FAR 52.216-26 - Payments of Allowable Costs Before Definitization
Prescribed in 16.603-4(c) | |
Effective Date: | 1 December 2002 |
Clause or Provision: | Clause |
Provision or Clause Number: | 52.216-26 - Payments of Allowable Costs Before Definitization |
Principle Type And/Or Purpose of Contract: | |
Required: | |
Applicable: | Facilities; Architect-Engineering; Dismantling, Demolition or Removal of Improvements; Cost Reimbursement, Supply; Communication Services; Cost Reimbursement, Construction; Cost Reimbursement, Service; Cost Reimbursement, R&D; Indefinite Delivery |
Optional: | Utility Services; Simplified Acquisition Procedures (Excludes Micro-Purchase); Leasing of Motor Vehicles; Fixed Price, Construction; Time & Material/Labor Hour; Fixed Price, Service |
Subject: | Invoices and Payments |
ProcurementType: | |
Contract Threshold: | |
Prescription Overview: |
Prescription(c) The contracting officer shall also insert the clause at 52.216-26, Payments of Allowable Costs Before Definitization, in solicitations and contracts if a cost-reimbursement definitive contract is contemplated, unless the acquisition involves conversion, alteration, or repair of ships. |
Clause Overview: |
Clause(a) Reimbursement ratePending the placing of the definitive contract referred to in this letter contract, the Government will promptly reimburse the Contractor for all allowable costs under this contract at the following rates: (1) One hundred percent of approved costs representing financing payments to subcontractors under fixed-price subcontracts, provided that the Government’s payments to the Contractor will not exceed 80 percent of the allowable costs of those subcontractors. (2) One hundred percent of approved costs representing cost-reimbursement subcontracts; provided, that the Government’s payments to the Contractor shall not exceed 85 percent of the allowable costs of those subcontractors. (3) Eighty-five percent of all other approved costs. (b) Limitation of reimbursementTo determine the amounts payable to the Contractor under this letter contract, the Contracting Officer shall determine allowable costs in accordance with the applicable cost principles in Part 31 of the Federal Acquisition Regulation (FAR). The total reimbursement made under this paragraph shall not exceed 85 percent of the maximum amount of the Government’s liability, as stated in this contract. (c) InvoicingPayments shall be made promptly to the Contractor when requested as work progresses, but (except for small business concerns) not more often than every 2 weeks, in amounts approved by the Contracting Officer. 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 incurred by the Contractor in the performance of this contract. (d) Allowable costsFor the purpose of determining allowable costs, the term “costs” includes— (1) Those recorded costs that result, at the time of the request for reimbursement, from payment by cash, check, or other form of actual payment for items or services purchased directly for the contract; (2) When the Contractor is not delinquent in payment of costs of contract performance in the ordinary course of business, costs incurred, but not necessarily paid, for—
(3) The amount of financing payments that the Contractor has paid by cash, check, or other forms of payment to subcontractors. (e) Small business concernsA small business concern may receive more frequent payments than every 2 weeks. (f) AuditAt any time before final payment, the Contracting Officer may have the Contractor’s invoices or vouchers and statements of costs audited. Any payment may be— (1) Reduced by any amounts found by the Contracting Officer not to constitute allowable costs; or (2) Adjusted for overpayments or underpayments made on preceding invoices or vouchers. |
Important Notes/Requirements: | |
Subcontract Threshold: | |
Incorporated by Reference: | Yes |
Uniform Contract Format: | I |
Editor: | Marshall |
Personal notes.