|
"Costs Principles for State, Local, and Indian Tribal Governments" and A-102 "Grants and Cooperative
<br /> Agreements with State and Local Governments."
<br /> C. Allowable Costs. Expenditures made by the Contractor shall be reimbursed as
<br /> allowable costs to the extent they meet all of the requirements set forth below. They must be:
<br /> (1) Consistent with the Project Description, plans, specifications, and
<br /> Project Budget and all other provisions of this Agreement;
<br /> (2) Necessary in order to accomplish the Project;
<br /> (3) Reasonable in amount for the goods or services purchased;
<br /> (4) Actual net costs to the Contractor, i.e., the price paid minus
<br /> any refunds (e.g., refundable sales and use taxes pursuant to N.C.G.S. 105-
<br /> 164.14), rebates, or other items of value received by the Contractor that have
<br /> the effect of reducing the cost actually incurred;
<br /> (5) Incurred (and be for work performed) within the period of performance and
<br /> period covered of this Agreement unless specific authorization from the
<br /> Department to the contrary is received;
<br /> (6) Satisfactorily documented;
<br /> (7) Treated uniformly and consistently under accounting principles and procedures
<br /> approved or prescribed by the Department; and
<br /> (8) In compliance with U.S. DOT regulations pertaining to allowable costs at 49
<br /> C.F.R. § 18.22(b) or 49 C.F.R. § 19.27, which regulations specify the
<br /> applicability of 2 CFR 200, "Uniform Administrative Requirements, Cost
<br /> Principles, and Audit Requirements for Federal Awards as follows:
<br /> (a1) Title 2 CFR 200, Subpart E—Cost Principles
<br /> (formerly OMB Circulars A-87, A-21, and A-122)
<br /> (d1) FAR, at 48 C.F.R., Subpart 31.2, "Contracts with
<br /> Commercial Organizations" applies to Project costs
<br /> incurred by a Contractor that is a for-profit organization.
<br /> Section 9. Reporting, Record Retention, and Access.
<br /> a. Reports. The Contractor shall advise the Department regarding the progress of the
<br /> Project at a minimum quarterly and at such time and in such a manner as the Department may
<br /> require. Such reporting and documentation may include, but not be limited to: operating statistics,
<br /> equipment usage, meetings, progress reports, and monthly performance reports. The Contractor
<br /> shall collect and submit to the Department such financial statements, data, records, contracts, and
<br /> other documents related to the Project as may be deemed necessary by the Department. Such
<br /> reports shall include narrative and financial statements of sufficient substance to be in
<br /> conformance with the reporting requirements of the Department. Progress reports throughout the
<br /> useful life of the project equipment shall be used, in part, to document utilization of the project
<br /> equipment. Failure to fully utilize the project equipment in the manner directed by the Department shall
<br /> constitute a breach of contract, and after written notification by the Department, may result in
<br /> termination of the Agreement or any such remedy as the Department deems appropriate.
<br /> b. Record Retention. The Contractor and its third party contractors shall retain all
<br /> records pertaining to this Project for a period of five (5) years from the date of final payment to the
<br /> Contractor, or until all audit exceptions have been resolved, whichever is longer, in accordance with
<br /> "Records Retention and Disposition Schedule— Public Transportation Systems and Authorities, April 1,
<br /> 2006," at(http://www.ah.dcr.state.nc.us/records/local/).
<br /> C. Access to Records of Contractor and Subcontractors. The Contractor shall permit
<br /> and shall require its third party contractors to permit the Department, the Comptroller General of the
<br /> United States, and the Secretary of the United States Department of Transportation, or their authorized
<br /> representatives, to inspect all work, materials, payrolls, and other data and records with regard to the
<br /> Project, and to audit the books, records, and accounts of the Contractor pertaining to the Project. The
<br /> Department shall reserve the right to reject any and all materials and workmanship for defects and
<br /> incompatibility with Project Description or excessive cost. The Department shall notify the Contractor, in
<br /> 05/27/2015 Page 9 of 35
<br />
|