Overtime approvals
Overtime can be approved retroactively in government contracts if justified by emergency circumstances, but proper documentation and alignment with FAR 22.103-4(i) are required.
Overview
FAR 18.118 addresses the approval of overtime in government contracts, specifically allowing for retroactive approval when emergency circumstances justify such action. This provision provides flexibility for contracting officers to approve overtime work after it has occurred, provided that the situation meets the criteria for an emergency as referenced in FAR 22.103-4(i). This is particularly relevant during urgent or unforeseen situations where prior approval was not feasible but the work was necessary to meet mission requirements.
Key Rules
- Retroactive Overtime Approval
- Overtime may be approved after the fact if emergency circumstances justify the need.
- Reference to Emergency Criteria
- The justification for retroactive approval must align with the emergency circumstances outlined in FAR 22.103-4(i).
Responsibilities
- Contracting Officers: Must evaluate and document the justification for retroactive overtime approval, ensuring it meets emergency criteria.
- Contractors: Should provide clear documentation and justification for any overtime worked without prior approval, citing emergency circumstances.
- Agencies: Should maintain oversight to ensure retroactive approvals are only granted in legitimate emergencies and are properly documented.
Practical Implications
- This section exists to provide flexibility in urgent situations where overtime is necessary but prior approval is not possible.
- It impacts daily contracting by allowing for after-the-fact approvals, reducing administrative delays during emergencies.
- Common pitfalls include insufficient documentation or failure to meet the emergency justification, which could result in disallowed costs.