FAR 37.115-3—Solicitation provision.
Plain-English Summary
FAR 37.115-3 tells contracting officers when they must include the solicitation provision at 52.237-10, Identification of Uncompensated Overtime. This section applies to solicitations valued above the simplified acquisition threshold when the government is buying professional or technical services on the basis of the number of hours to be provided. Its purpose is to ensure offerors disclose any uncompensated overtime practices that could affect labor-hour pricing, staffing assumptions, and the realism of proposed hours and rates. In practice, this helps the government evaluate whether proposed labor mixes and pricing reflect actual work effort or rely on reduced-cost labor hours that may distort competition or performance expectations. The rule is narrow but important: it is a mandatory solicitation requirement tied to a specific type of service acquisition and pricing structure, and it supports fair evaluation of hour-based professional or technical service offers.
Key Rules
Mandatory provision use
The contracting officer must insert provision 52.237-10, Identification of Uncompensated Overtime, in covered solicitations. This is not discretionary when the conditions in the rule are met.
Applies above threshold
The requirement applies only to solicitations valued above the simplified acquisition threshold. Solicitations at or below that threshold are outside the scope of this section.
Limited to professional or technical services
The provision is required only for professional or technical services. It does not apply broadly to all service acquisitions.
Hour-based acquisitions only
The rule applies when the services are to be acquired on the basis of the number of hours to be provided. If the acquisition is not structured around labor hours, this provision is not triggered.
Supports evaluation of overtime practices
The provision is intended to identify uncompensated overtime in offerors’ proposed staffing and pricing. This helps the government assess whether proposed hours and rates are realistic and comparable across offers.
Responsibilities
Contracting Officer
Determine whether the acquisition is for professional or technical services, valued above the simplified acquisition threshold, and based on the number of hours to be provided; if so, insert provision 52.237-10 into the solicitation.
Offeror/Contractor
Review the solicitation provision and disclose uncompensated overtime information as required by 52.237-10 when preparing the proposal.
Agency
Ensure acquisition personnel understand when the provision is required and that solicitations for covered services include the mandatory clause/provision language.
Practical Implications
This is a mandatory solicitation check item for hour-based professional or technical service buys above the simplified acquisition threshold.
A common pitfall is overlooking the requirement because the acquisition is labeled as a service buy without recognizing that it is specifically professional or technical and priced by hours.
Another frequent issue is failing to include the provision in solicitations that use labor-hour or staffing-based pricing, which can undermine proposal evaluation and price realism analysis.
Contracting officers should confirm the acquisition structure early, because the requirement turns on both the type of service and the pricing basis.
Offerors should be prepared to explain any uncompensated overtime practices, since the provision can affect how labor rates and proposed hours are interpreted during evaluation.
Official Regulatory Text
The contracting officer shall insert the provision at 52.237-10 , Identification of Uncompensated Overtime, in all solicitations valued above the simplified acquisition threshold, for professional or technical services to be acquired on the basis of the number of hours to be provided.