While some industries grapple with slowdowns, many government contractors in Rhode Island and elsewhere have geared up during the pandemic. From military and intelligence tasks to supporting Federal Emergency Management Agency’s coordination of the response to COVID-19 – the work of contractors is vital. Contracts from federal and state governments remain in force, and work continues as government partners try to help them succeed. Yet what lies ahead for contractors remains uncertain as challenges related to the health crisis continue to arise.
Government agencies, recognizing the need for essential work to continue, have taken extraordinary steps to guide contractors on policies and procedures. The government activated contingency plans to help people work virtually wherever possible. While this helps existing contractors, many new contracts are delayed 30 or 60 days because of health concerns and competing priorities. This can cause cash-flow challenges for companies that need to keep employees in place and ready to go while awaiting new contracts to take effect.
First-time government contractors may also face challenges. A ventilator manufacturer might be asked for five times its normal production, but may not have the capital and personnel necessary to ramp up, while also navigating federal contracting requirements. While companies want to help, there may be obstacles for those without federal contracting experience.
In this rapidly changing environment, contractors should be in direct communication with contracting officers. Many – including the U.S. Army Office of Small Business Programs, the Defense Intelligence Agency and the U.S. Special Operations Command – post daily updates.
Companies should consider their workers’ health and welfare, including physical and emotional well-being. They also should assess how long they can sustain a virtual work environment and its impact on company performance, as well as the associated costs. While payments to contractors are predetermined, contracting officers may be able to modify payments due to unforeseen COVID-19-related expenses. Some contractors are facing supply-chain difficulties without any recourse. But looking ahead, those depending on a single supplier should identify backups.
COVID-19 has also added urgency to cybersecurity needs. Companies are relying on digital connections now more than ever, and cybercriminals are looking for security lapses and openings. Just one attack can wipe out a business’s assets and reputation. Smaller companies are especially vulnerable. Existing industry standards can help mitigate some cybersecurity risks; any prime contractor or subcontractor who wishes to be part of the federal supply chain must be in compliance with the National Institute of Standards and Technology’s NIST SP 800-171 Cybersecurity Framework, a set of recommended requirements for protecting the confidentiality of controlled unclassified information.
Contractors need to communicate with their contracting officers, along with their accountants, attorneys and bankers – specialists in working with government clients. Now is the time for contractors to discuss contingencies about cash flows, installation changes, access to facilities and federal stimulus money.
Contractors have supported military operations in Afghanistan and Iraq and have navigated earthquakes and hurricanes, sequestration and government shutdowns. Mission success often depends on adapting to unforeseen obstacles. Government contractors are good at this because they’ve always done it. Using their experience coupled with the counsel of their partners, government contractors will survive and thrive through this crisis, too.
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TAKING CHANCES: Bank of America Corp. Senior Vice President and Relationship Manager Amy Walsh says young people should not shy away from things they don’t like, and should be willing to take those challenges on. / PBN PHOTO/KATE WHITNEY LUCEY[/caption]
