Government contractors are facing a host of legal and compliance challenges following President Trump’s recent executive orders. These orders have prompted government-wide contract reviews, funding issues, increased scrutiny on foreign assistance agreements, and the mass issuance of stop work orders and terminations for convenience. If you are a government contractor, here are some key questions you should be asking to ensure your business is protected. If any of these FAQs apply to your business, consulting legal counsel promptly can help you mitigate risks and protect your contractual rights.
- What should I do if my invoices are not being paid due to contract reviews or funding issues?
- Are my invoices fully documented and compliant with contract terms?
- How long has my invoice been pending payment from the Agency?
- Can I file a claim under the Contract Disputes Act (CDA)? If I do, does interest accrue?
- How can I escalate my claim without jeopardizing future government work?
- If my contract is terminated for convenience or I receive a stop work order, what rights do I have?
- Can I formally reserve my right to challenge the termination or stop work order?
- What type of costs can I recover under these circumstances?
- How do I ensure my documentation supports a potential claim?
- How long do I have to submit a request for adjustment/termination for convenience proposal?
- How can I mitigate financial losses due to a stop work order or contract termination?
- What immediate steps should I take to minimize additional costs?
- Can I negotiate with subcontractors to reduce liability?
- Are there specific FAR provisions that allow me to recover mitigation costs?
- What costs are allowable under a stop work order or termination for convenience settlement?
- Which direct and indirect costs can I claim?
- How do I calculate overhead and administrative expenses for reimbursement?
- What settlement expenses can I include in my claim?
- Are any forms required by the Agency to support certain costs?
- If my termination was suddenly rescinded or converted to a partial termination or descope, what rights do I have?
- Can I still go after costs from date of termination up until rescission or conversion?
- What if I cannot refill all positions or remobilize?
- Does a partial termination entitle me to recovery of costs?
- Is there a benefit to filing claims sooner rather than later?
- What are the risks of delaying a claim submission?
- What documentation should I have in place before filing a claim?
- After a stop work order is lifted, when should I submit a request for adjustment?
- How does timing impact my ability to access the Judgment Fund?
- Am I in compliance with recent executive orders?
- Do I need to update company policies?
- Could I be subject to a government audit?
- What steps should I take now to ensure compliance?
- Am I at a risk of a false claims violation if I am not in compliance?
- How should I prepare for the Department of Government Efficiency (DOGE) contract review?
- Could my contracts be at risk for modification or cancellation?
- How can I demonstrate compliance with federal regulations?
- What proactive steps should I take to protect my business?
- How should I respond to foreign assistance review surveys and data calls from government agencies?
- What information am I required to provide?
- How do I ensure my responses align with contractual obligations?
- Should I be concerned about disclosing sensitive or proprietary information?
- How do new tariffs and trade restrictions impact my government contracts?
- When should I notify my contracting officer of potential tariffs?
- Will I be reimbursed for increased costs due to new tariffs?
- What options do I have for mitigating supply chain disruptions due to new trade restrictions?
- Are there contract clauses that allow me to adjust pricing based on tariff changes?
- What steps should I take to ensure compliance with Buy American and other sourcing requirements?
Conclusion
If any of these questions resonate with you, it may be time to seek legal guidance. Addressing these issues early can help you avoid costly mistakes, protect your rights, and ensure compliance with evolving government mandates.
