Effective immediately, prior to awarding time-and-materials (T&M) and labor-hour (LH) contracts, or T&M/LH orders, contracting officers shall use the attached text in lieu of FAR 16.601(d)(1) and DFARS 216.601(d)(i) and (ii). The limitations at FAR 16.601(d)(2) remain unchanged.
This class deviation requires that -
The additional internal approval level required by this deviation will increase oversight and management of T&M and LH contracts and orders, which inherently lack incentives for cost control and labor efficiency. This approval authority may not be delegated. Although requirements to monitor contractor performance are in place, these types of contracts remain the least preferred business arrangements.
Contracts that support contingency or peacekeeping operations, or provide humanitarian assistance, disaster relief, or recovery from conventional, nuclear, biological, chemical, or radiological attacks are exempt from the requirements of this deviation.
This class deviation remains in effect until it is incorporated in the DFARS, or is otherwise rescinded.