WASHINGTON -- The U.S. Army is working aggressively to mitigate the effects of COVID-19 on its industrial base partners, including both large and small businesses, and is using creative contracting measures to ensure maximum operational flexibility and financial stability.

“The health of our industrial base is vital to maintain readiness, protect the force and win the war on COVID-19,” said Dr. Bruce D. Jette, Assistant Secretary of the Army for Acquisition, Logistics and Technology. “We moved quickly to alert the entire Army contracting community of the need for flexibility and speed in contracting.”

The following policy alerts were sent to the 8,000-member Army contracting workforce in response to COVID-19. Effective immediately:

  • Contractors will are the same maximum telework flexibilities as DoD service members and civilians.
  • Under Defense Pricing and Contracting class deviation, progress payment rates are increased to 90 percent for large businesses, and 95 percent for small businesses, providing an increased cash flow.
  • Contractors with new federal contracts providing COVID-19 relief efforts are exempt from all affirmative action obligations and other obligations from March 17 to June 17, 2020, per notification from the U.S. Department of Labor's Office of Federal Contract Compliance Programs. This exemption may be extended.
  • Thresholds are increased for micro-purchases and simplified acquisitions, as provided by the Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. 5121-5207 (the "Stafford Act").

For more information, contact Mr. Matthew Ociepka, matthew.c.ociepka.civ@mail.mil or 571-228-8213.