eLaws | eCases | United States Code | Federal Courts |
 Code of Federal Regulations (Last Updated: November 8, 2024)
 Title 48 - Federal Acquisition Regulations System
 Chapter 13 - Department of Commerce
 SubChapter H - Clauses and Forms
 Part 1352 - Solicitation Provisions and Contract Clauses
 Subpart 1352.2 - Text of Provisions and Clauses

  § 1352.216-71 - Level of effort (cost-plus-fixed-fee, term contract).  

Latest version.

  • 1352.216-71 Level of effort (cost-plus-fixed-fee, term contract).

    As prescribed in 48 CFR 1316.307(b), insert the following clause:

    Level of Effort (Cost-Plus-Fixed-Fee, Term Contract) (Date)

    (a) In performance of the effort directed in this contract, the contractor shall provide the total of Direct Productive Labor Hours (DPLH) as specified in Part I, Section B during the term specified in Section ________. DPLH is defined as actual work hours exclusive of vacation, holidays, sick leave, and other absences.

    (b) Only the DPLH categories indicated below shall be charged directly to the contract. It is estimated that the DPLH will be expended approximately as follows:

    Labor category Base
    period     		Option
    period I     		Option
    period II     		Option
    period III
    xxxxxxxxxx xxxx xxxx xxxx xxxx
    xxxxxxxxxx xxxx xxxx xxxx xxxx
    Total Direct Labor xxxx xxxx xxxx xxxx

    (c) The hours specified above are provided as estimates only. If the actual amount of hours incurred falls within 90% to 110% of this estimate, the fee shall not be adjusted.

    (d) In the event that the contractor shall be required to provide less than 90% of the estimated DPLH, the fixed fee of the contract shall be equitably adjusted by unilateral modification to the contract. The fixed fee adjustment shall be based solely upon the difference between the DPLH actually provided and 90% of the estimated DPLH, calculated as follows:

    Adjusted Fixed Fee = (Actual DPLH/(.9 × Estimated DPLH)) × Specified Fixed Fee

    (e) In the event that the contractor shall be required to provide more than 110% of the estimated DPLH, the fixed fee of the Contract shall be equitably adjusted by unilateral modification to the Contract. The fixed fee adjustment shall be based solely upon the difference between the DPLH actually provided and 110% of the estimated DPLH, calculated as follows:

    Adjusted Fixed Fee = (Actual DPLH/(1.1 × Estimated DPLH)) × Specified Fixed Fee

    (f) These terms and conditions do not supersede the requirements of either FAR clause 52.232-20 “Limitation of Cost” or FAR clause 52.232-22 “Limitation of Funds.”

    (End of clause)