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  • Question

    Is the contractor entitled to compensable extended overhead for the time they were working on in scope contract work? Or is that considered concurrent work so they are entitled to time only?


    Answer

    It depends on what the contract says.  If the contractor is a "daily rate contractor" this generally means they are paid a rate that is fully burdened and determined reasonable at the time of contract award or signing of the grant agreement and they would not be entitled to extended overhead on in scope work.  If they are alleging government caused delay and have unabsorbed overhead costs this is a different situation and the contractor might be able to recover some of these costs using the Eichleay Formula method.
     

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