“Defense contractors will need financial support from federal agencies through the end of 2021 if they are going to make it through the coronavirus pandemic, according to industry groups and lawmakers.”
“Section 3610 of the Coronavirus Aid, Relief and Economic Security, or CARES Act, provides a lifeline to the defense industrial base. It gives agencies the authority to reimburse contractors for costs related to COVID-19. The latest Republican aid proposal includes funding for its implementation, but unless Congress extends the deadline for Section 3610, that funding may not be enough.”
“Compensation for contractors who cannot always go into the office because of social distancing restrictions but also cannot do their work remotely is not guaranteed during the coronavirus pandemic. The CARES Act money enables federal agencies to reimburse contractors so that they can cover these costs, maintaining what’s known as a ‘ready state.’”
“Currently, Section 3610 is set to expire Sept. 30. The Professional Services Council told Nextgov last month that deadline is too soon—they asked for an extension until the end of the year. But now, PSC and other industry organizations, including the National Defense Industrial Association, are calling for an even longer extension.”
“On Friday, PSC, NDIA and six other industry organizations sent a letter to congressional leaders asking for the expiration date to be pushed back to Dec. 31, 2021. The same day, four Democratic senators sent a letter to Sens. Mitch McConnell, D-Ky., and Chuck Schumer, D-N.Y., repeating that request…” Read the full article here.
Source: Democratic Senators Join Industry Groups in Calls to Extend CARES Act Funding Authority for Contractors – By Mila Jasper, August 5, 2020. Nextgov.
