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Government Relief From COVID-19 Impacts on Federal Contracts and Grants

Client Alert | 1 min read | 03.23.20

In the last several days, the federal government released a number of guidance documents designed to ease the impacts of COVID-19 on government contractors and grantees.  The guidance is summarized below:

Contractors:

  • DoD Progress Payments Increase to 90% for Large Businesses and 95% for Small Businesses under DFARS Clause.  On March 20, DoD issued guidance that raises the progress payment recovery rate from 80% to 90% for large businesses, and from 90% to 95% for small businesses.  The DoD memorandum requires Defense contracting officers to immediately use deviations for DFARS 252.232-7004 (DoD Progress Payment Rates) and FAR 52.232-16 (Progress Payments) permitting for these larger percentage progress payments.  Contractors should encourage Contracting Officers to amend their current contracts with these revised clauses in order to take advantage of these increases.
  • DoD Permits Maximum Telework Flexibility for Contractors.  On March 20, DoD issued guidance to Defense contracting officers to provide maximum telework flexibility for contractors.  Contracting officers should work with program managers and requirements owners to permit flexibility in a contractor’s place of performance without mission degradation.

USAID Awardees:

  • Crowell & Moring has published a blog post discussing extensive COVID-related guidance specifically for USAID.

OMB Guidance for Contractors and Federal Grant Recipients:

The entire Crowell team is standing ready to assist affected contractors and federal award recipients impacted by COVID-19.  We wish you continued good health.

Insights

Client Alert | 3 min read | 04.14.26

DOJ’s False Claims Act Resolution Against IBM Signals Heightened Risk for Federal Contractors with DEI Programs

On Friday, April 10, 2026, the U.S. Department of Justice (DOJ) announced that International Business Machines Corporation (IBM) has agreed to pay just over $17 million to resolve allegations that it violated the False Claims Act (FCA) by failing to comply with federal anti-discrimination requirements incorporated into its federal contracts due to allegedly discriminatory diversity, equity, and inclusion (DEI) employment practices. This resolution marks the first FCA settlement secured by the DOJ under its Civil Rights Fraud Initiative, created in May 2025, and announced by then-Deputy Attorney General Todd Blanche as part of the administration’s coordinated efforts to target allegedly unlawful DEI practices. Per the agreement, the settlement is neither an admission of liability by IBM nor a concession by the United States that its claims are not well founded....