COST ELEMENTS

(1)

PROPOSED CONTRACT ESTIMATE-
TOTAL COST
(2)

PROPOSED CONTRACT ESTIMATE-
UNIT COST
(3)

REFERENCE

(4)

Column

Instruction

(1)

Enter appropriate cost elements.

(2)

Enter those necessary and reasonable costs that, in your judgment, will properly be incurred in efficient contract performance. When any of the costs in this column have already been incurred (e.g., under a letter contract), describe them on an attached supporting page. When preproduction or startup costs are significant, or when specifically requested to do so by the Contracting Officer, provide a full identification and explanation of them.

(3)

Optional, unless required by the Contracting Officer.

(4)

Identify the attachment in which the information supporting the specific cost element may be found.

COST ELEMENTS


(1)

ESTIMATED COST
OF ALL WORK
DELETED
(2)

COST OF DELETED
WORK ALREADY
PERFORMED
(3)

NET COST TO BE
DELETED

(4)

COST OF WORK
ADDED

(5)

NET COST OF
CHANGE

(6)

REFERENCE


(7)

Column

Instruction

(1)

Enter appropriate cost elements.

(2)

Include the current estimates of what the cost would have been to complete the deleted work not yet performed (not the original proposal estimates), and the cost of deleted work already performed.

(3)

Include the incurred cost of deleted work already performed, using actuals incurred if possible, or, if actuals are not available, estimates from your accounting records. Attach a detailed inventory of work, materials, parts, components, and hardware already purchased, manufactured, or performed and deleted by the change, indicating the cost and proposed disposition of each line item. Also, if you desire to retain these items or any portion of them, indicate the amount offered for them.

(4)

Enter the net cost to be deleted, which is the estimated cost of all deleted work less the cost of deleted work already performed. Column (2) minus Column (3) equals Column (4).

(5)

Enter your estimate for cost of work added by the change. When nonrecurring costs are significant, or when specifically requested to do so by the Contracting Officer, provide a full identification and explanation of them. When any of the costs in this column have already been incurred, describe them on an attached supporting schedule.

(6)

Enter the net cost of change, which is the cost of work added, less the net cost to be deleted. Column (5) minus Column (4) equals Column (6). When this result is negative, place the amount in parentheses.

(7)

Identify the attachment in which the information supporting the specific cost element may be found.

CUTOFF DATE

(1)

NUMBER OF UNITS
COMPLETED
(2)

NUMBER OF UNITS
TO BE COMPLETED
(3)

CONTRACT
AMOUNT
(4)

REDERTERMINATION
PROPOSAL
AMOUNT
(5)

DIFFERENCE
(6)

COST ELEMENTS

(7)

INCURRED COST-
PREPRODUCTION

(8)

INCURRED COST-
COMPLETED UNITS

(9)

INCURRED COST-
WORK IN
PROGRESS
(10)

TOTAL INCURRED COST
(11)

ESTIMATED COST TO COMPLETE
(12)

ESTIMATED TOTAL COST
(13)

REFERENCE
(14)

Column

Instruction

(1)

Enter the cutoff date required by the contract, if applicable.

(2)

Enter the number of units completed during the period for which experienced costs of production are being submitted.

(3)

Enter the number of units remaining to be completed under the contract.

(4)

Enter the cumulative contract amount.

(5)

Enter your redetermination proposal amount.

(6)

Enter the difference between the contract amount and the redetermination proposal amount. When this result is negative, place the amount in parentheses. Column (4) minus Column (5) equals Column (6).

(7)

Enter appropriate cost elements. When residual inventory exists, the final costs established under fixed-price-incentive and fixed-price-redeterminable arrangements should be net of the fair market value of such inventory. In support of subcontract costs, submit a listing of all subcontracts subject to repricing action, annotated as to their status.

(8)

Enter all costs incurred under the contract before starting production and other nonrecurring costs (usually referred to as startup costs) from your books and records as of the cutoff date. These include such costs as preproduction engineering, special plant rearrangement, training program, and any identifiable nonrecurring costs such as initial rework, spoilage, pilot runs, etc. In the event the amounts are not segregated in or otherwise available from your records, enter in this column your best estimates. Explain the basis for each estimate and how the costs are charged on your accounting records (e.g., included in production costs as direct engineering labor, charged to manufacturing overhead). Also show how the costs would be allocated to the units at their various stages of contract completion.

(9)

Enter in Column (9) the production costs from your books and records (exclusive of preproduction costs reported in Column (8)) of the units completed as of the cutoff date.

(10)

Enter in Column (10) the costs of work in process as determined from your records or inventories at the cutoff date. When the amounts for work in process are not available in your records but reliable estimates for them can be made, enter the estimated amounts in Column (10) and enter in column (9) the differences between the total incurred costs (exclusive of preproduction costs) as of the cutoff date and these estimates. Explain the basis for the estimates, including identification of any provision for experienced or anticipated allowances, such as shrinkage, rework, design changes, etc. Furnish experienced unit or lot costs (or labor hours) from inception of contract to the cutoff date, improvement curves, and any other available production cost history pertaining to the item(s) to which your proposal relates.

(11)

Enter total incurred costs (Total of Columns (8), (9), and (10)).

(12)

Enter those necessary and reasonable costs that in your judgment will properly be incurred in completing the remaining work to be performed under the contract with respect to the item(s) to which your proposal relates.

(13)

Enter total estimated cost (Total of Columns (11) and (12)).

(14)

Identify the attachment in which the information supporting the specific cost element may be found.

(Attach separate pages as necessary.)