Time-and-Materials Task Orders Clause Samples
A Time-and-Materials Task Orders clause defines the terms under which work is performed and billed based on the actual time spent by personnel and the materials used. Under this arrangement, the contractor is compensated for labor at specified hourly rates and reimbursed for materials at cost, often with a cap or ceiling price set for each task order. This clause is commonly used when the exact scope or duration of work cannot be precisely estimated in advance, providing flexibility for both parties while ensuring that costs are tracked and controlled.
Time-and-Materials Task Orders. For Time-and-Materials (T&M) task order solicitations (including Labor Hour orders as defined by FAR 16.602), the contractor will multiply the quantity of hours required under each labor category against the rate listed in their price schedule (Attachment J.1) or as negotiated, such as when the contractor elects to propose lower rates for the task order or different rates to reflect specialized labor categories/labor categories with special clearances, etc. The cumulative extended total of all labor categories ordered plus travel and ODCs will define the task order- ceiling price. The government will reimburse the contractor as provided under FAR 52.232-7, Payments under T&M and Labor-Hour Contracts (Aug 2012).
Time-and-Materials Task Orders. (1) The Subcontractor will be reimbursed for direct labor effort actually expended in performing task orders that are priced on a Time and Materials basis at the Fixed Hourly Rates stated in the task orders. Reimbursements to the Subcontractor for direct labor effort shall not exceed the amount stated in each task order as the maximum amount of the University’s liability for Direct Labor Charges.
(2) If Other Direct Charges (materials) are needed for performance of work called for in time and materials task orders and if the Fixed Hourly Rates listed in Appendix E do not include an allocation for such costs, funds may be allotted in task orders for reimbursement of such charges. The Subcontractor shall only be reimbursed for Other Direct Charges when funds are allotted in task orders. Reimbursement to the Subcontractor for Other Direct Charges shall be for actual cost and shall not exceed the amount stated in each task order as the maximum amount of the University’s liability for Other Direct Charges.
(3) Direct labor charges or other direct charges that exceed the stated maximum amounts for each category shall not be reimbursed by the University to the Subcontractor even if the task order ceiling price has not been breached.
(4) The Cost Principles and Procedures of Subpart 31.2 of the Federal Acquisition Regulation in effect on the date of this Agreement shall be the basis for establishing allowability and allocability for costs. Profit shall not be paid on reimbursements for other direct charges.
(5) The total cost to the University for the performance of work called for under time and materials task orders issued under this Agreement shall not exceed the ceiling price set forth in each task order. If at any time prior to the completion date of a task order the Subcontractor has reason to believe that the work cannot be completed within the maximum amounts stated for direct labor charges or other direct charges of the stated ceiling price, he shall promptly notify the University Contract Administrator in writing providing either a request to reallocate the maximum amounts for direct labor charges and other direct charges or a revised estimate of the total cost to complete the work, including supporting reasons and documentation.
(6) The University will not pay the Subcontractor any amount in excess of the ceiling price set forth in each task order. The Subcontractor is not obligated to continue performance or otherwise incur costs in excess of the ceili...
Time-and-Materials Task Orders. For Time-and-Materials (T&M) task order solicitations (including Labor Hour orders as defined by FAR 16.602), the contractor will multiply the quantity of hours required under each labor category against the rate listed in their price schedule (Attachment J.1) or as negotiated, such as when the contractor elects to propose lower rates for the task order or different rates to reflect specialized labor categories/labor categories with special clearances, etc. The cumulative extended total of all labor categories ordered plus travel and ODCs will define the task order- ceiling price. The government will reimburse the contractor as provided under FAR 52.232-7, Payments under T&M and Labor-Hour Contracts (Aug 2012).
(1) in FAR 52.232-7, Payments under Time- and-Materials and Labor-Hour Contracts (Aug 2012). The ceiling rates listed, and any lower subsequent rates proposed in response to task order requests must be fully burdened labor rates inclusive of profit, fringe benefits, salary, and indirect costs. These hourly rates are considered fair and reasonable for most work requirements anticipated for T&M task orders issued under the GWAC for Continental United States (CONUS) locations (Note: CONUS is defined as the 48 contiguous states plus the District of Columbia).
(2) Factors such as complexity of work, geographic locations and security clearances authorize OCOs to negotiate Loaded Hourly Labor Rates suited to meet their specific task order requirements. Contractors shall explain in their task order proposals any Loaded Hourly Labor Rates that exceed the rates in the GWAC or for new proposed labor categories (see Article H.