Congress Limits T&M, Allows Task-Order Protests Congress has approved new restrictions on the use of time-and-materials contracts along with other measures aimed at improving contractor accountability. The 2008 Defense authorization bill, H.R. 1585, was passed by both houses and is awaiting President Bush’s signature. The final bill softened Senate language that would have placed strict limits on T&M and labor-hour contracts. Section 805 permits the Defense Department to use those contract types for commercial services in support of a commercial item and for emergency repairs. But any other acquisition of commercial services on a T&M contract would have to be approved by the agency head. While the bill is “less onerous” than the Senate version, “it creates some confusion and concerns,” said Stan Soloway, president of the Professional Services Council. He predicted the requirement for high-level approval would be “very problematical.” Critics of T&M and labor-hour contracts complain that they transfer the risk of higher costs to the government. The bill allows protests on task orders worth more than $10 million. Industry officials said the protests would drive up costs, especially for small companies. The bill requires fair notice for all eligible contractors on task and delivery orders above $5 million. It requires public disclosure of the justification for sole source contracts. Those provisions apply to civilian agencies, as well as DOD. It includes new restrictions on public-private job competitions. The final bill creates a Commission on Wartime Contracting to monitor activities in Iraq, Kuwait and Afghanistan. That amendment was sponsored by Sen. Jim Webb, D-VA, and other freshman Democrats. Webb said the commission is patterned after a World War II watchdog panel headed by freshman Sen. Harry Truman, D-MO.