**[552.238-74 INDUSTRIAL FUNDING FEE AND SALES REPORTING (JUL 2003)
(VARIATION)]{.underline}**

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| \(a\) Reporting of Federal Supply Schedule Sales. The Contractor      |
| shall report all contract sales under this contract as follows:       |
|                                                                       |
| \(1\) The Contractor shall accurately report the dollar value, in     |
| U.S. dollars and rounded to the nearest whole dollar, of all sales    |
| under this contract by calendar quarter (January 1-March 31, April    |
| 1-June 30, July 1-September 30, and October 1-December 31). The       |
| dollar value of a sale is the price paid by the Schedule user for     |
| products and services on a Schedule task or delivery order. The       |
| reported contract sales value shall include the Industrial Funding    |
| Fee (IFF). The Contractor shall maintain a consistent accounting      |
| method of sales reporting, based on the Contractor\'s established     |
| commercial accounting practice. The acceptable points at which sales  |
| may be reported include\--                                            |
|                                                                       |
| > \(i\) Receipt of order;                                             |
| >                                                                     |
| > \(ii\) Shipment or delivery, as applicable;                         |
| >                                                                     |
| > \(iii\) Issuance of an invoice; or                                  |
| >                                                                     |
| > \(iv\) Payment.                                                     |
|                                                                       |
| \(2\) Contract sales shall be reported to FSS **within 60 calendar    |
| days** following the completion of each reporting quarter. The        |
| Contractor shall continue to furnish quarterly reports, including     |
| \"zero\" sales, through physical completion of the last outstanding   |
| task order or delivery order of the contract.                         |
|                                                                       |
| \(3\) Reportable sales under the contract are those resulting from    |
| sales of contract items to authorized users unless the purchase was   |
| conducted pursuant to a separate contracting authority such as a      |
| Government-wide Acquisition Contract (GWAC); a separately awarded FAR |
| Part 12, FAR Part 13, FAR Part 14, or FAR Part 15 procurement; or a   |
| non-FAR contract. Sales made to state and local governments under     |
| Cooperative Purchasing authority shall be counted as reportable sales |
| for IFF purposes.                                                     |
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**[552.238-74 INDUSTRIAL FUNDING FEE AND SALES REPORTING (JUL 2003)
(VARIATION) (CONTINUED)]{.underline}**

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| \(4\) The Contractor shall forward the report to the following        |
| address:                                                              |
|                                                                       |
| +--------------------------+---+------------------------------------+ |
| | **Regular Mail**         |   | **Overnight Address**              | |
| |                          |   |                                    | |
| | Department of Veterans   |   | Department of Veterans Affairs     | |
| | Affairs                  |   |                                    | |
| |                          |   | C/O FSS Service (049A2-2)          | |
| | C/O FSS Service          |   |                                    | |
| | (049A2-2)                |   | 1^st^ Avenue, One Block North of   | |
| |                          |   | 22^nd^ St., Bldg. 37               | |
| | PO Box 76                |   |                                    | |
| |                          |   | Hines, IL 60141                    | |
| | Hines, IL 60141          |   |                                    | |
| +--------------------------+---+------------------------------------+ |
|                                                                       |
| **IFF Payment shall be made via ACH Electronic Transfer of Funds      |
| using the following information:**                                    |
|                                                                       |
|   ------------------------------ -----------------------------------  |
|   **Receiver Information**                                            |
|                                                                       |
|   Company Name                   Department of Veterans Affairs       |
|                                                                       |
|   Street Address or P.O. Box     P.O. Box 7005                        |
|                                                                       |
|   City, State, Zip Code          Hines, IL 60141                      |
|                                                                       |
|   Company Contact                Annette Crayton                      |
|                                                                       |
|   Contact Phone                  708-786-7523                         |
|                                                                       |
|   Federal Taxpayer ID Number     74 1612229                           |
|   ------------------------------ -----------------------------------  |
|                                                                       |
| +---------------------------------+-------------------------------+   |
| | **Receiver Bank/Account         |                               |   |
| | Information**                   |                               |   |
| +---------------------------------+-------------------------------+   |
| | Receiving Bank Name             | Department of Treasury        |   |
| +---------------------------------+-------------------------------+   |
| | Receiving Bank Contact          | Cash Link ACH Receiver        |   |
| +---------------------------------+-------------------------------+   |
| | Contact Phone                   | 301-887-6600                  |   |
| +---------------------------------+-------------------------------+   |
| | Receiving Bank City, State      | Richmond, VA                  |   |
| +---------------------------------+-------------------------------+   |
| | Receiving Bank Routing/Transit  | 051036706                     |   |
| | Number                          |                               |   |
| +---------------------------------+-------------------------------+   |
| | Receiving Bank Capability       | CCD+                          |   |
| +---------------------------------+-------------------------------+   |
| | Receiver's Account Number       | 220020                        |   |
| +---------------------------------+-------------------------------+   |
| | Indicate version of 820 ACH     | Standard                      |   |
| | format used by Receiving Bank   |                               |   |
| +---------------------------------+-------------------------------+   |
| |                                 |                               |   |
| +---------------------------------+-------------------------------+   |
| | Be sure to annotate the quarter | October -- December 1^st^     |   |
| | being paid                      | Quarter                       |   |
| |                                 |                               |   |
| |                                 | January -- March 2^nd^        |   |
| |                                 | Quarter                       |   |
| |                                 |                               |   |
| |                                 | April -- June 3^rd^ Quarter   |   |
| |                                 |                               |   |
| |                                 | July -- September 4^th^       |   |
| |                                 | Quarter                       |   |
| +---------------------------------+-------------------------------+   |
| |                                 |                               |   |
| +---------------------------------+-------------------------------+   |
| | Be sure to include the contract | e.g. V797P - \#### B          |   |
| | number in addenda. Provide the  |                               |   |
| | last 5 digits of your contract  |                               |   |
| | number (4#s and the alpha)      |                               |   |
| +---------------------------------+-------------------------------+   |
|                                                                       |
| **NOTE:** A report is required even when no sales occur during the    |
| reporting period.                                                     |
|                                                                       |
| > **NOTE:** Vendor's sales report ***must*** include all Prime        |
| > Vendor, Direct-to-Patient Distribution, and Department of Defense   |
| > Distribution and Pricing Agreement (DAPA) program sales, as         |
| > applicable                                                          |
| >                                                                     |
| > \(5\) The Contractor shall convert the total value of sales made in |
| > foreign currency to U.S. dollars using the \"Treasury Reporting     |
| > Rates of Exchange\" issued by the U.S. Department of Treasury,      |
| > Financial Management Service. The Contractor shall use the issue of |
| > the Treasury report in effect on the last day of the calendar       |
| > quarter. The report is available from Financial Management Service, |
| > International Funds Branch, Telephone: (202) 874-7994, Internet:    |
| > **<http://www.fms.treas.gov/intn.html>.**                           |
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**[552.238-74 INDUSTRIAL FUNDING FEE AND SALES REPORTING (JUL 2003)
(VARIATION) (CONTINUED)]{.underline}**

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| \(b\) The Contractor shall remit the IFF at the rate set by VA\'s     |
| FSS.                                                                  |
|                                                                       |
| > \(1\) The Contractor shall remit the IFF to FSS in U.S. dollars     |
| > within 60 calendar days after the end of the reporting quarter;     |
| > final payment shall be remitted within 60 days after physical       |
| > completion of the last outstanding task order or delivery order of  |
| > the contract.                                                       |
| >                                                                     |
| > \(2\) The IFF equals **[0.50% (one half of one                      |
| > percent)]{.underline}** of the total quarterly sales reported. This |
| > percentage is set at the discretion of VA\'s FSS. VA\'s FSS has the |
| > unilateral right to change the percentage at any time, but not more |
| > than once per year. FSS will provide reasonable notice prior to the |
| > effective date of the change. The IFF reimburses FSS for the costs  |
| > of operating the Federal Supply Schedules Program and recoups its   |
| > operating costs from ordering activities. Offerors must include the |
| > IFF in their prices. The fee is included in the award price(s) and  |
| > reflected in the total amount charged to ordering activities.       |
|                                                                       |
| \(c\) Within 60 days of award an FSS representative will provide the  |
| Contractor with specific written procedural instructions on remitting |
| the IFF. FSS reserves the unilateral right to change such             |
| instructions from time to time, following notification to the         |
| Contractor.                                                           |
|                                                                       |
| \(d\) Failure to remit the full amount of the IFF within 60 calendar  |
| days after the end of the applicable reporting period constitutes a   |
| contract debt to the United States Government under the terms of FAR  |
| Subpart 32.6. The Government may exercise all rights under the Debt   |
| Collection Improvement Act of 1996, including withholding or setting  |
| off payments and interest on the debt (see FAR clause 52.232-17,      |
| Interest). Should the Contractor fail to submit the required sales    |
| reports, falsify them, or fail to timely pay the IFF, this is         |
| sufficient cause for the Government to terminate the contract for     |
| cause.                                                                |
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