37.113-1
Waiver of cost allowability limitations
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.