(a) No markup is allowed on a company's own labor charges, or on rental charges a company charges for equipment it owns. Example: Prime Contractor "A" subcontracts drilling to Subcontractor "B". "B" cannot mark up its own labor, since profit is presumed to be built into the labor rates "B" charges. "A" may, however, mark up "B"'s entire invoice, including "B"'s labor charges.

(b) If a pass-through charge is not reasonable, markup will be allowed only on the reasonable portion of that charge that is actually reimbursed.

(c) If a pass-through charge is not allowable, no markup will be allowed.

(d) No markup will be allowed on materials provided by the Applicant. The Applicant is entitled to reimbursement of his/her cost of these materials only.

(e) No markup is allowed on normal business pass-through costs such as utilities (including telephone and fax charges), courier fees, or shipping or postage costs.

(f) No markup is allowed on any travel charge, including lodging, per diems and mileage.

(g) No markup is allowed on pass-through charges if the Applicant is acting as its own consultant and primary contractor.

(h) No markup is allowed on materials or services provided by any company or person with whom the consultant has a financial interest.