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CITY OF EVERETT SPECIAL PROVISIONS
<br />LS47-Beverly Lake Sewer Replacement Division 1 – GENERAL REQUIREMENTS January 30, 2025
<br />WO No – UP3529 SP – 41
<br />due to the passage of time, or cannot be traced to a particular project or contract, or
<br />both.
<br />Examples of possible Overhead costs include, but are not limited to, General and
<br />Administrative salaries and benefits, rent, general company insurance, exclusive of
<br />insurance on owned equipment that is directly job costed, depreciation on office facilities,
<br />utilities, maintenance, office supplies, general company accounting and legal fees,
<br />exclusive of amounts expended directly on any specific project, personal property taxes,
<br />general company business licenses, dues and subscriptions.
<br />The following costs and expenses are excluded from the definition and calculation of
<br />Overhead. Overhead costs that vary substantially with the volume of Work performed,
<br />as measured by billings, shall not be included in Overhead for the purpose of
<br />determining additional compensation for Extended or Unabsorbed Home Office
<br />Overhead, or both.
<br />Examples of costs that are not included in Overhead include: travel and business
<br />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 must be
<br />explicitly identified as related party transactions and must not exceed amounts that
<br />would be incurred in an arms-length transaction for the provision of the same or similar
<br />goods and services. If such transactions exist and the amounts paid by the Contractor
<br />and included in Overhead are in excess of that which would normally be expended in an
<br />arms-length transaction, an adjustment, in the form of a reduction in the amount for
<br />calculation purposes, must be included in any calculation in determining the amount of
<br />Allocable Overhead.
<br />Overhead shall not include any cost directly attributable to a particular project. If a cost
<br />can be traced to a particular contract, the Contractor may not classify the cost as
<br />Overhead.
<br />Indirect or home office costs that vary substantially with the amount of Work performed
<br />shall not be included in the group of costs comprising Overhead.
<br />Overhead shall not include any costs specifically disallowed by Federal Acquisition
<br />Regulations, Subpart 31.2 – Contracts with Commercial Organizations, or its successor.
<br />Further, “Overhead” shall not include the costs of any “field support services” that are
<br />more closely direct costs in nature, regardless of the manner in which the Contractor
<br />normally accounts for such costs. An example of such disallowed cost would be for
<br />material handling and expediting, which are costs incurred for the direct support and
<br />benefit of any specific project(s).
<br />In addition to compliance with Federal Acquisition Regulations, Subpart 31.2 examples
<br />of specific costs not allowed in a calculation under this Section of the Contract are
<br />Incentive Compensation paid to personnel classified as Overhead and otherwise
<br />includable under this Section of the Contract, travel and business meetings, employer
<br />paid benefits and taxes on direct payroll costs of any project, insurance costs directly
<br />identifiable to any specific project, penalties, and any costs incurred regarding company
<br />owned equipment normally classified as a direct project costs,.
<br />Person: Includes individuals, associations, firms, companies, corporations,
<br />partnerships, and joint ventures.
<br />Project: The undertaking to be performed under the provisions of the Contract.
<br />Provide: Furnish and Install, complete in place.
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