01-22

Procurement Information Circular


October 16, 2001

                                                                                               

ALLOWABILITY OF CONTRACTOR COSTS FOR EMPLOYEES WHO PERFORM ACTIVE MILITARY DUTY IN CONJUNCTION WITH THE CURRENT NATIONAL EMERGENCY

PURPOSE:  To provide guidance on the allowability of costs for employees who perform active military duty in conjunction with the current national emergency.

BACKGROUND:  Based on the President’s recent decision to authorize the call-up of members of the National Guard and Armed Forces Reserves to active military duty in conjunction with the national emergency, questions have arisen regarding the allowability of various contractor costs for this category of employee. In similar past mobilizations, many companies have chosen to continue certain fringe benefits (e.g. health insurance) for employees who have been called to active military duty and/or to pay these individuals the difference between their civilian salary and military salaries. The Under Secretary of Defense, Acquisition and Technology issued guidance to the DoD acquisition community in a memorandum dated October 5, 2001.

GUIDANCE:  NASA joins the DoD in applauding these voluntary corporate efforts to help mitigate the hardships that the call-up to active military duty places upon Guard and reserve members and their families. These types of extended military leave benefits are to be considered as allowable costs pursuant to Federal Acquisition Regulation 31.205-6, “Compensation for Personal Services.”

EFFECTIVE DATE:  This PIC is effective as dated and shall remain in effect for the duration of the current national emergency.

HEADQUARTERS CONTACT:  Ronald Lentz, Code HK, (202) 358-1064, e-mail: rlentz@hq.nasa.gov.

 

Tom Luedtke
Associate Administrator for Procurement