 |
D.C. Municipal Regulations (Last Updated: September 13, 2017) |
 |
Title 27. CONTRACTS AND PROCUREMENT |
|
Chapter 27-24. TYPES OF CONTRACTS |
Section 27-2420. TIME-AND-MATERIALS CONTRACTS
-
2420.1A time-and-materials contract may be used only after the contracting officer determines in writing that no other type of contract is suitable, and only if the contract includes a ceiling price that the contractor exceeds at its own risk.
2420.2The contracting officer shall document the contract file to justify the reasons for and the amount of any subsequent change in the ceiling price.
2420.3A time-and-materials contract may be used only when 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.
2420.4A 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.
2420.5The contract administrator shall provide surveillance of contractor performance when a time-and-materials type contract is used.
2420.6When 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, the 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.