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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 :

Travel and per diem.
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 pro fessional 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:


In witness whereof the contracting officer and the contractor have executed this contract as of the day and year first above written.

Contracting Officer,

U.S. Offioe of Education.

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)



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:
Regular current population survey questionnaire:
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. Relative class standing. 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.


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.


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.


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 er 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 employ

ment opportunities, the manpower situation, and the present status of their vocational and technical education programs, is an element which we have required as a supplement to the State plan.

Now, the Department of Labor maintains in their employment outlook series, and other publications, information dealing with shortage occupations. The vocational education funds allocated to the States may be used for vocational guidance and counseling purposes.

We are seeing an increase in this activity. I think the point here is that in this rapidly changing employment situation, what constitutes some element of vocational education starts early in the lives of some youngsters. The skills may not be stressed, but we are beginning to try in a variety of ways to take some of the mystery out of the world of work, and then at subsequent levels provide specific types of training opportunities where both the skills and the information are carried on in order to make a person more employable.


Mr. MICHEL. What is the average vocational training period ? Mr. LUDINGTON. Are you talking about posthigh school or high school?

Mr. MICHEL. Both.

Mr. LUDINGTON. Programs range all the way from an average of 6 weeks to 2 years, and others run for longer sequences than that.

I would say the typical offering is 1 to 2 years sequence, just as an average, or middle ground. As we move up the scale of occupations, we are finding more need for the related science, mathematics, the socalled academic support side, and there is a different complexion placed upon the kinds of skill.

Mr. MICHEL. Foreseeing you are going to have to do this sometime in the future, you are not going to lose sight of your basic responsibility down on the first couple of rungs of the ladder?


Mr. LUDINGTON. That is the point. The spectrum is being widened. Although some people in recent years have argued that there should be no vocational education in the high school, I think many people aro now saying that because of the complexity of this modern world of work, we need to somehow create an educational mix of general and vocational education earlier in the lives of many youngsters. This can be done in a variety of patterns, but I would say there are general education contributions, there are guidance and counseling, contributions, and there is specific occupational training, part of which can be institutionalized, part of it can be a work- study, a cooperative kind of arrangement, part of it can be posthigh school institutionalized and on the job.

There are many arrangements that can be used to meet the desired objectives.

Mr. MICHEL. I am glad to hear you say that. I know in talking to some of our young people in high schools, naturally we want to all fix our eye on a higher star and more academic achievement in education.

Let's face it, there are some that cannot make it, that do not have the faculty or the affinity for wanting to do it. We certainly ought to

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