- Project Title:
- Controls over Time and Materials and Labor Hours Contracts
- Start Date:
- Monday, September 25, 2017
- Estimated Report Release Date:
- March 2018
U.S. Postal Service Contracting Officers (CO), in collaboration with the Purchase and Supply Management team, are responsible for selecting the best contract type for a purchase. Certain contract types — such as Time and Materials (T&M) and Labor Hour contracts — are riskier than others and require adequate monitoring to ensure efficiency and prevent waste. The CO must include a ceiling price and applicable clauses in the contract and must provide justification if the ceiling price will be exceeded.
Our audit will determine if COs are administering T&M and Labor Hour contracts according to the Supplying Principles and Practices (SP&P).
- What are some best practices for controlling costs in T&M and Labor Hour contracts?
- What internal controls should be implemented to ensure COs are monitoring T&M and Labor Hour contracts adequately?