03/12/2020
How to protect your business from Government shutdowns.
As Government contractors, both prime and subcontractors, must take proactive steps to protect themselves from unforeseen circumstances that will impact proposal awards, contract performance, supply chain maintenance, and subcontractor performance.
Proposals:
If you bid on a proposal and your agency has been closed you might have the right to amend your proposal price due to changes in the cost of materials, subcontractors costs, and other costs that might be impacted by the Government shutdown.
Note: The right of amendment might be limited so before a change is proposed seek approval from the Contracting Officers otherwise to your proposal might be rejected.
Contractors:
As a contractor the first think that you should look at is the terms of the contract with the Government to see what their obligations are in terms of notice, contract extension, and payment for work performed or supplies that have been ordered to support performance. Some of the clauses that you should look for include stop work order clauses, termination for convenience clauses, and suspension of work requirements. You need to know your rights.
As a prime contractor you need to be aware of what FAR flow-downs clauses have been imposed on the supplier/subcontractor and determine if you have an obligation to suspend performance, what the financial remuneration would be if a subcontract is suspended or terminated and what rights you have to protect your financial wellbeing.
Disputes:
Contractors will have the right to file a dispute against the Government in the event that you are not made whole for the impact to your business. Know your rights and protect yourself.
If you have questions, please email: [email protected] or call: 607-754-8100