D.C. Mun. Regs. r. 27-2420

Current through Register Vol. 71, No. 24, June 14, 2024

Rule 27-2420 - TIME-AND-MATERIALS CONTRACTS

2420.1

A time-and- materials contract may be used only when:

(a) It is not possible at the time of executing the contract to estimate accurately the extent or duration of the work or to anticipate costs with any reasonable degree of confidence; and

(b) The contracting officer determines, in writing, that no other type of contract is suitable.

2420.2

A time and materials contract shall include a price ceiling that the contractor exceeds at its own risk.

2420.3

A time-and- materials contract shall include direct labor hours at specified fixed hourly rates that include wages, overhead, general and administrative expenses, profit, and materials required at cost.

2420.4

When the nature of the work to be performed requires the contractor to furnish material that it regularly sells to the general public in the normal course of its business, a time and materials contract may provide for charging material on a basis other than cost if the following factors apply:

(a) The total estimated contract price does not exceed fifty thousand dollars ($50,000), or the estimated price of material charged does not exceed twenty percent (20%) of the estimated contract price;

(b) The material to be charged is identified in the contract;

(c) No element of profit on material charged is included as profit in the fixed hourly labor rates; and

(d) The contract provides that the price to be paid for the material shall be based on an established catalog or list price in effect when material is furnished, less all applicable discounts to the District, and that in no event shall the price exceed the contractor's sales price to its most- favored customer for the same item in like quantity, or the current market price, whichever is lower.

D.C. Mun. Regs. r. 27-2420

Final Rulemaking published at 35 DCR 1566 (February 26, 1988); amended by Final Rulemaking published at 64 DCR 390 (1/19/2018)