(c) Page 3 of Optional Form 60.

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 Cust or 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 re. view 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, verihable 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 adequate evaluation of such cost or pricing data, along with the computa tions and projections used therein. This right may be exercised in connection with any negotiations prior to contract award.

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 have already bee incurred (e.g.. on a letter contract or change order), describe them on ou attached supporting schedule. Identify all sales and transfers betten your plants, divisions, or organizations under a common control which are in cluded at other than the lower of cost to the original trademar current market price.

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When space in addition to that available in Exibir required at lach separate pages as necessary and identify in this Referance" column the attachment in which the information supporting the ci con element may be found. No standard format is prescribed; however. We 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 quelations, shop estimates, or invoice prices: the reason for use of overhead 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 difficulties.

JEN

rates and and provide an appropriate explanation. Where Feached Government representatives on the use of cator. Moribe the nature of the agreement. Provide the wion and application of your overhead expense, including nd showing trends and budgetary data as necessary to s for evaluation of the reasonableness of proposed rates.

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 Jee name and address of licensor: date of license agreement; putent numhers, patent application serial numbers, or other basis on which the royalty

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 waits 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.

OPTIONAL FORM 60 (10-71)

[37 FR 612, Jan. 14, 1972]