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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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79 sections with “labor or material costs”: the first 40

  • FAR 52.232-7 Payments under Time-and-Materials and Labor-Hour Contracts.
    …ibed 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 Contracting Officer…
  • FAR 22.504 General requirements for project labor agreements.
    (a) General. Project labor agreements established under this subpart shall fully conform to all statutes, regulations, and Executive orders. (b) Requirements. A project labor agreement shall— (1) Bind all contractors and subcontractors en…
  • FAR 52.222-43 Fair Labor Standards Act and Service Contract Labor Standards—Price Adjustment (Multiple Year and Option Contracts).
    As prescribed in 22.1006(c)(1), insert the following clause: Fair Labor Standards Act and Service Contract Labor Standards—Price Adjustment (Multiple Year and Option Contracts) (AUG 2018) (a) This clause applies to both contracts subject …
  • FAR 52.222-44 Fair Labor Standards Act and Service Contract Labor Standards—Price Adjustment.
    As prescribed in 22.1006(c)(2), insert the following clause: Fair Labor Standards Act And Service Contract Labor Standards—Price Adjustment (MAY 2014) (a) This clause applies to both contracts subject to area prevailing wage determination…
  • FAR 31.205-21 Labor relations costs.
    …ose made unallowable in paragraph (b) of this section), including costs of shop stewards, labor management committees, employee publications, and other related activities, are allowable. (b) As required by Executive Order 13494, Economy in…
  • FAR 16.601 Time-and-materials contracts.
    …uct or service. Hourly rate means the rate(s) prescribed in the contract for payment for labor that meets the labor category qualifications of a labor category specified in the contract that are— (1) Performed by the contractor; (2) Perf…
  • FAR 52.212-3 Offeror Representations and Certifications—Commercial Products and Commercial Services.
    …a women-owned small business eligible under the WOSB Program. Forced or indentured child labor means all work or service— (1) Exacted from any person under the age of 18 under the menace of any penalty for its nonperformance and for which…
  • 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 52.216-26 Payments of Allowable Costs Before Definitization.
    …res inventory and placed in the production process for use on the contract; (iii) Direct labor; (iv) Direct travel; (v) Other direct in-house costs; and (vi) Properly allocable and allowable indirect costs as shown on the records mainta…
  • DFARS 252.204-7023 Reporting Requirements for Contracted Services.
    … Government fiscal year under the contract or order. (2) The number of Contractor direct labor hours, to include first-tier subcontractor direct labor hours, as applicable, expended on the services performed under the contract or order dur…
  • FAR 28.106-6 Furnishing information.
    … sureties to any subcontractor or supplier who has furnished or been requested to furnish labor or material for the contract. In addition, general information concerning the work progress, payments, and the estimated percentage of completio…
  • FAR 31.205-42 Termination costs.
    …lows: (1) Starting load costs not fully absorbed because of termination are nonrecurring labor, material, and related overhead costs incurred in the early part of production and result from factors such as— (i) Excessive spoilage due to i…
  • FAR 2.101 Definitions.
    …ectives and related operations costs; (5) Unit-cost trends such as those associated with labor efficiency; (6) Make-or-buy decisions; (7) Estimated resources to attain business goals; and (8) Information on management decisions that cou…
  • FAR 8.404 Use of Federal Supply Schedules.
    …ing 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 acquisition of commerc…
  • FAR 8.405-3 Blanket purchase agreements (BPAs).
    …ing 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 orders to the maximum ext…
  • FAR 12.207 Contract type.
    …n 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 acquired under a contract awar…
  • FAR 15.404-1 Proposal analysis techniques.
    …ing relationships; and (D) The application of audited or negotiated indirect cost rates, labor rates, and cost of money or other factors. (ii) Evaluating the effect of the offeror's current practices on future costs. In conducting this ev…
  • FAR 15.404-4 Profit.
    …should correspond to the managerial and technical effort involved. (B) Conversion direct labor. This subfactor measures the contribution of direct engineering, manufacturing, and other labor to converting the raw materials, data, and subco…
  • FAR 16.203-4 Contract clauses.
    …approval by the chief of the contracting office. (c) Adjustments based on actual cost of labor or material. (1) The contracting officer shall, when contracting by negotiation, insert a clause that is substantially the same as the clause at…
  • FAR 22.401 Definitions.
    …y registered in a bona fide apprenticeship program registered with the U.S. Department of Labor, Employment and Training Administration, Office of Apprenticeship Training, Employer, and Labor Services (OATELS), or with a State Apprenticeshi…
  • FAR 28.305 Overseas workers' compensation and war-hazard insurance.
    … (i) contracts approved or financed by the Development Loan Fund (unless the Secretary of Labor, acting upon the recommendation of a department or agency, determines that such contracts should be covered) or (ii) contracts exclusively for m…
  • FAR 31.001 Definitions.
    …ob. Job class of employees means employees performing in positions within the same job. Labor cost at standard means a preestablished measure of the labor element of cost, computed by multiplying labor-rate standard by labor-time standard…
  • FAR 49.402-2 Effect of termination for default.
    …ent that might result from failure to provide for the Government's potential liability to laborers and material suppliers for lien rights outstanding against the completed supplies or materials after the Government has paid the contractor f…
  • FAR 52.204-14 Service Contract Reporting Requirements.
    … previous Government fiscal year under the contract. (3) The number of Contractor direct labor hours expended on the services performed during the previous Government fiscal year. (4) Data reported by subcontractors under paragraph (f) of…
  • FAR 52.204-15 Service Contract Reporting Requirements for Indefinite-Delivery Contracts.
    …the previous Government fiscal year under the order. (3) The number of Contractor direct labor hours expended on the services performed during the previous Government fiscal year. (4) Data reported by subcontractors under paragraph (f) of…
  • FAR 52.212-4 Contract Terms and Conditions—Commercial Products and Commercial Services.
    …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 clause. (a) Inspection/Ac…
  • FAR 52.215-2 Audit and Records—Negotiation.
    …(b) Examination of costs. If this is a cost-reimbursement, incentive, time-and-materials, labor-hour, or price redeterminable contract, or any combination of these, the Contractor shall maintain and the Contracting Officer, or an authorized…
  • FAR 52.216-7 Allowable Cost and Payment.
    …tor's inventory and placed in the production process for use on the contract; (C) Direct labor; (D) Direct travel; (E) Other direct in-house costs; and (F) Properly allocable and allowable indirect costs, as shown in the records maintai…
  • FAR 52.222-6 Construction Wage Rate Requirements.
    … may be dedicated exclusively or nearly so, to the performance of a contract. (b)(1) All laborers and mechanics employed or working upon the site of the work will be paid unconditionally and not less often than once a week, and without sub…
  • FAR 52.222-50 Combating Trafficking in Persons.
    …tract who has other than a minimal impact or involvement in contract performance. Forced Labor means knowingly providing or obtaining the labor or services of a person— (1) By threats of serious harm to, or physical restraint against, tha…
  • FAR 52.249-6 Termination (Cost-Reimbursement).
    …ired by the contract. Alternate IV (SEP 1996). If the contract is a time-and-material or labor-hour contract, substitute the following paragraphs (h) and (l) for paragraphs (h) and (l) of the basic clause: (h) If the Contractor and the Co…
  • DFARS 204.7103-1 Criteria for establishing.
    …rsement contract; (iv) When the contract is for maintenance and repair services (e.g., a labor hour contract) and firm prices have been established for elements of the total price of an item but the actual number and quantity of the elemen…
  • FAR 15.403-1 Prohibition on obtaining certified cost or pricing data (10 U.S.C. chapter 271 and 41 U.S.C. chapter 35).
    …ther relevant information regarding the basis for price or cost, including information on labor costs, material costs and overhead rates may be requested. (iii) The following requirements apply to minor modifications defined in paragraph (…
  • FAR 15.407-1 Defective certified cost or pricing data.
    …ot submitted. Such offsets need not be in the same cost groupings (e.g., material, direct labor, or indirect costs). (6) An offset shall not be allowed if— (i) The understated data were known by the contractor to be understated before the…
  • FAR 15.408 Solicitation provisions and contract clauses.
    …identification, along with the results of any analysis performed on that data. B. Direct Labor. Provide a time-phased (e.g., monthly, quarterly, etc.) breakdown of labor hours, rates, and cost by appropriate category, and furnish bases for…
  • FAR 16.203-1 Description.
    …es of specific items or the contract end items. (2) Adjustments based on actual costs of labor or material. These price adjustments are based on increases or decreases in specified costs of labor or material that the contractor actually ex…
  • FAR 17.106-1 General.
    …tion ceilings, the contracting officer must estimate reasonable preproduction or startup, labor learning, and other nonrecurring costs to be incurred by an “average” prime contractor or subcontractor, which would be applicable to, and which…
  • FAR 17.109 Contract clauses.
    …able to multiyear contracting needs. When the period of production is likely to warrant a labor and material costs contingency in the contract price, the contracting officer should normally use an economic price adjustment clause (see 16.20…
  • FAR 31.205-18 Independent research and development and bid and proposal costs.
    …angement (for example, joint ventures, limited partnerships, teaming arrangements, and collaboration and consortium arrangements). IR&D costs also may include costs contributed by contractors in performing cooperative research and developme…
  • FAR 31.205-34 Recruitment costs.
    …g. (2) Costs of operating an employment office needed to secure and maintain an adequate labor force. (3) Costs of operating an aptitude and educational testing program. (4) Travel costs of employees engaged in recuiting personnel. (5) …

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.