Memo from Under Secretary Defense: Guidance for Assessment of Other Covid-19 Related Impacts and Cost

The Department of Defense (DoD) has taken a myriad of actions in response to the COVID-19 pandemic to maintain readiness and ensure mission continuity. In balancing these demands, a number of reasonable measures have been taken by both the Government and industry to prevent the spread of COVID-19 and allow facilities to remain open and productive.
These actions include maximizing the use of telework within mission and contractual requirements, using personal protective equipment (PPE), special cleaning regimens to reduce exposure, and realigning shifts to practice social distancing. DoD Contractors may have already
incurred, and will likely continue to incur, delays and costs associated with their response to the COVID-19 pandemic. However, to date, no funds have been appropriated specifically for reimbursement of these costs.

DFARS Class Deviation 2020-O0013 – CARES Act Section 3610 Implementation, effective April 8, 2020, provides a means for affected contractors to request reimbursement of costs incurred for paid leave granted to their employees during the COVID-19 pandemic. The
purpose of Section 3610 is to maintain the contracting workforce in a ready state if facility closures cause work stoppage and affected employees are unable to telework. Subject to the availability of funds, a contracting officer may modify contracts or other agreements to reimburse up to 40 hours per week of paid leave costs.

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