(b) Page 2 of Optional Form 59.

NOTE 5. Attach separate pages as necessary and nfy in the Col. umn the attachment in which the information ppting the specific cost element may be found. No standard fora prescribed; how. ever, the cost or pricing data must be accurate, complete and current. and the judgment factors used in projecting from the data to the esti mates must be stated in sufficient detail to enable the Contracting Officer to evaluate the proposal. For example, provide the basis used for pricing the bill of materials such as by vendor quotations, shop estimates, or invoice prices; the reason for use of overhead rates which depart significantly from experienced rates (reduced volume, a planned major rearrangement, etc.): or justification for an increase in labor rates (anticipated wage and salary increases, etc.). Identify and explain any contingencies which are included in the proposed price, such as anticipated costs of rejects and defective work, anticipated costs of engineering redesign and retesting, or anticipated technical difficulties in designing high-risk components.

NOTE 7. Include raw and processed material for the proposed contract in a form or state which requires further processing.

0dicate the rates used and provide an appropriate exWhere agreement has been reached with Government repreives on the use of forward pricing rates, describe the nature of The agreement. Provide the method of computation and application of Your overhead expense, including cost break down, and showing trends and budgetary data as necessary to provide a basis for evaluation of the reasonableness of proposed rates.

NOTE 13. Include all other estimated costs (e.g.. special tooling. facili ties. special test equipment. special plant rearrangement, preservation packaging and packing. spoilage and rework, and warranty) which are not otherwise included. Identify separately each category of cost and provide supporting details. If the proposal is based on a F.O.B. destination price, indicate separately all outbound transportation costs included in total amount.

NOTE 14. If the total cost entered here is in excess of $250, provide on a separate page the following information on each separate item of royalty or license fee: name and address of licensor; date of license agreement; patent numbers, patent application serial numbers, or other basis on which the royalty is payable; brief description, including any part or model numbers of each contract item or component on which the royalty is payable; percentage or dollar rate of royalty per unit; unit price of contract item; number of units; and total doilar amount of royalties. In addition, if specifically requested by the contracting officer, a copy of the current license agreement and identification of applicable claims of specific patents shall be provided.

NOTE 15. Selling price must include any applicable Federal excise tax on finished articles.