ARLINGTON, VA – The National Defense Industrial Association is among nine trade organizations asking the Office of Management and Budget to clarify implementation of Section 3610 of the Coronavirus Aid, Relief, and Economic Security Act, the Arlington, VA-based group announces.
NDIA cosigned an April 16 letter to OMB’s acting Director Russell Vought, asking for guidance on the section, which gives agencies authority to reimburse contractors at “minimum applicable contract billing rates” for employees who can’t work because of COVID-19-related facility closures and other restrictions, and those who cannot telework.
Section 3610 of the CARES Act authorizes contracting officers to reimburse contractors whose performance was disrupted by the pandemic for costs associated with keeping their workforce in a ready state. It allows reimbursement at the minimum applicable contract billing rates, not to exceed 40 hours per week, for any paid leave, including sick leave, a contractor provides to keep its employees or subcontractors in a ready state.
The associations commended the Defense Department’s directions on Section 3610 and urged OMB to follow suit. DoD has offered guidance on implementation and class deviation as well as frequently asked questions from contractors.
“Consistent implementation of this provision is critical to the viability of the hundreds of thousands of companies that make up our nation’s critical infrastructure and defense industrial base supply chains,” the letter states. These companies “require clear and consistent guidance to protect their employees, maintain a ready state, and make critical resource and personnel decisions tied to support for customer missions.”
The complete letter is available here<https://content.ndia.org/-/media/sites/press-media/multi-association-3610-request-to-omb-16apr2020-final.ashx?la=en>.
The other signing organizations were the American Council of Engineering Companies, AFCEA International, the International Associated General Contractors of America, CompTIA, The Center for Procurement Advocacy, the Information Technology Industry Council, the Intelligence and National Security Alliance, and the Professional Services Council.
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