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FAR and DFARS › FAR Part 52: Solicitation Provisions and Contract Clauses › Subpart 52.2

FAR 52.216-29 Time-and-Materials/Labor-Hour Proposal Requirements—Other Than Commercial Acquisition With Adequate Price Competition.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This provision applies when the Government expects to award a Time-and-Materials or Labor-Hour contract from a solicitation that is not a commercial acquisition and has adequate price competition. It requires offerors to state fixed hourly rates that include wages, overhead, general and administrative expenses, and profit, and to identify which labor categories those rates cover. It matters because the offeror's rates and their structure become part of the proposal the Government evaluates.

Applies to: Offerors responding to solicitations for Time-and-Materials or Labor-Hour contracts other than commercial acquisitions with adequate price competition

What it requires

  • Specify fixed hourly rates in the offer that include wages, overhead, general and administrative expenses, and profit
  • Specify whether each fixed hourly rate applies to labor performed by the offeror, subcontractors, and/or divisions, subsidiaries, or affiliates under common control
  • Establish fixed hourly rates using separate rates, blended rates, or a combination of both as described in the provision

Key terms: Time-and-Materials · Labor-Hour · fixed hourly rates · blended rates · separate rates

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

The text

As prescribed in 16.601(f)(1), insert the following provision:

Time-and-Materials/Labor-Hour Proposal Requirements—Other Than Commercial Acquisition With Adequate Price Competition (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;

(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.

(End of provision)

Sections it refers to

  • 16.601 Time-and-materials contracts.

Sections that refer to it

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

← 52.216-28 Multiple Awards for Advisory and Assistance Services. · 52.216-30 Time-and-Materials/Labor-Hour Proposal Requirements—Other Than Commercial Acquisition Without Adequate Price Competition. →

Rule changes for FAR Part 52

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 52.216-29 Time-and-Materials/Labor-Hour Proposal Requirements—Other Than Commercial Acquisition With Adequate Price Competition · SpendQuery