On January 1, 2021, the National Defense Authorization Act for Fiscal Year 2021 became law after both houses of Congress overrode President Trump’s December 23, 2020 veto of H.R. 6395. This Act contains numerous provisions that will impose new requirements, expectations, or opportunities for government contractors. Crowell & Moring’s Government Contracts Group analyzes key provisions
DoD OIG Audit Assesses Implementation of Section 3610 Relief Under CARES Act
On December 9, 2020, the Department of Defense Office of Inspector General (DoD OIG) released its Audit of Department of Defense Implementation of Section 3610 of the Coronavirus Aid, Relief, and Economic Security Act. The audit assesses the DoD’s issuance of relief under Section 3610, which authorizes certain agencies to reimburse contractors for any
New DoD Guidance Clarifies, and Restricts, Recovery under § 3610
On August 18, 2020, the Acting Principal Director for Defense Pricing and Contracting (DPC) issued updated guidance regarding contractor and subcontractor reimbursement of paid leave costs under the CARES Act § 3610, including two key Class Deviations, both effective immediately. First, it issued Revision 1 to Class Deviation 2020-O0013, which revises and supersedes
Coronavirus Update: White House Delegates Title III DPA Authority to U.S. International Development Finance Corporation
On May 14, the President issued an Executive Order (EO) delegating funding and loan authority under Title III of the Defense Production Act (DPA) to the U.S. International Development Finance Corporation (DFC) to support domestic production of strategic resources to respond to the COVID-19 outbreak and strengthen domestic supply chains. The DFC’s loan authority
Coronavirus Update: Updated Section 3610 Guidance
Agencies continue to release and refine Section 3610 billing guidelines. There continue to be substantive differences between agencies, creating compliance challenges for contractors. Crowell & Moring continues to track the latest Section 3610 billing guidance. Click here to view the updated table, current as of May 1, 2020.
Coronavirus Update: DPA Authority Delegated to Department of Agriculture to Combat Food Supply Chain Threat
On April 28, the President signed an Executive Order on Delegating Authority Under the DPA with Respect to Food Supply Chain Resources During the National Emergency Caused by the Outbreak of COVID-19. The new EO delegates to the Department of Agriculture (“the Department”) Defense Production Act (DPA) Title I priorities and allocation authority with
Coronavirus Update: DoD Issues Class Deviation Regarding Implementation of Section 3610 of the CARES Act
On April 8, 2020, the Office of the Under Secretary of Defense, Acting Principal Director, Defense Pricing and Contracting (DPC) issued Class Deviation 2020-O0013, effective immediately, establishing a new DFARS cost principle entitled DFARS 231.205-79, “CARES Act Section 3610 – Implementation,” which sets forth rules regarding applicability, allowability, and avoiding duplicate payments under Section
Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) Section 3610 — Billing and Contractual Relief for Government Contractors When Employees Cannot Work due to the COVID-19 Pandemic
The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), passed by Congress today, offers relief specifically targeted to federal contractors whose employees (1) cannot perform work on a “site that has been approved by the Federal Government ” during the COVID-19 public health emergency due to facility closures or other restrictions and (2) cannot
Follow Up: White House Issues Order under Defense Production Act as Part of COVID Response
On March 23, 2020, the President signed an “Executive Order on Preventing Hoarding of Health and Medical Resources to Respond to the Spread of COVID-19” delegating additional authorities under the Defense Production Act of 1950 (“DPA”), which builds on Executive Order (EO) No. 13909, issued March 18, 2020, which we discussed here.
White House Issues Order under Defense Production Act as Part of COVID Response
On March 18, 2020, President Trump significantly expanded the authority delegated to the Secretary of Health and Human Services (HHS) in his “Executive Order on Prioritizing and Allocating Health and Medical Resources to Respond to the Spread of Covid-19.” The Order is based on a finding that, “to ensure that our healthcare system