Common use of Allowable Cost Clause in Contracts

Allowable Cost. Expenditures made by the CONTRACTOR shall be reimbursed as allowable costs to the extent they meet all of the requirements set forth below. The expenditures must be: (1) Made in conformance with the Project description and the approved Project budget herewith incorporated by reference and set forth as Exhibit B and all other provisions of this Contract Agreement; (2) Necessary in order to accomplish the PROJECT; (3) Reasonable in amount for the goods or services purchased; (4) Actual net costs to the CONTRACTOR (net cost means the price paid minus any refunds, rebates, or other items of value received by the CONTRACTOR which have the effect of reducing the cost actually incurred); (5) Incurred and be for work performed after the date of this Contract Agreement; (6) In conformance with the standards for allowable costs and other requirements as set forth in 2 CFR Part 200 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (commonly referred to as the “Super Circular”) and all amendments thereto, incorporated herein by reference insofar as applicable hereto; (7) To the satisfaction of the DEPARTMENT; (8) Treated uniformly and consistently under accounting principles and procedures approved or prescribed by the DEPARTMENT; and (9) All purchases must be made consistent with State Laws and Purchasing Procedures. (10) Allowable costs shall be reduced by all income, including, but not limited to, farebox revenue and contract revenue (excluding revenues derived from human service agency contracts), received by the CONTRACTOR for services provided under this program or for any other use of equipment purchased through this program. Allowable costs may include eligible costs that are paid by the CONTRACTOR using local contributions that are not required as a part of the match for this project. Local contributions may be added to funds committed to the project budget to further the purposes of the project.