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essary to estate te your midation toventory and that of your subeocoracture has been properly accused for. For detalled Information, see Subpart 1-85 of the Pederal Procurement Regulations 4: CFB 1-85

4 Completed End Items Subject to 11-8308 of the Federal Procurement Begalations (41 CFR 1-8.306.. you will invoice acceptable completed end items under the contract in the usual way and not include them in your settlement proposal

5. Patents. Your attention is called to any provisions of the contract which may require you to make a disclosure of, and to deliver to the Government instruments of license or assignment respecting, all inventions, discoveries, and patent applications made by you in the performance of the contract. You are urged to forward such disclosures and instruments of license or assignment to the Contracting Officer promptly Inasmuch as these contractural obligations must be complied with before execution of the final settlement agreement. This paragraph may be disregarded if the contract contains no such patent provisions.

4 Serciements with Subcontractors. You remain lacier your socotractors and suppilers for dams arising by reason of the tammanamcn of their subetaracts or orders. You are requested to settle such termination dams as promptly as possible. For purposes of reumaussemens of the Government, such settlemen's w be governed by the provinces at Part 1-8 of the Federal Procurement Regulations 4: CFR 1-8).

↑ Ofice Charge of Settlement. The Office samed below w be in charge of the settlement of your claim. As to any mattars not covered by this Notice, you shall consult the Office named below.

8. Acknowledgment of Receipt of Notice Please acknowledge receipt of this notice as shown below.

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§ 1-8.802 Formats of settlement proposal forms.

§ 1-8.802-1 Format 802-1, Settlement Proposal (Inventory Basis)-fixed-price type contracts.

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(b) Page 2 of Format 802-1.

SCHEDULE A—ANALYSIS OF INVENTORY COS: (liems 4 and 6). DE

Furnish the following information (unless not reasonably available) in respect to inventories of finished components and work in process included in this proposal:

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WHERE THE SPACE PROVIDED FOR ANY INFORMATION IS INSUFFICIENT, ATTACH SEPARATE SUPPORTING SCHEDULES

2

FOR USE OF CONTRAC AGENCY ONLY

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(If practicable, show separately amount of disposal credits applicable to acceptable finished product included in Item 15) NOTE.-Individual items of small amounts may be grouped into a single entry in Schedules B, C, D, E, and G.

WHERE THE SPACE PROVIDED FOR ANY INFORMATION IS INSUFFICIENT, ATTACH SEPARATE SUPPORTING SCHEDULES

FOR USE OF CONTRACTING AGENCY ONLY

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WHERE THE SPACE PROVIDED FOR ANY FORMATION INSPPUDENT, ATTACH SEPARATE SUPPORTING SCHEDULES

CERTIFICATE

THE UNDERSIGNED, individually and 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 14) and sup porting schedules and explanations have been prepared from the books of account and records of the contractor in ac cordance with recognized commercial accounting practices; they include only those charges allocable to the terminated portion 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 are fair and reasonable.

(2) AS TO SUBCONTractors' Charges.—(a) The contractor has examined, or caused to be examined, to an extent be considered adequate 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 negotiated 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 subcontractors 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 the charges for them are allocable to this contract. Upon receipt by the con tractor 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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