NDIA survey says COVID-19 crisis is causing disrupted cash flow

By Marjorie Censer / March 27, 2020 at 3:09 PM

A survey conducted by the National Defense Industrial Association found that small businesses expect the coronavirus outbreak to disrupt their sales and their ability to carry out contracts.

According to NDIA, 458 small businesses had responded to the survey as of this morning. More than half of the respondents were businesses with less than $5 million in annual sales.

NDIA said 62% of respondents reported disrupted cash flow as a result of the crisis.

"The most common causes are cuts to billable hours, delayed payments from prime contractors and government customers because of shut down or telework, and lack of telework options or schedule flexibility in contracts," NDIA said.

Just over half of respondents said they cannot work on a contract because of a shelter-in-place order.

"Other challenges survey respondents cited are access to secure work facilities, workforce availability, clear information from the Defense Department, access to contracting officers and confidence in supply-chain partners," NDIA said. "Availability of and cost of materials are their least concerns."

The association said it presented the results today to Pentagon acquisition chief Ellen Lord. The survey will continue through April 10.