FAR 52.216-29 - T&M/LH Proposal Requirements–Non-commercial Item Acquisition with Adequate Price Competition

From Knowledge base
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Prescribed in 16.601(f)(1)

Effective Date:1 February 2007
Clause or Provision:Provision
Provision or Clause Number: 52.216-29 - T&M/LH Proposal Requirements–Non-commercial Item Acquisition with Adequate Price Competition

Principle Type And/Or Purpose of Contract:
Required:
Applicable:Time and Materials/Labor Hour; Time & Material/Labor Hour
Optional:Utility Services; Simplified Acquisition Procedures (Excludes Micro-Purchase); Facilities; Indefinite Delivery; Dismantling, Demolition or Removal of Improvements; Leasing of Motor Vehicles; Fixed Price, Construction; Cost Reimbursement, Construction; Fixed Price, Service; Cost Reimbursement, Supply; Cost Reimbursement, Service
Subject:Bid & Proposal
ProcurementType:
Contract Threshold:
Prescription Overview:

Prescription

(f) Solicitation provisions.

(1) The contracting officer shall insert the provision at 52.216-29, Time-and-Materials/Labor-Hour Proposal Requirements—Non-Commercial Item Acquisitions With Adequate Price Competition, in solicitations contemplating use of a Time-and-Materials or Labor-Hour type of contract for noncommercial items, if the price is expected to be based on adequate price competition. If authorized by agency procedures, the contracting officer may amend the provision to make mandatory one of the three approaches in paragraph (c) of the provision, and/or to require the identification of all subcontractors, divisions, subsidiaries, or affiliates included in a blended labor rate.

Clause Overview:

Provision

(a) The Government contemplates award of a Time-and-Materials or Labor-Hour type of contract resulting from this solicitation.


(b) The offeror must specify fixed hourly rates in its offer that include wages, overhead, general and administrative expenses, and profit. The offeror must specify whether the fixed hourly rate for each labor category applies to labor performed by—

(1) The offeror;

(2) Subcontractors; and/or

(3) Divisions, subsidiaries, or affiliates of the offeror under a common control;


(c) The offeror must establish fixed hourly rates using—

(1) Separate rates for each category of labor to be performed by each subcontractor and for each category of labor to be performed by the offeror, and for each category of labor to be transferred between divisions, subsidiaries, or affiliates of the offeror under a common control;

(2) Blended rates for each category of labor to be performed by the offeror, including labor transferred between divisions, subsidiaries, or affiliates of the offeror under a common control, and all subcontractors; or

(3) Any combination of separate and blended rates for each category of labor to be performed by the offeror, affiliates of the offeror under a common control, and subcontractors.

Important Notes/Requirements:
Subcontract Threshold:
Incorporated by Reference:Yes
Uniform Contract Format:
Editor:Marshall

Personal notes.