$2 trillion stimulus bill gives contractors some relief but falls short on added costs

$2 trillion stimulus bill gives contractors some relief but falls short on added costs

March 27, 2020, Federal Computer Week

Susan Cassidy spoke with Federal Computer Week about the concerns of defense contractors under the coronavirus relief package. According to Ms. Cassidy, equitable adjustments aren't necessarily a guarantee and require a mutual agreement between the contractor and government as well as quantifiable proof the costs have increased due to the changing environment and need to be covered. “If [DOD] can bring the DPA in and start using that more effectively, there's a lot they can do to help companies. It's really a tool that the government hasn't implemented yet, and I'm not entirely sure why.”

But there could be some relief under DPA, she said, because the government is able to assert itself as a top buyer from commercial companies, and it's easier to buy using that legal authority than it is for the Stafford Act, which gives grants to state governments and not-for-profit organizations, which can then contract out for goods and services, she adds.