HOUSE RELIEF PACKAGE WILL CHANGE, MAY BE DELAYED

The $3 trillion “relief” package expected voted on in the House Friday contains plenty of goodies for everyone.  Don’t expect it to ever see the light of day in its current form, however, as the measure has zero chance of being passed as is in the Senate.  Indeed, Senate leaders have expressed reluctance to pass any sort of additional spending bill related to coronavirus relief.  The most likely scenario, though, is that a new measure will pass, most likely before Memorial Day weekend, but that it will be more focused.  Expect more small business loans, aid to states and the District of Columbia, healthcare funding, and related appropriations.  While little of this money is directly targeted at large business contractors, there will still likely be provisions such contractors should note.  Enhanced telework requirements may mean that face-to-face discussions will be more difficult moving forward.  Hazard duty pay is also likely to be a part of the measure, though likely not for contractor personnel.  Money to stabilize small businesses, including those doing government business, will be an important feature.  That can be good news for larger companies that rely on small partners for certain federal work.  The largest impact of the relief bills will be felt in future years.  Someone is going to have pay for all of this “relief” in the form of increased payment on the federal debt.  That will likely reduce discretionary money available for contracting and other “business of government” operations for several years to come.  DOD, for one, is already preparing for such an eventuality.  Contractors should as well.