On March 11, 2021, President Biden signed into law the American Rescue Plan Act of 2021, a $1.9 trillion economic stimulus bill to facilitate the recovery from the impact of the COVID-19 pandemic. The Act extended Section 3610 of the CARES Act through September 30, 2021.
Section 3610 of the CARES Act permits agencies to modify the terms and conditions of the contract to reimburse contractors who provide paid leave to their employees to keep the employees in a “ready state” while they are unable to work on a site that has been approved by the Federal Government due to facility closures or other restrictions and are unable to telework. These funds are to be added to the existing contract as a separate contract line item (CLIN) and could be issued as cost-type or fixed price modifications.
This is the second extension of Section 3610. This provision was originally set to expire on September 30, 2020, and then was first extended to March 31, 2021. This latest extension allows agencies to continue to provide Section 3610 reimbursement to contractors through the end of FY2021.
Berenzweig Leonard’s government contracts, business, and employment attorneys are closely monitoring this and other COVID-19 related updates impacting government contractors and other businesses during this time. Please do not hesitate to reach out to us if we can be of assistance.