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(b) Page 2 of Format 802-3.

INSTRUCTIONS

1. This settlement proposal should be submitted to the contracting officer, if you are a prime contractor, or to your customer, if you are a subcontractor. The term contract as used hereafter includes a sub-contract or a purchase order.

2. Claims which would normally be included in a single settlement proposal, such as those based on a series of separate orders for the same item under one contract should be consolidated wherever possible, and must not be divided in such a way as to bring them below $10,000.00.

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 termination settlement are contained in Part 1-8, Federal Procurement eg ulations (41 CFR 1-8). Your claim for fair compensation should be prepared on the basis of the costs shown by your accounting records. Where your costs are not so shown 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 reasonable profit on such preparation and work.

4. Generally your settlement proposal may include under items 2, 3, and 4, the following:

[35 F.R. 6474, Apr. 23, 1970]

(a) COSTS.-Costs incurred which are reasonably necessary and are properly allocable to the terminated portion of your contract under recognized commercial accounting practices, including direct and indirect manufacturing, selling and distribution, administrative, and other costs and expenses incurred.

(b) SETTLEMENT WITH SUBCONTRACTORS. —Reasonable settlements of claims of subcontractors allocable to the terminated portion of the sub-contract. Copies of such settlements will be attacked hereto.

SE LEMENT EXPENSES.—Reasonable costs of protecting and preserving termination inventory in your possession and Ang of your claim.

PROFIT.-A reasonable profit with respect to the preparations you have made and work you have actually 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 settlement expenses, or with respect to settlement with subcontractors.

5. If you use this form, your total charges being claimed (line 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 a subcontractor your customer must be satisfied with your proposal.

• US. GOVERNMENT PRINTING OFFICE : 1962 OF-643710

§ 1-8.802-4 Contracts.

Format 802-4, Settlement Proposal for Cost-Reimbursement Type

SETTLEMENT PROPOSAL FOR COST-REIMBURSEMENT TYPE CONTRACTS

To be used by prime contractors sabmitting termination claims on cost-reimbursement type contracts under Part 1-8 of the Federal Procurement
Regulations (41 CFR 1-8). Also suitable for use in connection with terminated cost-reimbursement type subcontracts.
COMPANY

PROPOSAL NUMBER

CHECK ONE
PARTIAL

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SPECIME

The undersigned, individually and

CERTIFICATE

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authorized representative of the contractor, certifies that he has examined this

settlement proposal and that, to the best of his knowledge and belief:

(1) AS TO CONTRACTOR'S OWN CHARGES-The proposed settlement (exclusive of charges set forth in Item 10) and supporting schedules and explanations have been prepared from the books of account and records of the contractor in accordance with the terms of the contract; they include only those charges allocable to the terminated 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 are fair and reasonable.

(2) AS TO SUBCONTRACTORS' CHARGES—(a) The contractor has examined, or caused to be examined, to an extent he considered necessary in the circumstances, the claims of his immediate subcontractors (exclusive of claims filed against such immediate subcontractors by their subcontractors); (b) the settlements on account of immediate subcontractors' own charges are fair and reasonable, said charges are allocable to the terminated portion of this contract and said settlements were nego. tiated 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 his immediate subcon. tractors appropriate certificates with respect to their claims, which certificates are substantially in the form of this certificate; and (d) the contractor has no information leading him to doubt (i) the reasonableness of the settlements with more remote subcontractors, or (ii) that charges for them are allocable to this contract. Upon receipt by the contractor of amounts covering settlements with his immediate subcontractors, the contractor will pay or credit them promptly with the amounts so received, to the extent that he has not previously done so. The term subcontractor as used above includes suppliers.

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§ 1-8.803 Formats of inventory schedules.

§ 1-8.803-1 Format 803-1, Inventory Schedule A (Metals in Mill Product Form). (a) Page 1 of Format 803-1.

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(b) In addition, on the sheets for any such metal, list like forms of the metal or alloy together in sequence. For example, on the sheet or sheets used to list Carbon Steel, group together all the strip, then follow with the sheets, then the bar stock, etc.

8. DESCRIPTION (Column b).—Full commercial description and weight is required for all items.

C. CONDITION {Column c).-For purpose of indicating condition of material, the code indicated below should be used. quires the combination of a letter and a number in each int (as E4 or N2). Use the letter "X," without a number for rial considered to have no further value for use a orginally tended, but of possible salvage value other considered scrap, insert an "S."

CODE: N-NEW

E-Used-reconditioned

O-Used-usable without repairs R-Used-repairs required

scrop If

1-Excellent

2-Good

3-Fair

4-Poor

D. COST (Columns e and f).—Any generally recognized basis for costing inventory may be used, provided it has been regularly used by the contractor and properly reflects his costs.

E. COMMON ITEMS.—Any items of inventory reasonably usable, without loss to the contractor on his other work, because they are materials, parts, or components, common in nature to both the terminated contract and other work of the contractor, are not to be listed except for items the delivery of which has been required by the Government and except for Government-furnished property. (See Inventory Schedule Certificate.)

F. PROCEEDS OF AUTHORIZED SALE (Column g).—Insert the letter "A" after the amount if the sale (or credit for acquisition) has been authorized or approved by the contracting officer or customer. Insert the letter "C" if the amount represents your offer to acquire or sell. In either case, quantity should also be shown (on a second line) if less than the full quantity shown in column d.

G. GOVERNMENT OWNED PROPERTY

Le Government furnished property should be listed on sep. rate Media Marked to show that the items are Governmentfundisho

Where Title to materials purchased by the contractor is in the Government, such materials should be listed and ost data supplied.

H. MISCELLANEOUS

(a) Separate Schedules.—If the space provided for any information called for is insufficient, attach separate supporting schedules.

(b) Continuation Sheets.-Use Format 803-2 whenever more than one page is required.

(c) Number of Copies.-The number of sets of inventory schedules required will be indicated by the contracting officer or the customer from whom the notice of termination is received.

§ 1-8.803-2 Format 803-2, Inventory Schedule A-Continuation Sheet (Metals in Mill Product Form).

INVENTORY SCHEDULE A-CONTINUATION SHEET (METALS IN MILL PRODUCT FORM)

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