Under Section 3610 Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), Contracting Officers now have the authority to reimburse contractors and their subs for paid leave given to their employees during a suspension of work due to virus concerns. To qualify, a three (3) prong test must be met:
- The employees of the prime contractor or subcontractor cannot perform work due to a facility closure or other restriction;
- They cannot telework because their job duties cannot be performed remotely; and
- The employees are kept at a “ready state.”
Payments to are not to exceed 40 hours per week per employee at the “minimum applicable contract billing rates.” Section 3610 is also subject to availability of funds under the “CARES Act or any other Act.” So, if you are faced with a suspension of work and need to keep your employees in a “ready state,” ask your Contracting Officer for relief under the CARES Act.
Coronavirus Aid, Relief, and Economic Security Act (CARES ACT”)
9 SEC. 3610. FEDERAL CONTRACTOR AUTHORITY
Notwithstanding any other provision of law, and subject to the availability of appropriations, funds made available to an agency by this Act or any other Act may be used by such agency to modify the terms and conditions of a contract, or other agreement, without consideration, 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, but in no event beyond September 30, 2020.
Such authority shall apply only to a contractor whose employees or subcontractors cannot perform work on a site that has been approved by the Federal Government, including a federally-owned or leased facility or site, due to facility closures or other restrictions, and who cannot telework because their job duties cannot be performed remotely during the public health emergency declared on January 31, 2020 for COVID–19: Provided, That the maximum reimbursement authorized by this section shall be reduced by the amount of credit a contractor is allowed pursuant to division G of Public Law 116–127 and any applicable credits a contractor is allowed under this Act.
