DoD will allow payments to contractors who can’t work due to COVID-19 circumstances

Press Release From: National Defense Industrial Association
Posted: Friday, April 10, 2020

The Defense Department announced Thursday a class deviation to Section 3610 of the CARES Act that will let agencies reimburse contractors for payment to employees who can’t work because of COVID-19 facility closures or other restrictions.


The April 9 statement, available here, states the Defense Pricing and Contracting Office issued a deviation to the Federal Acquisition Regulation and the Defense Federal Acquisition Regulation Supplement that “provides a framework for contracting officers to assess any claimed allowable costs associated with the declared public health emergency, recognizing the importance of supporting affected contractors to ensure that, together, we remain a healthy, resilient and responsive total force.”


More information will be in a forthcoming implementation guidance memo and frequently asked questions (FAQs) document; it will be available here


This class deviation is the 17th COVID-19 guidance from the Defense Pricing and Contracting Office to help relieve impacts for the contracting community, according to the Defense Department. This office and other DoD agencies continue their extensive work with the National Defense Industrial Association and fellow industrial associations on effects to the industry.


The full DoD statement, including web resources for contractors, is available here.

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