Navy Issues Guidance Regarding Barriers to Contractors' Performance


The Department of the Navy leadership has noted the need to eliminate barriers impacting the performance of government contractors comprising the Defense Industrial Base. In a memo issued on 20 March 2020, the Navy's Acquisition Chief, "Hondo" Geurts, directed the Navy's System Commands (including NAVFAC, NAVSEA, NAVAIR, and MSC, among others) to implement steps to keep the Navy's defense industrial base from going into extremis during the COVID-19 crisis.

The direction to Agency contracting officers included steps to positively impact contractors' cash flow. Among the guidance was direction to reduce retainage and withholding on existing and new efforts to the absolute minimum necessary; pay all settled Requests for Equitable Adjustment immediately and resolve all outstanding REAs as quickly as possible; adjust inspection criteria to enable work to progress at a faster rate; accelerate negotiations when possible; and ensure government personnel required for inspections, acceptance, invoicing, and payment are available to perform their responsibilities.

All contractors providing support to the Navy should be aware of this guidance and discuss it with their Contracting Officer to eliminate any barriers being encountered.

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