No salaries of the Contractor's executive officers, no part of the expense incurred in conducting the Contractor's main office, or regularly established branch office, and no overhead expenses of any kind, except as specifically listed above, shall be included in the cost of the work; nor shall any interest on capital employed or on borrowed money be included in the cost of the work.
The Contractor shall take advantage to the extent of its ability of all discounts available, and when unable to take such advantage shall promptly notify the Contracting Officer of its inability and its reasons therefor.
All revenue from the operations of the commissary, hospital, or other facilities or from rebates, refunds, etc., shall be accounted for by the Contractor and applied in reduction of the cost of the work.
Article 111. Determination of Fee
As full compensation for the services of the Contractor, including profit and all general overhead expense, except as herein specifically provided, the Contracting Officer shall pay to the Contractor in the manner hereinafter prescribed a fee to be determined at the time of completion of the work from the following schedule, except as hereinafter otherwise provided:
Provided, however, That the fee upon such part of the cost of the work as is represented by payments to sub-contractors, under subdivision (b) of Article II hereof, shall in each of the above contingencies be 2 1/2 per cent and no more of the amount of such part of the cost.
The cost of materials purchased or furnished by the Contracting Officer for said work, exclusive of all freight charges thereon, shall be included in the cost of the work for the purpose of reckoning such fee to the Contractor, but for no other purpose.
The fee for reconstructing and replacing any of the work destroyed or damaged shall be such percentage of the cost thereof - not exceeding 7 per cent - as the Contracting Officer may determine.
The total fee to the contractor hereunder shall in no event exceed the sum of........, anything in this agreement to the contrary notwithstanding.
Article IV. Payments
On or about the 7th day of each month the Contracting Officer and the Contractor shall prepare a statement showing as completely as possible: (1) The cost of the work up to an including the last day of the previous month, (2) the cost of the materials furnished by the Contracting Officer up to and including such last day, and (3) an amount equal to 2 1/2 per cent., except as herein otherwise provided, of the sum of (1) and (2) on account of the Contractor's fee; and the Contractor at such time shall deliver to the Contracting Officer original signed pay rolls for labor, original invoices for materials purchased, and all other original papers not heretofore delivered supporting expenditures claimed by the Contractor to be included in the cost of the work. If there be any item or items entering into such statement upon which the Contractor and the Contracting Officer cannot agree, the decision of the contracting officer as to such disputed item or items shall govern. The Contracting Officer shall then pay to the Contractor, on or about the 9th day of each month, the cost of the work mentioned in (1) and the fee mentioned in (3) of such statement, less all previous payments. When the statement above mentioned includes any work of reconstructing and replacing work destroyed or damaged, the payment cm account of the fee in (3) for such reconstruction and replacement work shall be computed at such rate, not exceeding 2 1/2 per cent., as the Contracting Officer may determine. The statement so made and all payments made thereon shall be final and binding upon both parties hereto, except as provided in Article XIV hereof. The Contracting Officer may also make payments at more frequent intervals for the purpose of enabling the Contractor to take advantage or discounts at intervals between the dates above mentioned of for other lawful purposes. Upon final completion of said work the Contracting Officer shall pay to the Contractor the unpaid balance of the cost of the work and of the fee as determined under Articles II and III hereof.
Article V. Inspection and Audit
The Contracting Officer shall at all times be afforded proper facilities for inspection of the work and shall at all times have access to the premises, to the work and material, and to all books, records, correspondence, instructions, plans, drawings, receipts, vouchers, and memoranda of every description of the
Contractor pertaining to said work; and the Contractor shall preserve for a period of two years after its completion or cessation of work under this contract all the books, records, and other papers just mentioned. Any duly authorized representative of the Contractor shall be accorded the privilege of examining the books, records and papers of the Contracting Officer relating to said work for the purpose of checking up and verifying the cost of said work. The system of accounting to be employed by the Contractor shall be such as is satisfactory to the contracting officer.
If at any time the Contracting Officer shall find that bills for labor, material, or other bills legitimately incurred by the Contractor, hereunder are not promptly paid by the Contractor, the Contracting Officer may, in his discretion, refuse to make further payments to the Contractor until all such obligations past due shall have been paid. Should the Contractor neglect or refuse to pay such bills within five days after notice from the Contracting Officer so to do then the Contracting Officer shall have the right to pay such bills directly in which event such direct payments shall not be included in the cost of the work.
Article VI. Special Requirements
The Contractor hereby agrees that it will:
(a) Begin the work herein specified at the earliest time practicable, and diligently proceed so that such work may be completed at the earliest possible date.