Surge Labor more than mandatory labor
Started by soo11121 · Mar 28, 2023 · 5 replies
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soo11121
Mar 28, 2023 · 3y ago
I have a LH requirement where the Program Office has surge labor categories that are greater than mandatory base labor amount. The only information I could find about it was in DFARS 17.202-90 Use of surge options. There is pushback from our contracting office however I'm not reading anywhere that surge needs to be less than mandatory base labor.
Context, the Program Office anticipates utilizing surge but is unaware of the extent as the office is being tasked with providing more services that may fluctuate in an upward trajectory (by a little or by a lot) but they don't have an exact amount. Just the estimate
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Vern Edwards
Mar 29, 2023 · 3y ago
Do you have a question?
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soo11121
Mar 29, 2023 · 3y ago
Yes,
Is there anything in the FAR that prevents surge labor cost from exceeding the mandatory labor costs? I have not seen anything but our legal department is pushing back on that asking for the surge labor costs to be reduced.
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Vern Edwards
Mar 29, 2023 · 3y ago
soo11121 said:
Is there anything in the FAR that prevents surge labor cost from exceeding the mandatory labor costs?
The term "surge labor" does not appear anywhere in the FAR System (the FAR and its supplements), so I presume there is nothing in the FAR that prevents surge labor cost from exceeding mandatory labor costs.
Are you sure "surge labor" is the right term?
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Vern Edwards
Mar 29, 2023 · 3y ago
I did find coverage of "surge option" in two places in the DFARS. See 217.208-70 and 252.217-7001. They do not expressly prohibit a surge option in excess of the base contract maximum. They speak of a surge capacity option as a percentage of the base, and your legal is apparently objecting to a percentage larger than 100%. I don't know why, but it may be due to a general sense that such an option would be inappropriate. It may seem illogical to them that a surge would exceed the contract base.
Have you asked their reasons?
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joel hoffman
Mar 29, 2023 · 3y ago
Is there a contract already or is this an ongoing acquisition? You said the legal office is asking for the surge labor costs to be reduced.