52.216-31
Time-and-Materials/Labor-Hour Proposal Requirements—Commercial Acquisition
Offerors must propose all-inclusive fixed hourly rates for each labor category and specify whether rates apply to their own employees, subcontractors, or affiliates when bidding on T&M or Labor-Hour commercial contracts.
Overview
FAR 52.216-31 outlines the proposal requirements for solicitations that may result in Time-and-Materials (T&M) or Labor-Hour contracts for commercial acquisitions. This provision requires offerors to submit fixed hourly rates for each labor category, which must be inclusive of all associated costs such as wages, overhead, general and administrative (G&A) expenses, and profit. Additionally, offerors must clearly indicate whether these rates apply to their own employees, subcontractors, or affiliated entities. The intent is to ensure transparency and consistency in pricing for T&M/Labor-Hour contracts involving commercial items.
Key Rules
- Fixed Hourly Rates Requirement
- Offerors must propose fixed hourly rates for each labor category, inclusive of all costs and profit.
- Disclosure of Applicability
- Offerors must specify whether each rate applies to their own personnel, subcontractors, or affiliates.
Responsibilities
- Contracting Officers: Ensure that proposals include the required fixed hourly rates and proper disclosures.
- Contractors: Submit proposals with detailed, all-inclusive hourly rates and specify the applicable labor source for each rate.
- Agencies: Review proposals for compliance with these requirements before contract award.
Practical Implications
- This provision ensures that all cost elements are accounted for in proposed rates, reducing the risk of hidden costs or disputes post-award.
- Contractors must carefully calculate and document their rates and clearly identify the labor source, which can impact pricing and contract administration.
- Failure to comply may result in proposal rejection or delays in the acquisition process.