What U.S. Government Contractors and Grant Recipients Need To Know About Terminations, Stop Work Orders, Tariffs, and the Path Forward in 2025
Client Alert | 1 min read | 02.07.25
On February 6, 2025, Crowell & Moring presented a webinar, "The New Normal: What U.S. Government Contractors and Grant Recipients Need to Know About Terminations, Stop Work Orders, Tariffs, and the Path Forward in 2025." In this webinar (available here), Crowell & Moring lawyers specializing in U.S. government contracts and grants addressed:
- Stop Work Orders
- De-Scoping Contracts and Grants
- Partial and Full Terminations for Convenience
- Non-Payment and Other Breaches
- The Impact of New Tariffs
Specifically, the discussion focused on potential government actions contractors and grant recipients can expect given recent developments, and the steps that contractors and grant recipients can take now to preserve their rights and protect the bottom line. This includes responding to and negotiating with government counterparties, providing notice where required, and thinking about cost recovery strategies.
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Recent sustain decisions by the U.S. Government Accountability Office (GAO) in Fluor Federal Solutions, LLC and Reliance Test & Technology send a clear message: when an agency tries to fix a Procurement Integrity Act (PIA) violation by committing a second one, the cure can be just as fatal as the disease. The cases involved the U.S. Air Force’s $1.8 billion procurement for O&M services at Elgin Air Force Base. During discussions, the Air Force inadvertently released a pricing overview slide with all offerors’ bottom-line evaluated costs to Reliance Test & Technology, which immediately notified the agency of the error. In response, the Air Force decided to level the playing field by providing the same information to all the other offerors in the procurement, stating, “[o]fferors may consider this disclosure in their [final proposal revision].”
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