Article 1 — Prosecution of Work
Begin work within 30 calendar days (7 calendar days for routine maintenance Contracts) after the authorization date to begin work. Prosecute the work continuously to completion within the working days specified. Unless otherwise shown on the plans, work may be prosecuted in concurrent phases if no changes are required to the traffic control plan or if a revised traffic control plan is approved. Notify the Engineer at least 24 hr. before beginning work or before beginning any new operation. Do not start new operations to the detriment of work already begun. Minimize interference to traffic. For Contracts with callout work and work orders , begin work in the right of way within the specified time and continuously prosecute the work until completion.
Article 2 — Subcontracting
Do not sublet any portion of a construction Contract without the Engineer’s written approval. A subcontract does not relieve any responsibility under the Contract and bonds. Ensure that all subcontracted work complies with all governing labor provisions. The Contractor certifies by signing the Contract that the Contractor will not enter into any subcontract with a subcontractor that is debarred or suspended by the Commission, Department, or any federal agency. For federally funded contracts, ensure the required federal documents are physically attached to each subcontract agreement , including all tiered subcontract agreements. For all DBE subcontracts , including all tiered DBE subcontracts, submit a copy of the executed subcontract agreement . Upon request, submit a copy of the executed non- DBE subcontracts , including all tiered non- DBE subcontracts . The Contractor certifies by signing the Contract that the Contractor will not enter into any subcontract with a subcontractor that is not registered in the Department of Homeland Security (DHS) E -Verify system. Require that all subcontractors working on the project register and require that all subcontractors remain active in the DHS E -Verify system until their work is complete on the project.
2.1 Constr uction Contracts and Federally Funded Maintenance Contracts . Perform work with own
organization on at least 30% of the total original Contract cost (25% if the Contractor is an SBE on a wholly State - or local -funded Contract), excluding any specialty items as determined by the Engineer. Specialty items are those that require highly specialized knowledge, abilities, or equipment not usually available in the contracting firm expected to bid on the proposed Contract as a whole. Specialty items will be shown on the plans or as determined by the Engineer. Bid cost of specialty items performed by subcontractors will be deducted from the total original Contract cost before computing the required amount of work to be performed by the Contractor’s own organization. The term “perform work with own organization” includes only: workers employed and paid directly by the Contractor or wholly owned subsidiary; equipment owned by the Contractor or wholly owned subsidiary; 60 rented or leased equipment operated by the Contractor’s employees or wholly owned subsidiary’s employees; materials incorporated into the work if the majority of the value of the work involved in incorporating the material is performed by the Contractor’s own organization, including a wholly owned subsidiary ’s organization; and labor provided by staff leasing firms licensed under Chapter 91 of the Texas Labor Code for nonsupervisory personnel if the Contractor or wholly owned subsidiary maintains direct control over the activities of the leased employees and includes them in the weekly payrolls. Mobilization is not included in calculation of 30%. When staff leasing firms provide materials or equipment, they are considered subcontractors. In these instances, submit staff leasing firms for approval as a subcont ractor. Copies of canceled checks and certified statements may be required to verify compliance with the requirements of this Section.
2.2 State -Funded Maintenance Contracts. The requirements for performing work with the Contractor’s own
organization as stated in Section 8.2.1., “ Construction Contracts and Federally Funded Maintenance Contracts ,” do not apply to wholly State- funded maintenance Contracts.
2.3 Payments to Subcontractors. Report payments for DBE subcontracts , including tiered DBE subcontracts ,
in the manner as prescribed by the Department by the 20 th day of each month.
2.3.1 Payment Records. Make payment and related records, including but not limited to copies of canceled
checks, available for inspection by the Department. Retain payment records for a period of 3 yr . following the completion of the C ontract.
2.4 Payrolls . Comply with Article 7. 19., “Payrolls. ”
Article 3 — Computation of Contract Time for Completion
The number of working days is established by the Contract. For Contracts with work orders, the number of working days is established in each work order. W orking day charges will begin when work begins as prescribed in Article 8.1., “Prosecution of Work.” Working day charges will continue in accordance with the Contract. The development of the conceptual time determination is intended to establish the number of working days on the Contract. Upon request, the Engineer will provide the conceptual time determination schedule to the Contractor for informational purposes only. The schedule assumes generic resources, production rates, sequences of construction and average weather conditions based on historic data. Schedule labor, equipment, procurement of materials, subcontractor work, and all other necessary means to prosecute the work within the number of working days specified by the Contract.
3.1 Working Day Charges. Working days will be charged in accordance with Section 8.3.1.4., “Standard
Workweek,” unless otherwise shown on the plans. Working days will be computed and charged in accordance with one of the following:
3.1.1 Five-Day Workweek. Working days will be charged Monday –Friday, excluding national holidays, regardless
of weather conditions or material availability. The Contractor has the option of working on Saturdays. Provide sufficient advance notice to the Engineer when scheduling work on Saturdays. Work on Sundays and national holidays will not be permitted without written permission of the Engineer. If work requiring an Inspector to be present or if critical path activities are performed on a Saturday, Sunday, or national holiday, and weather and other conditions permit the performance of work for 7 hr. between 7 A.M. and 6 P.M., a working day will be c harged. 61 3.1.2. Six-Day Workweek. Working days will be charged Monday –Saturday, excluding national holidays, regardless of weather conditions or material availability. Work on Sundays and national holidays will not be permitted without written permission of the Engineer. If work requiring an Inspector to be present or if critical path activities are performed on a Sunday or a national holiday, and weather or other conditions permit the performance of work for 7 hr. between 7 A.M. and 6 P.M., a working day will be c harged.
3.1.3 Seven -Day Workweek. Working days will be charged Monday –Sunday, excluding national holidays,
regardless of weather conditions or material availability. Work on national holidays will not be permitted without written permission of the Engineer. If w ork or critical path activities requiring an Inspector to be present are performed on any of these holidays , and weather or other conditions permit the performance of work for 7 hr. between 7 A.M. and 6 P.M., a working day will be charged.
3.1.4 Standard Workweek . Working days will be charged Monday –Friday, excluding national or State holidays, if
weather or other conditions permit the performance of the principal unit of work underway, as determined by the Engineer, for a continuous period of at least 7 hr. betw een 7:00 A.M. and 6:00 P.M., unless otherwise shown in the Contract. The Contractor has the option of working on Saturdays or S tate holidays. Provide sufficient advance notice to the Engineer when scheduling work on Saturdays. Work on Sundays and national holidays will not be permitted without written permission of the Engineer. If work requiring an Inspector to be present or critical path activities are performed on a Saturday, Sunday, or holiday, and weather or other conditions permit the performance of work for 7 hr. between 7 A.M. and 6 P.M., a working day will be charged.
3.1.5 Calendar Day. Working days will be charged Sunday –Saturday, including all holidays, regardless of weather
conditions, material availability, or other conditions not under the control of the Contractor.
3.1.6 Other . Working days will be charged as shown on the plans.
3.2 Restricted Work Hours. Restrictions on Contractor work hours and the related definition for working day
charges are as pres cribed in this Article unless otherwise shown on the plans.
3.3 Nighttime Work . Nighttime work is allowed only when shown on the plans or directed or allowed by the
Engineer. Nighttime work is defined as work performed from 30 min. after sunset to 30 min. before sunrise.
3.3.1 Five-, Six-, and Seven -Day Workweeks. Nighttime work that extends past midnight will be assigned to the
following day for the purposes of approval for allowing work on Sundays or national holidays.
3.3.2 Standard Workweek.
3.3.2.1. Nighttime Work Only . When nighttime work is allowed or required and daytime work is not allowed, working day charges will be made when weather and other conditions permit the performance of the principal unit of work underway, as determined by the Engineer, for a continuous period of at least 7 hr. for the nighttime period, as defined in Section 8.3.3., “Nighttime Work,” unless otherwise shown in the Contract. 3.3.2.2. Nighttime Work and Daytime Work Requiring Inspector . When nighttime work is performed or required and daytime work is allowed, working day charges will be made when weather and other conditions permit the performance of the principal unit of work underway , as determined by the Engineer, for a continuous period of at least 7 hr. for the nighttime period, as defined in Section 8.3.3., “Nighttime Work,” or for a continuous period of at least 7 hr. for the alternative daytime period unless otherwise shown in the Contract. Only one day will be charged for each 24- hr. period. When the Engineer agrees to restrict work hours to the night time period only, working day charges will be in accordance with Section 8.3.3.2.1., “Nighttime Work Only.”
3.4 Time Statements. The Engineer will furnish the Contractor a monthly time statement. Review the monthly
time statement for correctness. Report protes ts in writing, no later than 30 calendar days after receipt of the time statement, providing a detailed explanation for each day protested. Not filing a protest within 30 calendar days will indicate acceptance of the working day charges , and future consideration of that statement will not be permitted. 62 4. TEMPORARY SUSPENSION OF WORK OR WORKING DAY CHARGES The Engineer may suspend the work, wholly or in part, and will provide notice and reasons for the suspension in writing. Suspend and resume work only as directed in writing. When part of the work is suspended, the Engineer may suspend working day charges only when conditions not under the control of the Contractor prohibit the performance of critical path activities. When all of the work is suspended for reasons not under the control of the Contractor, the Engineer will suspend working day charges.
Article 5 — Project Schedules
Prepare, maintain, and submit project schedules for the work to be performed under this Contract . Project schedules are used to convey the Contractor’s intended work plan to the Department. The work performed under this Article will not be measured or paid for directly , but will be subsidiary to pertinent Items.
5.1 Project Scheduler . Designate an individual who will develop and maintain the progress s chedule. The
project scheduler will be prepared to discuss, in detail, the proposed sequence of work and methods of operation, and how that information will be communicated through the progress schedule at the preconstruction m eeting. This individual will also attend the project meetings and make site visits to prepare, develop, and maintain the progress schedules.
5.2 Progress Schedule. Before starting work, prepare and submit a progress schedule based on the sequence of work and traffic control plan shown in the Contract. P repare the progress schedule as a bar c hart or critical
path method (CPM) as shown on the plans. Include all planned work activities and sequences and show Contract completion within the number of working days specified. Incorporate major material procurements, known utility relocations, and other activities that may affect the completion of the Contract in the progress schedule. Show a beginning date, ending date, and duration in whole working days for each activity. Do not use activities exceeding 20 working days, unless agreed upon with the Engineer. Show an estimated production rate per working day for each work activity, unless otherwise agreed upon with the Engineer .
5.3 Schedule Format . Format all project schedules in accord ance with the following.
Begin the project schedule on the date of the start of Contract time or start of activities affecting work on the project . Show the sequence and interdependence of activities required for complete performance of the work. If using a CPM schedule, show a predecessor and a successor for each activity . Ensure all work sequences are logical and show a coordinated plan of the work. CPM schedules must also: clearly and accurately identify the critical path as the longest continuous path; provide a legend for all abbreviations, run date, data date, project start date, and project completion date in the title block of each schedule submittal ; and using calendars, incorporate seasonal weather conditions into the schedule for work (e.g., earthwork, concrete paving, structures, asphalt, and drainage) that may be influenced by temperature or precipitation. Also, incorporate non- work periods such as holidays, weekends, or other non- work days as identified in the Contract.
5.4 Activity Format . For each activity on the project schedule, provide:
a concise description of the work represented by the activity , an activity duration in whole working days, and code activities so that organized plots of the schedule may be produced. 63 CPM schedules must als o include the quantity of work and estimated production rate for major items of work. Provide enough information for review of the work being performed. Total float is defined as the amount of time (in whole days) that an activity can be delayed before impacting the project’s completion date. Total float is a shared commodity between the Department and the Contractor.
5.5 Schedule Types and Schedule Impacts.
5.5.1 Bar Chart . Seven calendar days before the preconstruction meeting, prepare and submit a hard or electronic
copy of the schedule using the bar chart method. 5.5.1.1. Progress Schedule Reviews. Update the project schedule and submit a hard or electronic copy when changes to the schedule occur or when requested.
5.5.2 Critical Path Method . Prepare and submit the schedule using the CPM. Submit an electronic copy to the
Engineer within the timeframes specified. An electronic copy is defined as the scheduling software’ s native file, saved in a format acceptable t o the Engineer. In all cases, an electronic format (.xer) of Primavera Project Planner and Enterprise Project Portfolio Management (P6) will be acceptable. 5.5.2.1. Preliminary Schedule. Unless otherwise agreed for a later submission, 7 calendar days before the preconstruction meeting, submit an electronic copy of the project schedule showing activities beginning with the authorization date to begin work and including activities to be performed within the first 90 calendar days from the work start date. 5.5.2.2. Baseline Sch edule . The baseline schedule will be considered the Contractor’s plan to successfully construct the project within the timeframe and construction sequencing indicated in the Contract. Submit electronic copies of the baseline schedule. When requested, s ubmi t two plots of the schedule: one organized with the activities logically grouped using the activity coding, and the other plot showing only the critical path determined by the longest path, not based on critical float. Develop and submit the baseline schedule for review within the first 45 calendar days from the work start date unless the time for submission is extended by the Engineer. 5.5.2.2.1. Review . Within 15 calendar days of receipt of the schedule, the Engineer will evaluate and inform the Contractor if the sc hedule has been accepted. If the schedule is not accepted, the Engineer will provide comments to the Contractor for incorporation. Provide a revised schedule based on the Engineer’s comments, or reasons for not doing so, within 10 calendar days. The Engineer’s review and acceptance of the project schedule is for conformance to the requirements of the Contract documents only and does not relieve the Contractor of any responsibility for meeting the interim milestone dates (if specified) or the Contract completion date. Review and acceptance does not expressly or by implication warrant, acknowledge, or admit the reasonableness of the logic or durations of the project schedule. If the Contractor fails to define any element of work, activity, or logic and the Engineer’s review does not detect this omission or error, the Contractor is responsible for correcting the error or omission. Submit an acceptable baseline schedule before the 90 th calendar day from the work start date unless the time for submission is extended by the Engineer. 5.5.2.3. Progress Schedule. Maintain and submit the progress schedule monthly for use by the Contractor and the Engineer. Submit an electronic copy as it will become an as -built record of the daily progress achieved on the project. If continuous progress of an activity is interrupted for any reason except non- work periods ( e.g., holidays, weekend, or interference from temperature or precipitation), then the activity will show the actual finish date as that date of the start of the interrupt ion and the activity will be broken into a subsequent activity (or activities, based on the number of interruptions) similarly numbered with successive alpha character as necessary. The original duration of the subsequent activity will be that of the remai ning duration of the original activity. Relationships of the subsequent activity will match those of the original activity so that the integrity of the project schedule logic is maintained. Once established, the original durations and actual dates of all a ctivities must remain unchanged. Revisions to the schedule may be made as necessary. 64 The project schedule must be revised when changes in construction phasing and sequencing occur or other changes that cause deviation from the original project schedule occ ur. Any revisions to the schedule must be listed in the monthly update narrative with the purpose of the revision and description of the impact on the project schedule’s critical path and project completion date. Create the schedule revision using the latest update before the start of the revision. Monthly updating of the project schedule will include updating of: the actual start dates for activities started, the actual finish dates for activities completed, the percentage of work completed and remaining duration for each activity started but not yet completed, and the calendars to show days actual work was performed on the various work activities. The cutoff day for recording monthly progress will be the last day of each month. Submit the update d project schedule no later than the 20 th calendar day of the following month. The Engineer will evaluate the updated schedule within 5 calendar days of receipt and inform the Contractor if it has or has not been accepted. If the schedule is not accepted, the Engineer will provide comments to the Contractor for incorporation. Provide a revised schedule based on the Engineer’s comments, or reasons for not doing so, within 5 calendar days. Provide a brief narrative in a bulleted statement format for major items that have impacted the schedule. Notify the Engineer if resource- leveling is being used. 5.5.2.3.1. Project Schedule Summary Report (PSSR) . When shown on the plans, provide the PSSR instead of the narrative required in Section 8.5.5.2.3., “Progress Schedule.” The PSSR includes a listing of major items that have impacted the schedule and a summary of progress in days ahead or behind schedule. Include an explanation of the project progress for the period represented on the form provided by the Department.
5.5.3 Notice of P otential Time Impact . Submit a n otice of p otential time impact when a Contract time extension
or adjustment of milestone dates may be justified or when directed. Failure to provide this notice in the timeframes specified above will compromise the Department’s ability to mitigate the impacts , and the Contractor forfeits the right to request a time extension or adjustment of milestone dates unless the circumstances are such that the Contractor could not reasonably have had knowledge of the impact at the time.
5.5.4 Time Impact Analysis. When directed, provide a time impact analysis. A time impact analysis is an evaluation of the effects of impacts on the project. A time impact analysis consists of the following steps .
Step 1 . Establish the status of the project immediately before the impact. Step 2 . Predict the effect of the impact on the schedule update used in Step 1. Step 3 . Track the effects of the impact on the schedule during its occurrence. Step 4 . Establish the status of the project after the impact’s effect has ended and provide details identifying any mitigating actions or circumstances used to keep the project ongoing during the impact period. Determine the time impact by comparing the status of the work before the impact (Step 1) to the prediction of the effect of the impact (Step 2), if requested, and to actual effects of the impact once it is complete (Step 4). Unless otherwise approved by the Engineer, S teps 1, 3, and 4 must be completed before consideration of a Contract time extension or adjustment of a milestone date will be provided. Time extensions will be considered only when delays that affect milestone dates or the Contract completion date are beyond the Contractor’s control. Submit Step 4 no later than 15 calendar days after the impact’s effects have ended or when all the information on the effect has been realized. Submit one electronic backup copy of the complete time impact analysis and a copy of the full project schedule incorporating the time impact analysis. If the project schedule is revised after the submittal of a time 65 impact analysis, but before its approval, indicate in writing the need for any modification to the time impact analysis. The Engineer will review the time impact analysis upon completion of S tep 4. If this review detects rev isions or changes to the schedule that had not been performed and identified in a narrative, the Engineer may reject the time impact analysis. If the Engineer is in agreement with the time impact analysis, a change order may be issued to grant additional working days, or to adjust interim milestones. Once a change order has been executed, incorporate the time impact analysis into the project schedule. The time impact analysis may also be used to support the settlement of disputes and claims. Compensation related to the time impact analysis may be provided at the completion of the analysis or the completion of the project to determine the true role the impact played on the final completion.
Article 6 — Failure To Complete Work On Time
The time established for the completion of the work is an essential element of the Contract. If the Contractor fails to complete the work within the number of working days specified, working days will continue to be charged. Failure to complete the Contract, callout work, or a work order within the number of working days specified, including any approved additional working days, will result in liquidated damages for each working day charged over the number of working days specified. The dollar amount specified in the Contract will be deducted from any money due or to become due the Contractor for each working day the Contract , callout work, or work order remains incomplete. This amount will be assessed not as a penalty but as liquidated damages. The amount assessed for non-site -specifi c Contracts will be based on the estimated amount for each work order unless otherwise shown in the Contract. The amount assessed for each callout will be as specified in the Contract.
Article 7 — Default of Contract
7.1 Declaration of Default . The Engineer may declare the Contractor to be in default of the Contract if the
Contractor: fails to begin the work within the number of days specified; fails to prosecute the work to assure completion within the number of days specified; is uncooperative, disruptive, or threatening; fails to perform the work in accordance with the Contract requirements; neglects or refuses to remove and replace rejected materials or unacceptable work; discontinues the prosecution of the work without the Engineer’s appr oval; makes an unauthorized assignment; fails to resume work that has been discontinued within a reasonable number of days after notice to do so; fails to conduct the work in an acceptable manner ; or commits fraud or other unfixable conduct as determined by the Department. If any of these conditions occur, the Engineer will give notice in writing to the Contractor and the Surety of the intent to declare the Contractor in default. If the Contractor does not proceed as directed within 10 days after the notice, the Department will provide written notice to the Contractor and the Surety to declare the Contractor to be in default of the Contract. If the Contractor provides the Department written notice of voluntary default of the Contract, the Department may waive the 10 -day notice of intent to declare the Contractor in default and immediately provide written notice of default to the Contractor and the Surety. Calendar day charges will continue until completion of the Contract. T he Department may suspend work in accordance with Artic le 8.4., “Temporary Suspension of Work or Working Day Charges,” to investigate apparent fraud or other unfixable conduct before defaulting the Contractor. The Contractor may be subject to sanctions under the TAC. A default may result in the application of remedial action by the Department. Reference 43 TAC § 9.24, “Performance Review Committee and Actions.” 66 The Department will determine the method used for the completion of the remaining work as follows . For Contracts without performance b onds, the Department will determine the most expeditious and efficient way to complete the work and recover damages from the Contractor. For Contracts with performance b onds, the Department will require the Contractor’s Surety to complete the remaining work in accordance with the terms of the original Contract. A completing Contractor will be considered a subcontractor of the Surety. The Department reserves the right to approve or reject proposed subcontractors. Work may resume after the Department receives and approves Certificates of Insurance as required in Section 3.4.3., “Insurance.” Certificates of Insurance may be issued in the name of the completing Contractor. The Surety is responsible for making every effort to expedite the resumption of work and completion of the Contract. The Department may complete the work using any or all materials at the work locations that it deems suitable and acceptable. Any costs incurred by the Department for the completion of the work under the Contract will be the responsibility of the S urety. From the time of notification of the default until work resumes (either by the Surety or the Department), the Department will maintain traffic control devices and will do any other work it deems necessary, unless otherwise agreed upon by the Department and the Surety. All costs associated with this work will be deducted from money due to the Surety. The Department will hold all money earned but not disbursed by the date of default. Upon resumption of the work after the default, all payments will be made to the Surety. All costs and charges incurred by the Department resulting from the default, including the cost of completing the work under the Contract, costs of maintaining traffic control devices, costs for other work deemed necessary, and any appli cable liquidated damages or disincentives will be deducted from money due the Contractor for completed work. If these costs exceed the sum that would have been payable under the Contract, the Surety will be liable and pay the Department the balance of these costs in excess of the Contract price. In case the costs incurred by the Department are less than the amount that would have been payable under the Contract if the work had been completed by the Contractor, the Department will be entitled to retain the difference. Comply with Article 8.2., “Subcontracting,” and abide by the DBE commitments previously approved by the Department. Section 8.2.1., “Construction Contracts and Federally Funded Maintenance Contracts,” is waived. No markups as defined in Article 9.7., “Payment for Extra Work and Force Account Method,” will be allowed for the Surety.
7.2 Wrongful Default . If it is determined after the Contractor is declared in default, that the Contractor was not in
default, the rights and obligations of all parties will be the same as if termination had been issued for the convenience of the public as provided in Article 8.8., “Termination of Contract.”
Article 8 — Termination of Contract
The Department may terminate the Contract in whole or in part whenever: the Contractor is prevented from proceeding with the work as a direct result of an executive order of the President of the United States or the Governor of the State; the Contractor is prevented from proceeding with the work due to a national emergency, or when the work to be performed under the Contract is stopped, directly or indirectly, because of the freezing or diversion of materials, equipment , or labor as the result of an order or a proclamation of the President of the United States ; the Contractor is prevented from proceeding with the work due to an order of any federal authority ; the Contractor is prevented from proceeding with the work by reason of a preliminary, special, or permanent restraining court order where the issuance of the restraining order is primaril y caused by acts or omissions of persons or agencies other than the Contractor ; or 67 the Department determines that termination of the Contract is in the best interest of the State or the public. This includes , but is not limited to, the discovery of signifi cant hazardous material problems, right of way acquisition problems, or utility conflicts that would cause substantial delays or expense to the Contract.
8.1 Procedures and Submittals. The Department will provide written notice to the Contractor of termination
specifying the extent of the termination and the effective date. Upon notice, immediately proceed in accordance with the following: stop work as specified in the notice, place no further subcontracts or orders for materials, services, or facilities, except as necessary to complete a critical portion of the Contract, as approved by the Engineer , terminate all subcontracts to the extent they relate to the work terminated, complete performance of the work not terminated, settle all outstanding liabilities and termination settlement proposals resulting from the termination of the Contract , create an inventory report, including all acceptable materials and products obtained for the Contract that have not been incorporated in the work that was terminated (include in the inventory report a description, quantity, location, source, cost, and payment status for each of the acceptable materials and products) , and take any action necessary, or that the Engineer may direct, for the protection and preserv ation of the materials and products related to the Contract that are in the possession of the Contractor and in which the Department has or may acquire an interest.
8.2 Settlement Provisions. Within 60 calendar days of the date of the notice of termination, submit a final
termination settlement proposal, unless otherwise approved. The Engineer will prepare a change order that reduces the affected quantities of work and adds acceptable costs for termination. No claim for loss of anticipated profits will be consi dered. The Department will pay reasonable and verifiable termination costs , including: all work completed at the unit bid price and partial payment for incomplete work , the percentage of Item 500, “Mobilization,” equivalent to the percentage of work complete or actual cost that can be supported by cost records, whichever is greater , expenses necessary for the preparation of termination settlement proposals and support data; the termination and settlement of subcontracts , storage, transportation, restocking, and other costs incurred necessary for the preservation, protection, or disposition of the termination inventory , and other expenses acceptable to the Department.