[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR37.115-2]



[Page 761]

 

            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]