Just In Case Act
This bill allows the Department of Defense (DOD) to reimburse contractors for paid leave provided to employees or subcontractors who are prevented from working due to an emergency or disaster.
The bill also allows DOD to reimburse small business contractors for other costs related to the emergency or disaster if necessary to ensure the continuation of contractor performance.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5104 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 5104
To permit the Secretary of Defense to reimburse contractors for paid
leave costs incurred by such contractors during periods of work
interruption in order to keep the employees and subcontractors of such
contractors working or ready to resume work, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
August 24, 2021
Mr. Wittman (for himself and Mr. Brown) introduced the following bill;
which was referred to the Committee on Armed Services
_______________________________________________________________________
A BILL
To permit the Secretary of Defense to reimburse contractors for paid
leave costs incurred by such contractors during periods of work
interruption in order to keep the employees and subcontractors of such
contractors working or ready to resume work, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Just In Case Act''.
SEC. 2. SPECIAL EMERGENCY REIMBURSEMENT AUTHORITY.
(a) In General.--Subchapter II of chapter 134 of title 10, United
States Code, is amended by adding at the end the following new section:
``Sec. 2265. Special emergency reimbursement authority
``(a) Special Emergency Reimbursement Authority.--
``(1) In general.--Notwithstanding any other provision of
law, the Secretary of Defense may, in accordance with this
paragraphs (2) and subsection (c), modify the terms and
conditions of a covered contract, without consideration, to
reimburse a contractor for the cost of any paid leave,
including sick leave, that such contractor provides to the
employees or subcontractors (at any tier) of such contractor in
response to a covered emergency to keep such employees or
subcontractors in a ready state with respect to such covered
contract.
``(2) Reimbursement requirements.--
``(A) Eligible employee and subcontract costs.--
Reimbursements under this subsection may be made only
with respect to employees of a contractor or employees
of subcontractors (at any tier) of a contractor which,
for the relevant covered contract--
``(i) are unable to perform work on a
covered site due to facility closures or other
restrictions; and
``(ii) cannot telework because the duties
of such employee or contractor cannot be
performed remotely.
``(B) Average hours.--The number of hours of paid
leave for which the cost may be reimbursement under
this subsection may not exceed an average of 40 hours
per week per employee described in subparagraph (A).
``(C) Bill rate.--The minimum applicable contract
billing rate under the relevant covered contract shall
be used to calculate reimbursements under this
subsection.
``(b) Enhanced Reimbursement for Small Business Contractors.--
``(1) In general.--In addition to any reimbursement under
subsection (a), the Secretary of Defense may, in accordance
with paragraph (2) and subsection (c), modify the terms and
conditions of a covered contract, without consideration, to
reimburse a small business contractor for costs, other than
costs reimbursable under subsection (a), that are direct costs
of a covered emergency with respect to which reimbursement is
permitted under subsection (a).
``(2) Limitations.--The Secretary of Defense may reimburse
a small business contractor under this subsection to the extent
that the relevant contracting officer determines in writing
that--
``(A) such reimbursement is necessary to ensure the
continuation of contractor performance during, or the
resumption of contractor performance after, the covered
emergency;
``(B) the small business contractor mitigated the
costs that may be reimbursed under this subsection to
the extent practicable; and
``(C) it is in the best interest of the United
States to reimburse such costs.
``(c) Reimbursement Conditions.--
``(1) Cost identification.--A cost is eligible for
reimbursement under subsection (a) or (b) only if the relevant
contracting officer determines that the records of the
contractor to identify such cost as a cost described in either
such subsection such that such contracting officer may audit
such cost.
``(2) Other federal benefit offset.--
``(A) In general.--Any reimbursement under
subsection (a) or (b) shall be reduced by an amount
equal to the total amount of any other Federal payment,
allowance, or tax or other credit received for a cost
that is reimbursable under such subsection.
``(B) Notification.--A contractor that receives a
payment, allowance, or credit described in subparagraph
(A) for a cost which such contractor seeks
reimbursement under subsection (a) or (b) shall submit
to the relevant contracting officer a notice of the
receipt of such payment, allowance, or credit--
``(i) prior to the execution of a contract
modification providing such reimbursement; and
``(ii) not later than 30 days after such
receipt.
``(C) Post reimbursement.--A contractor that
receives a payment, allowance, or credit described in
subparagraph (A) for a cost after the execution of a
contract modification under subsection (a) or (b)
reimbursing such cost, or that is unable to provide the
notice required under subparagraph (B) in accordance
with clause (i) of such subparagraph, shall--
``(i) not later than 30 days after the
receipt of the payment, allowance, or credit,
notify the relevant contracting officer in
writing of such receipt; and
``(ii) agree to execute a contract
modification to reduce the amount reimbursed
under subsections (a) and (b) by the amount of
such payment, allowance, or credit.
``(3) Appropriations availability.--Reimbursements under
subsections (a) and (b) shall be subject to the availability of
appropriations.
``(d) Cost Accounting Standards.--For the purposes of this section,
a cognizant Federal agency official shall provide a contractor subject
to the cost accounting standards issued pursuant to section 1502 of
title 41, United States Code, and required to submit one or more
disclosure statements, a reasonable opportunity to amend any such
disclosure statements to reflect any costs that are reimbursable under
subsection (a).
``(e) Definitions.--In this section:
``(1) Cognizant federal agency official.--The term
`cognizant Federal agency official' has the meaning given such
term in section 30.001 of title 48, Code of Federal
Regulations.
``(2) Covered contract.--The term `covered contract' means
any contract, including a fixed-price or cost-reimbursement
contract, or any other agreement for the procurement of goods
or services by or for the Department of Defense.
``(3) Covered emergency.--The term `covered emergency'
means an emergency or disaster, including an emergency or major
disaster as defined in section 102 of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122),
which prevents the employees of a contractor of the Department
of Defense or the employees of a subcontractor (at any tier) of
such a contractor from performing work under a covered
contract, as determined by the Secretary.
``(4) Covered site.--The term `covered site' means any
government-owned, government-leased, contractor-owned, or
contractor-leased facility approved by the Federal government
for contract performance.
``(5) Disclosure statement.--The term `disclosure
statement' means a Disclosure Statement described in section
9903.202-1(a) of title 48, Code of Federal Regulations.
``(6) Minimum applicable contract billing rate.--The term
`minimum applicable contract billing rate' means a rate
capturing the financial impact incurred as a consequence of
keeping the employees or subcontractors (at any tier) of the
contractor in a ready state, including the base hourly pay rate
such employees and employees of such subcontractors, indirect
costs, general and administrative expenses, and other relevant
costs.
``(7) Ready state.--The term `ready state' means able to
mobilize in a timely manner to perform under a covered
contract.
``(8) Small business contract.--The term `small business
contractor' means a contractor that is a small business concern
(as such term is defined under section 3 of the Small Business
Act (15 U.S.C. 632).''.
(b) Clerical Amendment.--The table of sections for subchapter II of
chapter 134 of title 10, United States Code, is amended by adding at
the end the following new item:
``2265. Special emergency reimbursement authority.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Armed Services.
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