ART - T&M Contracts 2012

The document discusses time and material (T&M) contracts, which are a method of contracting that can be prone to abuse. T&M contracts involve paying for direct labor at a fixed hourly rate and materials at cost or with a markup. The most common types of T&M contracts are repair or service contracts. The document emphasizes the importance of researching pricing structures and labor rates for different categories of labor. It also highlights the role of the contract administrator in verifying the work and time spent by each category of labor. The document suggests using sign-in sheets and government-issued IDs to verify personnel and using a database to track the vendor's personnel. It also mentions the need for clear rules and communication between the buyer, client, and contract administrator. The document addresses concerns about controlling costs and suggests providing detailed information and approval before work begins. It also suggests verifying claims for additional work and considering a "not to exceed" clause or other methods to limit costs. The document emphasizes the importance of verification and suggests seeking help from experts or consultants when needed. Overall, the document provides guidance and recommendations for successfully managing T&M contracts.