(18) Precontract costs, except as expressly made allowable under other provisions in this contract.

(19) Reconversion, alteration, restoration, or rehabilitation of the contractor's facilities, except as expressly provided elsewhere in this contract.

(20) (Reserved)

(21) Selling costs, except to the extent they are determined to be reasonable and to be allocable to the contract. Allocability of selling costs to the contract will be determined in the light of reasonable benefit to the agency program arising from such activities as technical, consulting, demonstration, and other services performed for such purposes as applying or adapting the contractor's product for agency use.

(22) Storage of records pertaining to this contract after completion of operations under this contract irrespective of contractual or statutory requirement of the preservation of records.

(23) Taxes, fees, and charges in connection with financing, refinancing or refunding operations, including the listing of securities on exchanges; taxes which are paid contrary to the clause entitled "State and local taxes"; Federal taxes on net income and excess profits; special assessments on land which represent capital improvement and taxes on accumulated funding deficiencies of, or prohibited transactions involving, employee deferred compensation plans pursuant to Section 4971 or Section 4975 of the Internal Revenue Code of 1954, as amended, respectively.

(24) Salary or other compensation (and expenses related thereto) of any individual employed under this contract as a consultant or in another comparable employment capacity who is an employee of another organization and concurrently performing work on a fulltime annual basis for that organization under a cost-type contract with the ERDA, except to the extent that cash payment therefor is required pursuant to the provisions of this contract or procedures of the ERDA applicable to the borrowing of such an individual from another cost-type contractor.

(25) First-class air travel in excess of the cost of less than first-class air accomodations, except when less than first-class accommodations are not reasonably available to meet necessary mission requirements, such as, where less than first-class accommodations

would:

(i) Require circuitous routing,

(ii) Require travel during unreasonable hours,

(iii) Greatly increase the duration of the flight,

(iv) Result in additional costs which would offset the transportation savings,

(v) Offer accommodations which are not reasonably ade

quate for the medical needs of the traveler.

(26) Late premium payment charges related to employee deferred compensation plan insurance, in accordance with §9-15.205-16.

$9-50.704-15.

Allowable costs (research and development
contracts with educational institutions).

(a) The ERDA shall pay to the contractor for performance of this contract the allowable direct costs incident to its performance plus the allocable portion of the allowable indirect costs of the contractor, as determined in accordance with:

as

(1) Subpart 1-15.3 of the Federal Procurement Regulations, that text is amended by the amendments to Bureau of the Budget Circular No. A-21 as of the date of commencement of the pertinent contract period set forth in Appendix A; and

NOTE: Subpart 1-15.3 of the FPR, along with the latest amendto Bureau of the Budget Circular No. A-21, as of the date of execution of the contract, may be appended to the contract.

ments

(2) The terms of this contract.

(b) In addition to other costs declared to be unallowable, the salary or other compensation (and expenses related thereto) of any individual employed under the contract as a consultant or in another comparable employment capacity who is an employee of another organization and concurrently performing work on a full-time annual basis for that organization under a cost-type contract with the ERDA shall be unallowable, except to the extent that cash payment therefor is required pursuant to the provisions of the contract or procedures of the ERDA applicable to the borrowing of such an individual from another cost-type contractor.

NOTE: When predetermined overhead rates are to be used, the following shall be added to the above clause (see $9-15.103(c)):

(c) Predetermined overhead rates.

the allowable indirect costs under this
by applying predetermined overhead
the parties, as specified below:

rates

Notwithstanding (a) above, contract shall be obtained to bases agreed upon by

(1) The contractor, as soon as possible, but not later than three (3) months after the expiration of each fiscal year, shall submit to the Contracting Officer, a proposed predetermined overhead rate or rates for use during the contract year based on the contractor's actual cost experience during the immediately preceding fiscal year, together with supporting cost data. Negotiation of predetermined overhead rates by the contractor and the Contracting Officer shall be undertaken as promptly as practicable after receipt of the contractor's proposal.

(2) Allowability of costs and acceptability of cost allocation methods shall be determined in accordance with the appended cost principles for research contracts with educational institutions.

(3) The results of each negotiation shall be set forth in an amendment to this contract and shall specify (i) the agreed predetermined overhead rates, (ii) the bases to which the rates apply, (iii) the fiscal year, unless the parties agree to a different period for which the rates apply, and (iv) the specific items treated as direct costs or any changes in the items previously agreed to be direct

costs.

(4) Pending establishment of predetermined overhead rates for any fiscal year or different period agreed to by the parties, the contractor shall be reimbursed either at the rates fixed for the previous fiscal year or other period or at billing rates acceptable to the Contracting Officer subject to appropriate adjustment when the final rates for that fiscal year or other period are established.

(5) Any failure by the parties to agree on any predetermined overhead rate or rates under this clause shall not be considered a dispute concerning a question of fact for decision by the Contracting Officer within the meaning of the "Disputes" clause of this contract. If for any fiscal year or other period specified in this contract, the parties fail to agree to a predetermined overhead rate or rates prior to the close of the fiscal year for which they are being negotiated, it is agreed that the allowable indirect costs under this contract shall be determined by after-the-fact audit.

(6) Allowable indirect costs for the period until the end of the contractor's fiscal year during which performance begins shall be obtained by applying the predetermined overhead rate set forth in the contract to the bases set forth therein.

$9-50.704.16 Allowable costs and fixed fee (architect

engineer contracts).

(a) Compensation for contractor's services. Payment for the as hereinafter defined, and of the fixed fee, if any,

allowable cost

hereinafter provided shall constitute full and complete compensation for the performance of the work under this contract.

(b) Fixed fee. The fixed fee payable to the contractor for the performance of the work under this contract is $ There shall be no adjustment in the amount of the contractor's fixed fee by reason of differences between any estimate of cost for performance of the work under this contract and the actual cost for performance of that work.

NOTE: This provision may appropriately be changed to cover situations where the fee is for a period of time, or different fees are allowed for various phases of the work.

(c) Allowable cost. The allowable cost of performing the work under this contract shall be the costs and expenses that are actually incurred by the contractor, are applicable and properly chargeable, either as directly incident or as allocable through appropriate distribution or apportionment, to the performance of the contract work in accordance with its terms and are determined to be allowable pursuant to this paragraph (c). The determination of the allowability of cost hereunder shall be based on: (1) reasonableness, including the exercise of prudent business judgment, (2) consistent application of generally accepted accounting principles and practices that result in equitable charges to the contract work, and (3) recognition of all exclusions and limitations set forth in this clause or elsewhere in this contract as to types or amounts of items of cost. Allowable cost shall not include cost of any item described as unallowable in paragraph (e) of this clause, except as indicated therein. Failure to mention an item of cost specifically in paragraph (d) or paragraph (e) shall not imply either that it is allowable or that it is unallowable.

(d) Examples of items of allowable cost. Subject to the other provisions of this clause, the following examples of items of cost of work under this contract shall be allowable to the extent indicated.

(1) Bonds and insurance (including self-insurance) as provided in the clause entitled "Required bonds and insurance exclusive of Government property."

(2) Communication costs, including telephone services, local, and long-distance telephone calls, telegrams, cablegrams, radiograms, postage, and similar items.

(3) Consulting services (including legal and accounting) and related expenses, as approved by the Contracting Officer, except as made unallowable by paragraph (e)(22).

(4) Litigation expenses, including reasonable counsel fees, incurred in accordance with the clause of this contract entitled "Litigation and claims."

(5) Losses and expenses (including settlements made with the consent of the Contracting Officer) sustained by the contractor in the performance of this contract and certified in writing by the Contracting Officer to be just and reasonable, except the losses and expenses expressly made unallowable under other provisions of this contract.

(6) Materials, supplies, and equipment, including freight, transportation, material handling, inspection, storage, salvage, and other usual expenses incident to the procurement, use, and disposition thereof, subject to approvals required under other provisions of this contract.

(7) Royalty payments and patent costs:

(i) Royalties and other costs for use of patents in accordance with FPR 1-15.205-36.

(ii) Patent costs in accordance with FPR 1-15.205-26. (8) Personnel costs and related expenses incurred in accordance with appendix A, or amendments thereto, such as:

(i) Salaries and wages; bonuses and incentive compensation; overtime, shift differential, holiday, and other premium pay for time worked; nonwork time, including vacations, holidays, sick, funeral, military, jury, witness, and voting leave; salaries and wages to employees in their capacity as union stewards and committeemen for time spent in handling grievances, or serving on labor management (contractor) committees: Provided, however, That the Contracting Officer's approval is required in each instance of total c to an individual employee at an annual rate of $ when it is proposed that a total of 50 percent or more sation be reimbursed under ERDA cost-type contracts. tion, as used here, includes only the employee's base and incentive compensation payments.

compensation

or more,

of such compenTotal compensasalary and bonus

3

The specific dollar amount to be inserted here is subject to determination by the contracting officer taking into account the cost principles and procedures set forth in part 9-15, with specific reference to 9-15.5010-14(d). In no event should the dollar amount be more than $35,000.

90-136 = 77 - 37