CEMP-E
AEI for Installation Support
Thursday, 17 October 1996
(3) Advantages. The advantage of using a JOC versus an IDC, is that a JOC is suitable for
a broader range of construction services.
h. Time and Materials (T&M) Contracts.
(1) Description.
(a) A time-and-materials contract provides for acquiring supplies or services on the
basis of (1) direct labor hours at specified fixed hourly rates that include wages, overhead and
profit and (2) materials at cost, including materials handling costs, if appropriate.
(b) The Order will state the effort to be accomplished, the labor categories and
associated man-hours estimated to be necessary to complete the work, and the estimated cost.
(c) Project specifications do not contain specific scopes of work, but are loosely
defined (e.g., minor construction within existing facilities). The Bid Schedule is comprised of a
few line items for the contractor's professional level personnel. Contractors are selected based
primarily upon their technical proposals (which include management strategy, prior experience,
subcontractor pool), as well as prices for the professional level personnel.
(d) Scopes of work are developed by the Government. Detailed work plans can be
determined by either the Government or the contractor, after a site visit. The contractor can be
tasked to fully develop the project work plan as long as the contractor's efforts do not include the
development of professional design documents (plans and specifications). If the contractor or the
Government determines that a design is required, then the Government must prepare the design
using its own in-house forces or the services of an A-E firm that has been selected in accordance
with the Brooks Act professional services acquisition procedures.
(e) Orders may be issued as Time and Materials, which means the contractor performs
the work required, within a specified not-to-exceed amount, and bills the Government for the
actual cost of doing the work (supported by invoices, subcontractor quotes indicating adequate
competition, professional level hours expended, etc.). Orders may also be issued as firm-fixed-
price, which means the contractor and the Government arrive at a mutual agreement with regards
to price and time prior to the work taking place.
(2) Application. Almost unrestricted as to the types of work that can be performed.
(a) Work is predominantly of a maintenance and repair nature, but can include minor
new construction within Operations and Maintenance, Army (O&M) funding restrictions.
IV-7
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