Events

Virtually all federal prime contractors and subcontractors have experienced delays, performance disruptions and increased costs due to federal, state and local government restrictions. In non-pandemic times, the contractor would proceed under one of the “remedy granting clauses” in the contract (e.g., the Changes clause, the Stop Work Order clause) in order to recover costs incurred by the event(s) and establish a revised schedule for contract performance. That process is initiated with the submission of a Request for Equitable Adjustment or “REA.” This course will explain what information should be included in a REA submission and why. You will see that the devil is in the details from your accounting system. Throughout this baseline explanation, Mr. Dempsey will provide suggestions on drafting and negotiating the REA based on his experiences.

The COVID-19 pandemic has inserted specific variables that must be addressed when the REA is based on the impacts caused by the government’s response to the pandemic. A “COVID-19 REA” involves unique details and recovery complexities that must be addressed. Among other things, a “COVID-19 REA” should identify the timeframes of the performance impact identified in relevant Agency guidelines, the Families First Coronavirus Response Act (“FFCRA”) and the ‘‘Coronavirus Aid, Relief, and Economic Security Act’’ (“CARES Act”). In addition, a COVID-19 REA should identify any means by which the contractor mitigated the negative impact on costs – such as funds received from the CARES Act Paycheck Protection Program or refundable tax credits made available from the FFCRA emergency paid leave provisions.