Government Contracting Insights: Industry May Find Relief for Coronavirus Delays
In a commentary for National Defense Magainze, Covington & Burling LLP partners Susan Cassidy and Michael Wagner and associate Evan Sherwood discuss the FAR remedies available to federal contractors affected by the work delays and potential stoppages due to the coronavirus pandemic.
Specifically, they cite FAR 52.249-14 (cost reimbursement and time and material contracts), FAR 52.249-8 (fixed price supply and service contracts) and FAR 52.212-4 (commercial contracts). “All of these clauses share a common thread — a contractor should not be in default because of a failure to perform the contract if the failure arises from causes beyond the control and without the fault or negligence of the contractor.” These clauses specifically identify epidemics and quarantine conditions as factors outside a contractor’s control.
While the FAR won’t cover every cost, contractors may be eligible for schedule and compensation adjustments. Stop work orders could be compensable, as could the imposition of quarantine conditions under the FAR’s changes clause.
“Of course, any claim for a schedule or price adjustment will depend significantly on a case’s particular facts and circumstances,” they write. “However, where contractors find their performance delayed or disrupted by restrictions related to COVID-19, they should understand the potential recovery options available.”
