**SUBCONTRACT ATTACHMENT 2**

Subcontract 26XS285

SAIC-Frederick Invoice Instructions for Time & Materials Subcontracts

**Format:** Invoice Requests may be submitted on the payee\'s letterhead
or self-designed form provided that it contains the information
described herein.

**Number of Copies:** Original and l copy

**Frequency:** Invoice requests submitted in accordance with the Payment
Clause shall be submitted no more frequently than monthly unless
otherwise authorized by the Contracting Officer.

**Cost Incurrence Period:** Costs incurred must be within the
subcontract performance period or covered by pre-contract cost
provisions.

**Billing of Costs Incurred:** If billed costs include: (l) costs of a
prior billing period, but not previously billed; or (2) costs incurred
during the contract period and claimed after the subcontract period has
expired, the amount and month(s) in which such costs were incurred shall
be cited.

**Contractor\'s Fiscal Year:** Invoices shall be prepared in such a
manner that costs claimed can be identified with the subcontractor\'s
fiscal year.

**Currency:** All SAIC-Frederick subcontracts are expressed in United
States (U.S.) dollars. When payments are made in a currency other than
U.S. dollars, billings on the subcontract shall be expressed, and
payment shall be made, in that other currency at amounts coincident with
actual costs incurred. Currency fluctuations may not be a basis of gain
or loss to the subcontractor. Notwithstanding the above, the total of
all invoices paid under this contract may not exceed the U.S. dollars
authorized.

**Costs Requiring Prior Approval:** Costs requiring the contracting
officer\'s approval, which are not set forth in an Advance Understanding
(Section B.4) in the contract shall be so identified and reference the
Contracting Officer\'s Authorization. In addition, any cost set forth in
an Advance Understanding shall be shown as a separate line item on the
request.

**Invoice Submission:** Each invoice shall be identified as either:

\(a\) **Interim Invoice---** These are interim payment requests
submitted during the subcontract performance period.

\(b\) **Final Invoice** **---** A final invoice may be required after
the amounts owed have been settled between SAIC-Frederick and the
Subcontractor (e.g., resolution of all suspensions and audit
exceptions).

INVOICE PREPARATION AND DOCUMENTATION REQUIREMENTS

The Subcontractor shall furnish the information set forth in the
explanatory notes below. These notes are keyed to the entries on the
sample invoice.

\(a\) **Designated Billing Office Name and Address** **---** Enter the
designated billing office name and address, identified in Section G.4.
of the subcontract, on all copies of the invoice.

\(b\) **Invoice Number** **---** Insert the appropriate serial number of
the invoice.

\(c\) **Date Invoice Prepared** **---** Insert the date the invoice is
prepared.

\(d\) **Contract Number and Date** **---** Insert the subcontract number
and the effective date of the subcontract.

\(e\) **Payee\'s Name and Address** **---** Show the Subcontractor\'s
name (as it appears in the subcontract), correct address, and the title
and phone number of the responsible official to whom payment is to be
sent. When an approved assignment has been made by the Subcontractor, or
a different payee has been designated, then insert the name and address
of the payee instead of the subcontractor.

\(f\) **Total Not to Exceed Amount of Subcontract ---** Insert the total
not to exceed amount of the subcontract.

\(g\) **Billing Period ---** Insert the beginning and ending dates
(month, day, and year) of the period in which costs were incurred and
for which reimbursement is claimed.

\(h\) **Amount Billed for Current Period** **---** Insert the amount
billed for the major cost elements, adjustments, and adjusted amounts
for the current period.

\(i\) **Cumulative Amount from Inception** **---** Insert the cumulative
amounts billed for the major cost elements and adjusted amounts claimed
during this contract.

\(j\) **Direct Costs** **---** Insert the major cost elements. For each
element, consider the application of the paragraph entitled \"Costs
Requiring Prior Approval\" on page 1 of these instructions.

1.  **Direct Labor** **---** Provide each labor category, hours worked,
    hourly rate charged, and amount billed.

2.  **Accountable Personal Property** **---** Include permanent research
    equipment and general purpose equipment having a unit acquisition
    cost of \$5,000 or more and having an expected service life of more
    than two years, and sensitive property regardless of cost. Show
    permanent research equipment separate from general purpose
    equipment. List each item for which reimbursement is requested. A
    reference shall be made to the following (as applicable):

\- The item number for the specific piece of equipment listed in the
Property Schedule.

\- The Contracting Officer's approval letter and number.

\- Be preceded by an asterisk (\*) if the equipment is below the
approval level. Further itemization of invoices shall only be required
for items having specific limitations set forth in the subcontract.

> \(3\) **Materials and Supplies** **---** Include equipment with unit
> costs of less than \$5,000 or an expected service life of two years or
> less, and consumable material and supplies regardless of amount.
> Attach invoices from vendors or a consolidated listing providing
> individually listed equipment/supplies and the amount paid.
>
> \(4\) **Premium Pay** **---** List remuneration in excess of the basic
> hourly rate and attach the Contracting Officers approval letter.
>
> \(5\) **Consultant Fee** **---** List fees paid to consultants.
> Identify consultant by name or category as set forth in the
> contract\'s Advance Understanding or in the Contracting Officer's
> approval letter, hours worked, rate charged and amount. (Attach
> consultant's invoice)
>
> \(6\) **Travel** **---**Identify travelers, dates, destination ,
> purpose of trip, and amount. Include domestic and foreign travel.
> Foreign travel is travel outside of the United States and its
> territories and possessions. However, for an organization located
> outside the United States and its territories and possessions, foreign
> travel means travel outside that country. Foreign travel must be
> billed separately from domestic travel (Attach travel expense report).
>
> \(7\) **Subcontract Costs** **---** List subcontractor(s) by name and
> amount billed. Describe services provided. (Attach subcontractor
> invoices)
>
> \(8\) **Other** **---** List all other direct costs in total unless
> exceeding \$1,000 in amount. If over \$1,000, list cost elements and
> dollar amounts separately. If the subcontract contains restrictions on
> any cost element, that cost element must be listed separately.

\(k\) **Total Amounts Claimed** **---** Insert the total amounts claimed
for the current and cumulative periods.

\(l\) **Adjustments** **---** Include amounts conceded by the
Subcontractor, outstanding suspensions, and/or disapprovals subject to
appeal. (Provide explanation and rationale for adjustment)

**(m)** Grand Totals

  --------------------- ----------------- ------------------- --- --- ----------------- ------------------------------------ --------- ---------------------------------- ------- ------------- --- ---
  **SAMPLE INVOICE**                                                                                                                                                                                

                                                                                                                                                                                                    

                                                                                                                                                                                                    

  \(a\) Billing Office                                                \(b\) Invoice No. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_                                                                          
  Name and Address                                                                                                                                                                                  

                                                                                                                                                                                                    

                        SAIC-Frederick,                               \(c\) Date                                                       \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_                             
                        Inc.                                          Invoice Prepared                                                                                                              

                        Attn: Accounts                                                                                                                                                              
                        Payable                                                                                                                                                                     

                        P.O. Box B                                    \(d\) Subcontract                                                \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_                             
                                                                      No. and Effective                                                                                                             
                                                                      Date                                                                                                                          

                        Frederick, MD                                                                                                                                                               
                        21702-1201                                                                                                                                                                  

                                                                      \(f\) Total                                                      \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_                             
                                                                      Estimated Cost of                                                                                                             
                                                                      Subcontract                                                                                                                   

                                                                                                                                                                                                    

  \(e\) Payee\'s Name                                                                                                                                                                               
  and Address                                                                                                                                                                                       

                        ABC CORPORATION                                                                                                                                                             

                        100 Main Street                                                                                                                                                             

                        Anywhere, U.S.A.                                                                                                                                                            
                        Zip Code                                                                                                                                                                    

                                                                                                                                                                                                    

                        Attention:        [Name, Title, and                                                                                                                                         
                                          Phone Number                                                                                                                                              
                                          of]{.underline}                                                                                                                                           

                                          [Official to Whom                                                                                                                                         
                                          Payment is Being                                                                                                                                          
                                          Sent]{.underline}                                                                                                                                         

                                                                                                                                                                                                    

  \(g\) This invoice                                                                                                                                                                                
  represents                                                                                                                                                                                        
  reimbursable costs                                                                                                                                                                                
  from [May 1,                                                                                                                                                                                      
  2002]{.underline}                                                                                                                                                                                 
  through [May 31,                                                                                                                                                                                  
  2002]{.underline}                                                                                                                                                                                 

                                                                                                                                                                                                    

                                                                                                                                       \(h\) Amount Billed for Current            \(i\)             
                                                                                                                                       Period                                     Cumulative        
                                                                                                                                                                                  Amount From       
                                                                                                                                                                                  Inception         

  \(j\) Direct Costs                                                                                                                                                                                

  \(1\) Direct Labor                                                                                                                                                                                

  Principle                                                                                                                                                                                         
  Investigator (\$32.00                                                                                                                                                                             
  x 100 Hours =                                                                                                                                                                                     
  \$3,200)                                                                                                                                                                                          

  Technical Assistant                                                                                                                                                                               
  (\$15.00 x 40 Hours =                                                                                                                                                                             
  \$600)                                                                                                                                                                                            

  Total Direct Labor                                                                                                                   \$ 3,800.00                                \$ 10,000.00      

  \(2\) Accountable                                                                                                                                                                                 
  Personal Property                                                                                                                                                                                 

  (Attach Form Entitled                                                                                                                                                                             
  Report of Capitalized                                                                                                                                                                             
  Nonexpendable                                                                                                                                                                                     
  Equipment)                                                                                                                                                                                        

  Permanent Research                                                                                                                   3,000.00                                   3,000.00          
  (see attached invoice                                                                                                                                                                             
  from vendor)                                                                                                                                                                                      

  General Purpose (see                                                                                                                 2,000.00                                   2,000.00          
  attached invoice from                                                                                                                                                                             
  vendor)                                                                                                                                                                                           

  \(3\) Materials and                                                                                                                  2,000.00                                   4,000.00          
  Supplies (see                                                                                                                                                                                     
  attached invoice from                                                                                                                                                                             
  vendor)                                                                                                                                                                                           

  \(4\) Premium Pay                                                                                                                    -0-                                        -0-               
  (see attached                                                                                                                                                                                     
  authorization from                                                                                                                                                                                
  Contracting Officer)                                                                                                                                                                              

  \(5\) Consultant                                                                                                                     100.00                                     500.00            
  Fee - Dr. Jones (1                                                                                                                                                                                
  day @ \$100 \[COA                                                                                                                                                                                 
  #3\])                                                                                                                                                                                             

  \(6\) Travel (see                                                                                                                    200.00                                     1,000.00          
  attached traveler,                                                                                                                                                                                
  destination, etc.)                                                                                                                                                                                
  (Domestic)                                                                                                                                                                                        

                        (see attached                                                                                                  200.00                                     1,000.00          
                        traveler,                                                                                                                                                                   
                        destination,                                                                                                                                                                
                        etc.) (Foreign)                                                                                                                                                             

  \(7\) Subcontract for                                                                                                                1,500.00                                   3,000.00          
  rental space (see                                                                                                                                                                                 
  attached invoice from                                                                                                                                                                             
  vendor)                                                                                                                                                                                           

  \(8\) Other (see                                                                                                                     100.00                                     300.00            
  attached invoice from                                                                                                                                                                             
  vendor)                                                                                                                                                                                           

  **Total Direct                                                                                                                       **\$ 12,900.00**                           **\$              
  Costs**                                                                                                                                                                         24,800.00**       

  \(k\) **Total amount                                                                                                                 **\$ 12,900.00**                           **\$              
  Claimed**                                                                                                                                                                       24,800.00**       

  \(l\) **Adjustments**                                                                                                                                                                             

  \(m\) **Grand                                                                                                                        **\$ 12,900.00**                   ** **   **\$              
  Totals**                                                                                                                                                                        24,800.00**       

                                                                                                                                                                                                    

  \"I certify that all                                                                                                                                                                              
  payments requested                                                                                                                                                                                
  are for appropriate                                                                                                                                                                               
  purposes and in                                                                                                                                                                                   
  accordance with the                                                                                                                                                                               
  terms of the                                                                                                                                                                                      
  subcontract as                                                                                                                                                                                    
  amended/modified.\"                                                                                                                                                                               

                                                                                                                                                                                                    

                                                                                                                                                                                                     

  (Signature of                                                                                                              (Title)                                                                
  Official)                                                                                                                                                                                         
  --------------------- ----------------- ------------------- --- --- ----------------- ------------------------------------ --------- ---------------------------------- ------- ------------- --- ---