UPDATED AS OF 10/26/2022:

Changing course after its August 31 announcement that it would not enforce the federal government contractor vaccination mandate absent further written notice, on October 14, 2022, OMB and the Task Force published an update stating that they plan to issue at least three new guidance documents with an eye toward potentially resuming enforcement of the mandate:

  1. First, OMB plans to notify Federal agencies about compliance with applicable injunctions and whether contract clauses implementing the mandate should be included in new solicitations and contracts.
  • Second, the Task Force plans to update its November 2021 workplace safety protocols guidance related to the mandate.  The updated guidance will provide a timeline for any implementation long enough to ensure that covered contractors can come into compliance as needed.
  • Third, OMB will review the safety protocols guidance and make a determination on whether it promotes economy and efficiency in government contracting.  If OMB makes such a determination, it will provide additional guidance to agencies on timing and considerations for providing written notice to contractors regarding enforcement, except as barred by any injunction.

On October 19, 2022, OMB issued the first of these three guidance documents.  The two-page memorandum reiterates that “at this time agencies should NOT: (1) take any steps to require covered contractors and subcontractors to come into compliance with previously issued Task Force guidance; or (2) enforce any contract clauses implementing [the vaccine mandate].”  OMB’s memo further provides that: (a) for existing contracts that already contain the contractor vaccine mandate clause, agencies should continue NOT to enforce those provisions unless/until OMB issues future guidance; (b) for existing contracts that do not contain the contractor vaccine mandate clause, at this time agencies should NOT to modify the contract to incorporate the clause at this time, even when renewing or extending the contract; and (c) for new solicitations, at this time agencies should NOT include the contractor vaccine mandate clause.

These updates emphasize that federal agencies should not take steps to require contractors to come into compliance or to enforce any contract clauses implementing the mandate unless and until the third guidance document is published.  The upshot of this announcement is that the administration appears set to pursue some limited, forward-looking implementation of the contractor vaccine mandate, although only after a series of regulatory steps have been completed and contractors have been given time to come into compliance.  We will continue to monitor for developments, including the issuance of the forthcoming second and third updates from the Task Force and OMB, and provide updates here.

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UPDATED AS OF 9/1/2022: On August 31, 2022, the Safer Federal Workforce Task Force officially announced that the Federal Government will not enforce the federal government contractor vaccination mandate, absent further written notice. The Task Force announcement is posted on its website here.

An analysis of the Eleventh Circuit decision that preceded this announcement is below.

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On Friday, August 26, 2022, the U.S. Court of Appeals for the Eleventh Circuit upheld but narrowed a preliminary injunction currently in place against the Biden Administration’s COVID-19 vaccine mandate for federal government contractors (“the mandate”).  As discussed in our previous post, in December 2021, the U.S. District Court for the Southern District of Georgia issued a nationwide preliminary injunction blocking the mandate.  The Eleventh Circuit’s decision drops the nationwide injunction, and now blocks enforcement of the mandate only with respect to the plaintiffs in the case: Alabama, Georgia, Idaho, Kansas, South Carolina, Utah, and West Virginia, and the construction trade group Associated Builders and Contractors, Inc. 

Although narrower in scope, the decision is certainly a blow to the mandate.  The Government already had placed a moratorium on enforcing the mandate, and the Eleventh Circuit’s ruling, which found that the plaintiffs were at least reasonably likely to succeed on the merits, could dampen the administration’s enthusiasm for attempting to restart enforcement of the mandate.

However, the decision leaves open a number of questions about the future of the mandate, many of which depend on how aggressively the Government pursues the matter.  The upheld-but-narrowed injunction now sits alongside a patchwork of other state-specific injunctions issued by various other federal district courts, including the District of Arizona, Eastern District of Kentucky, Western District of Louisiana, Eastern District of Missouri, and Middle District of Florida.  In theory, the Government could seek to re-impose the mandate in jurisdictions not covered by these existing injunctions, though that strikes us as unlikely given a range of political and practical considerations.  The Government also could pursue appeals of the decisions from other federal district courts, thereby preserving the possibility of a circuit split and even an eventual decision by the Supreme Court. 

But perhaps most interesting, the Eleventh Circuit decision poses substantial questions about the ability of the executive branch to regulate federal contractors.  The executive has long been considered to have broad powers to regulate contractors, but Friday’s decision suggests a limit on that authority, at least under the Federal Property and Administrative Services Act (referred to in the decision as the “Procurement Act”).  Whether (and how) the Eleventh Circuit’s decision affects other efforts to regulate the contracting community is an open question that will need to be fleshed out in future cases.  In the meantime, we will continue to monitor for developments and provide updates here.

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Photo of Jennifer Plitsch Jennifer Plitsch

Jennifer Plitsch leads the firm’s Government Contracts Practice Group, where she works with clients on a broad range of issues arising from both defense and civilian contracts including contract proposal, performance, and compliance questions as well as litigation, transactional, and legislative issues.

She…

Jennifer Plitsch leads the firm’s Government Contracts Practice Group, where she works with clients on a broad range of issues arising from both defense and civilian contracts including contract proposal, performance, and compliance questions as well as litigation, transactional, and legislative issues.

She has particular expertise in advising clients on intellectual property and data rights issues under the Federal Acquisition Regulations (FAR) and obligations imposed by the Bayh-Dole Act, including march-in and substantial domestic manufacturing. Jen also has significant experience in negotiation and compliance under non-traditional government agreements including Other Transaction Authority agreements (OTAs), Cooperative Research and Development Agreements (CRADAs), Cooperative Agreements, Grants, and Small Business Innovation Research agreements.

For over 20 years, Jen’s practice has focused on advising clients in the pharmaceutical, biologics and medical device industry on all aspects of both commercial and non-commercial agreements with various government agencies including:

  • the Department of Veterans Affairs (VA);
  • the Department of Health and Human Services (HHS), including the Biomedical Advanced Research and Development Authority (BARDA), the National Institutes of Health (NIH), and the Centers for Disease Control (CDC);
  • the Department of Defense (DoD), including the Defense Threat Reduction Agency (DTRA), the Defense Advanced Research Projects Agency (DARPA), and the Joint Program Executive Office for Chemical Biological Defense (JPEO-CBRN); and
  • the U.S. Agency for International Development (USAID).

She regularly advises on the development, production, and supply to the government of vaccines and other medical countermeasures addressing threats such as COVID-19, Ebola, Zika, MERS-CoV, Smallpox, seasonal and pandemic influenza, tropical diseases, botulinum toxin, nerve agents, and radiation events. In addition, for commercial drugs, biologics, and medical devices, Jen advises on Federal Supply Schedule contracts, including the complex pricing requirements imposed on products under the Veterans Health Care Act, as well as on the obligations imposed by participation in the 340B Drug Pricing program.

Jen also has significant experience in domestic sourcing compliance under the Buy American Act (BAA) and the Trade Agreements Act (TAA), including regulatory analysis and comments, certifications, investigations, and disclosures (including under the Acetris decision and Biden Administration Executive Orders). She also advises on prevailing wage requirements, including those imposed through the Davis-Bacon Act and the Service Contract Labor Standards.

Photo of Michael Wagner Michael Wagner

Mike Wagner represents companies and individuals in complex compliance and enforcement matters arising in the public procurement context. Combining deep regulatory expertise and extensive investigations experience, Mike helps government contractors navigate detailed procurement rules and achieve the efficient resolution of government investigations and…

Mike Wagner represents companies and individuals in complex compliance and enforcement matters arising in the public procurement context. Combining deep regulatory expertise and extensive investigations experience, Mike helps government contractors navigate detailed procurement rules and achieve the efficient resolution of government investigations and enforcement actions.

Mike regularly represents contractors in federal and state compliance and enforcement matters relating to a range of procurement laws and regulations. He has particular experience handling investigations and litigation brought under the civil False Claims Act, and he routinely counsels government contractors on mandatory and voluntary disclosure considerations under the FAR, DFARS, and related regulatory regimes. He also represents contractors in high-stakes suspension and debarment matters at the federal and state levels, and he has served as Co-Chair of the ABA Suspension & Debarment Committee and is principal editor of the American Bar Association’s Practitioner’s Guide to Suspension & Debarment (4th ed.) (2018).

Mike also has extensive experience representing companies pursuing and negotiating grants, cooperative agreements, and Other Transaction Authority agreements (OTAs). In this regard, he has particular familiarity with the semiconductor and clean energy industries, and he has devoted substantial time in recent years to advising clients on strategic considerations for pursuing opportunities under the CHIPS Act, Inflation Reduction Act, and Bipartisan Infrastructure Law.

In his counseling practice, Mike regularly advises government contractors and suppliers on best practices for managing the rapidly-evolving array of cybersecurity and supply chain security rules and requirements. In particular, he helps companies assess and navigate domestic preference and country-of-origin requirements under the Buy American Act (BAA), Trade Agreements Act (TAA), Berry Amendment, and DOD Specialty Metals regulation. He also assists clients in managing product and information security considerations related to overseas manufacture and development of Information and Communication Technologies & Services (ICTS).

Mike serves on Covington’s Hiring Committee and is Co-Chair of the firm’s Summer Associate Program. He is a frequent writer and speaker on issues relating to procurement fraud and contractor responsibility, and he has served as an adjunct professor at the George Washington University Law School.

Photo of Sarah Schuler Sarah Schuler

Sarah Schuler is an associate in the firm’s Government Contracts Practice Group, advising clients across a broad range of government contracting compliance issues. Her areas of expertise include advising on intellectual property and data rights issues under the Federal Acquisition Regulation, including obligations…

Sarah Schuler is an associate in the firm’s Government Contracts Practice Group, advising clients across a broad range of government contracting compliance issues. Her areas of expertise include advising on intellectual property and data rights issues under the Federal Acquisition Regulation, including obligations imposed by the Bayh-Dole Act; application of the Freedom of Information Act to government contracts and related records; domestic sourcing requirements imposed under the Buy American Act and Trade Agreements Act; pricing and other compliance related issues arising under Federal Supply Schedule contracts; small business affiliation and certification analyses; the scope of flow-down requirements for subcontractors; and federal grant compliance under the Uniform Guidance and agency supplements. Sarah also counsels clients to navigate time-sensitive inquiries arising from contract compliance-related issues.

Sarah also maintains an active pro bono practice, providing counsel to U.S. service members with respect to the correction of military records and discharge upgrade requests.

Photo of Jennifer Bentley Jennifer Bentley

Jennifer Bentley is an associate in the Government Contracts Practice Group. Her practice is focused on litigation, investigations, and regulatory counseling across a range of government contracts matters. She has particular expertise in domestic sourcing issues, including the Buy American Act, Trade Agreements…

Jennifer Bentley is an associate in the Government Contracts Practice Group. Her practice is focused on litigation, investigations, and regulatory counseling across a range of government contracts matters. She has particular expertise in domestic sourcing issues, including the Buy American Act, Trade Agreements Act, and Build America, Buy America. She also maintains an active pro bono practice.