**INVOICING INSTRUCTIONS COMPARISON**

Was/Is Analysis

As part of the P2P (Procure To Pay) On-Boarding process, a change in the
invoicing instructions provided to JPL subcontractors will be taking
place. The purpose of these new instructions is to assist subcontractors
in understanding JPL's invoicing requirements for the various types of
subcontracts. These new invoicing instructions will help guide the
subcontractor to submit correct and accurate invoices to the Invoice
Management Section. This in turn will avoid delays in the processing for
payment of invoices. Below we have highlighted and compared the key
differences between the old invoicing instructions and the new invoicing
instructions.

**Some of the major changes affecting [all subcontract types
include:]{.underline}**

1)  New invoicing instructions are given in an easy to follow checklist
    format, as opposed to the narrative format used in the past.

2)  New invoicing instructions have the same general requirements,
    regardless of subcontract type.

3)  New invoicing instructions provide sample invoices as a reference
    for subcontractors to use when preparing their own invoices.

**Changes specific to the subcontract types are as follows:**

**[Fixed Price Subcontracts:]{.underline}**

1)  The old invoicing instructions only had three general instructions
    for Fixed Price Subcontracts, \--"a one size fits all" philosophy.
    The new invoicing instructions provide specific instructions for the
    different types of Fixed Priced Subcontracts. The new instructions
    are:

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a.  Regular Fixed Price

b.  Fixed Price with Progress Payments

c.  Fixed Price with Progress Payments with Deliverables/Milestones

d.  Fixed Price with Deliverables/Milestones

e.  Fixed Price with Subcontract Work Orders (SWOs)

f.  Fixed Price -- Construction

g.  Fixed Price -- Architect & Engineering

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2)  Sample invoices show, for example, how retention is to be recorded
    for construction and architect/engineering type subcontracts. Also,
    invoicing instructions for subcontracts with progress payments
    include a completed sample SF 1443.

**[Cost Type Subcontracts:]{.underline}**

1)  The new invoicing instructions provide specific instructions for the
    different types of Cost subcontracts. The old format had only three
    general instructions for Cost Type Subcontracts. New Cost
    instructions are:

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a.  Cost Only

b.  Cost Plus Fee

c.  Cost Plus Fee with Subcontract Work Orders (SWOs)

d.  Cost Reimbursable with Educational Institution (CREI)

e.  Cost Reimbursable with Educational Institution with Subcontract Work
    Orders (SWOs)

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2)  Sample invoices show how to record the fixed fee over the 85%
    allowable limit. The sample invoice also shows how the fixed fee is
    to be calculated using actual numbers.

3)  The new invoicing instructions make it the responsibility of the
    subcontractor to break down costs by project/task on the invoice
    itself when two or more project/tasks are being used.

4)  New instructions remind subcontractors to keep track of their costs
    so as to not exceed authorized allotted funds when invoicing. Past
    instructions were silent in this matter.

**[Labor Hour Subcontracts:]{.underline}**

1)  New invoicing instructions provide specific instructions for the two
    main types of Labor Hour subcontracts. Prior invoicing instructions
    did not make the distinction between the two. New Labor Hour
    instructions are:

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a.  Labor Hour (without SWOs)

b.  Labor Hour ( with SWOs)

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2)  On labor charges for CAT A, a badge and organization number will be
    required on the invoice. Other labor charges (CAT X, CAT Y) will no
    longer require badge numbers to be shown on invoice.

3)  New invoicing instructions will require travel costs to be billed
    together with labor costs on one invoice. In the past,
    subcontractors were allowed to bill labor and travel on separate
    invoices.

**[Time and Material Subcontracts:]{.underline}**

1)  Past instructions provided one set of instructions, without any
    regard to whether the subcontract had SWOs or not. New instructions
    have two separate instructions \-- one for regular Time & Material
    subcontracts and another for Time & Material subcontracts with SWOs.

2)  New instructions for Time & Material with SWOs call for
    subcontractors to send a Monthly Summary Report due the 1^st^ of
    each month. This monthly report is to summarize hours/costs billed
    by SWO and Project/Task. It should also include cumulative dollar
    amounts. A sample of this Monthly Summary Report is provided in the
    instructions. Past instructions did not clearly indicate to the
    subcontractor how often this summary invoice was to be submitted.

3)  New instructions call for material costs to be summarized on one
    line item.

4)  All supporting material receipts, storeroom requisitions and support
    schedules are to be attached to the invoice. Past instructions had
    all material costs on the invoice itself, by individual material
    elements.

**[Blanket Purchase Agreement (BPA) or Indefinite Delivery Subcontract
(IDS):]{.underline}**

1)  No past billing instructions provided for these types of P.O.'s.

2)  New instructions clearly request a freight bill for any freight
    costs over \$100.00. If no freight bill is provided, a signed
    statement (sample included in invoicing instructions) is to be
    included on the invoice or separately attached to the invoice.

3)  Sample invoice on invoicing instructions remind and show
    subcontractors that state sales, use or federal excise taxes, are to
    be subtracted from any amount due on the invoice.

**In summary, the new invoicing instructions will familiarize
subcontractors with JPL's invoice requirements, and will facilitate
invoice preparation by subcontractors. IMS will be able to process and
pay invoices in a more efficient manner, which is a benefit to the lab
and all suppliers.**