UFP

Uncompensated Overtime refers to hours worked by exempt employees beyond the standard work week for which no additional compensation is paid. In government contracting, UFP considerations arise when contractors propose labor rates that effectively include uncompensated overtime as part of their pricing strategy.

When proposing uncompensated overtime, contractors must ensure proposed hours are realistic and that cost proposals properly reflect the effective hourly rates. Government evaluators assess whether UFP assumptions are reasonable and sustainable. Excessive reliance on uncompensated overtime can raise realism concerns and may indicate understaffing or unrealistic performance assumptions.