OMB Issues a Memorandum Giving Guidance to Federal Government Contractors March 27, 2020The 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.A Summary of the Issues Addressed by the OMB for Federal Government ContractorsTelecommuting When consistent with contractual requirements, agencies are strongly encouraged to work with their contractors to evaluate and maximize telework for their contractor employees.DelaysIf 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 FlexibilitiesThese 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 ActivitiesThe 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 ResourcesWe are encouraging our Government Contractors to take advantage of the SBA and Maryland State relief programs. Here are some important links to assist you:Small Business Administration Relief SiteKatzAbosch COVID-19 Resource CenterKatzAbosch’s Summary of Available Federal and State ProgramsKatzAbosch’s Government Contracting Accounting ServicesIf 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.About KatzAbosch: Founded in 1969, KatzAbosch is one of the largest CPA and business consulting services in the Mid-Atlantic region. As an accounting firm, our mission is to provide the highest quality accounting, tax, financial and management consulting services to our regional clients. We understand the needs and challenges of our clients and we have made it our obligation to create, grow and protect asset value. KatzAbosch is consistently named a Best Accounting Firm to Work For in Accounting Today and has been named a Top 200 Accounting Firms in the Nation by Inside Public Accounting. Our firm is also ranked among the Top 15 Largest Accounting Firms in the Baltimore Area by the Baltimore Business Journal and a Top Workplace four times by The Baltimore Sun.