Common use of ALLOWABLE ADMINISTRATIVE COSTS Clause in Contracts

ALLOWABLE ADMINISTRATIVE COSTS. As is noted in C.1 above, administrative costs cannot exceed a total of 10 percent (10%) of total program expenses (including program expenses paid through premiums) over the life of the contract and no more than the amount set forth in its cost proposal over the first performance period, absent advance approval of HHS. The allowable administrative costs include those associated with implementing the high risk pool program, including expenses directly related to the tasks outlined in B.3 as well as other expenses including, but not limited to the use of actuarial services, accounting and auditor fees, agent referral fees, assessment operations, bank charges, board of director expenses, staff salary and expenses, legal expenses, marketing and outreach, office rent, equipment and supplies, postage, and printing and other administrative costs as approved by HHS consistent with OMB Circular A-87, “Cost Principles for State, Local, and Indian Tribal Governments.” This includes administrative costs incurred before the effective date of the contract directly pursuant to negotiation with HHS and in anticipation of contract award, when such incurrence is necessary to comply with the proposed contract delivery schedule. These costs are allowable to the extent that they would have been allowable if incurred after the date of the contract (see FAR 31.205- 32). On at least a monthly basis, the Contractor shall submit a Statement of costs indicating:

ALLOWABLE ADMINISTRATIVE COSTS. As is noted in section C.1 above, administrative costs cannot exceed a total of 10 percent (10%) of total program expenses (including program expenses paid through premiums) over the life of the contract and no more than the amount set forth in its cost proposal over the first performance period, absent advance approval of HHS. The allowable administrative costs include those associated with implementing the high risk pool program, including expenses directly related to the tasks outlined in section B.3 as well as other expenses including, but not limited to the use of actuarial services, accounting and auditor fees, agent referral fees, assessment operations, bank charges, board of director expenses, staff salary and expenses, legal expenses, marketing and outreach, office rent, equipment and supplies, postage, and printing and other administrative costs as approved by HHS consistent with OMB Circular A-87, “Cost Principles for State, Local, and Indian Tribal Governments.” This includes administrative costs incurred before the effective date of the contract directly pursuant to negotiation with HHS and in anticipation of contract award, when such incurrence is necessary to comply with the proposed contract delivery schedule. These costs are allowable to the extent that they would have been allowable if incurred after the date of the contract (see FAR 31.205- 31.205-32). On at least a monthly basis, the Contractor shall submit a Statement of costs indicating: