Rodarte Construction Inc Everett Station Parking Expansion

I 1 Over-absorbed Overhead: Over recovery of fixed indirect costs that occurs when a I 2 Contractor performs more overall Work than it otherwise would have performed. 3 Overhead: I 4 In general, Overhead for the purpose of calculating additional compensation under this 5 Section of the Contract shall include only those costs that are expended for the 6 administration of the business as a whole. Such costs usually accrue or are incurred due to 111 7 the passage of time, and/or cannot be traced to any particular Project or Contract. 8 Examples of possible Overhead costs are General and Administrative salaries and benefits, 9 rent, general company insurance (exclusive of insurance on owned equipment that is 10 directly job costed, depreciation on office facilities, utilities, maintenance, office supplies, 11 general company accounting and legal fees (exclusive of amounts expended directly on 12 any specific Project), personal property taxes, general company business licenses, dues 13 and subscriptions, etc. I 14 15 The following costs and expenses are excluded from the definition and calculation of 16 Overhead. Overhead costs that vary substantially with the volume of Work performed (as I 17 measured by billings) shall not be included in Overhead for the purpose of determining any 18 amount of additional compensation for Extended and/or Unabsorbed Home Office 19 Overhead. 20 21 Examples of costs that are not included in Overhead include: travel and business meetings, 22 telephones, professional fees expended for the benefit of a specific Project, union welfare 23 benefits, payroll taxes and equipment rental. 24 25 If related party transactions are included in a Contractor's Overhead, they must be explicitly 26 identified as related party transactions and must not exceed amounts that would be 27 incurred in an arms-length transaction for the provision of the same or similar goods and 28 services. If such transactions exist and the amounts paid by the Contractor and included in 29 Overhead are in excess of that which would normally be expended in an arms-length 30 transaction, an adjustment, in the form of a reduction in the amount for calculation 31 purposes, must be included in any calculation in determining the amount of Allocable 32 Overhead. 33I34 Overhead shall not include any cost directly attributable to a particular Project. If a cost can 35 be traced to a particular Contract, the Contractor may not classify the cost as Overhead. 36 Indirect or home office costs that vary substantially with the amount of Work performed I 37 shall not be included in the group of costs comprising Overhead. 38 39 Overhead shall not include any costs specifically disallowed by Federal Acquisition 40 Regulations, Subpart 31.2 — Contracts with Commercial Organizations, or its successor. 41 Further, "Overhead" shall not include the costs of any "field support services" that are more 42 closely direct costs in nature, regardless of the manner in which the Contractor normally 43 accounts for such costs. An example of such disallowed cost would be for material 44 handling and expediting, which are costs incurred for the direct support and benefit of any 45 specific Project(s). 46 47 In addition to compliance with Federal Acquisition Regulations, Subpart 31.2 examples of 48 specific costs not allowed in a calculation under this Section of the Contract are Incentive 49 Compensation paid to personnel classified as Overhead and otherwise includable under 50 this Section of Contract, travel and business meetings, employer paid benefits and taxes on City of Everett Page SP1-4 Special Provisions I Everett Station 80 Stall Parking Expansion June 2019 I