Common use of Time-and Material and Labor Clause in Contracts

Time-and Material and Labor. Hour Contract Types B.11.5.1 Maximum Rates for Time-and-material and Labor Hour Contract Types (a) APPLICABLE TO THE MASTER CONTRACT Maximum Rate Definition: “Maximum Rate” is a term that applies at the Master Contract level, and is not necessarily a term used at the Task Order level. It represents and establishes maximum allowable labor rates in the form of burdened rates for all Standard IT Service LCATs indicated in this Master Contract. The burdened rates include the direct labor cost, G&A, O/H, fringe benefits, and profit. The Maximum Rates accommodate the U.S. Government security classification up through the Secret level. These Maximum Rates apply exclusively applicable to all T&M and L-H contract type Task Orders and proposals. The Master Contract’s Maximum Rates are not typically the same rates as the fixed-price labor rates or ceiling labor rates that are established between the Contractor and issuing agency at the Task Order Level.