Common use of Services Fixed Price Clause in Contracts

Services Fixed Price. Level of Effort (SFP-XXX) Clause a) The Contractor must perform the total level of effort identified in the contract or task order, including the total number of labor hours identified for each labor category. b) The Contractor must accomplish the performance required by the SOW with personnel meeting the qualification requirements identified for each labor category, and in accordance with any performance requirements identified in the SOW. c) The Contractor will receive the total fixed dollar amount identified in the contract or task order, but only upon verification by the Contracting Officer that the Contractor has expended the required level of effort and that the performance has been acceptable. The Government will pay only for productive direct labor hours, which are those hours expended by contractor personnel in directly performing work under the scope of the task order or contract. This does not include sick leave, vacation, holidays, jury duty, military leave, or any other kind of administrative leave, and specifically excludes hours expended by the Contractor on matters related to contract management and administration (which is included in the Contractor’s total price for this effort, and in its hourly rates). d) The Contractor must invoice monthly for the actual hours expended in each labor category. In this instance, the Government will pay at the hourly rate identified in the contract or task order for the number of productive direct labor hours expended and satisfactorily performed in each labor category. e) The Government will incrementally fund the contract or task order. The contract or task order identifies the amount currently available for payment by the Government and allotted to the contract. Under no circumstances the Government will be liable for payment to the Contractor for performance under the contract or task order for any amount in excess of the amount available for payment by the Government and allotted to the contract or task order. The Contractor must not engage in performance that would result in payment in excess of this amount. f) The parties may modify the contract or task order to revise estimated hours assigned to each labor category in the contract or task order, but in no case the variance will result in an increase to the total price of the contract or task order as awarded. g) On rare occasions such as ensuring continuation of services to support the Government’s critical missions, the Government may execute a contract modification to increase the ceiling amount while the Government pursues a follow-on contract or task order. h) Except for specified terms and conditions above, all clauses for T&M apply to this MOA.

Services Fixed Price. Level of Effort (SFP-XXX) Clause a) The Contractor must perform the total level of effort identified in the contract or task order, including the total number of labor hours identified for each labor category. b) The Contractor must accomplish the performance required by the SOW with personnel meeting the qualification requirements identified for each labor category, and in accordance with any performance requirements identified in the SOW. c) The Contractor will receive the total fixed dollar amount identified in the contract or task order, but only upon verification by the Contracting Officer that the Contractor has expended the required level of effort and that the performance has been acceptable. The Government will pay only for productive direct labor hours, which are those hours expended by contractor Contractor personnel in directly performing work under the scope of the task order or contract. This does not include sick leave, vacation, holidays, jury duty, military leave, or any other kind of administrative leave, and specifically excludes hours expended by the Contractor on matters related to contract management and administration (which is included in the Contractor’s total price for this effort, and in its hourly rates). d) The Contractor must may invoice monthly for the actual hours expended in each labor category. In this instance, the Government will pay at the hourly rate identified in the contract or task order for the number of productive direct labor hours expended and satisfactorily performed in each labor category. e) The Government will incrementally fund the contract or task order. The contract or task order identifies the amount currently available for payment by the Government and allotted to the contract. Under no circumstances the Government will be liable for payment to the Contractor for performance under the contract or task order for any amount in excess of the amount available for payment by the Government and allotted to the contract or task order. The Contractor must not engage in performance that would result in payment in excess of this amount. f) The parties may modify the contract or task order to revise estimated hours assigned to each labor category in the contract or task ordercontract, but in no case the variance will result in an increase to the total price of the contract or task order as awarded. g) On rare occasions such as ensuring continuation of services to support the Government’s critical missions, the Government may execute a contract modification to increase the ceiling amount while the Government pursues a follow-on contract or task order. h) Except for specified terms and conditions above, all clauses for T&M apply to this MOA.