CMS Pub. 100-06, ch. 1, § 380

A1-1110, B1-4110

Notice of interest rates for debts due the government pursuant to Federal debt collection

procedures in the Prompt Payment Act are supplied to contractors by CMS for each rate

period and as published in the "Federal Register." Do not confuse these rates with those

for overpayment or underpayment determinations established under §117 of the Tax

Equity and Fiscal Responsibility Act.

390 - Travel Costs - (Rev. 1, 08-30-02)

A1-1120, B1-4120

Travel costs are generally limited to the rates as set forth in the Federal Travel

Regulations (FTR). See FAR 31.205-46 for complete information, limitations, and

exceptions. The FTR per diem limits from January 1995 to present can be found at the

GSA website: www.policyworks.gov under the Office of Government-wide Policy. Only

the most current mileage rate for use of privately owned automobiles is included on this

website. Mileage rates for prior periods are listed below:

Period Rate

September 17, 1989 to June 29, 1991 24 cents per mile

June 30, 1991 to December 31, 1995 25 cents per mile

January 1, 1995 to June 6, 1996 30 cents per mile

June 7, 1996 to January 13, 2000 31 cents per mile

January 14, 2000 32 cents per mile

400 - Calculating Return on Investment Where the Contractor's Year

for Insurance Commission Filing Differs from the Medicare Contract

Year - (Rev. 1, 08-30-02)

A1-1130, B1-4130

The contractor shall compute the rate of return on investment in accordance with

Appendix B of the contract/agreement. If the contractor's accounting year is different

from its Medicare contract year, CMS recommends the following weighted average

calculation:

Assumption: Rate of return for October 1, 1998, to December 31, 1998, is 10

percent.

Rate of return for January 1, 1999, to September 30, 1999, is 8

percent.

Calculation of weighted average:

10 (Percent) x 3 (months) = 30%

8 (Percent) x 9 (months) = 72%

Total 102%

102% divided by 12 (months) = 8.5% (weighted average)

410 - Cost of Project Exceeds Estimates - (Rev. 1, 08-30-02)

A1-1140

Contractors are expected to complete productivity investment projects at, or under,

budget. In some cases (e.g., large consolidations) it may be appropriate for the regional

office (RO) to negotiate a Memorandum of Advance Agreement that sets out the

statement of work and sets an upper limit for allowable costs.