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(b) Page 2 of Optional Form 59.

IV. HAVE YOU BEEN AWARDED ANY CONTRACTS OR SUBCONTRACTS FOR SIMILAR ITEMS WITHIN THE PAST THREE YEARS? (If yes, show customer(s) and contract numbers on reverse or a separate puge)

YES NO

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NOTE 2. The use of this column is optional for pleine d
proposals, except where the contracting officer deferun
arate Optional Form 59 is required for selected li

NOTE 5. Attach separate pages as necessary and
umn the attachment in which the information

nfy in this fol. ppping the specific cost element may be found. No standard formal prescribed; how. ever, the cost or pricing data must be accurate, complete and current. and the judgment factors used in projecting from the data to the esti mates must be stated in sufficient detail to enable the Contracting Officer to evaluate the proposal. For example, provide the basis used for pricing the bill of materials such as by vendor quotations, shop estimates, or invoice prices; the reason for use of overhead rates which depart significantly from experienced rates (reduced volume, a planned major rearrangement, etc.) or justification for an increase in labor rates (anticipated wage and salary increases, etc.). Identify and explain any contingencies which are included in the proposed price, such as antic ipated costs of rejects and defective work, anticipated costs of engineer ing redesign and retesting, or anticipated technical difficulties in designing high-risk components.

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dicate the rates used and provide an appropriate ex here agreement has been reached with Government repre

ives on the use of forward pricing rates, describe the nature of The agreement. Provide the method of computation and application of Sour overhead expense, including cost breakdown, and showing trends and budgetary data as necessary to provide a basis for evaluation of the reasonableness of proposed rates.

NOTE 13. Include all other estimated costs feg.. special tooling, facili ties. special test equipment, special plant rearrangement, preservation packaging and packing, spoilage and rework, and warranty) which are not otherwise included. Identify separately each category of cost and provide supporting details. If the proposal is based on a F.O.B. destination price, indicate separately all outbound transportation costs included in total amount.

NOTE 14. If the total cost entered here is in excess of $250, provide on a separate page the following information on each separate item of royalty or license fee: name and address of licensor; date of license agreement; patent numbers, patent application serial numbers, or other basis on which the royalty is payable; brief description, including any part or model numbers of each contract item or component on which the royalty is payable; percentage or dollar rate of royalty per unit; unit price of contract item; number of units; and total dollar amount of royalties In addition, if specifically requested by the contracting officer, a copy of the current license agreement and identification of applicable claims of specific patents shall be provided.

NOTE 15. Selling price must include any applicable Federal excise tax on finished articles.

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§ 1-16.902-OF 60 Optional Form 60, Contract Pricing Proposal (Research and Development).

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(c) Page 3 of Optional Form 60.

INSTRUCTIONS TO OFFERORS,

1. The purpose of this form is to provide a standard format by which the offeror submits to the Government a summary of incurred and estimated costs (and attached supporting information) suitable for detailed review and analysis. Prior to the award of a contract resulting from this proposal the offeror shall, under the conditions stated in FPR 1-3.807-3 be required to submit a Certificate of Current Cost of Pricing Data (See FPR 1-3.807-3(h) and 1-3.807-4).

2. In addition to the specific information required by this form, the offeror is expected, in good faith, to incorporate in and submit with this form any additional data, supporting schedules, or substantiation which are reasonably required for the conduct of an appropriate review and analysis in the light of the specific facts of this procurement. For effective negotiations, it is essential that there be a clear under. standing of:

a. The existing, verifable data.

b. The judgmental factors applied in projecting from known data to the estimate, and

c. The contingencies used by the offeror in his proposed price. In short, the offeror's estimating process itself needs to be disclosed.

3. When attachment of supporting cost or pricing data to this form is impracticable, the data will be described (with schedules as appropriate). and made available to the contracting officer or his representative upon request.

4. The formats for the "Cost Elements" and the "Proposed Contract Estimate" are not intended as rigid requirements. These may be presented in different format with the prior approval of the Contracting Officer if required for more effective and efficient presentation. In all other respects this form will be completed and submitted without change.

5. By submission of this proposal the offeror grants to the Contracting Officer, or his authorized representative, the right to examine, for the purpose of verifying the cost or pricing data submitted, those books, records, documents and other supporting data which will permit ade quate evaluation of such cost or pricing data, along with the computa tions and projections used therein. This right may be exercised in con. nection with any negotiations prior to contract award.

FOOTNOTES

Enter in this column those necessary and reasonable costs which in the judgment of the offeror will properly be incurred in the efficient performance of the contract. When any of the costs in this column bare already bee incurred (e.g.. on a letter contract or change order), describe them attached supporting schedule. Identify all sales and transfers betten your plants, divisions, or organizations under a common control cluded at other than the lower of cost to the original tradema market price.

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2 When space in addition to that available in Exhibit lach separate pages as necessary and identify in this Ren the attachment in which the information supporting the may be found. No standard format is prescribed; however, the cost or pricing data must be accurate, complete and current, and the judgment factors used in projecting from the data to the estimates must be stated in sufficient detail to enable the Contracting Officer to evaluate the proposal. For ex ample, provide the basis used for pricing materials such as by vendor que lations, shop estimates, or invoice prices; the reason for use of overbead rates which depart significantly from experienced rates (reduced volume, a planned major re-arrangement, etc.); or justification for an increase in labor rates (anticipated wage and salary increases, etc.). Identify and explain any contingencies which are included in the proposed price, such as anticipated costs of rejects and defective work, or anticipated technical dificulties.

EN

and provide an appropriate explanation. Where Teached Government representatives on the use of cator ribe the nature of the agreement. Provide the Motion and application of your overhead expense, including And showing trends and budgetary data as necessary to Puli for evaluation of the reasonableness of proposed rates.

If the total cost entered here is in excess of $250, provide on a separuit Page the following information on each separate item of royalty or license fee name and address of licensor; date of license agreement; patent number. patent application serial numbers, or other basis on which the royalty n parable: brief description, including any part or model numbers of each contract item or component on which the royalty is payable: percentage or dollar rate of royalty per unit: unit price of contract item; number of units, and total dollar amount of royalties. In addition, if specifically requested by the contracting officer, a copy of the current license agreement and identification of applicable claims of specific patents shall be provided. •Provide a list of principal items within each category indicating known or aninipated source, quantity, unit price, competition obtained, and basis of establishing source and reasonableness of cost.

CONTINUATION OF EXHIBIT A—SUPPORTING SCHEDULE AND REPLIES TO QUESTIONS || AND V.

OPTIONAL FORM 60 (10-71)

[37 FR 612, Jan. 14, 1972]

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