TERMINATION INVENTORY SCHEDULE-WORK IN PROCESS Form 2c-Office of Contract Settlement Form Approved. A prime contract with the Govt. or Subcontract(s) or purchase order(s) with. If property has commercial value, furnish full commercial description. Otherwise furnish description sufficient to enable contracting officer to determine appropriate disposition thereof Estimated weight Unit Quantity of meas Cost (Information in col. 5 need not be S= Scrap given if not reasonably available) Contractor's offer (C), or rec Proceeds of om Leave ure authorized mend blank ed sale (A)* Use col. 8 for contractor's offer and for proceeds of an authorized sale. Indicate former by "C" and latter by "A" after dollar amount. quantity (on a second line) if less than col. 4. Page pages NOTE: See Instructions, par. 25, concerning certificate. See Instructions, par. 26, concerning Govt. owned property. TERMINATION INVENTORY SCHEDULE Form Approved. (Dies, Jigs, Fixtures, etc., and Special Tools) Property classification. (See instructions).. Form 2d-Office of Contract Settlement Use col. 8 for contractor's offer and for proceeds of an authorized sale. Indicate former by "C" and latter by "A" after dollar amount. Show quantity (on a second line) if less than col. 4. NOTE: See Instructions, par. 25, concerning certificate. Bee Instructions. par. 26, concerning Govt. owned property (State) SCHEDULE OF ACCOUNTING INFORMATION Form Approved. Budget Bureau No. 17-R008. Forms printed in the FEDERAL REGISTER are for information only, and do not follow the exact format prescribed by the issuing agency. This proposal applies to (check one): A prime contract with the Government, or Subcontract or purchase order No. (s) (Name and address of contractor who sent Notice of Termination) with 625507-45-SUPP. VII-BK. 2-94 Page 3111 1. Furnish name, title, address, and telephone number of an individual in your organization from whom additional information may be requested on questions relating to (1) accounting matters; (2) property disposal: (1) (2) 2. Are the accounts of the contractor subject to regular periodic examination by independent public accountants? Yes No . 3. Furnish the name and address of any accountants who have reviewed or assisted in the preparation of the attached proposal. 4. Furnish the name and address of any governmental agency which has reviewed your accounts in connection with a prior settlement proposal. 5. Have there been any significant deviations from your regular accounting procedures and policies in arriving at the costs set forth in the attached proposal? Yes☐ No. If YES, explain briefly. 6. Were the detailed cost records used in preparing this proposal controlled by and in agreement with your general books of account? Yes No. 7. Were inventory quantities based on a physical count as of the date of termination? Yes No □. If NO, explain exceptions. 8. If this settlement proposal is based on standard costs and such costs are in excess of actual, has proper adjustment thereof for any significant variations been made? Yes No . If NO, explain. 9. Does this proposal include charges for major inventory items and claims of subcontractors common to this terminated contract and other work of the contractor? Yes No . I YES, furnish information as to the method used in allocating amounts to the terminated portion of this contract. 10. Explain briefly your method of pricing inventories, indicating whether material handling cost has been included in charges for materials. 11. Are any parts, materials, or finished product, known to be defective, included in the inventories? Yes No . If YES, explain. 12. Have any charges been included in this proposal in respect of severance, dismissal, or separation pay? Yes No. If YES. furnish brief explanation and estimates of amounts included. 13. Does this proposal include any element of profit to the contractor or a related organization, other than profit set forth separately in the proposal or included in the contract price at which acceptable finished product, if any, is included in the proposal? Yes No If YES, explain briefly. 14. Describe briefly the nature of indirect expense items included in inventory costs (see Schedule A, Form 1); and explain your method of allocation used in preparing this proposal, including if practicable, the rates used and the period of time upon which they are based. 15. Do the costs set forth in the attached proposal include provisions for any reserves other than normal depreciation reserves? Yes No . If YES, list such reserves. CHAPTER XXI-OFFICE OF WAR MOBILIZATION AND RECONVERSION [ADDED] PART 8101-TERMINATION OF WAR CONTRACTS CUT-OFF POINT FOR WORK IN PROCESS Sec. 8101.1 Processing of uncompleted items. 8101.2 Retention of work-in-process by contractor. 8101.3 Taking over of contracts by other agencies or governments. AUTHORITY: §§ 8101.1 to 8101.3, inclusive, issued under 58 Stat. 785, 787; 50 U.S.C., App., Sup., 1651 (c) (2), 1657. SOURCE: §§ 8101.1 to 8101.3, inclusive, contained in Regulations, Director, Oct. 24, 1944, 9 F.R. 12850. § 8101.1 Processing of uncompleted items. Production under war contracts should not be continued for items or quantities beyond military needs, and processing will be stopped immediately upon notification of termination covering the items concerned, regardless of the state of completion thereof, except where it is considered that additional processing is required for reasons of safety, to clear or avoid damage to production equipment, or to avoid immediate complete spoilage of work-in-process having a definite commercial value. Such additional processing should be carried out to the first practical stopwork stage: Provided, That no new materials will be introduced into the process for the purpose of producing a completed article, except to the extent required by the above. Contracting agencies should agree, to the greatest extent practicable, with contractors in advance of termination or specify in the notice of termination, the points or stages at which work under a terminated war contract is to be stopped. § 8101.2 Retention of work-in-process by contractor. Where, in advance of termination, the contractor agrees to retain work-in-process for the purpose of continuing production for his own account, work will be halted as necessary and the inventory checked at such points or stages of production agreed to in accordance with § 8101.1. The agreed retention values of the work-in-process to be retained by the contractor shall be an amount which, in the opinion of the contracting officer from available data, is greater than the net proceeds that could reasonably be expected to be obtained if the work-in-process were offered for general sale and would result in a saving in the amount which would otherwise have been payable by the Government as fair compensation for the termination of the contract. Where a contractor and the contracting agency are unable to agree upon a reasonable retention value, contracting agencies are authorized to continue production to prevent an undue loss to the Government on the production to date: Provided, That in the opinion of the contracting agency from available data, the realizable values of the work-in-process if work were halted immediately, plus the cost of additional processing to get a usable end product or component, would be less than the amount obtainable at such stage at which there is a reasonably ascertainable use or opportunity to dispose of the item. § 8101.3 Taking over of contracts by other agencies or governments. Where the end item is desired for use by any responsible governmental agency other than the contracting agency or by responsible civilian agencies for use in civil relief for liberated and occupied countries, work-in-process should be completed to the extent desired by such agencies. Such completion should be authorized, however, only when advance arrangements have been made with these governmental or civilian agencies to take over specific contracts at the contract price. |