§ 1815.608-72 - Uncompensated overtime.

(a) The contracting officer shall conduct a risk assessment of any proposal received for technical and professional services that includes unrealistically low labor rates, or uses a high level of uncompensated overtime (as defined in the provision at 48 CFR 1852.237-72, Identification of Uncompensated Overtime). Such practices on the part of the contractor may jeopardize its ability to successfully perform contract requirements due, for example, to its inability to hire or retain qualified personnel. Such a risk assessment shall be performed as part of the technical evaluation and considered in proposal evaluation (see 48 CFR (FAR) 22.11 and 48 CFR 1837.102(b)).

(b) The risk assessment should consider factors such as—

(1) The number of hours that current employees have been accustomed to working, and the normal number of work hours for the local industry;

(2) The turnover rates for the firm and for the industry in the firm's geographical area;

(3) Whether employees involved in uncompensated overtime share directly in the firm's profits; e.g., through employee-ownership or a profit-sharing plan;

(4) Whether the contract period of performance is short, or whether uncompensated overtime will be used for only a relatively short period of time;

(5) Whether the firm uses approximately the same level of uncompensated overtime in its non-government business;

(6) Any potential for decline in quality or safety both during performance and in any deliverable produced; and

(7) The ability of the contractor to respond to an emergency requiring additional effort.