37.113-1 Waiver of cost allowability limitations
Source: FAR 37.113-1 on acquisition.gov
Agency heads may waive severance payment cost limits for foreign nationals on certain overseas contracts, but only before award and with specific exclusions.
Overview
FAR 37.113-1 outlines the conditions under which the head of an agency may waive the cost allowability limitations on severance payments to foreign nationals, as specified in FAR 31.205-6(g)(6). This waiver is applicable to contracts that provide significant support services for U.S. armed forces or executive agency employees stationed or deployed outside the United States, and where contract performance occurs wholly or partly outside the U.S. The waiver must be granted before contract award and is not available for military banking contracts or for severance payments to foreign nationals in the Philippines under certain DoD service contracts related to the termination of U.S. military basing rights.
(a) The head of the agency may waive the 31.205-6(g)(6) cost allowability limitations on severance payments to foreign nationals for contracts that-
(1) Provide significant support services for-
(i) Members of the armed forces stationed or deployed outside the United States, or
(ii) Employees of an executive agency posted outside the United States; and
(2) Will be performed in whole or in part outside the United States.
(b) Waivers can be granted only before contract award.
(c) Waivers cannot be granted for-
(1) Military banking contracts, which are covered by https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section3744&num=0&edition=prelim" target="_blank">10 U.S.C. 3744(d); or
(2) Severance payments made by a contractor to a foreign national employed by the contractor under a DoD service contract in the Republic of the Philippines, if the discontinuation of the foreign national is the result of the termination of basing rights of the United States military in the Republic of the Philippines (section1351(b) of Public Law102-484, http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section1592&num=0&edition=prelim" target="_blank">10 U.S.C.1592, note).