Common use of Cost Thresholds Clause in Contracts

Cost Thresholds. Of the “Costs Incurred”, not more than ten percent (10%) of those funds invoiced may be used for administrative costs. Costs invoiced exceeding this threshold are unallowable and will be the responsibility of the FSMC and not the SFA. • Administrative costs, such as indirect labor spent on purchasing produce, planning, and claim reconciliation • Large equipment costs (≥ $250), such as refrigerators, coolers, etc. Prior approval by DPI-SNT is required Additional guidance and requirements for the FFVP can be found in attachment A: “USDA Memo RE: Fresh Fruit and Vegetable Program Fees in FSMC Contracts.”