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A. The United States Government shall pay to the Contractor such actual costs incurred in the performance of this contract as are determined by the United States Deputy Advisor to be allowable. Costs shall not be determined to be allowable unless reasonable and unless actually incurred by the Contractor in conformity with the provisions of this contract and charged to this contract under generally accepted accounting principles and practices. Subject to the above, the United States Government shall reimburse the Contractor for the following costs:
(1) Expenditures for reasonable salaries, wages and allowances of personnel employed by or assigned to the Center, including expenditures for personal services obtained under contracts with third parties or otherwise and reasonable supplementary allowances to personnel contributed by NATO countries in accordance with policies approved by the United States Deputy Adviser.
(2) Expenditures by the Contractor for necessary materials and services.
(3) Expenditures by the Contractor necessary for long-distance telephone calls, telegrams, cablegrams, radiograms, postage, freight, express, and drayage.
(4) Expenditures by the Contractor for the necessary travel of personnel, including subsistence allowances while on a travel status.
(5) Necessary costs incurred by the Contractor and expenses paid or reimbursed by the Contractor to employees transferred from their usual place of residence to the location or locations of the work performed under this contract, arising from the transportation of said employees, their immediate families, and their household goods and household possessions, including subsistence, in accordance with policies approved by the United States Deputy Advisor.
(6) Expenditures for necessary rearrangement or relocation of offices, facilities, or other property incident to performance of this contract.
(7) Expenditures by the Contractor for necessary protection and maintenance of Center property or of rented equipment (but expenditures for protection shall the allowable only to the extent that they are deemed by the United States Deputy Advisor to be required in addition to the security protection service furnished by the Netherlands Government).
(8) Cost of honorariums distributed to personnel for invention disclosures and patent assignments, in accordance with policies approved by the United States Deputy Advisor.
(9) Cost of bonds, insurance, and pension, retirement, group health, accident and life insurance plans, and such other insurance as the United States Deputy Advisor may from time to time direct or approve, as provided in Paragraph 14 hereof.
(10) Cost of recruiting and training personnel for the Center, in accordance with policies established by the United States Deputy Advisor.
(11) Cost of constructing, leasing, or purchasing necessary facilities or other property, real or personal (but not including land) for the Center.
(12) Expenditures by the Contractor representing payments in connection with subcontracts, including any agreement or contract made by the Contractor with any other party in carrying out this contract, or any lowertier agreement, contract or subcontract thereunder.
(13) Reasonable amounts representing the Contractor's overhead costs as may be mutually agreed upon by the Contractor and the United States Deputy Advisor.
(14) Expenditures by the Contractor for reasonable entertainment expenses in accordance with policies approved by the United States Deputy Advisor.
(15) Expenditures reasonably necessary for filing patent applications and engaging patent attorneys.
(16) Any other proper costs incurred or expenditures made by the Contractor pursuant to any of the provisions of this contract, or directed or approved by the United States Deputy Advisor; except such costs as arise from contributions and donations, general research other than research called for under this contract, interest on borrowings and other financing charges, losses on other contracts, and loss or damage not covered by insurance in accordance with Paragraph 14 below.
B. The Contractor shall exercise due diligence to secure materials and services at the most advantageous prices available, having due regard for quality, but this provision shall not operate to prevent the placing of subcontracts in appropriate cases with non-Netherlands contractors.
C. Once each month (or at more frequent intervals, if approved by the United States Deputy Advisor) the Contractor may submit to the United States Deputy Advisor, in such form and reasonable detail as he may require, a voucher supported by a statement of cost incurred by the Contractor in the performance of this contract and claimed to constitute allowable cost. Each statement of cost shall be certified by an officer or other responsible official of the Contractor authorized by it to certify such statements, and, where appropriate, by an authorized official of the Netherlands Government. To the extent such vouchers represent items of allowable cost, the United States Deputy Advisor shall promptly certify them for payment to the Contracting Officer executing this contract on behalf of the United States Government.
D. As promptly as may be practicable after receipt of each voucher by the said Contracting Officer, the United States Government shall make payment thereon. However, the United States Government shall not be obligated to pay to the Contractor for reimbursement of expenditures any amount, in excess of the estimated cost of this contract, and the Contractor shall not be required to make expenditures or to incur costs in amounts in excess of such sum. Reimbursement may be made in the currency in which the expenditure was made.
E. At any time or times prior to final payment under this contract the United States Deputy Advisor may cause to be made such audit of the vouchers and statements of cost as shall be deemed necessary. Each payment theretofore made shall be subject to reduction to the extent of amounts found by the United States Deputy Advisor not to constitute allowable cost, and shall also be subject to reduction for overpayments or to increase for underpayments on preceding vouchers.
F. The Contractor shall execute and deliver at the time of and as a condition precedent to final payment under this contract, a release discharging the United States Government, its officers, agents, and employees of and from all liabilities, obligations, and claims arising out of or under this contract, except for specified claims in stated amounts or in estimated amounts where the amounts are not susceptible of exact statement by the Contractor.
G. The Contractor agrees that any refunds, rebates, or credits (including any interest thereon) accruing to or received by the Contractor which arise out of the performance of this contract and on account of which the Contractor has received reimbursement shall be paid by the Contractor to the United States Government. The Contractor shall execute and deliver, at the time of and as a condition precedent to final payment under this contract, an assignment to the United States Government of refunds, rebates, or credits (including any interest thereon) arising out of the performance of this contract, in form and substance satisfactory to the United States Deputy Advisor. Reasonable expenses incurred by the Contractor for the purpose of securing any such refunds, rebates, or credits shall constitute allowable cost when approved by the United States Deputy Advisor.