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1. This Form No. B-2 is to be prepared as soon as information as to total contract cost can be completed.

2. Where schedules provided are too small, attach other schedules following the same form.

3. Include in Other Charges (Line 5 of Summary and Schedule B-2-c) all other charges applicable to the contract not previously included. Where costs are included for loss of useful value of production equipment or facilities of the type specified in Section 1 (f) of the Statement of Principles for Determination of Costs Upon Termination of Government Fixed Price

Supply Contracts, attach a statement explaining the determination of the charges.

4. In Schedule No. B-2-d, show the bases and computation of any profit included in line 7 of the summary.

5. While the "Contractor's Own Charges Schedule" copies of the Inventory Schedules C-1, C-2, and C-3 do not constitute the basis for the proposed settlement under the total cost basis, this Form B-2 should be supported by those inventory schedules. In the case of Inventory Schedule C-1, the inventory should be priced. In the case of Inventory Schedules C-2 and C-3, the inventory should be priced to the extent practicable. General Instructions for preparation of Settlement Proposals and for the use of these forms should be procured from the Government representative or contractor from whom the Termination Notice was received.

10-30-403-1

U. & GOVERNMENT PRINTING OFFICE

4 Back

Figure 6. Form No. B-2 (W. D., A. G. O. Form No. 246)-Continued.

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NOTE. The paper on which this form is printed can be used for reproduction by liquid process duplicating machines.

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OWN CHARGES.-The undersigned certifies that, to the best of its knowledge and belief, the summary of charges and supporting schedules and explanations have been prepared from the books of account and records of the undersigned in accordance with recognized commercial accounting practices; that they include only those charges allocable to the terminated portion of this contract; that the charges as stated are fair and reasonable; and that they have been prepared with knowledge that they will, or may, be used by contracting officers acting on behalf of the United States as the basis of settlement with the undersigned or with others. SUBCONTRACTORS' CHARGES.-The undersigned certifies that it has examined, or caused to be examined, to an extent which it considers adequate in the circumstances, the claims of its immediate suppliers (exclusive of charges arising from termination claims filed against such immediate suppliers by their suppliers) as summarized as item 8, that, in its opinion, the settlements of its immediate suppliers' own charges are fair and reasonable, said charges are allocable to the terminated portion of this contract, and said settlements were negotiated in good faith, and are not more favorable to its immediate suppliers than those which the undersigned would make if reimbursement by the Government were not involved. The undersigned certifies that it has no knowledge to doubt the reasonableness of the settlements with more remote suppliers or to doubt that the charges for them are allocable to this contract. The undersigned shall not be deemed to have made any representations with respect to the immediate and more remote suppliers' claims or the settlement thereof other than those expressed in this certificate.

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In accordance with terms of authorization letter from Contracting Officer dated 15 May 1944. Work in process

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Indirect

One lot of shell was in process. Material and labor costs were accumulated by a job order cost system. Indirect factory expense is applied at 150% of direct labor. factory expense for the fiscal year ended 31 Dec 1943 was 183.7% of direct labor. Finished units

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See Schedule A-2-f

W. D., A. G. O. Form No. 243 18 April 1944

10-99408-1

Front

Figure 7. Form No. A-2 (W. D., A. G. O. Form No. 243).

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Overall profit after renegotiation for year ended 31 Dec. 1943 was 12% of cost of sales

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1. This Form No. A-2 is to be prepared by the contractor as soon as cost information required in the summary can be determined.

2. If space provided in these schedules is not sufficient, attach additional sheets, using the same headings.

3. Inventory should be grouped in Schedule No. A-2-a by "Raw Materials, Purchased Parts, and Supplies" and "Work in Process," and separate cost totals should agree with amounts shown on Lines 1 and 2 of Summary. Explanations should be attached describing the methods followed in computing costs as shown in Schedule No. A-2-a and in Lines 2a, 2b, and 2c of the Summary.

591911°-44-5

4. An explanation should be attached as to the basis of allocation and calculation of the amount of general and administrative expense applicable to the inventory.

5. Include in Other Charges (Line 4 of Summary and Schedule A-2-b) all costs not previously included.

6. Subcontractors may include on line 15 any amounts applicable to
finished units completed at date of termination but not otherwise billed.
In that case, the inventory and any applicable disposal credits should be
listed in Schedule A-2-a. The total of these disposal credits should be
shown on line 16 of the Summary.

General Instructions for preparation of Settlement Proposals and for the use of these forms should be
procured from the Government representative or contractor from whom the Termination Notice was
received.
U. 3. GOVERNMENT PRINTING OFFICE 20-39400-1
Back

Figure 7. Form No. A-2 (W. D., A. G. O. Form No. 243)—Continued.

27

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NOTE.-The paper on which this form is printed can be used for reproduction by liquid process duplicating machines.

CERTIFICATE

OWN CHARGES.-The undersigned certifies that, to the best of its knowledge and belief, the summary of charges and supporting schedules and explanations have been prepared from the books of account and records of the undersigned in accordance with recognized commercial accounting practices; that they include only those charges allocable to this contract; that the charges as stated are fair and reasonable; and that they have been prepared with knowledge that they will, or may, be used by contracting officers acting on behalf of the United States as the basis of settlement with the undersigned or with others. SUBCONTRACTORS' CHARGES.-The undersigned certifies that it has examined, or caused to be examined, to an extent which it considers adequate in the circumstances, the claims of its immediate suppliers (exclusive of charges arising from termination claims filed against such immediate suppliers by their suppliers) as summarized as item 11, that, in its opinion, the settlements of its immediate suppliers' own charges are fair and reasonable, said charges are allocable to this contract, and said settlements were negotiated in good faith, and are not more favorable to its immediate suppliers than those which the undersigned would make if reimbursement by the Government were not involved. The undersigned certifies that it has no knowledge to doubt the reason. ableness of the settlements with more remote suppliers or to doubt that the charges for them are allocable to this contract. The undersigned shall not be deemed to have made any representations with respect to the immediate and more remote suppliers' claims or the settlement thereof other than those expressed in this certificate.

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General and administrative expense for fiscal year ended 31 Dec 1943 was 3.9% of cost of sales. It is estimated that the percentage will be at least that high in 1944.

SCHEDULE A-3-d

Name of Subcontractor

SETTLEMENTS WITH SUBCONTRACTORS

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LINE II OF SUMMARY
Amount of Actual
or Proposed
Settlement

Do NOT USE THIS
COLUMN

1,022.20

$6,104.90

$238.09

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1. This Form No. A-3 is to be prepared by the contractor as soon as cost information required in the Summary can be determined.

2. If space provided in these schedules is not sufficient, attach additional sheets, using the same headings. Inventory on hand at the date of termina tion should be grouped in Schedule A-3-a by Raw Materials, Purchased Parts, and Supplies," and "Work in Process." Costs should be shown to the greatest extent practicable for items included in this inventory listing. Subcontractors may also use this schedule for listing finished units on hand at date of termination not to be billed.

applicable to the entire contract. Where costs applicable to the inventory can be determined accurately, the contractor should present his proposal on Form A-2.

4. An explanation should be attached as to the bases of allocation and calculation of the amounts of indirect factory expenses (Line 3 of Summary) and general and administrative expense (Line 4 of Summary) applicable to the contract.

5. Include in Other Charges (Line 5 of Summary and Schedule A-3-b) all costs not previously included.

3. The costs shown in this Summary are those costs incurred which are
General Instructions for preparation of Settlement Proposals and for the use of these forms should be
procured from the Government representative or contractor from whom the Termination Notice was
received.

9. S. GOVERNMENT PRINTING OFFICE 16-39410-1

2 Back

Figure 8. Form No. A-3 (W. D., A. G. O. Form No. 244)—Continued.

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