{"id":900951,"date":"2023-03-15T15:53:58","date_gmt":"2023-03-15T21:53:58","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=900951"},"modified":"2023-03-15T15:54:01","modified_gmt":"2023-03-15T21:54:01","slug":"ndaa-section-822-allow-contractor-relief","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/ndaa-section-822-allow-contractor-relief\/","title":{"rendered":"NDAA Section 822 \u2013 Contractors Should Act Now to Seek Relief"},"content":{"rendered":"\n<p>Matthew J. Flynn and Sarah Sutton Osborne | <a href=\"https:\/\/www.buildsmartbradley.com\/2023\/03\/ndaa-section-822-contractors-should-act-now-to-seek-relief\/?utm_source=Bradley+Arant+Boult+Cummings+LLP+-+BuildSmart&amp;utm_campaign=bfd8b0e5da-RSS_EMAIL_CAMPAIGN&amp;utm_medium=email&amp;utm_term=0_b504caf31b-bfd8b0e5da-78863422\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">BuildSmart<\/a><\/p>\n\n\n\n<p>On December 23, 2022, President Joseph R. Biden signed into law the 2023 National Defense Authorization Act (NDAA) as\u00a0<a href=\"https:\/\/www.congress.gov\/bill\/117th-congress\/house-bill\/7776\/text\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Public Law No. 117-7776<\/a>, which included Section 822: \u201cModification of Contracts to Provide Extraordinary Relief Due to Inflation Impacts.\u201d This section temporarily gives new discretionary authority to the secretary of defense to modify firm fixed-price (FFP) contracts to provide monetary relief to affected contractors and subcontractors. This new authority is specifically aimed at helping contractors where costs are outpacing price due solely to economic inflation.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><strong>Who is eligible?<\/strong><\/h5>\n\n\n\n<p>Section 822 is available to both prime contractors and subcontractors across all Department of Defense (DoD) agencies. Prime contractors may seek a contract adjustment for themselves and their subcontractors. If a prime is unable or unwilling to request an adjustment for a subcontractor, then the subcontractor may seek relief directly from the government.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><strong>What should contractors do right now?<\/strong><\/h5>\n\n\n\n<p>Because this new authority to provide relief is set to expire on December 31, 2023, contractors should waste no time in assessing their eligibility.Contractors who believe that they may be eligible should begin preparing and cataloging documentation that shows how they were affected \u201cdue solely to economic inflation.\u201d<\/p>\n\n\n\n<p>During this process, contractors should \u201caccount only for the actual cost of performing such eligible contract or such eligible subcontract, but may account for indirect costs of performance, as the Secretary of Defense determines appropriate.\u201d<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><strong>When will we know more?<\/strong><\/h5>\n\n\n\n<p>Further guidance is expected from DoD \u2014 specifically from the under secretary of defense for Acquisition and Sustainment \u2014 by March 23, 2023.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><strong>Other changes<\/strong><\/h5>\n\n\n\n<p>Section 822 also amended threshold requirements for certain adjustments. Under the new law, the threshold for approval of any adjustment was raised from $50,000 to $500,000 and the congressional notification threshold was raised from $25 million to $150 million.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h5>\n\n\n\n<p>The implementation of Section 822 has the potential to provide much needed relief to DoD contractors. To receive the relief that they are eligible for under the law, contractors must be diligent in complying with all of the requirements of Section 822 as they are implemented by DoD. Because the window for submission will be so short, time is of the essence. Bradley continues to monitor, assess, and advise on all aspects of the implementation of Public Law No. 117-7776, especially Section 822.<\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<p><strong>When one of your cases is in need of a construction expert, estimates, insurance appraisal or umpire services in defect or insurance disputes &#8211; please call Advise &amp; Consult, Inc. at 888.684.8305, or email <a href=\"mailto:experts@adviseandconsult.net\" target=\"_blank\" rel=\"noreferrer noopener\">experts@adviseandconsult.net<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Matthew J. Flynn and Sarah Sutton Osborne | BuildSmart On December 23, 2022, President Joseph R. Biden signed into law the 2023 National Defense Authorization Act (NDAA) as\u00a0Public Law No. 117-7776, which included Section 822: \u201cModification of Contracts to Provide Extraordinary Relief Due to Inflation Impacts.\u201d This section temporarily gives new discretionary authority to the&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/ndaa-section-822-allow-contractor-relief\/\">Continue reading <span class=\"screen-reader-text\">NDAA Section 822 \u2013 Contractors Should Act Now to Seek Relief<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[14],"tags":[9895,11860,11859],"class_list":["post-900951","post","type-post","status-publish","format-standard","hentry","category-construction-2","tag-advise-consult","tag-firm-fixed-price-contracts-2","tag-ndaa-section-822","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>NDAA Section 822 \u2013 Contractors Should Act Now to Seek Relief - Advise &amp; 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