How do Inclement Weather and Extra Holiday Federal Closings Impact Federal Contractors Working at Government Sites?

December 21st, 2009 | Posted by Donna Dominguez

Federal contractors potentially have two unplanned Federal government closings impacting their business this month.  Federal agencies in the Washington, DC, area are closed today, December 21, 2009, due to inclement weather.  Therefore, federal non-emergency employees (including employees on pre-approved leave) will be granted excused absence for the number of hours they were scheduled to work.  In addition, President Obama issued Executive Order 15323, closing all executive branch departments and Agencies at midday on Christmas Eve (Thursday, December 24, 2009).

If you are a Federal Contractor with employees working on Federal Government sites, what do these closings mean to you?

Considerations:

1. What is stated in the contractor’s individual contract clauses regarding Holiday/Leave?
2. Are the employees covered under the Service Contract Act (SCA)?
3. Did your Contracting Officer (CO) issue a modification permitting invoicing for the unplanned holiday or federal closings?
4. What are the Contractor’s own leave and pay policies?

Possible outcomes:

1. Check the Holiday/Leave clauses in your contracts to see if they address handling of this situation.
2.  Additional paid holidays and federal closings may qualify as a fringe benefit for SCA Health & Welfare benefit calculation.
3. Check with your COs to request contract modification allowing invoicing for extra holiday and closing. Under Department of State’s DOSAR 652.237-72 “Observance of Legal Holidays and Administrative Leave” – a contract is allowed to be reimbursed all direct and indirect cost less any fee.
4. Follow the contractor leave and pay policies for holiday, federal closings or paid time off.

There is no single solution or easy answer to these issues.  The affected employees may: 1.) work at an alternate location, if available, 2.) take the day off as leave with pay, or 3.) are paid an extra holiday.  The extra holiday pay is an allowable fringe cost.

Please post any questions or comments or contact Donna Dominguez, Government Contracts Consultant at 301-231-6200 ext 6726 or ddominguez@aronsoncompany.com.

Tags: closing, Executive Order, Holiday

This entry was posted on Monday, December 21st, 2009 at 11:52 am and is filed under General, Region - DC, Region - MD, Region - VA. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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