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Section 00 72 00 GENERAL CONDITIONS <br /> <br />City of Everett 00 72 00-3 June 2024 <br />WFP Air Scour Blower Building Replacement Issued for Bid <br />UP3813 <br />Notice: A signed, written communication by the Contractor to the Owner as described in <br />ARTICLE 10. NOTICE TO OWNER. <br />Notice of Award: The written notice from the City of Everett to the successful Bidder signifying <br />the City’s acceptance of the Bid. No Contract is formed until the Effective Date. <br />Notice to Proceed: The written Notice from the Owner or Owner’s Representative to the <br />Contractor authorizing and directing the Contractor to proceed with the Work and establishing <br />the date on which the Contract Time begins. Multiple and partial Notices to Proceed may be <br />issued on a single Project. <br />Over-absorbed Overhead: Over recovery of fixed indirect costs that occurs when a Contractor <br />performs more overall Work than it otherwise would have performed. <br />Overhead: For the purpose of calculating additional compensation under this section of the <br />Contract, Overhead shall include only those costs that are expended for the administration of <br />the business as a whole. Such costs usually accrue or are incurred due to the passage of time, <br />and cannot be traced to a particular project or Contract. Examples of possible Overhead costs <br />include, but are not limited to, General and Administrative salaries and benefits, rent, general <br />company insurance (exclusive of insurance on owned equipment that is directly job costed), <br />depreciation on office facilities, utilities, maintenance, office supplies, general company <br />accounting and legal fees (exclusive of amounts expended directly on any specific project), <br />personal property taxes, general company business licenses, dues and subscriptions. <br />The following costs and expenses are excluded from the definition and calculation of Overhead. <br />Overhead costs that vary substantially with the volume of Work performed (as measured by <br />billings) shall not be included in Overhead for the purpose of determining additional <br />compensation for Extended or Unabsorbed Home Office Overhead or both. <br />Examples of costs that are not included in Overhead include, but are not limited to, travel and <br />business meetings, telephones, professional fees expended for the benefit of a specific project, <br />union welfare benefits, payroll taxes and equipment rental. <br />If related party transactions are included in a Contractor’s Overhead, they shall be explicitly <br />identified as related party transactions and shall not exceed amounts that would be incurred in <br />an arms-length transaction for the provision of the same or similar goods and services. If such <br />transactions exist and the amounts paid by the Contractor and included in Overhead are in <br />excess of that which would normally be expended in an arms-length transaction, an adjustment, <br />in the form of a reduction in the amount for calculation purposes, shall be included in any <br />calculation in determining the amount of Allocable Overhead. <br />Overhead shall not include any cost directly attributable to a particular project. If a cost can be <br />traced to a particular Contract, the Contractor may not classify the cost as Overhead. <br />Indirect or home office costs that vary substantially with the amount of Work performed shall not <br />be included in the group of costs comprising Overhead. <br />Overhead shall not include costs specifically disallowed by Federal Acquisition Regulations, <br />Subpart 31.2 – Contracts with Commercial Organizations, or its successor. Further, “Overhead” <br />shall not include the costs of “field support services” that are more closely direct costs in nature, <br />regardless of the manner in which the Contractor normally accounts for such costs. An example <br />of such disallowed cost would be for material handling and expediting, which are costs incurred <br />for the direct support and benefit of specific project(s). <br />In addition to compliance with Federal Acquisition Regulations, Subpart 31.2 examples of <br />specific costs not allowed in a calculation under this section of the Contract include, but are not <br />limited to, Incentive Compensation paid to personnel classified as Overhead and otherwise <br />includable under this section of Contract, travel and business meetings, employer paid benefits