On April 8, the Department of Defense (DOD) issued a allowing for contracting officers to reimburse defense contractors for certain paid leave requirements related to the COVID-19 outbreak. While 91ֿ called on Congress to support compensation for all federal contractors during the COVID-19 outbreak, the CARES Act only included a provision to reimburse for “applicable contract billing rates.” As most construction contracts are generally fixed, 91ֿ sought clarification from DOD on this provision and has confirmed that the Class Deviation will apply to all defense contracts, including fixed price contracts. 91ֿ will continue to work with DOD as they issue further guidance on this matter.
For more information, contact Jordan Howard at jordan.howard@agc.org or (703) 837-5368.