(90) Supply chains shall annually monitor their percentage of acquisition dollars being spent on T&M/LH contracts and orders.
At the earliest opportunity, particularly when a service contracting requirement becomes repetitive and more predictable in nature, contracting officers should migrate T&M/LH vehicles to other contract types, preferably a fixed price arrangement, if possible. Of particular focus should be the use of T&M/LH contracts and orders for professional, administrative, management support, information technology, and communication services. HCAs and, for activities for which the Director, Acquisition Management is the HCA, CCOs, shall report to the J-7 CAE at the close of the calendar year any percentages of T&M/LH contract action dollars for the preceding fiscal year exceeding 8 percent of service dollars, including a discussion of the supply chain’s strategy to decrease the use of T&M/LH contract type and the risk mitigation measures being used in administering these contract types.
(c) Limitations.
(90) "Not to exceed" price ceilings shall be included in each option and delivery order.
