WSP05493

• File Number: 8146.100
• Description: Pueblo Dam - Project Description
• State: CO
• Basin: Arkansas
• Water Division: 2
• Date: 6/1/1964
• Author: US DoI BoR
• Title: Schedule General Provisions Specifications and Drawings - Initial Construction For Pueblo Dam
• Water Supply Pro - Doc Type: Report/Study

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Allowances for profit shall be made where
appropriate under these clauses pursuant to the
p'lnciples stated in 41 CFR Sec. 1-3.808. An
amount for interest (including any paid for capital
investments) may be considered in establishing an
allowable amount of profit

d. Truth in negotiation.- The proVISions of the
"Truth in Negotiation" regulations (41 CFR Part
1-31 are applicable to any modification of this
contract exceeding $100,000 in amount.

t4 EQUIPMENT OWNERSHIP AND
OPERATION EXPENSE

a General.-A.djustments allowed under Clause No.
3 or Clause No 4 of the General Provisions of this
contract may include allowances for ownership of
equioment owned by the contractor or any
subcontractor and available at the site of the work.
It will be normally anticipated that allowances for
equ~pment ownership will be made in accordance
\l\l'lth the average ownership expense schedule listed
in "Contractors' Equipment Ownership Expense" in
effect on the date of the contract, as published by
the Associated General Contractors of America
except as herein modified. However, the contracting
officer will allow equipment ownership expense
diffelent than that provided by the use of the AGC
schedule as modified nere;n if sufficient evidence of
the amount thereof complying with 41 CFR Parts
1.3.8 and 1-15 satisfactory to the contracting
officer is furnished

It is to be unoerstood that allowances for
eQuipment ownership and operating expense as
herein provideC1 are for equipment in good operating
condition only. If the AGC schedule is generally
used for an adjustment, rates allowed for equipment
ownership expense for the use of items of
equipment not listed by the AGC will be established
by agreement or by the contracting officer
conformably with items which are listed in the AGe
schedule The contractor shall furnish a complete
description of each item of equipment which is
involved in any request for adjustment, listing the
make, model, size, capacity, mounting, type of
power. and any and all accessory equipment which
is attached thereto for use under the particular work
to be pertOl med. The cost to be used for
establishing equipment allowance rates shall be the
fair market value of the equipment at the time it
commences work on the project. The contractor
sl"all furnish acceptable evidence of claimed fair
market value. If acceptable evidence of fair market

value is not supplied, the contracting officer may
determine the same by any means he may deem
appropriate, such as use of national publications
which list current average equipment values.

.

b. Equipment ownership allowances.-Allowances
for equipment ownership will be determined using
the AGC Manual as follows:

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(1) Depreciation.- The expense per working
month for depreciation will be determined by
multiplying the fair market value by the
percentage given in the column "Depreciation"
and dividing by the number listed in the column
"Average use months per year" modified as
necessary to reflect experience at the individual
project area. In accordance with the last sentence
in the first paragraph of Subparagraph a. above,
consideration will be given to shorter periOdS of
depreciation writeoff than provided in the AGe
Manual if the contractor supplies sufficient data
to establish his entitlement thereto, pursuant to
41 CFR Sec. 1-15.205-9.

..

(2) Storage, taxes, insurance, incidentals, and
equipment overhead.-The expense per wOfkiny
month will be determined by multiplying the fair
market value by 6 percent and dividing by the
average number of months use per year
determined as in (1) above. The amount allowed
hereunder shall not be duplicated in any general
allowance for overhead. (Note: No allowance is
made under this paragraph for interest on
investment. See 41 CFR Sec. 1-15.205-17.'

.

(3) Overhauling, major repairs, and painting.-

(a) For forward.priced adjustments, the
amount allowed will be the fair market value
multiplied by the percentage given in the
column headed "Overhauling, major repairs,
painting" and divided by the average number
of months use per year determined as in (1)
above.

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(b) Where agreement is not made until the
work has been accomplished, the allowances
for all repairs and overhau ling shall be made
on the basis of cost or cost experience records
maintained by the contractor.

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(4) Items having a replacement value of less than
$400 will be considered as small tools rather than
equipment.

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