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Reasonable Hourly Increments (T&M)


Acq_4_life

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The Acquisitions Department awarded a time-and-material contract for project management support to be performed for a base and two option periods. When billing, the contractor invoiced for the exact time and hours that an employee worked. Is it acceptable for a contractor to bill in different increments, i.e. 5, 8, 12, etc., on a time-and-material contract? Is there language to support this and language to include in the contract that restricts the contractor from billing different increments?

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Paragraph (a) (2) of FAR 52.232-7, Payments Under Time-and-Materials and Labor-Hour Contracts, states that ?The amounts shall be computed by multiplying the appropriate hourly rates prescribed in the Schedule by the number of direct labor hours performed.?

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