NAVY 5252.216-9201 Payment of Fixed Fee Based on Staff-hours (Term Type) Basic (Nov 2003) (Current)

This clause has not been authorized for official release. We recommend deferring to the text of the clause in your RFP or contract.

5252.216-9201 Payment of Fixed Fee Based on Staff-hours (Term Type) (Nov 2003)

The fixed fee for work performed under this contract is $ * that not less than * staff-hours of direct labor are so employed on such work by the Contractor. If substantially less than ** staff-hours of direct labor are so employed for such work, the fixed fee shall be equitably reduced to reflect the reduction of work. The Government shall make payments to the Contractor when requested as work progresses, but not more frequently than biweekly, on account of the fixed fee, equal to * percent of the amounts invoiced by the Contractor under the “Allowable Cost and Payment” clause hereof for the related period, subject to the withholding provisions of paragraph (b) of the “Fixed Fee” clause provided that the total of all such payments shall not exceed eighty-five percent (85%) of the fixed fee. Any balance of fixed fee due the contractor shall be paid to the Contractor, and any overpayment of fixed fee shall be repaid to the Government by the Contractor, or otherwise credited to the Government, at the time of final payment. ***

* To be determined at the task order level.
** Unless otherwise established at the task order level, “substantially less” is less than 95% of staff-hours. If, at the end of the task order term, the total number of hours utilized is substantially less than the estimated staff-hours of direct labor, the total fee due the contractor shall be equitably reduced so as to be in direct proportion to the number of staff-hours utilized in the same ratio of fee to the total staff-hours set forth in the task order.
*** If the Contracting Officer determines, for any reason, to adjust the number of staff-hours set forth herein above, such adjustments shall be made by written modification. In any case in which the number of staff-hours is adjusted, the fee will be increased or reduced utilizing the same percentage of fee established in the task order.

(End of clause)

Supplies ✖ Time and Materials ✖ FFP ✖ 

Working with a set of FAR clauses from an RFP or contract?

Try pasting them into our tool to instantly generate a risk profile, including the basic flow down recommendation.


Works best with Chrome and Edge browsers!