## CLAIM OF COSTS INCURRED

Contractor shall provide a claim of costs incurred (Electronic Cost Claim or 'ECC') to the Sandia National Laboratories Contract Audit Department annually within ninety (90) days after end of the Contractor's fiscal year. An ECC is prepared by the Contractor and provided to Sandia Contract Audit in preparation for an audit of the costs incurred and claimed by the Contractor. It is used to compare and reconcile previously billed and paid amounts that are shown in Sandia's accounting system. It also provides the Contractor with an additional opportunity to review previous billings to ensure there have not been omissions or errors. The ECC serves as the Contractor's representation of incurred costs against a government -funded contract. The ECC shall include all costs incurred on this contract during the fiscal year just ended. Additionally, an ECC shall be submitted for any adjustment to any previously reported cost for any prior year. The format and acceptability for an ECC shall be determined by the Contract Audit Department. The Contractor may obtain templates and instructions for submission of the ECC from the Contract Audit Department upon request and at the following website: http://www.sandia.gov/working\_with\_sandia/procurement/current\_suppliers/contract \_audit/. With the agreement of the Sandia Auditor assigned to perform the audit, the Contractor may provide the required information in a different manner or format.

## COMPLIANCE WITH LAWS

Contractor shall procure all necessary permits or licenses and abide by all applicable federal, state, and local laws, ordinances, or regulations, in which any work under this contract is performed which are in any way applicable to the Statement of Work (SOW) of this contract.

## DEFINITIONS

The following terms shall have the meanings set forth below for all purposes of this contract. (a) AUTHORIZED DISTRIBUTORS means distributors who have contractual agreements with manufacturer to represent them in the sales of their parts (b) CONTRACT means Purchase Order, Contract, Price Agreement, Subcontract, Ordering Agreement, or modifications thereof. (c) GOVERNMENT means the United States of America and includes the Department of Energy/National Nuclear Security Administration (DOE/NNSA) or any duly authorized representative thereof. (d) COMMERCIAL ITEM means commercial items, commercial services, and commercial components as defined in FAR 52.202-1. (e) CONTRACTOR means the person or organization that has entered into this contract to sell something to Sandia. (f) CONTRACTOR-DIRECTED WORK means work under a contract for which the Contractor is accountable for the outcome of the work performed and routinely provides work direction to the Contractor's work force (g) INDEPENDENT DISTRIBUTORS (often called brokers) called brokers) - distributors who buy and sell parts (note: they have no contractual agreement with manufacturers and get parts where they can)

Control #: SF 6432-TM Title: Standard Terms and Conditions for Time and Materials Labor-Hour Contracts Owner: Procurement Policy Department Release Date: 03/17/16 Page 4 of 25 Printed copies of this document are uncontrolled. Retrieve latest version electronically.