Jenner & Block

Client Alert: DOD Issues Final Guidance Implementing Section 3610 of the CARES Act

After months of consideration and review, on August 18, 2020, Kim Herrington, Acting Principal Director of Defense Pricing and Contracting (DPC), released guidance to assist defense contractors in drafting, and contracting officers in evaluating, requests for reimbursement under Section 3610 of the CARES Act. Section 3610 of the CARES Act offers discretionary authority for contracting officers to use available funds to reimburse contractors and their subcontractors for certain expenses used to keep their workforces in a “ready state.” Among other things, the guidance offers three distinct methods of obtaining recovery under Section 3610: (1) single contracts with reimbursement under $2 million; (2) multiple contracts that are logically grouped under a single program or contracting activity; and (3) enterprise wide.

This long-awaited guidance consists of four documents.

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