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48 CFR · Federal Acquisition Regulation and Defense supplement

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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.

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56 sections with “Time-and-materials contract”: the first 40

  • FAR 16.601 Time-and-materials contracts.
    (a) Definitions for the purposes of Time-and-Materials Contracts. Direct materials means those materials that enter directly into the end product, or that are used or consumed directly in connection with the furnishing of the end product o…
  • DFARS 216.601 Time-and-materials contracts.
    (d) Limitations. (i)(A) Approval of determination and findings for time-and-materials or labor-hour contracts. (1) Base period plus any option periods is three years or less. (i) For contracts (including indefinite-delivery contracts) and…
  • FAR 12.207 Contract type.
    …e adjustment for the acquisition of commercial products or commercial services. (b)(1) A time-and-materials contract or labor-hour contract (see Subpart 16.6) may be used for the acquisition of commercial services when— (i) The service is…
  • FAR 32.111 Contract clauses for noncommercial purchases.
    …ommunication services by common carriers; and (7) The clause at 52.232-7, Payments under Time-and-Materials and Labor-Hour Contracts, in solicitations and contracts when a time-and-materials or labor-hour contract is contemplated. If the c…
  • FAR 16.307 Contract clauses.
    … Cost and Payment, in solicitations and contracts when a cost-reimbursement contract or a time-and-materials contract (other than a contract for a commercial product or commercial service) is contemplated. If the contract is a time-and-mate…
  • FAR 16.602 Labor-hour contracts.
    Description. A labor-hour contract is a variation of the time-and-materials contract, differing only in that materials are not supplied by the contractor. See 12.207(b), 16.601(c), and 16.601(d) for application and limitations, for time-and…
  • FAR 44.204 Contract clauses.
    …s (including unpriced modifications or unpriced delivery orders) are anticipated; (iv) A time-and-materials contract that exceeds the simplified acquisition threshold; or (v) A labor-hour contract that exceeds the simplified acquisition t…
  • FAR 52.232-7 Payments under Time-and-Materials and Labor-Hour Contracts.
    As prescribed in 32.111(a)(7), insert the following clause: Payments Under Time-and-Materials and Labor-Hour Contracts (NOV 2021) The Government will pay the Contractor as follows upon the submission of vouchers approved by the Contractin…
  • DFARS 242.7000 Contractor business system deficiencies.
    …erformance-based payments, and interim payments under cost-reimbursement, labor-hour, and time-and-materials contracts billed under each of the identified covered contracts. Similarly, the contracting officer shall ensure that the total amo…
  • DFARS 252.242-7005 Contractor business systems.
    …percent from its billings on interim cost vouchers on cost-reimbursement, labor-hour, and time-and-materials contracts until the Contracting Officer has determined that the Contractor has corrected all material weaknesses as directed by the…
  • FAR 16.103 Negotiating contract type.
    …n particular, contracting officers should avoid protracted use of a cost-reimbursement or time-and-materials contract after experience provides a basis for firmer pricing. (d)(1) Each contract file shall include documentation to show why t…
  • FAR 31.103 Contracts with commercial organizations.
    …ontracts performed by commercial organizations and (ii) the cost-reimbursement portion of time-and-materials contracts except when material is priced on a basis other than at cost (see 16.601(c)(3)); (2) Negotiating indirect cost rates (se…
  • DFARS 204.7109 Contract clauses.
    …tions—Cost Vouchers, in solicitations and contracts when a cost-reimbursement contract, a time-and-materials contract, or a labor-hour contract is contemplated.
  • DFARS 212.207 Contract type.
    … of the National Defense Authorization Act for Fiscal Year 2008 (Pub. L. 110-181), use of time-and-materials and labor-hour contracts for the acquisition of commercial services is authorized only for the following: (i) Services acquired fo…
  • FAR 8.404 Use of Federal Supply Schedules.
    …services. (1) The ordering activity shall specify the order type (i.e., firm-fixed price, time-and-materials, or labor-hour) for the services offered on the schedule priced at hourly rates. (2) Agencies shall use fixed-price orders for the…
  • FAR 22.1006 Solicitation provisions and contract clauses.
    … purpose, in solicitations and contracts if the contract is expected to be a fixed-price, time-and-materials, or labor-hour service contract containing the clause at 52.222-41, Service Contract Labor Standards, and is a multiple year contra…
  • FAR 43.205 Contract clauses.
    …er shall use the clause with its Alternate V. (c) Insert the clause at 52.243-3, Changes—Time-and-Materials or Labor-Hours, in solicitations and contracts when a time-and-materials or labor-hour contract is contemplated. The contracting of…
  • FAR 52.216-29 Time-and-Materials/Labor-Hour Proposal Requirements—Other Than Commercial Acquisition With Adequate Price Competition.
    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 Tim…
  • FAR 52.216-30 Time-and-Materials/Labor-Hour Proposal Requirements—Other Than Commercial Acquisition Without Adequate Price Competition.
    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 …
  • FAR 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 contr…
  • FAR 12.301 Solicitation provisions and contract clauses for the acquisition of commercial products and commercial services.
    …ontract by reference (see Block 27, SF 1449). Use this clause with its Alternate I when a time-and-materials or labor-hour contract will be awarded. The contracting officer may tailor this clause in accordance with 12.302. (4) The clause a…
  • FAR 30.001 Definitions.
    … based on actual costs incurred (Subpart 16.5); and (4) The fixed-hourly rate portion of time-and-materials and labor-hours contracts and subcontracts (Subpart 16.6). Flexibly-priced contracts and subcontracts means— (1) Fixed-price cont…
  • FAR 52.212-4 Contract Terms and Conditions—Commercial Products and Commercial Services.
    …rporated by reference into the contract. (End of clause) Alternate I (NOV 2021). When a time-and-materials or labor-hour contract is contemplated, substitute the following paragraphs (a), (e), (i), (l), and (m) for those in the basic clau…
  • FAR 52.222-43 Fair Labor Standards Act and Service Contract Labor Standards—Price Adjustment (Multiple Year and Option Contracts).
    …tain a statement of the amount claimed and the change in fixed hourly rates (if this is a time-and-materials or labor-hour contract), and any relevant supporting data, including payroll records, that the Contracting Officer may reasonably r…
  • FAR 52.222-44 Fair Labor Standards Act and Service Contract Labor Standards—Price Adjustment.
    …hall contain a statement of the amount and the change in fixed hourly rates (if this is a time-and-materials or labor-hour contract) claimed and any relevant supporting data that the Contracting Officer may reasonably require. Upon agreemen…
  • FAR 52.230-6 Administration of Cost Accounting Standards.
    …ed on actual costs incurred (FAR Subpart 16.5); and (4) The fixed-hourly rate portion of time-and-materials and labor-hours contracts and subcontracts (FAR Subpart 16.6). Flexibly-priced contracts and subcontracts means— (1) Fixed-price …
  • FAR 52.243-3 Changes—Time-and-Materials or Labor-Hours.
    As prescribed in 43.205(c), insert the following clause: Changes—Time-and-Materials or Labor-Hours (SEP 2000) (a) The Contracting Officer may at any time, by written order, and without notice to the sureties, if any, make changes within t…
  • FAR 52.244-2 Subcontracts.
    …t to subcontract is required for any subcontract that— (1) Is of the cost-reimbursement, time-and-materials, or labor-hour type; or (2) Is fixed-price and exceeds— (i) For a contract awarded by the Department of Defense, the Coast Guard,…
  • DFARS 242.7503 Contract clause.
    …olicitations and contracts when contemplating— (a) A cost-reimbursement, incentive type, time-and-materials, or labor-hour contract; or (b) A contract with progress payments made on the basis of costs incurred by the contractor or on a pe…
  • DFARS 252.216-7002 Alternate A, Time-and-Materials/Labor-Hour Proposal Requirements—Other Than Commercial Acquisition with Adequate Price Competition.
    …ollowing paragraph (c) for paragraph (c) of the provision at FAR 52.216-29: Alternate A, Time-and-Materials/Labor-Hour Proposal Requirements—Other Than Commercial Acquisition With Adequate Price Competition (JAN 2023) (c) The offeror must…
  • FAR 8.405-3 Blanket purchase agreements (BPAs).
    …r preference. The ordering activity shall specify the order type (i.e., firm-fixed price, time-and-materials, or labor-hour) for the services identified in the statement of work. The contracting officer should establish firm-fixed priced or…
  • FAR 16.201 General.
    …uiring commercial products and commercial services, except as provided in 12.207(b). (b) Time-and-materials contracts and labor-hour contracts are not fixed-price contracts.
  • FAR 16.600 Scope.
    Time-and-materials contracts and labor-hour contracts are not fixed-price contracts.
  • FAR 42.708 Quick-closeout procedure.
    …g contractor's recovery of otherwise allowable indirect costs under cost reimbursement or time-and-materials contracts; and (4) Agreement can be reached on a reasonable estimate of allocable dollars. (b) Determinations of final indirect c…
  • FAR 52.232-9 Limitation on Withholding of Payments.
    …ncy regulations, in solicitations and contracts when a supply contract, service contract, time-and-materials contract, labor-hour contract, or research and development contract is contemplated that includes two or more terms authorizing the…
  • DFARS 211.274-3 Policy for valuation.
    …unit cost to the Government at the time of delivery; and (3) For items delivered under a time-and-materials contract, the contractor's estimated fully burdened unit cost to the Government at the time of delivery. (c) The Government's unit…
  • DFARS 252.211-7003 Item Unique Identification and Valuation.
    … unit cost to the Government at the time of delivery; and (3) For items produced under a time-and-materials contract, the Contractor's estimated fully burdened unit cost to the Government at the time of delivery. Issuing agency means an o…
  • FAR 8.405-2 Ordering procedures for services requiring a statement of work.
    …e, a brief explanation of the basis for the award decision shall be provided. (e) Use of time-and-materials and labor-hour orders for services. When placing a time-and-materials or labor-hour order for services, see 8.404(h). (f) Minimum …
  • FAR 16.505 Ordering.
    …ent orders. For additional requirements for cost-reimbursement orders, see 16.301-3. (5) Time-and-materials or labor-hour orders. For additional requirements for time-and-materials or labor-hour orders, see 16.601(e). (6) Postaward notice…
  • FAR 22.103-4 Approvals.
    …emiums. (c) Contracting officer approval of payment of overtime premiums is required for time-and-materials and labor-hour contracts (see paragraph (a)(8) of the clause at 52.232-7, Payments Under Time-and-Materials and Labor-Hour Contract…

FAR (chapter 1)

DFARS (chapter 2, Defense)

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Rule changes in progress: FAR, DFARS. Terms: glossary.