BILLING INSTRUCTIONS

SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES ADMINISTRATION

DIVISION OF CONTRACTS MANAGEMENT

Guide for Preparing Vouchers Under

Cost-Reimbursement Type Contracts

I. [INTRODUCTION]{.underline}

A.  [GENERAL]{.underline}

> This Guide presents procedures for the preparation of Contractor\'s
> reimbursement claims under (1) cost-reimbursement type contracts; (2)
> the cost-reimbursement portions of fixed-price contracts; (3) letter
> contracts which provide for reimbursement of costs; (4) time and
> material contracts; and (5) labor-hour contracts. The term
> \"cost-reimbursement type contracts\" as used in this Guide includes
> all of the foregoing contractual arrangements.

B. [DESK AUDIT]{.underline}

> To expedite final payment on contracts subject to desk audit, the
> contractor may be required to provide the information set forth in
> III, C, of this guide.

C. [PRESCRIBED GOVERNMENT FORMS]{.underline}

> Standard Form 1034 \"Public Voucher for Purchases and Services Other
> Than Personal\" (Figure 1), and Standard Form 1035, \"Public Voucher
> for Purchases and Services Other Than Personal - Continuation Sheet\"
> (Figure 2), should be utilized by Contractors to show the amount
> claimed for reimbursement under cost-reimbursement type contracts, and
> to provide the necessary supporting detail, respectively. The SF 1035
> may also be used to furnish any additional information as may be
> required by the Contracting Officer in accordance with the terms of
> the contract. The voucher and continuation sheet may be on reproduced
> copies of the forms providing they conform to the official Government
> forms in format and are marked \"original\".
>
> The Contractor may attach to the SF 1034, Public Vouchers for
> Purchases and Services Other Than Personal, Form HHS-646, Financial
> Report of Individual Project/Contract, or self-designed form may be
> used if it contains the information required by this Guide and is
> otherwise acceptable to the Contracting Officer.

D. [TIME OF SUBMISSION]{.underline}

> Vouchers may be submitted at the beginning of each billing period for
> costs incurred during the preceding billing period. Costs incurred
> earlier than the preceding billing period, but not previously billed
> for, may be included, but the amount and month(s)in which such costs
> were incurred must be stated in the SF 1035 or equivalent form.
> Vouchers shall not be submitted more frequently than once each month
> unless such arrangements are made with the Contracting Officer.

E. [COST INCURRANCE PERIOD]{.underline}

> Costs must be incurred within the contract performance period or the
> period covered by pre-contract cost provisions.

F. [CONTRACTOR\'S FISCAL YEAR]{.underline}

> > Vouchers must be prepared in such a manner that costs claimed can be
> > associated or identified with the Contractor\'s fiscal year. This
> > will ensure proper application of indirect cost rates to the direct
> > costs of a particular fiscal year.

II\. [PREPARATION OF PUBLIC VOUCHERS]{.underline}

A. [GENERAL]{.underline}

> This information which a Contractor is required to submit in its
> public vouchers (SF 1034 and 1035) is set forth in the explanatory
> notes which follow. These notes are keyed to the entries on the
> illustrative public vouchers, Figures 1 and 2.

B. [COMPLETION OF SF 1034]{.underline}

The following information is required to be submitted on SF 1034 or
equivalent (Refer to Figure 1):

(a) U. S. Department, Bureau of Establishment, and Location enter the
    complete address as shown in the contract.

\(b\) Date Voucher Prepared - insert the date on which the voucher was
prepared.

\(c\) Contract Number and Date - insert the number and the date of the
contract under which reimbursement is claimed.

\(d\) All blocks lettered (d) should normally be left blank.

(e) Voucher No. - insert the appropriate serial number of each voucher
    including the completion and final voucher. A separate series of
    consecutive numbers, beginning with number 1, shall be used by the
    Contractor for each contract.

(f) Payee\'s Name and Address - insert name and address of Contractor to
    which payment should be made. In the case of an assignment of
    claims, also insert the organization to which payments have been
    assigned.

(g) Payee\'s Account Number - this space may be used by the Contractor
    to record the account or job number assigned to the contract.

(h) Number and Date of Order - enter the number and date of the
    applicable order. (Applicable only when billings are consequent to
    work assignments of the cost occurrence period.)

(i) Date of Delivery/Services - show the month and year, beginning and
    ending dates of the cost incurrence period.

\(j\) Articles and Services - insert the following: \"For detail see
attached page(s)\".

\(k\) Amount and Total - insert the amount claimed for the period
indicated in (i) above.

\(l\) Identification - each voucher submitted must be prominently
identified as one of the following:

> \(i\) Interim Voucher - \"Cost Reimbursable - Provisional Payment\".
>
> \(ii\) Completion Voucher - \"Cost Reimbursable Completion Voucher\".
>
> \(iii\) Final Voucher - \"Cost Reimbursable - Final Voucher\".

\(m\) Type the following certification, signed by an authorized
official, on the face of the SF 1034:

> \"I certify that all payments requested are for appropriate purposes
> and in accordance with the applicable); Total Contract Value; and
> Amount of Fee payable (if applicable).

Name of Official and Title

C. [COMPLETION OF SF 1035]{.underline}

The following information is required to be submitted on SF 1035 or
equivalent (refer to Figure 2):

Insert the name of the Government Agency as shown under of the SF 1034.

Insert the voucher number as shown on the SF 1034.

Schedule No. - Leave blank.

If more than one sheet is used, insert the sheet number in numerical
sequence, showing Page of . Use as many sheets as necessary to show the
required information.

Insert payee\'s name and address as in the SF 1034.

Insert the contract number as shown on the SF 1034.

Insert the latest: total estimated cost; total fee (if applicable);
total contract value; and amount of fee payable (if applicable).

Insert: \"Summary of claimed current and cumulative cost\" and \"fee
earned\", if applicable.

Unless otherwise required by the contract, insert the major elements of
incurred cost which are defined as follows:

1\. [Direct Costs]{.underline}

> \(a\) [Direct Labor:]{.underline} This consists of salaries and wages
> for direct performance of the contract.
>
> \(b\) [Fringe Benefits:]{.underline} This represents fringe benefits
> applicable to direct labor and billed as direct cost. Fringe benefits
> included in indirect costs should not be identified here.
>
> \(c\) [Capitalized Nonexpendable Equipment:]{.underline} This
> represents personal property of a capital nature; i.e., property
> acquired at a cost of \$1000 or more and that has a service life of
> more than two years.
>
> Form HHS 565, Report of Accountable Property as outlined in the HHS
> publication \"Contractor\'s Guide for control of Government Property\"
> will accompany the contractor\'s public voucher (SF 1034/SF 1035) as
> required.
>
> \(d\) [Material, Supplies and Non-capitalized Equipment:]{.underline}
> These are consumable materials, supplies and equipment other than
> those described in (c) above.
>
> \(e\) [Premium Pay:]{.underline} This is remuneration in excess of the
> basic hourly rate.
>
> \(f\) [Consultant\'s Fee:]{.underline} These are fees paid to
> consultants. List names, time, and charges for the current billing
> period. If required by the terms and conditions of the contract, cite
> the applicable COA number.
>
> \(g\) [Travel:]{.underline} Domestic travel is travel within the
> United States, its territories, possessions, and Canada. It should be
> billed separately from foreign travel.

\(h\) [Other:]{.underline} List all other direct costs in total unless
significant in amount. If significant, list costs elements and dollar
amount separately; i.e., subcontracts.

> 2\. [Indirect Costs]{.underline}
>
> Cite the formula (rate and base) in effect during the time the costs
> were incurred and for which reimbursement is claimed.
>
> 3\. [Direct Costs]{.underline}

Insert the current costs claimed by major cost elements. Costs claimed
for reimbursement can be only those amounts that are consistent with the
term \"costs\" as defined in allowable cost and payment clause. Where it
is found that amounts claimed do not meet this definition, such costs
together with their associated costs and fee will be disallowed. All
adjustments included herein must be explained in detail. Insert the
cumulative costs claimed to date by major cost elements. Costs claimed
for cost-typed subcontracts must be supported by information similar to
the SF 1035 for each subcontractor. Costs for fixed-price subcontracts
shall be on the basis of items delivered or services received, accepted
and paid by the prime contractor. Insert the total costs for the current
and cumulative periods.

> 4\. [Fee]{.underline}

If the contract provides for an incentive or fixed-fee, insert the fee
earned for the current and cumulative periods and the formula for such
computation; e.g., if payment of the fee is based on a percentage of
costs, the target incentive fee or fixed-fee earned shall be determined
by applying the percentage ration of target incentive fee or fixed-fee
to the total estimated cost of the contractor. However after payment of
85% of the fee, the Contracting Officer may withhold further payment of
fee to establish a reserve to protect the interests of the Government.
This reserve may not exceed 15% of the total fee, or \$100,000,
whichever is less.

> Contract Estimated Cost \$100,000
>
> Fixed-Fee [6,000]{.underline}

Total CPFF \$106,000

> Maximum Fee Payable \$ 5,100

(85% of 6,000)

> Therefore, fixed-fee may be billed at 6% of actual costs incurred
> until the maximum fee of \$5,100 has been paid. Any fee withheld is
> payable upon submission of appropriate closing documents after final
> audit of the contract has been completed and all audit exceptions have
> been resolved.

Insert the total costs claimed and the fee due for the current ad
cumulative periods.

If applicable, resubmission of any previously claimed amounts which were
suspended should be shown below the current amount claimed and footnoted
to cite the number of the public voucher on which the deduction was made
and the date and number of the related suspension notice.

> Suspensions from which the contractor has successfully appealed shall
> be identified by referencing the Contracting Officer\'s letter of
> approval.

Insert the current amount claimed. Transfer this amount to SF 1034.

III\. [GENERAL INSTRUCTIONS]{.underline}

A. [Costs Requiring Prior Authorization and Approval]{.underline}

> The contractor should be aware of the requirements for prior written
> approval from the Contracting Officer for certain costs (e.g., premium
> pay, foreign travel). Whenever the voucher includes such costs not
> authorized by the contract, reference must be made to the Contracting
> Officer\'s Authorization letter (COA).

B. [Withholding and Releases of Contract Reserves]{.underline}

> Contractual provisions covering fees, patents, royalties, etc.,
> usually provide for the accumulation of a withholding reserve until
> certain contract requirements are met to the satisfaction of the
> Contracting Officer. It is the contractor\'s responsibility to include
> appropriate adjustments in his reimbursement claims to cover the
> required accumulation and release of contract withholding reserves.
> The contractor should resolve any questions regarding the amount of
> these reserves with the Contracting Officer.

C. [Contractor\'s Completion Voucher]{.underline}

> After all costs have been assigned to the contract and all contract
> performance provisions have been completed, the Contractor shall
> promptly submit, but in any event within twelve (12) months from the
> date of such completion, its completion voucher to the office
> designated in the contract directly to the Contracting Officer to
> finalize the financial settlement of the contract). This voucher must
> be specifically identified as the completion voucher and should
> include the remaining cost, fees, and reserves claimed to be due by
> the Contractor. It will not include items and amounts which may be set
> out in any qualifications in the Contractor\'s release of claims. A
> separate completion voucher shall be submitted for each individual
> project or task order for which a separate series of public vouchers
> has been submitted.
>
> Final payment on prescribed contracts may be made on the basis of a
> desk audit. To expedite final settlement on these contracts, the
> Contracting Officer may request the Contractor to submit detailed
> support for costs claimed under one or more interim vouchers.

D. [Contractor\'s Final Voucher and Closing Documents]{.underline}

> After completion of the final audit and all suspensions and/or audit
> exceptions have been resolved and there is mutual agreement between
> the Contractor and the Contracting Officer on the final allowable cost
> and fee, if any, the Contractor shall submit its final voucher and the
> appropriate closing documents to the office designated in the
> contract. This voucher shall be specifically identified as the final
> voucher, and must be supported by the following documents:

\(1\) Contractor\'s Release

\(2\) Assignee\'s Release, if applicable.

> \(3\) Contractor\'s Assignment of Refunds, Rebates, Credits and Other
> Amounts
>
> \(4\) Assignee\'s Assignment of Refunds, Rebates, Credits, and Other
> Amounts, if applicable
>
> \(5\) Contractor\'s Affidavit or Waiver of Lien, when required by the
> contract
>
> If final settlement of the contract is in the amount shown on the
> completion voucher, the Contractor need not submit a final voucher,
> but only the additional closing documents cited above.

E. [Currency]{.underline}

> All Department contracts are expressed in the United States dollars.
> Where expenditures are made in a currency other than United States
> dollars, billings on the contract shall be expressed, and
> reimbursement by the United States Government shall be made, in that
> other currency at amounts coincident with the actual costs incurred.
> Currency fluctuation may not be on a basis of gain or loss to the
> Contractor. Notwithstanding the above, the total of all invoices paid
> under this contract may not exceed the United States dollars
> authorized.

F. [Government Liaison]{.underline}

> Any questions concerning delays in payment of Contractor\'s vouchers
> should be addressed to the office designated to receive the voucher;
> matters relative to performance or the instructions set forth in this
> Guide, should be addressed to the Contracting Officer.

Exhibit A to Billing Instructions

> In addition to the requirements of the billing Instructions for
> Cost-Reimbursement Type Contracts, the contractor agrees to included
> the following supplemental information on each invoice for the cost
> categories shown below:
>
> [Direct Labor]{.underline}
>
> \(1\) Position Category

\(2\) Employee Identification Number or Name

\(3\) Hours Expended

\(4\) Hourly Rate

[Travel]{.underline}

\(1\) Detail purpose of travel (i.e., seminar, course, site visit, etc.)

\(2\) Dates and duration of travel

\(3\) Point of departure and destination

\(4\) Names of individuals

\(5\) Per diem rate

\(6\) Travel costs (air fare, care rental (including mileage), taxis,
etc.)

> [Material or Equipment (Rental or Purchase]{.underline}

\(1\) Description, quantity and amount of each item

\(2\) COA letter number, if applicable

[Consultants]{.underline}

\(1\) Name

\(2\) Rate

\(3\) Number of days and dates

\(4\) COA letter number, if applicable

[Indirect Costs]{.underline}

\(1\) Rate

\(2\) Base

[Other Direct Costs]{.underline}

> All other expenditures must be described and the respective amounts
> shown.
>
> Billing Instructions to be included in any subcontracts shall call for
> the supplemental information cited above. The prime Contractor shall
> provide, with each invoice that contains subcontract costs, a copy of
> the supplemental information provided by the subcontractor.

[Contractor\'s Fiscal Year]{.underline}

> Invoices must be prepared in such a manner that costs claimed can be
> associated or identified with the Contractor\'s fiscal year.

SAMPLE INVOICE/FINANCING REQUEST

+--------------------------------------------+-------------------------+
| \(a\) Contracting Officer                  | \(b\) Invoice/Financing |
|                                            | Request No.             |
| > Division of Contracts Management         |                         |
| >                                          | \(c\) Date Voucher      |
| > Office of Program Services, SAMHSA       | Prepared                |
| >                                          |                         |
| > Rockwall Bldg., Suite 640                | \(d\) Contract No. and  |
| >                                          | Date                    |
| > 5600 Fishers Lane                        |                         |
| >                                          |                         |
| > Rockville, Maryland 20857                |                         |
+--------------------------------------------+-------------------------+
| \(e\) Payee\'s Name and Address            | \(f\) Total Estimated   |
|                                            | Cost of Contract        |
| > ABC CORPORATION                          |                         |
| >                                          |                         |
| > 100 Main Street                          |                         |
| >                                          |                         |
| > Anywhere, U.S.A. Zip Code                |                         |
+--------------------------------------------+-------------------------+
| > Attention: [Name, Title and Phone Number | \(g\) Total Fixed Fee   |
| > of Official to Whom Payment is           |                         |
| > Sent]{.underline}                        |                         |
+--------------------------------------------+-------------------------+

  -----------------------------------------------------------------------
  \(h\) This invoice/financing request represents reimbursable costs from
  August 1, 1992 through August 31, 1992.

  -----------------------------------------------------------------------

+-----------------------+-----------------------+-----------------------+
| \(k\) Direct Costs    | \(i\) Amount Billed   | \(j\) Cumulative      |
|                       | for                   | Amount From Inception |
| > \(1\) Direct Labor  |                       |                       |
| >                     | [Current              | [to Date of this      |
| > \(2\) Fringe        | Period]{.underline}   | Billing]{.underline}  |
| > Benefits            |                       |                       |
| >                     | > \$ 3,400            | > \$ 6,800            |
| > \(3\) Accountable   | >                     | >                     |
| > Personal Property   | > 600                 | > 1,200               |
| >                     | >                     | >                     |
| > (Attach HHS-565)    | > 3,000               | > 8,000               |
| >                     | >                     | >                     |
| > Permanent           | > 2,000               | > 2,000               |
| >                     | >                     | >                     |
| > General Purpose     | > 2,000               | > 4,000               |
| >                     | >                     | >                     |
| > \(4\) Materials and | > 100                 | > 150                 |
| > Supplies            | >                     | >                     |
| >                     | > 100                 | > 100                 |
| > \(5\) Premium Pay   | >                     | >                     |
| >                     | > 200                 | > 200                 |
| > \(6\) Consultant    | >                     | >                     |
| > Fee                 | > 200                 | > 200                 |
| >                     | >                     | >                     |
| > Dr. Jones/1 day @   | > 0                   | > 0                   |
| > 100-COA #3          | >                     | >                     |
| >                     | > [\$ 0]{.underline}  | > [0]{.underline}     |
| > \(7\) Travel -      | >                     | >                     |
| > Domestic (see       | > \$ 11,600           | > \$20,650            |
| > detail)             | >                     | >                     |
| >                     | > 2,400               | > 3,600               |
| > Foreign             | >                     | >                     |
| >                     | > 4,000               | > 6,000               |
| > \(8\) Subcontract   | >                     | >                     |
| > Cost                | > [700]{.underline}   | > [1,400]{.underline} |
| >                     | >                     | >                     |
| > \(9\) Other         | > \$ 18,700           | > \$31,650            |
| >                     | >                     | >                     |
| > Total Direct Costs  | > \$ 18,700           | > \$29,950            |
|                       |                       |                       |
| \(l\) Cost of Money   |                       |                       |
|                       |                       |                       |
| > (                   |                       |                       |
| [Factor]{.underline}) |                       |                       |
| > or ([Appropriate    |                       |                       |
| > Base]{.underline})  |                       |                       |
|                       |                       |                       |
| \(m\) Indirect        |                       |                       |
| Costs - Overhead      |                       |                       |
|                       |                       |                       |
| > \% of Direct Labor  |                       |                       |
| > or Other Base       |                       |                       |
| > (Formula)           |                       |                       |
|                       |                       |                       |
| \(n\) Fixed-Fee       |                       |                       |
| Earned (Formula)      |                       |                       |
|                       |                       |                       |
| \(o\) Total Amount    |                       |                       |
| Claimed               |                       |                       |
|                       |                       |                       |
| \(p\) Adjustments     |                       |                       |
|                       |                       |                       |
| > Outstanding         |                       |                       |
| > Suspensions         |                       |                       |
|                       |                       |                       |
| \(q\) Grand Totals    |                       |                       |
+-----------------------+-----------------------+-----------------------+

+-----------------------------------------------------------------------+
| \"I certify that all payments requested are for appropriate purposes  |
| and in accordance with the contract.\"                                |
|                                                                       |
| > (Name of Official) (Title)                                          |
+-----------------------------------------------------------------------+