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(a) Interim vouchers shall be submit payment of fee shall be determined ted directly to the HUD Official and pursuant to the terms of the contract.
he location stipulated in the con- Authority for payment must be estabtract for approval and payment proc. lished before any reimbursements essing. The frequency for submission under the contract are approved. In no will be specified in the contract. In the event will a reimbursement claim be absence of a contract provision to the processed by the Contracting Officer contrary, the contractor may submit a for payment which would result in cuvoucher once each month. The Con- mulative payment in excess of the tracting Officer will request the con maximum amount payable as limited tractor to consolidate vouchers under by the contract. one contract as much as possible to (2) The contractor shall submit rereduce the number of vouchers. imbursement vouchers under cost-type Vouchers shall not contain claims per contracts directly to the HUD official taining to more than one contract. and at the location stipulated in the
(b) The Contracting Officer shall re- contract for approval prior to payquire the contractor to provide, as a ment. All vouchers, with the exception part of each voucher submission, an of the final voucher, shall be marked analysis of the total vouchered “Approved for provisional payment in charges. Where data is readily availa- the amount of $-- subject to audit ble from the contractor's records, a prior to final payment," signed by the limited analysis may be placed on the appropriate HUD official, and procface of Public Voucher for Purchases essed for payment. Questionable costs, and Services Other Than Personal determined through periodic audit, (Standard Form 1034), provided the lack of adequate documentation, or reliability of the contractor has other otherwise, shall be suspended or disapwise been established. As a minimum, proved prior to approval of the vouchthe analysis shall include cumulative er. In those situations where (i) there and current costs broken down by cost is reason to question the reliability or elements. When a more detailed analy- accuracy of the contractor's claim, (ii) sis is required, the Continuation Sheet there is an indication of cost overrun, (Standard Form 1035) or an attach or (iii) the submission is the contracment may be used.
tor's initial claim, the recommenda(c) Contractors shall be required to tions of the cognizant auditor should submit separate invoices for fee and, be requested prior to approval. where the amount of fee claimed de- (3) If the contractor has not deductpends on a computation based on ed from his claims amounts required physical progress or rate of delivery of to be withheld pursuant to the provithe completed item, the Contracting sions of the contract. The Contracting Officer shall require the contractor to Officer shall make the deduction. show the basis for computing the fee Such deductions shall be treated as installment on the voucher (face or re- suspensions. Amounts deducted may verse of Standard Form 1034) or on an be resubmitted by the contractor at attachment.
such time as the contractor has evi
denced compliance with the require8 24-50.103 Processing vouchers.
ments necessary to permit payment Processing vouchers shall be in ac and may, in any event, be claimed on cordance with the following:
the final voucher. (a) Prior to approving vouchers for (4) Vouchers which have not been payment, the Contracting Officer properly prepared by the contractor may, as appropriate, verify the status shall be returned for revision. No eraof the contract by consulting with sures are permitted on a voucher or a other Government personnel (i.e., continuation sheet. A voucher and/or technical, audit, and financial person continuation sheet or its equivalent, nel) concerned with administration of which requires alteration, may be the contract.
changed by striking out the incorrect (b) Provisional vouchers. (1) The eli- item and inserting the correct item. gibility for reimbursement of claims An alteration made by the contractor submitted by a contractor for costs or must be initialed by the contractor. An
alteration made by the Contracting
Subpart 24-50.2—Processing Officer must be initialed by the Con
Payment Under Fixed-Price Contracts tracting Officer and may be made only in accordance with 36 Comp. Gen. 769
8 24-50.200 Scope of subpart. (1957) which provides that when errors in computations or extensions
This subpart prescribes policy perare detected, where the payee has taining to the processing of invoices clearly made claim for the full quanti.
under fixed-price type contracts. ty of materials or services and at the
$ 24-50.201 Definitions. proper unit price, the claim may abe altered upward or downward prior to As used in this subpart, the followapproval provided the adjustment
ing terms have the meaning as stated: does not exceed $10.
(a) "Fixed-price type contracts” in
clude firm fixed-price, fixed-price with Vouchers may be adjusted by the Con- escalation, fixed-price incentive, intracting Officer, provided that costs definite delivery and small purchases. have not been suspended or disap (b) "Invoice" is used to request payproved and the errors are not too nu- ment under an established payment merous to correct. The incorrect com- schedule specifically identified in the putation or extension may be altered contract. by drawing a line through the incorrect amount and inserting the correct. § 24-50.202 Submission of invoices. ed amount on the original and all Invoices shall be submitted to the copies of the voucher. Each alteration HUD Official and at the location stipmust be initialed. The amount of the ulated in the contract for approval error will be deducted from or added and payment processing. to the total of the voucher. If Standard Form 1034 is used, the amount of $ 24-50.203 Processing invoices. the error will also be deducted from or The processing of invoices shall be added to the total by use of the “Dif accomplished in accordance with the ference" block on Standard Form following: 1034. Contractors will be notified, in (a) Prior to approving invoices for writing of mathematical errors which payment, the appropriate HUD offioverstate the total amount claimed in cial may, as appropriate, verify the excess of $10. If an underclaim is in status of the contract by consulting excess of $10, the actual amount
with cognizant Government personnel claimed, if otherwise proper, may be (i.e., technical, audit and financial perprocessed for payment. Contractors
sonnel) concerned with administration should be notified of any errors de
of the contract. tected or of any adjustments made ac
(b) Withholdings pursuant to the cording to this policy.
contract will be handled in accordance
with HUDPR 24-50.103(b)(3). (c) Final Voucher. Upon receipt of a final voucher for contracts in excess of
(c) Invoices which have not been $50,000, the Contracting Officer shall
properly prepared by the contractor
shall be returned for revision. No erafurnish a copy to the cognizant audi
sures are permitted on an invoice or a tor for final audit prior to payment.
continuation sheet. However, alterThe final voucher shall be supported
ations may be made by a contractor by by contractor's (or assignee's) release
striking out the incorrect item and and assignment forms, and the final
writing in the correct item. Any alterschedule of cumulative cost under the
ation made by the contractor must be contract. Final vouchers shall not be
initialed by the contractor. approved until the results of the final
(d) Final invoice. The final invoice audit have been received by the Con
shall be supported by contractor's retracting Officer and all deliverable lease and assignment forms, as approproducts have been received and ac priate. Final invoice shall not be apcepted by the Government.
proved until final acceptance of the contractor's performance is received
by the Contracting Officer or his duly authorized representative.
Subpart 24-50.3—Closing Completed
Contracts and Research Grants
date of closing completed files. In connection with contracts where 41 CFR Part 1-3 requires a finding and determinations, these files shall be maintained in accordance with 41 CFR 13.308.
The procuring activity shall maintain a listing of all contracts and grants closed and forwarded to the retention center.
Subpart 24-50.4-Administration of Government Property While Under Government Contract
$ 24-50.400 Scope of subpart.
This subpart sets forth policy and procedures governing administration of Go of Government-furnished property and property acquired by contractors at Government expense for performance of HUD contracts.
§ 24-50.401 General.
Responsibility within HUD for administering Government property rests with the Contracting Officer.
$ 24-50.300 Scope of subpart.
This subpart establishes policy governing the closing of completed contracts and is applicable to all contracts and research grants. 8 24-50.301 General.
The procedures for closing completed contracts are a primary tool of contract management and contract administration. Each procuring activity shall establish adequate procedure to insure proper closing of files and conduct contract/grant closing reviews in order that the file is completely documented. The comprehensive closing review serves the following purposes:
(a) Facilitates orderly segregation and disposition of records, and ensures efficient use of filing equipment and space;
(b) Identifies all uncompleted actions;
(c) Ensures that all contractual obligations have been fulfilled, that the interests of the Government have been protected; and, that sound business practices have been followed. 8 24-50.302 Definition-completed
tract or grant. A completed contract or grant is one which is both physically and administratively complete and in which all aspects of performance by the contractor have been either accomplished or formally waived. A contract is physically complete only after articles and services called for under the contract have been delivered to and formally accepted by the Government. A contract is administratively complete when all administrative actions are accomplished and all payments made. $ 24-50.303 Retention of contract and
grant files. Each procuring activity shall ensure that contract and grant files are properly forwarded to the appropriate Fed. eral Records Center for retention of a minimum of six (6) years from the
§ 24-50.402 Property administration.
The duties of the responsible officer are identified below:
(a) The Contracting Officer is the HUD “Accountable Officer” for Government property and maintains the official records of such property.
(b) The Contracting Officer performs all transactions and handles all matters concerning Government property, including use charges as prescribed in HUDPR 24-13.4, determinations of liability for lost, damage, or destroyed Government property, and resolving disputes with contractors with regard to property.
(c) The Contracting Officer will review and determine the adequacy of contractor's property policy and procedures concerning: (1) Receiving and inspection; (2) accounting, control, and reports; (3) utilization, including reporting excess property; (4) maintenance; i.e., protection, preservation, service, repair, warranties and guaranties, etc.; (5) scrap and salvage of material, parts, etc.; and (6) disposal, including preparation for shipment and shipping procedures.
Subpart 24-50.5—Guaranty and
§ 24-50.500 Scope of subpart.
This subpart sets forth policy and procedures for processing guaranty and subordination agreements.
agreement, in addition to the current financial statement
(c) If a contract results from the proposal, the Contracting Officer shall acknowledge receipt of the agreement provided for under the form illustrated in HUDPR 24-50.504 and 24-50.505. If no contract award results from the proposal, all copies of the agreement shall be destroyed.
$ 24-50.501 Policy.
Guaranty and subordination agreements may be used when it is determined as the result of a pre-award survey that the financial condition of a proposed contractor warrants such protection for the Government or when, during the course of the work, the Government determines that such protection is necessary to its interest.
8 24-50.502 Definitions.
As used in this subpart, the following terms have the meaning as stated:
(a) Guaranty agreement. An agreement wherein the guarantor guaran. tees the performance of a bidder (contractor).
(b) Subordination agreement. An agreement wherein a creditor agrees to subordinate debts due it from the bidder (contractor) to the rights of Government.
$ 24-50.503 Processing.
The requirements for processing a guaranty or subordination agreement are stated below:
(a) When, in the judgment of the Contracting Officer, the financial condition of the prospective contractor warrants, he shall obtain a guaranty or subordination agreement, as appropriate. Formats for guaranty and subordination agreements are provided in HUDPR 24-50.504 and 24-50.505, respectively. The Contracting Officer shall obtain the review of the Office of General Counsel before executing an agreement in any other format.
(b) All corporate guarantors will be required to obtain a statement from the corporate counsel indicating whether the corporate guarantor has the authority under the laws of the State in which the company is incorporated and pursuant to its charter, to enter into such an agreement. This statement will be attached to the
§ 24-50.504 Guaranty agreement.
Whenever a Guaranty Agreement is required as set forth in HUDPR 2450.5, it shall be developed substantially as shown below: GUARANTY AGREEMENT FOR CORPORATE
GUARANTOR (Applicable to one Government Contract)
--- (Insert Offeror's Name), a corporation organized under the laws of the State of ---, having its principal place of business at --- in the City and State of ---, hereinafter called the Offeror is under consideration by the United States of America (------) (Insert Department) hereinafter called the Government, for the award of a certain contract, --- (IFB, RFP or RFQ) hereinafter referred to as such contract. Such contract will call for the furnishing of approximately for the contract price of approximately $-4. The Government is willing to award
----- (Insert Quantity and General Description of Supplies or Services to be Procured) for the contract price of approximately
--- such contract to --
-- (Insert Offeror's Name) only upon condition that
- (Insert Guarantor's Name, Description and Address) for itself, its successors and assigns, hereinafter referred to as the Guarantor, will, in the event such contract is awarded by the Government to the Offeror, guarantee absolutely to the Government the full, complete and faithful performance of the Offeror of such contract according to the terms and conditions thereof and at the time and in the manner provided therein.
In consideration of the award of such contract to the the Offeror the undersigned Guarantor agrees as follows:
1. Guaranty. The Guarantor absolutely guarantees the full, complete and faithful performance by the Offeror of such contract, as such contract may be from time to time amended as authorized by its terms, according to the terms and conditions of such contract as so amended, and at the time and in the manner provided therein. The Guarantor agrees to provide the Offeror all necessary and required resources including fi
nancing, which are necessary to assure the full, complete and satisfactory performance
(Guarantor) of such contract.
2. Extension of Time of Performance. Any extention of the time of performance of such contract as so amended shall not re
(Title) lease the undesigned Guarantor from liability hereon.
(Business Address) 3. Assignment. This instrument shall bind
I, ---- -, certify that I am the the undersigned Guarantor, its successor
- Secretary of the Corporation and assigns. If any person, firm, corporation
named as Guarantor herein; that or entity other than
--- who signed this Agreement on (Insert Offeror's Name) becomes obligated
behalf of the Guarantor, was then to perform the contract or any part thereof,
-- of said Corporation; that said whether by operation or law or otherwise,
Agreement was duly signed for and in any and all rights of the Government
behalf of said corporation by authority of against the Guarantor shall remain in full
its governing body, and is within the scope force.
of its corporate powers. 4. Default. In the event of termination for
------ Corporate Seal default under the terms of such contract, or
(Secretary) in the event of failure, insolvency, default, Receipt of a copy of the above Guaranty bankruptcy, arrangement, appointment of Agreement is acknowledged. receiver for -
--- (Insert Of. Contracting Officer Address: feror's Name) or other liquidation of the Of
THE UNITED STATES feror, the Guaranty herein shall become ab
OF AMERICA solute.
------ By ---5. Waiver of Notice. The Guarantor waives notice of default on the part of the Offeror and agrees that its Guaranty shall become
(Contracting Officer) absolute without necessity for the giving of such notice.
§ 24-50.505 Subordination agreement. 6. Continuation of Guaranty. The Guar- Whenever a Subordination Agreeanty herein shall continue until full, com- ment is required as set forth in plete and faithful performance of such con HUDPR 24-50.5, it shall be developed tract as it may be from time to time amend
substantially as shown below: ed as authorized by its terms. 7. Default Liability. In addition to all
SUBORDINATION AGREEMENT other guarantees contained in this agreement, in the event that the Government
(Applicable to One Government Contract) terminates such contract for default and
- (Insert Debtor's Name), awards the uncompleted portion of such a corporation organized under the laws of contract to another source at a fair and rea ---, having its principal place of business sonable price, the Guarantor shall be liable at --- in the City and State of ---, a for any excess costs incurred by the Govern partnership *doing business as --- at ment as a result of such reprocurement and --- County of --- City of --- State for the repayment of any unrecoupled Par- of --- an individual, *having its principal tial Payments, Progress Payments or Ad place of business at --- in the City and vanced Payments paid to the Offeror by the State of ---, hereinafter called the Government. In addition, the Guarantor Debtor, is under consideration by the shall be liable for all costs and expenses United States of America (------) paid or incurred by the Government in en (Insert Department) hereinafter called the forcing this Guaranty. The Contracting Of. Government, for the award of a certain conficer representing the Government in con tract. Such contract will call for the fur. nection with such contract shall determine nishing of approximately the total costs and expenses, if any, in (Insert Quantity and General Description of curred by the Government.
Items or Services to be Procured) for the 8. Enforcement. This Guaranty Agree contract price of approximately ---- dolment shall inure to the benefit of and may lars ($--). The Government is willing to be enforced by the Government.
award such contract to the Debtor only 9. Construction. Nothing in this Guaranty
upon condition that ---Agreement shall be construed to obligate
(Insert Creditor's Name, Description, Adthe Government to award any contract to
dress, etc.), hereinafter referred to as the — (Insert Offeror's Name)
Creditor, will agree to subordinate any and Executed the --- day of --- 197 – Two Witnesses:
* Strike out inapplicable language.