The Pentagon has set up procedures to reimburse defense contractors who pay their employees that can’t work during the coronavirus pandemic
Section 3610 allows agencies to reimburse, at the minimum applicable contract billing rates (not to exceed an average of 40 hours per week), any paid leave, including sick leave, a contractor provides to keep its employees or subcontractors in a ready state, including to protect the life and safety of Government and contractor personnel, during the public health emergency declared for COVID-19 on January 31, 2020, through September 30, 2020. Contractors usually include employee leave in calculating their indirect rates. Therefore, leave is included in any fixed price, or labor hour rate (under Time and Materials or Labor Hour contracts), or as an element of cost on cost-reimbursement contracts. Deviation 2020-O0013 establishes a new cost principle that will allow recovery of such costs where appropriate. Read More
Click Here to Read the Implementation Guidance for Section 3610 of the Coronavirus Aid, Relief, and Economic Security Act
Source: Cassidy & Associates
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