(a) Interim vouchers shall be submitted directly to the HUD Official and at the location stipulated in the contract for approval and payment processing. The frequency for submission will be specified in the contract. In the absence of a contract provision to the contrary, the contractor may submit a voucher once each month. The Contracting Officer will request the contractor to consolidate vouchers under one contract as much as possible to reduce the number of vouchers. Vouchers shall not contain claims pertaining to more than one contract.

(b) The Contracting Officer shall require the contractor to provide, as a part of each voucher submission, an analysis of the total vouchered charges. Where data is readily available from the contractor's records, a limited analysis may be placed on the face of Public Voucher for Purchases and Services Other Than Personal (Standard Form 1034), provided the reliability of the contractor has otherwise been established. As a minimum, the analysis shall include cumulative and current costs broken down by cost elements. When a more detailed analysis is required, the Continuation Sheet (Standard Form 1035) or an attachment may be used.

(c) Contractors shall be required to submit separate invoices for fee and, where the amount of fee claimed depends on a computation based on physical progress or rate of delivery of the completed item, the Contracting Officer shall require the contractor to show the basis for computing the fee installment on the voucher (face or reverse of Standard Form 1034) or on an attachment.

§ 24-50.103 Processing vouchers.

Processing vouchers shall be in accordance with the following:

(a) Prior to approving vouchers for payment, the Contracting Officer may, as appropriate, verify the status of the contract by consulting with other Government personnel (i.e., technical, audit, and financial personnel) concerned with administration of the contract.

(b) Provisional vouchers. (1) The eligibility for reimbursement of claims submitted by a contractor for costs or

payment of fee shall be determined pursuant to the terms of the contract. Authority for payment must be established before any reimbursements under the contract are approved. In no event will a reimbursement claim be processed by the Contracting Officer for payment which would result in cumulative payment in excess of the maximum amount payable as limited by the contract.

(2) The contractor shall submit reimbursement vouchers under cost-type contracts directly to the HUD official and at the location stipulated in the contract for approval prior to payment. All vouchers, with the exception of the final voucher, shall be marked "Approved for provisional payment in the amount of $- subject to audit prior to final payment," signed by the appropriate HUD official, and processed for payment. Questionable costs, determined through periodic audit, lack of adequate documentation, or otherwise, shall be suspended or disapproved prior to approval of the voucher. In those situations where (i) there is reason to question the reliability or accuracy of the contractor's claim, (ii) there is an indication of cost overrun, or (iii) the submission is the contractor's initial claim, the recommendations of the cognizant auditor should be requested prior to approval.

(3) If the contractor has not deducted from his claims amounts required to be withheld pursuant to the provisions of the contract. The Contracting Officer shall make the deduction. Such deductions shall be treated as suspensions. Amounts deducted may be resubmitted by the contractor at such time as the contractor has evidenced compliance with the requirements necessary to permit payment and may, in any event, be claimed on the final voucher.

(4) Vouchers which have not been properly prepared by the contractor shall be returned for revision. No erasures are permitted on a voucher or a continuation sheet. A voucher and/or continuation sheet or its equivalent, which requires alteration, may be changed by striking out the incorrect item and inserting the correct item. An alteration made by the contractor must be initialed by the contractor. An

alteration made by the Contracting Officer must be initialed by the Contracting Officer and may be made only in accordance with 36 Comp. Gen. 769 (1957) which provides that when errors in computations or extensions are detected, where the payee has clearly made claim for the full quantity of materials or services and at the proper unit price, the claim may abe altered upward or downward prior to approval provided the adjustment does not exceed $10.

Vouchers may be adjusted by the Contracting Officer, provided that costs have not been suspended or disapproved and the errors are not too numerous to correct. The incorrect computation or extension may be altered by drawing a line through the incorrect amount and inserting the corrected amount on the original and all copies of the voucher. Each alteration must be initialed. The amount of the error will be deducted from or added to the total of the voucher. If Standard Form 1034 is used, the amount of the error will also be deducted from or added to the total by use of the "Difference" block on Standard Form 1034. Contractors will be notified, in writing of mathematical errors which overstate the total amount claimed in excess of $10. If an underclaim is in excess of $10, the actual amount claimed, if otherwise proper, may be processed for payment. Contractors should be notified of any errors detected or of any adjustments made according to this policy.

(c) Final Voucher. Upon receipt of a final voucher for contracts in excess of $50,000, the Contracting Officer shall furnish a copy to the cognizant auditor for final audit prior to payment. The final voucher shall be supported by contractor's (or assignee's) release and assignment forms, and the final schedule of cumulative cost under the contract. Final vouchers shall not be approved until the results of the final audit have been received by the Contracting Officer and all deliverable products have been received and accepted by the Government.

Subpart 24-50.2—Processing Payment Under Fixed-Price Contracts

§ 24-50.200 Scope of subpart.

This subpart prescribes policy pertaining to the processing of invoices under fixed-price type contracts.

§ 24-50.201 Definitions.

As used in this subpart, the following terms have the meaning as stated: (a) "Fixed-price type contracts" include firm fixed-price, fixed-price with escalation, fixed-price incentive, indefinite delivery and small purchases.

(b) "Invoice" is used to request payment under an established payment schedule specifically identified in the contract.

§ 24-50.202 Submission of invoices.

Invoices shall be submitted to the HUD Official and at the location stipulated in the contract for approval and payment processing.

§ 24-50.203 Processing invoices.

The processing of invoices shall be accomplished in accordance with the following:

(a) Prior to approving invoices for payment, the appropriate HUD official may, as appropriate, verify the status of the contract by consulting with cognizant Government personnel (i.e., technical, audit and financial personnel) concerned with administration of the contract.

(b) Withholdings pursuant to the contract will be handled in accordance with HUDPR 24-50.103(b)(3).

(c) Invoices which have not been properly prepared by the contractor shall be returned for revision. No erasures are permitted on an invoice or a continuation sheet. However, alterations may be made by a contractor by striking out the incorrect item and writing in the correct item. Any alteration made by the contractor must be initialed by the contractor.

(d) Final invoice. The final invoice shall be supported by contractor's release and assignment forms, as appropriate. Final invoice shall not be approved 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

§ 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.

§ 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.

§ 24-50.302 Definition-completed

tract or grant.

con

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 Federal Records Center for retention of a minimum of six (6) years from the

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 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.

§ 24-50.402 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 Subordination Agreements

§ 24-50.500 Scope of subpart.

This subpart sets forth policy and procedures for processing guaranty and subordination agreements.

§ 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.

§ 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 guarantees 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

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.

§ 24-50.504 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 $- 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 of such contract.

2. Extension of Time of Performance. Any extention of the time of performance of such contract as so amended shall not release the undesigned Guarantor from liability hereon.

3. Assignment. This instrument shall bind the undersigned Guarantor, its successor and assigns. If any person, firm, corporation or entity other than

(Insert Offeror's Name) becomes obligated to perform the contract or any part thereof, whether by operation or law or otherwise, any and all rights of the Government against the Guarantor shall remain in full force.

4. Default. In the event of termination for default under the terms of such contract, or in the event of failure, insolvency, default, bankruptcy, arrangement, appointment of receiver for (Insert Of

feror's Name) or other liquidation of the Offeror, the Guaranty herein shall become absolute.

5. Waiver of Notice. The Guarantor waives notice of default on the part of the Offeror and agrees that its Guaranty shall become absolute without necessity for the giving of such notice.

6. Continuation of Guaranty. The Guaranty herein shall continue until full, complete and faithful performance of such contract as it may be from time to time amended as authorized by its terms.

7. Default Liability. In addition to all other guarantees contained in this agreement, in the event that the Government terminates such contract for default and awards the uncompleted portion of such contract to another source at a fair and reasonable price, the Guarantor shall be liable for any excess costs incurred by the Government as a result of such reprocurement and for the repayment of any unrecoupled Partial Payments, Progress Payments or Advanced Payments paid to the Offeror by the Government. In addition, the Guarantor shall be liable for all costs and expenses paid or incurred by the Government in enforcing this Guaranty. The Contracting Officer representing the Government in connection with such contract shall determine the total costs and expenses, if any, incurred by the Government.

8. Enforcement. This Guaranty Agreement shall inure to the benefit of and may be enforced by the Government.

9. Construction. Nothing in this Guaranty Agreement shall be construed to obligate the Government to award any contract to (Insert Offeror's Name) day of 197

Executed the Two Witnesses: