O'Reilly logo

The Complete Guide to Government Contract Types by Kenneth R. Segel

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

CHAPTER 14

Time-and-Materials and Labor-Hour Contracts

The time-and-materials (T&M) and labor-hour (LH) contract types combine characteristics of the cost-reimbursement and fixed-price contract types. LH contracts are similar to fixed-price contracts in that the government pays a fixed price for labor. The hourly rate includes wages, overhead, fringe, G&A, and profit. An LH contract is identical to a T&M contract, with the exception that the contractor does not procure the material. The contract ends when specific conditions identified in the contract’s PWS are met.

Similarly, a T&M contract is a combination of a labor-hour contract and a cost-reimbursement contract. As in an LH contract, the hourly rate includes wages, overhead, fringe, G&A, ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required