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Home News Archive DOD Revises DFARS to Limit T&M and Labor Hour Contracts for Commercial Services

DOD Revises DFARS to Limit T&M and Labor Hour Contracts for Commercial Services

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Recently, the DAR Council issued an interim rule, implementing Section 805 of the Fiscal Year 2008 National Defense Authorization Act, revising the Defense Federal Acquisition Regulation Supplement (DFARS) to limit use of T&M and Labor Hour contracts for acquisition of commercial services to the following limited circumstances:

1.  Services in support of a commercial item
2.  Emergency repair services

Any other use of T&M or Labor Hour contracts for acquisition of commercial services by DOD or NASA requires that the agency head approve the action.

Here is the interim rule.
 

Newsflash

Effective January 1, 2019, Nick Sanders has been named as Editor of two reference books published by LexisNexis. The first book is Matthew Bender’s Accounting for Government Contracts: The Federal Acquisition Regulation. The second book is Matthew Bender’s Accounting for Government Contracts: The Cost Accounting Standards. Nick replaces Darrell Oyer, who has edited those books for many years.