Low RiskFARcontract-types

52.216-31Time-and-Materials/Labor-Hour Proposal Requirements—Commercial Acquisition.

Researched by the BidStride Research Team

What This Clause Requires

FAR 52.216-31 — Time-and-Materials/Labor-Hour Proposal Requirements—Commercial Acquisition.. This clause is part of the Federal Acquisition Regulation and may be included in government contracts as a solicitation provision or contract clause.

Official Regulation Text

52.216-31 Time-and-Materials/Labor-Hour Proposal Requirements—Commercial Acquisition. As prescribed in 16.601(f)(3), insert the following provision: Time-and-Materials/Labor-Hour Proposal Requirements—Commercial Acquisition (NOV 2021) (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. (End of provision) [71 FR 74665, Dec. 12, 2006, as amended at 72 FR 6882, Feb. 13, 2007; 78 FR 13767, Feb. 28, 2013; 86 FR 61035, Nov. 4, 2021]

Source: eCFR, 48 CFR 52.216-31 (https://www.ecfr.gov/current/title-48/section-52.216-31)

Compliance Checklist

  • (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.

Flow-Down to Subcontractors

No flow-down required

This clause applies only to the prime contract and does not need to be flowed down to subcontractors.

Frequently Asked Questions

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This summary is for informational purposes only and reflects the BidStride Research Team's plain-English interpretation of the regulation. It is not legal advice and does not constitute an attorney-client relationship. Always consult the official Federal Acquisition Regulation (FAR) or Defense Federal Acquisition Regulation Supplement (DFARS) text and qualified legal counsel for compliance decisions.