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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'

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NOTE 1. 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 been incurred (eg. on letter contract or change order). describe them on an attached supporting schedule. When preproduction" or "startup" costs are significant or when specifically requested in detail by the contracting officer, provide a full identica tion and explanation of same. Identify all sales and transfers between your plants, divisions, or organizations under a common control. which are included at other than the lower of cost to the original transferror or current market price.

NOTE 8. Include standard commercial items normally fabricated in hole or in part by you which are generally stocked in inventory. Provide explanation for inclusion at other than the lower of cost of urrent market price.

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materials sold or transferred between your organizations under a common control at other transferror and provide explanation of pricing

NOTE 2. The use of this column is optional for
proposals, except where the contracting officer deferin
arate Optional Form 59 is required for selected ligier)

NOTE 3. Attach separate pages as necessary and only in the ful.
umn the attachment in which the information
cost element may be found. No standard for

pping the specific 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 Ohcer 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 colume, a planned major rearrangement, etc.) or justihcation 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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derate the rates used and provide an appropriate exhere agreement has been reached with Government repre

ives on the use of forward pricing rates, describe the nature of he agreement. Provide the method of computation and application of suur 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 15. Include all other estimated costs feg.. special tooling. facili mes, special sest equipment, special plant rearrangement, preservation packaging and parking, 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.().B. desti nation 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 dullar 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 (Rescarch and Development).

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(c) Page 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 or Pricing Data (See FPR 1-3.007-3(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. steading of:

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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 eficient presentation. In all other respects this form will be completed and submitted withour 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 aluation of such cost or pricing data, along with the computa tions and projections used therein. This right may be exercised in conAestion with any negotiations prior to contract award.

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nd provide an appropriate explanation. Where Fear Gerernment representatives on the use of ribe the suture of the agreement. Provide the ion and application of your overbead expense, including nd bowing trends and budgetary data as necessary to 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 Je name and address of licensor: date of license agreement: patent numher patent application serial numbers, or other basis on which the royalty n parable: brief description, including any part or model numbers of each contrast 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 oranthipated 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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