DFARS Class Deviation 2020-O0021 Revision
On January 15, 2021, the Principal Director at Defense Pricing and Contracting (DPC) issued a memorandum on the CARES Act Section 3610 Reimbursement Requests, DFARS Class Deviation 2020-O0021, Revision 2. This memorandum revises and supersedes the DFARS Class Deviation 2020-O0021 Revision 1 issued on October 14, 2020. The only revision is to extend the period for which paid leave must be taken from March 27, 2020 through December 11, 2020 to March 27, 2020 through March 31, 2021. The remainder of the memorandum remains unchanged and details are included in Redstone GCI’s blog.
DFARS Class Deviation 2020-O0013 Revision
On January 13, 2021, the Principal Director at Defense Pricing and Contracting (DPC) issued a memorandum on the CARES Act Section 3610 Implementation, Class Deviation 2020-O0013, Revision 3. This memorandum revises and supersedes the DFARS Class Deviation 2020-O0013 Revision 2 issued on October 14, 2020.
Section 3610 of the CARES Act allows agencies to reimburse contractors at applicable billing rates (not to exceed an average of 40 hours a week), for paid leave including sick leave to keep its employees or subcontractors in a ready state. Class Deviation 2020-O0013 Revision 2 included a time period for the reimbursement from March 27, 2020 to December 11, 2020. Class Deviation 2020-O0013, Revision 3, revised the time period for which paid leave must be taken from March 27, 2020 to March 31, 2021. The Class Deviation 2020-O0013, Revision 3 supersedes Revision 2 in its entirety and is effective immediately.
Contracting Officer’s Authority
The memorandum addresses the contracting officer’s authority under Section 3610 for reimbursement:
- Enable the contractor to stay in a ready state (treating as allowable paid leave costs to keep employees and subcontractors)
- Use “funds made available to the agency” by Congress for workers lost time, not otherwise reimbursable between March 27, 2020 and March 31, 2021
- Modify contracts to provide reimbursement of allowable paid leave costs, not otherwise reimbursement, without securing additional consideration and
- Provide reimbursement on any contract type.
Limitations on Reimbursements
Limitations on reimbursements are also addressed including contractor reimbursements if employees unable to work due to closures or restrictions or telework, payment up to 40 hours per week, reimbursement period, reduction for credits to contractors related to other provisions of the CARES Act, and availability of funds.
The DPC memorandum includes an attachment updating DFARS 231.205-79 (b)(5) CARES Act Section 3610 – Implementation to revise the extended paid leave date from December 11, 2020 to March 31, 2021.
Redstone GCI is available to assist contractor’s in assessing their risk of audit intervention and assisting with the development of Section 3610 requests. Redstone GCI assists contractors throughout the U.S. and internationally with understanding the Government’s expectations in applying new guidance as it comes out.