SETTLEMENT PROPOSAL FOR COST-REIMBURSEMENT TYPE CONTRACTS

OMB No.: 9000-0012

Expires: 05/31/98

Public reporting burden for this collection of information is estimated to average 2.5 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to the FAR Secretariat (MVR), Federal Acquisition Policy Division, GSA, Washington, DC 20405.

To be used by prime contractors submitting settlement proposals on cost-reimbursement type contracts under Part 49 of the Federal Acquisition Regulation.  Also suitable for use in connection with terminated cost-reimbursement type subcontracts.

COMPANY

PROPOSAL NUMBER

CHECK ONE

PARTIALFINAL

STREET ADDRESS

GOVERNMENT PRIME

CONTRACT NO.

REFERENCE NO.

CITY AND STATE (Include ZIP Code)

EFFECTIVE DATE OF TERMINATION

ITEM

(a)

TOTAL PREVIOUSLY SUBMITTED

(b)

INCREASE OR DECREASE BY THIS PROPOSAL

(c)

TOTAL SUBMITTED TO DATE

(d)

1.  DIRECT MATERIAL

$

$

$

2.  DIRECT LABOR

3.  INDIRECT FACTORY EXPENSE

4.  SPECIAL TOOLING AND SPECIAL TEST EQUIPMENT

5.  OTHER COSTS

6.  GENERAL AND ADMINISTRATIVE EXPENSE

7.  TOTAL COST (Items 1 thru 61

$

$

$

8.  FEE

9.  SETTLEMENT EXPENSES

10.  SETTLEMENTS WITH SUBCONTRACTORS

11.  GROSS PROPOSED SETTLEMENT (Items 7 thru 10)

12.  DISPOSAL AND OTHER CREDITS

13.  NET PROPOSED SETTLEMENT (Item 11 less 12)

$

$

$

14.  PRIOR PAYMENTS TO CONTRACTOR

$

$

$

15.  NET PAYMENT REQUESTED (Item 13 less 14)

$

$

$

CERTIFICATE

This is to certify that the undersigned, individually, and as an authorized representative of the Contractor, has examined this termination settlement proposal and that, to the best knowledge and belief of the undersigned:

(a)  AS TO THE CONTRACTOR'S OWN CHARGES.  The proposed settlement (exclusive of charges set forth in Item 10) and sup­porting schedules and explanations have been prepared from the books of account and records of the Contractor in accordance 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 termination settlement proposal or claim against an agency of the United States; and the charges as stated are fair and reasonable.

(b)  AS TO THE SUBCONTRACTORS' CHARGES.  (1) The Contractor has examined, or caused to be examined, to an extent it considered adequate in the circumstances, the termination settlement proposals of its immediate subcontractors (exclusive of proposals filed against these immediate subcontractors by their subcontractors); (2) The settlements on account of immediate subcontractors' own charges are fair and reasonable, the charges are allocable to the terminated portion of this contract, and the settlements were negotiated in good faith and are not more favorable to its immediate subcontractors than those that the Contractor would make if reimbursement by the Government were not involved; (3) The Contractor has received from all its immediate subcontractors appropriate certificates with respect to their termination settlement proposals, which certificates are substantially in the form of this certificate; and (4) The Contractor has no information leading it 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 Contractor of amounts covering settlements with its immediate subcontractors, the Contractor will pay or credit them promptly with the amounts so received, to the extent that it has not previously done so.  The term "subcontractors" as used above, includes suppliers.

NOTE:  The Contractor shall, under conditions stated in FAR 15.403, be required to submit a Certificate of Current Cost or Pricing Data (see FAR 15.406-2 and 15.408 Table 15-2).

NAME OF CONTRACTOR

BY (Signature of authorized official)

TITLE

DATE

NAME OF SUPERVISORY ACCOUNTING OFFICIAL

TITLE

AUTHORIZED FOR LOCAL REPRODUCTION

Previous edition is unusable

STANDARD FORM 1437 (REV. 9-97)

Prescribed by GSA - FAR (48 CFR) 53.249(a)(4)