreck on the supply chain.  As a result of the Colonial Pipeline cyber incident, a ransomware attack that led to the six-day shutdown of a key pipeline for gasoline,

Numerous pieces of legislation and regulation have been issued in recent years to address the increased threats to the supply chain.  We previously reported on the various aspects of the Section 889 ban on the Government and government contractors’ use and delivery of covered Chinese telecommunications and video surveillance equipment, components and services, and the