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J & M ADRIAENSSENS
Contract CSD-720
SCHEDULE

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b. The Contractor shall make frequent (not less than one time per week) measurements of the enclosed outside storage space in use. These mes. ments shall be verified by the Contracting Officer. At the end of each mont a cumulative total of the measurements taken during that month shall be mad and this cumulative total shall be divided by the number of measurements me during that month to arrive at an average usage factor. This average usage factor shall be the basis on which the Contractor shall submit his invoice this item, provided however, that full consideration is given to the 33,000 square feet provided at no cost to the Government as stipulated in paragray a above.

Item 6. $0.035 per square foot used per month.

2. The Contractor shall make frequent (not less than one (1) time per week) measurements of the secured warehouse storage area in use. These measurements shall be verified by the Contracting Officer. At the end of each month a cumulative total of the measurements taken during that month shall be made ind this cumulative total shall be divided by the number of measurements made dur that month to arrive at an average usage factor. This average usage factor : 21 be the basis on which the Contractor shall submit his invoice for this item. item.

Item 7. No cost to the Government.
Item 8. $2.85 per direct labor hour.

Item 9. $2.85 per direct labor hour.

Item 10. Reimbursement of preparation for, including associated service, and transportation shall be in accordance with Part II F. below.

B. In determining the direct labor hour rate for the above items, the
Contractor shall not include any cost of purchasing department operation.
A prorated percentage of this cost is considered under Part II E below.

C. There will be no payment to the Contractor for correction of discrepancies or defects attributable to the Contractor as provided in Clause 22 of the General Provisions hereof.

D. 1 Direct labor to be charged to the United States Government under this contract shall be defined as the actual working time of any producing worker applied directly to the product (or services) oalled for herein. Producing workers shall include, but are not limited to working on-site supervisors, working chargehands, mechanios, machinists, welders, painters, masons, electricians, carpenters, and helpers (or other similar classifications employed directly on produotive work and approved in advance by the Contracting Officer). The working time of apprentices and learners will not be acceptable as direct labor in a higher ratio to total direct shop labor independent of this contract and then only to the extent approved in advance by the Contracting Officer.

J & M ADRIAENSSENS
Contract CSD-720
SCHEDULE

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Direct labor will not include the working time of non-productive personnel including, but not limited to partners, officers, ocntact men, supervisors, expediters, non-working foremen non-working chargehands, quality control personnel, clerks, typista, timekeepers, material handlers, stockroom employees, truck drivers, and receiving and shipping employees. The time of such personnel is included in the overhead portion of the direct labor rate.

2.a. The contract price shall not include any amount on account of overtimè premiums or shift premiums, except to the extent that they either (i) have been approved in writing on behalf of the United States Government or (11) are paid for work when prior approval is obtained from the Contracting Officer:

(1) necessary to cope with emergencies such as those resulting from accidents, natural disasters, breakdowns of production equipment, or occasional production bottle-necks of at sporadic nature;

(2) By indirect labor employees such as those performing duties in connection with administration, protection, transportation, maintenance, standby plant protection, operations of utilities or accounting;

(3) in the performance of tests, industrial processes, laboratory procedures, loading or unloading of transportation media, and operations in flight or afloat, which are continuous in nature and cannot reasonably be interrupted or otherwise completed; or

(4) which will result in lower overall cost to the United States Government.

2.b. Nothwithstanding the provisions of subparagraphs (2) and (3) above, the Contractor shall not invoice for indirect labor, the time of such personnel being included in the overhead portion of the direct labor rates specified.

E.1. As used herdn the allowable costs of direct materials shall include the costs of all items purchased, manufactured, or fabricated which enter directly into the end product or which are used. or consumed directly on the vehicle or component parts thereof. All other materials such as office supplies, sweeping compounds and equipment, personnel washroom supplies, lighting supplies, and any other janitorial-type materials which are not actually used directly on the vehicle or its components shall be considered indirect materials.

2. In computing material costs, consideration will be given to reasonable overruns, spoilage, and defective work. Withdrawals from the Contractor's stock will be charged in accordance with the prioing system used by the Contractor, provided such system is approved by the Contracting Officer, and is in accordance with consistently followed, sound accounting practices. Since none of the cost of purchasing department operation is included in the direct labor rate, materials and parts drawn from company, stock for use on this contract will be invoiced at the Contractor's inventory oard price, less any taxes and duties as applicable plus a prorated share of the Contractor's purchasing dept. overhead.

J & M ADRIAENSSENS
Contract CSD-720
SCHEDULE

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For the purposes of this contract, it is agreed that this prorated share shall be 12% of the inventory card price adjusted by deduction of taxog end tuglas. The inventory card prices is composed of the average purchase price, plus direct expenses such as transportation coste, insurance fees, taxes, duties end handling charges, and the Contractor warrants that no profit is contained in either the inventory card prices or the percentage specified above. In the event that an audit by the United States Government personnel should reveal that a profit has been realized by the Contractor, the said profit shall be returned to the United States Government. Those parts manufactured by the Contractor will not be considered as withdrawals from atook as defined by this paragraph.

3. Contractor may invoice for any item purchased under the provisions of this contract or any order issued thereunder as soon as the items have been received by the Contractor and/or accepted by the Government.

F. The preparation for, including associated services, and transportation of supplies and equipment under the provisions of this contract may be Government provided or, if it is in the best interest of the Government, the Contractor may be required to provide all or any part of the preparation for, including associated services and transportation required. If the Contractor is required to provide these services, an order pursuant to Part IV, entitled "ORDERS" shall , made by the Contracting Officer, or his authorized representative and will be made in writing and will contain (1) location of equipment and/or supplies (11) nomenclature of each item, (iii) weight of each item (iv) destination, (v) required date items are to arrive at destination. The Contractor will immediately obtain a minimum of three (3) bids from Freight Forwarding Agents, in writing, and award shall be made to the Freight Forwarding Agent quoting the lowest overall price consistent with the required delivery date shown in the shipping notification. No award shall be made to a Freight Forwarding Agent without first obtaining written approval of the Contracting Officer. If the Contractor desires to provide his own transportation in lieu of contracting with a Freight Forwarding Agent, he may do so subject to the approval in w writing by the Contracting Officer and at a price no higher than the lowest bid from a minimum of three (3) bids from Freight Forwarding Agents. The Contracting Officer has the authority to waive the requirements for obtaining a minimum of three (3) bids from Freight Forwarding Agents in cases whore exigenoy of the situation prevent solicitation of three (3) bids.

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&. "Notwithstanding the provisions of Clause 4 of the General Provisions of this contract entitled "PAYMENTS", the United States Government may propose payment, in whole or in part, in United States Surplus commodities. This presupposes a prior arrangement between the contractor and a United States firm pursuent to which such firm agrees, as principal, to enter into a proper contract with the Commodity Credit Corporation, a federally incorporated agency of the United States Government (hereinafter referred to as "CCC") for the export of surus agricultural commodities.

J & M ADRIAENSSENS
Contract CSD-720
SCHEDULE

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In the event the aforementioned prior arrangement is consummated, the contractor agrees, pursuant to the clause of the contract entitled "ASSIGNMENT OF CLAIMS and notwithstanding any language to the contrary contained therein, to furnish an irrevocable assignment to the CCC of all the moneys due and to become due under this contract.

b. After satisfactory completion of performance totaling $150,000.00 under this contract, AID may, at its option, enter into negotiations with the supplier with respect to an increase in the amount of the guaranteed minimum. Should agreement be reached, implementation shall be subject to (1) a corresponding increase in the then existing barter contract between CCC and the barter contractor, or (2) a barter contract between CCC and a new barter contractor reflecting the increase in the amount of the guaranteed minimum agreed upon.

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(a) The Contractor agrees to furnish to the Government, when ordered, the supplies or services set forth in the Schedule up to and including the quantitý designated in the Schedule as the maximum quantity." The Government agrees to order the quantity of such supplies and services designated in the Schedule as the "minimum quantity". Such supplies or services will be furnished at the prices set forth in the Schedule.

(b) Delivery Orders for supplies or services shall be issued by the Contracting Officer in writing, dated, and numbered. They shall set forth (1) the supplies or services being ordered, (ii) the quantities to be furnished, (iii) delivery or performance dates, (iv) place of delivery or performance, and (v) packing and shipping instructions, if any. Amendments to delivery orders may be issued by the Contracting Officer by written change order. Each delivery order or change order which increases the dollar amount, shall contain a citation of funds from which payment for the supplies or services ordered shall be made.

(o) The minimum amount of supplies or services to be ordered by the United States Government during the period of this contract is $200,000.00 which is hereby obligated.

(a)

The estimated maximum amount of supplies or services to be furnished by the Contractor during the period of this contract is $1,500,000.00.

Part V. ORDERS PROCEDURE:

Upon receipt of an order, the Contractor shall quote a fixed number of hours and a delivery schedule for the work called for, but shall not proceed with the work until the hours and schedule have been approved by the Contracting Officer, provided however, whenever the Contracting Officer determines that it is in the beat interest of the United States Government to not delay performance of the work until hours and schedule have been negotiated, he may specify in the Order that 'he Contractor is authorized to proceed forthwith.

J & M ADRIAENSSENS
Contract CSD-720
SCHEDULE

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Within thirty (30) days after receipt of such order and in every oase prior to completion of 50% of the work called for the parites shall negotiate the hours and delivery schedule, and the order shall be amended accordingly. Failure to agree upon a reasonable number of hours and delivery schedule shall be considered a "dispute concerning a question of faot" within the meaning of the clause of this contract entitled "DISPUTES".

Part VI. PRICE WARRANTY S

The Contractor warrants that the prices of the items set forth herein do not exceed those charged by the Contractor to any other customer purchasing the same items in like or comparable quantities.

Part VII. OFFICE SPACE:

Contractor shall make available to the Contracting Officer a partitioned office space of approximately 180 square feet in the immediate vicinity of the Production area. The cost of this office space was considered in the negotiated prices and therefore is furnished at no additional cost to the Government.

Part VIII. STORAGE:

In the utilization of secured warehouse storage area, the Contractor shall make full use of bins, racks, pallets and other warehousing storage items of equipment that will provide eqonomio utilization of space. Standard commercial warehousing practices will be followed.

Part IX. PRICE CHANGE:

The Contractor represents that the prices set forth in this contract are based on (wage rates) established by the Government of Belgium and warrants that such prices do not include any contingency allowance to cover possible increase thereof. If such (wage rates) are changed by that Government, the prices herein may be revised to the extent that the contractor's actual costs of performing this contract are, as a result of the change, (1) necessarily increased or (ii) actually reduced. Either party may submit a written request for such price revision to the other party within 30 days after the effective date of such change or within such further time as the Contracting Officer may allow. Such a request by the contractor shall state the amount of such change and show in detail the amount by which contract prices are claimed to be affected. The parties shall then promptly negotiate to establish the amount, if any, by which contract prices shall be revised. The contractor shall make available to the Contracting Officer at all reasonable times its books and records pertaining to the original prices. and performance of the contract. If the parties are unable to agree upon the price revision, the Contracting Officer shall make and transmit to the Contractor, a written determination of the revision if any, which is to be made. Any price revision negotiated by the parties, or determined by the Contracting Officer, pursuant to this clause shall be set forth in an amendment to this contract. Noing in this clause shall excuse the contractor from proceeding with the conract in accordance with its terms.

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