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https://www.acquisition.gov/far/16.601
A time-and-materials contract provides for acquiring supplies or services on the basis of-. (1) Direct labor hours at specified fixed hourly rates that include wages, overhead, general and administrative expenses, and profit; and. (2) Actual cost for materials (except as provided for in 31.205-26 (e) and (f)). (c) Application.
http://www.wifcon.com/discussion/index.php?/topic/2730-tm-labor-hour-contract/
236 days of labor = 1888 labor hours. The total cost for the hours plus all benefits, payroll, overhead, G&A and profit equal a total price of $62,000. I then took the price and divided by the labor hours (1888) to calculate the hourly rate $32.84, this is the price used to invoice all hours worked.
https://www.acqnotes.com/Attachments/Audit%20Guidance%20on%20Time-and-Materials%20(T&M)%20and%20Labor%20Hour%20(LH)%20Contracts.pdf
subcontract and intercompany labor hours to the respective source documents. For example, claimed subcontractor hours should be reconciled to subcontractor invoices and/or timesheets. For T&M/LH contracts awarded prior to February 12, 2007, auditors should continue to review claimed cost in accordance with existing contract terms.
https://www.acq.osd.mil/dpap/dars/pgi/attachments/2006d030_overview.pdf
T&M/LH contracts is at Alternate I of FAR 52.212-4. The payment clause for noncommercial T&M/LH contracts is at FAR 52.232-7. In addition to the clause at FAR 52.232-7, a noncommercial T&M/LH contract must also include the Allowable Cost and Payment Clause at …
https://www.transit.dot.gov/funding/procurement/third-party-procurement/time-materials-contracts
In a T&M contract, the contract prices are stated for the hours and labor categories specified in the contract. If the work assigned differs from that originally defined, and thus requires different categories and hours, then the parties must change the contract to add the new categories and hours, and the agreed upon prices for those ...
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