Witnesseth that: Whereas the contractor's organization is specifically qualified and equipped to perform the work and/or services hereinafter described in the manner contemplated herein; and Whereas it has been determined that it is in the best interest of the Government to enter into such contract and to compensate the contractor for the work and/or services performed under this contract as set forth herein: Now, therefore, it is mutually agreed as follows: Article 1. scope of work SPECIAL PROVISIONS The contractor shall perform the work and/or services as described in the contractor's proposal and/or plan of operation attached hereto and incorporated herein by reference. Article 2. payment The Government agrees to pay the contractor as follows: Quarterly reimbursement for actual costs incurred upon receipt and approval of technical progress reports and reports of expenditures, in triplicate, as of the dates indicated in articles 3 and 11. Final payment will be made upon receipt and approval of final technical report and final report of expenditures as required by articles 3 and 11. Article 3. technical reports and materials The contractor shall submit to the project officer for approval three copies of a technical progress report on activities to date on each of the following dates: August 31, 1965, November 30, 1965, February 28, 1966; and 50 copies of a final report on or before June 25, 1966. Article 4. Project director Work and services shall be conducted under the direction of Charles B. Nam. The Government reserves the right to approve any necessary successor to the project director named herein. If, for any reason, a new project director becomes necessary and if the contractor is unable to provide a new project director acceptable to the contracting officer, the contract will be terminated in accordance with article 17, general provisions. Article 5. Project officer The project officer responsible for administering this contract on behalf of the Government is Robert L. York. The project officer is not authorized to make any commitments or authorize any changes which affect the contract price, terms or conditions, any such changes shall be referred to the contracting officer for action. Article 6. Publications A. Any publication resulting from or primarily related to performance under this contract shall contain the following acknowledgment: The research reported herein was performed pursuant to a contract with the U.S. Department of Health, Education, and Welfare, Office of Education. B. The contractor shall provide the contracting officer with five copies of any publication resulting from or primarily related to the work performed under this contract. Article 7. Reproduction and use of data The contracting officer reserves the right to use and/or publish and to grant to any other parties the rights to use and/or publish any part or parts of any summary, abstract, or revision of the publication, reports, materials, and records resulting from this contract. The contractor agrees not to publish nor furnish to any other party any of the results of its work without the prior approval of the contracting officer. Article 8. Clearance of forms In the event the work performed involves the collection of identical information from 10 or more individuals or organizations, other than Federal employees or agencies, the contractor should submit to the contracting officer six copies of all questionnaire forms and survey plans for transmittal to the Bureau of the Budget for approval prior to their use, in accordance with the Federal Reports Act of 1942. 60-627-66-pt. 2-23 Article 9. Termination In the event this contract is terminated, the basic principles for the protection of the Government and the contractor set forth in article 17 of the general provisions shall apply. Termination procedures shall be through negotiation and mutual consent of the parties involved and in the event agreement cannot be reached, settlement will be subject to article 5-disputes, of the general provisions. Article 10. Government property The contractor shall exercise due care and prudence in the treatment of Government property furnished directly or purchased with funds under this contract in accordance with the provisions of article 18 of the general provisions. Final disposition of Government-owned property shall be in accordance with the direction of the contracting officer. Article 11. Fiscal reports The contractor shall submit to the project officer: A. An interim report of expenditures as of: August 31, 1965, November 30, 1965, February 28, 1966. B. A final report of expenditures within 30 days after the end of this contract. Article 12. Allowable costs A. For the performance of this contract, the Government shall pay to the contractor the costs determined by the contracting officer to be allowable in accordance with Federal Procurement Regulations Part 1-15, Contract Cost Principles and Procedures (41 CFR 1-15) as in effect on the date of this contract, and such other costs as may be specifically provided in this contract. Allowable costs shall include, but not necessarily be limited to, the following: (1) Direct costs: Salaries. Travel and per diem. Supplies. Communications. Computer services. Services from Bureau of Census. (2) Indirect, or overhead, costs at the provisional rate of 40 percent of salaries and wages, pending determination of allowable direct costs and the actual indirect cost rate by audit performed by representatives of the Commissioner. The provisional rate shall be adjusted upward or downward in accordance with the findings in such audit. B. The total allowable cost payable under this contract shall be determined on the basis of an audit by representatives of the Commissioner. The contractor agrees to repay to the U.S. Office of Education any amount of payment received in excess of the actual cost, and the Government agrees to pay to the contractor any amount due as determined by such audit. Article 13. Limitation on cost A. It is estimated that the total cost to the Government for the performance of this contract will not exceed the estimated cost set forth in this contract. If, at any time, the contractor has reason to believe that the total cost to the Government, for the performance of this contract, will be substantially greater or less than the then estimated cost thereof, the contractor shall notify the contracting officer in writing to that effect, giving its revised estimate of such total cost for the performance of this contract. B. The Government shall not be obligated to reimburse the contractor for costs incurred in excess of the estimated cost set forth in the contract and the contractor shall not be obligated to continue performance under the contract or to incur costs in excess of such estimated cost unless and until the contracting officer shall have notified the contractor in writing that such estimated cost has been increased and shall have specified in such notice a revised estimated cost which shall thereupon constitute the estimated cost of performance of this contract. When and to the extent that the estimaed cost set forth in this contract has been increased by the contracting officer in writing, any costs incurred by the contractor in excess of such estimated cost prior to the increase in estimated cost shall be allowable to the same extent as if such costs had been incurred after such increase in estimated cost. Article 14. Estimate of time or effort The contractor shall maintain quarterly "Time or effort reports" for all professional staff rendering services under this contract. Such reports shall be prepared on an ex post facto basis not later not later than 1 month following the quarter within which the services were rendered. The estimates may be based on either hours or on percentage of effort. The estimate may be prepared by either the professional staff member himself or his supervisor and retained in the office of the individual responsible for preparation of expenditure reports. The "Time or effort reports" should be available for inspection at any time by representatives of the Government. Article 15. General provisions The attached general provisions, form OE-5115-2(1063), are hereby made a part of this contract. Article 16. Alterations The following alterations were made to the general provisions prior to the signing of this contract: None. In witness whereof the contracting officer and the contractor have executed this contract as of the day and year first above written. THE UNITED STATES OF AMERICA, Contracting Officer, U.S. Office of Education. FLORIDA STATE UNIVERSITY, By JOHN E. CHAMPION, Acting President. I, Russell J. Keirs, certify that I am the associate dean and director of research of the corporation named as contractor herein, that John E. Champion who signed this contract on behalf of the contractor was then acting president of said corporation; that said contract was duly signed for and in behalf of said corporation by authority of its governing body, and is within the scope of its corporate powers. [SEAL] RUSSELL J. KEIRS. THE FLORIDA STATE UNIVERSITY, TALLAHASSEE, FLA. TITLE: POPULATION SURVEY OF EDUCATIONAL OPPORTUNITIES Section 402 of the Civil Rights Act of 1964 directed the Office of Education to "conduct a survey and make a report to the President and the Congress * * concerning the lack of availability of equal educational opportunities for individuals by reason of race, color, religion, or national origin in public educational institutions * * *." This contract will be one phase of this directive. One of the major functions of the contract will be to provide data on school dropouts which cannot be obtained in detail from educational institutions. The Florida State University will assist the Office of Education as follows: Part I. Analysis of 1960 and earlier Bureau of the Census data on school enrollment, illiteracy, and years of schooling completed by race or color and other demographic variables, for States and counties. Most of the data for 1960 will be assembled for public schools, but some of the historical data are available only for public and private schools combined. Parts of the analysis would be based on cross-classifications of the variables involved, while other parts of the analysis would be based on indirect analysis (ecological correlations) of race and educational measures. In addition, some data will be assembled for nationality groups and for other ethnic minorities, such as Puerto Ricans and Spanish-name persons in the Southewestern part of the United States. Analysis will also be developed which will show the relationship between race and ethnic status and the economic benefits that result from having different levels of education. Part II. A survey will be conducted that will result in data on factors related to the educational status, progress, and plans of school-age children and youths. These persons will include both those currently enrolled in school and those who have dropped out of or never went to school. They will include those attending public schools, as distinct from those attending nonpublic schools. Youths will be classified by their racial and religious background. Types of data which will be related to their educational experience will include their personal characteristics, their family social and economic backgrounds, geographic mobility, their school records, their parents' attitudes toward education, their own attitudes toward education, and the effects of the family, school, and neighborhood environments on their educational status. This study will be based on a special supplement to the current population survey of the Bureau of the Census in October 1965. At this time, the Census Bureau will be collecting their regular annual data on school enrollment and it will be possible to add questions relevant to this study to the survey from and to relate this information to other sources of data for the same person. These other sources will consist pirmarily of a separate family questionnaire to be left at the household at the time of the basic interview and which is to be mailed to the Census office, and a questionnaire about the person which is to be sent to the principal of the last school he attended. The operational phases of the survey will be conducted by the Census Bureau under the direction of Messrs. Nam. Herriott, and Rhodes. Tabulations of data based on a collation of the several sources of data for each person will be prepared by the Census Bureau from the specifications of the study directors and will be turned over to them for analysis. Questionnaire constructions and data analysis will be carried out in consultation with the staff of the Office of Education to insure comparability with other parts of the larger civil rights survey. The analysis and writing of the report for both part I and part II will be done at Florida State University. Data to be collected on each survey form will include the following: Demographic characteristics of persons (including age, sex, race, etc.). Employment status of person. Educational status of person. For those enrolled-the grade in which they are enrolled and type of school. For those not enrolled-the highest grade which they had attended. Religious affiliation of person. Occupation of household head. Family income. Educational level of parents. Geographic mobility of parents. Family questionnaire (questions to be answered about each enrollee in grades 1 to 12 and for each person not enrolled at ages 5 to 19). To be asked of parents— Attitudes toward education. Educational plans for child. Forms of educational assistance given child. Principal language spoken in home. To be asked of subjects at ages 14 to 19 or in grades 9 to 12— Plans for continuing or not continuing in school. Reasons for plans about schooling. School questionnaire: Verification of educational status. Intelligence test score, name of test, and when administered. Size of school. Type of school (including percent of students having various ethnic statuses). Type of neighborhood. Mr. MICHEL. Will this kind of information that comes back from this latest questionnaire be fed into the statistical model? Mr. KARSH. It will be used for at least that purpose. The model is somewhat different. I assume from the discussion that preceded this question, that it was associated with in part the equal education survey that preceded it, so I would assume it would be used predominantly for that. APPALACHIAN REGIONAL DEVELOPMENT ACT Mr. MICHEL. Mr. Ludington, on page 13, may I supplement the line of questioning of Mr. Flood with respect to that $8 million for the Appalachian Regional Development Act? To date, how much has been allocated for architectural planning, or site acquisition and construction? Mr. LUDINGTON. You are talking about the Appalachian project? Mr. MICHEL. Yes. Mr. LUDINGTON. Those would be costs assumed by the local district, or the sponsoring agency. There is no difference between the administrative procedures at the local level because it is an Appalachian program than if it is a State and local project not involving Appalachian projects. These are not separated allocations. Mr. MICHEL. Do I understand correctly that in that area the first $8 million has been spent? Mr. LUDINGTON. We expect it to be obligated by June 30. We will furnish for the record the projects in the mill at this time on the Appalachian counties. GOALS OF VOCATIONAL EDUCATION Mr. MICHEL. What are the goals of vocational education? Mr. LUDINGTON. Well, basically, to prepare a person for gainful employment. This is the purpose stated in the 1963 act, and has been the purpose over the years in connection with the George-Barden and Smith-Hughes Acts except in the older pieces of legislation homemaking was considered a useful occupation, not a gainful occupation. I would say that the purpose is to prepare persons for employment; to retrain persons who need to be retrained as job opportunities in the job market change. ACTUAL JOB SHORTAGES AS GUIDE FOR VOCATIONAL EDUCATION PROGRAM Mr. MICHEL. Do you have anywhere spread in the record the job shortages that currently exist that might serve in some shape, form, or manner as a guide to young people today who will not go on academically but who are trying to pick a spot for themselves in vocational training? Mr. LUDINGTON. This is done in a variety of ways, starting from State and local levels, and from a variety of sources. Basically, the program planning related to the State plan for vocational education now involves relationships and agreements between the bureau of employment service in the State, and the State boards for vocational education. In other words, appraisals are to be made of the employment situation, the unemployment situation, and these factors put alongside of the programs that are operated by the local school districts and the States. Mr. FLOOD. The last paragraph of the first page of your statement, does that not deal with Mr. Michel's question? Mr. LUDINGTON. Oh, yes. The thing I am saying is, this procedure, in conjunction with our requirement that annually each State make an analysis of the emplo |