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Contingent Fees - Contract Requirements

FMS: 
Yes
BPC: 
No
Note Input Responsibility: 
CWD
Note Usage: 

Mandatory for FMS LOAs for Saudi Arabia, Australia, Egypt, Greece, Israel, Japan, Jordan, Korea, Kuwait, Pakistan, Philippines, Taiwan, Thailand, Turkey, and the Venezuelan Air Force when the LOA includes procurement lines.

Mandatory for Amendments and Modifications for these countries that add procurement lines to a case that previously included only items from stock.

References : 
Note Text : 
  1. For Saudi Arabia:

    "All U.S. Government contracts resulting from this Letter of Offer and Acceptance must contain one of the following provisions, unless laws of the Kingdom of Saudi Arabia call for prescribing sales commissions or agents' fees, and payment thereof is approved in writing by the purchaser before contract award:

    1. For firm fixed-price contracts or fixed-price contracts with economic price adjustment:

      The contractor certifies that the contract price (including any subcontracts awarded hereunder) does not include any direct or indirect costs of sales commissions or fees for contractor sales representatives for the solicitation or promotion or otherwise to secure the conclusion of the sale of any of the supplies or services called for by this contract to [insert country].

    2. For all other types of contracts:

      Notwithstanding any other provision of this contract, any direct or indirect costs of sales commissions or fees for contractor (or subcontractor) sales representatives for the solicitation or promotion or otherwise to secure the conclusion of the sale of any of the supplies or services called for by this contract to [insert country] will be considered as an unallowable item of cost under this contract."

  2. For Australia, Egypt, Greece, Israel, Japan, Jordan, Korea (Republic of), Kuwait, Pakistan, Philippines, Taiwan, Thailand, Turkey, and the Venezuelan Air Force:

    "All U.S. Government contracts resulting from this Letter of Offer and Acceptance must contain one of the following provisions, unless the sales commission and fee have been identified and payment thereof approved in writing by [insert country] before contract award:

    1. For firm fixed-price contracts or fixed-price contracts with economic price adjustment:

      The contractor certifies that the contract price (including any subcontracts awarded hereunder) does not include any direct or indirect costs of sales commissions or fees for contractor sales representatives for the solicitation or promotion or otherwise to secure the conclusion of the sale of any of the supplies or services called for by this contract to [insert country].

    2. For all other types of contacts:

      Notwithstanding any other provision of this contract, any direct or indirect costs of sales commissions or fees for contractor (or subcontractor) sales representatives for the solicitation or promotion or otherwise to secure the conclusion of the sale of any of the supplies or services called for by this contract to [insert country] will be considered as an unallowable item of cost under this contract."