(b) Page 2 of Optional Form 59.

NOTE 9. Lorde materials sold or transferred between your plants in or organizations under a common control at other then cost to the final transterror and provide explanation of pricing mejod d.

Loadicate the rates used and provide an appropriate exWhere agreement has been reached with Government repreives on the use of forward pricing rates, describe the nature of The agreement. Provide the method of computation and application of Our overhead expense, including cost break down, and showing trends and budgetary data as necessary to provide a basis for evaluation of the reasonableness of proposed rates.

NOTE 12. Provide a separate breakdown of labor by job category and furnish basis for cost estimates.

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 requeste.! 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.

OPTIONAL FORM 59 (10-17)

(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 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:

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 valuation of such cost or pricing data, along with the computa tions and projections used therein. This right may be exercised in con. nestin with any negotiations prior to contract award.