5030.1 Time-and-materials contracts provide for acquiring supplies or services on the basis of:

(a) Direct labor hours charged at fixed hourly rates that are loaded rates that which include overhead, general and administrative expenses, and profit; and

(b) Materials (which may be charged either at their actual cost or at fixed unit prices).

5030.2 A labor hours contract is a time-and-materials contract that does not involve materials.

5030.3 Both time-and-materials contracts and labor hours contracts should specify a ceiling price.

SOURCE: Final Rulemaking published at 65 DCR 4406 (April 20, 2018).