SETTLEMENT PROPOSAL (TOTAL COST BASIS)

OMB No.: 9000-0012
Expires:   06/30/2004

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

THIS PROPOSAL APPLIES TO (Check one)

COMPANY

 A PRIME CONTRACT WITH THE GOVERNMENT

 SUBCONTRACT OR PURCHASE ORDFR

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

PRODUCTS COVERED

ON

HAND

COMMENCED

TOTAL COVERED

BY TERMINATED CONTRACT

OR PURCHASE ORDER

PREVIOUSLY SHIPPED AND INVOICED

PAYMENT TO BE RECEIVED THROUGH INVOICING

PAYMENT NOT TO BE RECEIVED THROUGH INVOICING

SUBSEQUENTLY COMPLETED AND INVOICED*

NOT TO BE COMPLETED

BY CONTRACT OR ORDER

(a)

(b)

(c)

(d)

(e)

(f)

(g)

QUANTITY

$

QUANTITY

$

QUANTITY

$

SECTION II - PROPOSED SETTLEMENT

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

TOTAL

FOR USE OF

NO.

ITEM

(a)

TOTAL PREVIOUSLY PROPOSED

(b)

INCREASE OR DECREASE BY THIS PROPOSAL

(c)

PROPOSED TO DATE

(d)

CONTRACTING AGENCY ONLY

(e)

1

DIRECT MATERIAL

2

DIRECT LABOR

3

INDIRECT FACTORY EXPENSE (from Schedule A)

4

SPECIAL TOOLING AND SPECIAL TEST EQUIPMENT (SF 1428)

5

OTHER COSTS (from Schedule B)

6

GENERAL AND ADMINISTRATIVE EXPENSES (from Schedule C)

7

TOTAL COSTS (Items 1 thru 6)

8

PROFIT (Explain in Schedule D)

9

TOTAL (Items 7 and 8)

10

DEDUCT FINISHED PRODUCT INVOICED OR TO BE INVOICED*

11

TOTAL (Item 9 less Item 10)

12

SETTLEMENT EXPENSES (from Schedule E)

13

TOTAL (Items 11 and 12)

14

SETTLEMENTS WITH SUBCONTRACTORS (from Schedule F)

15

GROSS PROPOSED SETTLEMENT (Items 13 thru 14)

16

DISPOSAL AND OTHER CREDITS (from Schedule G)

17

NET PROPOSED SETTLEMENT (Item 15 less 16)

18

ADVANCE, PROGRESS & PARTIAL PAYMENTS (from Schedule H)

19

NET PAYMENT REQUESTED (Item 17 less 18)

* Column (e), Section I, should only be used in the event of a partial termination, in which the total cost reported in Section II should be accumulated to date of completion of the continued portion of the contract and the deduction for finished product (Item 10, Section II) should be the contract price of finished product in Column (b), (c), and (e), Section I.

NOTE:  File inventory schedule (SF 1428) for allocable inventories on hand at date of termination (See 49.206).

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

SCHEDULE A - INDIRECT FACTORY EXPENSE (Item 3)

DETAIL OF EXPENSES

METHOD OF ALLOCATION

AMOUNT

FUR USE OF CONTRACTING AGENCY ONLY

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

SCHEDULE B - OTHER COSTS (Item 5)

ITEM

EXPLANATION

AMOUNT

FOR USE OF CONTRACTING AGENCY ONLY

SCHEDULE C - GENERAL AND ADMINISTRATIVE EXPENSES (Item 6)

DETAIL OF EXPENSES

METHOD OF ALLOCATION

AMOUNT

FOR USE OF CONTRACTING AGENCY ONLY

SCHEDULE D - PROFIT (Item 8)

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

FUR USE OF CONTRACTING AGENCY ONLY

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

NAME AND ADDRESS OF SUBCONTRACTOR

BRIEF DESCRIPTION OF PRODUCT CANCELED

AMOUNT OF SETTLEMENT

FUR USE OF CONTRACTING AGENCY ONLY

SCHEDULE G - DISPOSAL AND OTHER CREDITS (Item 16)

DESCRIPTION

AMOUNT

FOR USE OF CONTRACTING AGENCY ONLY

(If practicable, show separately amount of disposal credits applicable to acceptable finished product included on SF 1428.)

(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 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 or 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 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 from 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 1436 (REV. 5/2004)
Prescribed by GSA – FAR (48 CFR) 53.240(a)(3)