[Request for Advance Decision for Approval of SCS Proposal To Modify Construction Contracts]

The Department of Agriculture's Soil Conservation Service (SCS) requested an advance decision on whether it should modify certain fixed-price construction contracts executed before January 1, 1986, specifically the provisions requiring premium payments for overtime hours contractors' employees worked without requiring consideration from the contractors. GAO noted that legislation became effective on January 1, 1986, that deleted the requirement for the payment of overtime wages for hours worked in excess of 8 per day. GAO concluded that: (1) Congress did not intend for the legislation to be retroactive; and (2) the difference between the overtime provisions in the contracts and the desire to make the old contracts conform to the overtime amendments was not sufficient justification for modifying the old contracts without adequate consideration. Accordingly, SCS should not modify contracts by deleting daily overtime pay provisions without receiving adequate consideration in return.