As prescribed in 970.2270–2, the Contracting Officer shall insert the clause at 970.5222–4, Unemployment Compensation, in all solicitations for an M&O contract and in all M&O contracts awarded to a nonprofit entity. When this is included in a contract or solicitation, the Contracting Officer shall fill in the appropriate number of calendar days.
Unemployment Compensation (December 2024)
(a) When under state law the contractor is permitted the option to pay unemployment claims either through the state unemployment insurance tax (pay in) or by reimbursing the state for actual claims paid out to former employees (opt out), the contractor shall provide the following:
(1) Statement of Coverage. The statement of coverage shall identify whether the contractor will opt into the state unemployment fund through payment of the unemployment insurance tax or opt out by reimbursing the state(s) for actual claims paid. A statement of coverage shall be provided within [ ] calendar days of contract award, contract extension, or exercise of an option.
(2) Change in Election Status. The contractor shall notify the contracting officer no less than [ ] calendar days before state approval is sought to change its pay in or opt out election.
(b) The Government reserves the right to request additional information to assess budgetary and programmatic risks and impact when the contractor chooses to opt out.
(End of clause)
NONE