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Armed Services Board of Contract Appeals (ASBCA) and COVID-19 Lockdowns

ASBCA finds Contractor allowed to seek reimbursement for costs of keeping employees ready during COVID-19 lockdowns.

By James L. McGovern, CPA/CFF, CVA, Fellow
March 2024

In the Appeal of Aviation Training Consulting, LLC (ASBCA No. 63634) Aviation Training Consulting, LLC (“ATC”) seeks an equitable adjustment pursuant to Section 3610 of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, Pub. L. No. 116-136, 134 Stat. 281, to compensate for its increased costs to keep its workforce in ready state during the COVID-19 pandemic. The Government sought a motion to dismiss ATC’s request for relief claiming, “the Board does not have subject matter jurisdiction [] to make an award to [appellant] under Section 3610 of the CARES Act.”

ASBCA Appeal

The Board rejected the Government’s motion to dismiss stating “Section 3610 provides to an agency the discretion to modify the terms and conditions of a government contract to reimburse the contractor for paid leave, related to the COVID–19 public health emergency, that the contractor provided to certain employees or subcontractors. Consequently, a claim presented to a contracting officer by a government contractor for Section 3610 relief is a claim “relating to a contract” within the meaning of the CDA. Therefore, the Board possesses jurisdiction pursuant to the CDA to entertain an appeal from a decision by a contracting officer denying a Section 3610 claim.”

Click here pdf document for a copy of the Court’s decision in
Appeal of Aviation Training ASBCA No. 63634

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