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54 <br />Instructions <br />Use this template when negotiating a subcontract whereby the third party subcontractor is <br />agreeing to cost share. The template helps to explain how to properly value committed cost <br />share activity. Additionally, it allows the subcontractor to anticipate the associated <br />representations that will be requested during the program, if it is awarded. <br />Template Purpose <br />• To properly value cost share activity during the proposal process <br />• To provide a consistent format for acceptable cost sharing certification by a third party <br />• To facilitate the closeout process when subcontracts with cost sharing exist <br />Use of Template <br />Timing <br />During the life of the subcontract, periodically (ie, quarterly, semi-annually, in conjunction <br />with the time period of the subcontractor's invoices, et cetera) print this template on your <br />letterhead. <br />The appropriate wording should be cut-and-pasted from the template into a customized letter, <br />using Microsoft WORD application software. Enter the third parry's legal name and its <br />address at the top of the letter under the heading "Certification of Cost Sharing." <br />Mechanics <br />If only salaries and benefits are cost shared, do not include the "supplies, equipment, space, <br />service fees, other" section of the letter. Likewise, if expenses other than salaries and <br />benefits are cost shared, do not include the "salaries and benefits" section. <br />If a separate spreadsheet with the required information is attached, instruct the subcontractor to <br />write "See Attached Detail" in the appropriate section and attach the spreadsheet. The letter <br />(on letterhead) must be signed by the contractor representatives. <br />The form allows third party subcontractors to identify when cost sharing is fully satisfied, or to <br />indicate that cost sharing is behind what was anticipated. This is useful to fulfill the <br />contractor's requirement to monitor the subcontractor's technical and financial progress. <br />Appropriate Signatories <br />The letter must be signed by the third party contact who is responsible for overseeing the <br />program. <br />The letter must be signed by the third party financial representative who is in a position to verify <br />that the valuation of the expenses is in accordance with federal regulations (which are <br />summarized in the two sections of the template). <br />