In the fourth installment of our series for Corporate Counsel on impending government scrutiny on federal relief funding and company activity during the pandemic, Bass, Berry & Sims attorneys Richard Arnholt and Roee Talmor examined the guidance, instructions, and regulations clarifying government contractor eligibility for relief under §3610 of the CARES Act and the procedures that must be followed in order to be reimbursed. In the article, Richard and Roee highlight several broad considerations referenced in the Department of Defense (DoD) resources that contractors should take into account when considering whether to seek §3610 reimbursement, including:
- The conditions that must be met pursuant to the new cost principle, DFARS 231.205-79.
- Whether the work was performed at an "approved work site," which has been interpreted to mean the contractor's location and any other places of performance specifically identified in the contract.
- Contractors may only seek reimbursement for paid leave costs between March 27, 2020—and not Jan. 31, 2020, as specified in the legislative provision—through Dec. 11, 2020.
- Contractors may submit requests for reimbursements for either a single contract, multiple contracts, or for the entire business.
- The maximum reimbursement the DoD will allow must be reduced by the amount of credit a contractor is "allowed" pursuant to the Families First Coronavirus Response Act (FFCRA) credit provision and "any applicable credits a contractor is allowed under the CARES Act."
The articles in the series are available on the Corporate Counsel website and on the firm's related blogs, links below:
- " Important Considerations for DoD Contractors Seeking Relief Under §3610 of the CARES Act," (November 16, 2020) and GovCon & Trade blog (November 18, 2020)
- "How Public Companies Can Protect Against SEC Scrutiny Related to COVID-19," (September 16, 2020) and Securities Law Exchange blog (September 16, 2020).
- "How Health Care Companies Can Protect Against Government Scrutiny of COVID-19 Relief," (July 10, 2020) and Inside the FCA blog (July 28, 2020).
- "What Your Company Can Do Today to Protect Against Government Scrutiny of COVID-19 Relief Funding," (June 9, 2020) and Inside the FCA blog (July 23, 2020).
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