Class Question: Negotiating OCONUS Rates?

Question from a recent Government Contracting Vehicles Workshop:

“We just got on the GSA Schedule 70 Contract. We were told that our negotiated rates  were only good for CONUS. Now we have to negotiate OCONUS rates through an emod.  They want us to identify each country separately  to see what hardship rates, hazardous living conditions and COLAs are applicable. Can you explain about this process a bit please?  Am a bit confused as to how develop those rates.”


Thank you for your very interesting question.  We asked the Vice President Operations of our company to lend us a hand in finding the answer. The answer came from the Schedule 70 Solicitation. We hope this helps you with your eMod..

26. DANGER PAY. Contractor personnel may be required to perform services in areas designated by the Department of State as Danger Pay or Hardship Posts for a variety of reasons, including contingency operations, humanitarian or peacekeeping operations, military exercises and/or operations, or diplomatic missions. The Department of State Standardized Regulations (DSSR) provides for additional compensation for service in foreign locations where conditions of environment differ substantially from conditions of environment in the continental U.S. that additional compensation is warranted and necessary as a recruitment or retention incentive. Danger Pay and Hardship Post differential rates must be negotiated at the MAS contract level. The Contractor may request these rates upon award or via contract modification any time after award. Applicable SINs under Schedule contracts may include a Danger Pay or Hardship Post differential. If it is included, it is a rate differential. The Ordering Agency Contracting Officer has the authority to determine whether or not it is appropriate for an individual order. For more information on Danger Pay, please see the Department of State’s website:

We are assuming that rates will need to be increased to cover the additional expense of Danger Pay.  We don’t have direct experience with this, but would suggest you work through the State Dept Customer Service.  Each country will have a different Danger Pay increment based on current conditions assessed by DOS.

Wishing you much success.

–Donna Gaillard & Jim Dickensheets

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