Industry groups say contractors are tracking the Pentagon and Capitol Hill's plans to reimburse them for pandemic-related expenses as discussions continue.
The Pentagon earlier this month issued new guidance making clear that it does not yet have funding from Congress to cover planned reimbursements under Section 3610 of the Coronavirus Aid, Relief and Economic Security Act.
In an interview with Inside Defense, Wes Hallman of the National Defense Industrial Association said that legislation as well as DOD's messaging on equitable adjustments have thus far been "unfunded mandates."
"Until you appropriate funds to cover those, it's going to be really, really difficult," he said. "Without the appropriations, it's very hard to carry out what they've been asked to carry out."
He said NDIA also has concerns about the lack of specificity in the 3610 guidance DOD has issued.
"In many ways, it still is more or less kind of top-level guidance," Hallman said. "Your larger companies are going to have the resourcing to make the claims even under this very nonspecific guidance. As you get to the smalls, it's going to be more and more difficult. . . . They don't have the expertise, they don't have the manpower, they don't have the time to do these things."
Hallman said contractors are somewhat concerned about the lack of funding.
DOD "being honest about what they are empowered to do and what they aren't is relatively clear in" last week's memo, he said. "Does that give a company pause* I think it does."
David Berteau, who heads the Professional Services Council, told Inside Defense that Section 3610 is working to keep contractors in business.
"It's highly likely that the need for Section 3610 will extend beyond its current expiration date of Sept. 30 and, regardless of the resolution of the funding issue, we need an extension that's government-wide," he said.
John Luddy of the Aerospace Industries Association said the Pentagon and defense contractors remain "united" in supporting additional funding.
"I think it's going to be addressed," he said. "The worst-case scenario concerns us, but I'm not prepared yet to say that I see that worst-case scenario."
"Ideally by the end of the summer we'd have a pathway on how we're going to handle the FY-20 costs . . . so we can make the transition into FY-21 as smoothly as possible," Luddy said.