Based on the background provided, I don't believe the same line item can be both O & A and T&M. Specifically, T&M requires that a contractor submit a voucher for payment. O & A line items are not billed on vouchers. T&M line items provide for billing based on direct labor and actual cost of materials. O & A line items require negotiation (unless we agree with the contractor's proposal). T&M does not require proposal submission. O & A does require proposal submission. Do you concur that a Contract Line Item cannot be both T&M and O&A? Also, can O & A be anything other than FFP?
Paragraph (a) of the clause at DFARS 252.217-7028 states that over and above work "means work discovered during the course of performing overhaul, maintenance, and repair efforts that is...not covered by the line item(s) for the basic work under the contract." In other words, the clause is not directly tied to a specific line item. The clause should be included in Section I and apply to the overall scope of work in the contract. So to address your question, the line item is not actually "both T&M and O&A," because time and materials is a contract type (FAR Part 16/DFARS Part 216) while over and above is a "special contracting method" (FAR Part 17/DFARS Part 217).
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