Common use of Time-and-Materials Task Orders Clause in Contracts

Time-and-Materials Task Orders. (1) The Subcontractor will be reimbursed for direct labor effort actually expended in performing task orders that are priced on a Time and Materials basis at the Fixed Hourly Rates stated in the task orders. Reimbursements to the Subcontractor for direct labor effort shall not exceed the amount stated in each task order as the maximum amount of the University’s liability for Direct Labor Charges. (2) If Other Direct Charges (materials) are needed for performance of work called for in time and materials task orders and if the Fixed Hourly Rates listed in Appendix E do not include an allocation for such costs, funds may be allotted in task orders for reimbursement of such charges. The Subcontractor shall only be reimbursed for Other Direct Charges when funds are allotted in task orders. Reimbursement to the Subcontractor for Other Direct Charges shall be for actual cost and shall not exceed the amount stated in each task order as the maximum amount of the University’s liability for Other Direct Charges. (3) Direct labor charges or other direct charges that exceed the stated maximum amounts for each category shall not be reimbursed by the University to the Subcontractor even if the task order ceiling price has not been breached. (4) The Cost Principles and Procedures of Subpart 31.2 of the Federal Acquisition Regulation in effect on the date of this Agreement shall be the basis for establishing allowability and allocability for costs. Profit shall not be paid on reimbursements for other direct charges. (5) The total cost to the University for the performance of work called for under time and materials task orders issued under this Agreement shall not exceed the ceiling price set forth in each task order. If at any time prior to the completion date of a task order the Subcontractor has reason to believe that the work cannot be completed within the maximum amounts stated for direct labor charges or other direct charges of the stated ceiling price, he shall promptly notify the University Contract Administrator in writing providing either a request to reallocate the maximum amounts for direct labor charges and other direct charges or a revised estimate of the total cost to complete the work, including supporting reasons and documentation. (6) The University will not pay the Subcontractor any amount in excess of the ceiling price set forth in each task order. The Subcontractor is not obligated to continue performance or otherwise incur costs in excess of the ceiling price or the maximum amounts for direct labor charges or other direct charges unless and until the University Contract Administrator has notified the Subcontractor in writing that the ceiling price and/or the appropriate maximum amount has been increased and specifies the revised maximum amounts and, if appropriate, the revised ceiling price.