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What you would expect to see on a cost reimbursable Invoice

By Beverly Austin,2014-06-10 20:34
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What you would expect to see on a cost reimbursable Invoice

    Sandia Delegated Representative (SDR) Tips for Reviewing and

    Approving Cost Reimbursable or Firm Fixed Price (CPFF or FFP) Contract Invoices

    (June 2010)

    As a Sandia Delegated Representative (SDR) or the person assigned by the SDR to administer a CPFF or FFP contract, you play a very significant part in insuring that your contract is appropriately paid. The following “tips” provide information regarding the types of charges you might see on a cost reimbursable or fixed price invoice and some simple checks you can make.

What to expect on a cost reimbursable invoice.

    The key to success is to carefully read the contract language, and review each charge or cost found on the contractors invoice.

The contract states that the level of detail supplied on the Contractor’s invoice is “in such form and

    detail” as required by the Sandia Contracting Representative (SCR). The following list includes the

    type of detail that you might expect to see on an invoice for a reimbursable contract:

    ; Direct costs listed by cost element

     Direct Labor

     Travel

     Materials

     Equipment

     Other Direct Costs (ODCs)

    ; Indirect Rates

     Fringe

     Overhead

     General and Administrative

     FCCM (Must be proposed and per the contractor’s accounting system in order to be

    considered an allowable cost)

    ; Fee

The level of detail will vary based on the contractor’s reporting method and/or specific contract

    requirements. At a minimum, the contractor’s invoice should contain a summary of the cost elements and indirect rates.

Things you can check for:

    ; Is the labor mix, i.e., labor categories or individuals, reasonable based on the statement of

    work?

    ; Are the labor hours being worked reasonable based on the statement of work?

    ; Are travel, materials, equipment and other direct costs (ODCs) what you would expect and

    reasonable, based on the statement of work?

What to expect on a firm fixed price invoice.

    Charges associated with firm fixed price contracts are based on a negotiated price and are usually paid at the completion of the project or at the completion of a designated task(s) and/or milestone(s).

    If payment is made at the completion of the project, the invoice, at the minimum, should state the total price being charged to Sandia. If payment is made based on completion of designated task(s) and/or milestone(s), the invoice should contain a description of the task(s) and/or milestone(s) and the price of the particular task(s) and/or milestone(s). The task(s) and/or milestone(s) and the associated price are called out in the contract. No other detail information is usually required on the invoice unless specified by the Sandia Contracting Representative (SCR).

Things you can check for:

    ; Verify that the project, task(s) and or milestone(s) have been completed per the terms and

    conditions of the contract.

    ; Verify, through review of the contract, that the contractor is billing the correct amount.

    If you have questions or need further clarification about cost reimbursable or fixed price payment issues, contact the SCR listed in your contract or the Contract Audit Department at snlaudit@sandia.gov

    Sandia is a multiprogram laboratory operated by Sandia Corporation, a Lockheed Martin

    Company, for the United States

    Department of Energy’s National Nuclear Security Administration under contract DE-AC04-

    94AL85000.

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