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You are here: Home / Government Contracting News / Pentagon starts bailing out companies that have lost business due to coronavirus

June 24, 2020 By cs

Pentagon starts bailing out companies that have lost business due to coronavirus

The Pentagon has begun to bail out U.S. companies that have seen large parts of their business dry up amid the coronavirus pandemic, in a bid to make sure they can still build weapons. 

Officials have announced that five mid-tier defense companies had received a total of $135 million to “help sustain defense-critical workforce capabilities in body armor, aircraft manufacturing, and shipbuilding,” according to a Defense Department statement.  “These actions will help to retain critical workforce capabilities throughout the disruption caused by COVID-19 and to restore some jobs lost because of the pandemic,” Lt. Col. Mike Andrews, a Defense Department spokesman, said in the statement.

Meanwhile, a senior Pentagon official told lawmakers that DoD plans to ask Congress for money to reimburse many of its contractors for COVID-related expenditures; for example, wages paid to keep employees on the payroll despite idled production lines and vacated offices; purchases of personal protective gear, and alterations to factory and other work spaces for social distancing.

These moves will buttress earlier Pentagon efforts to shore up its COVID-rattled contractors, including paying firms more money up front and awarding multibillion-dollar contracts earlier than planned.

Keep reading this article at: https://www.defenseone.com/business/2020/06/pentagon-starts-bailing-out-companies-have-lost-business-due-coronavirus/166106/

Filed Under: Government Contracting News Tagged With: CARES Act, coronavirus, COVID-19, DoD, industrial base, pandemic, payments, Pentagon

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