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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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52 sections with “labor-hour contracts”: the first 40

  • 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 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 46.306 Time-and-material and labor-hour contracts.
    …contracting officer shall insert the clause at 52.246-6, Inspection—Time-and-Material and Labor-Hour, in solicitations and contracts when a time-and-material contract or a labor-hour contract is contemplated. If Government inspection and ac…
  • FAR 16.601 Time-and-materials contracts.
    …aterial costs, material handling costs shall include only costs clearly excluded from the labor-hour rate. Material handling costs may include all appropriate indirect costs allocated to direct materials in accordance with the contractor's …
  • 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 52.246-6 Inspection—Time-and-Material and Labor-Hour.
    As prescribed in 46.306, insert the following clause: Inspection—Time-and-Material and Labor-Hour (MAY 2001) (a) Definitions. As used in this clause— Contractor's managerial personnel means any of the Contractor's directors, officers, ma…
  • 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 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 32.111 Contract clauses for noncommercial purchases.
    …y 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 contracting officer dete…
  • DFARS 212.207 Contract type.
    …e 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 for support of a commerci…
  • FAR 22.103-4 Approvals.
    …g 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 Contracts). (d) No approvals a…
  • FAR 45.107 Contract clauses.
    …— (i) All cost-reimbursement and time-and-material type solicitations and contracts, and labor-hour solicitations when property is expected to be furnished for the labor-hour contracts. (ii) Fixed-price solicitations and contracts when th…
  • FAR 49.503 Termination for convenience of the Government and default.
    …ntracting officer shall use the clause with its Alternate III. (4) Time-and-material and labor-hour contracts. If the contract is a time-and-material or labor-hour contract, the contracting officer shall use the clause with its Alternate I…
  • FAR 52.222-43 Fair Labor Standards Act and Service Contract Labor Standards—Price Adjustment (Multiple Year and Option Contracts).
    …e 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 require. Upon agreement…
  • FAR 52.244-2 Subcontracts.
    …uired 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, or the National Aerona…
  • DFARS 252.242-7005 Contractor business systems.
    …, to withhold 5 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…
  • FAR 8.405-2 Ordering procedures for services requiring a statement of work.
    …a). (iii) The ordering activity shall specify the type of order (i.e., firm-fixed-price, labor-hour) for the services identified in the statement of work. The contracting officer should establish firm-fixed-prices, as appropriate. (3) For…
  • 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 16.201 General.
    …mmercial services, except as provided in 12.207(b). (b) Time-and-materials contracts and labor-hour contracts are not fixed-price contracts.
  • FAR 16.307 Contract clauses.
    …the clause at 52.232-7) at actual cost. Further, the clause at 52.216-7 does not apply to labor-hour contracts. (2) If the contract is a construction contract and contains the clause at 52.232-27, Prompt Payment for Construction Contracts,…
  • FAR 16.600 Scope.
    Time-and-materials contracts and labor-hour contracts are not fixed-price contracts.
  • FAR 42.803 Disallowing costs after incurrence.
    …acts, letter contracts that provide for reimbursement of costs, and time-and-material and labor-hour contracts provide for disallowing costs during the course of performance after the costs have been incurred. The following procedures shall…
  • FAR 45.104 Responsibility and liability for Government property.
    …s of contracts: (1) Cost-reimbursement contracts. (2) Time-and-material contracts. (3) Labor-hour contracts. (4) Fixed-price contracts awarded on the basis of submission of certified cost or pricing data. (b) The contracting officer ma…
  • FAR 49.505 Other termination clauses.
    … The contracting officer shall also insert the clause in time-and-material contracts, and labor-hour contracts. (c) Communication service contracts. This regulation does not prescribe a clause for the cancellation or termination of orders …
  • FAR 52.249-14 Excusable Delays.
    …ment contract is contemplated. Also insert the clause in time-and-material contracts, and labor-hour contracts. When used in construction contracts, substitute the words “completion time” for “delivery schedule” in the last sentence of the …
  • DFARS 218.201 Contingency operation.
    …ee 215.371-4(a)(2). (8) Approval of determination and findings for time-and-materials or labor-hour contracts. The approval requirements in paragraphs (d)(i)(A)(1) and (2) of this section do not apply to contracts that, as determined by th…
  • DFARS 218.202 Defense or recovery from certain events.
    …ee 215.371-4(a)(2). (3) Approval of determination and findings for time-and-materials or labor-hour contracts at 216.601(d)(i)(A)(1) and (2). See 216.601(d)(3).
  • DFARS 218.204 Humanitarian or peacekeeping operation.
    …ee 215.371-4(a)(2). (3) Approval of determination and findings for time-and-materials or labor-hour contracts at 216.601(d)(i)(A)(1) and (2). See 216.601(d)(3).
  • DFARS 242.7502 Policy.
    (a) Contractors receiving cost-reimbursement, incentive type, time-and-materials, or labor-hour contracts, or contracts which provide for progress payments based on costs or on a percentage or stage of completion, shall maintain an accounti…
  • FAR 4.1005-2 Exceptions.
    …e supplies or services are being acquired on a cost-reimbursement, time-and-materials, or labor-hour basis. (4) The procurement instrument is for services and firm prices have been established for elements of the total price, but the actua…
  • FAR 16.505 Ordering.
    …onal 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 notices and debriefing of aw…
  • FAR 22.1006 Solicitation provisions and contract clauses.
    …ons 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 contract or is a contract wit…
  • FAR 43.205 Contract clauses.
    …e 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 officer may vary the 30-…
  • FAR 44.201-1 Consent requirements.
    …ng system, consent to subcontract is required for cost-reimbursement, time-and-materials, labor-hour, or letter contracts, and also for unpriced actions (including unpriced modifications and unpriced delivery orders) under fixed-price contr…
  • FAR 44.204 Contract clauses.
    … time-and-materials contract that exceeds the simplified acquisition threshold; or (v) A labor-hour contract that exceeds the simplified acquisition threshold. (2) If a cost-reimbursement contract is contemplated, for civilian agencies ot…
  • 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 52.249-6 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 242.7000 Contractor business system deficiencies.
    …ress payments, performance-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 th…
  • FAR 4.1703 Reporting requirements.
    …cording to the following thresholds: (i) All cost-reimbursement, time-and-materials, and labor-hour service contracts and orders with an estimated total value above the simplified acquisition threshold. (ii) All fixed-price service contra…
  • FAR 12.301 Solicitation provisions and contract clauses for the acquisition of commercial products and commercial services.
    …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 at 52.212-5, Contract T…

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.