In a scenario where the contractor's project manager grants the afternoon off and the government program manager grants a 59-minute early dismissal, which statement is correct regarding charging time off to the government contract?

In a scenario where the contractor's project manager grants the afternoon off and the government program manager grants a 59-minute early dismissal, which statement is correct regarding charging time off to the government contract?

• A. The contractor may charge the time off to the government contract.
• B. The contractor may not charge the time off to the government contract.
• C. The government must reimburse the contractor.
• D. Time off is prohibited for both parties.

Answer: (B)

The main idea is that labor charged to a government contract must be for work actually performed or for costs specifically authorized in the contract. When someone grants time off, whether the contractor’s project manager or the government program manager, that period is non-working time. Without a contract clause that funds paid leave or a formal contract modification that reimburses such time, there’s no basis to bill those hours to the contract. The contractor would typically bear the cost as overhead or non-billable time, rather than charging it as direct labor on the government contract. Only if there were a paid leave policy authorized and funded by the contract, or a formal government-approved adjustment, would making a billable claim be appropriate. In this scenario, there isn’t such authorization, so charging the time off to the contract isn’t permitted.

The main idea is that labor charged to a government contract must be for work actually performed or for costs specifically authorized in the contract. When someone grants time off, whether the contractor’s project manager or the government program manager, that period is non-working time. Without a contract clause that funds paid leave or a formal contract modification that reimburses such time, there’s no basis to bill those hours to the contract. The contractor would typically bear the cost as overhead or non-billable time, rather than charging it as direct labor on the government contract. Only if there were a paid leave policy authorized and funded by the contract, or a formal government-approved adjustment, would making a billable claim be appropriate. In this scenario, there isn’t such authorization, so charging the time off to the contract isn’t permitted.