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

\(a\) 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
> Governmentwide 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.
>
> \(4\) The Contractor shall forward the report and IFF to the following
> address:

+-----------------------------+---+--------------------------------------+
| **Regular Mail**            |   | **Overnight Address**                |
|                             |   |                                      |
| Department of Veterans      |   | Department of Veterans Affairs       |
| Affairs                     |   |                                      |
|                             |   | C/o Agent Cashier -- IFF             |
| C/o Agent Cashier -- IFF    |   |                                      |
|                             |   | 1^st^ Ave. One block North of 2^nd^  |
| PO Box 7005                 |   | St., Bldg. 37                        |
|                             |   |                                      |
| Hines, IL 60141             |   | Hines, IL 60141                      |
+-----------------------------+---+--------------------------------------+

> **[Please Note: A report is required even when no sales occur during
> the reporting period.]{.underline}**
>
> \(5\) 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

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

> quarter. The report is available from Financial Management Service,
> International Funds Branch, Telephone: (202) 874-7994, Internet:
> http://www.fms.treas.gov/intn.html.

\(b\) 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 0.5% (one half percent) 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.