How Does the National State of Emergency Affect Federal Contracting?

President Trump’s declaration of a national emergency due to COVID-19 creates some changes in the world of government contracting. While a lot of things are in flux these days, here are a few things you need to know about how federal contracts are impacted:

  • The Presidential Emergency Declaration due to the global pandemic means that set-aside requirements do NOT apply
  • FAR 18.2 puts in place Emergency Acquisition Flexibilities including raising the micro-purchase threshold from $10,000 to $20,000 and raising the simplified acquisition threshold from $250,000 to $750,000
  • 8(a) firms can voluntarily suspend their 8(a) status, allowing them to take full advantage of their status later when markets are active
  • Codes in the Federal Procurement Data System (FPDS) to track COVID-19-related purchasing
  • Defense Production Act (DPA) and Defense Priorities and Allocations System (DPAS) implement priority ratings

Here’s a link to an article with more details from Koprince Law: http://smallgovcon.com/covid-19/president-invokes-stafford-act-what-that-means-for-federal-contractors/. Also, our partners at Govology (https://govology.com/) held a great webinar with Joshua Frank of RSM Federal that goes into these changes in detail. Contact your local PTAC advisor for a code to get free access to this and other Govology webinars.