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 andAddress ofContractor) ContractNumber Date Delivery Order Number (If Applicable) 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 ifthe 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 ofthis 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 ofthe 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. I nclude the OMB control number in any correspondence. Do not send the completed form to this address.**A. COST**  **SUSPENSION** 

### I Date ofNotice InvoiceNumber **Contracting Officer**  Name and Title of Authorized Official **and/or Project**  **Officer** Signature ITEM Description of I tems and Reason for Action. Documentation needed in order to rebill suspended costs. Amount ofCosts

**B. REMOVAL**  **OF SUSPENSION**  

### I Date ofNotice InvoiceNumber **Contracting Officer**  Name and Title ofAuthorized Official **and/or Project**  **Officer** Signature ITEM Description of Items and Reason for Action. Amount ofCosts

**C. DISALLOWANCE**  **OF COSTS**  

### I Date ofNotice InvoiceNumber

Name andTitle ofAuthorized Official **Contracting Officer**  Signature ITEM Description ofItems and Reason for Action. Amount ofCosts

**CONTRACTOR'S ACKNOWLEDGMENT**  **OF RECEIPT** 

-The contractororits authorized representative shall acknowledge receipt ofthis notice tothe Project Officerand/orContracting Officer. Date ofNotice Name and Title ofAuthorized 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 ofthe Form 1900-68 would go to RTP Finance with the Approval Forms package. Copies ofthe 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 ofthe costs suspended. Copies ofthis 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 pay ment 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 ofthis 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 ofthe 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.