National Security Companies and Contractors Still Adjusting to Coronavirus Changes

National Security Companies and Contractors Still Adjusting to Coronavirus Changes

National Security Companies and Contractors Still Adjusting to Coronavirus Changes

It won’t be back to business as usual for intelligence community and national security workers. And that means government contractors need more time to take advantage of contingency funds, urges a recent letter signed by a group of trade groups and industry associations, including the Intelligence and National Security Alliance, Professional Services Council, U.S. Chamber of Commerce, and Armed Forces Communications and Electronics Association.

“Contractors for intelligence agencies cannot simply take classified work home with them and telecommute during the pandemic,” said Larry Hanauer, INSA’s vice president for policy.  “Section 3610 has enabled national security contractors to keep cleared employees ready to return to work rather than lay them off, which would cost tens of thousands of jobs and undermine national security.  But the pandemic will continue past September 30, which means the authorities to continue supporting cleared industry are needed past that date as well.”

The CARES Act allowed government contractors to invoice for costs related to COVID-19. The provisions were designed to ensure the stability of the defense industrial base, which faced a number of supply chain challenges related to factory closures and weapons systems delays, as well as adjusting to remote work in a community where telework has typically been a limited option. The reimbursement window of Section 3610 of the CARES Act ends Sept. 30. Many contractors report they have only recently begun applying for reimbursements related to the coronavirus. Unless Congress extends or creates new provisions in its next stimulus package, any closures to COVID-19 costs will come out of company bottom lines.

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Caroline Henry

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