OMB Issues a Memorandum Giving Guidance to Federal Government Contractors

The Memorandum issued on March 20, 2020 answers many questions contractors are facing due to the impact of COVID-19. The Office of Management and Budget (OMB) recognizes federal contractors play a vital role in helping agencies meet the critical response efforts of COVID-19 and are taking steps to help ensure their safety while providing continued contract performance wherever possible.

Table of Contents

A Summary of the Issues Addressed by the OMB for Federal Government Contractors


When consistent with contractual requirements, agencies are strongly encouraged to work with their contractors to evaluate and maximize telework for their contractor employees.


If contractor personnel must be quarantined due to exposure to the virus which results in the delay in the contract schedule you may be able to extend the contract. Government contracts provide for excusable delays, which may include quarantine restrictions due to exposure to COVID-19. Some other delay considerations to be aware of include:

  • Request for equitable adjustments will be considered on a case by case basis.
  • Whether work on a closed building is continued or halted will be considered on a case by case basis.
  • System for Award Management re-registrations expiring before May 17, 2020 will be afforded a one-time extension of 60 days.

Procurement Flexibilities

These include increases to the micro-purchase thresholds (raised to $20,000), the simplified acquisition threshold(raised to $750,000), and the threshold for using simplified procedures(raised to $13 million for purchases of commercial items).

Tracking Activities

The GSA has added a new National Interest Action Code to track the acquisition costs of federal agencies involved in the response to COVID-19.

Talk to your contracting officers and explore options to help you overcome any obstacles you may be running into as a result of COVID-19. Only they can give you an authorization for changes to your contract.

Other COVID-19 Resources

We are encouraging our Government Contractors to take advantage of the SBA and Maryland State relief programs. Here are some important links to assist you:

If you have any questions around the Memorandum or other business items that may be concerning you during this time please reach out to your KatzAbosch representative or contact us.

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