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FAR Overtime Bill Rates

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Inquiry: I wonder if you could help with a related problem/question. We're a staffing company and provide temps to Federal agencies on a per hour basis. The question relates to Overtime. Obviously we pay the employee time and a half for overtime work. Does the FAR address any formula for how we compute the Overtime Bill Rate? We've heard different things from different contracting officers and would like a FAR reference to make sure our pricing proposals are consistent with the FAR. To be more specific, several contracting officers have told us to simply increase our bill rate for normal hours by time and a half. Other CO's have told us that is illegal? But have not been able to point to a particular FAR section to guide us in making the correct analysis and computation of a proper Overtime rate. Any guidance or referral to the proper source would be appreciated Response: I have found no uniform guidelines in this area. One way is for the premium portion of Overtime Direct Labor to be treated as ODC, rather than Direct Labor. Also, to the extent the contractor can identify other additional fringe costs, these could also be added to ODC.


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