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

Client Alert | 2 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 | 11.21.25

A Sign of What’s to Come? Court Dismisses FCA Retaliation Complaint Based on Alleged Discriminatory Use of Federal Funding

On November 7, 2025, in Thornton v. National Academy of Sciences, No. 25-cv-2155, 2025 WL 3123732 (D.D.C. Nov. 7, 2025), the District Court for the District of Columbia dismissed a False Claims Act (FCA) retaliation complaint on the basis that the plaintiff’s allegations that he was fired after blowing the whistle on purported illegally discriminatory use of federal funding was not sufficient to support his FCA claim. This case appears to be one of the first filed, and subsequently dismissed, following Deputy Attorney General Todd Blanche’s announcement of the creation of the Civil Rights Fraud Initiative on May 19, 2025, which “strongly encourages” private individuals to file lawsuits under the FCA relating to purportedly discriminatory and illegal use of federal funding for diversity, equity, and inclusion (DEI) initiatives in violation of Executive Order 14173, Ending Illegal Discrimination and Restoring Merit-Based Opportunity (Jan. 21, 2025). In this case, the court dismissed the FCA retaliation claim and rejected the argument that an organization could violate the FCA merely by “engaging in discriminatory conduct while conducting a federally funded study.” The analysis in Thornton could be a sign of how forthcoming arguments of retaliation based on reporting allegedly fraudulent DEI activity will be analyzed in the future....