Insights

In Fortis Industries, Inc., CBCA 7967 (Sept. 18, 2024), the Civilian Board of Contract Appeals (CBCA) denied in part the government’s motion for partial summary judgment on the issue of whether the contractor released its claims by signing a modification terminating the contract for convenience. During contract performance, the General Services Administration (GSA) imposed monthly deductions to contract payments as a response to certain performance issues. GSA later proposed to terminate the contract for convenience and sent a contract modification stating that all obligations under the contract were concluded except payment for work performed in June 2022. The contractor signed the modification but stated in its transmittal email that it was owed payment for services in May 2022 as well. 

In Chugach Federal Solutions, Inc., ASBCA Nos. 62712, et al., the Armed Services Board of Contract Appeals held that a contractor could recover its costs for having to quarantine personnel in accordance with government-imposed COVID safety requirements, because the underlying contract contemplated that the contractor would be compensated for complying with any changes to health and safety requirements.

The Armed Services Board of Contract Appeals (Board) recently issued notable reminders to contractors regarding its jurisdictional authority and the importance of timely filing claims.  The Board explained in DSME Construction Co., Ltd., ASBCA 63878 (July 30, 2024), that it may retain jurisdiction over a dispute even when a different forum is listed in the contract.  In Platinum Services., Inc., ASBCA No. 63878 (Aug. 1, 2024), the Board instructed contractors to be mindful of the CDA’s statute of limitations period, even when seeking to amicably resolve a dispute.

Crowell & Moring is pleased to announce the launch of our Government Contracts Breakfast Series. All of the sessions will be held in Northern Virginia and focus on issues most important to government contractors. Our January session is described below. When performing government contracts, contractors frequently experience performance challenges such as delays; increased performance costs attributable to government action; costs resulting from government-initiated contract termination; and costs of remediating certain environmental pollution and toxic tort litigation. Each of these add time or additional expense for which the government may have a legal obligation to pay. Join us as we discuss the process of filings claims and REAs, including a discussion of formal and informal dispute resolution under government contracts. We will provide a CLE certificate of attendance and other materials to use in seeking continuing education credits. Registration begins at 8:00 am.

Prime contractors and their subcontractors often find themselves in disputes based on the actions of the contracting agency. Join this event as a panel of experts discuss sponsored claims, and share their insights for prime contractors and subcontractors performing work on federal projects who are faced with the prospect of litigating a sponsored claim. They will discuss some of the unique issues associated with sponsored claims, and ways to navigate and mitigate those risks. This is a program no prime or sub should miss!

For nearly 6 months, the Coronavirus pandemic has caused disruptions across nearly all industrial sectors, including the government contracting industry.  As contractors have attempted to respond to challenges in providing support to government customers, meeting contract and staffing requirements, and adhering to contract terms and a constantly shifting landscape, Congress provided an additional avenue of relief to certain contractors dealing with COVID-19 related impacts.  Section 3610 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provided assistance in connection with certain disruptions in contractor performance arising from the COVID-19 pandemic.  Now, as the Government fiscal year draws to a close, many contractors are considering whether and when to submit potential Claims and REAs – including Claims and REAs triggered in part by COVID-19 related issues – and how best to position themselves to recover schedule and cost impacts triggered by COVID and non-COVID related causes.

The Coronavirus pandemic continues to cause disruptions across nearly all industrial sectors, including the government contracting industry. As contractors attempt to respond to challenges in providing support to government customers, meeting contract and staffing requirements, and adhering to contract terms and a constantly shifting landscape, Congress has provided an additional avenue of relief to certain contractors dealing with COVID-19 related impacts. On March 27, Congress passed the COVID-19 Stimulus Law. Section 3610 of the legislation provides assistance in connection with contractor employees that (1) cannot perform work on certain sites during the COVID-19 pandemic and (2) cannot telework because their job duties cannot be performed remotely.

The COVID-19 Pandemic continues to cause disruptions across nearly all industrial sectors, including the government contracting industry.  As contractors attempt to respond to challenges in providing support to government customers, meeting contract and staffing requirements, and adhering to contract terms and a flurry of new federal, state and local directives, companies should be aware of how to minimize disruptions, preserve their rights, and avoid bad practices that could increase post-pandemic legal risk.  

This week's special edition is an extended dialogue about the Board’s recent application of the Sovereign Acts Doctrine to requests for recovery of cost resulting from Government-imposed COVID restrictions. In addition to discussing the recent decisions, host Skye Mathieson provides perspective on lessons learned and the broader implications of these decisions and the Sovereign Acts Doctrine.  Crowell & Moring's "Fastest 5 Minutes" is a biweekly podcast that provides a brief summary of significant government contracts legal and regulatory developments that no government contracts lawyer or executive should be without.