FAR 52.216-31 Time-and-Materials/Labor-Hour Proposal Requirements (Part 3)

Commercial Item Acquisition NOTE: This is the third in a three-part series on Time-and-Materials/Labor-Hour Proposal Requirements.  Part 1 addressed non-commercial item acquisition with adequate price competition (FAR 52.215-29).  Part 2 addressed non-commercial item acquisitions where there is not adequate price competition (FAR 52.216-30).  This Part 3 addresses commercial item acquisitions at FAR 52.216-31 (which must, by law, be awarded based on adequate price competition).    Applicability: As stated at FAR 16.601(f) (3), the solicitation provision at FAR 52.216 31 applies to Time-and-Materials/Labor Hour (T&M./LH) solicitations for all acquisitions contemplating the use of a Commercial Time-and-Materials or Labor-Hour contract.   Key Requirements: T&M/LH contracts provide for reimbursement to the contractor based on a fixed hourly rate for each labor category listed in the contract.  Under the current FAR … Continue reading

FAR 52.216-30 Time-and-Materials/Labor-Hour Proposal Requirements (Part 2)

Non-Commercial Item Acquisition with Adequate Price Competition NOTE: This is the second in a three-part series on Time-and-Materials/Labor-Hour Proposal Requirements.  Part 1 addressed non-commercial item acquisition with adequate price competition. This Part 2 addresses non-commercial item acquisitions where there is not adequate price competition (FAR 52.216-30).  Part 3 will address commercial item acquisitions at FAR 52.216-31 (which must, by law, be awarded based on adequate price competition).    Applicability: As stated at FAR 16.601(f)(2), the solicitation provision at FAR 52.216 30 applies to Time-and-Materials/Labor Hour (T&M./LH) solicitations for non-commercial item acquisitions, where the price is not expected to be based on adequate price competition.   Key Requirements: T&M/LH contracts provide for reimbursement to the contractor based on a fixed hourly rate for each labor category listed in the … Continue reading

FAR 52.216-29, Time-and-Materials/Labor-Hour Proposal Requirements

Non-Commercial Item Acquisition with Adequate Price Competition NOTE: This is the first in a three-part series on Time-and-Materials/Labor-Hour Proposal Requirements.  This Part 1 addresses non-commercial item acquisition with adequate price competition.  Part 2 will address non-commercial item acquisitions where there is not adequate price competition (FAR 52.216-30).  Part 3 will address commercial item acquisitions at FAR 52.216-31 (which must, by law, be awarded based on adequate price competition).    Applicability: As stated at FAR 16.601(f)(1), the solicitation provision at FAR 52.216 29 applies to Time-and-Materials/Labor Hour (T&M./LH) solicitations for non-commercial item acquisitions, where the price is expected to be based on adequate price competition.   Key Requirements: T&M/LH contracts provide for reimbursement to the contractor based on a fixed hourly rate for each labor category listed in the … Continue reading

FAR 52.212-4 Contract Terms and Conditions—Commercial Items: Alternate I Payments Under Time-and-Materials and Labor-Hour Contracts for Commercial Items

Applicability: FAR 52.212-4 applies to acquisitions for commercial items.  Alternate I of that clause is included when the acquisition of commercial items will be awarded using a time-and-materials (T&M) or labor-hour contract (LH).   Key Requirements:  Alternate I specifies how payments will be made for both the Time and the Materials elements of a T&M contract awarded under FAR Part 12, i.e., the acquisition of commercial items.  Some of these requirements are the same as the requirements in the T&M payments clause for the acquisition of noncommercial items at FAR 52.232-7.  However, there are also some significant differences, particularly in the area of materials.  These key differences are highlighted below.  Alternate I also includes requirements that address Inspection/Acceptance. Ceiling Price, Underpayments/Overpayments, and Terminations.  While these … Continue reading

FAR 52.232-7: Payments Under Time-and-Materials and Labor-Hour Contracts

Applicability: This FAR clause specifies the payment terms for Time-and-Materials (T&M) and Labor-Hour (LH) contracts that were not acquired using FAR Part 12 (commercial items).  The clause is included in solicitations and contracts when a time-and-materials or labor-hour contract is contemplated (other than a FAR Part 12 acquisition).   Key Requirements:  A T&M contract is comprised of two key elements:  (1) Time, and (2) Materials (note that a labor hour contract is a T&M contract without the materials).  The T&M/LH payments clause specifies how payments will be made for both the Time and the Materials elements of the contract.The clause at FAR 52.215-7 also includes key elements related to other areas, including assignment and release of claims; ceiling price; and the timing of interim payments. While … Continue reading