FAR 52.237-10 - Identification of Uncompensated Overtime

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Prescribed in 37.115-3
Effective Date:	1 October 1997
Clause or Provision:	Provision
Provision or Clause Number:	52.237-10 - Identification of Uncompensated Overtime
Principle Type And/Or Purpose of Contract:
Required:
Applicable:	Time and Materials/Labor Hour; Time & Material/Labor Hour; Cost Reimbursement, Service; Fixed Price, Service
Optional:	Utility Services; Simplified Acquisition Procedures (Excludes Micro-Purchase); Facilities; Indefinite Delivery; Dismantling, Demolition or Removal of Improvements; Leasing of Motor Vehicles; Fixed Price, Construction; Cost Reimbursement, Construction; Cost Reimbursement, Supply
Subject:	Employment/Labor/Wages
ProcurementType:
Contract Threshold:
Prescription Overview:	Prescription
Clause Overview:	Provision (a) Definitions As used in this provision— (b) “Uncompensated overtime” means the hours worked without additional compensation in excess of an average of 40 hours per week by direct charge employees who are exempt from the Fair Labor Standards Act. Compensated personal absences such as holidays, vacations, and sick leave shall be included in the normal work week for purposes of computing uncompensated overtime hours. “Uncompensated overtime rate” is the rate that results from multiplying the hourly rate for a 40-hour work week by 40, and then dividing by the proposed hours per week. For example, 45 hours proposed on a 40-hour work week basis at $20 per hour would be converted to an uncompensated overtime rate of $17.78 per hour ($20.00 ´ 40 divided by 45 = $17.78). (c) For any proposed hours against which an uncompensated overtime rate is applied, the offeror shall identify in its proposal the hours in excess of an average of 40 hours per week, by labor category at the same level of detail as compensated hours, and the uncompensated overtime rate per hour, whether at the prime or subcontract level. This includes uncompensated overtime hours that are in indirect cost pools for personnel whose regular hours are normally charged direct. (d) The offeror’s accounting practices used to estimate uncompensated overtime must be consistent with its cost accounting practices used to accumulate and report uncompensated overtime hours. (e) Proposals that include unrealistically low labor rates, or that do not otherwise demonstrate cost realism, will be considered in a risk assessment and will be evaluated for award in accordance with that assessment. (f) The offeror shall include a copy of its policy addressing uncompensated overtime with its proposal.
Important Notes/Requirements:	Related Pages Uncompensated Overtime
Subcontract Threshold:
Incorporated by Reference:	Yes
Uniform Contract Format:	L
Editor:	Marshall

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Personal notes.