Industry Pushes for T&M/Labor Hour Contracts for Commercial Items
The highly influential Council of Defense and Space Industry Association has been pressing the FAR Council to revise FAR Part 12 to permit use of time and material/labor hour contracts for the purchase of commercial services when that type of contract are customary commercial practices. Currently FAR Part 12 precludes the use of such contracts which states only firm fixed price contracts or fixed price contracts with price adjustments may be used for acquiring commercial items.
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