Official text of 2452.216-81
As prescribed in 2416.506-70(f), insert the following clause in all level-of-effort term contracts:
LEVEL OF EFFORT AND FEE PAYMENT (APR 2019)
(a) The total level of effort to be provided under this contract is ______hours. The Contractor shall be reimbursed for the actual labor costs incurred.
(b) The contractor shall be paid the fixed fee specified in B.____, Estimated Cost and Fixed Fee, herein, on a prorated basis in proportion to the percentage of the level of effort (LOE) performed at the time of billing in accordance with the following formula:
(Number of acceptable hours delivered) divided by (Total hours in level of effort) × (Total fixed fee) = Fee payment
(e.g., 1,000 hours delivered/10,000 hours (LOE) × $15,000 = $1,500)
(c) In no event shall the amount of fee paid under the contract exceed the total fixed fee specified in B.[ ], Estimated Cost and Fixed Fee, herein.
(End of clause)
Where it's prescribed
As prescribed in 2416.506-70(f), insert the following clause in all level-of-effort term contracts:
Verifying this text
The text above is reproduced verbatim from GSA's published source files for the Housing and Urban Development supplement. The controlling version is the one in the Code of Federal Regulations: 2452.216-81 on eCFR.