Materials and Contracts. (i) Allowable costs of direct materials shall be determined by Princeton University. Reasonable and allocable material handling costs may be included in the charge for material to the extent they are clearly excluded from the hourly rate. Material handling costs are comprised of indirect costs, including, when appropriate, general administrative expense allocated to direct materials in accordance with the Contractor's usual accounting practices. The Contractor shall be reimbursed for items and services purchased directly for the Contract only when cash, checks, or other forms of actual payment have been made for such purchased items or services. Direct materials, as used in this Clause, are those materials that enter directly into the end product, or that are used or consumed directly in connection with the furnishing of the end product.
(ii) The cost of lower-tier contracts that are authorized under this Contract shall be reimbursable costs under this clause provided that the costs are consistent with subparagraph (3). Reimbursable in connection with lower-tier contracts shall be limited to the amounts paid to the Contractor in the same manner as for items and services purchased directly for the Contract under paragraph (l).
(iii) To the extent possible, the Contractor shall-- • Obtain materials at the most advantageous prices available with due regard to securing prompt delivery of satisfactory material. • Take all cash and trade discounts, rebates, allowances, credits, salvage, commissions, and other benefits. When unable to take advantage of the benefits, the Contractor shall promptly notify Princeton University and give the reasons. Credit shall be given to Princeton University for cash and trade discounts, rebates, allowances, credits, salvage, the value of any appreciable scrap, commissions, and other amounts that have accrued to the benefit of the Contractor, or would have accrued except for the fault or neglect of the Contractor. The benefits lost without fault or neglect on the part of the Contractor, or lost through fault of Princeton University, shall not be deducted from gross costs.
Materials and Contracts. (1) Allowable costs of direct materials shall be determined by Princeton University. Reasonable and allocable material handling costs may be included in the charge for material to the extent they are clearly excluded from the hourly rate. Material handling costs are comprised of indirect costs, including, when appropriate, general administrative expense allocated to direct materials in accordance with the Contractor's usual accounting practices. The Contractor shall be reimbursed for items and services purchased directly for the Contract only when cash, checks, or other forms of actual payment have been made for such purchased items or services. Direct materials, as used in this clause, are those materials which enter directly into the end product, or which are used or consumed directly in connection with the furnishing of the end product.
