Trade associations say OMB should release guidance on section 3610

Nine trade associations are appealing to the Office of Management and Budget to provide more guidance on how to implement a section of the coronavirus relief legislation meant to allow agencies to reimburse contractors unable to work.

The Pentagon last week issued a new memo on Section 3610 of the Coronavirus Aid, Relief and Economic Security Act outlining how contracting officers can reimburse companies whose workers can't operate because of work site closures, personnel quarantines and movement restrictions.

But the new letter, sent yesterday to OMB Acting Director Russell Vought, says OMB needs to play a greater role.

"Consistent implementation of this provision is critical to the viability of the hundreds of thousands of companies that make up our nation's critical infrastructure and defense industrial base supply chains, and that must retain a ready workforce throughout the COVID-19 national emergency," the associations write. "Currently, a handful of agencies, including the Department of Defense (DOD) and several intelligence agencies, have published guidance related to the implementation of Sec. 3610. That guidance has established a helpful framework for contracting officers as they seek to be good stewards of taxpayer funds."

However, they continue, the agency guidance that has been issued has "had the unintentional result of creating the inconsistent or contradictory implementation of Sec. 3610."

As a result, OMB should "issue implementation guidance to ensure that all federal agencies understand the acquisition tools available and have a consistent approach to ensuring resilience across the total force as our nation weathers this crisis."

The groups urge OMB to ensure its guidance makes clear that the legislative authority applies to both prime contractors and subcontractors, that it applies to costs incurred between Jan. 31, 2020 and Sept. 30, 2020 and that it applies to all contract types, among other provisions.

The letter was signed by the American Council of Engineering Companies, AFCEA International, Associated General Contractors of America, CompTIA, the Center for Procurement Advocacy, the Information Technology Industry Council, the Intelligence and National Security Alliance, the National Defense Industrial Association and the Professional Services Council.