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(u practicable, show separately amount of disposel inedits applicable to acceptable pribed product reported. Formel 103-3) NOTE.- Individual itoms of small amounh may be prouped into a single entry in Schedules A, I, C, D, E, and G.
WHERE THE SACI PROVIDE FOR ANY INTOLATION IS INSUNKIONI, ANTACH SOALAR SUPOTTINO SCHEDUS
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MOM, ANACH KEPALAN we ORTIMO KHEDULOS
V ahMICATE THE UNDERSIGNED, individually art uthorized representative of the contractor, ceribes that he has exampioed this settlement proposal and that, to the bed of his knowledge and belief:
(1) As To CONTRACTOR'S OWN CHARGES. -The proposed settlement ( exclusive of charpes set forth in lien 14) and sup. porting schedules and explanations have been prepared from the books of account ind records of the contractor in ac. cordance with recognized commercial accounting practices; they include only those charges allocable to the terminated ponion of this contract; they have been prepared with knowledge that they will, or may, be used directly or indirectly as the basis of settlement of a claim or claims against the United States or an agency thereof; and the charges as stated we fair and reasonable.
(2) As To SUBCONTRACTORS' CHARGES.-(0) The contractor has examined. or caused to be examined, to an extent he considered adequate in the circumstances, the claims of his immediate subcontractors (exclusive of claims fled against such immediate subcontractors by Ibeir subrontractors); (b) the settlements on account of immediate subcontractors' own charges are fair and reasonable, said charges are allocable to the terminated ponion of this contract and said settlements were ne. cotiated in good faith and are not more favorable to his immediate subcontractors than those which the contractor would make if reimbursement by the Government were not involved; (c) the contractor has received from all bis immediate Subcontractors appropriate certificates with respect to their claims, which certibcates are substancidly in the form of this ceriħcate; and (d) the contractor has no information leading him to doube (i) the reasonableness of the settlements with more remote subcontractors, or (ii) that the charges for them are allocable to this cootract. Upon receipe by the con. tractor of amounts covering kentlements with his immediate subcontractors, the contractor will pay or credit tbem prompily with the amounts so received, to the extent that he has not previously done so. The term "subcontractor" as used above includes suppliers.
3. You should review any provisions of your contract relating to termination and consult your customer or contracting officer for further information. Government regulations pertaining the basis for determining a fair and reasonable to minonon sottlement are contained in Port 1-8. Federal Procurement o u ulations (41 CFR 1-8). Your claim for hair forcepshin shooty be prepared on the basis of the costs shown by made accounting records. Where your costs are not so show you may use any reasonable basis for estimating your costs which will provide for fair compensation for the preparations made and work done for the terminated portion of the contract, including a reason. able profit on such preparation and work.
PROFIT.- A reasonable profit with respect to the prepor otions you have made and work you have octually done for the terminated portion of your contract. No profit should be included with respect to work which has not been done, nor shall profit be included with respect to sollement expenses, or with respect to settlement with subcontractors.
S. If you use this form, your total charges being claimed (ling 5), must be less than $10,000.00. The government has the right to examine your books and records relative to this proposal, and if you are o subcontractor your customer must be satisfied with your proposol.
4. Generally your senlement proposal moy include under items 2, 3, and 4, the following: