(b) Page 2 of Optional Form 59.

NOTE 7. Include raw and processed material for the proposed con. tract in a form or state which requires further processing.

E0dicate the rates used and provide an appropriate es here agreement has been reached with Government repre ives on the use of forward pricing rates, describe the nature of The agreement. Provide the method of computation and application of Your overhead expense, including cost breakdown, and showing trends and budgetary data as necessary to provide a basis for evaluation of the reasonableness of proposed rates.

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 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.

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 Cost 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 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 on attached supporting schedule. Identify all sales and transfers between your plants, divisions, or organizations under a common control which fo cluded at other than the lower of cost to the original tranen market price.

2

When space in addition to that available in Exhib required at lach separate pages as necessary and identify in this "Referanc the attachment in which the information supporting the icon element may be found. No standard format is prescribed; however the 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 overbead 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.

EN

und and provide an appropriate explanation. Where Teached Government representatives on the use of rator, Motibe the nature of the agreement. Provide the union and application of your overhead expense, including and showing trends and budgetary data as necessary to els 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; patent num hers. patent application serial numbers, or other basis on which the royalty n parable: brief description, including any part or model numbers of each contrast stem 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 knoU'N or anthipated source. quantity, unit price, competition obtained, and basis of establishing source and reasonableness of cost.

OPTIONAL FORM 60 (10-71)

[37 FR 612, Jan. 14, 1972]