NDIA applauds historic Senate stimulus package

ARLINGTON, VA -- The National Defense Industrial Association is pleased Congress included language in support of the defense industrial base in the largest stimulus package in U.S. history. 

The nearly $2-trillion package to combat the economic fallout of the COVID-19 virus outbreak will give government agencies flexibility to offer contractors reimbursement for paid and sick leave caused by an inability to access their worksite or telework due to their job duties. This legislation is a positive step in the process of ensuring the defense industrial base can weather the pandemic’s disruptions.

Today’s legislation includes the following Section:

 SEC. 3610. Federal Contractor Authority. Notwithstanding any other provision of law, and subject to the availability of appropriations, funds made available to an agency by this Act or any other Act may be used by such agency to modify the terms and conditions of a contract, or other agreement, without consideration, to reimburse at the minimum applicable contract billing rates not to exceed an average of 40 hours per week any paid leave, including sick leave, a contractor provides to keep its employees or subcontractors in a ready state, including to protect the life and safety of government and contractor personnel, but in no event beyond September 30, 2020. Such authority shall apply only to a contractor whose employees or subcontractors cannot perform work on a site that has been approved by the Federal government, including a federally-owned or leased facility or site, due to facility closures or other restrictions, and who cannot telework because their job duties cannot be performed remotely during the public health emergency declared on January 31, 2020 for COVID–19: Provided further, That the maximum reimbursement authorized by this section shall be reduced by the amount of credit a contractor is allowed pursuant to division G of Public Law 116–127 and any applicable credits a contractor is allowed under this Act.

We recognize there are limitations to the depth of support included in the legislation and encourage the Department of Defense and other agencies to provide consistent equitable relief and adjustments to all contractors whose ability to perform their functions is impacted. NDIA will continue to work across industry with relevant associations to advocate for equitable relief and more legislation to ensure the Defense Industry is protected during this unprecedented time.

For media queries, contact Evamarie Socha at esocha@NDIA.org.