[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR37.115-2]

[Page 737]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 37_SERVICE CONTRACTING--Table of Contents
 
                 Subpart 37.1_Service Contracts_General
 
Sec.  37.115-2  General policy.

    (a) Use of uncompensated overtime is not encouraged.
    (b) When professional or technical services are acquired on the 
basis of the number of hours to be provided, rather than on the task to 
be performed, the solicitation shall require offerors to identify 
uncompensated overtime hours and the uncompensated overtime rate for 
direct charge Fair Labor Standards Act--exempt personnel included in 
their proposals and subcontractor proposals. This includes uncompensated 
overtime hours that are in indirect cost pools for personnel whose 
regular hours are normally charged direct.
    (c) Contracting officers must ensure that the use of uncompensated 
overtime in contracts to acquire services on the basis of the number of 
hours provided will not degrade the level of technical expertise 
required to fulfill the Government's requirements (see 15.305 for 
competitive negotiations and 15.404-1(d) for cost realism analysis). 
When acquiring these services, contracting officers must conduct a risk 
assessment and evaluate, for award on that basis, any proposals received 
that reflect factors such as:
    (1) Unrealistically low labor rates or other costs that may result 
in quality or service shortfalls; and
    (2) Unbalanced distribution of uncompensated overtime among skill 
levels and its use in key technical positions.

[62 FR 44815, Aug. 22, 1997, as amended at 64 FR 51842, Sept. 24, 1999]