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

FAR 52.216-30 Time-and-Materials/Labor-Hour Proposal Requirements—Other Than Commercial Acquisition Without 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 without adequate price competition for a non-commercial acquisition. It requires offerors to list separate fixed hourly rates, broken down by labor category, for the offeror, each subcontractor, and each commonly controlled division, subsidiary, or affiliate. It also limits profit on certain interorganizational transfers unless a commercial-service exception applies.

Applies to: Offerors responding to solicitations for Time-and-Materials or Labor-Hour contracts other than commercial acquisitions without adequate price competition

What it requires

  • Specify separate fixed hourly rates in the offer that include wages, overhead, general and administrative expenses, and profit for each category of labor to be performed by the offeror, each subcontractor, and each commonly controlled division, subsidiary, or affiliate.
  • For services transferred between commonly controlled divisions, subsidiaries, or affiliates, exclude profit for the transferring organization unless the commercial-service exception applies.
  • For those same transfers, profit for the prime Contractor may be included.

Key terms: Time-and-Materials · Labor-Hour · fixed hourly rates · common control · commercial service

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)(2), insert the following provision:

Time-and-Materials/Labor-Hour Proposal Requirements—Other Than Commercial Acquisition Without 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 separate fixed hourly rates in its offer that include wages, overhead, general and administrative expenses, and profit for each category of labor to be performed by—

(1) The offeror;

(2) Each subcontractor; and

(3) Each division, subsidiary, or affiliate of the offeror under a common control.

(c) Unless exempt under paragraph (d) of this provision, the fixed hourly rates for services transferred between divisions, subsidiaries, or affiliates of the offeror under a common control—

(1) Shall not include profit for the transferring organization; but

(2) May include profit for the prime Contractor.

(d) The fixed hourly rates for services that meet the definition of “commercial service” at Federal Acquisition Regulation 2.101 that are transferred between divisions, subsidiaries, or affiliates of the offeror under a common control may be the established catalog or market rate when it is the established practice of the transferring organization to price interorganizational transfers at other than cost for commercial work of the offeror or any division, subsidiary or affiliate of the offeror under a common control.

(End of provision)

Sections it refers to

Sections that refer to it

  • 16.601 Time-and-materials contracts.

← 52.216-29 Time-and-Materials/Labor-Hour Proposal Requirements—Other Than Commercial Acquisition With Adequate Price Competition. · 52.216-31 Time-and-Materials/Labor-Hour Proposal Requirements—Commercial Acquisition. →

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 52.216-30 Time-and-Materials/Labor-Hour Proposal Requirements—Other Than Commercial Acquisition Without Adequate Price Competition · SpendQuery