TITLE: CIB 96-15 - Blanket Waiver of 31.205-6(g)(3) Cost Allow ability Limitations
MEMORANDUM FOR CONTRACTING OFFICERS AND NEGOTIATORS TO: Distribution List FAC From: M/OP/OD, Marcus L. Stevenson, Procurement Executive
Subject: Blanket Waiver of 31.205-6(g)(3) Cost Allow ability Limitations
CONTRACT INFORMATION BULLETIN 96-15
One of the FASA-driven changes to the FAR cost principles, set forth in section 31.205-6(g)(3), could have a negative impact on our procurements. This section adds severance payments to foreign nationals overseas to the list of unallowable costs if such payments exceed severance pay levels for similar work in the United States.
FAR 37.113-1(a) permits agency heads or their designees to waive this requirement for overseas support services contracts, which include, but are not limited to, contracts for security, custodial, and motor pool maintenance services. Accordingly, a waiver was granted by the Procurement Executive on March 15, 1996, and a copy is attached to this CIB.
