Common use of Allowable Cost Clause in Contracts

Allowable Cost. For Cost Type Contracts : (a) The Contractor shall submit invoices in reasonable detail to the address indicated in the Agreement as work progresses. A statement of the claimed allowable cost for performing the work under this Agreement shall accompany each invoice. If applicable, invoices shall include a list of the property acquired by the Contractor to which title vests in the Government in accordance with the Government Property clause of this Section. Invoices may be submitted once every month (or at more frequent intervals if approved by BSA). Payments may be made by check or electronic funds transfer, at BSA’s option. Payment shall be deemed to have been made as of the date of mailing or date on which an electronic funds transfer was made. (b) For reimbursement of work performed under this Agreement, BSA shall pay the Contractor allowable costs in accordance with this Agreement and Subpart 31.2 of the FAR as supplemented by Subpart 931.2 of the DEAR in effect on the date of this Agreement. The term “cost” includes only: (i) costs the Contractor has paid for items or services directly for the Agreement at the time of the invoice, and (ii) provided the Contractor is not delinquent in paying costs of Agreement performance in the ordinary course of business, costs incurred but not necessarily paid for materials from Seller’s inventory, direct labor, direct travel, other direct in-house costs, allocable and allowable indirect costs. Costs and expenses incurred by BSA that are determined by DOE to be unallowable that result from the acts or omissions of the Contractor or its subcontractors may be recovered by BSA from the Contractor. (c) Final annual indirect cost rates and the appropriate bases shall be established in accordance with Subpart 42.7 of the FAR in effect for the applicable period. Within 90 days after expiration of each of its fiscal years, the Contractor shall submit proposed final indirect cost rates for that period and supporting cost data to BSA or the cognizant audit agency, whichever applies. The Contractor and BSA (or the cognizant audit agency) shall determine and execute a written understanding of the final indirect cost rates. (d) Quick close-out procedures of Subpart 42.7 of the FAR may be used. (e) At any time before final payment, BSA may have the Contractor’s invoices and statements of cost audited. Any payment may be reduced by amounts found by BSA not to constitute allowable costs or adjusted for prior overpayments or underpayments. (f) The Contractor shall submit a completion invoice no later than one year from the completion date. On approval of that invoice and the Contractor’s compliance with this Agreement, BSA shall pay any balance of allowable costs and that part of the fee not previously paid. The Contractor shall pay to BSA any refunds, rebates, credits or other amounts accruing to or received by the Contractor or any assignee under this Agreement to the extent that those amounts are properly allocable to costs for which the Contractor has been reimbursed by BSA. Before final payment under this Agreement, the Contractor and each assignee shall provide an acceptable assignment to BSA of refunds, rebates, credits or other amounts properly allocable to costs for which the Contractor has been reimbursed by BSA under this Agreement and a release discharging BSA and the Government, their officers, agents and employees from all liabilities, obligations and claims arising out of or under this Agreement except claims specifically stating the exact basis and amount.

Allowable Cost. For Cost Type Contracts Contracts: (a) The Contractor shall submit invoices in reasonable detail to the address indicated in the Agreement as work progresses. A statement of the claimed allowable cost for performing the work under this Agreement shall accompany each invoice. If applicable, invoices shall include a list of the property acquired by the Contractor to which title vests in the Government in accordance with the Government Property clause of this Section. Invoices may be submitted once every month (or at more frequent intervals if approved by BSA). Payments may be made by check or electronic funds transfer, at BSA’s option. Payment shall be deemed to have been made as of the date of mailing or date on which an electronic funds transfer was made. (b) For reimbursement of work performed under this Agreement, BSA shall pay the Contractor allowable costs in accordance with this Agreement and Subpart 31.2 of the FAR as supplemented by Subpart 931.2 of the DEAR in effect on the date of this Agreement. The term “cost” includes only: (i) costs the Contractor has paid for items or services directly for the Agreement at the time of the invoice, and (ii) provided the Contractor is not delinquent in paying costs of Agreement performance in the ordinary course of business, costs incurred but not necessarily paid for materials from Seller’s inventory, direct labor, direct travel, other direct in-house costs, allocable and allowable indirect costs. Costs and expenses incurred by BSA that are determined by DOE to be unallowable that result from the acts or omissions of the Contractor or its subcontractors may be recovered by BSA from the Contractor. (c) Final annual indirect cost rates and the appropriate bases shall be established in accordance with Subpart 42.7 of the FAR in effect for the applicable period. Within 90 days after expiration of each of its fiscal years, the Contractor shall submit proposed final indirect cost rates for that period and supporting cost data to BSA or the cognizant audit agency, whichever applies. The Contractor and BSA (or the cognizant audit agency) shall determine and execute a written understanding of the final indirect cost rates. (d) Quick close-out procedures of Subpart 42.7 of the FAR may be used. (e) At any time before final payment, BSA may have the Contractor’s invoices and statements of cost audited. Any payment may be reduced by amounts found by BSA not to constitute allowable costs or adjusted for prior overpayments or underpayments. (f) The Contractor shall submit a completion invoice no later than one year from the completion date. On approval of that invoice and the Contractor’s compliance with this Agreement, BSA shall pay any balance of allowable costs and that part of the fee not previously paid. The Contractor shall pay to BSA any refunds, rebates, credits or other amounts accruing to or received by the Contractor or any assignee under this Agreement to the extent that those amounts are properly allocable to costs for which the Contractor has been reimbursed by BSA. Before final payment under this Agreement, the Contractor and each assignee shall provide an acceptable assignment to BSA of refunds, rebates, credits or other amounts properly allocable to costs for which the Contractor has been reimbursed by BSA under this Agreement and a release discharging BSA and the Government, their officers, agents and employees from all liabilities, obligations and claims arising out of or under this Agreement except claims specifically stating the exact basis and amount.

Allowable Cost. (Applicable to All stages) a. For Cost Type Contracts : the purpose of reimbursing allowable costs (a) The Contractor shall submit invoices except as provided in reasonable detail to the address indicated in the Agreement as work progresses. A statement of the claimed allowable cost for performing the work under this Agreement shall accompany each invoice. If applicable, invoices shall include a list of the property acquired by the Contractor to which title vests in the Government in accordance with the Government Property clause subsection b of this Section. Invoices may be submitted once every month (or at more frequent intervals if approved by BSA, with respect to pension, deferred profit sharing, and employee stock ownership plan contributions). Payments may be made by check or electronic funds transfer, at BSA’s option. Payment shall be deemed to have been made as of the date of mailing or date on which an electronic funds transfer was made. (b) For reimbursement of work performed under this Agreement, BSA shall pay the Contractor allowable costs in accordance with this Agreement and Subpart 31.2 of the FAR as supplemented by Subpart 931.2 of the DEAR in effect on the date of this Agreement. The term “costcosts” includes only:only – (i) Those recorded costs the Contractor has paid for items or services directly for the Agreement that, at the time of the invoicerequest for reimbursement, andthe Contractor has paid by cash, check, or other form of actual payment for items or services purchased directly for the contract; (ii) provided When the Contractor is not delinquent in paying costs of Agreement contract performance in the ordinary course of business, costs incurred incurred, but not necessarily paid paid, for materials — (A) Supplies and services purchased directly for this Contract and associated financing payments to subcontractors, provided payments determined due will be made— (1) In accordance with the terms and conditions of a subcontract or invoice; and (2) Ordinarily within 30 days of the submission of the Contractor’s payment request to the Corporation; (B) Materials issued from Sellerthe Contractor’s inventory, direct labor, direct inventory and placed in the production process for use on this Contract; (C) Direct labor based on actual hours worked at an effective hourly rate; (D) Direct travel, other ; (E) Other direct in-house costs, ; and (F) Properly allocable and allowable indirect costs. Costs and expenses incurred costs according to the contractor’s normally accepted practices, as shown in the records maintained by BSA that are determined by DOE the Contractor for purposes of obtaining reimbursement under this Contract; and b. Accrued costs of Contractor contributions under employee pension plans shall be excluded until actually paid unless— (i) The Contractor’s practice is to be unallowable that result from make contributions to the acts retirement fund quarterly or omissions more frequently; and (ii) The contribution does not remain unpaid 30 days after the end of the Contractor applicable quarter or its subcontractors may shorter payment period (any contribution remaining unpaid shall be recovered by BSA excluded from the Contractor’s indirect costs for payment purposes). c. Notwithstanding the audit and adjustment of invoices or vouchers under subsection f of this Section, allowable indirect costs under this Contract shall be obtained by applying indirect cost rates established in accordance with this Section. d. Final indirect cost rates. (ci) Final annual indirect cost rates and the appropriate bases for each of the Contractor’s fiscal years during which Work was performed under this Contract shall be established in accordance with Subpart 42.7 of the FAR in effect for the applicable period. Within 90 days after expiration of each of its fiscal years, the Contractor shall submit proposed final indirect cost rates for that period and supporting cost data to BSA or the cognizant audit agency, whichever applies. contractor’s normally accepted practices. (ii) The Contractor and BSA (or the cognizant audit agency) Buyer shall determine and execute a written understanding of setting forth the final indirect cost rates. The understanding shall specify the agreed-upon final annual indirect cost rates, the bases to which the rates apply, the periods for which the rates apply, and any specific indirect cost items treated as direct costs in the settlement. The understanding shall not change any contract obligation, or specific cost allowance or disallowance provided for in this Contract. The understanding is incorporated into this Contract upon execution. (diii) Quick close-out procedures of Subpart 42.7 Within 120 days after settlement of the FAR may be used. (e) At any time before final payment, BSA may have annual indirect cost rates for the Contractor’s invoices and statements of cost audited. Any payment may be reduced by amounts found by BSA not to constitute allowable costs or adjusted for prior overpayments or underpayments. (f) The fiscal year in which is Contract is completed, Contractor shall submit a completion invoice no later than one year from or voucher to reflect the completion date. On approval of that invoice settled amounts and the Contractor’s compliance with this Agreement, BSA shall pay any balance of allowable costs and that part of the fee not previously paid. The Contractor shall pay to BSA any refunds, rebates, credits or other amounts accruing to or received by the Contractor or any assignee under this Agreement to the extent that those amounts are properly allocable to costs for which the Contractor has been reimbursed by BSA. Before final payment under this Agreement, the Contractor and each assignee shall provide an acceptable assignment to BSA of refunds, rebates, credits or other amounts properly allocable to costs for which the Contractor has been reimbursed by BSA under this Agreement and a release discharging BSA and the Government, their officers, agents and employees from all liabilities, obligations and claims arising out of or under this Agreement except claims specifically stating the exact basis and amountrates.