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ARTICLE · 16 MARCH 2020

Coronavirus And Its Implications For Government Contractors

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Coronavirus (COVID-19) is spreading throughout the globe at an accelerating pace, with the Center for Disease Control ("CDC") warning of an imminent outbreak in the United States.

United StatesGovernment, Public Sector
Scott Roybal
Scott Roybal
Laura A. Alexander
Laura A. Alexander
Matthew T. Lin
Matthew T. Lin
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Coronavirus (COVID-19) is spreading throughout the globe at an accelerating pace, with the Center for Disease Control ("CDC") warning of an imminent outbreak in the United States. The disease has already impacted the global economy. Fears of a coronavirus outbreak caused the largest one-week decline in the U.S. stock market since the 2008 financial crisis. The spread of coronavirus creates unique challenges for companies doing business with the government. Government contractors should anticipate the following issues:

Interruptions to Performance

Coronavirus may create difficulty for contractors to perform. The disease has created significant interruptions in global supply chains, and may soon decrease the availability of employees in the U.S. In addition to the risk to financial performance, the inability to perform on contractual obligations may cause reputational harm to government contractors, making it difficult for companies to do business with the government

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