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

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

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 tells offerors how to structure pricing when the Government expects to award a Time-and-Materials or Labor-Hour contract from the solicitation. Offerors must give fixed hourly rates that already include wages, overhead, general and administrative expenses, and profit, and must state which types of labor each rate covers. It matters because it shapes how a commercial acquisition offer must present labor pricing.

Applies to: Offerors responding to a solicitation for a Time-and-Materials or Labor-Hour commercial acquisition

What it requires

  • Specify fixed hourly rates in the offer that include wages, overhead, general and administrative expenses, and profit.
  • Specify whether the fixed hourly rate for each labor category applies to labor performed by the offeror, subcontractors, and/or divisions, subsidiaries, or affiliates of the offeror under a common control.

Key terms: Time-and-Materials · Labor-Hour · fixed hourly rates · labor category · common control

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)(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)

Sections it refers to

  • 16.601 Time-and-materials contracts.

Sections that refer to it

  • 16.601 Time-and-materials contracts.

← 52.216-30 Time-and-Materials/Labor-Hour Proposal Requirements—Other Than Commercial Acquisition Without Adequate Price Competition. · 52.216-32 Task-Order and Delivery-Order Ombudsman. →

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