DOD narrows timeframe for section 3610 reimbursement

By Marjorie Censer / August 21, 2020 at 1:04 PM

The Pentagon issued a new memo this week that shrinks the period of time during which defense contractors can seek reimbursement through a provision in coronavirus recovery legislation.

The document, signed by Kim Herrington, the acting principal director of defense pricing and contracting, says it revises an April memo on reimbursement related to Section 3610 of the Coronavirus Aid, Relief, and Economic Security Act, which was enacted in late March.

This provision was meant to allow the federal government to reimburse contractors who are unable to work because of the pandemic but are kept in a "ready state."

According to the new memo, "the time period for which paid leave must be taken is changed from January 31, 2020, through September 30, 2020, to March 27, 2020, through September 30, 2020."

Additionally, the memo reiterates that "reimbursements under Section 3610 are subject to the availability of funds."

In an interview with Inside Defense, Wes Hallman of the National Defense Industrial Association said some defense contractors are "disappointed" in that shortened time period, though he said it would be difficult to quantify the impact.

Hallman said the association is now focused on extending Section 3610, which is set to expire at the end of next month.