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<br />2373 <br /> <br />. <br /> <br />c. Monthly rates.- The sum of allowances for <br />depreci ati on, storage, insurance, and taxes <br />computed in accordance with the formulae under <br />Subparagraphs a. and b. shall constitute the <br />monthly cost of ownership of equipment. In the <br />application of ownership expense rates for the use <br />of equipment, a month for each item will be <br />considered as a period of thirty \30) calendar days <br />measured consecutively, beginning with the first day <br />the equipment is operated on the work covered by <br />the order. The monthly rates will not be subject to <br />deductions for Saturdays Sundays, or holidays and <br />will be allowed for the full calendar period of use. <br /> <br />.. <br /> <br />. <br /> <br />d. Shift rates.-Shift rateS will be determined by <br />dividing the monthly rates by 26. A shift will be <br />considered as a continuous operating period of 8 <br />hours, and the shift rate shall be used whenever <br />regular use is required for less than 1 month. <br />Allowances for use for less than one full shift when <br />working on a shift basis will be made at a rate <br />proportional to the full shift rate and allowance will <br />not be made for idle time, except as specifically <br />provided for in Subparagraph f. hereof. No <br />allowance will be made for Saturdays, Sundays, or <br />holidays, when work is not actually performed. <br /> <br />. <br /> <br />e. Extra shift rates.-Extra shift rates shall be <br />applied to the second and third shifts whenever the <br />equipment is used for more than one shift on any 1 <br />day. The extra shift rate shall be 50 percent of the <br />basic single shift rate for each extra shift of actual <br />use. Allowances for use, for less than a full extra <br />shift, will be made at a rate proportional to the <br />extra shift rate. <br /> <br />~ <br /> <br />f. Idle time.-Dwnership expense allowance for idle <br />time of equipment allowed under Clauses No. 3 and <br />4 will be made on the basis of 50 percent of the first <br />shift rate for each regular working day. A maximum <br />of five shifts per week or 40 hours per week will be <br />allowed. This 50 percent factor shall be applied to <br />ownership rates allowed for working time. For any <br />period of idle time less than 8 hours within a regular <br />working day, allowance will be made at a rate <br />proportional to 50 percent of the first shift rate. <br />Periods of time less than 2 hours on which <br />equipment is down for normal and regular servicing <br />and for minor field repair or field maintenance shall <br />be considered as operating rather than idle time and <br />such periods will not be deducted from use or <br />operating time. No allowance will be made as idle <br />time for equipment which is not in good operating <br />condition. This paragraph shall not apply to <br />adjustments under Clause No. 4A. <br /> <br />t" <br /> <br />. <br /> <br />Par. 14 <br /> <br />g. Small tools.-Small tools shall mean all items <br />. having a replacement value of less than four <br />hundred dollars ($4001. For modifications in excess <br />of $100000 small tool allowances shall be made <br />based on information furnished by the contractor. <br />For contract modifications amounting to less than <br />$100.000, at the option of the contracting officer, <br />an allowance for small tools not to exceed 5 percent <br />of direct labor may be made where appropriate. <br /> <br />h. Equipment ownership expense under Clause No. <br />4A.-Allowances for equipment ownership under <br />Clause No. 4A shall be made on the basis of <br />depreciation only, based on acceptable evidence <br />thereof furnished by the contractor. <br /> <br />i. Equipment operating expense.-Allowances for <br />the cost of operating equipment such as operating <br />crew labor, servicing labor and equipment, labor and <br />parts for all repairs. fuel, oil, grease, and supplies <br />will be made in addition to the amounts allowed for <br />equipment ownership expense. Equipment <br />operating expense allowances shall be based an the <br />contractor's cost records or other sources complying <br />with 41 CFR Parts 1-3.8 and 1.15 as approved by <br />the contracting officer. For forward-priced <br />adjustments, operating expense figures developed <br />for use by the contractor in estimating or bidding <br />generally from historical accounting records or <br />actual cost experience under this contract will be <br />accepted if evidence thereof satisfactory to the <br />contracting officer is furnished. <br /> <br />15. PRICE REDUCTION FOR <br />DEFECTIVE COST OR PRICING <br />DATA--PRICE ADJUSTMENTS <br /> <br />a. This paragraph shall become operative only with <br />respect to any change or other modification of this <br />contract which involves a price adjustment in excess <br />of $100,000 that is not based on adequate price <br />competition, established catalog or market prices of <br />commercial items sold in substantial quantities to <br />the general public or prices set by law or regulation. <br />The right to price reduction under this paragraph <br />shall be limited to such price adjustments. <br /> <br />b. If the contracting officer determines that any <br />price, including profit or fee, negotiated in <br />connection with any price adjustment under this <br />contract was increased by any significant sums <br />because the contractor or any subcontractor, <br />pursuant to the paragraph of this contract entitled <br />"Subcontractor Cost or Pricing Data-Price <br />Adjustments" or any subcontract paragraph therein <br /> <br />9 <br />