Sect. 3610 fate uncertain
Expires on Sept. 30
The deadline is quickly approaching for Congress to authorize an extension of Sect. 3610 of the "CARES Act," which allows Defense Dept. agencies to reimburse contractors for maintaining a “ready state” during the coronavirus pandemic.
The reimbursement authority for Sect. 3610 expires on Sept. 30.
Under the 3610 provision, DOD can reimburse up to 40 hours of paid leave per employee, and that the reimbursements can be at the "minimum applicable contract billing rates."
The Democrat-led House passed the "HEROES Act" in May that expanded Sect. 3610 coverage. It said minimum applicable rates include indirect costs, fees and general and administrative expenses in addition to base wages.
The GOP-led Senate in June approved the "HEALS Act" that authorized $11 billion for DOD and $1.5 billion for NASA for Sect. 3610 reimbursements.
Senate Majority Leader Mitch McConnell, R-KY, on Aug. 18 introduced the so-called "skinny" stimulus bill. It did not include Sect. 3610 funding, Defense News reported. The "skinny" bill failed to pass.
House and Senate negotiations to date have failed to produce agreement.
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