APPENDIX 2 341 



incurred and not previously reimbursed. The Contracting OflEcer may withhold 

 all or any part of the final reimbursement payment until receipt of the final report, 

 the property accounting, and the patent disclosure and designation required here- 

 under. 



(b) Cost Escape. Notwithstanding any other provision hereof, when and if 

 "actual cost" in such maximum amount shall have been incurred or obligated 

 hereunder, the Contractor shall not be required to incur or obligate further 

 "actual cost" hereunder unless and until the Government shall first agree in 

 writing to reimburse the Contractor therefor. 



(c) Vouchers. All vouchers submitted shall indicate, with respect to each class 

 of items listed by the Contractor thereon, the particular subparagraph of para- 

 graph (d) below under which reimbursement is claimed, and shall be itemized 

 and supported by appropriate substantiating documents as required by the Con- 

 tracting Officer. 



(d) Cost Determination. "Actual cost" as used herein includes only the fol- 

 lowing: 



(i) Salaries and Wages. Expenditures by the Contractor for the salaries and 

 wages of its employees hereunder, plus Federal and State Social Security 

 taxes paid by the Contractor thereon; 



(2) Borrowed Personnel. Expenditures by the Contractor to reimburse other 

 employers for salaries and wages paid by them to their employees released 

 for and engaged in performance of the Contractor's undertakings here- 

 under, plus Federal and State Social Security taxes paid thereon by such 

 employers ; 



(3) Materials and Services. Expenditures by the Contractor for such materials, 

 supplies, apparatus, equipment and other articles (including processing 

 and testing thereof by others, and rental of apparatus and equipment 

 from others), and for the services of others not reimbursed under sub- 

 paragraphs (i) and (2), as are necessary for performance of its under- 

 takings hereunder; Provided, That, when the Contractor furnishes articles 

 customarily produced or assembled in the regular course of its business, 

 it shall be reimbursed therefor at fair and reasonable prices not in excess 

 of the lower of (i) those usually charged by the trade for such articles or 

 (ii) the lowest net prices charged by it therefor at the time to any 

 customer; 



(4) Overhead. An allowance for overhead costs not otherwise reimbursable 

 hereunder in an amount equal to per cent ( ) of the total 

 salaries and wages (but not taxes) reimbursable under subparagraphs 

 (i) and (2) hereof; 



(5) Communication and Shipping. Expenditures by the Contractor necessary 

 for performance of its undertakings hereunder for long distance telephone 

 calls, telegrams, cablegrams, radiograms, postage, freight, express, and 

 drayage; 



(6) Travel. Expenditures by the Contractor necessary for performance of its 

 undertakings hereunder for the transportation expenses of persons directly 

 engaged therein, plus reasonable actual subsistence expenses, in an amount 

 not exceeding ten dollars ($10.00) per person per day, of such persons 



