Basis of Payment - Contract Cost Principles 1031-2

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Legal text for SACC item

Option 1

The Contractor will be reimbursed for the costs reasonably and properly incurred in the performance of the Work as determined in accordance with Contract Cost Principles 1031-2 _____ (insert date), plus _________ (insert "a fixed fee," or "a profit,") to a ceiling price of $________ (insert amount at contract award). Customs duties are ____________ (insert "included", "excluded" or "subject to exemption") and Applicable Taxes are extra. Payments will be subject to government audit. The results and findings of the government's audit will be conclusive.

The ceiling price is subject to downward adjustment so as not to exceed the actual costs reasonably incurred in the performance of the Work and computed in accordance with Contract Cost Principles 1031-2. Upon completion of the audit, the price will be adjusted to the extent necessary to reflect the results of the audit. If there has been any overpayment, it must be promptly refunded to Canada.

(Insert details of the Basis of Payment if not included in an annex.)

Option 2

For the Work described in _________ (insert the applicable section(s) of the statement of work or requirement to which this basis of payment applies) of the __________ (insert "Statement of Work" or "Requirement") in Annex ____ :

The Contractor will be reimbursed for the costs reasonably and properly incurred in the performance of the Work as determined in accordance with Contract Cost Principles 1031-2 _____ (insert date), plus _________ (insert "a fixed fee," or "a profit,") to a ceiling price of $________ (insert amount at contract award). Customs duties are ____________ (insert "included", "excluded" or "subject to exemption") and Applicable Taxes are extra. Payments will be subject to government audit. The results and findings of the government's audit will be conclusive.

The ceiling price is subject to downward adjustment so as not to exceed the actual costs reasonably incurred in the performance of the Work and computed in accordance with Contract Cost Principles 1031-2. Upon completion of the audit, the price will be adjusted to the extent necessary to reflect the results of the audit. If there has been any overpayment, it must be promptly refunded to Canada.

(Insert details of the Basis of Payment if not included in an annex.)