Type: Law Bulletins
Date: 05/01/2020

GSA Class Deviation Offers CARES Act Section 3610 Guidance to Federal Contractors

The General Services Administration (GSA) recently issued Class Deviation CD-2020-12 setting forth guidance for the implementation of section 3610 of the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act), including the addition of a new GSA Acquisition Regulation (GSAR) contract clause (552.222-70) detailing paid leave reimbursements available to contractors. GSA’s approach will be familiar to those who have reviewed the guidance provided by the Department of Defense in early April regarding its implementation of section 3610 of the CARES Act. A copy of the DFARS deviation and clause with that guidance is available here.

The new GSAR clause permits contractors to request an equitable adjustment for reimbursable leave paid to employees and subcontractors performing GSA contracts from March 27, 2020, through Sept. 30, 2020. Reimbursable leave refers to any paid leave, including sick leave, up to 40 hours per week that a contractor provides to keep its employees or subcontractors in a “ready state” during the active period of the clause. The clause does not apply in cases where contractor employees or subcontractors have been authorized to perform their work safely either on-site or remotely.

To make a request for equitable adjustment pursuant to this clause, contractors are required to provide the contracting officer an estimate of the amount of reimbursement sought and to include a representation that:

  1. The request for paid leave is only for reimbursable leave for applicable work, at the applicable rate.
  2. The contractor will timely notify the contracting officer of the circumstances of receiving any “covered credits” received under the CARES Act and division G of the Families First Coronavirus Response Act of 2020 (FFCRA).
  3. That all information is true, accurate, complete and correct as of the date of submission.

Contractors are reminded that any reimbursement pursuant to 552.222-70 must be offset by the amount of “covered credits” received under the CARES Act and division G of the FFCRA. For this reason, contractors should take great care to document the justification, timing and amount of any COVID-19 emergency assistance they receive.

For more information or assistance requesting reimbursement under this clause or the DFARS clause, please contact a member of Taft’s Government Contracts team.

Please visit our COVID-19 Toolkit for all of Taft’s updates on the coronavirus.

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