(d) Page 4 of Format 804-1. 23. METHOD OF RECORDING AND ABSORBING (1) GENERAL ENGINEERING AND GENERAL DEVELOPMENT EXPENSE AND (2) ENGINEERING AND DEVELOPMENT EXPENSE DIRECTLY APPLICABLE TO THE TERMINATED CONTRACT 24. TYPES AND SOURCE OF MISCELLANEOUS INCOME AND CREDITS AND MANNER OF RECORDING IN THE INCOME OR THE COST ACCOUNTS SUCH AS RENTAL OF YOUR FACILITIES TO OUTSIDE PARTIES, ETC. 25 ARE COSTS AND INCOME FROM CHANGE ORDERS SEGREGATED FROM OTHER CONTRACT COSTS AND INCOME? YES NO. IF "YES" 26 ARE SETTLEMENT EXPENSES APPLICABLE TO PREVIOUSLY TERMINATED CONTRACTS EXCLUDED FROM THE ATTACHED PROPOSALS? IF NO EXPLAIN 27. STATE POLICY AND PROCEDURE FOR VERIFICATION AND NEGOTIAT SPECIMEN ELEMENTS WITH SUBCONTRACTORS AND VENDORS YES NO. 28. METHOD OF COMPUTING PROFIT CLAIMED IN THE ATTACHED PROPOSAL AND REASON FOR SELECTING THE METHOD USED. FURNISH ESTI. MATE OF AMOUNT OR RATE OF PROFIT IN DOLLARS OR PERCENT ANTICIPATED HAD THE CONTRACT BEEN COMPLETED 29. WHAT IS LENGTH OF TIME (production cycle) REQUIRED TO PRODUCE ONE OF THE END ITEMS FROM THE TIME THE MATERIAL ENTERS THE PRODUCTION LINE TO THE COMPLETION AS THE FINISHED PRODUCT? 30. METHOD OF ALLOCATING GENERAL AND ADMINISTRATIVE EXPENSE CERTIFICATE I HEREBY CERTIFY THAT, TO THE BEST OF MY KNOWLEDGE AND BELIEF, THE ABOVE STATEMENTS ARE TRUE AND CORRECT. NAAE OF CONTRACTOR WHERE THE SPACE PROVIDED FOR ANY INFORMATION IS INSUFFICIENT, ATTACH SEPARATE SCHEDULES (b) Page 2 of Format 804-2 SECTION III.-AGREEMENT OF APPLICANT IN CONSIDERATION OF ANY PARTIAL PAYMENT WHICH MAY BE MADE, THE APPLICANT AGREES AS FOLLOWS: (1) REPAYMENT OF EXCESS.-If any partial payment inade to the contractor is in excess of the amount hnally determined to be due on his termination claim, the excess shall be repaid to the Government upon demand, with interest at the rate established by the Secretary of the Treasury pursuant to Public Law 92-41 (50 U.S.C. App. 1215(b)(2)) for the Renegotiation Board. Interest shall be computed for the period from the date the excess payment was received by the contractor to the date of repayment, except that (i) no in. terest shall be charged for any such excess payment attributable to a reduction in the contract termination claim by reason of retention or other disposition of termination inventory, until 10 days after the date of such retention or disposition, or such later date as determined by the contracting officer by reason of the cir cumstances, and (11) no interest shall be charged for overpayment under cost-reimbursement type research and development contracts (without profit or fee to the contractor) if the overpayments are repaid to the Government within 30 days after demand. (2) PROMPT SETTI.Ement of Claim.-The applicant will make every reasonable effort to expedite final settlement of the termination claim and the claims of his subcontractors, if any. (3) DISPOSAL AND RETENTION OF INVENTORY.— Whenever the amount of any proceeds hereafter received by the applicant on the disposal of termination inventory, plus the cost or agreed value, as the case may be, of any termination inventory which the applicant hereafter elects to retain, exceeds the amount stated by the applicant in this application as the amount of his charges (Section II, Line 9) and the amount of such credits has not been included on Section II, Line b (Disposal and Other Credits), the applicant within 10 days will notify the contracting agency of the amount of credits on account of such inventory disposal or SPECIMEN SECTION IV.-CERTIFICATE OF APPLICANT The undersigned certifies that the amount of his own charges (exclusive of subcontractors' charges) due as of the date of this application and allocable to the terminated portion of its contract Number dated with is not less than $. that, to the best of applicant's knowledge, the amounts received are as set forth above; and that the applicant has not assigned any moneys payable under this contract, except as set forth above. WHERE THE SPACE PROVIDED FOR ANY INFORMATION IS INSUFFICIENT, ATTACH SEPARATE SUPPORTING SCHEDULES 2 40-104 0-79-35 DATE (c) Page 3 of Format 804-2. SECTION V.-RECOMMENDATION OF FIRST REVIEWING CONTRACTOR The undersigned states that he has examined this application and has considered the applicant's general reputation. He has no reason to doubt the accuracy of the information contained in this application or that the amount certified by the applicant as due will constitute a proper charge to be included in the undersigned's termination claim against. recommends that the requesid partial payment be made. Не The undersigned agrees that he will promptly pay over to the applicant or credit against amounts owing from the applicant any amount received for the benefit of the applicant under this application, and that he will repay to the Government on demand any amount not so paid or credited. NAME OF CONTRACTOR BY (Signature of authorized official) TITLE DATE SECTION VI.-RECOMMENDATIONS OF OTHER REVIEWING CONTRACTORS Each of the undersigned states that he has no reason payment requested, and recommended above ja due the in the termination claim of the undersigned ECIMEN Each of the undersigned agrees the S credit against amounts owing from plicant under this application, and so paid or credited. CONTRACTOR that the amount of the partial will constitute a proper charge promptly pay over to his immediate subcontractor or subcontractor any amount received for the benefit of the aphe will repay to the Government on demand any amount not WHERE THE SPACE PROVIDED FOR ANY INFORMATION IS INSUFFICIENT, ATTACH SEPARATE SUPPORTING SCHEDULES 3 [29 FR 10196, July 24, 1964, as amended at 42 FR 43081, Aug. 26, 1977] § 1-8.805 Scrap warranty. A warranty in the general format set forth below shall be executed by a purchaser of material as scrap (on direct purchase from the Government or on subsequent resale) in accordance with the requirements of § 1-8.504. SCRAP WARRANTY In consideration of the transfer to the undersigned of the property covered by this Agreement at a value based upon its being used as scrap, the undersigned represents and warrants to the United States of America as follows: (a) The property covered by this Agreement will be used only as scrap, either in its existing condition or after further preparation, unless and until the undersigned is released from this warranty. (b) In the event the undersigned is released from this warranty, or any payment agreed on as consideration for such release shall be made to the United States, regardless of whether this warranty shall have been executed at the request of the United States. (c) In the event the undersigned sells the property covered by this Agreement prior to release of this warranty, the undersigned will obtain from the purchaser and tender to the United States a warranty identical to this executed by the purchaser, and upon receipt of such other warranty, this warranty will be released by the United States. hereinafter referred to as "the contract"; and WHEREAS, the Termination for Convenience of the Government clause of the contract provides that the performance of work under the contract may at the convenience of the Government be terminated by the Government in whole, or from time to time in part, whenever the Contracting Officer shall determine that such termination is in the best interest of the Government, and that the Contractor and the Contracting Officer may agree upon the whole or any part of the amount to be paid to the Contractor by reason of such termination; and WHEREAS, by notice of termination dated --, the Government advised the Contractor of the complete termination of the contract for the convenience of the Government; and WHEREAS, as used herein, the following terms shall have the meanings hereinafter set forth: (a) The term "termination inventory" means any items of physical property purchased, supplied, manufactured, furnished, or otherwise acquired for performance of the contract and properly allocable to the terminated portion of the contract. The term does not include any facilities, material, production or other equipment, or special tooling, which are subject to a separate contract or a special contract provision governing the use or disposition thereof. Termination inventory may include contractor-acquired property and Government-furnished property as defined below. (1) "Contractor-acquired property" means property procured or otherwise provided by the Contractor for the performance of a contract, whether or not the Government has title by the terms of the contract or exercises its contractual right to take title. (2) "Government-furnished property" means property in the possession of or acquired directly by the Government, and subsequently delivered or otherwise made available to the Contractor. (b) The term "subcontract" means any contract, as defined in § 1-1.208 of the Federal Procurement Regulations (41 CFR 11.208), other than a prime contract, entered into by a prime contractor or a subcontractor, calling for supplies or services required for the performance of any one or more prime contracts. (c) The term "scrap" means property which has no reasonable prospect of being sold except for the recovery value of its basic material content. NOW, THEREFORE, the parties hereto do mutually agree as follows: ARTICLE 1. The Contractor certifies that all contract termination inventory (including scrap) has been retained or otherwise acquired by him, sold to third parties, returned to suppliers, stored for the Govern |