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Administration Weighs In (Again) on Contractor Contingency Planning

Client Alert | 1 min read | 10.05.12

On September 28, the White House released guidance to clarify the allowability of liability and litigation costs associated with WARN Act compliance, supplementing the Department of Labor's July 30 guidance on the same subject. The White House guidance advised that, if (1) sequestration occurs and an agency terminates or modifies a contract that necessitates that the contractor order a plant closing or mass layoff of a type subject to WARN Act requirements, and (2) that contractor has followed a course of action consistent with DOL guidance, then any resulting employee compensation costs for WARN Act liability as determined by a court, as well as attorneys' fees and other litigation costs (irrespective of litigation outcome), would qualify as allowable costs and be covered by the contracting agency, if otherwise reasonable and allocable."


Insights

Client Alert | 2 min read | 07.24.26

GAO Finds That Challenge to Agency’s Failure to Comply With DFARS Requirement Comes Too Late

GAO’s recent dismissal of the protest in Tyonek Technical Innovations, LLC, B-424364, B-424364.2, June 30, 2026, carries an important lesson for government contractors: if you believe solicitation terms conflict with a statute or regulation, you must raise that challenge before proposals are due—not during discussions or afterwards....