52.249-5000 Basis for settlement of proposals.
As prescribed at 49.113(100) insert the following statement in
solicitations and contracts.
BASIS FOR SETTLEMENT OF PROPOSALS
'Actual costs will be used to determine equipment costs for a
settlement proposal submitted on the total cost basis under FAR
49.206-2(b). In evaluating a terminations settlement proposal using
the total cost basis, the following principles will be applied to
determine allowable equipment costs:
(1) Actual costs for each piece of equipment, or groups of
similar serial or series equipment, need not be available in the
contractor's accounting records to determine total actual equipment
(2) If equipment costs have been allocated to a contract using
predetermined rates, those charges will be adjusted to actual costs.
(3) Recorded job costs adjusted for unallowable expenses will be
used to determine equipment operating expenses.
(4) Ownership costs (depreciation) will be determined using the
contractor's depreciation schedule (subject to the provisions of FAR
(5) License, taxes, storage and insurance costs are normally
recovered as an indirect expense and unless the contractor charges
these costs directly to contracts, they will be recovered through the
indirect expense rate.'
(End of Statement)
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