DFARS 252.216-7002 Alternate A, Time-and-Materials/Labor-Hour Proposal Requirements—Other Than Commercial Acquisition with Adequate Price Competition.

In plain English

This DFARS clause replaces paragraph (c) of the FAR time-and-materials/labor-hour proposal provision when there is adequate price competition and the acquisition is not commercial. It requires the offeror to build fixed hourly rates using separate labor categories for the offeror, each subcontractor, and any labor transferred between the offeror's divisions, subsidiaries, or affiliates under common control. This matters because it dictates how rates must be structured in a proposal for these types of contracts.

Applies to: Offerors on non-commercial time-and-materials or labor-hour acquisitions with adequate price competition

What it requires

• Establish fixed hourly rates
• Use separate rates for each category of labor performed by each subcontractor
• Use separate rates for each category of labor performed by the offeror
• Use separate rates for each category of labor transferred between divisions, subsidiaries, or affiliates of the offeror under common control

Key terms: fixed hourly rates · category of labor · subcontractor · divisions, subsidiaries, or affiliates · common control

Written by AI from this section's text. A guide, not legal advice: the text below rules.