Your place to discuss the latest in Virginia construction law news and notes about the industry; both commercial and government construction.
Friday, October 11, 2013
Testimony Transcripts: Discoverable or Required to be Bought from the Court Report?
Sometimes facts in a case suggest the need to evaluate prior deposition or trial testimony. Does that make related transcripts subject to discovery production requests? Recently, Magistrate Judge Pamela Meade Sargent (Abingdon) said no, ruling instead that counsel needed to purchase a copy of the transcript from the court reporter who transcribed the testimony. This is certainly a win for court reporters who make part of their livings from transcript copies. It also relieves producing parties from the burden of copying and producing the transcripts. Whether other courts will follow Magistrate Judge Sargent remains to be seen.
Sunday, October 6, 2013
The Federal Goverment is Shut Down . . . Now What?
A seemingly simple proposition often misunderstood is that
during a Government shutdown contracts remain in force; not all do. Therefore, the first
and most important thing to do in determining shutdown implications is to
review your contract. The second most important thing to do is to follow all
applicable administrative requirements, including respecting required
notices. Communication, both internally
and externally, is critical.
Some additional specific considerations for Government contractors as the current shutdown continues include
the following:
Pre-FY 2013 Funded Contracts: These contracts should
not be shut down; however, it would be good to confirm with the Contracting
Officer that performance is to continue. Payments may be delayed, and this should
result in interest payments under the Prompt Payment Act. You are generally
obligated to perform work even if payment is delayed; however, if payment delay
is excessive and you are unable to perform because of that you should consider
making an administrative claim, providing notice to the Contracting Officer. Please note that even with this, though, reducing
or stopping work may not be contractually allowed. Keep a cash flow record to
justify any reduction or stoppage.
FY 2013 Funded Contracts: For contracts where work
has already been funded, or if revolving funds are available, work may
continue. If the Contracting Officer provides a shutdown notice though,
promptly stop work and track any cost impact. Continued work without approval will
likely be considered volunteer work and not be paid for. As with other adverse
administrative actions, notice and otherwise following adjustment and claim
processes are required, including notices. Communication with the Contracting
Officer is critical. But communication
with lower tiers is also critical, including notices to them to stop work or
deliveries. Additionally, consider any security requirements that may apply /
be affected.
Fixed Priced Contracts: These contracts are generally
funded at the time of award, and can include fixed price task orders; however,
beware of unfunded change orders and task orders. Performing them without
approval / funding will also likely be considered volunteer work and not paid
for. As with the above, both external
and internal communication is critical.
Cost Type Contracts: Typically these contracts are
funded only in part as the work progresses, and are subject to limitation on
funds clauses. Do not continue to work if it is not funded (see above), provide
notice to the Contracting Officer (see above), and communicate both externally
and internally (see above and below). Similar rules apply to Time and Material
(T&M) contracts.
Supply Contracts: Products may be subject to changed
delivery and payment terms. Make sure to advise your vendors. Communication
with them and the Government is critical.
Service Contracts: Make sure you know where your
employees are located. They might find that they do not have access to Government
facilities during the shutdown. Unless advised not to report to work,
employers may be liable to pay the employee with no reimbursement from the Government.
Also, if an employee is on official travel, employers may need to order them to
return or stay in place for a short time until further information is
available. Employees on leave, vacation or sick leave should probably stay on
that status if they were assigned to a shutdown contract. However, if the
employees are covered by a Collective Bargaining Agreement (CBA), the CBA might
govern how employers must treat their employees. Employers may be
required to bargain or discuss shutdown changes with the union under federal
labor law or the terms of the CBA.
Employees: Attempt to mitigate costs by work reassignments.
Consider vacation or leave as that may not be classified as voluntary work, and
may be compensable after the shutdown ends. Some workers may need to be on
"stand by" to perform emergency services, such as maintenance of an
IT system. If employers need to furlough employees they should first verify
applicable laws and regulations of the jurisdiction in which the work is
performed; especially California and New York. Under the federal Fair
Labor Standards Act (FLSA), if non-exempt employees perform any work during the
shutdown (whether from their homes, cars, or any worksite) then employers are
required to pay those non-exempt employees at their regular rates, for all time
they actually work, even though the Government may never reimburse the company.
For salaried, exempt employees, if those employees work any part of any week
(e.g. a few hours on the first day of the Government shutdown), then employers
are required to pay them their entire, fixed salary for that entire week.
Depending on state or local law, the terms of any applicable CBA, and/or company
policy or practice, employers may be able to require employees to use their
available, paid vacation or other paid leave for full or partial days of the Government
shutdown.
Federal Employees: Determine if you need a federal
employee to approve the work, payment, accept deliveries, provide access,
information, or other reasons. If the contract is not shut down try to plan
around such problems and notify the Government of any impacts.
Government Agencies: Certain Government agencies with
significant Government contract responsibility, such the Small Business
Administration (SBA), may be completely shut down. This will delay approval of
8(a) applications, mentor-protégé applications, loans, size determinations, and
other issues.
Shutdown issues are many, varied, and complex. Knowing your
contract and then communicating both externally with the Government, lower
tiers, etc. and also with your employees are critical first steps.
Subscribe to:
Posts (Atom)