On August 18, 2020, the Department of Defense issued Revision 1 Class Deviation 2020-O0013, an update to Class Deviation 2020-O0013, as well Class Deviation 2020-O0021. Class Deviation 2020-O0013 added a new cost principle, DFARS 231.205-79, “CARES Act Section 3610 – Implementation,” governing the allowability of paid leave costs under § 3610. Section 3610 of the CARES Act allows agencies to reimburse contractors for paid leave, including sick leave, at the minimum contract billing rate for up to an average of 40 hours/week. The most notable change under Revision 1 Class Deviation 2020-O0013 is that the period during which the allowable paid leave may be incurred has been shortened by 3 months. It recognizes that the CARES Act was passed on March 27, 2020 and does not allow for retroactive relief; therefore, the beginning of the period for which paid leave is allowable has been changed from January 31, 2020 to March 27, 2020. Additionally, the memorandum adds a new paragraph to DFARS 231.205-79 clarifying that reimbursement is limited to the amount of funds specifically obligated for use under Section 3610. Class Deviation 2020-O0021 establishes guidance for reviewing and processing contractor requests for reimbursement under Section 3610. This Class Deviation provides contracting officers with guidance on topics such as processing of submissions for reimbursement requests, verifying affected contractors, modifying affected contracts, and instructions on how to determine the reimbursement amount.
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