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The results of the negotiation will be binding upon all Depart- ments.
At the completion of the negotiation, the sponsoring Department will prepare and distribute to the other Departments a negotiation report or summary as provided for in ASPR 3-705 (e).
These policies emphasize negotiated bargaining toward reasonable overall pricing.
The industry comments express the fear that the proposed new cost principles woxild undermine this policy and lead to formula pricing based solely on audit reports.
However, as I am sure you will recognize, this is a highly complicated and controversial subject and one which generates a wide vari Compensation for Personal Services ^ k (i) Compensation dependent upon oir measured by profits* See Tab A* (ii) Stock Options.
In such cases, a negotiated fixed-ceiling overhead rate may be used for application prospectively, provided that in the event overhead rates developed by the cognizant audit activity on the basis of actual allowable costs are less than the negotiated rates, the negotiated rates will be reduced.
Recent dis cussions With various industry groups seem to indicfte a bet^er^d'rst^din^ and more willing acceptance of this principle than the initial wri Sn «^T^f abpwed.
The point raised by the AIA with respect to t^nrca^it for^""*" agreement on reasonableness is covered under Issue 4 above ^ ^ 5 pr. Industry Position The proposed cost principles: (i) a Uow in-training and out-training at vocational and; non-co Uege levels., ' , (ii) a Uow jgart-time, technical^^ engineering and scientific ■ educauon, including materials, textbooks, fee.^^^ and.
* Government Position Since the intent of the proposed draft was to continue our existi^ pricing policies and since this intent was riot imderstobd from a reading of: the drafts the^^App Hcab Hity" section of the draft is being rewritten to make this intent clear and, hence, to accommodate the industry viewsw ^dustry Position.
4 Industry strongly urges that interest on borrowings be allowed as Governnient Position While we do not feel that we shoiild accede to this position (See.
If necessary, straight time compensation for attendance of classes during working hour a for 2 hour, a week for the year (1 course).