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Yesterday evening, May 18, Defense Pricing and Contracting issued draft instructions and requirements for contractors submitting Section 3610 reimbursement requests. Comments from industry are welcome by emailing osd.dfars@mail.mil before 5pm ET on Friday, May 22, 2020.

The draft instruction requires significant information from contractors. The required information falls into these general categories: detail about requested

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.

Section 3610 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) permits government agencies to modify the terms of existing contracts or other agreements, without consideration, to reimburse at the minimum applicable contract billing rates not to exceed an average of 40 hours per week for any paid leave, including sick leave, a

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

On February 7, 2020, the ASBCA sustained the appeal of Command Languages, Inc. d/b/a CLI Solutions (CLI) against the Army over increased costs to translate technical manuals. CLI contracted with the Army to translate advanced level armored vehicle maintenance manuals for use by the Afghanistan Army. The advanced level manuals included tasks from basic level

   Labor Update

In Alutiiq Commercial Enterprise, LLC (Jan. 9, 2020), the Armed Services Board of Contract Appeals held that a contractor is entitled to an equitable adjustment under the Service Contract Act Price Adjustment Clause, FAR 52.222-43, for increased labor costs associated with a new Collective Bargaining Agreement executed after an

In Tolliver Group, Inc v. U.S. (Jan. 22, 2020), the Court of Federal Claims granted summary judgment in favor of a contractor who sought reimbursement of legal fees incurred in successfully defending against a False Claims Act (FCA) suit filed by a relator. The qui tam action arose from a defect in the original contract—the

In Ingham Regional Medical Center v. U.S. (Jan. 6, 2020), the Court of Federal Claims compelled production of certain government investigatory documents that the Court found were not privileged work product prepared “in anticipation of litigation.” The Medical Center sued to recover payments for outpatient healthcare services performed in connection with DoD’s TRICARE program

The Defense Contract Audit Agency (“DCAA”) recently made public its Fiscal Year (FY) 2018 Report to Congress (“Report”), which, among other things, provides an update on its incurred cost audits and highlights DCAA’s industry outreach activities.  Although the Report touts DCAA’s elimination of the incurred cost audit backlog, DCAA acknowledges that there still is a

On March 21, 2019, the Department of Defense (DoD) Defense Innovation Board (“DIB”) released a report, Software is Never Done: Refactoring the Acquisition Code for Competitive Advantage (“the Report”), summarizing DIB’s Software Acquisition and Practices (SWAP) study, which was mandated by the National Defense Authorization Act of Fiscal Year (FY) 2018. The two-year study involved