Is the contractor allowed to charge for the higher AWD rates when the contractor employee has been sent TDY?
It is not reasonable to charge for a higher area wage determination (AWD) amount AND for the per diem amount authorized for the TDY area. That is "double dipping" in that the per diem rate for the TDY area already accounts for the higher incremental living expenses those employees will incur while away from the primary work site. AWDs are prescribed for the geographic area in which most of the work under the contract will be accomplished. Per diem allowances provide for employee living expenses while away from the duty station. Reimbursing the contractor for a higher AWD at a TDY location while also paying per diem would be like increasing the salary of a Dayton-based federal employee who is TDY to NYC to reflect the higher NYC locality pay, while also paying him or her per diem at the NYC rate. It isn't done.
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