Limitation on T&M and LH Contracts – Determinations and Findings

This is a federal Determination and Findings (D&F) document justifying the use of Time-and-Materials (T&M) and Labor-Hour (LH) contract types for a fire suppression systems maintenance requirement at Scott Air Force Base. The contracting office is the 375th Contracting Squadron, located at Scott AFB, Illinois.

The requirement involves semi-annual inspection and maintenance of 28 wet chemical fire extinguishing systems in 13 commercial cooking facilities, plus annual inspection and maintenance of 17 Guardian III residential fire suppression systems in 17 non-commercial cooking facilities at SAFB. Additional services include hydrostatic testing of cylinders, replacement of fusible links, and procurement of miscellaneous essential parts. The contract will have a base year plus four option years (5 years total), with a potential six-month extension available at the contracting officer's discretion. The anticipated Contract Line Item Numbers (CLINs) include: CLIN X001 for semi-annual inspections and maintenance of 28 wet chemical systems (FFP); CLIN X002 for annual inspections of 17 Guardian residential systems (FFP); CLIN X003 for fusible link replacements (T&M); CLIN X004 for cylinder hydro testing (FFP); CLIN X005 for reimbursable parts (T&M); CLIN X006 for additional labor hours (LH); and CLIN X007 for nitrogen cylinder replacements (T&M). The contractor has not yet been identified (TBD), and the contract number is also TBD.

The D&F justifies T&M and LH pricing for CLINs X003, X005, X006, and X007 because the extent and duration of these services cannot be accurately estimated at the time of contract award. The government conducted market research on October 15, 2024, which resulted in interest from three vendors. The previous contract was awarded to Optimum Low Voltage under NAICS 238220 (Plumbing, Heating, and Air-Conditioning Contractors), but the government determined NAICS 561620 (Facilities Support Services) better reflects this service requirement. The D&F explains that fusible links, reimbursable parts, additional labor hours, and nitrogen cylinder replacements are inherently unpredictable due to environmental factors, usage variability, unexpected events, equipment quality variations, and regulatory changes. The requirement has been structured to minimize T&M and LH use by establishing FFP CLINs for the majority of anticipated costs, with T&M and LH limited only to those services where cost estimation is impossible. The contracting officer determined that no other contract type is suitable and that the use of firm-fixed-price or fixed-price with economic price adjustment contracts would expose the government to unreasonably high costs. The D&F was issued December 9, 2024, and requires approval from the Senior Contracting Official per AFFARS 5316.601(d)(i)(A) authority levels.