Archived - Standard Acquisition Clauses and Conditions Manual - C - Price

The Bidder certifies that the price proposed is not in excess of the lowest price charged anyone else, including the Bidder's most favoured customer, for the like quality and quantity of the goods, services or both.

The Bidder certifies that the price proposed

1. is not in excess of the lowest price charged anyone else, including the Bidder's most favoured customer, for the like quality and quantity of the goods, services or both;
2. does not include an element of profit on the sale in excess of that normally obtained by the Bidder on the sale of goods, services or both of like quality and quantity; and
3. does not include any provision for discounts to selling agents.

The Bidder certifies that the price proposed is based on costs computed in accordance with Contract Cost Principles 1031-2, and includes an estimated amount of profit of $_____ .

The Bidder certifies that the price proposed

1. is not in excess of the lowest price charged anyone else, including the Bidder's most favoured customer, for the like quality and quantity of the goods, services or both; and
2. does not include an element of profit on the sale in excess of that normally obtained by the Bidder on the sale of goods, services or both of like quality and quantity.

The Bidder certifies that the price proposed

1. is not in excess of the lowest price charged anyone else, including the Bidder's most favoured customer, for the like quality and quantity, time, place and method of delivery of the goods;
2. does not include an element of profit on the sale in excess of that normally obtained by the Bidder on the sale of goods of like quality and quantity, time, place and method of delivery of the goods; and
3. does not include any provisions for discounts to selling agents.

The Bidder must provide, on Canada's request, one or more of the following price support, if applicable:

1. a current published price list indicating the percentage discount available to Canada; or
2. copies of paid invoices for the like quality and quantity of the goods, services or both sold to other customers; or
3. a price breakdown showing the cost of direct labour, direct materials, purchased items, engineering and plant overheads, general and administrative overhead, transportation, etc., and profit; or
4. price or rate certifications; or
5. any other supporting documentation as requested by Canada.

The Bidder certifies that the price proposed is based on costs computed in accordance with 10.40 (a) to (i) of the Supply Manual, Public Works and Government Services Canada, on the pricing of research and development contracts with universities and colleges.

The Contractor's certification that the price or rate is not in excess of the lowest price or rate charged anyone else, including the Contractor's most favoured customer, for the like quality and quantity of the goods, services or both, is subject to verification by government audit, at the discretion of Canada, before or after payment is made to the Contractor.

If the audit demonstrates that the certification is in error after payment is made to the Contractor, the Contractor must, at the discretion of Canada, make repayment to Canada in the amount found to be in excess of the lowest price or rate or authorize the retention by Canada of that amount by way of deduction from any sum of money that may be due or payable to the Contractor pursuant to the Contract.

If the audit demonstrates that the certification is in error before payment is made, the Contractor agrees that any pending invoice will be adjusted by Canada in accordance with the results of the audit. It is further agreed that if the Contract is still in effect at the time of the verification, the price or rate will be lowered in accordance with the results of the audit.

The estimated amount of profit included in the Contractor's price or rate certification is subject to audit by Canada, before or after payment is made to the Contractor under the conditions of the Contract. The purpose of the audit would be to determine whether the actual profit earned on a single contract if only one exists, or the aggregate of actual profit earned by the Contractor on a series of negotiated firm price and fixed-time rate contracts performed during a particular period selected, is reasonable and justifiable based on the estimated amount of profit included in earlier price or rate certification(s).

If the audit demonstrates that the actual profit is not reasonable and justifiable, as defined above, the Contractor must repay Canada the amount found to be in excess.

The Contractor's certification that the price quoted is based on costs computed in accordance with 10.40(a) to (i) of the Supply Manual, Public Works and Government Services Canada, on the pricing of research and development contracts with universities and colleges is subject to audit. The audit will determine if the total price charged by the Contractor on a single contract, when only one exists, or a series of negotiated firm price contracts, when more than one exists, is in accordance with the procedures.

If the audit demonstrates that the certification is in error after payment is made to the Contractor, the Contractor must, at the discretion of Canada, refund any overpayment or authorize the retention by Canada of the overpayment by way of deduction from any sum of money that may be due or payable to the Contractor pursuant to the Contract.

If the audit demonstrates that the certification is in error before payment is made, the Contractor agrees that any pending invoice will be adjusted by Canada in accordance with the results of the audit. It is further agreed that if the Contract is still in effect at the time of the verification, the price will be lowered in accordance with the results of the audit.

The Contractor will be paid its costs reasonably and properly incurred in the performance of the Work, in accordance with Contract Cost Principles 1031-2, as determined by a government audit. The results and findings of the government's audit will be conclusive.

The Contractor will be paid its costs reasonably and properly incurred in the performance of the Work, in accordance with Contract Cost Principles 1031-2, as determined by a government audit, plus a fixed fee of $_____. The results and findings of the government's audit will be conclusive.

The Contractor will be paid its costs reasonably and properly incurred in the performance of the Work, in accordance with Contract Cost Principles 1031-2, as determined by a government audit, plus a firm fee of $_____. However, in the event that the incurred cost is less than $_____ or more than $ _____, the fee will be renegotiated based on actual costs incurred in accordance with Chapter 10, Cost and Profit, of the Public Works and Government Services Canada's Supply Manual. The results and findings of the government's audit will be conclusive.

The Contractor will be paid for the Work specified in the authorized task authorization, in accordance with the Basis of payment ______ (insert "at annex ___ " OR "detailed below").

Canada's liability to the Contractor under the authorized task authorization must not exceed the (insert as applicable: "limitation of expenditure" or "ceiling price") specified in the authorized task authorization. Custom duties are ______ (insert "included", "excluded" or "subject to exemption") and Applicable Taxes are extra.

No increase in the liability of Canada or in the price of the Work specified in the authorized task authorization resulting from any design changes, modifications or interpretations of the Work will be authorized or paid to the Contractor unless these design changes, modifications or interpretations have been authorized, in writing, by the Contracting Authority before their incorporation into the Work.

(Insert details of the basis of payment if not included in an annex.)

The Contractor will be paid its costs reasonably and properly incurred in the performance of the Work, in accordance with Contract Cost Principles 1031-2, as determined by a government audit, plus a profit computed in accordance with Chapter 10, Cost and Profit, of the Supply Manual, Public Works and Government Services Canada. The results and findings of the government's audit will be conclusive.

Option 1

The Contractor will be paid for its costs reasonably and properly incurred in the performance of the Work, ______ (insert, if applicable, "and profit,") in accordance with the Basis of payment in annex _____, to a limitation of expenditure of $________ (insert the amount at contract award). Customs duties are ________ (insert "included", "excluded" or "subject to exemption") and Applicable Taxes are extra.

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 paid for its costs reasonably and properly incurred in the performance of the Work, _______ (insert, if applicable, "and a profit,") in accordance with the Basis of payment in annex ____, to a limitation of expenditure of $________(insert the amount at contract award). Customs duties are ________ (insert "included", "excluded" or "subject to exemption") and Applicable Taxes are extra.

Option 1

In consideration of the Contractor satisfactorily completing all of its obligations under the Contract, the Contractor will be paid a ________ (insert "firm price" OR "firm unit price(s) OR "firm lot price(s)", as specified in ________ insert "contract" OR "in Annex ___" for a cost of $ _________ insert the amount at contract award). Customs duties are _________ (insert "included", "excluded" OR "subject to exemption") and Applicable Taxes are extra.

Canada will not pay the Contractor for any design changes, modifications or interpretations of the Work, unless they have been approved, in writing, by the Contracting Authority before their incorporation into the Work.

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 ____ :

In consideration of the Contractor satisfactorily completing its obligations under the Contract, the Contractor will be paid a _____ , (insert "firm price" OR "firm lot price(s)") for a cost of $_______ (insert the amount at contract award). Customs duties are _____ (insert "included", "excluded" OR "subject to exemption") and Applicable Taxes are extra.

For the firm price portion of the Work only, Canada will not pay the Contractor for any design changes, modifications or interpretations of the Work unless they have been approved, in writing, by the Contracting Authority before their incorporation into the Work.

In consideration of the Contractor satisfactorily completing all of its obligations under the authorized Task Authorization (TA), the Contractor will be paid __________ , (insert "the firm lot price of $ _______ " OR "the firm unit price(s)" (insert "in accordance with the basis of payment, in Annex ___ " OR "as detailed in the Basis of Payment below"), as specified in the authorized TA. Customs duties are _________ (insert "included", "excluded" OR "subject to exemption") and Applicable Taxes are extra.

Canada will not pay the Contractor for any design changes, modifications or interpretations of the Work, unless they have been authorized, in writing, by the Contracting Authority before their incorporation into the Work.

(Insert details of the Basis of Payment for firm unit price(s) if not included in an annex).

In consideration of the Pre-contractual Work described in the Statement of Work at Annex ____ performed during the period from _____ (insert start date) up to _____ (insert date before the effective date of the Contract), the Contractor will be paid a firm price of $_____ . Customs duties are ________ (insert "included", "excluded" or "subject to exemption") and Applicable Taxes are extra.

The Contractor will be paid firm monthly rates, in arrears, as follows, for the preventive and remedial maintenance services (including parts, labour, travel and living) performed during the Principal Period of Maintenance (PPM), FOB Destination. Customs duties are _________ (insert "included" or "excluded" or "subject to exemption") and Applicable Taxes are extra.

(Insert details)

The Contractor will be paid firm hourly rates, as follows, for maintenance services performed outside of the PPM for items listed in Annex _____ , FOB Destination. Customs duties are _______ (insert "included", "excluded" or "subject to exemption") and Applicable Taxes are extra, as follows:

(Insert details)

Travel and Living Expenses

The Contractor will be reimbursed for the authorized travel and living expenses reasonably and properly incurred in the performance of the Work, at cost, without any allowance for overhead or profit, in accordance with the meal and private vehicle allowances specified in Appendices B, C and D of the National Joint Council Travel Directive , and with the other provisions of the directive referring to "travellers", rather than those referring to "employees". Canada will not pay the Contractor any incidental expense allowance for authorized travel.

All travel must have the prior authorization of the ________ (insert "Technical" or "Project" or "Contracting") Authority. All payments are subject to government audit.

Estimated Cost: $ ________

Total Estimated Cost - Limitation of Expenditure: $ __________ (Applicable Taxes extra)

The Contractor will be paid as follows for on-site maintenance and related services performed during and outside the Principal Period of Maintenance for the equipment listed in Annex _____ .

Labour

The Contractor will be paid for the actual hours worked at the firm hourly rates detailed below. The Contractor will be paid an initial half hour minimum charge calculated from the time the Contractor's technician arrives on-site. All additional chargeable time, over and above the first half hour, will be rounded to the nearest quarter hour.

__________________________ (Insert details)

Material and Replacement Parts

The material and replacement parts must be provided at the list price detailed in Annex _____ , less a discount of ____ percent. All prices for parts and material are FOB destination. Customs duties are ________ (insert "included", "excluded" or "subject to exemption") and Applicable Taxes are extra.

On-call Services (Wait-Time)

The Contractor will be paid for the actual hours of on-call period (wait time) at the firm hourly rate of $_____ .

Travel and Living Expenses

There will be no travel time or travel and living expenses payable for services rendered within ____ kilometres from the Designated Service Centre listed in Annex _____ .

For services rendered further than ____ kilometres from the Designated Service Centre, the Contractor will be paid its actual travel time in accordance with the hourly rates detailed in Annex ____ .

The Contractor will be reimbursed for the authorized travel and living expenses reasonably and properly incurred in the performance of the Work, at cost, without any allowance for overhead or profit, in accordance with the meal and private vehicle expense allowances specified in Appendices B, C and D of the National Joint Council Travel Directive, and with the other provisions of the directive referring to "travellers", rather than those referring to "employees". Canada will not pay the Contractor any incidental expense allowance for authorized travel.

All travel must have the prior authorization of the _________ (insert "Technical" or "Project" or "Contracting") Authority.

Estimated Cost: ________.

Total Estimated Cost - Limitation of Expenditure: ___________ (Applicable Taxes extra)

Professional Fees

In consideration of the Contractor satisfactorily completing all of its obligations under the Contract, the Contractor will be paid a firm price of $ ______ (insert amount at contract award). Customs duties are ___________ (insert "included", "excluded" or "are subject to exemption") and Applicable Taxes are extra.

Travel and Living Expenses

The Contractor will be reimbursed for the authorized travel and living expenses reasonably and properly incurred in the performance of the Work, at cost, without any allowance for overhead or profit, in accordance with the meal and private vehicle allowances specified in Appendices B, C and D of the National Joint Council Travel Directive, and with the other provisions of the directive referring to "travellers", rather than those referring to "employees". Canada will not pay the Contractor any incidental expense allowance for authorized travel.

All travel must have the prior authorization of the ________ (insert "Technical" or "Project" or "Contracting") Authority. All payments are subject to government audit.

Estimated Cost: $ _______

Other Direct Expenses

The Contractor will be reimbursed for the direct expenses reasonably and properly incurred in the performance of the Work. These expenses will be paid at actual cost without mark-up, upon submission of an itemized statement supported by receipt vouchers.

Estimated Cost: $_________

Total Estimated Contract Price : __________ (insert the sum of the firm price and the limitation of expenditure), Applicable Taxes extra.

Option to Extend the Contract

During the extended period of the Contract, the Contractor will be paid the firm price of $ _____ (insert amount at contract award) to perform all the Work in relation to the contract extension.

The Contractor will be paid firm hourly rates as follows, for work performed in accordance with the Contract. Customs duties are __________ (insert "included", "excluded" or "subject to exemption") and Applicable Taxes are extra.

Total Estimated Cost: $______

Travel and Living Expenses

The Contractor will be reimbursed for the authorized travel and living expenses reasonably and properly incurred in the performance of the Work, at cost, without any allowance for overhead or profit, in accordance with the meal and private vehicle allowances specified in Appendices B, C and D of the National Joint Council Travel Directive, and with the other provisions of the directive referring to "travellers", rather than those referring to "employees". Canada will not pay the Contractor any incidental expense allowance for authorized travel.

All travel must have the prior authorization of the ________ (insert "Technical" or "Project" or "Contracting") Authority. All payments are subject to government audit.

Estimated cost: $_____

Other Direct Expenses

The Contractor will be reimbursed for the direct expenses reasonably and properly incurred in the performance of the Work. These expenses will be paid at actual cost without mark-up, upon submission of an itemized statement supported by receipt vouchers.

Estimated cost: $ _________

Total Estimated Cost - Limitation of Expenditure: ______________ (Applicable Taxes extra.)

Instruction to contracting officers: Insert the following paragraph when the contract contains an option to extend the contract.

Option to Extend the Contract

During the extended period of the Contract, the Contractor will be paid the following firm hourly rates to perform all the Work in relation to the contract extension.

Instruction to contracting officers: complete and insert one of the following options:

Option 1

The Contractor will be paid for the Work performed, in accordance with the Basis of payment at annex _____, to a limitation of expenditure of $________ (insert the amount at contract award). Customs duties are ________ (insert included", "excluded" or "subject to exemption") and Applicable Taxes are extra.

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") at annex ____:

The Contractor will be paid for the Work performed in accordance with the Basis of payment at annex _______, to a limitation of expenditure of $________ (insert the amount at contract award). Customs duties are ________ (insert "included", "excluded" or "subject to exemption") and Applicable Taxes are extra.

1. Upon completion of the Contract or annually for multi-year contracts spanning more than one contractor fiscal year, the Contractor must complete the form PWGSC-TPSGC 7953 (PDF 87KB) - (Help on File Formats), Contractors Cost Submission, and forward three (3) copies to the Contracting Authority. Costs will be computed in accordance with Contract Cost Principles 1031-2.
2. The cost submission must contain a breakdown of all applicable cost elements as detailed in the Contract and must be signed and certified accurate by the Contractor's Senior Financial Officer, unless stated otherwise in writing by the Contracting Authority.
3. Supporting information for each cost element must be available in sufficient detail to allow for an in-depth audit.

1. If requested by the Contracting Authority or auditor designated by the Contracting Authority, the Contractor must submit to the Contracting Authority or the auditor as applicable, a cost submission, upon completion of the Contract or annually for multi-year contracts spanning more than one contractor fiscal year.
2. The cost submission must contain a breakdown of all applicable cost elements as detailed in the Contract and must be signed and certified accurate by the Contractor's Senior Financial Officer, unless stated otherwise in writing.
3. Supporting information for each cost element must be available in sufficient detail to allow for an in-depth audit.

The Contractor will not be paid for any cost incurred before the effective date of the Contract unless it is expressly provided for in the Contract.

1. If requested by the Contracting Authority or auditor designated by the Contracting Authority, the Contractor must submit to the Contracting Authority or the auditor as applicable, a cost submission, upon completion of the Contract or annually for multi-year contracts spanning more than one contractor fiscal year.
2. The cost submission must contain a breakdown of all applicable cost elements as detailed in the Contract and must be signed and certified accurate by the Contractor's Senior Financial Officer, unless stated otherwise in writing by the Contracting Authority.
3. Supporting information must be available in sufficient detail for each cost element to allow for an in-depth audit.

Prices are as listed in the Contractor's regular, seasonal and sale catalogues or current published price lists, less a discount of _____ percent.

The Contractor must provide Canada with any further price reductions in effect as a result of a special offering due to year end or surplus manufacturing runs, special job lots, sales, clearances or promotions.

The following costs must be included in the evaluation price:

1. Services: include all costs for ship services such as water, steam, electricity, etc., required for vessel maintenance for the duration of the Contract.
   This price must be firm and is subject to increase only if the period of the Contract is extended with the approval of the Contracting Authority.
2. Docking and Undocking include:
   1. all costs resulting from drydocking, wharfage, security, shoring, shifting and/or moving of the vessel within the successful Bidder's facility;
   2. the cost of services to tie up the vessel alongside and to cast off.
   Unless specified otherwise, the vessel will be delivered by Canada to the successful Bidder's facility alongside a mutually agreed safe transfer point, afloat and upright, and the successful Bidder will do the same when the Work is completed. The cost of services to tie up the vessel alongside and to cast off must be included in the evaluation price.
3. Field Service Representatives/Supervisory Services: include all costs for field service representatives/supervisory services including manufacturers' representatives, engineers, etc.
   These services must not be an extra charge except where unscheduled work requiring these services is added to the Contract.
4. Removals: include all costs for removals necessary to carry out the Work and will be the responsibility of the successful Bidder whether or not they are identified in the specifications, except those removals not apparent when viewing the vessel or examining the drawings. The successful Bidder will also be responsible for safe storage of removed items and reinstalling them on completion of the Work. The successful Bidder will be responsible for renewal of components damaged during removal.
5. Sheltering, Staging, Cranage and Transportation: include the cost of all sheltering, staging including handrails, cranage and transportation to carry out the Work as specified.
   The successful Bidder will be responsible for the cost of any necessary modification of these facilities to meet applicable safety regulations.

In any vessel refit, repair or docking contract, unscheduled work will arise after the vessel and its equipment is opened up and surveyed. The anticipated cost of the Work will be included in the evaluation of bids. The overall total cost will be calculated by including an estimated amount of additional person-hours (and/or material) multiplied by a firm hourly charge-out labour rate and is added to the firm price for the Work.

The overall total referred to as the "Evaluation Price" will be used for evaluating the bids. The estimated work will be based on historical experience and there is no minimum or maximum amount of unscheduled work nor is there a guarantee of such work.

1. The Contractor must not perform any overtime under the Contract unless authorized in advance and in writing by the Contracting Authority. Any request for payment must be accompanied by a copy of the overtime authorization and a report containing the details of the overtime performed pursuant to the written authorization. Payment for authorized overtime will be calculated as follows:
   1. For known work, the Contractor will be paid the Contract Price plus authorized overtime hours paid at the following premium rates:
      For time and one half: $_________ per hour, or
      For double time: $__________ per hour.
   2. For unscheduled work, the Contractor will be paid the authorized overtime hours at the quoted charge-out labour rate, plus the following premium rates:
      For time and one half: $_________ per hour, or
      For double time: $__________ per hour.
2. The above premiums will be calculated by taking the average hourly direct labour rate premiums, plus certified fringe benefit, plus profit of 7.5 percent on labour premium and fringe benefits. These rates will remain firm for the duration of the Contract, including all amendments and are subject to audit if considered necessary by Canada.

The Contractor must not perform any overtime under the Contract unless authorized in advance and in writing by the Contracting Authority. Any request for payment must be accompanied by a copy of the overtime authorization and a report containing the details of the overtime performed pursuant to the written authorization. Payment for authorized overtime will be calculated as follows:

(Insert details for calculation.)

The Bidder certifies that the rate proposed:

1. is not in excess of the lowest rate charged anyone else, including the Bidder's most favoured customer, for the like quality and quantity of the service;
2. does not include an element of profit on the sale in excess of that normally obtained by the Bidder on the sale of services of like quality and quantity, and
3. does not include any provision for discounts to selling agents.

The Bidder certifies that the rate proposed is based on costs computed in accordance with Contract Cost Principles 1031-2, and includes an estimated amount of profit of $ ____ .

1. The prices detailed in the Contract are subject to upward or downward adjustment, according to changes at time of delivery, to allow for:
   1. changes due to price adjustment in metal products that are a direct result of increased or decreased current base price imposed by the applicable metals commodity market. A copy of the Contractor's notification of base price increase or decrease from the metal producer must be provided to the Contracting Authority; and/or
   2. imposition of any new or changes to any existing levies, tariffs or fees of whatsoever nature applicable to any metal product, authorized, imposed or agreed to by Canada or any provincial government or by any Governmental Regulatory Authority.
2. The contract price will be amended to reflect the actual increase or decrease at time of delivery. The Contractor must not invoice at prices other than those specified in the Contract.

1. The following are subject to government audit before or after payment is made:
   1. The amount claimed under the Contract, as computed in accordance with the Basis of Payment, including time charged.
   2. The accuracy of the Contractor's time recording system.
   3. The estimated amount of profit in any firm-priced element, firm time rate, firm overhead rate, or firm salary multiplier, for which the Contractor has provided the appropriate certification. The purpose of the audit is to determine whether the actual profit earned on a single contract if only one exists, or the aggregate of actual profit earned by the Contractor on a series of negotiated contracts containing one or more of the prices, time rates or multipliers mentioned above, during a particular period selected, is reasonable and justifiable based on the estimated amount of profit included in earlier price or rate certification(s).
   4. Any firm-priced element, firm time rate, firm overhead rate, or firm salary multiplier for which the Contractor has provided a "most favoured customer" certification. The purpose of such audit is to determine whether the Contractor has charged anyone else, including the Contractor's most favoured customer, lower prices, rates or multipliers, for like quality and quantity of goods or services.
2. Any payments made pending completion of the audit must be regarded as interim payments only and must be adjusted to the extent necessary to reflect the results of the said audit. If there has been any overpayment, the Contractor must repay Canada the amount found to be in excess.

Time charged and the contract price of incidental materials used are subject to verification by Canada, before or after payment is made to the Contractor. If verification is done after payment, the Contractor must repay any overpayment, at Canada's request.

Time charged and the accuracy of the Contractor's time recording system are subject to verification by Canada, before or after payment is made to the Contractor. If verification is done after payment, the Contractor must repay any overpayment, at Canada's request.

The Contractor will be paid firm monthly rates for rental and firm rates per specified number of copies for maintenance (covering all parts, labour, preventive and remedial maintenance), payable each month in arrears. Customs duties are _________ (insert "included", "excluded" or "subject to exemption") and Applicable Taxes are extra.

Bidders must quote prices on a straight-line basis for the rental of photocopiers, that is, fixed monthly rental rate (not to include copies) and a fixed cost per copy (meter click) charge for each model of equipment offered using the average monthly volume.

1. Price Breakdown:
   The Contractor must, upon request, provide a price breakdown for all unscheduled work, by specific activities with trades, person-hours, material, subcontracts and services.
2. Pro-rated Prices:
   Hours and prices for unscheduled work will be based on comparable historical data applicable to similar work at the same facility, or will be determined by pro-rating the quoted work costs in the Contract when in similar areas of the vessel.
3. Payment for Unscheduled Work:
   The Contractor will be paid for unscheduled work arising, as authorized by Canada. The authorized unscheduled work will be calculated as follows:
   Number of hours (to be negotiated) x $_____ , being the Contractor's firm hourly charge-out labour rate which includes overhead and profit, plus net laid-down cost of materials to which will be added a mark-up of 10 percent, plus Applicable Taxes. The firm hourly charge-out labour rate and the material mark-up will remain firm for the term of the Contract and any subsequent amendments.

Option 1

The Contractor will be paid for its costs reasonably and properly incurred in the performance of the Work, plus _________ (insert "a fixed fee," or "a profit,") in accordance with the Basis of payment ________ (insert "at annex ____ " or "detailed below"), 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.

(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") at Annex ____ :

The Contractor will be paid for its costs reasonably and properly incurred in the performance of the Work, plus _________ (insert "a fixed fee," or "a profit,") in accordance with the Basis of payment ________ (insert "in Annex ____ " or "detailed below"), 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.

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

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.)

The Contractor will be paid its costs reasonably and properly incurred in the performance of the Work, in accordance with Contract Cost Principles 1031-2, as determined by a government audit, ______ (insert, if applicable: "plus a fixed profit of _____ percent of the audited costs)". The results and findings of the government's audit will be conclusive.

Option 1

The Contractor will be paid for the Work performed in accordance with the Basis of payment ________ (insert "at annex ____ " or "detailed below"), 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.

(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") at annex ____ :

The Contractor will be paid for the Work performed in accordance with the Basis of payment ________ (insert "at annex ____ " or "detailed below"), 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.

(Insert details of the basis of payment if not included in an annex.)

Unless specified otherwise in the Contract, the price includes no amount for any federal excise tax, state or local sales or use tax, or any other tax of a similar nature, or any Canadian tax whatsoever. The price, however, includes all other taxes. If the Work is normally subject to federal excise tax, Canada will, upon request, provide the Contractor a certificate of exemption from such federal excise tax in the form prescribed by the federal regulations.

Canada will provide the Contractor evidence of export that may be requested by the tax authorities. If, as a result of Canada's failure to do so, the Contractor has to pay federal excise tax, Canada will reimburse the Contractor if the Contractor takes such steps as Canada may require to recover any payment made by the Contractor. The Contractor must refund to Canada any amount so recovered.

The Contract Price does not include any duties and/or taxes required to be paid on imported goods to be delivered to Canada under the Contract and that will be exported by Canada.

Canada waives to the Contractor all its rights of drawback accruing in connection with the Contract pursuant to the Goods Imported and Exported Refund and Drawback Regulations and the Canada Border Services Agency (CBSA) Memorandum D7-3-8, Goods Purchased by Canadian Government Departments.

Canada will provide upon request from the Contractor a Drawback Certificate which will enable the Contractor to claim duties drawback from CBSA.

The Contractor must inform the Contracting Authority of all customs duties and of all sales, consumption, use, excise, personal property or any other taxes the Contractor proposes to pay or not to pay. The Contractor must carry out any instructions the Contracting Authority may give in respect of payment or non-payment of these taxes.

Provincial fuel tax is not applicable to propane when used for heating or power generation purposes and is excluded from the Contract Price.

The goods described in the Contract constitute apparatus, utensils, instruments and related parts, other than glassware, and are for use directly in research by National Research Council Canada. They are exempt from customs duties under tariff item No. 9988.00.00 and Customs Ruling No. 153418, dated 15 September 1998.

The goods described in the Contract are of a class or kind enumerated in Customs Tariff, Schedule II, Annex Code 1760, and are exempt from customs duties. The goods are for use directly in _____ by _____ (Authority No. _____) .

The Contractor is responsible for customs clearance of any tools, equipment or spare parts imported into Canada by its employees or a subcontractor and its employees for use in performing the Work under the Contract. The Contractor is responsible for any customs duties, excise taxes and Applicable Taxes, assessed by the customs officials and payable to the Canada Border Services Agency.

Canadian customs duties and sales tax, if applicable, are extra to the Contract Price and payable by Canada.

Canadian customs duties and excise taxes are not applicable. The goods described in the Contract are of a class or kind classed as exempt from customs duties and excise taxes under tariff item No. _____ .

General

1. The Contractor must provide two (2) copies of the Canada Customs Invoice (CCI) or two (2) copies of the commercial invoice marked "For Customs Purposes Only".
2. Shipments from the United States and Mexico that are of American, Mexican or Canadian origin, as defined by the Canada-United States-Mexico Agreement (CUSMA):
   1. For goods valued at more than USD$1,000, the Contractor must provide a certification of origin of the goods that demonstrate that the good is originating. This may be provided on the commercial invoice or any other document and does not need to follow a prescribed format, but must:
      1. Describe the originating good in sufficient detail to enable its identification;
      2. Meet the requirements as set out in the Uniform Regulations for Rules of Origin; and
      3. Contain a set of minimum data elements as described in Annex 5-A (Chapter 5 of CUSMA) that indicate that the good is both originating and meets the requirements of Chapter 5.
   2. For goods valued at USD$1,000 or less, the proof must be a statement on the invoice certifying that the good qualifies as an originating good.
   In either case, an original signature and a reference to the contract number must be included in the document. For contracts valued at C$250,000 or more, the certification of origin will not be required. If applicable, the exchange rate to be used to determine the value of goods in USD is the exchange rate on the Direct Shipment Date, which is the date the shipment starts its direct journey to the Buyer.
3. For shipments from Israel that are Israeli in origin, as defined by the Canada-Israel Free Trade Agreement (CIFTA), the Contractor must provide the certification of origin of the goods. This proof must be in the form of a CIFTA Certificate of Origin for goods valued at more than C$1,600, or for goods valued at C$1,600 or less, a statement on the invoice certifying that the good qualifies as an originating good. In either case, an original signature and a reference to the contract number must be included in the document. For contracts valued at C$250,000 or more, the proof of origin will not be required.
4. The Contractor must not employ commercial customs brokers to custom clear the goods provided under the Contract, unless authorized by the Canadian Material Support Group / Customs, at National Defence Headquarters, telephone: 1-855-210-5149, facsimile: 1-800-306-1811 or 613-971-7333.

Completion of Documents

The CCI or commercial invoice must include the following information:

1. complete description of the goods being shipped, including the applicable United States "Schedule B" codes or United States Harmonized Tariff Schedule codes;
2. value and terms of sale for each item (e.g. sale, loan, warranty, Incoterms 2000), including value of repairs, warranty repairs or replacement costs;
3. the Contract number and financial codes (use Field 3 on the CCI form);
4. country of origin of goods; and
5. one of the following:
   1. when a CUSMA Certification of Origin/CIFTA Certificate of Origin has been prepared, a statement in the "Description" field of the CCI or commercial invoice confirming that the CUSMA Certification of Origin/CIFTA Certificate of Origin has been completed and is attached to the CCI or commercial invoice; or
   2. when a CUSMA Certification of Origin/CIFTA Certificate of Origin was not required, a statement in the "Description" field of the CCI or commercial invoice certifying that the good qualifies as an originating good.

Distribution of Documents

1. The Contractor must attach one (1) copy of the CCI or one (1) copy of the commercial invoice, as applicable, to shipping container No. 1 of all shipments using a waterproof envelope marked "Canada Customs Documentation".
2. The second copy of each of the above-mentioned forms must be attached to the shipping documents.
3. A copy of the CIFTA Certificate of Origin must be faxed to 1-800-306-1811 or emailed to DNDCustoms-MDNDouanes@forces.gc.ca.

1. As the goods to be supplied under the Contract are defence supplies, customs duties on importation to Canada may be remitted under the Tariff Item Number 9982.00.00 of the Schedule to the Customs Tariff.
2. Remission of customs duties payable may be granted under the Tariff Item Number 9982.00.00 when the total contract value of the defence supplies is C$250,000 or more. This reflects the import value of the goods plus the duty that would be applicable in the absence of the Customs Tariff.
3. The Department of National Defence (DND) will be responsible for prearranging remission on importation or for paying customs duties on importation and applying to Canada Border Services Agency for a refund. DND is also responsible for applying to Public Works and Government Services Canada in good time for the certification required by the Customs Tariff.

1. As the goods to be supplied under the Contract are defence supplies, customs duties on importation to Canada may be remitted under the Tariff Item Number 9982.00.00 of the Schedule to the Customs Tariff.
2. Remission of customs duties payable may be granted under the Tariff Item Number 9982.00.00 when the total contract value of the defence supplies is C$250,000 or more. This reflects the import value of the goods plus the duty that would be applicable in the absence of the Customs Tariff.
3. The Contractor will be responsible for pre-arranging remission on importation or for paying customs duties on importation and applying to Canada Border Services Agency for a refund. The Contractor is also responsible for applying to Public Works and Governments Services Canada in good time for the certification required by the Customs Tariff.

Canada is a participant in the United States Defense Priorities and Allocations System and this defence contract is eligible for a priority rating. The Defence Priorities and Allocations Officer, Public Works and Government Services Canada, must advise the Contractor as to the appropriate priority rating within sixty (60) days of the date of the Contract.

1. The Contract concerns a Canadian defence requirement and therefore is eligible to be assigned a "United States Priority Rating" for any materials/services imported from the United States which may be required in the performance of the Work. Accordingly, the Contractor must:
   1. make an application to the Defence Priorities and Allocations Officer, Public Works and Government Services Canada (PWGSC), by email at: TPSGC.PAPrioritesdedefense-APDefencePriorities.PWGSC@tpsgc-pwgsc.gc.ca
   2. include this clause in subcontracts with Canadian-based contractors, and quote the PWGSC Contract Number indicated in the Contract.
2. Failure to comply with the above may impact on the Contractor's delivery commitments. Therefore, the Contractor is responsible for any breach of the Contract that arises from such a failure.

The goods to be purchased under the Contract are for export. The Bidder certifies that the price(s) quoted in its bid do not contain any element representing refundable duties and/or taxes paid on the import of materials, parts and components incorporated in the goods.

1. The Bidder may request Canada to assume the risks and benefits of exchange rate fluctuations. If the Bidder claims for an exchange rate adjustment, this request must be clearly indicated in the bid at time of bidding. The Bidder must submit form PWGSC-TPSGC 450, Claim for Exchange Rate Adjustments with its bid, indicating the Foreign Currency Component (FCC) in Canadian dollars for each line item for which an exchange rate adjustment is required.
2. The FCC is defined as the portion of the price or rate that will be directly affected by exchange rate fluctuations. The FCC should include all related taxes, duties and other costs paid by the Bidder and which are to be included in the adjustment amount.
3. The total price paid by Canada on each invoice will be adjusted at the time of payment, based on the FCC and the exchange rate fluctuation provision in the contract. The exchange rate adjustment will only be applied where the exchange rate fluctuation is greater than 2% (increase or decrease).
4. At time of bidding, the Bidder must complete columns (1) to (4) on form PWGSC-TPSGC 450, for each line item where they want to invoke the exchange rate fluctuation provision. Where bids are evaluated in Canadian dollars, the dollar values provided in column (3) should also be in Canadian dollars, so that the adjustment amount is in the same currency as the payment.
5. Alternate rates or calculations proposed by the Bidder will not be accepted for the purposes of this exchange rate fluctuation provision.

The requirement does not offer exchange rate fluctuation risk mitigation. Requests for exchange rate fluctuation risk mitigation will not be considered. All bids including such provision will render the bid non-responsive.

1. The foreign currency component (FCC) is defined as the portion of the price or rate that will be directly affected by exchange rate fluctuation. The FCC should include all related taxes, duties and other costs paid by the Bidder and which are to be included in the adjustment amount.
2. For each line item where a FCC is identified, Canada assumes the risks and benefits for exchange rate fluctuation, as shown in the Basis of Payment. For such items, the exchange rate fluctuation amount is determined in accordance with the provision of this clause.
3. The total price paid by Canada on each invoice will be adjusted at the time of payment. The exchange rate adjustment amount will be calculated in accordance with the following formula:
   Exchange rate adjustment = FCC x Qty x ( i₁ - i₀ ) / i₀
   where formula variables correspond to:

   FCC

   Foreign currency component (per unit)

   Qty

   quantity of units

   i₀

   Initial exchange rate (CAN$ per unit of foreign currency [for example US$1]).
   The initial exchange rate is set as the Bank of Canada rate on the solicitation closing date. The Bank of Canada publishes its rates each business day by 16:30 Eastern Time.

   i₁

   Exchange rate for adjustments (ERA) (CAN$ per unit of foreign currency [for example US$1]). The Bank of Canada publishes its rates each business day by 16:30 Eastern Time.

   1. The ERA for goods will be the Bank of Canada rate on the date the goods were delivered.
   2. The ERA for services will be the Bank of Canada rate on the last business day of the month for which the services were performed.
   3. The ERA for advance payments will be the Bank of Canada rate on the last business day prior to the payment. The last published business day rate will be used for non-business days.

4. The Contractor must indicate the total exchange rate adjustment amounts (whether they are upward, downward or present no change) as a separate item on each invoice or claim for payment submitted under the Contract. Where an adjustment applies, the Contractor must submit with their invoice form PWGSC-TPSGC 450, Claim for Exchange Rate Adjustments.
5. The exchange rate adjustment will only impact the payment to be made by Canada where the exchange rate fluctuation is greater than 2% (increase or decrease), calculated in accordance with column 8 of form PWGSC-TPSGC 450 (that is [ i₁ - i₀ ) / i₀]).
6. Canada reserves the right to audit any revision to costs and prices under this clause.