scope:

INTRODUCTION

Use

The use of this pamphlet is for rate determination on construction contracts, dredging contracts, and negotiated procurements and relates only to contractor-owned equipment. The overall intent of the pamphlet is to determine equipment costs that are fair and reasonable.

a. This pamphlet shall be used for determining hourly equipment rates that are contained in the independent government estimate.

b. In addition, the use of this pamphlet will be required by contractors for pricing contractor-owned equipment in negotiated procurements when:

(1) Cost or pricing data is not required, as defined in Federal Acquisition Regulation (FAR) Part 15.400, Contract Pricing.

(2) Cost or pricing data is required and the actual cost data to support either ownership or operating costs for equipment or equipment groups of similar model and series is not available.

(3) Cost or pricing data is required and available, but all or part of the data is determined not to be in accordance with the FAR cost principles.