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<br />The City of San Marcos Facilities Service Contract <br /> <br />by the City. Cost Substantiation shall also be required where the parties agree that the <br />Company shall perform work on a cost-plus basis. <br />(C) Cost Substantiation Documentation. Any documentation delivered <br />hereunder to substantiate cost shall include the amount of such cost, shall describe the <br />competitive or other process utilized by the Company to obtain the fair market price, and shall <br />state that such services and materials are reasonably required pursuant to this Service <br />Contract. The Cost Substantiation documentation shall be accompanied by copies of such <br />documentation as shall be necessary to reasonably demonstrate that the costs for which Cost <br />Substantiation is required have been paid or incurred. Such documentation shall be in a <br />format and include content reasonably acceptable to the City. The Company's entitlement to <br />reimbursement of Cost Substantiated costs of the Company shall be subject to the limitations <br />set forth in this Section. <br />(D) Technical Services. Company personnel and personnel of <br />Subcontractors providing technical services shall be billed at their then currently applicable <br />rates for similar services on projects of similar size and scope to the Contract Services. The <br />Company shall use commercially reasonable efforts to use available Company personnel for <br />additional work hereunder before using Subcontractors. <br />(E) Mark-Up. On all costs incurred by the Company for work performed <br />directly by the Company which are subject to Cost Substantiation, the Company shall be <br />entitled to recover its direct expenses, including labor costs, plus a 20% allocation for <br />overhead. The price payable to all Subcontractors, including Subcontractor overhead and <br />mark-ups for risk and profit, shall be commercially reasonable. <br />(F) Evidence of Costs Incurred. To the extent reasonably necessary to <br />confirm direct costs required to be Cost Substantiated, copies of timesheets, invoices, canceled <br />checks, expense reports, receipts and other documents, as appropriate, shall be delivered to <br />the City with the request for reimbursement of such costs. <br />SECTION 15.8. SUHCONTRACTORS. (A) Use Restricted. The Company shall <br />operate the Facilities with its own employees and fully in accordance with the requirements of <br />Article V. Subcontractors may be used to perform other Contract Services, subject to the City's <br />right of approval set forth in subsection (H) of this Section. <br />(H) Limited City Review and Approval of Permitted Subcontractors. The City <br />shall have the right, based on the criteria provided below in this Section, to approve all <br />Subcontractors which the Company is permitted to engage under subsection (A) of this Section <br />for Contract Services valued in excess of $15,000 (as adjusted annually by the Service Fee <br />Adjustment Factor) annually, except: (1) equipment suppliers; (2) Governmental Hodies; and <br />(3) approved Subcontractors listed on Appendix 7. The Company shall furnish the City written <br />notice of its intention to engage such Subcontractors, together with information reasonably <br /> <br />103 <br />