W900KK-23-R-0005_CBIDIII_RFP_20221104.docx

W900KK23R0005

Section A - Solicitation/Contract Form

A.1. Computer Based Instructional Development (CBID) III requirement will result in a Single Source Indefinite-Delivery Indefinite-Quantity (IDIQ) contract with an ordering period of five (5) years.

A.2. The IDIQ Not-to-Exceed Ceiling Amount is $49,300,000. The cumulative total of all Task/Delivery Orders awarded as a result of this IDIQ contract shall not exceed $49,300,000 over the life of the contract without prior written approval from the Procurement Contracting Officer (PCO).

MINIMUM

QUANTITY

MINIMUM

AMOUNT

MAXIMUM

QUANTITY

MAXIMUM

AMOUNT

of the initial Task Order (issued concurrent to award of the IDIQ contract), whichever is less.

A.3. The majority of this IDIQ contract will be performed as Firm Fixed Price (FFP). Additional contract type that may be utilized include Cost (no fee) for Travel. Each future Task/Delivery Order and/or Contract Line Item Number (CLIN) will be reviewed by the PCO to determine the applicable contract type to meet those requirements.

Section B - Supplies or Services and Prices

B.1 All rates, as proposed (or negotiated, if applicable) in the Price Workbook will be binding for the life of the contract and be used as maximum allowable ceiling rates when pricing all future task orders. The rates will be incorporated into Section J of the awarded CBID III contract in the Rate Guide at Attachment 4.

B.1.1 For the purposes of evaluation, the rates proposed by each Offeror will be used to calculate the Total Evaluated Price, including the price for each ordering period and the initial task order. The following statement will be incorporated into the subsequent contract:

B.1.2 The proposed labor categories and fully burdened labor rates for the prime contractor are incorporated as an attachment to the CBID III contract as maximum allowable ceiling rates to be used when pricing all future task orders. The proposed labor categories are not all inclusive. In the unlikely event that additional labor categories are deemed necessary, such additional labor categories and labor rates may be proposed and negotiated at the basic contract level (to include applicable attachments) if deemed necessary and acceptable by the Government to accomplish the task order requirements. The rates proposed for the additional labor categories should be commensurate with the pricing/estimating methodology employed to establish the rates awarded with the basic contract. Any new rates will be evaluated for fair and reasonableness, in accordance with FAR Subpart 15.4.

B.2 Offerors shall not provide pricing for the CLINs within Section B of the Solicitation. All pricing shall be completed via Attachment 29, CBID III Price Workbook.

B.3 The Contract Line Item Numbers (CLINs) listed below have been established as Firm-Fixed-Price (FFP) for the sole purpose of facilitating administration of the IDIQ Contract within the Government’s Procurement Desktop Defense System (PD2) software system. The Government anticipates travel CLINs will be Cost (no-fee)-type.

Each

CBID III Performance Per Order PWS

FFP

The Contractor shall perform in accordance with the Performance Based Statement (PWS) PWS-2021-045 and as further specified by individual Task/Delivery Orders issued under this IDIQ Contract on a Firm Fixed-Price basis.

FOB: Destination

PSC CD: U099

NET AMT

Each

Material/Other Direct Costs

The contractor shall provide material and other direct cost items necessary to successfully perform to the requirement defined in the individual delivery or task orders issued under this contract.

NET AMT

Lot

Travel (Cost CLIN)

The Contractor shall travel when necessary to support successful completion of the requirements defined in individual Task/Delivery Orders issued under this Contract in accordance with CBID III PWS paragraph 5.

NET AMT

Each

Technical Data & Reports

The contractor shall complete data requirements as defined in the CBID III PWS and listed at Section J of each individual delivery or task order issued under this contract. A representative summary of CDRLs are provided in Appendix B to the CBID III PWS.

NET AMT

Each

Service Contract Reporting (SCR)

Service contractor reporting of information is required in the System for Award Management (SAM) in accordance with CBID III Performance Work Statement (PWS) paragraph 4.8 and DFARS PGI 204.1703.

NET AMT

Each

Contractor Acquired Property (CAP)

(If Applicable) Deliver to the Government all Contractor Acquired Property not otherwise specified for delivery on an existing contract line item. See DFARS

PGI 245.402-71.

NET AMT

Each

CBID III Performance Per Order PWS

The Contractor shall perform in accordance with the Performance Based Statement (PWS) PWS-2021-045 and as further specified by individual Task/Delivery Orders issued under this IDIQ Contract on a Firm Fixed-Price basis.

NET AMT

Each

Material/Other Direct Costs

The contractor shall provide material and other direct cost items necessary to successfully perform to the requirement defined in the individual delivery or task orders issued under this contract.

NET AMT

Lot

Travel (Cost CLIN)

The Contractor shall travel when necessary to support successful completion of the requirements defined in individual Task/Delivery Orders issued under this Contract in accordance with CBID III PWS paragraph 5.

NET AMT

Each

Technical Data & Reports

The contractor shall complete data requirements as defined in the CBID III PWS and listed at Section J of each individual delivery or task order issued under this contract. A representative summary of CDRLs are provided in Appendix B to the CBID III PWS.

NET AMT

Each

Service Contract Reporting (SCR)

Service contractor reporting of information is required in the System for Award Management (SAM) in accordance with CBID III Performance Work Statement (PWS) paragraph 4.8 and DFARS PGI 204.1703.

NET AMT

Each

Contractor Acquired Property (CAP)

(If Applicable) Deliver to the Government all Contractor Acquired Property not otherwise specified for delivery on an existing contract line item. See DFARS

PGI 245.402-71.

NET AMT

Each

CBID III Performance Per Order PWS

The Contractor shall perform in accordance with the Performance Based Statement (PWS) PWS-2021-045 and as further specified by individual Task/Delivery Orders issued under this IDIQ Contract on a Firm Fixed-Price basis.

NET AMT

Each

Material/Other Direct Costs

The contractor shall provide material and other direct cost items necessary to successfully perform to the requirement defined in the individual delivery or task orders issued under this contract.

NET AMT

Lot

Travel (Cost CLIN)

The Contractor shall travel when necessary to support successful completion of the requirements defined in individual Task/Delivery Orders issued under this Contract in accordance with CBID III PWS paragraph 5.

NET AMT

Each

Technical Data & Reports

The contractor shall complete data requirements as defined in the CBID III PWS and listed at Section J of each individual delivery or task order issued under this contract. A representative summary of CDRLs are provided in Appendix B to the CBID III PWS.

NET AMT

Each

Service Contract Reporting (SCR)

Service contractor reporting of information is required in the System for Award Management (SAM) in accordance with CBID III Performance Work Statement (PWS) paragraph 4.8 and DFARS PGI 204.1703.

NET AMT

Each

Contractor Acquired Property (CAP)

(If Applicable) Deliver to the Government all Contractor Acquired Property not otherwise specified for delivery on an existing contract line item. See DFARS

PGI 245.402-71.

NET AMT

Each

CBID III Performance Per Order PWS

The Contractor shall perform in accordance with the Performance Based Statement (PWS) PWS-2021-045 and as further specified by individual Task/Delivery Orders issued under this IDIQ Contract on a Firm Fixed-Price basis.

NET AMT

Each

Material/Other Direct Costs

The contractor shall provide material and other direct cost items necessary to successfully perform to the requirement defined in the individual delivery or task orders issued under this contract.

NET AMT

Lot

Travel (Cost CLIN)

The Contractor shall travel when necessary to support successful completion of the requirements defined in individual Task/Delivery Orders issued under this Contract in accordance with CBID III PWS paragraph 5.

NET AMT

Each

Technical Data & Reports

The contractor shall complete data requirements as defined in the CBID III PWS and listed at Section J of each individual delivery or task order issued under this contract. A representative summary of CDRLs are provided in Appendix B to the CBID III PWS.

NET AMT

Each

Service Contract Reporting (SCR)

Service contractor reporting of information is required in the System for Award Management (SAM) in accordance with CBID III Performance Work Statement (PWS) paragraph 4.8 and DFARS PGI 204.1703.

NET AMT

Each

Contractor Acquired Property (CAP)

(If Applicable) Deliver to the Government all Contractor Acquired Property not otherwise specified for delivery on an existing contract line item. See DFARS

PGI 245.402-71.

NET AMT

Each

CBID III Performance Per Order PWS

The Contractor shall perform in accordance with the Performance Based Statement (PWS) PWS-2021-045 and as further specified by individual Task/Delivery Orders issued under this IDIQ Contract on a Firm Fixed-Price basis.

NET AMT

Each

Material/Other Direct Costs

The contractor shall provide material and other direct cost items necessary to successfully perform to the requirement defined in the individual delivery or task orders issued under this contract.

NET AMT

Lot

Travel (Cost CLIN)

The Contractor shall travel when necessary to support successful completion of the requirements defined in individual Task/Delivery Orders issued under this Contract in accordance with CBID III PWS paragraph 5.

NET AMT

Each

Technical Data & Reports

The contractor shall complete data requirements as defined in the CBID III PWS and listed at Section J of each individual delivery or task order issued under this contract. A representative summary of CDRLs are provided in Appendix B to the CBID III PWS.

NET AMT

Each

Service Contract Reporting (SCR)

Service contractor reporting of information is required in the System for Award Management (SAM) in accordance with CBID III Performance Work Statement (PWS) paragraph 4.8 and DFARS PGI 204.1703.

NET AMT

Each

Contractor Acquired Property (CAP)

(If Applicable) Deliver to the Government all Contractor Acquired Property not otherwise specified for delivery on an existing contract line item. See DFARS

PGI 245.402-71.

NET AMT

CONTRACT MINIMUM/MAXIMUM QUANTITY AND CONTRACT VALUE

The minimum quantity and contract value for all orders issued against this contract shall not be less than the minimum quantity and contract value stated in the following table. The maximum quantity and contract value for all orders issued against this contract shall not exceed the maximum quantity and contract value stated in the following table.

MINIMUM

QUANTITY

MINIMUM

AMOUNT

MAXIMUM

QUANTITY

MAXIMUM

AMOUNT

$3,000.00

$49,300,000.00

CLIN DELIVERY/TASK ORDER MINIMUM/MAXIMUM QUANTITY AND CLIN ORDER VALUE

The minimum quantity and order value for the given Delivery/Task Order issued for this CLIN shall not be less than the minimum quantity and order value stated in the following table. The maximum quantity and order value for the given Delivery/Task Order issued for this CLIN shall not exceed the maximum quantity and order value stated in the following table.

CLIN

MINIMUM

QUANTITY

MINIMUM

AMOUNT

MAXIMUM

QUANTITY

MAXIMUM

AMOUNT

Section C - Descriptions and Specifications

C.1 PERFORMANCE WORK STATEMENT

The Performance Work Statement for the Computer Based Instructional Development (CBID) III effort is included as RFP Section J, Attachment 1. Individual Task/Delivery Orders will define the detailed requirements in each respective Order PWS, as derived from the basic IDIQ Contract PWS.

C.2 AVAILABILITY OF DATA ITEM DESCRIPTIONS (DIDs)

All Data Item Descriptions (DIDs) are available online via the Acquisition Streamlining and Standardization Information System located at http://quicksearch.dla.mil.

C.3 GOVERNMENT FURNISHED INFORMATION

(a) Software and intellectual property are forms of Government Furnished Information (GFI) that are not considered Government Property or Government Furnished Equipment as described in FAR 52.245-1. To the extent GFI has been described as Government Furnished Equipment or Property in other communications related to this procurement, any such Government Furnished Equipment references were in error and do not govern the parties to this contract.

(b) To the extent that GFI, including software and intellectual property, is provided, the Government furnishes that GFI in an “as-is” condition. The Government makes no warranty with respect to the serviceability and/or suitability of the GFI for contract performance. Any repairs, replacement, modifications, refurbishment, software patches shall be at the Contractor’s expense.

C.4 INSPECTION AND ACCEPTANCE OF TECHNICAL DATA AND INFORMATION

Inspection and acceptance of technical data and information will be performed by an authorized requiring activity representative. Inspection of technical data and information will be performed by ensuring successful completion of the requirements set forth in the DD Form 1423, Contract Data Requirements List (CDRL) and incorporation/resolution of Government review comments on the data items. Acceptance will be performed by the requiring activity representative and evidenced via execution of an electronic Receiving Report submitted by the contractor in the Wide Area Work Flow (WAWF) application within the Procurement Integrated Enterprise Environment (PIEE) e-Business suite.

C.5 DELIVERY OF TECHNICAL DATA AND INFORMATION

Technical Data and Information shall be delivered in accordance with the requirements of the Contract Data Requirements List, DD Form 1423, attached to the Performance Based Statement, and the following:

(a) The Contractor shall concurrently deliver technical data and information per DD Form 1423, Blocks 12 and 13 (date of first/subsequent submission) to all activities listed in Block 14 of the DD Form 1423 (distribution and addresses) for each item. Complete addresses for the abbreviations in Block 14 are shown in paragraph (g) below. Additionally, the technical data shall be delivered to the following cognizant codes, which are listed in Block 6 of the DD Form 1423.

(1) PCO, Code: W900KK

(2) ACO, Code: To be provided on each individual Task/Delivery Order

(3) PEO STRI PdM Code: W906ZL

(b) Partial delivery of data is not acceptable unless specifically authorized on the DD Form 1423, or unless approved in writing by the PCO.

(c) The Government review period provided on the DD Form 1423 for each item commences upon receipt of all required data by the technical activity designated in Block 6.

(d) A copy of all other correspondence addressed to the Contracting Officer relating to data item requirements (i.e., status of delivery) shall also be provided to the codes reflected above and the technical activity responsible for the data item per Block 6, if not one of the activities listed above.

(e) The PCO reserves the right to issue unilateral modifications to change the destination codes and addresses for all technical data and information at no additional cost to the Government.

(f) Unless otherwise specified in writing, rejected data items shall be resubmitted within thirty (30) days after receipt of notice of rejection.

(g) DD Form 1423, Block 14 Mailing Addresses: To be provided on each individual Task/Delivery Order

C.6 AUTHORIZED CHANGES ONLY BY THE CONTRACTING OFFICER

C.7 TASK ORDERS PROCEDURES

(a) The following activity(ies) or individual(s) is/are designated as Ordering Officer(s):

Mr. Robert D. Baird, Contracting Officer U.S. Army Contracting Command-Orlando Ofc: (407) 208-3485, DSN 970-3485 robert.d.baird10.civ@army.mil

Mr. Michael A. Son, Contracting Officer U.S. Army Contracting Command-Orlando Ofc: (407) 208-5658, DSN: 970-5658 michael.a.son2.civ@army.mil

(d) Negotiated Agreement. For task orders with an estimated value of greater than $1.00, the information contained in each task order with respect to labor categories, man-hours and delivery date shall be the result of a negotiated agreement reached by the parties in advance of issuance of the order.

The cost factors utilized in determining the estimated cost/price under any order shall be the rates applicable at time the order is issued.

Section E - Inspection and Acceptance

E.1. INSPECTION AND ACCEPTANCE

E.1.1 Inspection and acceptance of the services or supplies to be furnished hereunder shall be performed by the Procuring Contracting Officer (PCO) or his/her duly authorized representative unless otherwise stated within individual delivery/task orders.

E.1.2 Acceptance of all Contract Line Items/Subcontract Line Items (CLINs/SLINs) shall be made by signature of the accepting authority on an unconditional Wide Area Work Flow Receiving Report. Acceptance will only occur when the accepting authority is sure that inspections performed demonstrate compliance with Task/Delivery Order requirements.

E.2. INSPECTION AND ACCEPTANCE OF TECHNICAL DATA AND INFORMATION

Inspection and acceptance of technical data and information will be performed by an authorized requiring activity representative. Inspection of technical data and information will be performed by ensuring successful completion of the requirements set forth in the DD Form 1423, Contract Data Requirements List (CDRL), and incorporation/resolution of Government review comments on the data items. Acceptance will be performed by the requiring activity representative and evidenced via execution of an electronic Receiving Report submitted by the contractor in the Wide Area Work Flow (WAWF) application within the Procurement Integrated Enterprise Environment (PIEE) e-Business suite.

INSPECTION AND ACCEPTANCE TERMS

Supplies/services will be inspected/accepted at:

CLAUSES INCORPORATED BY REFERENCE

Section F - Deliveries or Performance

F.1 PERIOD OF PERFORMANCE

This Indefinite Delivery/Indefinite Quantity contract includes a total potential ordering period of up to 5 years, with final performance/deliveries required no later than one year beyond the end of the ordering period. The period of performance/delivery dates will be established for each Task/Delivery Order that are realistic and meet the requirements of the specific acquisition. The ordering period dates will be specified in the Ordering Clause FAR 52.216-18 at time of contract award. The period of performance/ordering period below may be adjusted depending on actual date of contract award; contract award is expected for second quarter, Government Fiscal Year 2023. The period of performance/ordering period for this contract shall be as follows:

CONTRACT YEAR 1

CLINs 0001 (including CLINs 0001-0006): The ordering period shall be from 23 June 2023 through 22 June 2024. Individual Task/Delivery Orders will specify their respective periods of performance, which may not exceed 5 years.

CONRACT YEAR 2

CLINs 1000 (including CLINs 1001-1005): These CLINs are OPTION CLINs. If exercised by the Government, the ordering period shall be from 23 June 2024 through 22 June 2025. Individual Task/Delivery Orders issued during this ordering period will specify their respective periods of performance, which may not exceed 5 years.

CONTRACT YEAR 3

CLINs 2000 (including CLINs 2001-2005): These CLINs are OPTION CLINs. If exercised by the Government, the ordering period shall be from 23 June 2025 through 22 June 2026. Individual Task/Delivery Orders issued during this ordering period will specify their respective periods of performance, which may extend not to exceed 12 months beyond the ordering period for these CLINs set forth in this section.

CONTRACT YEAR 4

CLINs 3000 (including CLINs 3001-3005): These CLINs are OPTION CLINs. If exercised by the Government, the ordering period shall be from 23 June 2026 through 22 June 2027. Individual Task/Delivery Orders issued during this ordering period will specify their respective periods of performance, which may extend not to exceed 12 months beyond the ordering period for these CLINs set forth in this section.

CONTRACT YEAR 5

CLINs 4000 (including CLINs 4001-4005): These CLINs are OPTION CLINs. If exercised by the Government, the ordering period shall be from 23 June 2027 through 22 June 2028. Individual Task/Delivery Orders issued during this ordering period will specify their respective periods of performance, which may extend not to exceed 12 months beyond the ordering period for these CLINs set forth in this section.

F.2 DELIVERY

Unless specified otherwise by individual Task/Delivery Orders, all items shall be delivered by the Contractor, F.O.B. Destination, all transportation charges prepaid, to the destinations specified and within the time periods specified in individual Task/Delivery Orders. The term "delivery" means successful completion of all requirements set forth in the contract, to include manufacturing/installation, inspection and acceptance, as specified. Delivery is considered complete upon execution of an unconditional DD Form 250, Material Inspection and Receiving Report for items requiring submission of a DD Form 250 through the Wide Area Work Flow (WAWF) system, and/or upon receipt of a second endorsement acceptance by the Procuring Contracting Officer (PCO), or PCO designated representative [e.g., Contract Specialist (CS), Contracting Officer Representative (COR), Alternate Contracting Officer Representative (ACOR)].

F.3 TIME OF DELIVERY

The resultant CBID III IDIQ Contract will have a five-year ordering period, with final performance/deliveries required no later than one year beyond the end of the ordering period. The period of performance/delivery dates will be established for each Task/Delivery Order that are realistic and meet the requirements of the specific acquisition.

DELIVERY INFORMATION

Section G - Contract Administration Data

CLAUSES INCORPORATED BY FULL TEXT

252.232-7006 WIDE AREA WORKFLOW PAYMENT INSTRUCTIONS (DEC 2018)

(a) Definitions. As used in this clause—

“Department of Defense Activity Address Code (DoDAAC)” is a six position code that uniquely identifies a unit, activity, or organization.

“Document type” means the type of payment request or receiving report available for creation in Wide Area WorkFlow (WAWF).

“Local processing office (LPO)” is the office responsible for payment certification when payment certification is done external to the entitlement system.

“Payment request” and “receiving report” are defined in the clause at 252.232-7003, Electronic Submission of Payment Requests and Receiving Reports.

(b) Electronic invoicing. The WAWF system provides the method to electronically process vendor payment requests and receiving reports, as authorized by Defense Federal Acquisition Regulation Supplement (DFARS) 252.232-7003, Electronic Submission of Payment Requests and Receiving Reports.

(c) WAWF access. To access WAWF, the Contractor shall—

(1) Have a designated electronic business point of contact in the System for Award Management at https://www.sam.gov; and

(2) Be registered to use WAWF at https://wawf.eb.mil/ following the step-by-step procedures for self-registration available at this web site.

(d) WAWF training. The Contractor should follow the training instructions of the WAWF Web-Based Training Course and use the Practice Training Site before submitting payment requests through WAWF. Both can be accessed by selecting the “Web Based Training” link on the WAWF home page at https://wawf.eb.mil/.

(e) WAWF methods of document submission. Document submissions may be via web entry, Electronic Data Interchange, or File Transfer Protocol.

(f) WAWF payment instructions. The Contractor shall use the following information when submitting payment requests and receiving reports in WAWF for this contract or task or delivery order:

(1) Document type. The Contractor shall submit payment requests using the following document type(s):

(i) For cost-type line items, including labor-hour or time-and-materials, submit a cost voucher.

(ii) For fixed price line items—

(A) That require shipment of a deliverable, submit the invoice and receiving report specified by the Contracting Officer.

To be determined at Delivery Order level.

(B) For services that do not require shipment of a deliverable, submit either the Invoice 2in1, which meets the requirements for the invoice and receiving report, or the applicable invoice and receiving report, as specified by the Contracting Officer.

To be determined at Delivery Order level.

(iii) For customary progress payments based on costs incurred, submit a progress payment request.

(iv) For performance based payments, submit a performance based payment request.

(v) For commercial item financing, submit a commercial item financing request.

(2) Fast Pay requests are only permitted when Federal Acquisition Regulation (FAR) 52.213-1 is included in the contract.

[Note: The Contractor may use a WAWF “combo” document type to create some combinations of invoice and receiving report in one step.]

(3) Document routing. The Contractor shall use the information in the Routing Data Table below only to fill in applicable fields in WAWF when creating payment requests and receiving reports in the system.

Routing Data Table*

(4) Payment request. The Contractor shall ensure a payment request includes documentation appropriate to the type of payment request in accordance with the payment clause, contract financing clause, or Federal Acquisition Regulation 52.216-7, Allowable Cost and Payment, as applicable.

(5) Receiving report. The Contractor shall ensure a receiving report meets the requirements of DFARS Appendix F.

(g) WAWF point of contact.

(1) The Contractor may obtain clarification regarding invoicing in WAWF from the following contracting activity’s WAWF point of contact.

Group Administrator (GAM): Amber.K.Vanhoozer.civ@army.mil / 321-235-5719

(2) Contact the WAWF HelpDesk at 866-618-5988, if assistance is needed.

(End of clause)

G.1. PAYMENT INSTRUCTIONS (See DFARS 204.7108, DFARS PGI 204.7108 DFARS/PGI view)

The table at https://www.acq.osd.mil/dpap/dars/pgi/pgi_htm/current/PGI204_71.htm#payment_instructions may be applicable to Task/Delivery Orders with incrementally funded line items (Travel CLINs).

Section I - Contract Clauses

CLAUSES INCORPORATED BY FULL TEXT

52.211-14 NOTICE OF PRIORITY RATING FOR NATIONAL DEFENSE, EMERGENCY PREPAREDNESS, AND ENERGY PROGRAM USE (APR 2008)

Any contract awarded as a result of this solicitation will be a DO-C9 rated order certified for national defense, emergency preparedness, and energy program use under the Defense Priorities and Allocations System (DPAS) (15 CFR 700), and the Contractor will be required to follow all of the requirements of this regulation.

(End of provision)

52.216-7 ALLOWABLE COST AND PAYMENT (AUG 2018)

(a) Invoicing.

(1) The Government will make payments to the Contractor when requested as work progresses, but (except for small business concerns) not more often than once every 2 weeks, in amounts determined to be allowable by the Contracting Officer in accordance with Federal Acquisition Regulation (FAR) subpart 31.2 in effect on the date of this contract and the terms of this contract. The Contractor may submit to an authorized representative of the Contracting Officer, in such form and reasonable detail as the representative may require, an invoice or voucher supported by a statement of the claimed allowable cost for performing this contract.

(2) Contract financing payments are not subject to the interest penalty provisions of the Prompt Payment Act. Interim payments made prior to the final payment under the contract are contract financing payments, except interim payments if this contract contains Alternate I to the clause at 52.232-25.

(3) The designated payment office will make interim payments for contract financing on the 30th day after the designated billing office receives a proper payment request.

In the event that the Government requires an audit or other review of a specific payment request to ensure compliance with the terms and conditions of the contract, the designated payment office is not compelled to make payment by the specified due date.

(b) Reimbursing costs. (1) For the purpose of reimbursing allowable costs (except as provided in subparagraph (b)(2) of the clause, with respect to pension, deferred profit sharing, and employee stock ownership plan contributions), the term "costs" includes only--

(i) Those recorded costs that, at the time of the request for reimbursement, the Contractor has paid by cash, check, or other form of actual payment for items or services purchased directly for the contract;

(ii) When the Contractor is not delinquent in paying costs of contract performance in the ordinary course of business, costs incurred, but not necessarily paid, for--

(A) Supplies and services purchased directly for the 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 Government;

(B) Materials issued from the Contractor's inventory and placed in the production process for use on the contract;

(C) Direct labor;

(D) Direct travel;

(E) Other direct in-house costs; and

(F) Properly allocable and allowable indirect costs, as shown in the records maintained by the Contractor for purposes of obtaining reimbursement under Government contracts; and

(iii) The amount of financing payments that have been paid by cash, check, or other forms of payment to subcontractors.

(2) Accrued costs of Contractor contributions under employee pension plans shall be excluded until actually paid unless--

(i) The Contractor's practice is to make contributions to the retirement fund quarterly or more frequently; and

(ii) The…