Capital Edge’s Tip Line #1: Stop Work Orders & Frozen Funds

Capital Edge Tip Line – March 13, 2025

Navigating Government Contracting Updates with Chad Braley

Government contracting is an ever-evolving landscape, with regulatory changes, legal challenges, and shifting compliance requirements creating uncertainty for contractors. At Capital Edge Consulting, we’re launching the Capital Edge Tip Line, a weekly update series designed to provide timely insights and practical guidance on pressing industry topics.

In this first edition, Chad Braley, CEO of Capital Edge Consulting, breaks down the latest developments, including stop work orders, frozen government funds, recent DCAA audit program updates, and a major shift in government purchase card policies.

Key Updates from This Week’s Tip Line

1. Stop Work Orders & Terminations

???? What’s happening? A preliminary injunction raises questions about whether terminations issued before February 13th are still valid.

???? What it means for you:

• Terminations after February 13th are likely valid, but uncertainty exists for earlier cases.
• Companies should delay filing termination settlement proposals until more guidance emerges.
• It’s critical to set up separate charge codes and track all termination-related costs.
• Subcontractors must also align their cost tracking and documentation

???? Action item: Capital Edge is developing a Termination Settlement Proposal Adequacy Checklist to help impacted contractors prepare compliant submissions.

2. Frozen Funds – Payments Finally Moving

???? What’s happening? The recent preliminary injunction has directed agencies like USAID to start releasing withheld payments.
???? What it means for you:

• Agencies are expected to process 300 invoices per day, but contractors are pushing for faster action.
• This applies to work completed before February 13th.

???? Action item: If you have unpaid invoices, monitor the process closely and be prepared to escalate if needed.

3. Quiet but Critical: DCAA Audit Program Updates

???? What’s happening? While much attention has been on executive orders and legal disputes, DCAA has quietly updated over 30 audit programs on its website.
???? What it means for you:

• Audit programs for professional and consulting costs, home office cost allocations, and business unit segment expenses have been updated.
• Contractors preparing for DCAA audits must verify they’re using the most current audit program.

???? Action item: Review the latest DCAA audit guidance or connect with Capital Edge for an audit readiness assessment.

4. Government Purchase Card Limitations – A New Bottleneck?

???? What’s happening? The Under Secretary of Defense for Acquisition and Sustainment has frozen government purchase cards at a $1 spending cap.
???? What it means for you:

• Previously streamlined purchases now require additional approvals, purchase orders, and agreements.
• The change could slow down procurement for essential supplies.

???? Action item: Evaluate how this shift impacts your purchasing workflow and identify alternative solutions to avoid delays.

Stay Ahead with Capital Edge

The Capital Edge Tip Line is your resource for real-time insights into government contracting changes. We’ll be back next week with the latest updates and expert analysis.

???? Have Questions? Need Help?
If any of these changes impact your business, don’t hesitate to reach out to Capital Edge Consulting for guidance.

???? Contact us today to discuss your specific challenges and compliance needs.

Stay informed. Stay compliant. Stay ahead.