Form Approved - OMB No. 2030-0005 – Approval Expires XX/XX/XX

EPA Form 1900-68 (Rev. 03-96)

United States Environmental Protection Agency

Washington, DC 20460

NOTICE OF CONTRACT COSTS

SUSPENDED AND/OR DISALLOWED

PAGE OF PAGES

TO: (Name and Address of Contractor) Contract Number Date

Delivery Order Number (IfApplicable) Voucher Number Reference

1. SUSPENDED COSTS, as referred to herein, are costs which, for the reasons stated below, have been determined by the undersigned to be inadequately

supported or otherwise questionable, and not appropriate for reimbursement under the contract terms at this time. Such costs may be determined

reimbursable after the contractor provides the Contracting Officer and/or Project Officer additional documentation or explanation as specified below.

2. DISALLOWED COSTS, as referred to herein, are costs which, for the reasons stated below, have been determined by the undersigned to be unallowable

that is, not reimbursable under the contract terms.

3. This notice must be responded to by the contractor within 60 days of issuance. Any suspended costs will become disallowed if the contractor does not

respond in the time allotted. These disallowed costs should be removed from the contractor's accounting records for this contract.

4. The contractor may not rebill any suspended costs on this form until notified by the Contracting Officer and/or Project Officer on this contract that the

suspension has been lifted.

5. Ifthe contractor disagrees with this/these determinations, the contractor may (1) request in writing the cognizant contracting officer to consider whether the

unreimbursed costs should be paid and to discuss their findings with the contractor and/or (2) file a claim under the "Disputes" clause of the contract.

6. Copies of this Form 1900-68 should be distributed to the Contracting Officer, Project Officer, RTP Finance, and the applicable Cost Advisory Office.

The public reporting and recordkeeping burden for this collection of information is estimated to average 24.25 hours per response. Send comments on the 

Agency's need for this information, the accuracy of the provided burden estimates, and any suggested methods for minimizing respondent burden, including 

through the use of automated collection techniques to the Director, Collection Strategies Division, U.S. Environmental Protection Agency (2822T), 1200 

Pennsylvania Ave., NW, Washington, D.C. 20460. Include the OMB control number in any correspondence. Do not send the completed form to this 

address.

A. COST SUSPENSION IDate of Notice Invoice Number

Contracting Officer Name and Title of Authorized Official

and/or Project Officer

Signature

ITEM Description of Items and Reason for Action. Documentation needed in order to rebill suspended costs. Amount of Costs

B. REMOVAL OF SUSPENSION IDate of Notice Invoice Number

Contracting Officer Name and Title of Authorized Official

and/or Project Officer

Signature

ITEM Description of Items and Reason for Action. Amount of Costs

C. DISALLOWANCE OF COSTS IDate of Notice Invoice Number

Name andTitle of Authorized Official

Contracting Officer

Signature

ITEM Description of Items and Reason for Action. Amount of Costs

CONTRACTOR'S ACKNOWLEDGMENT OF RECEIPT -The contractor orits authorized representative shall acknowledge receipt of this

notice to the Project Officer and/orContracting Officer.

Date of Notice Name and Title of Authorized Official Signature
INSTRUCTIONS FOR EPA FORM 1900-68

When a PO or CO identifies costs in a voucher that are to be suspended or disallowed, the

Form 1900-68 is used to identify those costs, the associated reasons and to communicate

the action to all necessary parties. Examples of costs that a PO might suspend without CO

involvement are: math errors, incorrect rates, and a lack of available funding. Examples of

costs that CO involvement would be necessary to suspend or disallow costs include lack of

authorization to incur cost, unnecessary costs incurred, and excessive costs. Section A,

Cost Suspension, may be filled out by either the CO or PO. The PO and/or CO must fill

out the Form 1900-68 explaining the suspended amount, sign and date the Form and send it

to the contractor. The contractor must fill out the acknowledgment of receipt on the

applicable area on Form 1900-68 and return a copy of it to either the PO or CO who made

the suspension. A copy of the Form 1900-68 would go to RTP Finance with the Approval

Forms package. Copies of the Form 1900-68 would be filed by PO and/or CO and a copy

sent to the applicable Cost Advisory Office for use in interim and final audits.

The Form 1900-68 states that the contractor has 60 days to respond to the suspension, or

the costs will be considered disallowed and those costs should be transferred to an

unallowable account in the contractor 's accounting records. Ifthe contractor wishes to

respond to the suspension, it must as a minimum furnish documentation specified on the

Form 1900-68 for the costs to be considered allowable. The contractor will then resubmit

this documentation to the PO and CO for review. Either the CO or PO who originally

suspended the costs will consider the documentation and, if it is adequate, they will fill out 

a revised Form 1900-68 Block B. (Removal of Suspension) for some or all of the costs

suspended. Copies of this revised Form 1900-68 would go to the contractor, CO and PO,

RTP FMC, and Cost Advisory Office.

The contractor may rebill suspended costs after receiving the Removal of Suspension using

a separate invoice and attach the Form 1900-68 Removal of Suspension notice to the

invoice. The contractor must then resubmit this bill for payment in accordance with

contract invoicing requirements.

Ifthe contractor prepares supporting documentation for suspended costs that the PO deems

unacceptable, the PO will notify the CO of this and ask for a final determination on the

allowability of the costs. Ifthe CO agrees with the PO, a revised Form 1900-68 with

Block C (Disallowance of Costs) should be completed and sent to the contractor instructing

the contractor to eliminate such costs on future invoices and to move such costs to

unallowable accounts on their accounting records. The contractor must acknowledge

receipt of the disallowance notice by signing and returning the notice to the CO. Where

the CO processed the suspension, the CO will inform the PO and disallow the cost. Copies

of the revised Form 1900-68 should be sent to RTP Finance, the contract file, and the

applicable Cost Advisory Office.