1. This settlement proposal should be submitted to the contracting officer, if you are a prime contractor, or to your customer, if you are a subcontractor. The term contract as used hereafter includes a sub-contract or a purchase order. 2. Claims which would normally be included in a single settlement proposal, such as those based on a series of separate orders for the same item under one contract should be consolidated wherever possible, and must not be divided in such a way as to bring them below $10,000.00. (a) COSTS.-Costs incurred which are reasonably necessary and are properly allocable to the terminated portion of your contract under recognized commercial accounting practices, including direct and indirect manufacturing, selling and distribution, administrative, and other costs and expenses incurred. (b) SETTLEMENT WITH SUBCONTRACTORS.-Reasonable settlements of claims of subcontractors allocable to the terminated portion of the sub-contract. Copies of such settlements will be attaches hereto. SETTLEMENT EXPENSES.—Reasonable costs of protecting and pres ngemination inventory in your possession and paring of your claim. CIME 3. You should review any provisions of your contract relating to termination and consult your customer or contracting officer for further information. Government regulations pertaining the basis for determining a fair and reasonable termination settlement are contained in Part 1-8, Federal Procurement Deg ulations (41 CFR 1-8). Your claim for fair compensation shoold be prepared on the basis of the costs shown by your accounting records. Where your costs are not so shown you may use any reasonable basis for estimating your costs which will provide for fair compensation for the preparations made and work done for the terminated portion of the contract, including a reasonable profit on such preparation and work. 4. Generally your settlement proposal may include under items 2, 3, and 4, the following: [35 FR 6474, Apr. 23, 1970] PROFIT.-A reasonable profit with respect to the preparations you have made and work you have actually done for the terminated portion of your contract. No profit should be included with respect to work which has not been done, nor shall profit be included with respect to settlement expenses, or with respect to settlement with subcontractors. 5. If you use this form, your total charges being claimed (line 5), must be less than $10,000.00. The government has the right to examine your books and records relative to this proposal, and if you are a subcontractor your customer must be satisfied with your proposal. • U.S. GOVERNMENT PRINTING OFFICE: 1962 OF-643710 § 1-8.802-4 Contracts. Format 802-4, Settlement Proposal for Cost-Reimbursement Type SETTLEMENT PROPOSAL FOR COST-REIMBURSEMENT TYPE CONTRACTS To be used by prime contractors submitting termination claims on cost-reimbursement type contracts under Part 1-8 of the Federal Procurement PROPOSAL NUMBER CHECK ONE 2. DIRECT LABOR 3. INDIRECT FACTORY EXPENSE 4. DIES, JIGS, FIXTURES AND SPECIAL TOOLS S. OTHER COSTS 6. GENERAL AND ADMINISTRATIVE EXPENSE 7. TOTAL COSTS (Items 1 thru 6) 8. FEE 9. SETTLEMENT EXPENSES 10. SETTLEMENTS WITH SUBCONTRACTORS 11. GROSS PROPOSED SETTLEMENT (Items 7 thru 10) 12. DISPOSAL AND OTHER CREDITS 13. NET PROPOSED SETTLEMENT (Item 11 less 12) 14. PREVIOUS PAYMENTS TO CONTRACTOR 15. NET PAYMENT REQUESTED (Item 13 less 14) SPECIMEN CERTIFICATE S The undersigned, individually and as an authorized representative of the contractor, certifies that he has examined this settlement proposal and that, to the best of his knowledge and belief: (1) AS TO CONTRACTOR'S OWN CHARGES-The proposed settlement (exclusive of charges set forth in Item 10) and supporting schedules and explanations have been prepared from the books of account and records of the contractor in accordance with the terms of the contract; they include only those charges allocable to the terminated contract; they have been prepared with knowledge that they will, or may, be used directly or indirectly as the basis of settlement of a claim or claims against the United States or an agency thereof; and the charges as stated are fair and reasonable. (2) AS TO SUBCONTRACTORS' CHARGES—(a) The contractor has examined, or caused to be examined, to an extent he considered necessary in the circumstances, the claims of his immediate subcontractors (exclusive of claims filed against such immediate subcontractors by their subcontractors); (b) the settlements on account of immediate subcontractors' own charges are fair and reasonable, said charges are allocable to the terminated portion of this contract and said settlements were nego. tiated in good faith and are not more favorable to his immediate subcontractors than those which the contractor would make if reimbursement by the Government were not involved; (c) the contractor has received from all his immediate subcontractors appropriate certificates with respect to their claims, which certificates are substantially in the form of this certificate; and (d) the contractor has no information leading him to doubt (i) the reasonableness of the settlements with more remote subcontractors, or (ii) that charges for them are allocable to this contract. Upon receipt by the contractor of amounts covering settlements with his immediate subcontractors, the contractor will pay or credit them promptly with the amounts so received, to the extent that he has not previously done so. The term subcontractor as used above includes suppliers. |