Sign In
  • Question

    It pertains to the LH and T&M D&F Is there any policy on the DPC website to ensure that there is no active regulations or anything that governs the D&F approval process? I've checked but have been unable to find any information aside for the FAR/DFARs on this


    Answer

    I could not find policy for Time-and-Material/Labor-hour contracts on DPC's website.   However, the DOD Guide on Using Incentive and Other Contract Types dated 1 April 2016, does make the point that the T&M/LH contract type is the least preferred, and also reiterates that a D&F is required pursuant to FAR/DFARS.  More specifically, that pursuant to FAR 16.601(d), in order to use a T&M contract, the Contracting Officer must prepare a determination and findings explaining why no other contract type is suitable and that must be approved by the appropriate official(s). 

    APPLICABLE REFERENCES:

    FAR 16.601 (d) Limitations. A time-and-materials contract or order may be used only if-

               (1) The contracting officer prepares a determination and findings that no other contract type is suitable. The determination and finding shall be-

                    (i) Signed by the contracting officer prior to the execution of the base period or any option periods of the contracts; and

                    (ii) Approved by the head of the contracting activity prior to the execution of the base period when the base period plus any option periods exceeds three years; and

               (2) The contract or order includes a ceiling price that the contractor exceeds at its own risk. Also see 12.207 (b) for further limitations on use of time-and-materials or labor-hour contracts for acquisition of commercial products and commercial services.

    DFARS 216.601 Time-and-materials contracts. 

    (d) Limitations.

    (i)(A) Approval of determination and findings for time-and-materials or labor-hour contracts.

    (1) Base period plus any option periods is three years or less.

    (i) For contracts (including indefinite-delivery contracts) and orders in which the portion of the requirement performed on a time-and-materials or labor-hour basis exceeds $1 million, the approval authority for the determination and findings shall be the senior contracting official within the contracting activity. This authority may not be delegated.

    (ii) For contracts (including indefinite-delivery contracts) and orders in which the portion of the requirement performed on a time-and-materials or labor-hour basis is less than or equal to $1 million, the determination and findings shall be approved one level above the contracting officer.

    (2) Base period plus any option periods exceeds three years. The authority of the head of the contracting activity to approve the determination and findings may not be delegated.

    Open full Question Details
Chat with DAU Assistant
Bot Image