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CARES ACT – MANAGING DEFENSE CONTRACTS IMPACTS OF THE NOVEL CORONAVIRUS

The DoD DPC memo acknowledges that contractors can request equitable adjustments for contractual issues related to COVID-19.  DPC indicates more implementation instructions are forthcoming but this is a first step to reassure our industrial base.  As is normal, DPC indicates this is a case-by-case basis.

 It is really important that businesses communicate with their KO, keep good notes including dates, names of people they talked or emailed, and as much as possible to communicate via email for evidence.  You should communicate with the KO as soon as you think you might experience a situation different than what existed when you negotiated/bid on the contract.  You should partner with the KO to get authority to deliver late and try to negotiate a revised delivery schedule, extension, or revised costs.  There are likely cases where your subcontractor shuts down and you need to change subs or need to ship from a more expensive location.  If businesses don’t get a response from their KO, they should email the agency Small Business Representatives for help getting the KO’s attention.

From: Bova, Regina M CIV OSD OUSD A-S (USA) <regina.m.bova.civ@mail.mil>
Sent: Monday, March 30, 2020 7:33 PM
Cc: Pelkey, Michael F CIV OSD OUSD A-S (USA) <michael.f.pelkey.civ@mail.mil>
Subject: Managing Defense Contracts Impacts of the Novel Coronavirus

 Sir/Ma’am,

 On behalf of the Principal Director, Defense Pricing and Contracting (DPC), the following is an information release regarding the subject memorandum:

 In light of the ongoing pandemic and spread of COVID-19, this memorandum informs the contracting community of relevant guidance, regulation, and laws in place to assist contracting officers to make the appropriate adjustments to each contract on a case-by-case basis to ensure the health and security of each contractor working with the Department of Defense and the Defense Industrial Base, while also maintaining productivity and readiness in the mission to support the warfighter. For more information, please see the memorandum at the links below.

 Policy Vault:

https://www.acq.osd.mil/dpap/ops/policy_vault.html

 Memorandum:

https://www.acq.osd.mil/dpap/policy/policyvault/Managing_Contracts_under_COVID-19_Memo_DPC.pdf

 DPC COVID-19 Guidance Page:

https://www.acq.osd.mil/dpap/pacc/cc/COVID-19.html

 Very respectfully,

 Regina M. Bova

OUSD(A&S)

Defense Pricing and Contracting (DPC)

Pentagon 3B938

regina.m.bova.civ@mail.mil

www.acq.osd.mil/dpap/

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