SETTLEMENT PROPOSAL (INVENTORY BASIS)

OBM No.: 9000-0012
Expires:   05/31/98

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FOR USE BY A FIXED-PRICE PRIME CONTRACTOR OR FIXED-PRICE SUBCONTRACTOR

COMPANY

SUBCONTRACT OR PURCHASE ORDER NO(S).

STREET ADDRESS

CONTRACTOR WHO SENT NOTICE OF TERMINATION

CITY AND STATE (Include ZIP Code)

NAME

NAME OF GOVERNMENT AGENCY

ADDRESS (Include ZIP Code)

GOVERNMENT PRIME CONTRACT NO.

CONTRACTOR'S REFERENCE NO.

If moneys payable under the contract have been assigned, give the following:

NAME OF ASSIGNEE

EFFECTIVE DATE OF TERMINATION

ADDRESS (Include ZIP Code)

PROPOSAL NO.

CHECK ONE

 INTERIM

 FINAL

SF 1439, SCHEDULE OF ACCOUNTING INFORMATION

 IS

 IS NOT ATTACHED (If not, explain below)

SECTION I - STATUS OF CONTRACT OR ORDER AT EFFECTIVE DATE OF TERMINATION

FINISHED

UNFINISHED OR NOT COMMENCED

ON HAND

PRODUCTS COVERED BY TERMINATED CONTRACT OR PURCHASE ORDER
(a)

PREVIOUSLY
SHIPPED AND
INCOICED
(b)

PAYMENT TO BE RECEIVED THROUGH INVOICING
(c)

INCLUDED IN THIS PROPOSAL
(d)

TO BE COMPLETED
(Partial termination only)
(e)

NOT TO BE COMPLETED
(f)

TOTAL
COVERED BY
CONTRACT OR
ORDER
(g)

QUANTITY

$

QUANTITY

$

QUANTITY

$

SECTION II - PROPOSED SETTLEMENT

(Use Columns (b) and (c) only where previous proposal has been filed

NO.

ITEM

(a)

TOTAL PREVIOUSLY PROPOSED
(b)

INCREASE OR DECREASE BY THIS PROPOSAL
(c)

TOTAL  PROPOSE
TO DATE
(d)

FOR USE OF CONTRACTING AGENCY ONLY
(e)

1

METALS

2

RAW MATERIALS (other than metals)

3

PURCHASED PARTS

4

FINISHED COMPONENTS

5

MISCELLANEOUS INVENTORY

6

WORK-IN-PROGRESS

7

SPECIAL TOOLING AND SPECIAL TEST EQUIPMENT

8

OTHER COSTS (from Schedule B)

9

GENERAL AND ADMINISTRATIVE EXPENSED (from Schedule C)

10

TOTAL (Items 1 to 9 inclusive)

11

PROFIT (explain in Schedule D)

12

SETTLEMENT EXPENSES (from Schedule E)

13

TOTAL (Items 10 to 12 inclusive)

14

SETTLEMENTS WITH SUBCONTRACTORS (from Schedule F)

15

ACCEPTABLE FINISHED PRODUCT

16

GROSS PROPOSED SETTLEMENT (Items 13 thru 15)

17

DISPOSAL AND OTHER CREDITS (from Schedule G)

18

NET PROPOSED SETTLEMENT (Item 16 less 17)

19

ADVANCE, PROGRESS & PARTIAL PAYMENTS (from Schedule H)

20

NET PAYMENT REQUESTED (Item 18 less 19)

(When the space provided for any information is insufficient, continue on a separate sheet.)

SCHEDULE A - ANALYSIS OF INVENTORY COST (Items 4 and 6)

Furnish the following information (unless not reasonably available) for inventories of finished components and work-in-progress included in this proposal:

TOTAL DIRECT LABOR

TOTAL DIRECT MATERIALS

TOTAL INDIRECT EXPENSES

TOTAL

FINISHED COMPONENTS

WORK-IN-PROGRESS

NOTE: Individual items of small amounts may be grouped into a single entry in Schedules B, C, D and G.

SCHEDULE B - OTHER COSTS (Item 8)

ITEM

EXPLANATION

AMOUNT

FOR USE OF CONTRACTING AGENCY ONLY

SCHEDULE C - GENERAL AND ADMINISTRATIVE EXPENSES (Item 9)

DETAIL OF EXPENSES

AMOUNT

FOR USE OF CONTRACTING AGENCY ONLY

SCHEDULE D - PROFIT (Item 11)

EXPLANATION

AMOUNT

FOR USE OF CONTRACTING AGENCY ONLY

(Where the space provided for any information is insufficient, continue on a separate sheet.)

SCHEDULE E - SETTLEMENT EXPENSES (Item 12)

ITEM

EXPLANATION

AMOUNT

FOR USE OF CONTRACTING AGENCY ONLY

SCHEDULE F - SETTLEMENTS WITH IMMEDIATE SUBCONTRACTORS AND SUPPLIERS (Item 14)

NAME AND ADDRESS OF SUBCONTRACTOR

BRIEF DESCRIPTION OF PRODUCT CANCELLED

AMOUNT OF SETTLEMENT

FOR USE OF CONTRACTING AGENCY ONLY

                         SCHEDULE G - DISPOSAL AND OTHER CREDITS (Item 17)

DESCRIPTION

AMOUNT

FOR USE OF CONTRACTING AGENCY ONLY

(If practicable, show separately amount of disposal credits applicable to acceptable finished product included in Item 15.)

(Where the space provided for any information is insufficient, continue on a separate sheet.)

                     SCHEDULE H - ADVANCE, PROGRESS AND PARTIAL PAYMENTS (Item 19)

DATE

TYPE OF PAYMENT

AMOUNT

FOR USE OF CONTRACTING AGENCY ONLY

(Where the space provided for any information is insufficient, continue on a separate sheet.)

CERTIFICATE

This is to certity 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 14) 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 SUBCONTRACTOR'S 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 1435 (REV. 9-97)
Prescribed by GSA - FAR (48 CFR) 53.249(a)(2)