White House Releases Guidance on Contractor Reimbursement

On Friday, the Office of Management and Budget (OMB) released a memo to agency leaders on additional avenues for compensating contractors available through the CARES Act stimulus package passed last month. The guidance is described as a supplement to previous guidance on acquisition responsibilities during the COVID-19 response.

Under Section 3610 of the CARES Act, agencies were provided additional discretionary authority to reimburse the costs of paid leave to federal contractors and subcontractors under certain conditions. The M-20-22 memo establishes guiding principles for deciding when to utilize CARES Act funds for contractors. The two primary principles and additional considerations are:

1. Support contractor resiliency

   1. Carefully consider if reimbursing paid leave to keep the contractor in a ready state is in the best interest of the Government for meeting current and future needs

   2. Be mindful of the challenges faced by small businesses

2. Exercise good stewardship

   1. Maintain mission focus and evaluate use of section 3610 in the broader context of all strategies to promote contractor resiliency

   2. Follow restrictions in section 3610

   3. Work with the contractor to secure necessary documentation to support reimbursement and prevent duplication of payment

   4. Track use of section 3610

Additional acquisitions policy questions may be directed toward the Office of Federal Procurement Policy at MBX.OMB.OFPPv2@0MB.eop.gov.