TIMEANDMATERIALLABORHOURCONTRACTING.docVIP

TIME AND MATERIAL/LABOR HOUR CONTRACTING FAC 2005-15 Overview: I. Restrictions on Use of TM/LH Contracts A. Basic Restrictions (1) All TM/LH Contracts. TM/LH contracts should be used only if the Contracting Officer executes a DF that no other contract type is suitable (FAR 16.601(d)). A TM/LH contract may be used only when it is not possible at the time of placing the contract to estimate accurately the extent or duration of the work or to anticipate costs with any reasonable degree of confidence (FAR 16.601(c)). Example - A critical piece of power generation hardware has fa