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):

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

(2) Insert the voucher number as shown on the SF 1034.

(3) Schedule No. - Leave blank.

(4) 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.

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

(6) Insert the contract number as shown on the SF 1034.

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

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

(9) 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}
>
> (a). [Overhead:]{.underline} Cite the formula (rate and bass) in
> effect during the time the costs were incurred and for which
> reimbursement is claimed.

(10) 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.

(11) Insert the cumulative costs claimed to date by major cost elements.

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(12) 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.

(13) Insert the total costs for the current and cumulative periods.

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(14) 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.

[For Example]{.underline}

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

Total CPFF \$106,000

> Maximum Fee Payable [\$ 5,100]{.underline}

(85% of 6,000)

Fixed-Fee [\$ 6,000]{.underline} - 6%

Estimated Cost \$100,000

> 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.

\(15\) Insert the total costs claimed and the fee due for the current ad
cumulative periods.

(16) 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.

\(17\) 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 Prepared       |
| >                                 |                                   |
| > Office of Program Services,     | \(d\) Contract No. and Date       |
| > SAMHSA                          |                                   |
|                                   |                                   |
| 1.  Choke Cherry Road             |                                   |
|                                   |                                   |
| > Room 7-1051                     |                                   |
| >                                 |                                   |
| > 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     | \(g\) Total Fixed Fee             |
| > Phone Number of Official to     |                                   |
| > Whom Payment is                 |                                   |
| > Sent]{.underline}               |                                   |
+-----------------------------------+-----------------------------------+

  -----------------------------------------------------------------------
  \(h\) This invoice/financing request represents reimbursable costs from
  August 1, 2006 through August 31, 2006.

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

+-----------------------+-----------------------+-----------------------+
| \(k\) 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)                                          |
+-----------------------------------------------------------------------+