The authors provide a roadmap for contractors to consider to recoup costs stemming from the COVID-19 pandemic.

Does the mere existence of a deadly epidemic entitle a contractor to monetary relief when it experiences cost increases stemming from that epidemic? Not without government direction, ruled the U.S. Court of Appeals for the Federal Circuit in affirming a decision of the Civilian Board of Contract Appeals (“CBCA”) in Pernix Serka JV.

The facts of Pernix Serka are striking: A contractor repeatedly requests guidance for dealing with a major health crisis, the government refuses to provide guidance, and the contractor is unable to recoup the additional costs it incurs in order to proceed with performance because the government provided no guidance.

Originally published in the September 2021 issue of Pratt’s Government Contracting Law Report (Vol. 7, No. 9).