Sec. 21.06.03.05. Time and Material Contracts Labor Hour Contracts

A. Definitions.

(1) "Labor hour contract" means a contract which only provides for the payment of labor performed.

(2) "Time and material contract" means a contract which provides an agreed basis for payment for materials supplied and labor performed.

B. Ceiling. Labor hour and time and material contracts shall state a dollar ceiling that may not be exceeded without the prior determination and approval of the procurement officer.

C. Determinations. Labor hour and time and material contracts shall be entered into only after the procurement officer or designee determines that:

(1) State personnel have been assigned to closely monitor the performance of the work; and

(2) In the circumstances, it would not be practicable to use any other type of contract to obtain the needed items in the time required and at the lowest cost or price to the State.