Wiley Rein - Almost five months after the enactment of the Coronavirus Aid, Relief, and Economic Security (CARES) Act—which included a provision allowing government contractors to seek reimbursement of costs for paid leave associated with the coronavirus (COVID-19) pandemic—the U.S. Department of Defense (DOD) has issued a class deviation providing guidance for contracting officers reviewing contractors’ payment requests. As we’ve previously discussed, Section 3610 of the CARES Act authorizes (but does not require) agencies to reimburse contractors for the cost of paid leave incurred to keep contractor or subcontractor personnel in a “ready state” to the extent that the personnel were (i) unable to access a government-approved facility, and (ii) unable to telework because their jobs could not be performed remotely. DOD officials have publicly stated that the department does not have enough funding to pay all expected contractor reimbursement requests.
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Effective Immediately: Final DOD Guidance on Section 3610 Reimbursement
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