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<br />INSTRUCTIONS TO OFFERORS
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<br />l. The purp05~ of this form is [0 provid~ a standard format by which
<br />the offeror submits CO the Govt'rnment a summary of inCUUt'd and
<br />estimdted costs (1I1Id atltuhul mpporlillg infor/lIlllioll) suitable fOf de-
<br />tailed review and analysis. Prior [0 the award of a contcact resulting
<br />from this proposal the offeror shall, under the conditions Stated in
<br />FPR 1-.~.807-3 be required [0 submit a Cenincut' of Currt'nt Cost or
<br />Pricing Data (See FPR 1-3.807-3(h) and 1-3.807-4).
<br />
<br />2. In addition to the specific information required by this form, the
<br />offeror is expected, in good faith, to incorporate in and submit with
<br />this form any additional dac;I., supporting schedules, or substantiation
<br />which are reasonably required for the conduct of an appropriate re-
<br />view and analysis in the light of th~ spedfic facts of this procurement.
<br />For effective negotiations, it i) essential that there be a clear under.
<br />standing of:
<br />
<br />a. The existing, verifiable data.
<br />b. The judgmental factors applied in projecting from known data
<br />to the estimate, and
<br />c. The contingencies used by the offeror in his proposed price.
<br />
<br />In shon, the offeror's estimating process itself needs to be disclosed.
<br />
<br />3. When attachlllent of supporrinf( cost or pricing data to this form is
<br />impracticable, the data will be described (u'ith rcheduler a.l approprl~lte),
<br />and made availabl..' to the contracting officer or his representati\e upon
<br />request.
<br />
<br />4. The formats for the "Cost Elern~nt)' and the "Proposed Contract
<br />Estimate" are not intended as rigid requirements. These may be pre-
<br />sented in different format with the prior approval or the Contracting
<br />OffiCer if required for more effective and efficient presentation. In all
<br />other respects this form will be completed and submitted without
<br />change.
<br />S. By submission of this proposal the offeror grants to the Contracting
<br />Officer, or his authorized representative, the right to examine, for the
<br />purpose of verifying the cost or pricing data submiued, those books,
<br />records, documents and other supporting datA which will permit adl."
<br />quate evaluation of such cost or pricing data. along with the com put;!.
<br />tion) and projections used therein. This right may be exercised in con.
<br />nection with any negotiations prior to contract award.
<br />
<br />FOOTNOTES
<br />
<br />I Enter in thil colnlNH thou Heullary alld real01NJhle COllJ' U'hich iH the
<br />judgmtllt of the offeror u'ill properly he illcurred iN the efficieNt puforma/lu
<br />of the conlract. If'hen any of the cortr in thir COIlUNII bal'e already beeN
<br />incurred (e.g.. on a leller contract or chaNge order), describe thenl on an
<br />allached supporting lChedule, IdtHlify all wles and tra'lSfers belu'ttH YOllr
<br />planll, dh'hionl, or orgaNhatioNi' under a comlllON conlrol, u-hich are in-
<br />"uded al other lhan IIN lou'er of COli to Ihe originaltramferro, or currenl
<br />markel price,
<br />,} If/htH IPace in addition 10 tbat'Hailablt it/ Exhibit A. il required, al.
<br />tach sepllrllte pagel al t/eceHary and identify ill thh "Reference" columN
<br />the al/achme,,1 in u'hich the informalion supporting the lfJecific COlt element
<br />INay b, fOllnd, No standard formal is prtlCribed; hou'el~r, IIN cosioI' pric.
<br />mg data mUlt be accurate, comptete lI"d currtnt, a"d Ihe judgme"l factOI'I
<br />used in projecting from Ihe aahJ 10 tIN eltim4ter must be Itated ill lufficieNI
<br />delail to eNable Ihe ConlractiNg Offiur to ".aluatr Ihr "ropolal. For rx-
<br />ample, prol'ide Ihe b41is ured for pricing m41erialr luch as hy l'tndor quo'
<br />lationl, lhop ellhnales, or i",'oice pricel: the rt.alOH for use of oj'erhead ratel
<br />which d,parl significantly from t.\puienced ratel (redUful l'oIUllle, a
<br />planlltd major re-arrangr/Nellt, tlc.); or jnslificlltion for IIn iNfreau ill
<br />labor ralel (anlicipaled wage and J'alary illcreaus, tic,). Idellllfy alld e.\'-
<br />plaill any cOlllingencies u'hich 4re indudtd in Ihe proposed price, Inch as
<br />anticipaled cosll of rejects and dtfulh'e work, or anticiPaltd technical
<br />diffiCIIllies,
<br />
<br />J. Indicale the ratel uud and prol'ide a" appropriate e.\plallatioll, If/here
<br />agree/nent har beeu reached u'ith Gourlllnellt repreltntath'es on the uu of
<br />forward pricing raler, deurihe Ihe nature oflhe ag,ttment. Prol'ide the
<br />method of compntalion and applklltioll of your o/'trhead e.\penst, indudillg
<br />cosl brta/ldou,t/ and rhoU'ing trends and budgelary dala al necessary 10
<br />PNU.iJt a bash for el'aluation oftht realotlableness of propoud rales.
<br />4 If the lolal cosl tHttrta hue il ill t.wess of 12'0, prol'ide 0" a up,!rate
<br />page Ihe follou'ing inforlllaliot) on t,ach uparate iltm of royally or IUet/se
<br />fee; name and address of liunror,' date ofliut/se agrttment: patent num.
<br />berl, pattnl application serial numberl, or other basil on which th~ royalty
<br />il payable: brief rUlcriPtion, including any pari or moaelllumbtri of each
<br />cOt/tract item or CO/lIponolt on u'hich Ihe royally if payablt; peruntage or
<br />dollar rate of rOJaltJ pu unil; NlIit priu of contract ilem; number of
<br />unitl; and lotal do/lllr amount of royaltiel. In addition, if l/Hcifically rt.
<br />qutSted by the co"tracting OffiCtr, a copy of Ihe currenl licenJ'l! agrumenl
<br />and identification of applicable daiml of lPecific /14tenll shall be prol'ided.
<br />, PrOl'l'dt a lilt of prino"pal iteHIl within each calegory indicaliNg kNOU'~1
<br />or a"ticipalrd IOJirU, quaHtitJ, Jiuil price, compelilion obtained, and /hIm
<br />of establilhing source and rtaSOnableness of cosl,
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<br />CONTINUATION OF EXHIBIT A-SUPPORTING SCHEDULE AND REPLIES TO QUESTIONS II AND V.
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<br />OPTIONAL FORM 60 (1<>-71)
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