Laserfiche WebLink
(a) If the subcontract is price related, the reimbursable cost of the subcontract shall be the share of <br />payments to the subcontractor which equals the usual charge or the customary charge, whichever is <br />less. If the subcontractor has only departmental clients, the reimbursable cost shall be the share of <br />payments to the subcontractor which equal the customary charge. <br />(b) If the subcontract is cost related, the reimbursable cost of the subcontract shall be the share of <br />payments to the subcontractor for subcontractor costs which are necessary for the proper and efficient <br />performance of the contract, are reasonable and allocable to the subcontract and are allowable under <br />the provisions of this exhibit. If the cost -related subcontractor is a for-profit entity, reimbursable costs <br />may also include payments for ordinary profit, provided such profit is computed on a basis other than a <br />percentage of contract costs. Costs used to determine subcontract payments may be either actual <br />costs during the contract period or estimated costs for the contract period based on actual costs in a <br />prior period, and may be either costs of the subcontractor or costs of a class or subclass of facilities <br />providing similar services, activities or procedures. <br />(c) If the subcontract is fee for service, the reimbursable cost of the subcontract shall be the share of the <br />payments based on an established rate structure set by laws, regulation or policy, or may be based on <br />cost information provided by the contractor during a competitive solicitation or contract negotiations. <br />SUL <br />(1) A cost is reasonable if, in its nature and amount, it does not exceed that which would be incurred by a prudent <br />and reasonable person under circumstances prevailing at the time the decision was made to incur the cost. <br />(2) In determining the reasonableness of a given cost, the following shall be given careful consideration: <br />(a) Whether the cost is of a type generally recognized as ordinary and necessary for the operation of <br />the contractor or the performance of the contract. <br />Whether the cost was incurred after the contractor complied with sound business practices, including <br />arm's length bargaining. <br />(b) Whether the contractor acted with prudence in the circumstances considering its responsibilitiesto the <br />organization, its members, employees, clients, the public at large, and the Department. <br />(c) Whether the contractor deviated from established practices of the contractor, which may <br />unjustifiably increase the cost. <br />ALLOCABLE COSTS <br />(1) A cost is allocable to the contract if all of the following conditions are met: <br />(a) It is assignable or chargeable to the contract in accordance with the relative benefit received <br />because either: <br />(i) It was incurred specifically and solely for the performance of the contract; or <br />(ii) It benefits both contract and non -contract objectives and can be distributed between them in <br />reasonable proportion to the benefits received; or <br />(iii) It is necessary for the overall operation of the contractor even if a direct relationship to the <br />contract cannot be shown. <br />Washington State Page 80 HCA Contract No K3924 <br />Health Care Authority <br />