Title: Just In Case Act
Policy area: Armed Forces and National Security

Summary:
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)]

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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.''.
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