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

Proposing a Simpler Exemption

On November 19, 2012 the Office of Federal Procurement Policy (OFPP) and the Cost Accounting Standards (CAS) Board issued an invitation for public comments concerning a proposed modification to the existing “commercial item” exemption. (77 Fed. Reg. 69422). The proposed change eliminates the detailed listing of permissible contract types included in the exemption found at CFR 9903.201-1(b)(6).  This will likely provide an exemption for more contracts that clearly should not be subject to CAS coverage. The CAS Board “believes that there is an inconsistency in the regulatory text” of the exemption between the current exemption wording and “other applicable statutory and regulatory provisions.”  The Board wants to expand the scope of contracts exempt from CAS and to allow for a more generalized statement. Currently, the exemption … 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