[Federal Register: September 26, 2005 (Volume 70, Number 185)]
[Proposed Rules]
[Page 56313-56317]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr26se05-19]
[[Page 56313]]
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Part III
Department of Defense
General Services Administration
National Aeronautics and Space Administration
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48 CFR Parts 2, 10, et al.
Federal Acquisition Regulations; Proposed Rules
[[Page 56314]]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 16, 32, and 52
[FAR Case 2004-015]
RIN 9000-AK32
Federal Acquisition Regulation; Payments Under Time-and-Materials
and Labor-Hour Contracts
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Proposed rule with request for comments.
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SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council (Councils) are proposing to amend the
FAR regarding payments under Time-and-Materials (T&M) and Labor-Hour
(LH) Contracts.
DATES: Interested parties should submit written comments to the FAR
Secretariat on or before November 25, 2005, to be considered in the
formulation of a final rule.
ADDRESSES: Submit comments identified by FAR case 2004-015 by any of
the following methods:
Federal eRulemaking Portal: http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.regulations.gov.
Follow the instructions for submitting comments.
Agency Web Site: http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.acqnet.gov/far/ProposedRules/proposed.htm.
Click on the FAR case number to submit comments. E-mail: farcase.2004-015@gsa.gov. Include FAR case 2004-
4-
015 in the subject line of the message.
Fax: 202-501-4067.
Mail: General Services Administration, Regulatory
Secretariat (VIR), 1800 F Street, NW., Room 4035, ATTN: Laurieann
Duarte, Washington, DC 20405.
Instructions: Please submit comments only and cite FAR case 2004-
015 in all correspondence related to this case. All comments received
will be posted without change to http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.acqnet.gov/far/ProposedRules/proposed.htm
, including any personal and/or business
confidential information provided.
Public Meeting: A public meeting will be held on Tuesday, October
18, 2005, from 9:00 a.m. to 4:00 p.m. Eastern Time, in the GS Building
Auditorium, 1800 F Street NW, Washington, DC 20405, to facilitate an
open dialogue between the Government and parties interested in the
implementation of section 8002(d), FAR Case 2003-027, Additional
Contract Types. Because they are so closely related, the public meeting
will also cover this FAR proposed rule 2004-015, Payment Under Time-
and-Materials and Labor-Hour Contracts. Interested parties are
encouraged to attend and engage in discussions regarding these proposed
rules.
To facilitate discussions at the public meeting, interested parties
are encouraged to provide written comments on issues they would like
addressed at the public meeting no later than Tuesday, October 11,
2005. Interested parties may register and submit their input
electronically at http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.acq.osd.mil/dpap/dars/index.htm. Attendees
are encouraged, but not required, to register for the public meeting,
to ensure adequate accommodations.
Directions to the meeting can be found at the Web site.
Participants are encouraged to check with the Web site prior to the
public meeting to ensure the location has not been changed as a result
of a large number of registrants. The public meeting is physically
accessible to people with disabilities. Requests for sign language
interpretation or other auxiliary aids should be directed to Mr. Jeremy
Olson at 202-501-3221 at least 5 days prior to the meeting.
FOR FURTHER INFORMATION CONTACT: The FAR Secretariat at (202) 501-4755
for information pertaining to status or publication schedules. For
clarification of content, contact Mr. Jeremy Olson, at (202) 208-3221.
Please cite FAR case 2004-015.
SUPPLEMENTARY INFORMATION:
A. Background
The amendments made under this case are intended to be applicable
only to non-commercial item contracts. Policies applicable to
commercial item T&M or LH contracts are being addressed separately
under FAR case 2003-027.
The proposed amendments to FAR 16.307, 16.601, 32.111, and the FAR
clause at 52.232-7 are intended to amend the underlying policies and
increase the clarity of the affected FAR language. The proposed rule
addresses the areas related to payments made under T&M and LH contracts
for non-commercial items, as described below.
1. FAR 16.307--Contract clauses.
The Councils are proposing to amend FAR 16.307(a)(1) to specify
that the Allowable Cost and Payment clause is included in T&M
contracts. The clause is only applicable to the portion of the contract
that provides for reimbursement of materials at actual cost. This
change is being made to ensure that appropriate rights and
responsibilities are provided in T&M contracts with respect to
reimbursement for material cost.
2. FAR 16.601--Time-and-materials contracts.
The Councils are proposing to revise the language at FAR 16.601(a)
to provide a description of ``materials'' as used in ``time-and-
materials contract.'' FAR 16.601(a) currently describes a T&M contract
as a contract that provides for acquiring supplies or services on the
basis of--
Direct labor hours at specified fixed hourly rates that
include wages, overhead, general and administrative expenses, and
profit; and
Materials at cost, including, if appropriate, material
handling costs as part of material costs.
The current description does not address subcontract costs, even
though such costs are often a significant part of the work performed
and are provided for under the payments clause at FAR 52.232-7. Also,
the description does not address other direct costs and applicable
indirect costs other than material handling (e.g., general and
administrative expenses) that may be appropriate for the acquisition.
Thus, the Councils are proposing to revise ``materials at cost'' to
include ``direct materials, subcontracts for supplies and services,
other direct costs, and applicable indirect costs''.
3. General structure of the FAR clause at 52.232-7--Payments under
Time-and-Materials and Labor-Hour Contracts.
The Councils are proposing to amend the current paragraph (b) of
the FAR clause at 52.232-7 to specify that the term ``materials,'' as
used in the clause, includes direct materials, subcontracts for
supplies and services, other direct costs, and applicable indirect
costs (this is consistent with the proposed changes to FAR 16.601).
Materials also include supplies and services transferred between
divisions, subdivisions, subsidiaries, or affiliates of the contractor
under a common control. The current language has caused significant
confusion because it does not adequately describe what is included in
``materials.''
[[Page 56315]]
4. Contractor furnished material--Alternate I.
The Councils are proposing to move and amend the current Alternate
I to paragraph (b)(3) of the clause. When a contractor furnishes its
own materials that meet the definition of a commercial item at FAR
2.101, the price to be paid for such materials shall be the
contractor's established catalog or the market price. The ability of
the contractor to bill at such prices should not be dependent on a
contracting officer decision as to whether an alternate clause should
be included in the contract.
5. Profit or fee on materials.
The Councils are proposing to revise paragraph (b)(8) of the FAR
clause at 52.232-7 to specifically state that the Government does not
pay profit or fee to the prime contractor on materials (except for
commercial items discussed in Item 4 above or as otherwise provided for
in FAR 31.205-26). The Councils believe this is consistent with the
historical intent of the clause and the concept of a T&M contract. The
recovery of profit or fee is accomplished as part of the labor hour
portion of the T&M/LH contract.
6. Billing subcontracts and interdivisional transfers for incidental
supplies or services.
For subcontracts, the Councils are proposing to clarify that
subcontracts for incidental services are to be reimbursed at the actual
subcontract price, plus allowable indirect costs, per the requirements
of the FAR clause at 52.216-7, Allowable Cost and Payment. For
interdivisional transfers, the Councils are proposing to revise the
language to limit reimbursement to the actual rates or commercial
prices of the division performing the work.
7. Billing subcontracts and interdivisional transfers for services that
comply with the labor hour requirements.
For services performed by employees of subcontractors, the Councils
are proposing to amend the policies to provide the contracting parties
two possible approaches that would be used depending on the contracting
officer's determination of circumstances applicable to an individual
procurement. The first approach includes coverage in the FAR clause at
52.232-7 applicable to subcontractors providing services compliant with
the labor hour requirements of a T&M or LH contract. Under this
approach, payment of subcontract costs would be at the contract fixed
labor rate under the contract requirements applicable to the labor hour
portion of the contract only if a subcontractor is listed in the
payment clause.
The contracting officer can select the second available approach by
inserting ``None'' in the clause, which would provide that any other
labor provided by a subcontractor would be paid at actual cost (plus
applicable indirect costs).
The Councils believe this two option approach is appropriate for
the following reasons:
The Government should have the authority to limit
subcontractors that are authorized to perform labor hours to be paid at
the LH rate under a T&M or LH contract.
o The authority should be independent of the approval/notification
process in the ``Subcontracts'' clause.
o The limitation should appear as part of the T&M Payment clause
and it should include (or refer to) the list of subcontractors approved
to provide labor hours paid at the LH rate under the contract.
o If the prime contractor wishes to add a new subcontractor, the
contracting officer would have to agree (and make any necessary
adjustment to the LH rates as a result).
o Subcontracted labor hours paid at the LH rate should not be
subject to further material handling fees or any other type of
reimbursement of the sort authorized for material.
o Subcontracted labor hours paid at the LH rate must be accounted
for and substantiated under the same standards as labor hours provided
by the prime contractor.
Subcontractors providing services that are ancillary to
and not part of the LH portion of the contract should be paid actual
costs, using the same procedures as are used for material (e.g., crane
operators subcontracted as part of installation services, and drivers
subcontracted to provide transportation to LH workers).
8. Application of Prompt Payment Act.
The Councils are proposing to add the language at paragraph (i) of
the FAR clause at 52.232-7 to include application of the Prompt Payment
Act for interim payments under T&M and LH contracts for services. The
Prompt Payment Act has applied to fixed-price contracts for services
for many years. Congress also recently amended the Prompt Payment Act
to include cost reimbursement contracts for services. The Councils
believe that since the Prompt Payment Act is applicable to both fixed-
price and cost reimbursement contracts for services, it should also be
applicable to T&M and LH contracts for services.
B. Regulatory Planning and Review
This is not a significant regulatory action and, therefore, was not
subject to review under Section 6(b) of Executive Order 12866,
Regulatory Planning and Review, dated September 30, 1993. This rule is
not a major rule under 5 U.S.C. 804.
C. Regulatory Flexibility Act
The changes may have a significant economic impact on a substantial
number of small entities within the meaning of the Regulatory
Flexibility Act, 5 U.S.C. 601, et seq., because Time and Material or
Labor Hour contracts are commonly awarded to small businesses.
An Initial Regulatory Flexibility Analysis (IRFA) has been
prepared. The analysis is summarized as follows:
Initial Regulatory Flexibility Analysis
1. Description of the reasons why action by the agency is being
considered. This proposed rule would revise the Federal Acquisition
Regulation to amend underlying policies and increase the clarity of
payments made under T&M and LH contracts for non-commercial items.
2. Succinct statement of the objectives of, and legal basis for,
the proposed rule. The objectives of the amendment are to ensure
fair and reasonable prices under T&M contracts and to eliminate the
ambiguity in T&M contracts that has been responsible for confusion
over payment amounts for subcontractor provided labor.
3. Description of, and, where feasible, estimate of the number
of small entities to which the proposed rule will apply. The changes
may have a significant economic impact on a substantial number of
small entities within the meaning of the Regulatory Flexibility Act,
5 U.S.C. 601, et seq., because T&M contracting is a common method of
acquiring services from small entities. However, it is not feasible
to estimate the number of small entities impacted.
4. Description of projected reporting, record keeping, and other
compliance requirements of the proposed rule, including an estimate
of the classes of small entities which will be subject to the
requirement and the type of professional skills necessary for
preparation of the report or record. The current FAR policies
require contractors to maintain records to support invoices
presented to the Government for payment. Such records include
original timecards, the contractor's timekeeping procedures,
distribution of labor, invoices for material, and so forth. These
are standard records maintained by any company, large or small, and
the fact that the contract would require that these records be made
available to the Government should not place any additional record
keeping burden on the entity.
5. Identification, to the extent practicable, of all relevant
Federal rules which may duplicate, overlap, or conflict with the
proposed rule. There are no Federal rules
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that duplicate, overlap or conflict with the proposed rule.
6. Description of any significant alternatives to the proposed
rule which accomplish the stated objectives of applicable statutes
and which minimize any significant economic impact of the proposed
rule on small entities. Significant alternatives to the proposed
rule include:
Not permitting any subcontractor to be paid at the
labor hour rate and reimbursing all subcontractors at actual cost.
Incorporating a list of each Other Direct Cost (ODC)
into each T&M contract that would be authorized for reimbursement
under that contract and prohibiting reimbursement of any other ODC.
Not requiring a list of each Other Direct Cost (ODC)
authorized for reimbursement and permitting any ODC to be
reimbursed.
The FAR Secretariat has submitted a copy of the IRFA to the Chief
Counsel for Advocacy of the Small Business Administration. A copy of
the IRFA may be obtained from the FAR Secretariat. The Councils will
consider comments from small entities concerning the affected FAR parts
in accordance with 5 U.S.C. 610. Comments must be submitted separately
and should cite 5 U.S.C 601, et seq. (FAR case 2004-015), in
correspondence.
D. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the proposed
changes to the FAR do not impose information collection requirements
that require the approval of the Office of Management and Budget under
44 U.S.C. 3501, et seq.
List of Subjects in 48 CFR Parts 16, 32, and 52
Government procurement.
Dated: September 19, 2005.
Gerald Zaffos,
Acting Director, Contract Policy Division.
Therefore, DoD, GSA, and NASA propose amending 48 CFR parts 16, 32,
and 52 as set forth below:
1. The authority citation for 48 CFR parts 16, 32, and 52 is
revised to read as follows:
Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 42
U.S.C. 2473(c).
PART 16--TYPES OF CONTRACTS
2. Amend section 16.307 by revising paragraph (a)(1) to read as
follows:
16.307 Contract clauses.
(a)(1) The contracting officer shall insert the clause at 52.216-7,
Allowable Cost and Payment, in solicitations and contracts when a cost-
reimbursement contract (other than a facilities contract) or a time-
and-materials contract (other than a contract for a commercial item) is
contemplated. If the contract is with an educational institution,
modify the clause by deleting from paragraph (a) the words ``Subpart
31.2'' and substituting for them ``Subpart 31.3.'' If the contract is
with a State or local government, modify the clause by deleting from
paragraph (a) the words ``Subpart 31.2'' and substituting for them
``Subpart 31.6.'' If the contract is with a nonprofit organization,
other than an educational institution, a State or local government, or
a nonprofit organization exempted under OMB Circular No. A-122, modify
the clause by deleting from paragraph (a) the words ``Subpart 31.2''
and substituting for them ``Subpart 31.7.'' If the contract is a time-
and-materials contract, the clause at 52.216-7 applies only to the
portion of the contract that provides for reimbursement of materials
(as defined in the clause at 52.232-7) at actual cost.
* * * * *
3. Amend section 16.601 by--
a. Redesignating paragraphs (a), (b), and (c) as (b), (c), and (d),
respectively;
b. Adding a new paragraph (a); and
c. Revising newly redesignated paragraph (b)(2).
The added and revised text reads as follows:
16.601 Time-and-materials contracts.
(a) Definitions for the purposes of Time-and-Materials Contracts.
Direct materials means those materials that enter directly into the
end product, or that are used or consumed directly in connection with
the furnishing of the end product or service.
Materials means--
(1) Direct materials, including supplies and services transferred
between divisions, subsidiaries, or affiliates of the contractor under
a common control;
(2) Subcontracts for supplies and services;
(3) Any other direct costs (e.g., travel, computer usage charges,
etc.); and
(4) Applicable indirect costs.
(b) * * *
(2) Actual cost for materials (except as provided for in 31.205-
26(e) and (f)).
* * * * *
4. Revise section 16.602 to read as follows:
16.602 Labor-hour contracts.
Description. A labor-hour contract is a variation of the time-and-
materials contract, differing only in that materials are not supplied
by the contractor. See 16.601(c) and 16.601(d) for application and
limitations, respectively, for time and materials contracts that also
apply to labor hour contracts.
PART 32--CONTRACT FINANCING
5. Amend section 32.111 in paragraph (a)(7) by--
a. Removing paragraph (i);
b. Redesignating paragraphs (ii) and (iii) as (i) and (ii),
respectively; and
c. Revising newly designated paragraph (i).
The revised text reads as follows:
32.111 Contract clauses for non-commercial purchases.
(a) * * *
(7) * * *
(i) If a labor-hour contract is contemplated, the contracting
officer shall use the clause with its Alternate I.
* * * * *
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
6. Amend section 52.232-7 by--
a. Revising the date of the clause;
b. Revising the introductory paragraph of the clause;
c. Revising paragraphs (a), (b), (d), and (e) of the clause;
d. Revising the heading of paragraph (h);
e. Adding paragraph (i); and
f. Removing Alternate I, and redesignating Alternate II as
Alternate I and revising it to read as follows:
52.232-7 Payments under Time-and-Materials and Labor-Hour Contracts.
As prescribed in 32.111(a)(7), insert the following clause:
PAYMENTS UNDER TIME-AND-MATERIALS AND LABOR-HOUR CONTRACTS (DATE)
The Government will pay the Contractor as follows upon the
submission of vouchers approved by the Contracting Officer or the
Contracting Officer's authorized representative:
(a) Hourly rate. (1) The amounts shall be computed by
multiplying the appropriate hourly rates prescribed in the Schedule
by the number of direct labor hours performed. The rates shall
include wages, indirect costs, general and administrative expense,
and profit. Fractional parts of an hour shall be payable on a
prorated basis.
(2) Vouchers may be submitted once each month (or at more
frequent intervals, if approved by the Contracting Officer), to the
Contracting Officer or authorized representative. The Contractor
shall substantiate vouchers (including any subcontractor hours
reimbursed at the hourly rate in the schedule) by evidence of actual
payment and by individual daily job timecards, records that verify
the employees meet the qualifications for the labor categories
specified in the contract or other substantiation approved by the
Contracting Officer.
(3) Promptly after receipt of each substantiated voucher, the
Government shall, except as otherwise provided in this contract,
[[Page 56317]]
and subject to the terms of paragraph (e) of this clause, pay the
voucher as approved by the Contracting Officer. Unless otherwise
prescribed in the Schedule, the Contracting Officer may unilaterally
issue a contract modification requiring the Contractor to withhold
amounts from its billings until a reserve is set aside in an amount
that the Contracting Officer considers necessary to protect the
Government's interests. The Contracting Officer may require a
withhold of 5 percent of the amounts due under paragraph (a), but
the total amount withheld for the contract shall not exceed $50,000.
The amounts withheld shall be retained until the Contractor executes
and delivers the release required by paragraph (f) of this clause.
(4) Unless the Schedule prescribes otherwise, the hourly rates
in the Schedule shall not be varied by virtue of the Contractor
having performed work on an overtime basis. If no overtime rates are
provided in the Schedule and overtime work is approved in advance by
the Contracting Officer, overtime rates shall be negotiated. Failure
to agree upon these overtime rates shall be treated as a dispute
under the Disputes clause of this contract. If the Schedule provides
rates for overtime, the premium portion of those rates will be
reimbursable only to the extent the overtime is approved by the
Contracting Officer.
(b) Materials. For the purposes of this clause--
(1) Direct materials means those materials that enter directly
into the end product, or that are used or consumed directly in
connection with the furnishing of the end product or service.
(2) Materials means--
(i) Direct materials, including supplies and services
transferred between divisions, subsidiaries, or affiliates of the
contractor under a common control;
(ii) Subcontracts for supplies and services;
(iii) Any other direct costs (e.g., travel, computer usage
charges, etc.); and
(iv) Applicable indirect costs.
(3) If the Contractor furnishes its own materials that meet the
definition of a commercial item at 2.101 of the FAR, the price to be
paid for such materials shall be the Contractor's established
catalog or the market price, adjusted to reflect the--
(i) Quantities being acquired; and
(ii) Actual cost of any modifications necessary because of
contract requirements.
(4) Subcontracts. (i) Unless the subcontractor is listed in
paragraph (b)(4)(ii) of this clause, subcontract costs will be
reimbursed at actual costs as specified in paragraph (b)(5).
(ii) Provided the subcontract agreement requires the Contractor
to substantiate the subcontract hours and employee qualification,
the Contractor shall be reimbursed at the hourly rates prescribed in
the schedule for the following subcontractors:
[Insert subcontractor name(s)or, if no subcontracts are to be
reimbursed at the hourly rates prescribed in the schedule, insert
``None.'']
[If this is an indefinite delivery contract, the Contracting
Officer may insert ``Each order must list separately the
subcontractor(s) for that order or, if no subcontracts under that
order are to be reimbursed at the hourly rates prescribed in the
schedule, insert `None'.'']
(5) Except as provided for in paragraphs (b)(3) and (4) of this
clause, the Government will reimburse the Contractor for allowable
cost of materials provided the Contractor--
(i) Has made payments for materials in accordance with the terms
and conditions of the agreement; or
(ii) Makes these payments within 30 days of the submission of
the Contractor's payment request to the Government and such payment
is in accordance with the terms and conditions of the agreement or
invoice.
(6) Payment for materials is subject to the Allowable Cost and
Payment clause of this contract. The Contracting Officer will
determine allowable costs of materials in accordance with Subpart
31.2 of the Federal Acquisition Regulation (FAR) in effect on the
date of this contract.
(7) The Contractor may include allocable indirect costs and
other direct costs to the extent they are--
(i) Comprised only of costs that are clearly excluded from the
hourly rate;
(ii) Allocated in accordance with the Contractor's written or
established accounting practices; and
(iii) Indirect costs are not applied to subcontracts listed in
paragraph (b)(4) for reimbursement at the labor hour rate.
(8) To the extent able, the Contractor shall--
(i) Obtain direct materials and subcontracts at the most
advantageous prices available with due regard to securing prompt
delivery of satisfactory materials; and
(ii) Take all cash and trade discounts, rebates, allowances,
credits, salvage, commissions, and other benefits. When unable to
take advantage of the benefits, the Contractor shall promptly notify
the Contracting Officer and give the reasons. The Contractor shall
give credit to the Government for cash and trade discounts, rebates,
scrap, commissions, and other amounts that have accrued to the
benefit of the Contractor, or would have accrued except for the
fault or neglect of the Contractor. The Contractor shall not deduct
from gross costs the benefits lost without fault or neglect on the
part of the Contractor, or lost through fault of the Government.
(9) Except as provided for in 31.205-26(e) and (f) of the FAR,
the Government will not pay profit or fee to the prime contractor on
materials.
(10) If the Contractor enters into any subcontract that requires
consent under the clause at 52.244-2, Subcontracts, without
obtaining such consent, the Government is not required to reimburse
the Contractor for any costs incurred under the subcontract prior to
the date the Contractor obtains the required consent. Any
reimbursement of subcontract costs incurred prior to the date the
consent was obtained shall be at the sole discretion of the
Government.
* * * * *
(d) Ceiling price. The Government will not be obligated to pay
the Contractor any amount in excess of the ceiling price in the
Schedule, and the Contractor shall not be obligated to continue
performance if to do so would exceed the ceiling price set forth in
the Schedule, unless and until the Contracting Officer notifies the
Contractor in writing that the ceiling price has been increased and
specifies in the notice a revised ceiling that shall constitute the
ceiling price for performance under this contract. When and to the
extent that the ceiling price set forth in the Schedule has been
increased, any hours expended and material costs incurred by the
Contractor in excess of the ceiling price before the increase shall
be allowable to the same extent as if the hours expended and
material costs had been incurred after the increase in the ceiling
price.
(e) Audit. At any time before final payment under this contract,
the Contracting Officer may request audit of the vouchers and
supporting documentation. Each payment previously made shall be
subject to reduction to the extent of amounts, on preceding
vouchers, that are found by the Contracting Officer not to have been
properly payable and shall also be subject to reduction for
overpayments or to increase for underpayments. Upon receipt and
approval of the voucher designated by the Contractor as the
``completion voucher'' and supporting documentation, and upon
compliance by the Contractor with all terms of this contract
(including, without limitation, terms relating to patents and the
terms of (f) and (g) of this section), the Government shall promptly
pay any balance due the Contractor. The completion voucher, and
supporting documentation, shall be submitted by the Contractor as
promptly as practicable following completion of the work under this
contract, but in no event later than 1 year (or such longer period
as the Contracting Officer may approve in writing) from the date of
completion.
* * * * *
(h) Interim payments on contracts for other than services. * * *
* * * * *
(i) Interim payments on contracts for services. For interim
payments made prior to the final payment under this contract, the
Government will make payment in accordance with the Prompt Payment
Act (31 U.S.C. 3903) and prompt payment regulations at 5 CFR part
1315.
(End of clause)
Alternate I (Date). If a labor-hour contract is contemplated,
the Contracting Officer shall add the following paragraph (i) to the
basic clause:
(i) The terms of this clause that govern reimbursement for
materials furnished are considered to have been deleted.
[FR Doc. 05-18964 Filed 9-23-05; 8:45 am]
BILLING CODE 6820-EP-S