Attachment 4.pdf

DTFH61-12-R-00031

Attachment 4

Department of Transportation Federal Highway Administration

Office of Acquisition Management

Billing Instructions

Cost Reimbursement Contracts

1. Introduction

Reimbursement procedures related to negotiated cost-type contracts involving the preparation and submission by Contractors of properly prepared vouchers to the Government. These instructions are provided for the use of Contractors in the preparation and submission of vouchers requesting reimbursement for work performed under the contract. The submission of vouchers as suggested herein will keep the correspondence and other causes for delay to a minimum and will thus assure prompt payment to the Contractor.

2. Forms to be Used

In requesting reimbursement, Contractors are urged to use the regular Government voucher forms, “Public Voucher for Purchases and Services Other than Personal,” SF-1034 (Exhibit A), and “Public Voucher for Purchases and Services Other than Personal - Continuation Sheet,” SF-1035 (Exhibit B). The Contractor may also use its own forms, provided the Contractor’s forms follow the format of SF-1034 and SF-1035.

3. Preparation

Each billing shall be prepared in an original and two copies, arranged in two parts as follows, and submitted at intervals as specified by the terms of the contract. Each billing must be sequentially numbered, beginning with one for each contract. Billings for different contracts may not be co-mingled on a single billing.

Part I - Summary of All Costs

This portion consists of a listing of cost elements, by general categories, i.e., direct labor, overhead, etc., showing the amounts incurred during the period covered by the billing. The reimbursement costs incurred, and the dates for the period for which billing is made, must fall within the period as set forth in the contract.

The Contractor shall include the following signed certification for support service contracts:

“I certify that the hours and/or materials identified are allocable to the job being billed and that the costs are justified as attributable solely to the performance of this Government contract.”

The Contractor shall include the following signed certification for all other cost reimbursement contracts other than support services:

“I certify that all payments requested have been incurred, are allocable to this contract and have not been billed previously.”

Part II - Details of Direct and Indirect Costs:

This part consists of a detailed statement of direct and indirect costs and supports each category of costs shown in Part I. The Contractor shall include a breakdown for the current billing period and cumulative totals since contract execution. The detailed information to be continued in Part II is to assist the Contracting Officer and program office personnel in verifying voucher vis-à-vis contract performance. The categories of costs should be itemized and described as follows:

a. Direct Labor

Direct labor costs consist of salaries and wages paid for scientific, technical, and other work performed pursuant to the terms of the contract and shall be billed as follows:

List employees whose salaries or wages, or portions thereof, were charged to the contract; show the name, title, rate, days (or hours) worked and amount for each individual. Indicate if the labor rates include fringe benefits. If it is the Contractor’s established practice to treat fringe benefits as a direct cost at a percentage of total labor costs, show the rate and amount as a separate item. If it is the Contractor’s established practice to treat fringe benefits as an indirect cost, such costs shall be billed separately as an indirect cost item.

The cost of direct labor charged directly to the contract shall be supported by time records maintained in the Contractor’s office.

(NOTE: Fringe benefits, bonuses, etc., are usually treated as indirect costs for inclusion in the overhead pool; however, they may be treated as direct labor costs or as “Other Direct Costs” if this treatment is in accordance with generally accepted accounting standards).

Premium pay is the difference between the rates normally paid on a straight time basis, and amounts paid for overtime or shift work. Such pay is not included in the direct labor and shall not be included in the billing for “direct labor” unless the Contractor has permission to utilize premium rates.

Unless provided for in the contract, premium pay must be authorized by the Contracting Officer in advance. Billings for unauthorized premium pay cause delays in payment due to suspensions and exchange of correspondence.

Citations to authorizations for premium pay will avoid delays in payment.

Authorized premium pay may be shown in Part I as a single item; in Part II it must be separately itemized for each position or job category showing the amount and a citation of the Contracting Officer’s letter of authorization.

If there is an annual escalation clause for direct labor in the contract, these rates shall not be exceeded in the billings.

b. Materials and Supplies

Only those items which the Contractor normally treats as “direct costs” shall be claimed under this heading. Items costing less than $25 should be listed by category of materials or supplies (e.g., film, rentals, office supplies).

Materials and supplies which exceed a unit price of $25 should be billed separately. Show the description and dollar amount of individual items. All materials and supplies charges must be supported by the Contractor’s records.

c. Other Direct Costs

NOTE: Other direct costs represent expenses related directly to the contract, provided such expenses are consistently treated as direct costs rather than indirect costs.

d. Travel

When authorized in the contract as a direct cost, travel costs directly related to specific contract performance may be billed as a direct cost. Travel costs detail in Part II shall include:

1. Name of traveler and official title.

2. Purpose of trip.

3. Dates of departure and return to starting point (station or airport).

4. Transportation costs, identified as to rail, air, private automobile (including mileage and rate) and taxi.

5. Unless otherwise authorized, travel costs will be reimbursed based on

DOT Travel Regulations. This regulation provides for CONUS Per Diem reimbursement prescribed by GSA. Current regulation limits first and last days of travel to 3/4 Per Diem for each day.

If travel is made at other than economy fares, a statement shall be included indicating the reason for the deviation. Also, a copy of the air or rail ticket shall be included.

e. Consultant Fees

Part II of the voucher shall include the consultant’s name, rate, number of days or parts of days and the total amount of charges.

f. Subcontract Payments

The voucher shall include the name of the subcontractor and the total amount of charges, supported by a breakdown by elements of cost.

g. Equipment

Nonexpendable equipment must be identified, showing name of article, make, model, number of units, unit cost, and total cost.

h. Indirect Costs

Pending the establishment of final negotiated indirect rates for the Contractor’s fiscal year or period of contract, whichever is applicable, indirect costs, i.e., overhead, fringe benefits and general and administrative expense must be billed at rates set forth in the contract. Rates can be changed during performance of the contract only by contract modification. When the rates are changed, the Contractor shall show revised rates on succeeding vouchers.

i. Fixed-Fee

Fixed-Fee is to be billed in accordance with the terms of the contract.

j. Cost of Money

If applicable, cost of money shall be billed at rates set forth in the contract.

k. Withholding

Indicate the amount of cost/fee to be deducted from the cost subtotal, along with the percentage of withholding, as set forth in the contract.