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viequesboy

Uncompensated overtime

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Background:

I manage a DoD PBSC; FPAF for the Base Support and CPAF for the Range support. The award was made on xx number of PWS (Grounds, communication, Public Work, Radar support, etc ) and not based on number of hours. Additionally, we separately price Contract Task Order (CTOs), based on a separate PWS. We use our FPAF and CPAF staff to support the CTOs

Issue: We recently was challenged by the KO not allowing us to use our bid rate for Exempt Employees on these CTOs. However, I explain that he needs to charge where he works. The KO then agree only if we propose with the adjusted hourly rate since my guy works more than 40 hrs per week on this home annex scope.

I read FAR 37.115 and FAR 52.237-10 and the new paragraph (d) to 37.115-2 and I am confused.

1st - This contract did incorporate FAR 52.237-10 but it WAS NOT awarded on the basis of the number of hours to be provided.

2nd - We have separate PWS for the basic contract and separate PWS for the CTOs. If I have an Exempt employee that works more than 40 hours in support of his home annex and his hourly rate is adjusted, do I have to use that adjusted hourly rate for all proposals even if the work is in support of a second contract?

Although the revised clause requires the contractor to apply the adjusted hourly rate to all proposed hours, I disagree that this applies to my contract since the award was not based on the number of hours to be provided but rather on a scope/position and not a body.

We are compliant and record all the hours worked, if I need to propose the adjusted hourly rate, how should I manage / use such when the adjusted hourly rate will change for all future proposal/CTOs.

Question: Am I required to provide the Govt the hourly rate adjustment from one individual that supports two contracts with the same DoD Customer?

thanks,

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I don't think any one can answer your questions without looking at the contract. However, FAR 52.237-10 is a solicitation provision. It is not a contract clause although many contracting officers and DCAA do not seem to recognize this.

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viequesboy,

You need help and you're not going to get it here. The situation is far too fact-based to give you good answers to your detailed questions. You need "boots on the ground" help. Do you have a good contracts person or compliance person or experienced attorney helping you? If not, I suggest you engage one of them ASAP.

Some general observations that may be helpful --

1. You need to adjust your rates for bidding purposes, but not for charging labor costs. The actual labor costs will be the actual labor costs, based on hours charged. As Retreadfed correctly points out, the requirement you cite is a solicitation provision, not a contract clause. You need to comply with the requirements of that solicitation provision when submitting a bid/offer, but not afterwards.

2. BUT if you want to record OT labor hours by exempt salaried employees and you want those hours to carry a cost, then you need to do one of two things: Pay the exempt salaried employees for their OT hours (or as it's now called, Extended Work Week hours) OR figure out a "total time accounting" solution that addresses the allocation of salary across total recorded hours (both straight time hours and Uncompensated OT hours).

3. If you want to figure out a total time accounting solution you have several available options, each of which has pros and cons. One of those options is to pro-rate the hours from X to the standard 40 hours per week, another is to adjust the hourly rate, and there are others available as well. The one that's best for your situation is the one that's best for your situation.

4. You are not required to use total time accounting unless you are required by your auditors to use total time accounting. The DCAA Contract Audit Manual describes when a DCAA auditor will "recommend" that you use total time accounting. And the CAM will also tell you what total time accounting options are available to you and what DCAA thinks of those options.

A good adviser would tell you the same things I just posted, and then give you a recommendation as to how to address your questions/concerns/challenges based on the application of the guidance to your unique situation.

Hope this helps.

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This is so complex to write it all. It will be nice if someone would be willing to give me a call to discuss. If so, send me an email notice to .........@........

Thanks,

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