DOD Issues Class Deviation to Alleviate Impact of COVID-19 on Contractors

---

The Department of Defense (DOD) announced that the Defense Pricing and Contracting (DPC) office issued a class deviation to allow payments to contractors who cannot work due to COVID-19. The class deviation guidance seeks to provide relief to the contracting community who may be affected by COVID -19.

The DPC office issued the class deviation to the Federal Acquisition Regulation (FAR) and the Defense Federal Acquisition Regulation Supplement (DFARS) entitled, “CARES Act Section 3610 Implementation.” The deviation addresses section 3610 of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, allowing agencies to reimburse contractors for payment to employees who otherwise are prohibited from working due to facility closures or other restrictions caused by COVID-19.

Also, to recognize the importance of supporting affected contractors, the deviation guidance offers a framework for contracting officers to assess any claimed allowable costs associated with the declared public health emergency.

More information is available at https://www.acq.osd.mil/dpap/pacc/cc/COVID-19.html