Document:

Exhibit 10.10

 

Free English Translation

 

MANAGEMENT CONTRACT

 

AND

 

FIRST AND IRREVOCABLE RIGHT OF
REFUSAL TO REPURCHASE

 

In
Santiago, November 11, 2002, between:

 

FIBRANOVA C.A. (“Fibranova”),
corporation established in accordance with the laws of the Bolivian Republic of
Venezuela, located on Sixth Avenue, between the sixth and seventh cross street,
Fifth Asunción, Altamira, Eduardo Miranda 0058, Caracas, Venezuela and for
these purposes, located at 200 Alcántara Street, 5th floor, Comuna
de Las Condes, Santiago, Chile, represented by Mr. Hernán Orellana Hurtado
and Mr. Patricio Reyes Urrutia, of the same aforementioned address;

 

TERRANOVA INTERNACIONAL S.A. (“Terranova
Internacional”), corporation established in accordance with the laws of the
Republic of Chile, (RUT) No. 96.802.690-9, located at 200 Alcántara
Street, 5th floor, Comuna de Las Condes, Santiago, Chile,
represented by Mr. Hernán Orellana Hurtado and Mr. Patricio Reyes
Urrutia, of the same aforementioned address;

 

FORESTAL TERRANOVA S.A. (“Forestal
Terranova”), corporation established in accordance with the laws of the
Republic of Chile, Taxpayer ID No. 96.708.490-5, located at 200 Alcántara,
5th floor, Comuna de Las Condes, Santiago, Chile, represented by Mr. Hernán
Orellana Hurtado and Mr. Patricio Reyes Urrutia, of the same
aforementioned address;

 

TERRANOVA COLOMBIA S.A. (“Terranova
Colombia”), corporation established in accordance with the laws of the Republic
of Colombia, located on Carrera 11a, No. 98-62, Santa Fé de Bogotá,
Colombia, and for these purposes located at 200 Alcántara Street, 5th
floor, Comuna de Las Condes, Santiago, Chile, represented by Mr. Hernán
Orellana Hurtado and Mr. Patricio Reyes Urrutia, of the same
aforementioned address;

 

MASISA S.A. (“Masisa”),
corporation established in accordance with the laws of the Republic of Chile,
Taxpayer ID No. 92.257.000-0, located at 1700 Avda. Los Conquistadores, 13th
floor, Comuna de Providencia, Santiago, Chile, represented by Mr. Gonzalo
Zegers Ruiz-Tagle and Mr. Carlos Marín Olalla, of the same aforementioned
address; and

 

CONSIDERING:

 

•                  That Fibranova is the owner of industrial
facilities located in Puerto Ordaz, Venezuela and which consist of 2 production
lines of wooden boards (particle boards - PB and wooden medium density
fiber board - MDF), complemented by a line of melamine-coated boards and a line
of MDF moldings, whose products are primarily intended for sale in the
Venezuelan and Colombian markets.

 

1

 

•                  That Masisa has experience and knowledge in the
fabrication of bound wooden board, MDF and melamines, and has also developed
marketing models of the products in different countries in Latin America.

•                  That Forestal Terranova S.A. (indirect parent
company of Fibranova), Terranova Internacional (sole shareholder of Fibranova)
and Fibranova, have an interest in contracting the services of Masisa for the
management of Fibranova.

•                  That Terranova Colombia, whose sole
shareholders are Terranova Internacional and Fibranova, has begun activities in
Colombia for the marketing of Fibranova products, and that the shareholders of
Terranova Colombia have an interest in Masisa also taking over the management
of Terranova Colombia and establishing a commercial network in this area.

•                  That Masisa is interested in the acquisition of
Fibranova shares and/or its industrial facilities, and for that purpose is
interested in Fibranova and/or its shareholders granting it a first right of
refusal in the event that they decide to transfer the properties; Masisa is
also interested in acquiring shares of Terranova Colombia and/or its assets.

•                  That due to the fact that this is a contract of
a transaction between the related parties, while Forestal Terranova S.A. is the
parent company of Masisa S.A., the Board of Directors of the respective
companies allow this transaction be known to the Directorship of the same, in
accordance with article 50 bis of Law No. 18.046,
relating to article 89 of the same body of laws.

•                  That the Directorship of the parties has approved
the signing of this contract.

 

And by virtue of to the parties’ reciprocal
interest, the signing of the following Management Contract and First and
Irrevocable Right of Refusal to Repurchase has been agreed upon.

 

FIRST                                                            Services

 

Forestal
Terranova, Terranova Internacional and Fibranova, put into the hands of Masisa
S.A. the complete management of the operations of Fibranova, including the all
this company’s areas of management which include, among others, the general
management, administration and finances, operations, marketing commercial and
human resources, subject to the restriction that is established in the last
paragraph of this clause. The exercise of this management, will include, among
others, the designation and removal of Fibranova personnel the reorganization,
creation or removal of areas of Fibranova; the fixing of prices and the
commercial policies of Fibranova; the contracting of services and the supply of
raw materials, or the renegotiation of existing contracts, the contracting of technical
assistance, the inclusion of Fibranova in the centers of shared services (“CSC”)
of the Masisa companies and, in general, the inclusion of Fibranova as a
productive unity in addition to the companies of Masisa in Latin America, all
the aforementioned subject to the restrictions that are established in this
contract.

 

Masisa
agrees that the management of Fibranova will comply with the legal norms and
regulations in force governing the environment and others areas, applicable to
its operations. Additionally, it must insure the observance of sustainable
development principles applied by Terranova.

 

2

 

The
parties establish that, except for a future agreement to the contrary,
Terranova Internacional and Forestal Terranova will keep a direct dependency
the areas of Treasury and Accounting of Fibranova, without prejudice to the
coordination of the remaining areas of Fibranova that will be subject to the
management of Masisa, and owing to the adequate financing of the operations of
Fibranova, in accordance with the business plan of this company.

 

SECOND                                            Sustaining legal existence,
managers and powers

 

Fibranova
will maintain its legal existence and will continue operating under its
corporate name.

 

Terranova
Internacional agrees to instruct its agents and directors in such a way so that
they approve the transactions that may be necessary to implement the operative
plans and investment projects previously approved by the Directorship of
Fibranova.

 

The
General Manager of Fibranova will be designated by Masisa and will report
directly to the General Manager of Fibranova, without prejudice to the reports
that he/she must present to the Directorship of Fibranova. The Directorship of
Fibranova agrees to grant the sufficient powers to said General Manager and to
the rest of the agents of Fibranova so that they may fulfill their functions.

 

THIRD Presentation of balances, financial statements and annual
budgets; financing

 

The
General Manager of Fibranova, acting together with Masisa, will present to the
shareholders and directors of Fibranova, the balances and financial statements
in the terms and opportunities that correspond in accordance with Venezuelan
legislation. The balances and financial statements will continue being prepared
in conformity with the generally accepted accounting principles in Venezuela
and according to the policies and practices defined by the parent company of
Fibranova.

 

The
annual budgets and investment projects will have to be prepared following the
same guidelines with which Masisa prepares the budgets and projects for its own
management, with the necessary preparation according to the requirements of the
policies and practices defined by the parent company of Fibranova, and will be
presented to the Directorship of Fibranova in a manner similar to the
presentation of the annual budgets and projects of Masisa and, in all cases, no
later than October 31 of each year.

 

Fibranova
will have to provide the adequate financing for its operations and investments.
This financing will have to be provided by the shareholders of Fibranova or
through loans taken out by Fibranova, always that this financing have prior
approval by the Directorship of Fibranova. The guarantees, in the event that
they are necessary, will have to consist in the goods of Fibranova or will have
to come from its shareholders.

 

In
any event, the investment projects will require the approval of the
Directorship of Fibranova.

 

3

 

FOURTH                                             Contracts of certain companies
related to Fibranova

 

Fibranova
maintains contracts with related parties in Venezuela, according to the
following breakdown:

 

1.-
Back office and administrative services contracted by Fibranova to: Terranova
of Venezuela S.A., Andinos C.A., Coforven S.A., Imataca C.A., Guayamure C.A.
and Oxinova C.A.

 

2.-
Contracts for which Fibranova supplies raw materials: Terranova of Venezuela
S.A. (palpable rolls), Andinos C.A. (sawdust and shavings), Oxinova C.A.
(resin).

 

3.-
Commercial contract for boards and moldings and board supply, by Fibranova to
Terranova Forest Products, Inc.

 

4.-
Vapor Supply contract from Fibranova C.A. to Andinos C.A.

 

Before
this contract becomes valid, the Parties will agree to an appendix to this
contract to which a copy of each of the contracts referred to here in this
clause will be attached.

 

FIFTH                                                             Transactions between the parties

 

The
operations between the related parties will continue to be made under market
conditions.

 

SIXTH                                                          Providing services and technical
assistance by Masisa and/or its affiliates to Fibranova

 

Fibranova will be able to contract with Masisa
and/or its affiliates, services, technical consultants and engineering
projects, in all those areas in which it results convenient or necessary to improve
the management of Fibranova. In the case of technical assistance the contract
will have to contain a breakdown of the fees and all of the associated costs to
said consultants to be reimbursed by Fibranova to Masisa.

 

All the contracts to which this clause refers
to will have to have the prior approval of the Directorship of Fibranova,
without prejudice to the remaining corporate authorizations because it is a
matter of transactions among the related parties.

 

In the event of technical assistance, services
or engineering projects contracted with Masisa and/or its affiliated the sums
will be based in what is established in the Business plan prepared annually by
Masisa for Fibranova.

 

Masisa
and/or its affiliates will be able to also provide general administrative or “back office” services to Fibranova (and indirectly to the
related companies cited in the fifth clause), including to Fibranova in the CSC
of Masisa, in the areas of administration and finance, human resources,
marketing, among other, in the way that the costs of said services be less that
those that Fibranova 

 

4

 

has
at that time. The previous condition must always have the approval of the
Directorship of Fibranova.

 

SEVENTH                                       Brand
names

 

The
products made by Fibranova and that are marketed in Venezuela, Colombia or in
other territories, will carry the MASISA brand name or the brand name that
Masisa indicates; they will have to carry as well, temporarily, the brand name
that Fibranova currently uses or both together.

 

EIGHTH                                                  Commercial
network in Venezuela and Colombia.

 

Fibranova
has an interest in its products being marketed through the commercial network
that Masisa establishes Venezuela and Colombia, once the agreements already
contracted by Fibranova, Terranova Internacional or Forestal Terranova allow
it.

 

For
the establishment of a commercial network in the referred to territories,
Masisa and Fibranova sign with each of the members of this network (“Dealers”),
an agreement (“Placacentro Agreement”) by virtue of which Masisa authorizes to
the Dealers the use of the brand name PLACACENTRO and other brand names, logos
and corporate images created by Masisa, and agrees to offer certain consultants
related with the empowerment of the Dealer’s premises, the improvement of the
management and marketing of the Dealer, the training of the personnel of the
Dealer, the development of common promotion programs and advertising for the
Dealers, the delivery of the licenses and sub-licenses of software intended to
improve the management, communications and handling of the inventory of the
Dealers, among other related materials. For its part, Fibranova will supply to
the Dealer of the products made by Fibranova and, particularly the
complementary products of Masisa or of third parties.

 

The
Placacentro Agreement does not contemplate any payment by the Dealer for the
license and consultancy of Masisa, as long as this Management Contract is still
in force.

 

The
Placacentro Agreement will establish that the Dealer will have to cease the use
of the brand name PLACACENTRO, once 3 years have passed since the termination
of this Management Contract, except by a contrary agreement entered into with
Masisa. During the same time period, Masisa will have to maintain the assistance
that is necessary to allow each Dealer to continue distributing products of
Fibranova under the same conditions. This assistance will be compensated by
Fibranova, in accordance with the amount that Fibranova and Masisa agree to at
the proper time. The use of the brand name Placacentro by the Dealers during
said period will be without charge.

 

NINTH                                                         Compensation

 

By
offering the services described in the first clause of this contract, Fibranova
will pay to Masisa an annual compensation equivalent to 8% of the operational
income of Fibranova, determined in United States dollars and by means of a
balance sheet made according to generally accepted 

 

5

 

accounting
principles in Chile, duly audited, compensation that will be net of any tax
apart from the tax to the rent of the first category that Masisa must pay in
Chile for these revenues. For these purposes, it will be understood by
operational income that which said generally accepted accounting principles in
Venezuela define.

 

The
payment will be made in pesos, national currency of Chile, according to the “observed”
value of the dollar published on the day on the payment.

 

The
payment will have to be made within 30 das following the date of approval of
the balance sheet of Fibranova by the shareholders of Fibranova and, in all
cases, no later than the 31st of May of each year. If at this
date, the balance sheet has not been approved by Fibranova, the parties will
have to act in accordance to that which is established in the fifteenth clause
of this contract.

 

In
the event of a delay or postponement of the compensation payment, an interest
penalty equivalent to the maximum conventional interest for re-adjustable
operations permitted in Chile will accrue in Masisa’s favor.

 

TENTH                                                       Validity and duration of the
Management Contract

 

This
Management Contract will enter into effect on January 1, 2003, subject to
the condition that upon this date the Operative Plan for Fibranova prepared by
Masisa for year 2003 and the estimates for the following years have been
approved by Fibranova. Masisa estimates that it will present this plan no later
than November 30, 2002. If at this date the referred to plan has not been
approved, the parties will have to establish the date when this contract will
enter into force.

 

The
Management Contract will have a period of duration of three years beginning
from the date that it enters into force and will be automatically renewed for
equal periods, except if either of the parties communicates to the other with a
minimum notice of 6 months prior to the expiration of this period of validity.
For the purposes of this paragraph, Forestal Terranova, Terranova
Internacional, Fibranova and Terranova Colombia will be considered as one
party, and Masisa as the other party.

 

The
services, technical assistance and supply contracts between Fibranova and
Masisa and/or its affiliates, which would be in force on the date of
termination of this contract, will end conjointly with this contract, and the
compensations and other services provided will have to be paid once each
contract enters in force.

 

Additionally,
this Management Contract will end immediately and without right to any
indemnification, if Forestal Terranova transfers or looses, for any reason, the
control of Masisa. For the purposes of this document, it is understood by “control”
as the power of the controller of a corporation in conformity with that which
is set forth in article 97 and subsequent articles of the Law of Market
Values.

 

6

 

Without
prejudice to the aforementioned, Masisa will have the right in such case to the
compensation payment proportional to the time which has passed from the end of
the previous fiscal year.

 

The
services or supply contract between Fibranova and Masisa and/or its affiliates,
that will be in force upon the date of termination of this Contract because of
a change of Control of Masisa, will end in accordance to their own conditions,
except that Fibranova communicates its decision to bring them to early
termination. In any case, the compensations and other services provided
proportional to the validity of each contract will have to be paid.

 

ELEVENTH                                Early Termination of the
Management Contract

 

Either
of the parties will be able to bring an early termination to the Management
Contract in the event of a failure to comply with the stipulated obligations in
this document.

 

TWELFTH                                    First and Irrevocable Right of
Refusal of Repurchase

 

Terranova Internacional grants to Masisa, for
it or for its affiliate that it designates, a first and irrevocable right of
refusal of repurchase of the total or part of the shares or rights in Fibranova
or of any of its affiliates. Additionally, Fibranova grants an option to
Masisa, under the same terms, for the acquisition of all or part of the assets
of the property of Fibranova or of any of its affiliates. The right which is
referred to in this clause is applied to possible transfers to third parties
other than the companies of the Business Group to which Forestal Terranova
belongs. For these purposes, it is understood that the Business Group is
defined by the Market of Values Law of Chile.

 

Masisa will have the right to exercise this
right within a period of 60 days counting from when it communicates this right
to Masisa, in accordance with the procedure established in the sixteenth clause
of this instrument.

 

Masisa will have the right to exercise the
right, be it Fibranova or Terranova Internacional that decides to initiate a
transfer of assets or shares, whether they have received offers not requested
by third parties for the acquisition of assets or shares.

 

Additionally, Masisa will have to be invited to
participate in any increase in capital, merger or reorganization to any title
of Fibranova, if as a consequence of it, Terranova Internacional and Forestal
Terranova are will lose control of Fibranova. 
In this case, the same 60 day period will have to be granted to Masisa
to exercise its right, beginning from the time that Masisa is invited to
participate in the increase of capital.

 

Under no circumstances, Fibranova or Terranova
Internacional will be able to make a transfer under more favorable terms for
the buyer, than those offered to Masisa. Once 90 days have passed without the
transfer with the third party having taken place, the first right of refusal
referred to in this cause will have to be renewed.

 

7

 

The first right of refusal that is referred to
in this clause will be in force during the Management Contract and up to three
years after its termination, except in the case that the Management Contract
ends because Forestal Terranova loses control of Masisa, in which case the
referred to right will end with the Management Contract.

 

THIRTEENTH                                          Conflict Resolution

 

In
the case of any difficulty or controversy that arises between the parties with
respect to the application, interpretation, duration, validity or execution of
this contract or any other cause, the parties will put forth their best efforts
to solve the conflict within a period of 60 days, whether in direct form or
with the intervention of a third party that the parties designate from a common
agreement.

 

In
the event that the parties do not reach a resolution to the controversy during
the period mentioned previously, the conflict will be submitted to Arbitration, in accordance to the Procedural Arbitration
Regulations of the Mediation and Arbitration Center of Santiago.

 

The
parties confer the special, irrevocable power to the Business Court of Santiago
A.G., so that, upon their written request, it can designate the arbitrator from
among the members of the arbitration body of the Mediation and Arbitration
Center of Santiago.

 

In
the event that the resolutions of the arbitrator do not produce any recourse,
we expressly resign to them. The arbitrator remains especially empowered to
resolve all matters related to the authority and/or jurisdiction.

 

FOURTEENTH                                      Communications and Notices

 

All
of the communications that are made related to this document, except where
otherwise expressly stated, will be made in writing, in Spanish, and sent (a) via
fax o telecopy, (b) by e-mail, (c) by certified mail, (d) by
personal delivery, or (e) by an internationally recognized mail service,
to all the people indicated below.

 

(a)          For Fibranova, Terranova Internacional, Forestal Terranova and/or to
Terranova Colombia:

 

	
  Mr.

  	
   

  	
   

  
	
  Hernán Orellana Hurtado

  	
   

  	
   

  
	
  General Manager

  	
   

  	
   

  
	
  Forestal Terranova S.A.

  	
   

  	
   

  
	
  Alcántara 200 Oficina 502, Santiago

  
	
  Telephone:

  	
   

  	
  350 6000

  
	
  Fax:

  	
   

  	
  350 6001

  
	
  E-mail:

  	
   

  	
  horellana@terranova.cl

  
					

 

8

 

	
  Mr.

  	
   

  	
   

  
	
  Patricio Reyes Urrutia

  	
   

  	
   

  
	
  Fiscal

  	
   

  	
   

  
	
  Forestal Terranova S.A.

  	
   

  	
   

  
	
  Alcántara 200 Office 502, Santiago

  
	
  Telephone:

  	
   

  	
  350 6000

  
	
  Fax:

  	
   

  	
  350 6001

  
	
  E-mail:

  	
   

  	
  preyes@terranova.cl

  
					

 

(b)         For Masisa

 

	
  Mr.

  	
   

  	
   

  
	
  Gonzalo Zegers Ruiz-Tagle

  	
   

  	
   

  
	
  General Manager

  	
   

  	
   

  
	
  Masisa S.A.

  	
   

  	
   

  
	
  Los Conquistadores 1700 13th Floor, Santiago

  
	
  Telephone:

  	
   

  	
  232 8302

  
	
  Fax:

  	
   

  	
  234 2668

  
	
  E-mail

  	
   

  	
  gzegers@masisa.cl

  
					

 

	
  Mr.

  	
   

  	
   

  
	
  Alfredo Montaner Lewin

  	
   

  	
   

  
	
  Cariola Diez Pérez-Cotapos & Cía. Ltda.

  	
   

  	
   

  
	
  Av. Andrés Bello 2711 19th floor, Santiago

  	
   

  	
   

  
	
  Telephone:

  	
   

  	
  368 3557

  
	
  Fax:

  	
   

  	
  360 4030

  
	
  E-mail:

  	
   

  	
  amontaner@cariola.cl

  
					

 

Either of
the parties can change their address, fax number or e-mail address, for these
purposes, through a notice to the other party, as it is set forth in this
clause. Any time period must be counted from the date of the notification of
one party to the other, through a communication sent in the terms set forth in
this clause, will begin to run (a) from midnight of the date of personal
delivery of the communication or (b) from midnight of the fourth working
day of the country where the communication originated following the day of the
receipt of the communication by the mail or courier service.

 

In all
cases, if the communication is sent by fax or by e-mail, any of the other
stipulated methods will have to be used as well, which is to say, personal
delivery, certified mail or courier, the time periods beginning to run in
agreement with that indicated in the preceding section (b).

 

FIFTEENTH                                                      Terranova Colombia

 

The
parties give evidence that all the clauses of this contract, are made extensive
mutatis mutandi to the management on the
part of Masisa S.A. of Terranova Colombia and to the right of acquisition of
shares and/or assets of Masisa S.A. of Terranova Colombia. In that which is
referred 

 

9

 

to
as the stipulated compensation in the eleventh clause, Terranova Internacional
will pay to Masisa an annual compensation equivalent to 8% of the operational
revenues of Terranova Colombia, determined in US Dollars and through a balance
sheet made according to the generally accepted accounting principles in
Columbia, duly audited.

 

SIXTEENTH                                                   Applicable Law

 

This
Contract will be subject to the laws of the Republic of Chile.

 

TEMPORARY CLAUSE                                     Temporary Services and Technical
Assistance

 

The
temporary services and technical assistance that are provided by Masisa and/or
its affiliates before this contract enters in force will be compensated by
Fibranova to Masisa in the form that the Parties timely agree upon. Also,
Fibranova will have to reimburse Masisa and/or its affiliates by the costs
incurred in the offering of said services and consultants. The payment of the compensation
as well as the reimbursement for the costs will be made within 30 days
following the delivery by Masisa and/or its respective affiliate, of the
document of charge and surrender of charges. The compensation and the
reimbursement of costs will have to be paid in the same currency that is
referred to in the eleventh clause of this contract.

 

 

pp.:
FIBRANOVA C.A.                                             
MASISA S.A.

 

 

TERRANOVA
INTERNACIONAL S.A.

 

 

FORESTAL
TERRANOVA S.A.

 

 

TERRANOVA
COLOMBIA S.A.

 

 

Local
Human Rights Authorities:

 

10Exhibit 10.1

 

	
  

  	
  DEFENSE LOGISTICS AGENCY

  	
   

  
	
  DEFENSE REUTILIZATION AND MARKETING SERVICE

  	
   

  
	
  NATIONAL SALES OFFICE

  	
   

  
	
  74 WASHINGTON AVENUE NORTH, SUITE 6

  	
   

  
	
  BATTLE CREEK, MICHIGAN 49017-3092

  	
   

  
	
   

  	
   

  
	
  CORRECTED COPY

  	
   

  
	
  IN REPLY

  	
   

  	
   

  
	
    REFER TO

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  DRMS-BU

  	
   

  	
  June 15,
  2001

  

 

William P. Angrick, III

Chairman

Surplus Acquisition Venture, LLC

2131 K Street, NW, 4th Floor

Washington, DC 20037

 

Thomas Burton

President

Government Liquidation.com, LLC

2131 K Street, NW, 4th Floor

Washington, DC 20037

 

Robert Levy

Chief Executive Officer

Surplusbid.com, Inc.

6263 North Soottsdale Road, Suite 371

Scottsdale, AZ 85250

 

Earl Bray

President

Levy/Latham Global LLC

6263 North Scottsdale Road, Suite 371

Scottsdale AZ, 85250

 

Gentlemen:

 

We have reviewed the materials submitted by Government Liquidation.com,
LLC (GL), Surplusbid.com, Inc. (Surplusbid), and Levy/Latham Global, LLC
(LLG) (collectively, the “Parties”) in connection with the proposed acquisition
(the “Acquisition”) by GL of the surplus property disposition business conducted
by LLG under the Commercial Venture 1 (CV1) contract, 99-7005-0002, with the
Defense Reutilization and Marketing Service (DRMS).

 

 

These materials include, without limitation:

 

1.             April 19, 2001
Transaction Summary presentation;

2.             April 19, 2001 Asset
Purchase Agreements among the Parties;

3.             April 20, 2001
Letter from Surplusbid confirming ownership of web site;

4.             April 23, 2001
Withdrawal of Protests Letter from Surplusbid; and

5.             May 9,
2001 CV-1 Termination and Release Letter from LLG.

6.             Waiver of Claim
Liability received by DRMS on June 14, 2001.

 

Pursuant to Part VII, Article One, Section 7, Para. (A) of
the CV1 contract, DRMS approves the Acquisition.

 

In addition, DRMS confirms the following:

 

a.             Formal Award of
CV2, 99-0001-0002, to Surplus Acquisition Venture (SAV).  The CV2 contract has been awarded to SAV as
of June 13, 2001.

 

b.             Termination of CV1
and Transition to CV2.  Pursuant to
Surplusbid’s request, the CV1 contract is terminated effective as of June 15,
2001.  Effective on such date, all
property referrals previously made under CVl (including any outstanding
invoices for previous deliveries) may be transferred to, and assumed by, GL
pursuant to, and under the bid prices and terms of, CVl. DRMS approves the
transfer of all work in progress, referrals, sales, and other activities
conducted by LLG under CVl to GL under CV2, all in accordance with the terms of
CV2.

 

c.             Treatment of
Purchase Price as Direct Cost.  The
purchase price to be paid to Surplusbid and LLG, respectively, is approved as a
direct cost under CV2.

 

d.             SAV Deposit Under
CV2.  The $235,000 Surplusbid “Payment
Deposit” held by DRMS shall be applied towards the SAV “Payment Deposit”
requirements applicable under CV2.

 

2

 

If you have any questions in this regard, please contact the
undersigned at (616) 961-7593.

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
  /s/ Donald B. Zimmerman

  	
   

  
	
   

  	
  DONALD B. ZIMMERMAN

  
	
   

  	
  Sales Contracting Officer

  

 

3

 

 

 

SURPLUS COMMERCIAL PROPERTY

 

 

DEFENSE REUTILIZATION AND MARKETING SERVICE

 

INVITATION FOR BIDS 

NO. 99-0001

 

STEP TWO OF TWO - STEP SOLICITATION 

 

 

DECEMBER 2000

 

 

 

 

SURPLUS COMMERCIAL PROPERTY

 

 

DEFENSE REUTILIZATION AND MARKETING SERVICE

 

INVITATION FOR BIDS 

NO. 99-0001

 

STEP TWO OF TWO - STEP SOLICITATION 

 

DECEMBER 2000

 

 

SURPLUS COMMERCIAL PROPERTY

INVITATION FOR BIDS

No. 99-0001

 

TABLE OF CONTENTS

 

	
  I.

  	
  STEP TWO OF TWO-STEP SEALED BIDDING

  	
   

  
	
  II.

  	
  GENERAL STATEMENTS OF CONTRACT TERMS

  	
   

  
	
   

  	
  A.

  	
  INTRODUCTION

  	
   

  
	
   

  	
  B.

  	
  PRODUCT POOL AND PROPERTY FLOW

  	
   

  
	
   

  	
  C.

  	
  DESIGNATION OF SCRAP VS. USEABLE ITEMS

  	
   

  
	
   

  	
  D.

  	
  PHASE-IN PERIOD AND PERFORMANCE PERIOD

  	
   

  
	
   

  	
  E.

  	
  PURCHASER AND CONTRACTOR RESPONSIBILITIES

  	
   

  
	
   

  	
  F.

  	
  BID PERCENTAGES AND CONTRACTOR’S PURCHASE
  PRICE

  	
   

  
	
   

  	
  G.

  	
  POTENTIAL REFERRAL OF CV-1 ITEMS

  	
   

  
	
   

  	
  H.

  	
  BIDDER DUE DILIGENCE

  	
   

  
	
   

  	
  I.

  	
  NET PROCEEDS AND DIRECT COSTS

  	
   

  
	
   

  	
  J.

  	
  SELLER INDIRECT COSTS

  	
   

  
	
   

  	
  K.

  	
  OPERATING ACCOUNT AND DISTRIBUTIONS

  	
   

  
	
   

  	
  L.

  	
  WORKING CAPITAL ADVANCES AND REPAYMENTS

  	
   

  
	
   

  	
  M.

  	
  DISTRIBUTIONS AND PAYMENTS

  	
   

  
	
   

  	
  N.

  	
  EARLY CANCELLATION OPTION

  	
   

  
	
   

  	
  O.

  	
  PURCHASE ACCOUNT

  	
   

  
	
   

  	
  P.

  	
  PAYMENT DEPOSIT

  	
   

  
	
   

  	
  Q.

  	
  RETENTION FUND AND FINANCIAL GUARANTEE BOND

  	
   

  
	
   

  	
  R.

  	
  ABSENCE OF DRMS PRE-APPROVALS, AUTHORIZATIONS
  AND OPERATIONAL CONTROL

  	
   

  
	
   

  	
  S.

  	
  COMPLIANCE MONITORING AND DISPUTE
  RESOLUTION

  	
   

  
	
   

  	
  T.

  	
  DELIVERY POINTS

  	
   

  
	
   

  	
  U.

  	
  LOGISTICS

  	
   

  
	
   

  	
  V.

  	
  DEMIL B AND Q PROPERTY

  	
   

  
	
   

  	
  W.

  	
  THE FIRST TWO YEARS OF OPERATIONS OF CV-1

  	
   

  
	
   

  	
  X.

  	
  MISCELLANEOUS

  	
   

  
	
   

  	
  Y.

  	
  SCRAP RATE RISK AND ADJUSTMENTS TO
  CONTRACTOR’S PURCHASE PRICE

  	
   

  
	
   

  	
  Z.

  	
  RISK FACTORS

  	
   

  
	
  III.

  	
  BID SCHEDULE

  	
   

  
	
   

  	
  A.

  	
  BACKGROUND INFORMATION

  	
   

  
	
   

  	
  B.

  	
  BID PROCESS

  	
   

  
	
   

  	
  C.

  	
  ILLUSTRATION OF THE DETERMINATION OF THE
  WINNING BID

  	
   

  
	
   

  	
  D.

  	
  ILLUSTRATIVE FINANCIAL MODEL

  	
   

  
	
  IV.

  	
  ITEM
  DESCRIPTION

  	
   

  

 

ii

 

	
  V.

  	
  TERMS AND CONDITIONS OF SALE

  	
   

  
	
  VI.

  	
  ADDITIONAL TERMS AND CONDITIONS OF SALE

  	
   

  
	
   

  	
  ARTICLE ONE. BIDDING AND CONTRACT
  AWARD

  	
   

  
	
   

  	
   

  	
  Section 1. Bid Deposit

  	
   

  
	
   

  	
   

  	
  Section 2. Bid Evaluation

  	
   

  
	
   

  	
   

  	
  Section 3. Contract Award

  	
   

  
	
   

  	
   

  	
  Section 4. Post-Award Conference

  	
   

  
	
   

  	
   

  	
  Section 5. Purchaser Information

  	
   

  
	
   

  	
   

  	
  Section 6. Formation of Purchaser;
  Covenant of Contractor

  	
   

  
	
   

  	
   

  	
  (A)

  	
  Formation of Purchaser

  	
   

  
	
   

  	
   

  	
  (B)

  	
  Covenant of Contractor

  	
   

  
	
   

  	
   

  	
  Section 7. Transfer and Hypothecation

  	
   

  
	
   

  	
   

  	
  (A)

  	
  General Prohibition

  	
   

  
	
   

  	
   

  	
  (B)

  	
  Attempted Transfer

  	
   

  
	
   

  	
   

  	
  (Q)

  	
  Consolidation with CV-1

  	
   

  
	
   

  	
   

  	
  Section 8. Contract of Sale

  	
   

  
	
   

  	
   

  	
  (A)

  	
  Relationship of Parties

  	
   

  
	
   

  	
   

  	
  (B)

  	
  Parties to Contract

  	
   

  
	
   

  	
   

  	
  Section 9. Authority of Sales
  Contracting Officer

  	
   

  
	
   

  	
   

  	
  Section 10. Execution by Purchaser

  	
   

  
	
   

  	
   

  	
  Section 11. Replacement Contractor

  	
   

  
	
   

  	
   

  	
  Section 12. Referral of CV-1 Property

  	
   

  
	
   

  	
   

  	
  (A)

  	
  Termination or Cancellation of CV-1

  	
   

  
	
   

  	
   

  	
  (B)

  	
  Expiration of CV-1

  	
   

  
	
   

  	
   

  	
  (C)

  	
  CV-1 Property Referral Date

  	
   

  
	
   

  	
   

  	
  Section 13. Non-DRMS Assets

  	
   

  
	
   

  	
  ARTICLE TWO. PERFORMANCE PERIOD; EARLY
  CANCELLATION OPTION

  	
   

  
	
   

  	
   

  	
  Section 1. Performance Period

  	
   

  
	
   

  	
   

  	
  Section 2. Early Cancellation Option

  	
   

  
	
   

  	
  ARTICLE THREE. R/T/D REVIEW; REFERRAL
  AND REMOVAL OR ABANDONMENT OF 

  	
   

  
	
   

  	
   

  	
  PROPERTY; RCP AND SPECIAL SITUATION
  PROPERTY; TITLE TO PROPERTY; RISK OF LOSS

  	
   

  
	
   

  	
   

  	
  Section 1. R/T/D Review; Property
  Referral List

  	
   

  
	
   

  	
   

  	
  (A)

  	
  R/T/D
  Review

  	
   

  
	
   

  	
   

  	
  (B)

  	
  Property Referral List

  	
   

  
	
   

  	
   

  	
  Section 2. Delivery Points; DRMS
  Customer Liaison; Phase-In

  	
   

  
	
   

  	
   

  	
  Period; DRMS Infrastructure Reduction

  	
   

  
	
   

  	
   

  	
  (A)

  	
  Delivery Points

  	
   

  
	
   

  	
   

  	
  (B)

  	
  Delivery Point Directory; DRMS Customer
  Liaison

  	
   

  
	
   

  	
   

  	
  (C)

  	
  Phase-In Period

  	
   

  
	
   

  	
  Table VI.3.2.C

  	
   

  
	
   

  	
   

  	
  (D)

  	
  DRMS Infrastructure

  	
   

  

 

iii

 

	
   

  	
   

  	
  (E)

  	
  Maximum Number of DRMOs and DRMS Warehouses

  	
   

  
	
   

  	
   

  	
  Section 3. R/T/D of the Property;
  Property Storage; Delivery of Property to Purchaser and Passage of Title

  	
   

  
	
   

  	
   

  	
  (A)

  	
  R/T/D of the Property

  	
   

  
	
   

  	
   

  	
  (B)

  	
  Property Storage

  	
   

  
	
   

  	
   

  	
  (C)

  	
  Transfer to Purchaser of Control Over and
  Title to the Property

  	
   

  
	
   

  	
   

  	
  Section 4. Access to Property;
  Removal; On-Site Processings; Costs of Removal

  	
   

  
	
   

  	
   

  	
  (A)

  	
  Purchaser’s Access to Property

  	
   

  
	
   

  	
   

  	
  (B)

  	
  Re-Sale Buyers’ Access to Property

  	
   

  
	
   

  	
   

  	
  (C)

  	
  Removal; Packing and Loading

  	
   

  
	
   

  	
   

  	
  (D)

  	
  On-Site Processing

  	
   

  
	
   

  	
   

  	
  (E)

  	
  DRMS Option to Permit On-Site Processing

  	
   

  
	
   

  	
   

  	
  (F)

  	
  Costs of Removal

  	
   

  
	
   

  	
   

  	
  (G)

  	
  Base Closures

  	
   

  
	
   

  	
   

  	
  (H)

  	
  Damage to Government Property; Clean-Ups of
  Spills

  	
   

  
	
   

  	
   

  	
  Section 5. Title

  	
   

  
	
   

  	
   

  	
  Section 6. Abandonment

  	
   

  
	
   

  	
   

  	
  Section 7. Risk of Loss

  	
   

  
	
   

  	
   

  	
  Section 8. Initial Property Referral
  List

  	
   

  
	
   

  	
   

  	
  Section 9. Initial Removal of Property

  	
   

  
	
   

  	
  ARTICLE FOUR. PROPERTY REFERRAL LIST

  	
   

  
	
   

  	
   

  	
  Section 1. Access to R/T/D Inventory
  in Process

  	
   

  
	
   

  	
   

  	
  Section 2. Property Referral List

  	
   

  
	
   

  	
   

  	
  Section 3. Documentation and
  References

  	
   

  
	
   

  	
  ARTICLE FIVE. PAYMENT BY PURCHASER FOR
  PROPERTY

  	
   

  
	
   

  	
   

  	
  Section 1. Payment Deposit

  	
   

  
	
   

  	
   

  	
  Section 2. Payment by Purchaser for
  Property

  	
   

  
	
   

  	
   

  	
  (A)

  	
  Invoices and Payments

  	
   

  
	
   

  	
   

  	
  (B)

  	
  Amounts Payable to DRMS and to KGP; Timing
  of Payments

  	
   

  
	
   

  	
   

  	
  (C)

  	
  Failure to Make Timely Payments

  	
   

  
	
   

  	
   

  	
  (D)

  	
  Payments

  	
   

  
	
   

  	
  ARTICLE SIX. QUANTITY DELIVERABLE;
  DISCREPANCIES AND ANNUAL PRICING 

  	
   

  
	
   

  	
   

  	
  CORRECTION; SCRAP

  	
   

  
	
   

  	
   

  	
  Section 1. Sale by Reference
  Conditions

  	
   

  
	
   

  	
   

  	
  Section 2. Discrepancies

  	
   

  
	
   

  	
   

  	
  Section 3. Items With Excessive
  Acquisition Value

  	
   

  
	
   

  	
   

  	
  Section 4. Items not Available for
  Removal

  	
   

  
	
   

  	
   

  	
  Section 5. Scrap

  	
   

  
	
   

  	
   

  	
  (A)

  	
  Downgrades Upon Receipt

  	
   

  
	
   

  	
   

  	
  (B)

  	
  Upgrades

  	
   

  
	
   

  	
  ARTICLE SEVEN. OPERATIONS

  	
   

  
	
   

  	
   

  	
  Section 1. Compliance with Applicable
  Law and Regulations

  	
   

  

 

iv

 

	
   

  	
   

  	
  (A)

  	
  Compliance with Applicable Law

  	
   

  
	
   

  	
   

  	
  (B)

  	
  Licenses and Permits

  	
   

  
	
   

  	
   

  	
  (C)

  	
  Responsibility for Keys

  	
   

  
	
   

  	
   

  	
  Section 2. Duties of Care and Loyalty

  	
   

  
	
   

  	
   

  	
  (A)

  	
  Duty of Care

  	
   

  
	
   

  	
   

  	
  (B)

  	
  Duty of Loyalty

  	
   

  
	
   

  	
   

  	
  Section 3. Prohibited Activities

  	
   

  
	
   

  	
   

  	
  Section 4. Classified and Other
  Material

  	
   

  
	
   

  	
   

  	
  Section 5. Munitions List Items and
  Commerce Control List Items

  	
   

  
	
   

  	
   

  	
  (A)

  	
  Acknowledgment of Export Restrictions

  	
   

  
	
   

  	
   

  	
  (B)

  	
  Purchaser’s TSC Clearance and End Use
  Certificate

  	
   

  
	
   

  	
   

  	
  (C)

  	
  Re-Sale Procedures

  	
   

  
	
   

  	
   

  	
  (E)

  	
  Compliance With EUC Requirements

  	
   

  
	
   

  	
   

  	
  (G)

  	
  Compliance With New Trade Security Control
  Requirements

  	
   

  
	
   

  	
   

  	
  Section 6. Employee Compensation

  	
   

  
	
   

  	
   

  	
  (A)

  	
  Base Compensation

  	
   

  
	
   

  	
   

  	
  (B)

  	
  Bonuses

  	
   

  
	
   

  	
   

  	
  Section 7. Employee Expenses and
  Purchaser’s Supplies, Furniture and Equipment

  	
   

  
	
   

  	
   

  	
  (A)

  	
  Employee Expenses

  	
   

  
	
   

  	
   

  	
  (B)

  	
  Supplies, Furniture and Equipment

  	
   

  
	
   

  	
   

  	
  Section 8. RCP Batch Lots

  	
   

  
	
   

  	
   

  	
  Section 9. Vehicles Requiring Partial
  Mutilation

  	
   

  
	
   

  	
  ARTICLE EIGHT. PURCHASER’S RECORDS;
  INSPECTION AND AUDIT BY GOVERNMENT 

  	
   

  
	
   

  	
   

  	
  AND INDEPENDENT AUDITOR; ACCOUNTING
  PRINCIPLES AND REQUIRED REPORTS TO GOVERNMENT

  	
   

  
	
   

  	
   

  	
  Section 1. Contractor Records
  Retention

  	
   

  
	
   

  	
   

  	
  Section 2. Inspection of Records and
  Workplace by Government

  	
   

  
	
   

  	
   

  	
  Section 3. Records Maintenance

  	
   

  
	
   

  	
   

  	
  Section 4. Contracts with Third
  Parties

  	
   

  
	
   

  	
   

  	
  Section 5. Purchaser’s Books of
  Account; Financial Reports

  	
   

  
	
   

  	
   

  	
  (A)

  	
  Transition Report

  	
   

  
	
   

  	
   

  	
  (B)

  	
  Monthly Report

  	
   

  
	
   

  	
   

  	
  (C)

  	
  Quarterly Report

  	
   

  
	
   

  	
   

  	
  (D)

  	
  Annual Report

  	
   

  
	
   

  	
   

  	
  (E)

  	
  Closing Report

  	
   

  
	
   

  	
   

  	
  (F)

  	
  Reporting Schedule

  	
   

  
	
   

  	
  ARTICLE NINE. DIRECT COSTS

  	
   

  
	
   

  	
   

  	
  Section 1. Definitions

  	
   

  
	
   

  	
   

  	
  (A)

  	
  Direct Costs

  	
   

  
	
   

  	
   

  	
  (B)

  	
  Seller Indirect Costs

  	
   

  
	
   

  	
   

  	
  (C)

  	
  Contractor Indirect Costs

  	
   

  
	
   

  	
   

  	
  Section 2. Documentation and Payment
  of Direct Costs and Seller Indirect Costs

  	
   

  

 

v

 

	
   

  	
   

  	
  (A)

  	
  Disbursements

  	
   

  
	
   

  	
   

  	
  (B)

  	
  Supporting Documentation

  	
   

  
	
   

  	
   

  	
  (C)

  	
  Documentation Requirements

  	
   

  
	
   

  	
   

  	
  (D)

  	
  Payment

  	
   

  
	
   

  	
   

  	
  (E)

  	
  Written
  Certification to DRMS

  	
   

  
	
   

  	
   

  	
  (F)

  	
  Contractor Indirect Costs

  	
   

  
	
   

  	
  ARTICLE TEN. CONFLICTS OF INTEREST

  	
   

  
	
   

  	
   

  	
  Section 1. Restriction on
  Participation

  	
   

  
	
   

  	
   

  	
  Section 2. Benefits to Contractor and
  Affiliated Parties

  	
   

  
	
   

  	
  ARTICLE ELEVEN. FIDELITY BOND
  REQUIREMENTS; INSURANCE

  	
   

  
	
   

  	
   

  	
  Section 1. Modification of Special
  Circumstance Conditions

  	
   

  
	
   

  	
   

  	
  Section 2. Further Modifications

  	
   

  
	
   

  	
  ARTICLE TWELVE. SOFTWARE AND SYSTEMS

  	
   

  
	
   

  	
   

  	
  Section 1. Identification of Systems
  and Software Developed with Contractor Funds

  	
   

  
	
   

  	
   

  	
  Section 2. License in Contractor
  Systems and Software

  	
   

  
	
   

  	
   

  	
  Section 3. Systems and Software
  Developed with Purchaser Funds

  	
   

  
	
   

  	
   

  	
  Section 4. Third-Party Software

  	
   

  
	
   

  	
   

  	
  Section 5. Software Documentation and
  Maintenance

  	
   

  
	
   

  	
  ARTICLE THIRTEEN. OPERATING ACCOUNT;
  WORKING CAPITAL

  	
   

  
	
   

  	
   

  	
  Section 1. Operating Account

  	
   

  
	
   

  	
   

  	
  (A)

  	
  Establishment

  	
   

  
	
   

  	
   

  	
  (B)

  	
  Maintenance of Sufficient Funds

  	
   

  
	
   

  	
   

  	
  Section 2. Working Capital

  	
   

  
	
   

  	
   

  	
  Section 3. Funds in the Operating
  Account; Treatment of Interest

  	
   

  
	
   

  	
   

  	
  Section 4. Working Capital Advances

  	
   

  
	
   

  	
   

  	
  Section 5. Limited Right to Borrow
  Funds

  	
   

  
	
   

  	
   

  	
  Section 6. Deposits to Operating
  Account

  	
   

  
	
   

  	
   

  	
  (A)

  	
  Receipts

  	
   

  
	
   

  	
   

  	
  (B)

  	
  Working Capital Advances

  	
   

  
	
   

  	
   

  	
  (C)

  	
  Contractor’s Responsibility for Funds

  	
   

  
	
   

  	
   

  	
  Section 7. Disbursements from
  Operating Account

  	
   

  
	
   

  	
   

  	
  (A)

  	
  Costs Payable from Operating Account

  	
   

  
	
   

  	
   

  	
  (B)

  	
  Limitation on Disbursements

  	
   

  
	
   

  	
   

  	
  (C)

  	
  Signatures

  	
   

  
	
   

  	
   

  	
  Section 8. Transfer Accounts

  	
   

  
	
   

  	
  ARTICLE FOURTEEN. PURCHASE ACCOUNT

  	
   

  
	
   

  	
   

  	
  Section 1. Purchase Account

  	
   

  
	
   

  	
   

  	
  (A)

  	
  Establishment

  	
   

  
	
   

  	
   

  	
  Section 2. Purchase Advances

  	
   

  
	
   

  	
   

  	
  Section 3. Funds in the Purchase
  Account; Treatment of Interest

  	
   

  
	
   

  	
   

  	
  Section 4. Treatment of Purchase
  Advances

  	
   

  

 

vi

 

	
   

  	
   

  	
  Section 5. Disbursements from Purchase
  Account

  	
   

  
	
   

  	
   

  	
  Section 6. Purchase Transfers

  	
   

  
	
   

  	
  ARTICLE FIFTEEN. FINANCIAL GUARANTEE
  BOND; RETENTION FUND; ESTIMATED 

  	
   

  
	
   

  	
   

  	
  CONTINGENT LIABILITIES RESERVE

  	
   

  
	
   

  	
   

  	
  Section 1. Election of Contractor to
  Provide Financial Guarantee Bond in Lieu of Retention

  	
   

  
	
   

  	
   

  	
  Section 2.
  Financial Guarantee Bond

  	
   

  
	
   

  	
   

  	
  Section 3. Retention Fund

  	
   

  
	
   

  	
   

  	
  (A)

  	
  Establishment of Retention; Retention Rate;
  Retention Fund; Required Retention Fund Balance

  	
   

  
	
   

  	
   

  	
  (B)

  	
  Insolvency of Contractor

  	
   

  
	
   

  	
   

  	
  (C)

  	
  Increased Retention

  	
   

  
	
   

  	
   

  	
  (D)

  	
  Release of Retention Fund

  	
   

  
	
   

  	
   

  	
  Section 4. Estimated Contingent
  Liabilities Reserve

  	
   

  
	
   

  	
  ARTICLE SIXTEEN. DISTRIBUTIONS

  	
   

  
	
   

  	
   

  	
  Section 1. Monthly Distribution
  Statement

  	
   

  
	
   

  	
   

  	
  Section 2. Calculate Cash Available
  for Distribution and Operating Net Worth

  	
   

  
	
   

  	
   

  	
  (A)

  	
  Calculate Cash Available for Distribution

  	
   

  
	
   

  	
   

  	
  (B)

  	
  Calculate Operating Net Worth

  	
   

  
	
   

  	
   

  	
  Section 3. Calculate Net Worth
  Allocations

  	
   

  
	
   

  	
   

  	
  (A)

  	
  Calculate Contractor Net Worth Allocation

  	
   

  
	
   

  	
   

  	
  (B)

  	
  Calculate DRMS Net Worth Allocation

  	
   

  
	
   

  	
   

  	
  (C)

  	
  Calculate KGP Net Worth Allocation

  	
   

  
	
   

  	
   

  	
  Section 4. Distribution Payments

  	
   

  
	
   

  	
  ARTICLE SEVENTEEN. COMPLIANCE AND
  MONITORING

  	
   

  
	
   

  	
   

  	
  Section 1. Purpose and Content of
  Compliance Reviews and Further Reviews

  	
   

  
	
   

  	
   

  	
  (A)

  	
  Compliance Reviews and Further Reviews

  	
   

  
	
   

  	
   

  	
  (B)

  	
  Methods

  	
   

  
	
   

  	
   

  	
  Section 2. Procedures for Compliance
  Reviews

  	
   

  
	
   

  	
   

  	
  (A)

  	
  Procedures and Notice

  	
   

  
	
   

  	
   

  	
  (B)

  	
  Scope

  	
   

  
	
   

  	
   

  	
  Section 3. Further Reviews

  	
   

  
	
   

  	
   

  	
  Section 4. Compliance Notification

  	
   

  
	
   

  	
   

  	
  Section 5. Costs of Oversight

  	
   

  
	
   

  	
  ARTICLE EIGHTEEN. AUDIT ADJUSTMENTS

  	
   

  
	
   

  	
   

  	
  Section 1. Notice of Audit Adjustment

  	
   

  
	
   

  	
   

  	
  Section 2. Procedures for Adjudication
  of Audit Adjustments

  	
   

  
	
   

  	
   

  	
  Section 3. Remedies for Audit
  Adjustments

  	
   

  
	
   

  	
  ARTICLE NINETEEN. MATERIAL BREACH

  	
   

  
	
   

  	
   

  	
  Section 1. Notice of Material Breach

  	
   

  
	
   

  	
   

  	
  Section 2. Response to Notice

  	
   

  

 

vii

 

	
   

  	
   

  	
  (A)

  	
  Cure

  	
   

  
	
   

  	
   

  	
  (B)

  	
  Submission of Dispute to Dispute Resolution
  Panel

  	
   

  
	
   

  	
   

  	
  Section 3. Termination

  	
   

  
	
   

  	
   

  	
  Section 4. Intentional Breach

  	
   

  
	
   

  	
   

  	
  Section 5. DRMS Remedies for Material
  Breach by Contractor or Purchaser

  	
   

  
	
   

  	
   

  	
  Section 6. Indemnification of DRMS by
  Contractor and Purchaser

  	
   

  
	
   

  	
   

  	
  Section 7. Indemnification of
  Contractor by DRMS

  	
   

  
	
   

  	
  ARTICLE TWENTY. DISPUTE RESOLUTION

  	
   

  
	
   

  	
   

  	
  Section 1. Selection of Dispute
  Resolution Panel

  	
   

  
	
   

  	
   

  	
  (A)

  	
  Appointment of Arbitrators

  	
   

  
	
   

  	
   

  	
  (B)

  	
  Service of Arbitrators

  	
   

  
	
   

  	
   

  	
  (C)

  	
  Expenses

  	
   

  
	
   

  	
   

  	
  Section 2. Location and Governing
  Rules

  	
   

  
	
   

  	
   

  	
  Section 3. Jurisdiction of the Panel

  	
   

  
	
   

  	
   

  	
  (A)

  	
  Matters Committed to the Panel

  	
   

  
	
   

  	
   

  	
  (B)

  	
  Availability of Judicial Relief

  	
   

  
	
   

  	
   

  	
  Section 4. Submission of Disputes to
  the Panel

  	
   

  
	
   

  	
   

  	
  (A)

  	
  Dispute

  	
   

  
	
   

  	
   

  	
  (B)

  	
  Process

  	
   

  
	
   

  	
   

  	
  Section 5. Decision

  	
   

  
	
   

  	
   

  	
  Section 6. Remedies Available to
  Dispute Resolution Panel

  	
   

  
	
   

  	
   

  	
  (A)

  	
  Remedies in the Case of Disputes

  	
   

  
	
   

  	
   

  	
  (B)

  	
  Remedies for Ineligible Disbursements

  	
   

  
	
   

  	
   

  	
  (C)

  	
  Award of Costs

  	
   

  
	
   

  	
   

  	
  Section 7. Effective Date

  	
   

  
	
   

  	
  ARTICLE TWENTY-ONE. WIND-UP OF
  PURCHASER

  	
   

  
	
   

  	
   

  	
  Section 1. Wind-Up Commencement Date

  	
   

  
	
   

  	
   

  	
  Section 2. Cessation of Property
  Referrals

  	
   

  
	
   

  	
   

  	
  Section 3. Conduct of Wind-Up

  	
   

  
	
   

  	
   

  	
  Section 4. Submission
  and Approval of Closing Report

  	
   

  
	
   

  	
   

  	
  (A)

  	
  Preparation by Contractor

  	
   

  
	
   

  	
   

  	
  (B)

  	
  Preparation by DRMS

  	
   

  
	
   

  	
   

  	
  Section 5. Final Distributions; Refund
  of Remaining Balance of Payment Deposit and Remaining 

  	
   

  
	
   

  	
   

  	
   

  	
  Balance of Retention Fund

  	
   

  
	
   

  	
   

  	
  (A)

  	
  Final Distributions; Dissolution of
  Purchaser

  	
   

  
	
   

  	
   

  	
  (B)

  	
  Refund of Payment Deposit and Retention
  Fund

  	
   

  
	
   

  	
   

  	
  (C)

  	
  Early Refund of Retention Fund

  	
   

  
	
   

  	
  ARTICLE TWENTY-TWO MISCELLANEOUS
  PROVISIONS

  	
   

  
	
   

  	
   

  	
  Section 1. Binding Effect

  	
   

  
	
   

  	
   

  	
  Section 2. Notices

  	
   

  
	
   

  	
   

  	
  Section 3. Severability; Consolidation
  with CV-1

  	
   

  
	
   

  	
   

  	
  Section 4. Headings

  	
   

  

 

viii

 

	
   

  	
   

  	
  Section 5. Survival

  	
   

  
	
   

  	
   

  	
  Section 6. Waiver

  	
   

  
	
   

  	
   

  	
  Section 7. Force Majeure

  	
   

  
	
   

  	
   

  	
  Section 8. Use of DRMS Name; Public
  Communications

  	
   

  
	
   

  	
   

  	
  Section 9. Tense and Gender

  	
   

  
	
   

  	
   

  	
  Section 10. Entire Agreement;
  Modification

  	
   

  
	
   

  	
   

  	
  Section 11. Computation of Time

  	
   

  
	
   

  	
   

  	
  Section 12. Electronic Communication

  	
   

  
	
   

  	
  ARTICLE TWENTY-THREE. DEFINITIONS AND
  CROSS-REFERENCES TO DEFINITIONS

  	
   

  
	
  VII.

  	
  ATTACHMENTS AND SCHEDULES

  	
   

  
	
  VIII.

  	
  ATTACHMENT VI.2.2.B

  	
   

  

 

ix

 

SURPLUS COMMERCIAL PROPERTY

INVITATION FOR BIDS

No. 99-0001

 

I.              STEP
TWO OF TWO-STEP SEALED BIDDING

 

This Invitation For Bids (IFB) is issued by the Defense Reutilization
and Marketing Service (DRMS) to initiate Step Two of two-step sealed bidding.
The only bids that the Sales Contracting Officer may consider for award of a
contract are those received from bidders that have submitted acceptable
technical proposals in Step One of this solicitation under RFTP 99-0001.

 

The Key Personnel designations in the successful bidder’s technical
proposal shall be incorporated into any contract awarded in response to this
IFB. In all other
respects, the provisions of this IFB shall govern the contract contemplated
hereby without regard to assumptions, plans, forecasts, conditions or any other
matters set forth in any prospective bidder’s technical proposal submitted in
Step One.

 

Instructions and forms for submitting a bid are set forth in the
accompanying “Bidding Instructions and Bid Forms.” Your Bid Forms and $100,000.00
Bid Deposit must be delivered to and received by DRMS before the bid opening at
9:00 a.m. EST on Wednesday January 31, 2001). Address your Bid Forms
and Bid Deposit to:

 

Tina Aldrich

Sales Contracting Officer

DRMS - LMU

74 North Washington Avenue

Battle Creek, Michigan 49017

 

1

 

II.            GENERAL
STATEMENTS OF CONTRACT TERMS

 

Certain of the
contents and provisions of Parts III through VII of this IFB, including
Appendices, Attachments and Schedules, are described in general and summary
terms in this Part II. Statements in this Part II as to such contents
and provisions are not intended to be complete. Reference is made to such
contents and provisions for a complete description of the matters involved, and
each such statement shall be deemed qualified in its entirety by such
reference.

 

A.            INTRODUCTION

 

The structure of the sale described in this IFB is virtually identical
in all material respects to the earlier sale contract for surplus industrial
property that was awarded by DRMS in July of 1998 to Levy/Latham LLC and
that is presently ongoing. That type of sale is called the DRMS “Commercial
Venture” or “CV.” As is described more specifically below, the CV structure is
a “pipeline” sale, so named because the successful bidder pre-commits to
purchase all of certain types of property deemed “Useable” (i.e., not “Scrap”(1))
that emerge from the DRMS “pipeline” in designated locations over a specified
period of time. (Unless otherwise stated, capitalized terms have the meanings
set forth or cross-referenced in Article 23 of Part VI below. Please
refer to Part VI for complete definitions.) As is also described more
specifically below, the CV
structure is also a “net proceeds sharing sale” in that the successful bidder
is obligated to share with DRMS a portion (78.2%) of the net proceeds realized
from the re-sale of the property after deducting all of the costs of managing,
transporting, protecting, improving and marketing the property. The CV sale
structure is based upon a design originally developed for Resolution Trust
Corporation and that RTC implemented in its largest and most successful asset
sale transactions.

 

The initial CV sale (“CV-1”) was of Useable items within the
Continental United States (CONUS) that, described very generally, are “industrial.”
Thus, the CV-1 property types include such items as equipment, mechanical and
electrical supplies and parts, and other similar items that are designated by
federal procurement authorities within 312 particular Federal Supply
Classifications (“FSCs”). CV-1 sold only items with a demilitarization code
(DEMIL Code) assigned by Department of Defense authorities of “A,” meaning that
the CV-1 items neither require any demilitarization (i.e., destruction or
mutilation) nor are subject to trade security (export) controls.

 

(1) Please refer to Section II.C below for a discussion of
the Useable and Scrap designations.

 

2

 

This IFB for DRMS’s second CV sale (“CV-2”) concerns the balance of the
DRMS “pipeline” of Useable property(2) in the United States (i.e., CONUS
plus Alaska and Hawaii), plus Guam and Puerto Rico, with DEMIL Code “A.” That
is, the CV-2 sale will be of all Useable DEMIL “A” items categorized in any of
342 FSCs that are not included in CV-1. These include FSCs with
“Commodity Type” labels of Aircraft and Ground Support, Vehicles, Textiles
(including clothing, footwear, etc.), Household, Electrical and Electronics,
Office Machines (including some military training equipment), Chemicals
(solvents, dyes, fuels, etc.), Medical Devices (including dental), and
Miscellaneous. In addition, this sale is of all  Useable items (regardless of FSC(3)) with
DEMIL Codes of “B” or “Q” in the United States, Guam and Puerto Rico. Described
very generally, DEMIL “B” and “Q” items are subject to trade security (export)
controls but do not require any demilitarization. These export controls and the
procedures required to comply with them are described in detail below in Section V
of this Part II. Finally, this sale also includes all items in Alaska,
Hawaii, Guam and Puerto Rico in the 312 CV-1 FSCs with DEMIL Code “A.”

 

With CV-1 and CV-2 fully operating, DRMS personnel will no longer sell
Useable property that is not coded for Hazardous Materials to any buyer in the
United States, Guam and Puerto Rico other than the CV-1 and CV-2 buyers.

 

B.            PRODUCT
POOL AND PROPERTY FLOW

 

Products sold under this IFB are categorized by FSC and DEMIL Code. The
included items identified by FSC and DEMIL Code constitute the “Product Pool.”
These are detailed in Table IV-1 of Part IV below. It lists both (i) the
312 FSCs for which all items with DEMIL Codes “B” or “Q” are included in the
Product Pool (as well as items in these FSCs with DEMIL Code “A” in Alaska,
Hawaii, Guam and Puerto Rico), and (ii) the 342 other FSCs for which all
items with DEMIL Codes of “A,” “B” or “Q” (in the United States, Guam and
Puerto Rico) are included in the Product Pool, and indicates for each FSC the
included DEMIL Codes.

 

Described generally, the Property in the Product Pool is (i) all
items declared excess to the needs of the Department of Defense and surplus to
the needs of the Federal Government, and received by DRMS on its accountable
record, (ii) with the subject combinations of FSC and DEMIL Codes “A,” “B”
or “Q” (i.e., including Munitions List Items and Commerce Control List Items,
but demilitarization is not required) that are indicated in Table IV-1, (iii) and
a Hazardous Materials Code other than “W” (hazardous waste) or “M” (hazardous
material), (iv) that become available in the United States, Guam and
Puerto Rico(4) (v) upon completion of the R/T/D process (i.e., fifteen
(15) Days after the End of Screening Date assigned by DRMS to each particular
such item).

 

(2) Both CV sales exclude items that are coded for Hazardous
Materials. In addition, all items in 20 particular FSCs are excluded from both
sales because of safety and environmental concerns. Examples are transformers,
pest control agents and disinfectants, and compressed gas cylinders.

(3) Other than the items excluded as described in n.2.

(4) Excluding, of course,
the DEMIL “A” items in CONUS in the 312 CV-1 FSCs.

 

3

 

Throughout the eighty-four (84) month Performance Period of the
contract, DRMS will have the contractual obligation to refer all such Property for purchase under the contract.

 

The Purchaser will have the exclusive right to purchase all of the flow of such Property, and once Property has
cleared the R/T/D process, DRMS will not be able to divert any such Property to
another buyer. Subject to certain limited exceptions, the Purchaser will have
the corresponding contractual obligation to purchase all
of the flow of Property in the Product Pool after an initial Phase-In Period.
(The Purchaser, however, will also have the right to abandon property after
having paid the Contractor’s Purchase Price. See Part VI, “Additional
Terms and Conditions of Sale,” Article 3; references to Articles in Part VI
are hereinafter abbreviated “Art.       ”) The
Purchaser is encouraged to market the Property to traditional DRMS buyers.

 

The flow of Property in the Product Pool has varied between 1985 and
2000. Figures II-l and II-2 below present summary data on Unadjusted Acquisition
Value and DRMS Gross Proceeds, respectively, for the CV-1 and CV-2 Product
Pools for the fiscal years from 1985 through 2000 (for FY 2000, annualized from
ten months of data through July). Unless
otherwise indicated, data tables and graphics in this IFB present DRMS CONUS
data only. Figure
II-3 presents the Unadjusted DRMS Gross Rate of Return for FY 1985 through July of
FY 2000 for the CV-1 and CV-2 product Pools. These data are “unadjusted” for
scrap rates as set forth in Section C. of this Part II below.

 

Over the course of 1990 and 1991, DRMS designed and implemented an
upgraded inventory control and data storage system. The data for fiscal 1985
through and including fiscal 1991, representing the period prior to full
implementation of the upgraded system, are indicated by the broken line in the
figures that follow. These historic data are presented only for general
reference and no attempt has been made systematically to validate the data for
those earlier years. The data from 1992 through and including 2000 are based on
recent data extractions from DRMS’s data storage and retrieval systems, and
cover the period in which the DRMS upgraded systems have been fully
operational. These data, and other data
presented herein, are derived using the best available sources, but DRMS cannot
guarantee the accuracy of such data.

 

“DRMS Gross Proceeds” means the gross dollar sales revenues obtained by
DRMS upon the sale of particular items in a particular year. “DRMS Gross Rate
of Return” (ROR) means DRMS Gross Proceeds divided by the subject items’ total
Acquisition Value, expressed as a percentage.

 

Each item of Property is identified by either a National Stock Number
(NSN) or a Local Stock Number (LSN) provided by the “generator” — usually a
military base or other Department of Defense (DoD) facility — that turns the
item in to DRMS as surplus. NSNs are obtained from centralized federal
procurement records. For items identified by the generator by NSN, DRMS employs
an automated system that matches the NSN to the item’s Acquisition Value as
recorded in these procurement records.

 

LSNs are assigned by personnel of the generator for items for which the
item’s NSN is unknown or unavailable. The Acquisition Value of an item
identified by LSN is determined by

 

4

 

Figure ll-1

CONUS Product Pool Unadjusted Acquisition
Values

Fiscal Years 1985-2000*

($ Millions)

 

 

* Data for FY 2000 are annualized based on 10 months.

 

4.1

 

Figure lI-2

DRMS CONUS Product Pool Gross Proceeds 

Fiscal Years 1985-2000*

($ Millions)

 

 

* Data for FY 2000 are annualized based on 10 months.

 

4.2

 

Figure II-3

CONUS Product Pools

Unadjusted DRMS Gross Rate of Return

Fiscal Years 1985-2000*

 

 

* Data for FY 2000 are limited to 10 months through July.

 

4.3

 

the generator and reported to DRMS on the documentation associated with
release of the item by the generator to DRMS. LSN Acquisition Values are either
the generator’s recorded original procurement cost or its estimate of the item’s
replacement cost. In some instances, DRMS receiving personnel correct the
generator’s turn-in documentation by replacing an LSN with an NSN. In such
cases the item’s Acquisition Value is that corresponding to the NSN rather than
that originally reported by the generator.

 

C.            DESIGNATION
OF SCRAP VS. USEABLE ITEMS

 

This contract concerns the sale only of items that are designated by
DRMS as Useable (rather than Scrap) when an item is received by DRMS from a
generator.

 

The generator tentatively designates an item as Useable or Scrap when
the item is presented for turn-in to DRMS. The DRMS receiving personnel may
either accept a Scrap designation or upgrade the item to Useable (an “Upgrade
Upon Receipt”). The DRMS receiving personnel similarly may either accept a
Useable designation or downgrade the item to Scrap (a “Downgrade Upon Receipt”).

 

All items that are initially designated as Scrap by DRMS (either by
reason of DRMS accepting the generator’s Scrap determination or by way of a
Downgrade Upon Receipt) are sold as such to Scrap purchasers without R/T/D
review. Thus, all items that DRMS sends through the R/T/D process are initially
designated by DRMS as Useable. Those items
that then emerge from R/T/D review and otherwise conform to the definition of
the “Property” will be sold to the Purchaser under this contract.

 

Under DRMS operations, items that are designated as Useable upon
receipt and that are not claimed and removed during the R/T/D process are
offered by DRMS for sale to the public. Most such sales are through sealed bid
sales. Some items, however, do not sell (i.e., there are no bids) or, even
before sale is attempted, some items are withdrawn from the sale process
because DRMS personnel believe that they are not saleable. All of these unsold
items are downgraded to Scrap and sold as such (each, a “Post-Receipt Downgrade”).

 

The data in Figure II-3 above show the “Unadjusted DRMS Gross ROR” for
items in the Product Pool. This figure reports Gross RORs, determined by the
formula Gross Proceeds divided by the Acquisition Value of the items actually
sold as Useable. These data, therefore, are not adjusted for Post-Receipt
Downgrades of items that were not sold as Useable. Under this contract,
however, the Purchaser will generally be obligated to purchase all of the subject items initially
designated as Useable and that emerge from R/T/D, even though in DRMS’s experience
a certain proportion of such items are ultimately sold as Scrap. There may be
exceptions to this general rule in particular cases, in that the Purchaser
may challenge the referral of a particular item on the ground that the item
should properly have been designated upon receipt as “Scrap.” DRMS may respond
to such challenge in the exercise of its sole discretion. If DRMS agrees with
the challenge, DRMS will be responsible for the removal of the item and DRMS
will credit a succeeding invoice accordingly. See Art. 6.

 

5

 

Figures II-4a and II-4b present available data for Unadjusted and
Adjusted Acquisition Value for CV-2 and CV-1 items, respectively, for FY 1985
through July of FY 2000.(5) Figure II-5 presents data for this period
for Unadjusted and Adjusted Gross ROR for the two Product Pools. “Adjusted
Gross ROR” is calculated by dividing Gross Proceeds obtained by the sale of
Useable items by the “Adjusted Acquisition Value,” which is the sum of the total
Acquisition Value of those items that were sold as Useable and the total
Acquisition Value of those items that were scrapped after being classified upon
receipt as Useable (the Post-Receipt Downgrades). These calculations of
Adjusted Acquisition Value and Adjusted Gross ROR are employed throughout the
presentation of data in the balance of this IFB unless expressly otherwise
described.

 

Note that this specification of DRMS Adjusted Gross ROR does not
include the proceeds from Scrap sales in the calculation. These data
accordingly slightly understate historical DRMS cash recoveries on items
initially designated by DRMS as Useable.

 

Prospective offerors
should note that, since the mid-1990s, the Gross Proceeds attributable to both
the CV-1 and CV-2 Product Pools have declined substantially, as have the
corresponding Adjusted Acquisition Values in both Product Pools. The
Acquisition Values for Post-Receipt Downgrades for CV-2 items have also
declined, but not as much as the Unadjusted Acquisition Values. Thus, in recent
years CV-2 Post-Receipt Downgrades have constituted an increasing proportion of
the CV-2 Product Pool.(6) Overall, therefore, revenues obtained from the
sale of items in both Product Pools have declined in recent years, while, at
least in the case of CV-2 items, the proportion of Post-Receipt Downgrades has
increased, a factor that may have caused increased operating costs.

 

Prospective Offerors
should also note that DRMS cannot predict either the volume of items that the
Purchaser will sell, abandon or otherwise dispose of as scrap, or the revenues
obtainable therefrom, or whether the revenues from disposition of scrap will
exceed the costs thereof. The offeror therefore must account for this risk in
its bidding. DRMS expressly disavows any implicit prediction, projection or
suggestion to the contrary.

 

D.            PHASE-IN
PERIOD AND PERFORMANCE PERIOD

 

During The initial “Phase-In Period,” the Purchaser will have five (5) months
after the post-award conference to arrange for the facilities, staffing and equipment
that will initially be required to receive and process Property at the fifteen
(15) CONUS DRMOs that are to be the Initial Delivery Points. The Purchaser must
be prepared to accept Property at all Delivery Points within eight (8) months
after the post-award conference. (See Art. 3.) During the Phase-In

 

(5) In Figs. II-4b and II-5, data for Unadjusted Acquisition Value
and Gross ROR for CV-1 items are unavailable for FY 1999 and thereafter because
CV-1 has been operating and there are no Post-Receipt Downgrades.

(6) There are no Post-Receipt Downgrade data for CV-1 after the
end of FY 1998, when the CV-1 sale contract began operating.

 

6

 

Figure II-4a

CONUS Unadjusted and Adjusted CV-2 Product
Pool Acquisition Value

Fiscal Years 1985-2000*

($ Millions)

 

* Data for FY 2000 are annualized based on 10 months.

 

6.1

 

Figure II-4b

CONUS Unadjusted and Adjusted CV-1 Product
Pool Acquisition Value

Fiscal Years 1985-1998 

($ Millions)

 

 

6.2

 

Figure II-5

Gross Rate of Return 

CONUS Unadjusted and Adjusted Product Pools 

Fiscal Years 1985-2000*

 

* Data for FY 2000
are limited to 10 months through July.

 

6.3

Period, DRMS shall have the right to sell to other buyers such Property
as is located at DRMOs that, at the time, are not yet scheduled for referrals
of Property for sale to the Purchaser.

 

The Performance Period for the contract is eighty-four (84) months.
(See Art. 2.) During this period all Property in the Product Pool will be
referred for sale to the Purchaser.

 

DRMS and the Contractor will have an objectively defined early
cancellation option discussed in Section II.N below. (See Art. 2.)

 

E.             PURCHASER
AND CONTRACTOR RESPONSIBILITIES

 

The successful offeror is referred to as the “Contractor.” The
Contractor must form a single purpose Subchapter S corporation or Limited
Liability Company referred to as the “Purchaser.” The Contractor must own at
least a fifty-one percent (51%) interest in the Purchaser and must control the
Purchaser. (See Art. 1.)

 

The Purchaser will be the entity that purchases the Property, manages
and disposes of the Property, and manages all financial affairs including
receipts, payments, accounting systems, cashflow management, audits and cash
distributions to the Contractor and DRMS. As provided in Part VI, the
Purchaser also pays a portion of each DRMS distribution to Kormendi \ Gardner
Partners (“KGP”). (See Art. 16.)

 

Although the Purchaser is the operational entity, both the Contractor
and Purchaser are jointly responsible for the operations of the Purchaser. In
particular, while the Contractor does not guarantee the business success of the
Purchaser in any way, the Contractor does guarantee that the Purchaser will
operate in total compliance with the contract. (See Art. 19.)

 

The Contractor’s guarantee is secured in part by its Payment Deposit of
$500,000 (see Art. 5) and, unless the Contractor posts a “Financial Guarantee
Bond” in the amount of $1 million, by a provision for retaining a portion of
the Contractor’s distributions in a “Retention Fund” held by DRMS up to a
maximum of $500,000 in most circumstances (see Art. 15).

 

F.             BID
PERCENTAGES AND CONTRACTOR’S PURCHASE PRICE

 

As described in more detail in Part III, Bid Schedule, below, the “Contractor’s
Purchase Price” for each particular item of Property will be determined from
the Contractor’s bid. Described generally, the bid will specify the respective
percentage (collectively, the Bid Percentages) that will be multiplied by the
Acquisition Value for a particular item of Property, the result being the
Contractor’s Purchase Price for that item.

 

There will be thirteen (13) Product Subpool Bid Categories, each of
which is comprised of a list of combinations of FSCs and DEMIL Codes. These
Product Subpool Bid Categories were chosen as described in Part III, Bid
Schedule, below.

 

7

 

G.            POTENTIAL
REFERRAL OF CV-1 ITEMS

 

The CV-1 transaction is scheduled to expire as of the last day of August 2003
(although it is possible that, pursuant to the provisions of the CV-1 sale
contract, the transaction could end sooner if it is canceled or terminated for
cause). Article 1 provides that, if the CV-1 transaction concludes before
its scheduled expiration at the end of August 2003 through either
cancellation or termination, DRMS has the option of requiring the CV-2
Purchaser to purchase the items in the CV-1 Product Pool over the course of the
then-remaining balance of the CV-2 Performance Period. Article 1 further
provides that, if CV-1 concludes through expiration at the end of August 2003,
the CV-2 Purchaser will automatically be required to purchase the CV-1 items as
of that date and for the then-remaining balance of the CV-2 Performance Period.
Depending upon how and when the CV-1 transaction concludes, therefore, the CV-2
Purchaser could be purchasing a substantially increased volume of items over
much of the term of the CV-2 contract. This could materially affect the
Purchaser’s structure of operating costs and revenues, and prospective offerors
should take this into account in formulating their bids.

 

H.            BIDDER DUE DILIGENCE

 

Prospective bidders will be provided detailed annual data on DRMS’s
Acquisition Value, Gross Proceeds, Adjusted ROR, line items and quantity by
FSC, DEMIL Code and NSN/LSN indicator in fiscal years 1992 - 2000 in a data
supplement to be issued shortly after this IFB. These databases are large and
hence will be provided on portable electronic bulk storage media only, to be
accompanied by a written key to the files and their fields.

 

Prospective bidders will be provided access to Property in the physical
custody of DRMOs in the Continental United States on an expedited basis to be
pre-arranged by DRMS. Contact Tina Aldrich at (616) 961-7427 to make
arrangements.

 

I.              NET
PROCEEDS AND DIRECT COSTS

 

Described generally, the Purchaser’s “Net Proceeds” is the Purchaser’s
Gross Proceeds (obtained by the Purchaser from the Property’s sale or rental,
buyer’s premiums, insurance proceeds or by any other means), less all “Direct
Costs.” Direct Costs are, generally, all costs, other than the cost of
purchasing the Property and the compensation and travel expenses of the
Purchaser’s Chief Executive Officer, that are actually incurred by the
Purchaser solely for the management, preservation, improvement, transportation
and disposition of the Property (including all costs commonly termed “overhead
costs”), and paid either to a third party or to an affiliate in connection with
a “Permitted Affiliate Transaction.” (See Art. 9.)

 

8

 

Unless pre-specified as a Permitted Affiliate Transaction (see Art. 9),
the costs of any transaction with an “Affiliated Party” (as such term is
defined in Art. 23) will not be considered Direct Costs.

 

Direct Costs are directly payable by the Purchaser out of Gross
Proceeds and deductible from Gross Proceeds when calculating cash distributions
payable to DRMS and the Contractor. (See Sections K, L and M below; see also
Art. 9 and Art. 16.)

 

J.             SELLER INDIRECT COSTS

 

The nature of DRMS’s business and the nature of the Property itself are
such that, absent special provisions in this IFB, there would be certain
business risks inherent in this sale transaction that would be very difficult
or impossible for prospective bidders to accept. As set forth below, these
risks principally relate to the logistics costs of removing Property that the
Purchaser might be obligated to pick up from “off-site” locations. This IFB
accordingly provides that certain of the Purchaser’s costs are to be deemed “Seller
Indirect Costs” and deducted in their entirety from distributions otherwise
payable to DRMS (rather than shared between DRMS and the Contractor as Direct
Costs). This mechanism largely leaves the risks associated with these issues
with DRMS (where they are today) and accordingly should considerably ameliorate
these concerns for prospective offerors.

 

The logistics business risk that is addressed through the Seller
Indirect Costs provisions is as follows. DRMS presently expects that Delivery
of the vast majority of the Property that is referred for sale to the Purchaser
will be at DRMOs. Subject to space constraints that are specific to each DRMO
and that may change over time, almost all DRMOs will set aside indoor and
outdoor space for Purchaser’s Dedicated Storage that the Purchaser can utilize
for processing the re-sale of the Property. Moreover, in most locations the
Purchaser will be able to sell and deliver Property to re-sale buyers directly
out of the Purchaser’s Dedicated Storage at the DRMO(7) without
transporting the Property any further. (If the Purchaser so elects, of course,
it may instead move Property to another location for storage, consolidation,
processing, refitting, re-sale or for any other purpose that does not
contravene the express provisions of this IFB.)

 

Thus, DRMS generally expects that the Purchaser’s field activities will
principally be located at DRMOs except to the extent that, in exercising its
business judgment, the Purchaser decides to transport the Property to other
locations before re-sale. From time to time, however, there may be
circumstances in which Delivery at a DRMO is not possible. An illustrative
example is the sale of heavy equipment that would be very expensive to move to
the DRMO from the generator’s premises. Ideally the Delivery of the equipment
would be “in place” without moving it at all, and the re-sale of the equipment
would also be at the generator’s facility such that the re-sale buyers would
load and remove the equipment themselves. This may not be possible in all
situations, however, especially in view of national security requirements and
understandable limitations at particular military facilities. The Purchaser
would then be required

 

(7) As is indicated elsewhere in this IFB, these statements about
logistical arrangements pertain equally to DRMS Warehouses, should any be
established, and to DRMOs.

 

9

 

to take Delivery of the Property “in place” and to transport it (either
to its Purchaser’s Dedicated Storage at a nearby DRMO or to another Purchaser
facility) before re-selling it.

 

In its current operating environment, DRMS has facilities that it makes
available to CV Purchasers for Dedicated Storage Space. However, DRMS’s plan is
to phase out its storage operations and to receive an escalating percentage of
Property “in place.” DRMS cannot guarantee that it can make any storage facilities
available for Purchaser’s use. Property received “in place” under this sale
contract will be treated as set forth in Part VI of this IFB below. In
particular, any transportation costs incurred for Property referred for sale in
place at Special Situation Locations will be paid by DRMS as Seller Indirect
Costs. Any expense incurred by Purchaser to obtain and operate a storage
facility is a Direct Cost under this contract.

 

DRMS recognizes that the prospect of the Purchaser being obligated to
incur inestimable (at the time of submitting a bid) and possibly ruinous
transport costs for items that, for any reason, cannot be referred for sale and
processed for re-sale at a DRMO (or referred for sale and processed for re-sale
“in place”) presents prospective bidders with a serious business risk. DRMS’s
market research revealed that the magnitude of this risk is such that many
potential bidders would simply not bid at all if subject to this risk, while
others would deeply discount their bid prices to account for it.  In either event, this risk would threaten the
viability of a transaction that otherwise is viewed as extremely mutually
beneficial.

 

DRMS accordingly has significantly reduced this risk from the
transaction through the mechanism of Seller Indirect Costs. Thus, one category
of Seller Indirect Costs, described very generally, is comprised of the minimum
reasonable costs incurred by the Purchaser for packing, loading and removing
Property from Restricted Access Facilities and certain Property from DLA Depots,
and for removing Property from Special Situation Locations when On-Site
Processing is not permitted by DRMS. The Purchaser deducts the amount of Seller
Indirect Costs incurred in a particular month, if any, from the Distribution
Payment to DRMS for the month. (See Art. 9 and Art. 16.)

 

DRMS intends that the Seller Indirect Costs mechanism should moderate
much of the risk posed by “in place” or “off site” referrals. Nevertheless,
prospective offerors should be aware that DRMS increasingly receives items from
generators at warehouse locations that are not DRMOs and that have only minimal
part time staffs and limited operations. The Purchaser’s operating costs at
these Special Situation Locations, termed Forward Receiving Sites, may be
relatively higher than at DRMOs. Because Forward Receiving Sites generally
permit On-Site Processing, however, the Purchaser’s costs will rarely be deemed
Seller Indirect Costs. Prospective offerors should weigh this factor when
formulating their bids.

 

Provisions relating to Seller Indirect Costs are contained in Articles
3, 9 and 16. Prospective offerors are encouraged to review them in detail.

 

10

 

K.            OPERATING
ACCOUNT AND DISTRIBUTIONS

 

The Contractor is generally required to cause the Purchaser to maintain
sufficient cash in the Operating Account to meet the Purchaser’s immediate cash
needs. (See Art. 13.) Moreover, at the end of each month, the Purchaser must
evaluate its ability to make cash distributions. Described generally, on the
one hand the Purchaser may not make any distributions unless there is cash on
hand in excess of the sum of (i) any
amount owed to the Contractor for Working Capital Advances (the Working Capital
Advance Balance), (ii) its
liabilities under Generally Accepted Accounting Principles (“GAAP”), (iii) the “Estimated Contingent Liability Reserve”
(defined in Art. 15) and (iv) the
expected Direct Costs for the next month. On the other hand, again described
generally, the Purchaser must distribute
all of such excess.

 

The net effect of these cash reserve requirements is that all Net
Proceeds will be distributed each month to DRMS and the Contractor except for
increases in the cash reserve due to increases in GAAP liabilities, contingent
liabilities or provisions for Direct Costs. If the required end of month cash
reserve in the Operating Account is reduced due to reductions in GAAP
liabilities, contingent liabilities or provisions for Direct Costs, the
distributions that month will exceed Net Proceeds for the month by the amount
of that reduction in the required cash balance.

 

Note that provisions relating to Seller Indirect Costs affect DRMS
distributions. See Art. 16 for the complete provisions governing cash
distributions.

 

L.            WORKING
CAPITAL ADVANCES AND REPAYMENTS

 

Direct Costs and Seller Indirect Costs, as noted, are payable directly
out of the Purchaser’s Gross Proceeds as such are available, or out of the
Purchaser’s available cash reserves. From time to time, however, and especially
during the earlier portion of the Performance Period, the Contractor must
advance funds to the Purchaser to pay for Direct Costs and Seller Indirect
Costs. These advances are termed “Working Capital Advances.” (See Art. 13.)

 

Working Capital Advances receive priority repayment directly out of
available Gross Proceeds in the following month or months until fully repaid,
but without interest thereon.

 

M.           DISTRIBUTIONS
AND PAYMENTS

 

The distribution of Net Proceeds made by the Purchaser to the
Contractor is the source of return on the Contractor’s investment of capital
and expertise in setting up the Purchaser as an operational entity. The
distribution of Net Proceeds to DRMS, along with the Contractor’s Purchase
Price, is the source of recovery enhancement for DRMS.

 

The Purchaser will pay to DRMS the Contractor’s Purchase Price in
accordance with the provisions of Art. 5. The Contractor is responsible for
providing the Purchaser with the

 

11

 

necessary funds for such purchases (“Purchase Advances,” see Art. 14). Note that the Contractor’s Purchase Price is not a Direct Cost,
and as such is borne solely by the Contractor and not by DRMS.

 

The Purchaser must pay to DRMS eighty percent (80%) of all Net Proceeds
(less any required increase in the cash reserve). The Purchaser must pay to
Contractor twenty percent (20%) of all Net Proceeds (less any such increase in
the cash reserve). (See Art. 16.)

 

The Contractor thus pays the Contractor’s Purchase Price and receives
20% of all Net Proceeds. In this transactional structure, therefore, the
Contractor’s financial incentives are fully aligned with those of DRMS (and
thereby with those of the taxpayers) to maximize the Net Proceeds recovered
from the management and disposition of the Property.

 

N.            EARLY CANCELLATION
OPTION

 

Described generally, under this option either party may terminate the
contract after twelve months, upon written notice, if the mandatory performance
threshold is not exceeded.

 

The cancellation option threshold, termed the Benchmark Performance
Ratio, is determined with reference to the trends and volatility of DRMS
Acquisition Value, Proceeds and ROR data. It is set by formula relative to the
DRMS Historical Gross ROR that is determined from DRMS sales data from recent years.
The combinations of FSC and DEMIL Code selected for the cancellation option
calculation are those that, in recent years, consistently are among those that
account for 80% of Gross Proceeds relative to all pertinent combinations of FSC
and DEMIL Code. (See Art. 2.)

 

O.            PURCHASE ACCOUNT

 

The Purchaser must establish a Purchase Account for funding the
Contractor’s Purchase Price. (See Art. 14.) Described generally, the Contractor
must transfer funds to the Purchase Account (“Purchase Advances”) in amounts
sufficient to enable the Purchaser to pay DRMS for Property when payment is
due. (See Art. 5 and Art. 14). Moreover, when cash is available for
distributions, the Purchaser must transfer Contractor Distributions into the
Purchase Account as specified in Art. 14 to minimize the Purchase Advances
required from the Contractor.

 

P.            PAYMENT
DEPOSIT

 

The Contractor must pay to DRMS within 10 days of the award of the
contract a Payment Deposit (see Art. 5) totaling five hundred thousand dollars
($500,000) (including the $100,000 Bid Deposit required by the provisions of
Art. 1). The Payment Deposit will be held by DRMS until the conclusion of the “Wind-Up”
of the Purchaser (Art. 21) to secure DRMS claims against the Purchaser and/or
Contractor for Material Breaches of the contract, including specifically late

 

12

 

payment for Property. If the Purchaser fails to pay for Property when
payment is due, DRMS may apply the funds in the Payment Deposit against the
late payment and the Purchaser must “cure” this breach by replenishing the
Payment Deposit to the level of $500,000 plus 20% of the amount of the
late payment. The $500,000 amount of the Payment Deposit is estimated to be
approximately equal to the Contractor’s Purchase Price for an average six weeks
flow of Property. At the conclusion of the Wind-Up, DRMS will use the Payment
Deposit to offset the last Invoice and any excess will be refunded to the
Contractor without interest and less the amount necessary to cover its
claims, if any, against the Contractor.

 

Q.            RETENTION
FUND AND FINANCIAL GUARANTEE BOND

 

To ensure that DRMS is protected against the adverse financial effects
of a Material Breach of the contract by either the Purchaser or the Contractor,
the Contractor will be required to capitalize a source of security for DRMS
claims. To this end, the Contractor will have the option of either providing a
Financial Guarantee Bond at the inception of the contract or instituting a
Retention Fund. (See Art. 15.)

 

The Financial Guarantee Bond must be in the amount of $1million and
issued for at least a full year at a time. DRMS must approve the form of the
bond and the issuing surety.

 

As more completely described in Art. 15, if a Financial Guarantee Bond
cannot be obtained or if it is terminated without a replacement, the contract
provides for a Retention Fund as follows:

 

1)                                      Once all of the
Contractor’s Working Capital Advances have been repaid and the cumulative
amount of the Contractor Distribution Payments equals or exceeds the cumulative
amount of Purchase Advances — i.e., once cumulative cashflow to the Contractor
is positive — 10% of each month’s Contractor Distribution Payment (net of
certain adjustments) will be diverted into a Retention Fund held by DRMS.

 

2)                                      Under most
circumstances, the maximum amount in the Retention Fund will be $500,000; the
amount is increased to $1 million if the Contractor enters insolvency
proceedings.

 

3)                                      At the end of the
contract, DRMS will return the Retention Fund to the Contractor without
interest and less the amount necessary to cover its claims, if any,
against the Contractor. The Contractor may obtain the Retention Fund earlier
only by providing a $1 million Financial Guarantee Bond issued for the entirety
of the remaining overall contract period and that is otherwise acceptable to
DRMS.

 

13

 

R.            ABSENCE
OF DRMS PRE-APPROVALS, AUTHORIZATIONS AND OPERATIONAL CONTROL

 

Subject to the conditions of this contract, full control of all aspects
of operations rests with the Purchaser and Contractor. There are no required pre-approvals or authorizations
from DRMS. The transaction is a sale transaction and title to the
Property passes to the Purchaser upon its “Delivery” to the Purchaser. (See
Art. 1, Art. 3.)

 

The Purchaser, however, will have to work effectively with DRMO
personnel with respect to logistics, and both the Purchaser and the Contractor
must interact with DRMS personnel with respect to financial reporting,
compliance monitoring and, perhaps, dispute resolution (see Section P
below). Nonetheless, there are no
requirements for including DRMS in any way in the Purchaser’s operational
decision-making.

 

The contract does provide for the Purchaser to fulfill certain
requirements related to compliance review and financial auditing in certain
provisions including: accounting statements (see Art. 8), inventory control and
asset tracking procedures (see Art. 8), maintaining adequate insurance coverage
(see Art. 11), employee compensation (see Art. 7), returning demilitarization
items (see Art. 7), dealing appropriately with hazardous materials (see Art.
7), complying with federal, state and local laws and regulations (see Art. 7),
etc. The contract also contains certain provisions regarding the logistical
interface with DRMS and its generators in Art. 3. Such requirements
notwithstanding, as long as the Purchaser and
Contractor operate within the bounds of the contract, they will have full
operational control.

 

S.            COMPLIANCE
MONITORING AND DISPUTE RESOLUTION

 

While full operational control resides with the Purchaser and
Contractor, DRMS will have the right under the contract to monitor performance
in three ways. First, the Purchaser will be required to have audited financial
statements and follow Generally Accepted Accounting Principles. (See Art. 8.)
Second, DRMS will have the right to conduct (or contract for that service)
Compliance Reviews of the Purchaser’s general compliance with the terms of the
contract. (See Art. 17.) Third, DRMS may conduct audits of the Purchaser. (See
Art. 8.)

 

DRMS will have the option of conducting Compliance Reviews on a
quarterly basis and the expectation should be that DRMS will exercise that
option. The focus of a Compliance Review will be less with financial flows, which
are the focus of the Purchaser’s financial audits, and more on observance of
contractual terms such as those concerned with Affiliate Transactions, Direct
Costs, inventory control and asset tracking, revenue tracking, the Purchase
Account, cash reserves and the ECLR. (See Art. 17.)

 

In the event that disputes arise relating to contract compliance, the
contract requires participation in alternative dispute resolution and provides
for a voluntary but binding dispute resolution mechanism. (See Art. 20.) Under
this elective mechanism, a panel of three arbitrators — one chosen by the
Contractor, one chosen by DRMS, and one jointly chosen by the Contractor

 

14

 

and DRMS — will receive the arguments from both sides and resolve the
dispute by majority decision. It is anticipated that this mechanism will
minimize conflict and reduce the cost of resolving any disagreements that
arise.

 

T.            DELIVERY POINTS

 

The following
outline presents certain background information relevant to logistics.

 

1.             DRMOs, Depots and
Warehouses

 

a.                                       There are
currently approximately 71 DRMOs in CONUS that receive Property from
generators. In addition, there is one DRMO each in Guam, Hawaii and Puerto
Rico, and there are two in Alaska.

 

b.                                      DRMS is currently
in the process of reducing its infrastructure. Thus, it is possible that
further phasing out of the number of DRMOs would continue to occur over the
Performance Period of the contract. Moreover, as described above, DRMS also
receives Property from generators, and will refer it for sale to the Purchaser,
at “Forward Receiving Sites.” These are warehouses that are staffed either
part-time or full-time by DRMS for receiving items from generators. The
Purchaser will generally be permitted On-Site Processing of Property referred
for sale at Forward Receiving Sites. Presently there are approximately 38
Forward Receiving Sites at which Property will be referred.

 

c.                                       The flow of
Property in the Product Pool has generally been somewhat concentrated across
DRMOs. For example, Tables II-2a, II-2b and the Addendum to Table II-2b(8) show
the sale of items in the Product Pool by DRMO for fiscal 1999 and for fiscal
2000 through July.

 

d.                                      There are
currently 21 DLA Depots in CONUS. One is slated to close under BRAC in June of
2001. All 21 Depots currently refer RCP Property for sale.

 

e.                                       As part of its
infrastructure reduction and privatization initiatives, DRMS may, over the next
few years, initiate a network of centralized warehouses (termed “DRMS
Warehouses” in Part VI below) to receive and store items including the
Property.

 

(8) There is no table in this IFB designated as “II-l”; thus, Table II-2
is the first data table in this Part II.

 

15

 

Table II-2a

CV-2 Product Pool

FY 1999 Results for Individual CONUS DRMOs

Ranked by FY 1999 Gross Proceeds

(All amounts in Thousands)

 

	
  Rank by Gross

  	
   

  	
  DRMO Identifier (RIC + RIC

  	
   

  	
   

  	
   

  	
  DRMO Location

  	
   

  	
  Closure

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Unadjusted

  	
   

  	
  Gross

  	
   

  	
  % of CONUS Gross

  	
   

  	
  Cumulative % of CONUS Gross

  	
   

  
	
  Proceeds

  	
   

  	
  Suffix)

  	
   

  	
  DRMO Name

  	
   

  	
  City

  	
   

  	
  State

  	
   

  	
  Date

  	
   

  	
  Line Items

  	
   

  	
  Quantity

  	
   

  	
  Acq. value

  	
   

  	
  Proceeds

  	
   

  	
  Proceeds

  	
   

  	
  Proceeds

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (000s)

  	
   

  	
  (000s)

  	
   

  	
  ($000s)

  	
   

  	
  ($000s)

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  SZCA

  	
   

  	
  Stockton

  	
   

  	
  Stockton

  	
   

  	
  CA

  	
   

  	
  N/A

  	
   

  	
  17

  	
   

  	
  2,958

  	
   

  	
  $

  	
  86,518

  	
   

  	
  $

  	
  2,640

  	
   

  	
  5.42

  	
  %

  	
  5.42

  	
  %

  
	
  2

  	
   

  	
  S9WG

  	
   

  	
  RCP - Oklahoma City

  	
   

  	
  Oklahoma City

  	
   

  	
  OK

  	
   

  	
  N/A

  	
   

  	
  5

  	
   

  	
  218

  	
   

  	
  $

  	
  192,334

  	
   

  	
  $

  	
  1,826

  	
   

  	
  3.75

  	
  %

  	
  9.17

  	
  %

  
	
  3

  	
   

  	
  SVEA

  	
   

  	
  Mechanicsburg

  	
   

  	
  Mechanicsburg

  	
   

  	
  PA

  	
   

  	
  N/A

  	
   

  	
  3

  	
   

  	
  3,560

  	
   

  	
  $

  	
  43,989

  	
   

  	
  $

  	
  1,723

  	
   

  	
  3.54

  	
  %

  	
  12.70

  	
  %

  
	
  4

  	
   

  	
  SY6A

  	
   

  	
  San Antiontio

  	
   

  	
  San Antiontio

  	
   

  	
  TX

  	
   

  	
  N/A

  	
   

  	
  14

  	
   

  	
  745

  	
   

  	
  $

  	
  212,407

  	
   

  	
  $

  	
  1,590

  	
   

  	
  3.26

  	
  %

  	
  15.97

  	
  %

  
	
  5

  	
   

  	
  SY5A

  	
   

  	
  Texarkana

  	
   

  	
  Hooks

  	
   

  	
  TX

  	
   

  	
  N/A

  	
   

  	
  2

  	
   

  	
  186

  	
   

  	
  $

  	
  58,230

  	
   

  	
  $

  	
  1,577

  	
   

  	
  3.24

  	
  %

  	
  19.20

  	
  %

  
	
  6

  	
   

  	
  SWRA

  	
   

  	
  Warner Robbins

  	
   

  	
  Warner Robbins

  	
   

  	
  GA

  	
   

  	
  N/A

  	
   

  	
  3

  	
   

  	
  1,068

  	
   

  	
  $

  	
  39,432

  	
   

  	
  $

  	
  1,337

  	
   

  	
  2.74

  	
  %

  	
  21.95

  	
  %

  
	
  7

  	
   

  	
  SVCA

  	
   

  	
  Lakehurst

  	
   

  	
  Lakehurst

  	
   

  	
  NJ

  	
   

  	
  N/A

  	
   

  	
  3

  	
   

  	
  133

  	
   

  	
  $

  	
  24,502

  	
   

  	
  $

  	
  1,331

  	
   

  	
  2.73

  	
  %

  	
  24.68

  	
  %

  
	
  8

  	
   

  	
  S9WB

  	
   

  	
  RCP - Jacksonville

  	
   

  	
  Jacksonville

  	
   

  	
  FL

  	
   

  	
  N/A

  	
   

  	
  5

  	
   

  	
  110

  	
   

  	
  $

  	
  81,614

  	
   

  	
  $

  	
  1,317

  	
   

  	
  2.70

  	
  %

  	
  27.38

  	
  %

  
	
  9

  	
   

  	
  SYUA

  	
   

  	
  San Diego

  	
   

  	
  Imperial Beach

  	
   

  	
  CA

  	
   

  	
  N/A

  	
   

  	
  12

  	
   

  	
  114

  	
   

  	
  $

  	
  92,145

  	
   

  	
  $

  	
  1,275

  	
   

  	
  2.62

  	
  %

  	
  30.00

  	
  %

  
	
  10

  	
   

  	
  SYBA

  	
   

  	
  Hill

  	
   

  	
  Ogden

  	
   

  	
  UT

  	
   

  	
  N/A

  	
   

  	
  5

  	
   

  	
  452

  	
   

  	
  $

  	
  104,835

  	
   

  	
  $

  	
  1,138

  	
   

  	
  2.34

  	
  %

  	
  32.33

  	
  %

  
	
  11

  	
   

  	
  S9WJ

  	
   

  	
  RCP - San Antonio

  	
   

  	
  San Antonio

  	
   

  	
  TX

  	
   

  	
  N/A

  	
   

  	
  4

  	
   

  	
  470

  	
   

  	
  $

  	
  75,484

  	
   

  	
  $

  	
  1,135

  	
   

  	
  2.33

  	
  %

  	
  34.66

  	
  %

  
	
  12

  	
   

  	
  S9WF

  	
   

  	
  RCP - Warner Robbins

  	
   

  	
  Warner Robbins

  	
   

  	
  GA

  	
   

  	
  N/A

  	
   

  	
  6

  	
   

  	
  187

  	
   

  	
  $

  	
  86,973

  	
   

  	
  $

  	
  1,126

  	
   

  	
  2.31

  	
  %

  	
  36.97

  	
  %

  
	
  13

  	
   

  	
  SVXA

  	
   

  	
  Columbus, OH

  	
   

  	
  Columbus, Oh

  	
   

  	
  OH

  	
   

  	
  N/A

  	
   

  	
  6

  	
   

  	
  613

  	
   

  	
  $

  	
  49,161

  	
   

  	
  $

  	
  1,112

  	
   

  	
  2.28

  	
  %

  	
  39.25

  	
  %

  
	
  14

  	
   

  	
  SYMA

  	
   

  	
  Barstow

  	
   

  	
  Barstow

  	
   

  	
  CA

  	
   

  	
  N/A

  	
   

  	
  2

  	
   

  	
  264

  	
   

  	
  $

  	
  16,040

  	
   

  	
  $

  	
  1,035

  	
   

  	
  2.12

  	
  %

  	
  41.38

  	
  %

  
	
  15

  	
   

  	
  SY3A

  	
   

  	
  Oklahoma City

  	
   

  	
  Oklahoma City

  	
   

  	
  OK

  	
   

  	
  N/A

  	
   

  	
  9

  	
   

  	
  358

  	
   

  	
  $

  	
  190,709

  	
   

  	
  $

  	
  1,025

  	
   

  	
  2.10

  	
  %

  	
  43.48

  	
  %

  
	
  16

  	
   

  	
  S9WA

  	
   

  	
  RCP - San Diego

  	
   

  	
  San Diego

  	
   

  	
  CA

  	
   

  	
  N/A

  	
   

  	
  4

  	
   

  	
  58

  	
   

  	
  $

  	
  111,623

  	
   

  	
  $

  	
  973

  	
   

  	
  2.00

  	
  %

  	
  45.48

  	
  %

  
	
  17

  	
   

  	
  SZ7A

  	
   

  	
  Hood

  	
   

  	
  Killeen

  	
   

  	
  TX

  	
   

  	
  N/A

  	
   

  	
  6

  	
   

  	
  129

  	
   

  	
  $

  	
  26,306

  	
   

  	
  $

  	
  927

  	
   

  	
  1.90

  	
  %

  	
  47.38

  	
  %

  
	
  18

  	
   

  	
  SWMB

  	
   

  	
  Albany

  	
   

  	
  Albany

  	
   

  	
  GA

  	
   

  	
  Mar - 1999

  	
   

  	
  0

  	
   

  	
  1,345

  	
   

  	
  $

  	
  14,707

  	
   

  	
  $

  	
  866

  	
   

  	
  1.78

  	
  %

  	
  49.16

  	
  %

  
	
  19

  	
   

  	
  SY4A

  	
   

  	
  Rlley

  	
   

  	
  Fort Rlley

  	
   

  	
  KS

  	
   

  	
  N/A

  	
   

  	
  6

  	
   

  	
  1,216

  	
   

  	
  $

  	
  17,887

  	
   

  	
  $

  	
  804

  	
   

  	
  1.65

  	
  %

  	
  50.81

  	
  %

  
	
  20

  	
   

  	
  ST1A

  	
   

  	
  Norfolk

  	
   

  	
  Norfolk

  	
   

  	
  VA

  	
   

  	
  N/A

  	
   

  	
  5

  	
   

  	
  76

  	
   

  	
  $

  	
  46,842

  	
   

  	
  $

  	
  751

  	
   

  	
  1.54

  	
  %

  	
  52.35

  	
  %

  
	
  21

  	
   

  	
  SXUE

  	
   

  	
  Campbell

  	
   

  	
  Clarksville

  	
   

  	
  KY

  	
   

  	
  N/A

  	
   

  	
  4

  	
   

  	
  128

  	
   

  	
  $

  	
  12,194

  	
   

  	
  $

  	
  722

  	
   

  	
  1.48

  	
  %

  	
  53.83

  	
  %

  
	
  22

  	
   

  	
  S9WH

  	
   

  	
  RCP - Hill

  	
   

  	
  Hill

  	
   

  	
  UT

  	
   

  	
  N/A

  	
   

  	
  2

  	
   

  	
  51

  	
   

  	
  $

  	
  199,855

  	
   

  	
  $

  	
  648

  	
   

  	
  1.33

  	
  %

  	
  55.16

  	
  %

  
	
  23

  	
   

  	
  SWBJ

  	
   

  	
  Jackson

  	
   

  	
  Columbia

  	
   

  	
  SC

  	
   

  	
  N/A

  	
   

  	
  3

  	
   

  	
  204

  	
   

  	
  $

  	
  16,857

  	
   

  	
  $

  	
  646

  	
   

  	
  1.33

  	
  %

  	
  56.49

  	
  %

  
	
  24

  	
   

  	
  SZSA

  	
   

  	
  Tucson

  	
   

  	
  Tucson

  	
   

  	
  AZ

  	
   

  	
  N/A

  	
   

  	
  2

  	
   

  	
  28

  	
   

  	
  $

  	
  52,604

  	
   

  	
  $

  	
  634

  	
   

  	
  1.30

  	
  %

  	
  57.79

  	
  %

  
	
  25

  	
   

  	
  SXGA

  	
   

  	
  Jacksonville

  	
   

  	
  Jacksonville

  	
   

  	
  FL

  	
   

  	
  N/A

  	
   

  	
  2

  	
   

  	
  120

  	
   

  	
  $

  	
  21,113

  	
   

  	
  $

  	
  629

  	
   

  	
  1.29

  	
  %

  	
  59.08

  	
  %

  
	
  26

  	
   

  	
  SVEC

  	
   

  	
  Letterkenny

  	
   

  	
  Chambersburg

  	
   

  	
  PA

  	
   

  	
  N/A

  	
   

  	
  2

  	
   

  	
  134

  	
   

  	
  $

  	
  71,563

  	
   

  	
  $

  	
  606

  	
   

  	
  1.24

  	
  %

  	
  60.33

  	
  %

  
	
  27

  	
   

  	
  SY6C

  	
   

  	
  Corpus Christi

  	
   

  	
  Corpus Christi

  	
   

  	
  TX

  	
   

  	
  N/A

  	
   

  	
  2

  	
   

  	
  34

  	
   

  	
  $

  	
  18,061

  	
   

  	
  $

  	
  562

  	
   

  	
  1.15

  	
  %

  	
  61.48

  	
  %

  
	
  28

  	
   

  	
  ST4A

  	
   

  	
  Richmond

  	
   

  	
  Richmond

  	
   

  	
  VA

  	
   

  	
  N/A

  	
   

  	
  6

  	
   

  	
  581

  	
   

  	
  $

  	
  19,415

  	
   

  	
  $

  	
  533

  	
   

  	
  1.09

  	
  %

  	
  62.57

  	
  %

  
	
  29

  	
   

  	
  SZPA

  	
   

  	
  Lewis

  	
   

  	
  Seattle

  	
   

  	
  WA

  	
   

  	
  N/A

  	
   

  	
  5

  	
   

  	
  96

  	
   

  	
  $

  	
  27,740

  	
   

  	
  $

  	
  523

  	
   

  	
  1.07

  	
  %

  	
  63.65

  	
  %

  
	
  30

  	
   

  	
  S9WN

  	
   

  	
  RCP - New Cumberland

  	
   

  	
  New Cumberland

  	
   

  	
  PA

  	
   

  	
  N/A

  	
   

  	
  3

  	
   

  	
  456

  	
   

  	
  $

  	
  19,696

  	
   

  	
  $

  	
  515

  	
   

  	
  1.06

  	
  %

  	
  64.71

  	
  %

  
	
  31

  	
   

  	
  SZLA

  	
   

  	
  Kirtland

  	
   

  	
  Albuquerque

  	
   

  	
  NM

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  5

  	
   

  	
  $

  	
  4,861

  	
   

  	
  $

  	
  467

  	
   

  	
  0.96

  	
  %

  	
  65.66

  	
  %

  
	
  32

  	
   

  	
  SZQJ

  	
   

  	
  Jackson

  	
   

  	
  Columbia

  	
   

  	
  SC

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  84

  	
   

  	
  $

  	
  10,329

  	
   

  	
  $

  	
  461

  	
   

  	
  0.95

  	
  %

  	
  66.61

  	
  %

  
	
  33

  	
   

  	
  SVKC

  	
   

  	
  Scott

  	
   

  	
  Belleville

  	
   

  	
  IL

  	
   

  	
  N/A

  	
   

  	
  2

  	
   

  	
  136

  	
   

  	
  $

  	
  20,247

  	
   

  	
  $

  	
  448

  	
   

  	
  0.92

  	
  %

  	
  67.53

  	
  %

  
	
  34

  	
   

  	
  STWA

  	
   

  	
  Meade

  	
   

  	
  Baltimore

  	
   

  	
  MD

  	
   

  	
  N/A

  	
   

  	
  13

  	
   

  	
  90

  	
   

  	
  $

  	
  34,416

  	
   

  	
  $

  	
  425

  	
   

  	
  0.87

  	
  %

  	
  66.40

  	
  %

  
	
  35

  	
   

  	
  S9WI

  	
   

  	
  RCP - McClellan

  	
   

  	
  McClellan

  	
   

  	
  CA

  	
   

  	
  N/A

  	
   

  	
  3

  	
   

  	
  45

  	
   

  	
  $

  	
  48,626

  	
   

  	
  $

  	
  419

  	
   

  	
  0.86

  	
  %

  	
  69.26

  	
  %

  
	
  36

  	
   

  	
  SWBD

  	
   

  	
  Bragg

  	
   

  	
  Fayettesville

  	
   

  	
  NC

  	
   

  	
  N/A

  	
   

  	
  2

  	
   

  	
  90

  	
   

  	
  $

  	
  8,919

  	
   

  	
  $

  	
  409

  	
   

  	
  0.84

  	
  %

  	
  70.10

  	
  %

  
	
  37

  	
   

  	
  SWBA

  	
   

  	
  Cherry Point

  	
   

  	
  Cherry Point

  	
   

  	
  NC

  	
   

  	
  Jun - 1999

  	
   

  	
  1

  	
   

  	
  18

  	
   

  	
  $

  	
  52,541

  	
   

  	
  $

  	
  384

  	
   

  	
  0.79

  	
  %

  	
  70.89

  	
  %

  
	
  38

  	
   

  	
  SWMA

  	
   

  	
  Benning

  	
   

  	
  Columbus

  	
   

  	
  GA

  	
   

  	
  N/A

  	
   

  	
  2

  	
   

  	
  135

  	
   

  	
  $

  	
  7,154

  	
   

  	
  $

  	
  370

  	
   

  	
  0.76

  	
  %

  	
  71.65

  	
  %

  
	
  39

  	
   

  	
  SY5C

  	
   

  	
  Polk

  	
   

  	
  Leesville

  	
   

  	
  LA

  	
   

  	
  N/A

  	
   

  	
  3

  	
   

  	
  66

  	
   

  	
  $

  	
  12,407

  	
   

  	
  $

  	
  368

  	
   

  	
  0.76

  	
  %

  	
  72.41

  	
  %

  
	
  40

  	
   

  	
  SYTA

  	
   

  	
  Port Hueneme

  	
   

  	
  Port Hueneme

  	
   

  	
  CA

  	
   

  	
  N/A

  	
   

  	
  9

  	
   

  	
  48

  	
   

  	
  $

  	
  24,527

  	
   

  	
  $

  	
  356

  	
   

  	
  0.73

  	
  %

  	
  73.14

  	
  %

  
	
  41

  	
   

  	
  SWEA

  	
   

  	
  Anniston

  	
   

  	
  Anniston

  	
   

  	
  AL

  	
   

  	
  N/A

  	
   

  	
  2

  	
   

  	
  172

  	
   

  	
  $

  	
  5,379

  	
   

  	
  $

  	
  352

  	
   

  	
  0.72

  	
  %

  	
  73.66

  	
  %

  
	
  42

  	
   

  	
  SXLA

  	
   

  	
  Patrick

  	
   

  	
  Melbourne

  	
   

  	
  FL

  	
   

  	
  N/A

  	
   

  	
  3

  	
   

  	
  27

  	
   

  	
  $

  	
  21,203

  	
   

  	
  $

  	
  352

  	
   

  	
  0.72

  	
  %

  	
  74.58

  	
  %

  

 

15.1

Table II-2a

CV-2 Product Pool

FY 1999 Results for Individual CONUS DRMOs

Ranked by FY 1999 Gross Proceeds

(All amounts in Thousands)

 

	
  Rank by Gross

  	
   

  	
  DRMO Identifier (RIC + RIC

  	
   

  	
   

  	
   

  	
  DRMO Location

  	
   

  	
  Closure

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Unadjusted

  	
   

  	
  Gross

  	
   

  	
  % of CONUS Gross

  	
   

  	
  Cumulative % of CONUS Gross

  	
   

  
	
  Proceeds

  	
   

  	
  Suffix)

  	
   

  	
  DRMO Name

  	
   

  	
  City

  	
   

  	
  State

  	
   

  	
  Date

  	
   

  	
  Line Items

  	
   

  	
  Quantity

  	
   

  	
  Acq. value

  	
   

  	
  Proceeds

  	
   

  	
  Proceeds

  	
   

  	
  Proceeds

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (000s)

  	
   

  	
  (000s)

  	
   

  	
  ($000s)

  	
   

  	
  ($000s)

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  43

  	
   

  	
  ST1J

  	
   

  	
  St. Julien’s Creek

  	
   

  	
  Portsmouth

  	
   

  	
  VA

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  30

  	
   

  	
  $

  	
  31,396

  	
   

  	
  $

  	
  341

  	
   

  	
  0.70

  	
  %

  	
  75.28

  	
  %

  
	
  44

  	
   

  	
  S9WS

  	
   

  	
  RCP - Sharpe

  	
   

  	
  French Camp

  	
   

  	
  CA

  	
   

  	
  N/A

  	
   

  	
  3

  	
   

  	
  100

  	
   

  	
  $

  	
  9,486

  	
   

  	
  $

  	
  337

  	
   

  	
  0.69

  	
  %

  	
  75.98

  	
  %

  
	
  45

  	
   

  	
  SZOB

  	
   

  	
  Bragg

  	
   

  	
  Fayettesville

  	
   

  	
  NC

  	
   

  	
  N/A

  	
   

  	
  2

  	
   

  	
  61

  	
   

  	
  $

  	
  6,746

  	
   

  	
  $

  	
  331

  	
   

  	
  0.68

  	
  %

  	
  76.66

  	
  %

  
	
  46

  	
   

  	
  SYCA

  	
   

  	
  Colorado Springs

  	
   

  	
  Colorado Springs

  	
   

  	
  CO

  	
   

  	
  N/A

  	
   

  	
  6

  	
   

  	
  58

  	
   

  	
  $

  	
  15,649

  	
   

  	
  $

  	
  323

  	
   

  	
  0.66

  	
  %

  	
  77.32

  	
  %

  
	
  47

  	
   

  	
  SYKF

  	
   

  	
  Offutt

  	
   

  	
  Offutt

  	
   

  	
  NE

  	
   

  	
  N/A

  	
   

  	
  2

  	
   

  	
  63

  	
   

  	
  $

  	
  8,155

  	
   

  	
  $

  	
  315

  	
   

  	
  0.65

  	
  %

  	
  77.96

  	
  %

  
	
  48

  	
   

  	
  SYTF

  	
   

  	
  Vandenberg

  	
   

  	
  Lompoc

  	
   

  	
  CA

  	
   

  	
  N/A

  	
   

  	
  4

  	
   

  	
  42

  	
   

  	
  $

  	
  13,596

  	
   

  	
  $

  	
  306

  	
   

  	
  0.63

  	
  %

  	
  78.59

  	
  %

  
	
  49

  	
   

  	
  SZGA

  	
   

  	
  McClellan

  	
   

  	
  Sacramento

  	
   

  	
  CA

  	
   

  	
  Sep - 2000

  	
   

  	
  8

  	
   

  	
  142

  	
   

  	
  $

  	
  83,663

  	
   

  	
  $

  	
  299

  	
   

  	
  0.61

  	
  %

  	
  79.21

  	
  %

  
	
  50

  	
   

  	
  SWRS

  	
   

  	
  Stewart

  	
   

  	
  Hinesville

  	
   

  	
  GA

  	
   

  	
  N/A

  	
   

  	
  2

  	
   

  	
  61

  	
   

  	
  $

  	
  9,181

  	
   

  	
  $

  	
  292

  	
   

  	
  0.60

  	
  %

  	
  79.81

  	
  %

  
	
  51

  	
   

  	
  SXQK

  	
   

  	
  Keesler

  	
   

  	
  Biloxi

  	
   

  	
  MS

  	
   

  	
  N/A

  	
   

  	
  2

  	
   

  	
  146

  	
   

  	
  $

  	
  6,946

  	
   

  	
  $

  	
  279

  	
   

  	
  0.57

  	
  %

  	
  80.38

  	
  %

  
	
  52

  	
   

  	
  S9WE

  	
   

  	
  RPC - Norfolk

  	
   

  	
  Norfolk

  	
   

  	
  VA

  	
   

  	
  N/A

  	
   

  	
  5

  	
   

  	
  50

  	
   

  	
  $

  	
  13,958

  	
   

  	
  $

  	
  278

  	
   

  	
  0.57

  	
  %

  	
  80.95

  	
  %

  
	
  53

  	
   

  	
  SWBL

  	
   

  	
  Lejeune

  	
   

  	
  Jacksonville

  	
   

  	
  NC

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  101

  	
   

  	
  $

  	
  12,509

  	
   

  	
  $

  	
  277

  	
   

  	
  0.57

  	
  %

  	
  81.52

  	
  %

  
	
  54

  	
   

  	
  SVQA

  	
   

  	
  Crane

  	
   

  	
  Crane

  	
   

  	
  IN

  	
   

  	
  N/A

  	
   

  	
  2

  	
   

  	
  3,930

  	
   

  	
  $

  	
  64,128

  	
   

  	
  $

  	
  275

  	
   

  	
  0.56

  	
  %

  	
  82.08

  	
  %

  
	
  55

  	
   

  	
  SVFA

  	
   

  	
  Philadelphia

  	
   

  	
  Philadelphia

  	
   

  	
  PA

  	
   

  	
  Jun - 1999

  	
   

  	
  2

  	
   

  	
  27

  	
   

  	
  $

  	
  4,077

  	
   

  	
  $

  	
  274

  	
   

  	
  0.56

  	
  %

  	
  82.85

  	
  %

  
	
  56

  	
   

  	
  SVXS

  	
   

  	
  Selfridge

  	
   

  	
  Mt. Clements

  	
   

  	
  MI

  	
   

  	
  N/A

  	
   

  	
  3

  	
   

  	
  47

  	
   

  	
  $

  	
  8,177

  	
   

  	
  $

  	
  271

  	
   

  	
  0.56

  	
  %

  	
  83.20

  	
  %

  
	
  57

  	
   

  	
  S9WM

  	
   

  	
  RCP - Mechanicsburg

  	
   

  	
  Mechanicsburg

  	
   

  	
  PA

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  3,234

  	
   

  	
  $

  	
  5,900

  	
   

  	
   

  	
  270

  	
   

  	
  0.55

  	
  %

  	
  83.76

  	
  %

  
	
  58

  	
   

  	
  SXUA

  	
   

  	
  Knox

  	
   

  	
  Elizabethtown

  	
   

  	
  KY

  	
   

  	
  N/A

  	
   

  	
  5

  	
   

  	
  41

  	
   

  	
  $

  	
  9,057

  	
   

  	
  $

  	
  254

  	
   

  	
  0.52

  	
  %

  	
  84.28

  	
  %

  
	
  59

  	
   

  	
  SYUK

  	
   

  	
  North Island

  	
   

  	
  San Diego

  	
   

  	
  CA

  	
   

  	
  N/A

  	
   

  	
  5

  	
   

  	
  65

  	
   

  	
  $

  	
  28,046

  	
   

  	
  $

  	
  247

  	
   

  	
  0.51

  	
  %

  	
  84.79

  	
  %

  
	
  60

  	
   

  	
  SXQA

  	
   

  	
  Eglin

  	
   

  	
  Ft. Walton Beach

  	
   

  	
  FL

  	
   

  	
  N/A

  	
   

  	
  2

  	
   

  	
  18

  	
   

  	
  $

  	
  7,157

  	
   

  	
  $

  	
  245

  	
   

  	
  0.50

  	
  %

  	
  85.29

  	
  %

  
	
  61

  	
   

  	
  SXGR

  	
   

  	
  Roosevelts Roads

  	
   

  	
  U.S.Naval Station

  	
   

  	
  PR

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  13

  	
   

  	
  $

  	
  4,686

  	
   

  	
   

  	
  242

  	
   

  	
  0.50

  	
  %

  	
  85.79

  	
  %

  
	
  62

  	
   

  	
  SZAA

  	
   

  	
  Holloman

  	
   

  	
  Alamagordo

  	
   

  	
  NM

  	
   

  	
  N/A

  	
   

  	
  2

  	
   

  	
  28

  	
   

  	
  $

  	
  6,893

  	
   

  	
  $

  	
  241

  	
   

  	
  0.49

  	
  %

  	
  86.28

  	
  %

  
	
  63

  	
   

  	
  SXMK

  	
   

  	
  Keesler

  	
   

  	
  Biloxi

  	
   

  	
  MS

  	
   

  	
  N/A

  	
   

  	
  2

  	
   

  	
  109

  	
   

  	
  $

  	
  5,875

  	
   

  	
  $

  	
  240

  	
   

  	
  0.49

  	
  %

  	
  86.77

  	
  %

  
	
  64

  	
   

  	
  SVKW

  	
   

  	
  Whiteman

  	
   

  	
  Knob Noster

  	
   

  	
  MO

  	
   

  	
  N/A

  	
   

  	
  2

  	
   

  	
  24

  	
   

  	
  $

  	
  6,657

  	
   

  	
  $

  	
  233

  	
   

  	
  0.48

  	
  %

  	
  87.25

  	
  %

  
	
  65

  	
   

  	
  SVKA

  	
   

  	
  Rock Island

  	
   

  	
  Rock Island

  	
   

  	
  IL

  	
   

  	
  N/A

  	
   

  	
  3

  	
   

  	
  36

  	
   

  	
  $

  	
  7,106

  	
   

  	
  $

  	
  230

  	
   

  	
  0.47

  	
  %

  	
  87.72

  	
  %

  
	
  66

  	
   

  	
  STWC

  	
   

  	
  Aberdeen

  	
   

  	
  Aberdeen Proving Grour

  	
   

  	
  MD

  	
   

  	
  Sep - 1999

  	
   

  	
  1

  	
   

  	
  20

  	
   

  	
  $

  	
  3,371

  	
   

  	
   

  	
  223

  	
   

  	
  0.46

  	
  %

  	
  88.18

  	
  %

  
	
  67

  	
   

  	
  SZQA

  	
   

  	
  Lejeune

  	
   

  	
  Jacksonville

  	
   

  	
  NC

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  70

  	
   

  	
  $

  	
  7,331

  	
   

  	
  $

  	
  197

  	
   

  	
  0.40

  	
  %

  	
  88.58

  	
  %

  
	
  68

  	
   

  	
  SWEC

  	
   

  	
  Huntsville

  	
   

  	
  Huntsville

  	
   

  	
  AL

  	
   

  	
  N/A

  	
   

  	
  5

  	
   

  	
  58

  	
   

  	
  $

  	
  12,620

  	
   

  	
  $

  	
  196

  	
   

  	
  0.40

  	
  %

  	
  88.99

  	
  %

  
	
  69

  	
   

  	
  SYUM

  	
   

  	
  March

  	
   

  	
  Riverside

  	
   

  	
  CA

  	
   

  	
  N/A

  	
   

  	
  6

  	
   

  	
  96

  	
   

  	
  $

  	
  7,646

  	
   

  	
  $

  	
  196

  	
   

  	
  0.40

  	
  %

  	
  89.39

  	
  %

  
	
  70

  	
   

  	
  SVCT

  	
   

  	
  Tobyhanna

  	
   

  	
  Tobyhanna

  	
   

  	
  PA

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  60

  	
   

  	
  $

  	
  21,611

  	
   

  	
  $

  	
  195

  	
   

  	
  0.40

  	
  %

  	
  89.79

  	
  %

  
	
  71

  	
   

  	
  SVKG

  	
   

  	
  Great Lakes

  	
   

  	
  Great Lakes

  	
   

  	
  IL

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  113

  	
   

  	
  $

  	
  6,555

  	
   

  	
  $

  	
  193

  	
   

  	
  0.40

  	
  %

  	
  90.19

  	
  %

  
	
  72

  	
   

  	
  SVXP

  	
   

  	
  Wright-Patterson

  	
   

  	
  Dayton

  	
   

  	
  OH

  	
   

  	
  N/A

  	
   

  	
  4

  	
   

  	
  67

  	
   

  	
  $

  	
  7,745

  	
   

  	
  $

  	
  185

  	
   

  	
  0.38

  	
  %

  	
  90.57

  	
  %

  
	
  73

  	
   

  	
  S9WD

  	
   

  	
  RCP - Cherry

  	
   

  	
  Cherry Point

  	
   

  	
  NC

  	
   

  	
  N/A

  	
   

  	
  0

  	
   

  	
  14

  	
   

  	
  $

  	
  8,360

  	
   

  	
  $

  	
  181

  	
   

  	
  0.37

  	
  %

  	
  90.94

  	
  %

  
	
  74

  	
   

  	
  SXMR

  	
   

  	
  Rucker

  	
   

  	
  Ozark

  	
   

  	
  AL

  	
   

  	
  Mar - 1999

  	
   

  	
  0

  	
   

  	
  2

  	
   

  	
  $

  	
  4,660

  	
   

  	
  $

  	
  179

  	
   

  	
  0.37

  	
  %

  	
  91.31

  	
  %

  
	
  75

  	
   

  	
  SY3D

  	
   

  	
  Fort Sill

  	
   

  	
  Lawton

  	
   

  	
  OK

  	
   

  	
  Sep - 1999

  	
   

  	
  3

  	
   

  	
  167

  	
   

  	
  $

  	
  6,126

  	
   

  	
  $

  	
  177

  	
   

  	
  0.36

  	
  %

  	
  91.67

  	
  %

  
	
  76

  	
   

  	
  STHA

  	
   

  	
  Portsmouth

  	
   

  	
  Portsmouth

  	
   

  	
  NH

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  19

  	
   

  	
  $

  	
  5,843

  	
   

  	
  $

  	
  170

  	
   

  	
  0.35

  	
  %

  	
  92.02

  	
  %

  
	
  77

  	
   

  	
  SXVA

  	
   

  	
  Cambell

  	
   

  	
  Clarksville

  	
   

  	
  KY

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  22

  	
   

  	
  $

  	
  3,746

  	
   

  	
  $

  	
  165

  	
   

  	
  0.34

  	
  %

  	
  92.36

  	
  %

  
	
  78

  	
   

  	
  ST3A

  	
   

  	
  Belvolr

  	
   

  	
  Alexandria

  	
   

  	
  VA

  	
   

  	
  Jun - 1999

  	
   

  	
  3

  	
   

  	
  14

  	
   

  	
  $

  	
  7,271

  	
   

  	
  $

  	
  164

  	
   

  	
  0.34

  	
  %

  	
  92.69

  	
  %

  
	
  79

  	
   

  	
  SVKT

  	
   

  	
  Sparta

  	
   

  	
  Sparta

  	
   

  	
  WI

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  9

  	
   

  	
  $

  	
  3,882

  	
   

  	
  $

  	
  156

  	
   

  	
  0.32

  	
  %

  	
  93.01

  	
  %

  
	
  80

  	
   

  	
  SXME

  	
   

  	
  Eglin

  	
   

  	
  Ft. Walton Beach

  	
   

  	
  FL

  	
   

  	
  N/A

  	
   

  	
  3

  	
   

  	
  17

  	
   

  	
  $

  	
  9,055

  	
   

  	
  $

  	
  155

  	
   

  	
  0.32

  	
  %

  	
  93.33

  	
  %

  
	
  81

  	
   

  	
  SZCH

  	
   

  	
  Travis

  	
   

  	
  Fairfield

  	
   

  	
  CA

  	
   

  	
  Jun - 1999

  	
   

  	
  1

  	
   

  	
  25

  	
   

  	
  $

  	
  12,084

  	
   

  	
  $

  	
  154

  	
   

  	
  0.32

  	
  %

  	
  93.65

  	
  %

  
	
  82

  	
   

  	
  STHG

  	
   

  	
  Grolon

  	
   

  	
  New London

  	
   

  	
  CT

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  19

  	
   

  	
  $

  	
  6,258

  	
   

  	
  $

  	
  130

  	
   

  	
  0.27

  	
  %

  	
  93.91

  	
  %

  
	
  83

  	
   

  	
  SYUE

  	
   

  	
  EI Toro

  	
   

  	
  East Irvine

  	
   

  	
  CA

  	
   

  	
  Mar - 1999

  	
   

  	
  1

  	
   

  	
  26

  	
   

  	
  $

  	
  4,529

  	
   

  	
  $

  	
  128

  	
   

  	
  0.26

  	
  %

  	
  94.18

  	
  %

  
	
  84

  	
   

  	
  S9WQ

  	
   

  	
  RCP - Tracy

  	
   

  	
  Tracy

  	
   

  	
  CA

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  145

  	
   

  	
  $

  	
  4,157

  	
   

  	
  $

  	
  127

  	
   

  	
  0.26

  	
  %

  	
  94.44

  	
  %

  

 

15.2

Table II-2a

CV-2 Product Pool

FY 1999 Results for Individual CONUS DRMOs

Ranked by FY 1999 Gross Proceeds

(All amounts in Thousands)

 

	
  Rank by Gross

  	
   

  	
  DRMO Identifier (RIC + RIC

  	
   

  	
   

  	
   

  	
  DRMO Location

  	
   

  	
  Closure

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Unadjusted

  	
   

  	
  Gross

  	
   

  	
  % of CONUS Gross

  	
   

  	
  Cumulative % of CONUS Gross

  	
   

  
	
  Proceeds

  	
   

  	
  Suffix)

  	
   

  	
  DRMO Name

  	
   

  	
  City

  	
   

  	
  State

  	
   

  	
  Date

  	
   

  	
  Line Items

  	
   

  	
  Quantity

  	
   

  	
  Acq. value

  	
   

  	
  Proceeds

  	
   

  	
  Proceeds

  	
   

  	
  Proceeds

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (000s)

  	
   

  	
  (000s)

  	
   

  	
  ($000s)

  	
   

  	
  ($000s)

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  85

  	
   

  	
  ST4B

  	
   

  	
  Williamsburg

  	
   

  	
  Williamsburg

  	
   

  	
  VA

  	
   

  	
  Jun - 1999

  	
   

  	
  2

  	
   

  	
  27

  	
   

  	
  $

  	
  5,115

  	
   

  	
  $

  	
  127

  	
   

  	
  0.26

  	
  %

  	
  94.70

  	
  %

  
	
  86

  	
   

  	
  SWRF

  	
   

  	
  Forest Park

  	
   

  	
  Forest Park

  	
   

  	
  GA

  	
   

  	
  Mar - 1999

  	
   

  	
  1

  	
   

  	
  11

  	
   

  	
  $

  	
  7,886

  	
   

  	
  $

  	
  124

  	
   

  	
  0.25

  	
  %

  	
  94.95

  	
  %

  
	
  87

  	
   

  	
  SY5L

  	
   

  	
  Little Rock

  	
   

  	
  Little Rock

  	
   

  	
  AR

  	
   

  	
  Mar - 1999

  	
   

  	
  0

  	
   

  	
  124

  	
   

  	
  $

  	
  1,380

  	
   

  	
  $

  	
  122

  	
   

  	
  0.25

  	
  %

  	
  95.20

  	
  %

  
	
  88

  	
   

  	
  SYMN

  	
   

  	
  Nellis

  	
   

  	
  Las Vegas

  	
   

  	
  NV

  	
   

  	
  N/A

  	
   

  	
  2

  	
   

  	
  42

  	
   

  	
  $

  	
  3,749

  	
   

  	
  $

  	
  121

  	
   

  	
  0.25

  	
  %

  	
  95.45

  	
  %

  
	
  89

  	
   

  	
  SXMA

  	
   

  	
  Pensacola

  	
   

  	
  Pensacola

  	
   

  	
  FL

  	
   

  	
  Jun - 1999

  	
   

  	
  3

  	
   

  	
  11

  	
   

  	
  $

  	
  2,139

  	
   

  	
  $

  	
  115

  	
   

  	
  0.24

  	
  %

  	
  95.69

  	
  %

  
	
  90

  	
   

  	
  S9WL

  	
   

  	
  RCP - Barstow

  	
   

  	
  Barstow

  	
   

  	
  CA

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  34

  	
   

  	
  $

  	
  6,558

  	
   

  	
  $

  	
  110

  	
   

  	
  0.23

  	
  %

  	
  95.91

  	
  %

  
	
  91

  	
   

  	
  SZ7C

  	
   

  	
  Dyess

  	
   

  	
  Abilene

  	
   

  	
  TX

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  19

  	
   

  	
  $

  	
  3,094

  	
   

  	
  $

  	
  107

  	
   

  	
  0.22

  	
  %

  	
  96.13

  	
  %

  
	
  92

  	
   

  	
  SZQC

  	
   

  	
  Cherry Point

  	
   

  	
  Cherry Point

  	
   

  	
  NC

  	
   

  	
  Closed

  	
   

  	
  0

  	
   

  	
  13

  	
   

  	
  $

  	
  4,641

  	
   

  	
  $

  	
  105

  	
   

  	
  0.21

  	
  %

  	
  96.35

  	
  %

  
	
  93

  	
   

  	
  SYKM

  	
   

  	
  Minot

  	
   

  	
  Minot

  	
   

  	
  ND

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  16

  	
   

  	
  $

  	
  2,115

  	
   

  	
  $

  	
  99

  	
   

  	
  0.20

  	
  %

  	
  96.55

  	
  %

  
	
  94

  	
   

  	
  SXQP

  	
   

  	
  Pensacola

  	
   

  	
  Pensacola

  	
   

  	
  FL

  	
   

  	
  Closed

  	
   

  	
  1

  	
   

  	
  6

  	
   

  	
  $

  	
  3,191

  	
   

  	
  $

  	
  98

  	
   

  	
  0.20

  	
  %

  	
  96.75

  	
  %

  
	
  95

  	
   

  	
  SZTA

  	
   

  	
  Luke

  	
   

  	
  Glendale

  	
   

  	
  AZ

  	
   

  	
  Jun - 1999

  	
   

  	
  0

  	
   

  	
  10

  	
   

  	
  $

  	
  6,473

  	
   

  	
  $

  	
  88

  	
   

  	
  0.18

  	
  %

  	
  96.93

  	
  %

  
	
  96

  	
   

  	
  S9WP

  	
   

  	
  RCP - Richmond

  	
   

  	
  Richmond

  	
   

  	
  VA

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  58

  	
   

  	
  $

  	
  3,264

  	
   

  	
  $

  	
  86

  	
   

  	
  0.18

  	
  %

  	
  97.11

  	
  %

  
	
  97

  	
   

  	
  SYKE

  	
   

  	
  Great Falls

  	
   

  	
  Great Falls

  	
   

  	
  MT

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  16

  	
   

  	
  $

  	
  1,235

  	
   

  	
  $

  	
  85

  	
   

  	
  0.17

  	
  %

  	
  97.28

  	
  %

  
	
  98

  	
   

  	
  S9WR

  	
   

  	
  RCP - Red River

  	
   

  	
  Texarkana

  	
   

  	
  TX

  	
   

  	
  N/A

  	
   

  	
  0

  	
   

  	
  33

  	
   

  	
  $

  	
  2,678

  	
   

  	
  $

  	
  82

  	
   

  	
  0.17

  	
  %

  	
  97.45

  	
  %

  
	
  99

  	
   

  	
  STHR

  	
   

  	
  Romulus

  	
   

  	
  Romulus

  	
   

  	
  NY

  	
   

  	
  Sep - 2000

  	
   

  	
  0

  	
   

  	
  7

  	
   

  	
  $

  	
  1,533

  	
   

  	
  $

  	
  81

  	
   

  	
  0.17

  	
  %

  	
  97.61

  	
  %

  
	
  100

  	
   

  	
  SXQR

  	
   

  	
  Rucker

  	
   

  	
  Ozark

  	
   

  	
  AL

  	
   

  	
  Closed

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  $

  	
  716

  	
   

  	
  $

  	
  79

  	
   

  	
  0.16

  	
  %

  	
  97.78

  	
  %

  
	
  101

  	
   

  	
  SYBC

  	
   

  	
  Mountain Home

  	
   

  	
  Mountain Home

  	
   

  	
  ID

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  14

  	
   

  	
  $

  	
  2,001

  	
   

  	
  $

  	
  78

  	
   

  	
  0.16

  	
  %

  	
  97.94

  	
  %

  
	
  102

  	
   

  	
  SXLM

  	
   

  	
  Homestead

  	
   

  	
  Homestead

  	
   

  	
  FL

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  9

  	
   

  	
  $

  	
  2,024

  	
   

  	
  $

  	
  74

  	
   

  	
  0.15

  	
  %

  	
  98.09

  	
  %

  
	
  103

  	
   

  	
  SXVK

  	
   

  	
  Knox

  	
   

  	
  Elizabethtown

  	
   

  	
  KY

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  22

  	
   

  	
  $

  	
  4,144

  	
   

  	
  $

  	
  73

  	
   

  	
  0.15

  	
  %

  	
  98.24

  	
  %

  
	
  104

  	
   

  	
  SYUP

  	
   

  	
  Pendleton

  	
   

  	
  Oceanside

  	
   

  	
  CA

  	
   

  	
  Jun - 1999

  	
   

  	
  1

  	
   

  	
  29

  	
   

  	
  $

  	
  2,151

  	
   

  	
  $

  	
  69

  	
   

  	
  0.14

  	
  %

  	
  98.38

  	
  %

  
	
  105

  	
   

  	
  SZGS

  	
   

  	
  Sierra

  	
   

  	
  Herlong

  	
   

  	
  CA

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  7

  	
   

  	
  $

  	
  2,937

  	
   

  	
  $

  	
  66

  	
   

  	
  0.13

  	
  %

  	
  98.52

  	
  %

  
	
  106

  	
   

  	
  SYKA

  	
   

  	
  Ellsworth

  	
   

  	
  Rapid City

  	
   

  	
  SD

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  20

  	
   

  	
  $

  	
  1,007

  	
   

  	
  $

  	
  60

  	
   

  	
  0.12

  	
  %

  	
  98.64

  	
  %

  
	
  107

  	
   

  	
  SZPD

  	
   

  	
  Fairchild

  	
   

  	
  Spokane

  	
   

  	
  WA

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  9

  	
   

  	
  $

  	
  3,730

  	
   

  	
  $

  	
  55

  	
   

  	
  0.11

  	
  %

  	
  98.75

  	
  %

  
	
  108

  	
   

  	
  S9WU

  	
   

  	
  RCP - Anniston

  	
   

  	
  Anniston

  	
   

  	
  AL

  	
   

  	
  N/A

  	
   

  	
  0

  	
   

  	
  13

  	
   

  	
  $

  	
  2,275

  	
   

  	
  $

  	
  54

  	
   

  	
  0.11

  	
  %

  	
  98.87

  	
  %

  
	
  109

  	
   

  	
  S9WV

  	
   

  	
  RCP - Corpus Christi

  	
   

  	
  Corpus Christi

  	
   

  	
  TX

  	
   

  	
  N/A

  	
   

  	
  0

  	
   

  	
  3

  	
   

  	
  $

  	
  3,121

  	
   

  	
  $

  	
  53

  	
   

  	
  0.11

  	
  %

  	
  98.97

  	
  %

  
	
  110

  	
   

  	
  SZAK

  	
   

  	
  Kirtland

  	
   

  	
  Alburquerque

  	
   

  	
  NM

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  27

  	
   

  	
  $

  	
  2,136

  	
   

  	
  $

  	
  50

  	
   

  	
  0.10

  	
  %

  	
  99.08

  	
  %

  
	
  111

  	
   

  	
  SYME

  	
   

  	
  Edwards

  	
   

  	
  Rosamond

  	
   

  	
  CA

  	
   

  	
  Mar - 1999

  	
   

  	
  0

  	
   

  	
  2

  	
   

  	
  $

  	
  1,139

  	
   

  	
  $

  	
  47

  	
   

  	
  0.10

  	
  %

  	
  99.17

  	
  %

  
	
  112

  	
   

  	
  SVKD

  	
   

  	
  Duluth

  	
   

  	
  Duluth

  	
   

  	
  MN

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  24

  	
   

  	
  $

  	
  2,376

  	
   

  	
  $

  	
  47

  	
   

  	
  0.10

  	
  %

  	
  99.27

  	
  %

  
	
  113

  	
   

  	
  SYKG

  	
   

  	
  Grand Forks

  	
   

  	
  Grand Forks

  	
   

  	
  ND

  	
   

  	
  Jun - 1999

  	
   

  	
  1

  	
   

  	
  5

  	
   

  	
  $

  	
  1,922

  	
   

  	
  $

  	
  46

  	
   

  	
  0.09

  	
  %

  	
  99.36

  	
  %

  
	
  114

  	
   

  	
  S9WO

  	
   

  	
  RCP - Columbus

  	
   

  	
  Columbus

  	
   

  	
  OH

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  14

  	
   

  	
  $

  	
  1,466

  	
   

  	
  $

  	
  39

  	
   

  	
  0.08

  	
  %

  	
  99.44

  	
  %

  
	
  115

  	
   

  	
  SZ7D

  	
   

  	
  Sheppard

  	
   

  	
  Wichita Falls

  	
   

  	
  TX

  	
   

  	
  Mar - 1999

  	
   

  	
  0

  	
   

  	
  9

  	
   

  	
  $

  	
  1,412

  	
   

  	
  $

  	
  39

  	
   

  	
  0.08

  	
  %

  	
  99.52

  	
  %

  
	
  116

  	
   

  	
  S9WK

  	
   

  	
  RCP - Albany

  	
   

  	
  Albany

  	
   

  	
  GA

  	
   

  	
  N/A

  	
   

  	
  0

  	
   

  	
  136

  	
   

  	
  $

  	
  1,022

  	
   

  	
  $

  	
  37

  	
   

  	
  0.08

  	
  %

  	
  99.60

  	
  %

  
	
  117

  	
   

  	
  SZLB

  	
   

  	
  Cannon

  	
   

  	
  Clovis

  	
   

  	
  NM

  	
   

  	
  N/A

  	
   

  	
  0

  	
   

  	
  3

  	
   

  	
  $

  	
  2,480

  	
   

  	
  $

  	
  36

  	
   

  	
  0.07

  	
  %

  	
  99.67

  	
  %

  
	
  118

  	
   

  	
  SZSN

  	
   

  	
  Nellis

  	
   

  	
  Las Vegas

  	
   

  	
  NV

  	
   

  	
  N/A

  	
   

  	
  0

  	
   

  	
  17

  	
   

  	
  $

  	
  1,171

  	
   

  	
  $

  	
  31

  	
   

  	
  0.06

  	
  %

  	
  99.74

  	
  %

  
	
  119

  	
   

  	
  SVED

  	
   

  	
  Drum

  	
   

  	
  Fort Drum

  	
   

  	
  NY

  	
   

  	
  N/A

  	
   

  	
  0

  	
   

  	
  8

  	
   

  	
  $

  	
  1,061

  	
   

  	
  $

  	
  30

  	
   

  	
  0.06

  	
  %

  	
  99.80

  	
  %

  
	
  120

  	
   

  	
  SZSS

  	
   

  	
  Sierra

  	
   

  	
  Herlong

  	
   

  	
  CA

  	
   

  	
  N/A

  	
   

  	
  0

  	
   

  	
  9

  	
   

  	
  $

  	
  1,512

  	
   

  	
  $

  	
  24

  	
   

  	
  0.05

  	
  %

  	
  99.85

  	
  %

  
	
  121

  	
   

  	
  SXGP

  	
   

  	
  Panama

  	
   

  	
  Panama

  	
   

  	
   

  	
   

  	
  Nov - 1999

  	
   

  	
  0

  	
   

  	
  3

  	
   

  	
  $

  	
  342

  	
   

  	
  $

  	
  22

  	
   

  	
  0.05

  	
  %

  	
  99.89

  	
  %

  
	
  122

  	
   

  	
  SXLT

  	
   

  	
  Tampa

  	
   

  	
  Tempa

  	
   

  	
  FL

  	
   

  	
  Mar - 1999

  	
   

  	
  0

  	
   

  	
  1

  	
   

  	
  $

  	
  323

  	
   

  	
  $

  	
  13

  	
   

  	
  0.03

  	
  %

  	
  99.92

  	
  %

  
	
  123

  	
   

  	
  SYMD

  	
   

  	
  Twenty-Nine Palms

  	
   

  	
  Palm Springs

  	
   

  	
  CA

  	
   

  	
  Mar - 1999

  	
   

  	
  0

  	
   

  	
  2

  	
   

  	
  $

  	
  369

  	
   

  	
  $

  	
  12

  	
   

  	
  0.02

  	
  %

  	
  99.95

  	
  %

  
	
  124

  	
   

  	
  SZSB

  	
   

  	
  Huachuca

  	
   

  	
  Huachuca

  	
   

  	
  AZ

  	
   

  	
  Mar - 1999

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  $

  	
  389

  	
   

  	
  $

  	
  8

  	
   

  	
  0.02

  	
  %

  	
  99.96

  	
  %

  
	
  125

  	
   

  	
  S9WC

  	
   

  	
  RCP - Puget Sound

  	
   

  	
  Bremerton

  	
   

  	
  WA

  	
   

  	
  N/A

  	
   

  	
  0

  	
   

  	
  9

  	
   

  	
  $

  	
  1,737

  	
   

  	
  $

  	
  7

  	
   

  	
  0.01

  	
  %

  	
  99.98

  	
  %

  
	
  126

  	
   

  	
  SZAC

  	
   

  	
  Cannon

  	
   

  	
  Clovis

  	
   

  	
  NM

  	
   

  	
  N/A

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  $

  	
  2,227

  	
   

  	
  $

  	
  6

  	
   

  	
  0.01

  	
  %

  	
  99.99

  	
  %

  

 

15.3

 

Table II-2a

CV-2 Product Pool

FY 1999 Results for Individual CONUS DRMOs

Ranked by FY 1999 Gross Proceeds

(All amounts in Thousands)

 

	
  Rank by Gross

  	
   

  	
  DRMO Identifier (RIC + RIC

  	
   

  	
   

  	
   

  	
  DRMO Location

  	
   

  	
  Closure

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Unadjusted

  	
   

  	
  Gross

  	
   

  	
  % of CONUS Gross

  	
   

  	
  Cumulative % of CONUS Gross

  	
   

  
	
  Proceeds

  	
   

  	
  Suffix)

  	
   

  	
  DRMO Name

  	
   

  	
  City

  	
   

  	
  State

  	
   

  	
  Date

  	
   

  	
  Line Items

  	
   

  	
  Quantity

  	
   

  	
  Acq. value

  	
   

  	
  Proceeds

  	
   

  	
  Proceeds

  	
   

  	
  Proceeds

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (000s)

  	
   

  	
  (000s)

  	
   

  	
  ($000s)

  	
   

  	
  ($000s)

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  127

  	
   

  	
  SZAB

  	
   

  	
  Bliss

  	
   

  	
  EI Paso

  	
   

  	
  TX

  	
   

  	
  Mar - 1999

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  $

  	
  101

  	
   

  	
  $

  	
  4

  	
   

  	
  0.01

  	
  %

  	
  100.00

  	
  %

  
	
  128

  	
   

  	
  S9WT

  	
   

  	
  RCP - Tobyhanna

  	
   

  	
  Tobyhanna

  	
   

  	
  PA

  	
   

  	
  N/A

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  $

  	
  321

  	
   

  	
  $

  	
  2

  	
   

  	
  0.00

  	
  %

  	
  100.00

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  320

  	
   

  	
  27,221

  	
   

  	
  $

  	
  2,895,715

  	
   

  	
  $

  	
  48,723

  	
   

  	
  100.00

  	
  %

  	
   

  	
   

  

 

15.4

 

Table II-2b

CV-2 Product Pool

FY 2000* Results (10 Months Only) for Individual CONUS DRMOs

Ranked by FY 2000* Gross Proceeds

(All amounts in Thousands)

 

	
  Rank by Gross

  	
   

  	
  DRMO Identifier (RIC + RIC

  	
   

  	
   

  	
   

  	
  DRMO Location

  	
   

  	
  Closure

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Unadjusted

  	
   

  	
  Gross

  	
   

  	
  % of CONUS Gross

  	
   

  	
  Cumulative % of CONUS Gross

  	
   

  
	
  Proceeds

  	
   

  	
  Suffix)

  	
   

  	
  DRMO Name

  	
   

  	
  City

  	
   

  	
  State

  	
   

  	
  Date

  	
   

  	
  Line Items

  	
   

  	
  Quantity

  	
   

  	
  Acq. value

  	
   

  	
  Proceeds

  	
   

  	
  Proceeds

  	
   

  	
  Proceeds

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (000s)

  	
   

  	
  (000s)

  	
   

  	
  ($000s)

  	
   

  	
  ($000s)

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  S9WG

  	
   

  	
  RCP - Oklahoma City

  	
   

  	
  Oklahoma City

  	
   

  	
  OK

  	
   

  	
  N/A

  	
   

  	
  5

  	
   

  	
  646

  	
   

  	
  $

  	
  141,811

  	
   

  	
  $

  	
  1,903

  	
   

  	
  5.64

  	
  %

  	
  5.64

  	
  %

  
	
  2

  	
   

  	
  SZQA

  	
   

  	
  Lejeune

  	
   

  	
  Jacksonville

  	
   

  	
  NC

  	
   

  	
  N/A

  	
   

  	
  3

  	
   

  	
  187

  	
   

  	
  $

  	
  52,743

  	
   

  	
  $

  	
  1,519

  	
   

  	
  4.50

  	
  %

  	
  10.14

  	
  %

  
	
  3

  	
   

  	
  SVEA

  	
   

  	
  Mechanicsburg

  	
   

  	
  Mechanicsburg

  	
   

  	
  PA

  	
   

  	
  N/A

  	
   

  	
  3

  	
   

  	
  1,070

  	
   

  	
  $

  	
  23,315

  	
   

  	
  $

  	
  1,293

  	
   

  	
  3.83

  	
  %

  	
  13.98

  	
  %

  
	
  4

  	
   

  	
  SY6A

  	
   

  	
  San Antonio

  	
   

  	
  San Antonio

  	
   

  	
  TX

  	
   

  	
  N/A

  	
   

  	
  6

  	
   

  	
  161

  	
   

  	
  $

  	
  85,340

  	
   

  	
  $

  	
  1,162

  	
   

  	
  3.44

  	
  %

  	
  17.42

  	
  %

  
	
  5

  	
   

  	
  S9WA

  	
   

  	
  RCP - San Diego

  	
   

  	
  San Diego

  	
   

  	
  CA

  	
   

  	
  N/A

  	
   

  	
  6

  	
   

  	
  148

  	
   

  	
  $

  	
  165,658

  	
   

  	
  $

  	
  1,095

  	
   

  	
  3.24

  	
  %

  	
  20.67

  	
  %

  
	
  6

  	
   

  	
  S9WJ

  	
   

  	
  RCP - San Antonio

  	
   

  	
  San Antonio

  	
   

  	
  TX

  	
   

  	
  N/A

  	
   

  	
  5

  	
   

  	
  558

  	
   

  	
  $

  	
  52,551

  	
   

  	
  $

  	
  1,036

  	
   

  	
  3.07

  	
  %

  	
  23.74

  	
  %

  
	
  7

  	
   

  	
  SY4A

  	
   

  	
  Riley

  	
   

  	
  Fort Riley

  	
   

  	
  KS

  	
   

  	
  N/A

  	
   

  	
  3

  	
   

  	
  2,273

  	
   

  	
  $

  	
  29,318

  	
   

  	
  $

  	
  945

  	
   

  	
  2.80

  	
  %

  	
  26.54

  	
  %

  
	
  8

  	
   

  	
  S9WB

  	
   

  	
  RCP - Jacksonville

  	
   

  	
  Jacksonville

  	
   

  	
  FL

  	
   

  	
  N/A

  	
   

  	
  2

  	
   

  	
  70

  	
   

  	
  $

  	
  57,997

  	
   

  	
  $

  	
  902

  	
   

  	
  2.67

  	
  %

  	
  29.21

  	
  %

  
	
  9

  	
   

  	
  SZSA

  	
   

  	
  Tucson

  	
   

  	
  Tucson

  	
   

  	
  AZ

  	
   

  	
  N/A

  	
   

  	
  0

  	
   

  	
  9

  	
   

  	
  $

  	
  20,880

  	
   

  	
  $

  	
  902

  	
   

  	
  2.67

  	
  %

  	
  31.88

  	
  %

  
	
  10

  	
   

  	
  S9WD

  	
   

  	
  RCP - Cherry

  	
   

  	
  Cherry Point

  	
   

  	
  NC

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  56

  	
   

  	
  $

  	
  41,426

  	
   

  	
  $

  	
  859

  	
   

  	
  2.55

  	
  %

  	
  34.43

  	
  %

  
	
  11

  	
   

  	
  SZCA

  	
   

  	
  Stockton

  	
   

  	
  Stockton

  	
   

  	
  CA

  	
   

  	
  N/A

  	
   

  	
  7

  	
   

  	
  972

  	
   

  	
  $

  	
  30,403

  	
   

  	
  $

  	
  779

  	
   

  	
  2.31

  	
  %

  	
  36.74

  	
  %

  
	
  12

  	
   

  	
  S9WH

  	
   

  	
  RCP - Hill

  	
   

  	
  Hill

  	
   

  	
  UT

  	
   

  	
  N/A

  	
   

  	
  5

  	
   

  	
  371

  	
   

  	
  $

  	
  79,623

  	
   

  	
  $

  	
  746

  	
   

  	
  2.21

  	
  %

  	
  38.95

  	
  %

  
	
  13

  	
   

  	
  S9WE

  	
   

  	
  RPC - Norfolk

  	
   

  	
  Forfolk

  	
   

  	
  VA

  	
   

  	
  N/A

  	
   

  	
  6

  	
   

  	
  214

  	
   

  	
  $

  	
  54,764

  	
   

  	
  $

  	
  721

  	
   

  	
  2.14

  	
  %

  	
  41.09

  	
  %

  
	
  14

  	
   

  	
  SY5A

  	
   

  	
  Texarkana

  	
   

  	
  Hooks

  	
   

  	
  TX

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  214

  	
   

  	
  $

  	
  14,976

  	
   

  	
  $

  	
  701

  	
   

  	
  2.08

  	
  %

  	
  43.17

  	
  %

  
	
  15

  	
   

  	
  S9WF

  	
   

  	
  RCP - Warner Robbins

  	
   

  	
  Warner Robbins

  	
   

  	
  GA

  	
   

  	
  N/A

  	
   

  	
  4

  	
   

  	
  114

  	
   

  	
  $

  	
  43,567

  	
   

  	
  $

  	
  686

  	
   

  	
  2.03

  	
  %

  	
  45.20

  	
  %

  
	
  16

  	
   

  	
  SYUA

  	
   

  	
  San Diego

  	
   

  	
  Imperial Beach

  	
   

  	
  CA

  	
   

  	
  N/A

  	
   

  	
  6

  	
   

  	
  111

  	
   

  	
  $

  	
  29,332

  	
   

  	
  $

  	
  663

  	
   

  	
  1.97

  	
  %

  	
  47.17

  	
  %

  
	
  17

  	
   

  	
  SWRA

  	
   

  	
  Warner Robbins

  	
   

  	
  Warner Robbins

  	
   

  	
  GA

  	
   

  	
  N/A

  	
   

  	
  2

  	
   

  	
  1,508

  	
   

  	
  $

  	
  44,239

  	
   

  	
  $

  	
  629

  	
   

  	
  1.87

  	
  %

  	
  49.03

  	
  %

  
	
  18

  	
   

  	
  S9WS

  	
   

  	
  RCP - Sharpe

  	
   

  	
  French Camp

  	
   

  	
  CA

  	
   

  	
  N/A

  	
   

  	
  7

  	
   

  	
  98

  	
   

  	
  $

  	
  28,512

  	
   

  	
  $

  	
  626

  	
   

  	
  1.86

  	
  %

  	
  50.89

  	
  %

  
	
  19

  	
   

  	
  SY3A

  	
   

  	
  Oklahoma City

  	
   

  	
  Oklahoma City

  	
   

  	
  OK

  	
   

  	
  N/A

  	
   

  	
  6

  	
   

  	
  241

  	
   

  	
  $

  	
  57,635

  	
   

  	
  $

  	
  604

  	
   

  	
  1.79

  	
  %

  	
  52.68

  	
  %

  
	
  20

  	
   

  	
  SZQJ

  	
   

  	
  Jackson

  	
   

  	
  Columbia

  	
   

  	
  SC

  	
   

  	
  N/A

  	
   

  	
  2

  	
   

  	
  105

  	
   

  	
  $

  	
  13,999

  	
   

  	
  $

  	
  554

  	
   

  	
  1.64

  	
  %

  	
  54.32

  	
  %

  
	
  21

  	
   

  	
  SY6C

  	
   

  	
  Corpus Christi

  	
   

  	
  Corpus Christi

  	
   

  	
  TX

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  14

  	
   

  	
  $

  	
  24,761

  	
   

  	
  $

  	
  522

  	
   

  	
  1.55

  	
  %

  	
  55.87

  	
  %

  
	
  22

  	
   

  	
  SYMA

  	
   

  	
  Barstow

  	
   

  	
  Barstow

  	
   

  	
  CA

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  73

  	
   

  	
  $

  	
  21,704

  	
   

  	
  $

  	
  498

  	
   

  	
  1.48

  	
  %

  	
  57.34

  	
  %

  
	
  23

  	
   

  	
  STWA

  	
   

  	
  Meade

  	
   

  	
  Baltimore

  	
   

  	
  MD

  	
   

  	
  N/A

  	
   

  	
  5

  	
   

  	
  55

  	
   

  	
  $

  	
  18,869

  	
   

  	
  $

  	
  486

  	
   

  	
  1.44

  	
  %

  	
  58.79

  	
  %

  
	
  24

  	
   

  	
  SXQA

  	
   

  	
  Eglin

  	
   

  	
  Ft. Walton Beach

  	
   

  	
  FL

  	
   

  	
  N/A

  	
   

  	
  4

  	
   

  	
  19

  	
   

  	
  $

  	
  16,847

  	
   

  	
  $

  	
  486

  	
   

  	
  1.44

  	
  %

  	
  60.23

  	
  %

  
	
  25

  	
   

  	
  SXVA

  	
   

  	
  Cambell

  	
   

  	
  Clarksville

  	
   

  	
  KY

  	
   

  	
  N/A

  	
   

  	
  3

  	
   

  	
  92

  	
   

  	
  $

  	
  8,135

  	
   

  	
  $

  	
  434

  	
   

  	
  1.29

  	
  %

  	
  61.51

  	
  %

  
	
  26

  	
   

  	
  SVXA

  	
   

  	
  Columbus, OH

  	
   

  	
  Columbus, Oh

  	
   

  	
  OH

  	
   

  	
  N/A

  	
   

  	
  2

  	
   

  	
  205

  	
   

  	
  $

  	
  10,786

  	
   

  	
  $

  	
  434

  	
   

  	
  1.29

  	
  %

  	
  62.80

  	
  %

  
	
  27

  	
   

  	
  SZQB

  	
   

  	
  Bragg

  	
   

  	
  Fayettesville

  	
   

  	
  NC

  	
   

  	
  N/A

  	
   

  	
  2

  	
   

  	
  199

  	
   

  	
  $

  	
  13,153

  	
   

  	
  $

  	
  409

  	
   

  	
  1.21

  	
  %

  	
  64.01

  	
  %

  
	
  28

  	
   

  	
  SWMA

  	
   

  	
  Benning

  	
   

  	
  Columbus

  	
   

  	
  GA

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  112

  	
   

  	
  $

  	
  6,257

  	
   

  	
  $

  	
  409

  	
   

  	
  1.21

  	
  %

  	
  65.23

  	
  %

  
	
  29

  	
   

  	
  SYBA

  	
   

  	
  Hill

  	
   

  	
  Ogden

  	
   

  	
  UT

  	
   

  	
  N/A

  	
   

  	
  5

  	
   

  	
  231

  	
   

  	
  $

  	
  51,333

  	
   

  	
  $

  	
  404

  	
   

  	
  1.20

  	
  %

  	
  66.42

  	
  %

  
	
  30

  	
   

  	
  SZPA

  	
   

  	
  Lewis

  	
   

  	
  Seattle

  	
   

  	
  WA

  	
   

  	
  N/A

  	
   

  	
  2

  	
   

  	
  97

  	
   

  	
  $

  	
  13,093

  	
   

  	
  $

  	
  403

  	
   

  	
  1.20

  	
  %

  	
  67.62

  	
  %

  
	
  31

  	
   

  	
  SXGA

  	
   

  	
  Jacksonville

  	
   

  	
  Jacksonville

  	
   

  	
  FL

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  49

  	
   

  	
  $

  	
  11,275

  	
   

  	
  $

  	
  382

  	
   

  	
  1.13

  	
  %

  	
  68.75

  	
  %

  
	
  32

  	
   

  	
  SY5C

  	
   

  	
  Polk

  	
   

  	
  Leesville

  	
   

  	
  LA

  	
   

  	
  N/A

  	
   

  	
  2

  	
   

  	
  63

  	
   

  	
  $

  	
  11,661

  	
   

  	
  $

  	
  355

  	
   

  	
  1.05

  	
  %

  	
  69.81

  	
  %

  
	
  33

  	
   

  	
  SZ7A

  	
   

  	
  Hood

  	
   

  	
  Killeen

  	
   

  	
  TX

  	
   

  	
  N/A

  	
   

  	
  3

  	
   

  	
  76

  	
   

  	
  $

  	
  13,510

  	
   

  	
  $

  	
  354

  	
   

  	
  1.05

  	
  %

  	
  70.86

  	
  %

  
	
  34

  	
   

  	
  ST1A

  	
   

  	
  Norfolk

  	
   

  	
  Norfolk

  	
   

  	
  VA

  	
   

  	
  N/A

  	
   

  	
  2

  	
   

  	
  69

  	
   

  	
  $

  	
  17,443

  	
   

  	
  $

  	
  327

  	
   

  	
  0.97

  	
  %

  	
  71.82

  	
  %

  
	
  35

  	
   

  	
  S9WQ

  	
   

  	
  RCP - Tracy

  	
   

  	
  Tracy

  	
   

  	
  CA

  	
   

  	
  N/A

  	
   

  	
  3

  	
   

  	
  252

  	
   

  	
  $

  	
  7,246

  	
   

  	
  $

  	
  326

  	
   

  	
  0.97

  	
  %

  	
  72.79

  	
  %

  
	
  36

  	
   

  	
  S9WR

  	
   

  	
  RCP - Red River

  	
   

  	
  Texarkana

  	
   

  	
  TX

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  70

  	
   

  	
  $

  	
  17,116

  	
   

  	
  $

  	
  323

  	
   

  	
  0.96

  	
  %

  	
  73.75

  	
  %

  
	
  37

  	
   

  	
  SVCA

  	
   

  	
  Lakehurst

  	
   

  	
  Lakshurst

  	
   

  	
  NJ

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  30

  	
   

  	
  $

  	
  11,084

  	
   

  	
  $

  	
  322

  	
   

  	
  0.96

  	
  %

  	
  74.70

  	
  %

  
	
  38

  	
   

  	
  SVKC

  	
   

  	
  Scott

  	
   

  	
  Belleville

  	
   

  	
  IL

  	
   

  	
  N/A

  	
   

  	
  2

  	
   

  	
  106

  	
   

  	
  $

  	
  13,154

  	
   

  	
  $

  	
  321

  	
   

  	
  0.95

  	
  %

  	
  75.66

  	
  %

  
	
  39

  	
   

  	
  SXVK

  	
   

  	
  Knox

  	
   

  	
  Elizabethtown

  	
   

  	
  KY

  	
   

  	
  N/A

  	
   

  	
  2

  	
   

  	
  44

  	
   

  	
  $

  	
  6,850

  	
   

  	
  $

  	
  296

  	
   

  	
  0.88

  	
  %

  	
  76.53

  	
  %

  
	
  40

  	
   

  	
  S9WU

  	
   

  	
  RCP - Anniston

  	
   

  	
  Anniston

  	
   

  	
  AL

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  65

  	
   

  	
  $

  	
  13,678

  	
   

  	
  $

  	
  294

  	
   

  	
  0.87

  	
  %

  	
  77.41

  	
  %

  
	
  41

  	
   

  	
  S9WL

  	
   

  	
  RCP - Barstow

  	
   

  	
  Barstow

  	
   

  	
  CA

  	
   

  	
  N/A

  	
   

  	
  2

  	
   

  	
  45

  	
   

  	
  $

  	
  25,968

  	
   

  	
  $

  	
  291

  	
   

  	
  0.86

  	
  %

  	
  78.27

  	
  %

  
	
  42

  	
   

  	
  STHA

  	
   

  	
  Portsmouth

  	
   

  	
  Portsmouth

  	
   

  	
  NH

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  12

  	
   

  	
  $

  	
  5,882

  	
   

  	
  $

  	
  287

  	
   

  	
  0.85

  	
  %

  	
  79.12

  	
  %

  

 

*            Data
for FY 2000 are limited to 10 months through July and are not annualized.

 

15.5

 

Table II-2b

CV-2 Product Pool

FY 2000* Results (10 Months Only) for Individual CONUS DRMOs

Ranked by FY 2000* Gross Proceeds

(All amounts in Thousands)

 

	
  Rank by Gross

  	
   

  	
  DRMO Identifier (RIC + RIC

  	
   

  	
   

  	
   

  	
  DRMO Location

  	
   

  	
  Closure

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Unadjusted

  	
   

  	
  Gross

  	
   

  	
  % of CONUS Gross

  	
   

  	
  Cumulative % of CONUS Gross

  	
   

  
	
  Proceeds

  	
   

  	
  Suffix)

  	
   

  	
  DRMO Name

  	
   

  	
  City

  	
   

  	
  State

  	
   

  	
  Date

  	
   

  	
  Line Items

  	
   

  	
  Quantity

  	
   

  	
  Acq. value

  	
   

  	
  Proceeds

  	
   

  	
  Proceeds

  	
   

  	
  Proceeds

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (000s)

  	
   

  	
  (000s)

  	
   

  	
  ($000s)

  	
   

  	
  ($000s)

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  43

  	
   

  	
  SVCT

  	
   

  	
  Tobyhanna

  	
   

  	
  Tobyhanna

  	
   

  	
  PA

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  11

  	
   

  	
  $

  	
  12,059

  	
   

  	
  $

  	
  287

  	
   

  	
  0.85

  	
  %

  	
  79.97

  	
  %

  
	
  44

  	
   

  	
  S9WM

  	
   

  	
  RCP - Mechanicsburg

  	
   

  	
  Mechanicsburg

  	
   

  	
  PA

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  5,850

  	
   

  	
  $

  	
  6,559

  	
   

  	
  $

  	
  283

  	
   

  	
  0.84

  	
  %

  	
  80.81

  	
  %

  
	
  45

  	
   

  	
  SXQK

  	
   

  	
  Keesler

  	
   

  	
  Biloxi

  	
   

  	
  MS

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  136

  	
   

  	
  $

  	
  5,940

  	
   

  	
  $

  	
  267

  	
   

  	
  0.79

  	
  %

  	
  81.60

  	
  %

  
	
  46

  	
   

  	
  SYCA

  	
   

  	
  Colorado Springs

  	
   

  	
  Colorado Springs

  	
   

  	
  CO

  	
   

  	
  N/A

  	
   

  	
  3

  	
   

  	
  40

  	
   

  	
  $

  	
  9,903

  	
   

  	
  $

  	
  263

  	
   

  	
  0.78

  	
  %

  	
  82.38

  	
  %

  
	
  47

  	
   

  	
  SWRS

  	
   

  	
  Stewart

  	
   

  	
  Hinesville

  	
   

  	
  GA

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  77

  	
   

  	
  $

  	
  7,943

  	
   

  	
  $

  	
  262

  	
   

  	
  0.78

  	
  %

  	
  83.16

  	
  %

  
	
  48

  	
   

  	
  SWEA

  	
   

  	
  Anniston

  	
   

  	
  Anniston

  	
   

  	
  AL

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  194

  	
   

  	
  $

  	
  3,730

  	
   

  	
  $

  	
  261

  	
   

  	
  0.77

  	
  %

  	
  83.93

  	
  %

  
	
  49

  	
   

  	
  SYTF

  	
   

  	
  Vandenberg

  	
   

  	
  Lompoc

  	
   

  	
  CA

  	
   

  	
  N/A

  	
   

  	
  2

  	
   

  	
  42

  	
   

  	
  $

  	
  11,669

  	
   

  	
  $

  	
  248

  	
   

  	
  0.74

  	
  %

  	
  84.67

  	
  %

  
	
  50

  	
   

  	
  SYUM

  	
   

  	
  March

  	
   

  	
  Riverside

  	
   

  	
  CA

  	
   

  	
  N/A

  	
   

  	
  3

  	
   

  	
  105

  	
   

  	
  $

  	
  9,533

  	
   

  	
  $

  	
  245

  	
   

  	
  0.73

  	
  %

  	
  85.39

  	
  %

  
	
  51

  	
   

  	
  ST4A

  	
   

  	
  Richmond

  	
   

  	
  Richmond

  	
   

  	
  VA

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  181

  	
   

  	
  $

  	
  6,967

  	
   

  	
  $

  	
  243

  	
   

  	
  0.72

  	
  %

  	
  86.12

  	
  %

  
	
  52

  	
   

  	
  ST1J

  	
   

  	
  St. Julien’s Creek

  	
   

  	
  Portsmouth

  	
   

  	
  VA

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  15

  	
   

  	
  $

  	
  6,233

  	
   

  	
  $

  	
  237

  	
   

  	
  0.70

  	
  %

  	
  86.82

  	
  %

  
	
  53

  	
   

  	
  SVEC

  	
   

  	
  Letterkenny

  	
   

  	
  Chambersburg

  	
   

  	
  PA

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  13

  	
   

  	
  $

  	
  5,448

  	
   

  	
  $

  	
  236

  	
   

  	
  0.70

  	
  %

  	
  87.52

  	
  %

  
	
  54

  	
   

  	
  S9WN

  	
   

  	
  RCP - New Cumberland

  	
   

  	
  New Cumberland

  	
   

  	
  PA

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  217

  	
   

  	
  $

  	
  12,248

  	
   

  	
  $

  	
  228

  	
   

  	
  0.67

  	
  %

  	
  88.19

  	
  %

  
	
  55

  	
   

  	
  S9WP

  	
   

  	
  RCP - Richmond

  	
   

  	
  Richmond

  	
   

  	
  VA

  	
   

  	
  N/A

  	
   

  	
  3

  	
   

  	
  268

  	
   

  	
  $

  	
  8,284

  	
   

  	
  $

  	
  223

  	
   

  	
  0.66

  	
  %

  	
  88.85

  	
  %

  
	
  56

  	
   

  	
  SZGA

  	
   

  	
  McClellan

  	
   

  	
  Sacramento

  	
   

  	
  CA

  	
   

  	
  Sep - 2000

  	
   

  	
  3

  	
   

  	
  1,799

  	
   

  	
  $

  	
  27,251

  	
   

  	
  $

  	
  218

  	
   

  	
  0.65

  	
  %

  	
  89.50

  	
  %

  
	
  57

  	
   

  	
  S9WV

  	
   

  	
  RCP - Corpus Christi

  	
   

  	
  Corpus Christi

  	
   

  	
  TX

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  16

  	
   

  	
  $

  	
  6,456

  	
   

  	
  $

  	
  197

  	
   

  	
  0.58

  	
  %

  	
  90.08

  	
  %

  
	
  58

  	
   

  	
  SVKA

  	
   

  	
  Rock Island

  	
   

  	
  Rock Island

  	
   

  	
  IL

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  192

  	
   

  	
  $

  	
  4,897

  	
   

  	
  $

  	
  190

  	
   

  	
  0.56

  	
  %

  	
  90.65

  	
  %

  
	
  59

  	
   

  	
  SVQA

  	
   

  	
  Crane

  	
   

  	
  Crane

  	
   

  	
  IN

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  28

  	
   

  	
  $

  	
  6,324

  	
   

  	
  $

  	
  184

  	
   

  	
  0.55

  	
  %

  	
  91.19

  	
  %

  
	
  60

  	
   

  	
  SXLA

  	
   

  	
  Patrick

  	
   

  	
  Melbourne

  	
   

  	
  FL

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  12

  	
   

  	
  $

  	
  3,652

  	
   

  	
  $

  	
  183

  	
   

  	
  0.54

  	
  %

  	
  91.74

  	
  %

  
	
  61

  	
   

  	
  SVKG

  	
   

  	
  Great Lakes

  	
   

  	
  Great Lakes

  	
   

  	
  IL

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  105

  	
   

  	
  $

  	
  5,456

  	
   

  	
  $

  	
  171

  	
   

  	
  0.51

  	
  %

  	
  92.24

  	
  %

  
	
  62

  	
   

  	
  SVXS

  	
   

  	
  Selfridge

  	
   

  	
  Mt. Clements

  	
   

  	
  MI

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  14

  	
   

  	
  $

  	
  3,908

  	
   

  	
  $

  	
  162

  	
   

  	
  0.48

  	
  %

  	
  92.72

  	
  %

  
	
  63

  	
   

  	
  S9WK

  	
   

  	
  RCP - Albany

  	
   

  	
  Albany

  	
   

  	
  GA

  	
   

  	
  N/A

  	
   

  	
  0

  	
   

  	
  1,104

  	
   

  	
  $

  	
  4,194

  	
   

  	
  $

  	
  152

  	
   

  	
  0.45

  	
  %

  	
  93.17

  	
  %

  
	
  64

  	
   

  	
  SVXP

  	
   

  	
  Wright-Patterson

  	
   

  	
  Dayton

  	
   

  	
  OH

  	
   

  	
  N/A

  	
   

  	
  4

  	
   

  	
  142

  	
   

  	
  $

  	
  8,895

  	
   

  	
  $

  	
  152

  	
   

  	
  0.45

  	
  %

  	
  93.62

  	
  %

  
	
  65

  	
   

  	
  SVKW

  	
   

  	
  Whiteman

  	
   

  	
  Knob Noster

  	
   

  	
  MO

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  16

  	
   

  	
  $

  	
  5,075

  	
   

  	
  $

  	
  143

  	
   

  	
  0.42

  	
  %

  	
  94.05

  	
  %

  
	
  66

  	
   

  	
  SYUK

  	
   

  	
  North Island

  	
   

  	
  San Diego

  	
   

  	
  CA

  	
   

  	
  N/A

  	
   

  	
  3

  	
   

  	
  63

  	
   

  	
  $

  	
  28,462

  	
   

  	
  $

  	
  142

  	
   

  	
  0.42

  	
  %

  	
  94.47

  	
  %

  
	
  67

  	
   

  	
  S9WI

  	
   

  	
  RCP - McClellan

  	
   

  	
  McClellan

  	
   

  	
  CA

  	
   

  	
  N/A

  	
   

  	
  2

  	
   

  	
  53

  	
   

  	
  $

  	
  23,668

  	
   

  	
  $

  	
  141

  	
   

  	
  0.42

  	
  %

  	
  94.88

  	
  %

  
	
  68

  	
   

  	
  SVKT

  	
   

  	
  Sparta

  	
   

  	
  Sparta

  	
   

  	
  WI

  	
   

  	
  N/A

  	
   

  	
  0

  	
   

  	
  11

  	
   

  	
  $

  	
  1,740

  	
   

  	
  $

  	
  132

  	
   

  	
  0.39

  	
  %

  	
  95.27

  	
  %

  
	
  69

  	
   

  	
  SYTA

  	
   

  	
  Port Hueneme

  	
   

  	
  Port Hueneme

  	
   

  	
  CA

  	
   

  	
  N/A

  	
   

  	
  2

  	
   

  	
  85

  	
   

  	
  $

  	
  5,665

  	
   

  	
  $

  	
  131

  	
   

  	
  0.39

  	
  %

  	
  95.66

  	
  %

  
	
  70

  	
   

  	
  STHG

  	
   

  	
  Groton

  	
   

  	
  New London

  	
   

  	
  CT

  	
   

  	
  N/A

  	
   

  	
  0

  	
   

  	
  8

  	
   

  	
  $

  	
  5,056

  	
   

  	
  $

  	
  127

  	
   

  	
  0.38

  	
  %

  	
  96.04

  	
  %

  
	
  71

  	
   

  	
  SYKF

  	
   

  	
  Offutt

  	
   

  	
  Offutt

  	
   

  	
  NE

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  39

  	
   

  	
  $

  	
  5,595

  	
   

  	
  $

  	
  127

  	
   

  	
  0.38

  	
  %

  	
  96.42

  	
  %

  
	
  72

  	
   

  	
  SZAA

  	
   

  	
  Holloman

  	
   

  	
  Alamagordo

  	
   

  	
  NM

  	
   

  	
  N/A

  	
   

  	
  0

  	
   

  	
  13

  	
   

  	
  $

  	
  3,768

  	
   

  	
  $

  	
  126

  	
   

  	
  0.37

  	
  %

  	
  96.79

  	
  %

  
	
  73

  	
   

  	
  SZ7C

  	
   

  	
  Dyess

  	
   

  	
  Abilene

  	
   

  	
  TX

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  39

  	
   

  	
  $

  	
  14,715

  	
   

  	
  $

  	
  125

  	
   

  	
  0.37

  	
  %

  	
  97.16

  	
  %

  
	
  74

  	
   

  	
  S9WO

  	
   

  	
  RCP - Columbus

  	
   

  	
  Columbus

  	
   

  	
  OH

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  118

  	
   

  	
  $

  	
  2,774

  	
   

  	
  $

  	
  116

  	
   

  	
  0.34

  	
  %

  	
  97.51

  	
  %

  
	
  75

  	
   

  	
  SWEC

  	
   

  	
  Huntsville

  	
   

  	
  Huntsville

  	
   

  	
  AL

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  13

  	
   

  	
  $

  	
  3,819

  	
   

  	
  $

  	
  113

  	
   

  	
  0.33

  	
  %

  	
  97.84

  	
  %

  
	
  76

  	
   

  	
  SVKD

  	
   

  	
  Duluth

  	
   

  	
  Duluth

  	
   

  	
  MN

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  41

  	
   

  	
  $

  	
  1,821

  	
   

  	
  $

  	
  96

  	
   

  	
  0.28

  	
  %

  	
  98.13

  	
  %

  
	
  77

  	
   

  	
  SZAK

  	
   

  	
  Kirtland

  	
   

  	
  Alburquerque

  	
   

  	
  NM

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  6

  	
   

  	
  $

  	
  3,626

  	
   

  	
  $

  	
  94

  	
   

  	
  0.28

  	
  %

  	
  98.40

  	
  %

  
	
  78

  	
   

  	
  SYKM

  	
   

  	
  Minot

  	
   

  	
  Minot

  	
   

  	
  ND

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  12

  	
   

  	
  $

  	
  2,077

  	
   

  	
  $

  	
  87

  	
   

  	
  0.26

  	
  %

  	
  98.66

  	
  %

  
	
  79

  	
   

  	
  S9WC

  	
   

  	
  RCP - Pugat Sound

  	
   

  	
  Bremerton

  	
   

  	
  WA

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  12

  	
   

  	
  $

  	
  6,201

  	
   

  	
  $

  	
  86

  	
   

  	
  0.26

  	
  %

  	
  98.92

  	
  %

  
	
  80

  	
   

  	
  STHR

  	
   

  	
  Romulus

  	
   

  	
  Romulus

  	
   

  	
  NY

  	
   

  	
  Sep - 2000

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  $

  	
  1,138

  	
   

  	
  $

  	
  71

  	
   

  	
  0.21

  	
  %

  	
  99.13

  	
  %

  
	
  81

  	
   

  	
  SZPD

  	
   

  	
  Fairchild

  	
   

  	
  Spokane

  	
   

  	
  WA

  	
   

  	
  N/A

  	
   

  	
  0

  	
   

  	
  5

  	
   

  	
  $

  	
  1,792

  	
   

  	
  $

  	
  66

  	
   

  	
  0.19

  	
  %

  	
  99.32

  	
  %

  
	
  82

  	
   

  	
  SYKE

  	
   

  	
  Great Falls

  	
   

  	
  Great Falla

  	
   

  	
  MT

  	
   

  	
  N/A

  	
   

  	
  0

  	
   

  	
  6

  	
   

  	
  $

  	
  1,134

  	
   

  	
  $

  	
  60

  	
   

  	
  0.18

  	
  %

  	
  99.50

  	
  %

  
	
  83

  	
   

  	
  SZSN

  	
   

  	
  Nellis

  	
   

  	
  Las Vegas

  	
   

  	
  NV

  	
   

  	
  N/A

  	
   

  	
  0

  	
   

  	
  19

  	
   

  	
  $

  	
  1,534

  	
   

  	
  $

  	
  40

  	
   

  	
  0.12

  	
  %

  	
  99.61

  	
  %

  
	
  84

  	
   

  	
  SYBC

  	
   

  	
  Mountain Home

  	
   

  	
  Mountain Home

  	
   

  	
  ID

  	
   

  	
  N/A

  	
   

  	
  0

  	
   

  	
  4

  	
   

  	
  $

  	
  933

  	
   

  	
  $

  	
  30

  	
   

  	
  0.09

  	
  %

  	
  99.70

  	
  %

  

 

*            Data
for FY 2000 are limited to 10 months through July and are not annualized.

 

15.6

 

Table II-2b

CV-2 Product Pool

FY 2000* Results (10 Months Only) for Individual CONUS DRMOs

Ranked by FY 2000* Gross Proceeds

(All amounts in Thousands)

 

	
  Rank by Gross

  	
   

  	
  DRMO Identifier (RIC + RIC

  	
   

  	
   

  	
   

  	
  DRMO Location

  	
   

  	
  Closure

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Unadjusted

  	
   

  	
  Gross

  	
   

  	
  % of CONUS Gross

  	
   

  	
  Cumulative % of CONUS Gross

  	
   

  
	
  Proceeds

  	
   

  	
  Suffix)

  	
   

  	
  DRMO Name

  	
   

  	
  City

  	
   

  	
  State

  	
   

  	
  Date

  	
   

  	
  Line Items

  	
   

  	
  Quantity

  	
   

  	
  Acq. value

  	
   

  	
  Proceeds

  	
   

  	
  Proceeds

  	
   

  	
  Proceeds

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (000s)

  	
   

  	
  (000s)

  	
   

  	
  ($000s)

  	
   

  	
  ($000s)

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  85

  	
   

  	
  SXLM

  	
   

  	
  Homestead

  	
   

  	
  Homestead

  	
   

  	
  FL

  	
   

  	
  N/A

  	
   

  	
  0

  	
   

  	
  5

  	
   

  	
  $

  	
  506

  	
   

  	
  $

  	
  23

  	
   

  	
  0.07

  	
  %

  	
  99.77

  	
  %

  
	
  86

  	
   

  	
  SYKA

  	
   

  	
  Ellisworth

  	
   

  	
  Rapid City

  	
   

  	
  SD

  	
   

  	
  N/A

  	
   

  	
  0

  	
   

  	
  6

  	
   

  	
  $

  	
  723

  	
   

  	
  $

  	
  22

  	
   

  	
  0.07

  	
  %

  	
  99.84

  	
  %

  
	
  87

  	
   

  	
  S9WT

  	
   

  	
  RCP - Tobyhanna

  	
   

  	
  Tobyhanna

  	
   

  	
  PA

  	
   

  	
  N/A

  	
   

  	
  0

  	
   

  	
  4

  	
   

  	
  $

  	
  6,354

  	
   

  	
  $

  	
  20

  	
   

  	
  0.06

  	
  %

  	
  99.90

  	
  %

  
	
  88

  	
   

  	
  SZSS

  	
   

  	
  Sierra

  	
   

  	
  Herlong

  	
   

  	
  CA

  	
   

  	
  N/A

  	
   

  	
  0

  	
   

  	
  2

  	
   

  	
  $

  	
  589

  	
   

  	
  $

  	
  19

  	
   

  	
  0.06

  	
  %

  	
  99.96

  	
  %

  
	
  89

  	
   

  	
  SVED

  	
   

  	
  Drum

  	
   

  	
  Fort Drum

  	
   

  	
  NY

  	
   

  	
  N/A

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  $

  	
  261

  	
   

  	
  $

  	
  15

  	
   

  	
  0.04

  	
  %

  	
  100.00

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  180

  	
   

  	
  22,244

  	
   

  	
  $

  	
  1,715,386

  	
   

  	
  $

  	
  33,734

  	
   

  	
  100.00

  	
  %

  	
   

  	
   

  

 

*            Data
for FY 2000 are limited to 10 months through July and are not annualized.

 

15.7

 

Table II-2b (Addendum)

CV-2 Product Pool*

FY 2000** Results for Individual DRMOs

Alaska, Guam, Hawaii, and Puerto Rico

Ranked by FY 2000** Gross Proceeds

(All amounts in Thousands)

 

	
  Rank by Gross

  	
   

  	
  DRMO Identifier (RIC + RIC

  	
   

  	
   

  	
   

  	
  DRMO Location

  	
   

  	
  Closure

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Unadjusted

  	
   

  	
  Gross

  	
   

  	
  % of CONUS Gross

  	
   

  	
  Cumulative % of CONUS Gross

  	
   

  
	
  Proceeds

  	
   

  	
  Suffix)

  	
   

  	
  DRMO Name

  	
   

  	
  City

  	
   

  	
  State

  	
   

  	
  Date

  	
   

  	
  Line Items

  	
   

  	
  Quantity

  	
   

  	
  Acq. value

  	
   

  	
  Proceeds

  	
   

  	
  Proceeds

  	
   

  	
  Proceeds

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (000s)

  	
   

  	
  (000s)

  	
   

  	
  ($000s)

  	
   

  	
  ($000s)

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  SSAA

  	
   

  	
  Hawaii

  	
   

  	
  —

  	
   

  	
  HI

  	
   

  	
  N/A

  	
   

  	
  19

  	
   

  	
  430

  	
   

  	
  $

  	
  44,704

  	
   

  	
  $

  	
  947

  	
   

  	
  43.36

  	
  %

  	
  43.36

  	
  %

  
	
  2

  	
   

  	
  SZVA

  	
   

  	
  Anchorage

  	
   

  	
  Anchorage

  	
   

  	
  AK

  	
   

  	
  N/A

  	
   

  	
  2

  	
   

  	
  82

  	
   

  	
  $

  	
  7,996

  	
   

  	
  $

  	
  360

  	
   

  	
  16.49

  	
  %

  	
  59.84

  	
  %

  
	
  3

  	
   

  	
  SXGR

  	
   

  	
  Roosevelt Roads

  	
   

  	
   

  	
   

  	
  PR

  	
   

  	
  N/A

  	
   

  	
  1

  	
   

  	
  20

  	
   

  	
  $

  	
  6,399

  	
   

  	
  $

  	
  349

  	
   

  	
  15.99

  	
  %

  	
  75.83

  	
  %

  
	
  4

  	
   

  	
  SSBA

  	
   

  	
  Guam

  	
   

  	
  —

  	
   

  	
  Guam

  	
   

  	
  N/A

  	
   

  	
  5

  	
   

  	
  92

  	
   

  	
  $

  	
  8,837

  	
   

  	
  $

  	
  326

  	
   

  	
  14.94

  	
  %

  	
  90.77

  	
  %

  
	
  5

  	
   

  	
  SZVF

  	
   

  	
  Fairbanks

  	
   

  	
  Fairbanks

  	
   

  	
  AK

  	
   

  	
  N/A

  	
   

  	
  2

  	
   

  	
  40

  	
   

  	
  $

  	
  4,618

  	
   

  	
  $

  	
  201

  	
   

  	
  9.23

  	
  %

  	
  100.00

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  28

  	
   

  	
  664

  	
   

  	
  $

  	
  72,554

  	
   

  	
  $

  	
  2,183

  	
   

  	
  100.00

  	
  %

  	
   

  	
   

  

 

*            DEMIL
“A” Items assigned to CV-1 at CONUS locations will be referred for sale under
this CV-2 contract at these non-CONUS locations, and are included in this
table.

**     Data
for FY 2000 are limited to 10 months through July.

 

15.8

 

2                                          Generators

 

a.                                       Every military and reserve activity is a
potential “generator” of surplus items. Because the number of active generators
is always in flux, the exact number cannot be known with precision. While the
vast majority of generators are military related, there are some federal
agencies that turn property in to DRMS as well.

 

b.                                      DODAAC (DoD activity address code) numbers
are available for every Line Item. (A “Line Item” is an object or group of
objects, all with the same LSN or NSN, turned in together by a generator and
identified on a single Disposal Turn-In Document (“DTTD”), a Department of
Defense form. A Line Item will have a quantity or units in excess of one if
more than one such object, all with the same LSN or NSN, are turned in on a
single DTID.) The DODAAC number essentially refers to the supply officer in
control of the item at the point the Defense Turn-In Document (DTID) number is
assigned (the DODAAC number is the first six (6) digits of the DTTD
number).

 

c.                                       Any given military base will generally have a
number of DODAACs directly associated with the base and many more generally
referring it property. Any given DRMO will service the base generators as well
as all other generators in its area. DRMOs are generally located so as to be near
significant amounts of turn-ins of property.

 

d.                                      In 1996, generators referred surplus property
with approximately 20,000 different DODAAC numbers.

 

e.                                       A recent sample of data on the current
inventory reveals a significant concentration by DODAAC number per DRMO.

 

3                                          Property Flows

 

a.                                       DRMS estimates that it sells approximately
45% of its Product Pool items through DRMOs.

 

b.                                      Approximately 45% of Product Pool items are
sold through the RCP program of direct (blind) sales from DLA Depots.

 

c.                                       Approximately 10% of Product Pool items are
sold “in place” at generator sites.

 

16

 

d.                                      DRMS
data sources indicate that, in fiscal 1998, approximately 46% of all DRMS Gross
Proceeds for items in the Product Pool derived from the top 20
DRMOs and approximately 62% from the top 40 DRMOs.

 

e.                                       DRMS
expects over time, as part of its infrastructure reduction and privatization
initiatives, that items including the Property will increasingly be received
and processed “in place,” at Forward Receiving Sites or in privately contracted
DRMS Warehouses, or transported by the Government, either to a facility
operated by a CV buyer or directly to a CV re-sale buyer.

 

See Art. 3 for more completely specified
contractual provisions relating to logistics. Table II-3 on the next page,
Summary of Logistics Provisions, summarizes certain provisions set forth in Art.
3 that are pertinent to logistics.

 

U.                       LOGISTICS

 

Table II-3 details many pertinent provisions
of Art. 3 that govern logistical arrangements for handling the flow of
Property. These provisions are virtually identical to those governing the CV-1
transaction. Except as otherwise provided, all of the Purchaser’s “logistics
costs”- the costs incurred by the Purchaser for moving, storing, packing and
removing Property - are Direct Costs.

 

Most Property is turned in to DRMS by
generators at a DRMO(9) that is not a Restricted Access Facility. DRMS will
provide to the Purchaser without charge certain dedicated indoor and outdoor
storage space (Purchaser’s Dedicated Storage) for the Purchaser’s exclusive use
at most DRMOs, and the Purchaser’s personnel will have access to that space at
least two full days per week. In most cases DRMS will commingle CV-1 and CV-2
items for R/T/D, then bring the Property to the Purchaser’s Dedicated Storage
as it is referred for sale to the Purchaser. DRMS may, however, elect instead
to segregate the CV-1 and CV-2 items upon receipt and to conduct Segregated
R/T/D. There is no fixed deadline for removing Property from the DRMO, but the
Purchaser must accomplish removal as necessary to accommodate the inflow of
Property. DRMS will neither pack nor load Property for re-sale buyers.

 

The Purchaser may use and store its materials
handling equipment in Purchaser’s Dedicated Storage, and, subject to applicable
law and host installation regulations, the Purchaser may utilize without charge
such government owned materials handling equipment as is available at a
particular DRMO or other Delivery Point. The Purchaser may not, however, use or
store its own materials handling equipment at DLA Depots, Special Situation
Locations and Restricted Access Facilities.

 

(9) In the future DRMS may also operate “DRMS Warehouses,” warehousing
facilities operated by or on behalf of DRMS that perform functions similar to
those presently performed at DRMOs. As yet DRMS neither operates nor is
planning to operate any DRMS Warehouses, but that could change during the term
of this sale contract.

 

17

 

Table II-3

SUMMARY OF LOGISTICS PROVISIONS

 

I. DRMOs and DRMS Warehouses other than
Restricted Access Facilities

 

	
   

  	
   

  	
  Summary

  	
   

  	
  Citation(1)

  
	
  1.               Minimum
  Property Proportion

  	
   

  	
  Purchaser accepts Delivery of Property at
  15 Initial Delivery Points within five months of post-award conference, and
  at all Delivery Points within eight months. Purchaser and DRMS may agree to a
  different schedule.

  	
   

  	
  2(C)(1),

  2(C)(2),

  2(C)(3)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.               “Purchaser’s
  Dedicated Storage”

  	
   

  	
  Purchase initially allocated a proportion
  of each site’s covered & outdoor storage; DRMS and Purchaser adjust
  space allocations over time to accommodate relative work flows. If storage
  cannot be provided other than temporarily, site is deemed a Restricted Access
  Facility.

  	
   

  	
  3(B)(1),

  4(A)(2)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.               Minimum
  Access for Purchaser

  	
   

  	
  Two 8-hour Business Days per week. If DRMS
  cannot provide such access other than temporarily, site is deemed a
  Restricted Access Facility.

  	
   

  	
  4(A)(1),

  4(A)(2)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.               “Delivery”
  (transfer to Purchaser of control over and title to the Property)

  	
   

  	
  If R/T/D is Commingled, DRMS moves Property
  to Purchaser’s Dedicated Storage; if R/T/D is Segregated, Delivery may be in
  place, and Purchaser moves Property to Purchaser’s Dedicated Storage as
  required to free space for DRMO operations. In special circumstances DRMS and
  Purchaser adopt necessary special procedures.

  	
   

  	
  3(C)(1)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.               Materials
  Handling Equipment (subject to applicable law and host installation
  regulations)

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  a.               Purchaser’s

  	
   

  	
  Storage and usage permitted

  	
   

  	
  4(A)(1)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  b.              Government
  Furnished Equipment

  	
   

  	
  Usage permitted of available equipment

  	
   

  	
  4(A)(1)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.               “On-Site
  Processing”

  	
   

  	
  Permitted

  	
   

  	
  4(D)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.               Removal
  - Purchaser’s Conveyance

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  a.               Timing(2)

  	
   

  	
  As reasonably necessary to accommodate
  inflow of Property(3),(6)

  	
   

  	
  4(C)(1)(a)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  b.              Packing

  	
   

  	
  Purchaser / DC(3)

  	
   

  	
  4(C)(2)(a)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  c.               Loading

  	
   

  	
  Purchaser / DC(4)

  	
   

  	
  4(C)(2)(a)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  d.              Shipping

  	
   

  	
  Purchaser / DC

  	
   

  	
  4(F)(1)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.               Removal
  - Re-sale Buyers’ Conveyances

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  a.               Timing(3)

  	
   

  	
  As reasonably necessary to accommodate
  inflow of Property(5)

  	
   

  	
  4(C)(1)(a)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  b.              Packing

  	
   

  	
  Purchaser / DC

  	
   

  	
  4(C)(2)(a)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  c.               Loading

  	
   

  	
  Purchaser / DC

  	
   

  	
  4(C)(2)(a)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  d.              Shipping

  	
   

  	
  NA

  	
   

  	
  —

  

 

(1) All citations are to Sections of Article Three of Part VII,
IFB, unless otherwise indicated.

 

(2) Except in special circumstances. 4(C)(1).

 

(3) DC: Direct Costs

 

(4) DRMS will “tailgate” load at no charge to Purchaser if
Personnel are available. 4(C)(2)(a).

 

(5) Except in special circumstances. 4(C)(1).

 

17.1

Table II-3

SUMMARY OF LOGISTICS PROVISIONS

 

II. RCP Property at DLA Depots

 

	
   

  	
   

  	
  Summary

  	
   

  	
  Cite

  
	
  1.               Minimum
  Property Proportion

  	
   

  	
  None during Phase-In Period except as
  requested by Purchaser and as DRMS can reasonably accommodate such request;
  100% thereafter.

  	
   

  	
  2(C)(2),

  2(C)(3)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.               Storage
  Space for Purchaser

  	
   

  	
  None

  	
   

  	
  3(B)(4)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.               Minimum
  Access for Purchaser

  	
   

  	
  None; DRMS Customer Liaison arranges
  reasonable access for removal, if requested by DRM unless DRMS permit On-Site
  Processing.

  	
   

  	
  2(B)(3),

  4(A)(3),

  4(C)(2)(b), 4(E)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.               “Delivery”
  

  	
   

  	
  Upon removal

  	
   

  	
  3(C)(2)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.               Materials
  Handling Equipment (subject to applicable law and host Installation
  regulations)

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  a.               Purchaser’s

  	
   

  	
  None

  	
   

  	
  4(A)(3)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  b.     Government Furnished Equipment

  	
   

  	
  DRMS to provide as available

  	
   

  	
  4(A)(3)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.               On-Site
  Processing

  	
   

  	
  Permitted at DRMS’s option

  	
   

  	
  4(E)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.               Removal
  - Purchaser’s Conveyance

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  a.               Timing

  	
   

  	
  N/A: Depot packs and ships

  	
   

  	
  4(C)(2)(b)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  b.              Packing

  	
   

  	
  Depot / NC

  	
   

  	
  4(C)(2)(b)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  c.               Loading

  	
   

  	
  Depot / NC

  	
   

  	
  4(C)(2)(b)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  d.              Shipping

  	
   

  	
  Depot / DC

  	
   

  	
  4(C)(2)(b)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.               Removal
  - Re-sale Buyers’ Conveyances

  	
   

  	
  None

  	
   

  	
  4(B)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  a.               Timing

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  b.              Packing

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  c.               Loading

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  d.              Shipping

  	
   

  	
   

  	
   

  	
   

  

 

17.2

Table II-3

SUMMARY OF LOGISTICS PROVISIONS

 

III. Special Situation, Locations, Restricted
Access Facilities, Non-RCP Depot Property

 

	
   

  	
   

  	
  Summary

  	
   

  	
  Cite

  
	
  1.               Minimum
  Property Proportion

  	
   

  	
  None during Phase-In Period except as
  requested by Purchaser and as DRMS can reasonably accommodate such request;
  100% thereafter.

  	
   

  	
  2(C)(2),

  2(C)(3)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.               Storage
  Space for Purchaser

  	
   

  	
  None

  	
   

  	
  3(B)(4)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.               Minimum
  Access for Purchaser

  	
   

  	
  DRMS Customer Liaison arranges reasonable access
  for removal if DRMS requests.

  	
   

  	
  2(B)(3),

  4(A)(3)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.               “Delivery”
  

  	
   

  	
  Upon removal

  	
   

  	
  3(C)(2)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.               Materials
  Handling Equipment (subject to applicable law and host installation
  regulations)

  	
   

  	
   

  	
   

  	
   

  
	
  a.               Purchaser’s

  	
   

  	
  None

  	
   

  	
  4(A)(3)

  
	
  b.              Government
  Furnished Equipment

  	
   

  	
  DRMS to provide as available

  	
   

  	
  4(A)(3)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.               On-Site
  Processing

  	
   

  	
  DRMS’s option

  	
   

  	
  4(E)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.               Removal
  - Purchaser’s Conveyance

  	
   

  	
  Unless On-Site Processing is permitted:

  	
   

  	
   

  
	
  a.               Timing

  	
   

  	
  30 days after submission of Property
  Referral List(6),(9)

  	
   

  	
  4(C)(1)(b)

  
	
  b.              Packing

  	
   

  	
  DRMS / NC(7),(8)

  	
   

  	
  4(C)(2)(c)

  
	
  c.               Loading

  	
   

  	
  DRMS / NC(9),(10)

  	
   

  	
  4(C)(2)(c)

  
	
  d.              Shipping

  	
   

  	
  Purchaser / SIC(9)

  	
   

  	
  4(F)(3)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.               Removal
  - Re-sale Buyers’ Conveyances

  	
   

  	
  None

  	
   

  	
  4(B), 4(C)(2)(c)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  a.               Timing

  	
   

  	
   

  	
   

  	
   

  
	
  b.              Packing

  	
   

  	
   

  	
   

  	
   

  
	
  c.               Loading

  	
   

  	
   

  	
   

  	
   

  
	
  d.              Shipping

  	
   

  	
   

  	
   

  	
   

  

 

(6) DRMS may direct earlier removal if
reasonably required in the circumstances. 4(C)(1)(b), 4(C)(1)(c).

 

(7) DRMS Customer Liaison notifies
Purchaser whether to pack and/or load the Property to enable removal. If
Initial attempt at removal is unsuccessful because Property is inadequately
packed or loading is unexpectedly unavailable, Purchaser will return in 30 days
with equipment necessary to effect removal. 4(C)(1)(b).

 

(8) If packing or loading performed by
Purchaser at DRMS’s request, actual and minimum reasonable costs are treated as
Seller Indirect Costs. 4(C)(2)(c).

 

(9) SIC: Seller Indirect Costs

 

17.3

Table II-3

SUMMARY OF LOGISTICS PROVISIONS

 

IV. BASE CLOSURES

 

	
  Summary

  	
   

  	
  Citation

  
	
  Several Base Closures are presently
  scheduled during the prospective Performance Period. Base Closures often
  generate substantially increased volumes of surplus items that must be
  processed on accelerated schedules. DRMS and Purchaser shall cooperate and
  institute special procedures as reasonably necessary to process and re-sell
  Property efficiently.

  	
   

  	
  4(G)(1),

  4(G)(2)

  

 

17.4

 

Purchaser is permitted to process the
Property for re-sale within Purchaser’s Dedicated-Storage. Purchaser may permit
re-sale customers to inspect the Property there, but a representative of the
Purchaser must accompany customers at all times. DRMS must approve any on-site
auction or spot bidding conducted on government property.

 

DRMS expects that RCP Depots will generate a
substantial volume of Property. Art 3 specifies that government personnel at
RCP Depots shall pack and ship RCP Property to the Purchaser and shall charge
the Purchaser the DLA shipping charge that is then applicable. Such shipping
charges are Direct Costs.

 

There also may be Property referred for sale
at Special Situation Locations and Restricted Access Facilities. Described very
generally and subject to certain limitations and conditions, and as discussed
more completely in Section II.J above, the actual and minimum reasonable
costs incurred by the Purchaser for the packing, loading and removal of
Property from such locations will be deducted from Distribution Payments to
DRMS as Seller Indirect Costs unless DRMS arranges for the Purchaser to conduct
On-Site Processing of such items. On-Site Processing means that, subject to
certain conditions and described very generally, that the Purchaser and its
prospective re-sale buyers are provided access to the Property to enable its
re-sale without first moving the Property to a DRMO or other location.

 

The Government also has the option of
shipping the Property (via a contract carrier) to the Purchaser. Such shipping
charges will be paid directly by the Government. The Government and the
Purchaser may also make arrangements for a carrier to transport Property
directly from a government-controlled facility to the Purchaser’s re-sale
buyer, with the shipping charges allocated as the Purchaser and DRMS agree.

 

The Purchaser is responsible to DRMS for any
damage that is caused to any government equipment or facility or DRMS Warehouse
that arises out of the negligence of the Purchaser, its vendors or re-sale
buyers, and Purchaser must clean up any spills of hazardous materials on a
government facility.

 

V.                      DEMIL
B AND Q PROPERTY

 

Many of the items in the Product Pool are
subject to trade security controls (i.e., export restrictions) because they
contain sensitive technology. These fall into one of two categories. One is Commerce
Control List Items (“CCLI”) that are designated by the Department of Commerce
pursuant to the provisions of the Export Administration Act of 1979, Executive
Order 12924 and regulations promulgated thereunder and that have a DEMIL Code
of “Q.” The other is Munitions List Items (“MLI”) that are designated by the
Department of State pursuant to the provisions of the Arms Export Control Act
and implementing regulations and that have a DEMIL Code of “B.”

 

Described generally, DEMIL “B” and “Q” items
need not be demilitarized before sale, but export of these items requires an
export license issued by the Department of State or the

 

18

 

Department of Commerce. DRMS presently sells such items within CONUS pursuant
to the procedures described below. As is also described below and as is set
forth in Art. 7, the Purchaser will also be required to comply with certain
trade security control procedures. In addition, the Purchaser will be required
to comply with any new trade security control requirements that may be mandated
during the Performance Period. Such new requirements may impose new, higher
costs upon the Purchaser. Prospective offerors should weigh this risk factor
when formulating their bids.

 

Described very generally, pursuant to current
DRMS procedures the winning bidder for DEMIL “B” and/or “Q” items is required
before award of a sale contract (i) to be
cleared by the DLA Trade Security Controls Office as a buyer of DEMIL “B”
and/or “Q” items (clearances must be renewed every five years), and (ii) to submit to the Sales Contracting Officer (SCO) a
properly completed “End-Use Certificate” (or “EUC”) in the form of either DRMS Form 2
or DLA Form 1822 (copies of these forms are attached as Attachment VI.5.B.).
Presently DRMS’s buyers of trade security controlled property are permitted to
elect which of these forms to use, and almost all such buyers choose the DRMS Form 2.
Described generally, both forms of the EUC require the prospective re-sale
buyer to identify itself and the subject property, to describe the nature of
the buyer’s business, to specify the expected disposition and specific end-use
of the subject property, to acknowledge the applicability of the pertinent
trade security export controls, and to certify that the information on the EUC
is true.

 

DLA Form 1822 requires certain
additional and more burdensome compliance procedures than does the DRMS Form 2.
Described very generally, under these procedures each successive re-sale buyer
must also complete a Form 1822; the original buyer must obtain SCO
approval before re-selling any trade security controlled item; and the original
buyer must document that it has notified each re-sale buyer of pertinent export
prohibitions. As was noted, however, use of Form 1822 is presently
entirely elective.

 

Prior to award of this contract, the
Purchaser will be required to obtain a trade security control clearance and to
submit to the SCO a properly completed EUC. The clearance will be effective for
a five year period unless the information in the EUC is materially changed
(i.e., change of Purchaser’s officers, change of physical address, etc.). The
clearance investigation determines that the entity is who it claims to be,
doing business at the name and location claimed and that there are no
disqualifying factors present (i.e., convictions for illegal export of military
technology, debarment by a Government activity, etc.). All secondary purchasers
of MLI/CCLI from this contract will undergo a similar clearance.

 

Re-sale trade security control procedures
applicable to the Purchaser will be generally as follows. The Purchaser will be
required to notify prospective buyers in catalogs and resale documents of the
necessity to comply with TSC requirements and export controls. The Purchaser
will be required to obtain a properly completed EUC from the prospective
re-sale buyer of each lot (or group of lots at a single re-sale event) of DEMIL
B and Q items before releasing such items to the prospective re-sale buyer.
Upon receipt of the properly completed EUC, the Purchaser must confirm with the
SCO that the prospective re-sale buyer is currently cleared to purchase export
controlled items. If so, the subject Property can be released to the

 

19

 

buyer immediately. If not, the buyer must submit such information to
the DLA Trade Security Controls enforcement office as may be required for the
buyer to be cleared before the buyer can receive any export controlled items.
The DLA Trade Security Controls Office is the clearance authority and the
determining authority relative to the proper completeness of EUCs.

 

For the vast majority of export controlled
items, the Purchaser’s re-sale buyer is under no obligation to submit any
follow-up documentation after the original purchase. That is, the original
re-sale buyer is not required to update or correct its EUC if its proposed
end-use or other disposition changes. The Purchaser’s export control compliance
responsibilities will generally be limited accordingly to obtaining a properly
completed EUC, releasing property to a buyer only after confirming that the
buyer is cleared, and maintaining compliance records. In very rare cases,
however (and there has been none for over a year), the re-sale buyer will be
required to update its EUC prior to effecting any change of fact or intention
compared to the statements on the original EUC and to contact DRMS directly to
obtain the SCO’s written approval before effecting any such change. The only
additional burden on the Purchaser in such cases is the minimal cost of
forwarding the original compliance file to the SCO upon request.

 

In recent years a significant portion of the
Gross Proceeds obtained by DRMS from the sale of items in the Product Pool was
associated with items with DEMIL Codes of “B” or “Q” rather than “A” (ranging
from, for example, about 15% “B” or “Q” in FY 1992 to about 50% through July of
FY 2000). The Adjusted Gross ROR for both CV-1 and CV-2 DEMIL “A” items
averaged approximately 2.0% over these years, and together the Adjusted Gross
ROR for DEMIL “B” and “Q” items averaged approximately only .75%. Figures II-6
and II-7 present Adjusted Acquisition Value and Gross Proceeds, respectively,
for CV-1 and CV-2 DEMIL Code “A” items and DEMIL Code “B” and “Q” items
combined for fiscal years 1985 - 2000 (through July). Figure II-8 presents the
corresponding data for Adjusted Gross ROR.

 

Prospective offerors should note, inter alia,
that in recent years the historically lower-ROR DEMIL B and Q items in the CV-2
product Pool have represented an increasing proportion of the Gross Proceeds
attributable to CV-2 items. This trend may be a factor that, if it continues,
will increase CV-2 operating costs. As noted elsewhere in this IFB, over the
same time period Gross Proceeds for CV-2 items (and CV-1) have been declining.
If both trends continue, operating CV-2 will become increasingly less
profitable, and bidders should take this risk into account when formulating
their bids.

 

W.                  THE
FIRST TWO YEARS OF OPERATIONS OF CV-1

 

On July 14, 1998, DRMS awarded the “CV-1”
proceeds sharing sale contract to Levy / Latham LLC (the CV-1 “Contractor”),
which formed Levy / Latham Global LLC (“LLG”) to be the CV-1 “Purchaser.” LLG
received its initial deliveries of property a little over two years ago, in September of
1998. In all instances LLG has paid DRMS on time for invoices for property
purchases, the results of financial and compliance audits have been
satisfactory to DRMS, and LLG has complied with its contractual obligations in
terms of reporting and in all other respects.

 

20

 

Figure II-6

CONUS
Product Pool Adjusted Acquisition Values

DEMIL A and
DEMIL B/Q

Fiscal
Years 1985-2000*

 

 

* Data for FY 2000 are annualized based on 10 months.

 

20.1

 

Figure
II-7

CONUS
Product Pool Gross Proceeds From Items Sold

DEMIL
A and DEMIL B/Q

Fiscal
Years 1985-2000*

 

 

*
Data for FY 2000 are annualized based on 10 months.

 

20.2

 

Figure II-8

CONUS
Adjusted Gross Rate of Return

DEMIL A and
DEMIL B/Q

Fiscal
Years 1985-2000*

* Data for FY 2000 are limited to 10 months through July.

 

20.3

 

There have been no “Disputes,” nor has there been any disputed claim
threatened by or presented to either party to the contract.

 

The CV-1 contract includes six month phase-in
provisions that are similar to those in Art. 3 of this IFB. Thus, LLG was initially
prepared to accept property deliveries at 16 DRMOs that were selected by
agreement between DRMS and LLG and that were expected, based upon historical
data, to refer 50% or more of the property to be sold to LLG. Due to certain
DRMS logistical difficulties, however, the early flow of property to LLG at
these 16 DRMOs was somewhat lower than had been planned. It also took DRMS
somewhat longer than had been anticipated to begin deliveries to LLG of
property at all operating DRMOs, and it took somewhat longer as well for LLG to
begin receiving regular deliveries of property from RCP Depots. Thus, for CV-1
there were certain start-up logistical challenges. Moreover, the inflow of
property generations was somewhat lower than DRMS had estimated.

 

The CV-1 contract requires submission of
regular financial reports to DRMS. These reports are submitted annually,
quarterly, and monthly. In addition, the CV-1 Purchaser also submits a Monthly
Distribution Statement. Copies of these reports received by DRMS through November 2000
(for operations through October 2000) are attached as Attachment II.W.

 

X.                      MISCELLANEOUS

 

Prospective bidders should note that work
performed on government premises, such as at DRMOs and other Delivery Points,
may be subject to the provisions of Public Law 89-176, September 10, 1965
(18 U.S.C. 4082(c)(2)) and Executive Order 11755, December 29, 1973
(convict labor), and/or the Contract Work Hours and Safety Standards Act (40
U.S.C. 327-333) and regulations of the Secretary of Labor thereunder (overtime
compensation).

 

Prospective bidders should also note that,
under applicable law, the sale of Property to re-sale buyers in the following
countries is prohibited: Cuba, Iran, Iraq, Libya, North Korea, Sudan and UNITA
(Angola). Moreover, the list of prohibited countries may change over the course
of the Performance Period.

 

Prospective bidders should also note that
provisions of the Food, Drug and Cosmetic Act, 21 U.S.C. 311 et seq. and
regulations promulgated thereunder forbid the sale of adulterated or misbranded
medical devices.

 

Prospective offerors should further note the
following with respect to boats, cutters and ships:

 

No assurances are given that
any boat/cutter/ship will be suitable for inspection and certification under
the Merchant Marine Safety Laws and Regulations of the United States.

 

21

 

Some vessels may contain paint
coatings that are lead or zinc oxide based. Due to the age of the vessels, all
coatings are assumed to be lead and/or zinc oxide based. The Purchaser must
comply with OSHA and other regulations concerning worker safety and
environmental compliance.

 

PCB, asbestos or other
hazardous or toxic items or components not specifically identified may remain
on the vessel(s) being offered in this Invitation for Bids. Strict adherence to
federal environmental statutes, U.S. environmental protection (EPA)
regulations, and state and local environmental laws and regulations is
required. Purchaser is cautioned that it is solely responsible to ascertain the
extent to which federal environmental regulations may affect it and comply
therewith.

 

RESOURCE CONSERVATION AND RECOVERY ACT
NOTICE: EPA Hazardous Waste Regulations, 40 CFR Part 260 et seq. published
at 45 Federal Register 33063-33285, May 19, 1980, became effective on November 19,
1980. These cradle-to-grave regulations detail the responsibilities of
generators, transporters, treaters, storers and disposers of hazardous waste.
Civil and criminal penalties are available for noncompliance. DRMS does not
intend to transfer any RCRA regulated hazardous waste under this contract as
regulated waste is disposed of under DRMS’s hazardous waste contracts. However,
DRMS can make no representations as to when and under what circumstances state,
federal or local environmental regulations may be applicable to Property
transferred to and held by the Purchaser.

 

CHEMICAL AGENT RESISTANT COATING (CARC)
PAINT: Prospective offerors are cautioned that that some items are, or likely
to contain or be coated with a chemical agent resistant to coatings containing
trivalent chrome, lead, cobalt-zinc hexamethylene disocyanate and other
chemicals which are a hazard to human health if not processed properly. The
Government brings the following precautions/warnings to the attention of
prospective offerors who plan to apply the CARC paint or disturb the coating on
the property in any way:

 

(1)                                  Airline
respirators should be used during application processing
(applying/sanding/torch cutting, etc.) unless air sampling shows exposure to be
below OSHA/host Government standards, then a chemical cartridge air-purifying
respirator must be used.

 

(2)                                  CARC paint
should be isolated from heat, electrical equipment, sparks and open flame
during storage or application. Local exhaust ventilation should be used for
inside processing.

 

(3)                                  Exposure
to vapor/mist/dust or fumes can cause irritation to respiratory tract (lung,
nose, throat), edema, dermatitis, dizziness, rash, itching, swelling of
extremities, eye irritation or damage to nervous system, kidney or liver.
Coating may be fatal if swallowed.

 

REFRIGERANT: Refrigeration equipment and
appliances are subject to the Clean Air Act (CAA) Amendments of 1990 which
prohibit the venting or release to the environment of Class I or Class II
ozone depleting substances, and are also subject to the Refrigerant Recycling

 

22

 

Rule in 40 Code of Federal Regulations (CFR) Subpart F 82. 150-166,
requiring the recovery and verification of refrigerant removal by a certified
technician, using certified recovery equipment prior to final disposal as scrap
or in a landfill.

 

WARRANTY FOR USEABLE AIRCRAFT COMPONENTS /
PARTS: The Purchaser is advised that the aircraft components/parts on this sale
may not currently be certified by the appropriate regulatory agency(ies) for
use on civilian aircraft. The Purchaser represents, warrants, and guarantees to
the Government that this (these) item(s) will not be used, offered for sale, or
sold for use in civilian aircraft unless proper certification is obtained from
the appropriate regulatory agency(ies). This (these) item(s) also may not be
installed on any civilian aircraft unless installed by a Federal Aviation
Administration (FAA) certified repairman and/or mechanic. The Purchaser agrees
to hold the Government harmless from any and all demands, suits, actions, or
claims of whatsoever nature arising from or out of violation of this warranty.

 

MEDICAL DEVICE ITEMS: Delivery of medical
device items, as well as items identified as an “FDA
Regulated Medical Item” on any DTID, is conditional upon the Purchaser
providing a properly completed Food and Drug Administration (FDA) certification
to the SCO.

 

AIRCRAFT INSIGNIA AND MARKINGS: The Purchaser
will be required to permanently remove or obliterate all Military Service
distinctive markings from aircraft prior to removal from the Government
premises. The Purchaser may remove or obliterate the markings by scraping,
grinding, use of paint removers, or by other means upon approval of the SCO.
This requirement does not apply to aircraft which are required to be
demilitarized.

 

HELICOPTER BLADES AND TAIL ROTORS: It is the
responsibility of the recipient to determine if the helicopter blade or tail
rotor as designed and manufactured can be put to the use intended by the
recipient since there may be use requirements which may not be met by military
specifications or serviceability criteria. Each item has an accompanying
historical record with which the further use of the item for its designed
purpose can be determined.

 

KITCHEN STOVES: In the event of sale or
re-sale of Property identified on the Property Referral List as “Article LN
Kitchen Stoves,” Purchaser shall ensure that the warning statement which is
affixed to such items regarding their design features and reuse will not be
removed prior to sale to an ultimate user, and Purchaser shall include this
clause in its entirety in any later sale or transfer of title, unless Purchaser
modifies, replaces or repairs the stoves to remove or eliminate the hazard.

 

Prospective offerors should also note that
there are certain Public Laws that may impact the flow of items that otherwise
would become “Property” that is subject to this sale:

 

Public Law
98-575, Commercial Space Launch Act (“CSLA”), dated October 30, 1984.

 

The purposes of the CSLA are to promote
economic growth and entrepreneurial activity through the utilization of the
space environment for peaceful purposes; encourage the private sector to
provide launch vehicles and associated launch services; facilitate/encourage
the

 

23

 

acquisition (sale, lease, transaction in lieu of sale, or otherwise) by
the private sector of launch property of the U.S. which is “excess or otherwise
not needed for public use,” in consultation with Secretary of Transportation.
Donation screening is not required prior to sale.

 

Wildfire Suppression Aircraft Transfer Act of 1996,
dated January 3,1996

 

This act authorizes the sale of excess
Department of Defense (DoD) aircraft and aircraft parts to facilitate the
suppression of wildfire. Prior to the sale, the Secretary of Agriculture must
certify that the person or entity is capable of meeting the terms and
conditions of a contract to deliver fire retardant by air. The purchaser must
certify that the aircraft and aircraft parts will be used only for wildfire
suppression purposes.

 

Public Law 106-181, Oil Spill Containment Act

 

This statute, also known as “The Wendell H.
Ford Aviation Investment and Reform Act for the 21st Century,” allows DoD,
during the period 4 April 2000 through 30 September 2002, to sell
aircraft and aircraft parts to a person or entity that provides oil spill
response services (including the application of oil dispersants by air).

 

Y.                       SCRAP RATE RISK AND
ADJUSTMENTS TO CONTRACTOR’S PURCHASE PRICE

 

As discussed in Section II.C above,
generators tentatively designate an item as Useable or Scrap prior to turn-in
to DRMS. DRMS receiving personnel may either accept the Useable designation or
downgrade the item to Scrap (a Downgrade Upon Receipt). DRMS personnel
similarly may either accept the Scrap designation or upgrade the item to
Useable (an Upgrade Upon Receipt). Some items initially accepted as Scrap are
later upgraded to Useable (a Post-Receipt Upgrade).

 

The Contractor and Purchaser are at risk for
systematic changes in upgrade and downgrade procedures and decisions. For
example, increasing upgrade rates or decreasing downgrade rates would result in
greater volumes of Property referred for sale to the Purchaser that would have
been designated as Scrap prior to such change.

 

To protect the Contractor and Purchaser in
part from such risk, Article 6 provides for (i) an
adjustment to the Contractor’s Purchase Price if the “Downgrade Rate” falls below
a pre-specified set of “Downgrade Norms” determined from historical data, and (ii) subject
to certain limitations, the right to return upgraded Property to DRMS for a
credit of the applicable Contractor’s Purchase Price. (See Art. 6.)

 

For each of the thirteen Product Subpool Bid
Categories, the FSC/DEMIL Code combinations were ranked by Downgrade Rate and
then divided into three Downgrade Rate Subcategories. The Downgrade Norm
associated with each Subcategory was then specified by DRMS with respect to
these data. See Schedule VI.6.5(A)(4).

 

24

 

If the Downgrade Rate for a particular year
for a particular Downgrade Rate Subcategory declines below the corresponding
Downgrade Norm, the Contractor’s Purchase Price will be adjusted downward by
formula. (See Art 6.)

 

DRMS cannot predict
the volume of Downgrades Upon Receipt or Downgrade Rates for the Product Pool,
for a particular Downgrade Rate Subcategory or for a particular combination of
FSC and DEMIL Code, nor can DRMS predict either whether the Contractor and
Purchaser will be adequately insulated from the effect of lower Downgrade Rates
than anticipated by the offeror or the magnitude of such effect. The offeror
therefore must account for this risk in its bidding, and DRMS expressly
disavows any implicit prediction, projection or suggestion to the contrary.

 

Z.                       RISK
FACTORS

 

A prospective offeror should be aware of
certain risk factors that could affect an offeror’s assessment of this contract
and the calculations supporting the offeror’s bid. Although DRMS does not
represent that it has identified all such risk factors, the following, in
addition to those risks identified elsewhere in this IFB, should be considered
by a prospective offeror:

 

The future volume, quality,
condition, market value, types (i.e., distribution of Property referrals across
FSCs), and geographic concentrations (i.e., referrals for sale at particular
Delivery Points) of the Property cannot be predicted. Variability in any of
these dimensions could adversely affect the Purchaser’s re-sale proceeds and
costs, thereby reducing the prospective Contractor’s investment gains or
increasing its losses. In particular, the future volume of Property may be
lower than anticipated by the offeror and may be insufficient to support the
Purchaser’s cost structure, and the types of items referred for sale may
disproportionately be of lower value and/or require higher operating costs than
expected by the offeror.

 

The effect of the R/T/D process
on Property referrals cannot be predicted. Statutory changes to the R/T/D
process are possible, and also DRMS cannot predict the types or volumes of
items that R/T/D claimants will select that could otherwise qualify as Property
referred for sale under this contract.

 

DRMS has endeavored to present
historical data in this IFB that, subject to the descriptions and
qualifications accompanying presentation of the data, are accurate.
Nevertheless, DRMS cannot guarantee the accuracy of these data, and the data
may contain material inaccuracies or omissions.

 

The amounts and timing of
Seller Indirect Costs incurred by the Purchaser cannot be predicted. Because
the provisions of the contract require funding of Seller Indirect Costs by the
Purchaser and/or the Contractor, unexpectedly high

 

25

 

expenditures for Seller Indirect Costs may
reduce investment gains or increase losses for the prospective Contractor.

 

The amounts and timing of
Direct Costs incurred by the Purchaser cannot be predicted. Moreover,
historical data on proceeds obtained by DRMS from the sale of items in the
pertinent FSCs are not necessarily accurate predictors of the re-sale proceeds
obtainable by the Purchaser.

 

Inflows of Property at
particular DRMOs or DRMS Warehouses may be sufficiently high relative to space
availability as to cause removal and/or re-sale by the Purchaser on an
expedited and less efficient schedule than desired by the Purchaser.
Moreover, two locations recently closed, and others are likely to be closed
during the prospective Performance Period as part of the DRMS infrastructure
reduction program. This may cause “bottlenecks” from time to time at the
remaining DRMOs. This may also lead to referrals of Property in place at
Special Situation Locations, thus causing the Purchaser to incur Seller
Indirect Costs that must be funded by the Purchaser and/or the prospective
Contractor until such time as amounts otherwise distributable to DRMS are
sufficient to reimburse such expenditures.

 

The structure of the Bid
Categories, and the assignment of each pertinent combination of FSC and DEMIL
Code to its Bid Category, may not insulate the Purchaser and the prospective
Contractor to the extent anticipated by the prospective Contractor from adverse
consequences of unpredictable concentrations of Property in particular
combinations of FSC and DEMIL Code.

 

Costs incurred to phase in
Property purchases and re-sales, both during the Phase-In Period and beyond,
may be higher than expected by the prospective Contractor. Moreover, the
re-sale of Property, both during the Phase-In Period and thereafter, may take
longer than anticipated by the prospective Contractor.

 

DRMS may not be able to add
particular Delivery Points to the Phase-In Schedule as quickly as expected
or desired by the prospective Contractor.

 

In several respects this
contract requires cooperation between DRMS and the Purchaser, especially as
regards the logistics of referring Property for sale to Purchaser, Delivery of
the Property, assigning Purchaser’s Dedicated Storage at particular facilities,
arranging access to the Property for Purchaser and prospective re-sale buyers,
removing Property from certain Delivery Points upon request or notice from
DRMS, and in other respects. In addition, the contract provides that DRMS is to
assist the Purchaser with some tasks only to the extent that resources
(personnel and equipment) are available. Moreover, the contract provides that
DRMS may exercise its sole discretion to grant or deny certain requests by the
Purchaser, including without limitation requests for On-Site Processing at
certain Delivery Points and requests for on-site auctions or spot bidding at
any Delivery Point. A prospective offeror should consider the risks that such
cooperation may

 

26

 

be less forthcoming, that such resources may
be available less often or in a lesser quantity, and that such requests are
granted less often, or with respect to less important matters or subject to
more burdensome conditions, than the prospective offeror had expected.

 

The inflow of items to DRMS
from generators cannot be predicted in terms of the initial designation of
Property as “Scrap” or “Useable,” and DRMS policies and procedures with respect
to such designations may change during the Performance Period. The pertinent
provisions of the contract may not insulate the Contractor and Purchaser from
the adverse consequences of such factors to the extent expected by the
prospective Contractor.

 

The complexity and costs of
implementing, maintaining and operating the accounting and inventory control
systems as required by pertinent provisions of the contact may be greater than
anticipated by the prospective Contractor. In addition, the costs of complying
with the contract’s requirements with respect to reporting, financial auditing
and compliance auditing may be greater than anticipated by the prospective
offeror.

 

Subject to provisions governing
early cancellation and termination, the Performance Period is seven years (84
months). There is no provision permitting an extension of the contract beyond
seven years. It may be more difficult or more costly for the Purchaser to hire
and retain employees, especially near the end of the Performance Period, than
anticipated by the prospective Contractor.

 

Described generally, applicable
statutes and regulations grant DRMS less flexibility to agree to amend a
contract after award than a prospective offeror may have experienced in other
contractual settings. Prospective offerors should assume that the provisions of
the contract cannot be significantly amended after award.

 

This IFB presents several
examples of illustrative financial calculations based upon certain purely
hypothetical assumptions concerning such matters as revenues, costs and other
assumptions. These calculations are presented solely for the purpose of
illustrating certain of the mechanics of the contract. DRMS cannot predict, and
makes no representation concerning, any assumption that is material to
projecting or calculating the performance of the Purchaser or the investment
gains or losses for the prospective Contractor under this contract. Moreover,
the illustrative calculations presented in this IFB are simplified for the
purpose of illustrating certain mechanics of the contract and are not intended
to identify all material assumptions or factors that may affect the performance
of the Purchaser or investment gains or losses for the prospective Contractor.

 

This IFB may be the subject of
one or more protests to the U.S. General Accounting Office. Moreover, it is
possible that, either pending or after award,

 

27

 

one or more third parties that object to this
contract could institute litigation involving both DRMS and the Contractor.
DRMS cannot predict the likelihood or the possible grounds for such litigation.
Nevertheless, this is a risk factor that should be assessed by a prospective
offeror.

 

From time to time in the past,
DLA Depots have released surplus items to DRMS for R/T/D review and sale in
particularly irregular volumes. In other words, there have been substantial “peaks”
and “valleys” in the inflow to DRMS of items from the Depots. DRMS cannot
predict whether this will be the case at any time during the Performance Period.
If so, however, this could adversely impact the Purchaser’s costs and revenues,
thereby reducing the prospective Contractor’s investment gains or increasing
its losses.

 

Applicable statutes,
regulations, policies and inter-service agreements govern whether the
disposition of particular items of surplus is through DRMS or through other
disposition modes. The volume and nature of the Property referred for sale
under this contract could be affected by changes in such governing statutes,
regulations, policies and inter-service agreements.

 

REMAINDER OF PAGE INTENTIONALLY
LEFT BLANK

 

28

 

 

 

III. BID
SCHEDULE

 

A.                                    BACKGROUND
INFORMATION

 

Property to be
sold under this IFB is categorized by Federal Supply Classification (FSC) and
DEMIL Code.  The combinations of FSC and
DEMIL Code that are included in the Product Pool are detailed in Table IV-1 in
Part IV below.  Each combination of FSC
and DEMIL Code in the Product Pool has been assigned one of five (5) “Bid
Categories” — A through E.  The five
categories were created by ranking these FSC and DEMIL Code combinations by
DRMS Adjusted Gross ROR over three fiscal years (FY 1997-1999 for CV-2 Items,
FY 1996-1998 for CV-1 Items) and grouping them into categories from “A” to “E”
(from high to low DRMS Adjusted Gross ROR). 
The structure of the Bid Categories attempts to mitigate the effects on
the Purchaser of shifts in the composition of the Property flow between FSC /
DEMIL Code combinations with historically high and low DRMS Adjusted Gross
RORs.

 

For bidding
purposes, the Property has been subdivided into three (3) “Product Subpools” as
follows.

 

1.                                       CV-2,
DEMIL A: CV-2 Items classified as DEMIL A

2.                                       CV-2,
DEMIL B or Q: CV-2 Items classified as “DEMIL B” or “DEMIL Q”

3.                                       CV-1,
DEMIL A: CV-1 Items (by definition, these are classified as “DEMIL A”.)

 

There are thirteen (13) unique
combinations of Product Subpool and Bid Category (hereinafter, “Product Subpool
Bid Category”).(10)

 

Tables III-1a
through III-1c, below, provide a summary of Adjusted Acquisition Values, Gross
Proceeds and Adjusted Gross ROR for the thirteen (13) Product Subpool Bid
Categories for the fiscal years 1995 through 2000 (for FY2000, annualized based
upon 10 months of data through July).

 

Tables III-2a
through III-2h, also below, present the Adjusted Acquisition Values, Gross
Proceeds and Adjusted Gross RORs by Product Group for the Product Subpool Bid
Categories. DRMS historical data are provided for CV-2 Items sold within CONUS
for FY 1997-1999 (Tables III-2a, III-2b, III-2d, and III-2e) and for CV-1 Items
sold within CONUS for FY 1996-

 

(10)                            There
are thirteen, rather than fifteen, Product Subpool Bid Categories due to the
fact that there is no DEMIL B or Q Property with a sufficiently high ROR to be
classified as BID Category A or B.

 

29

 

Table III-1a

 

Adjusted Acquisition Values, FY 1995-2000*

Summary for Product Subpool Bid Categories

(CONUS Property Only)

($000s)

 

	
  Product Subpool

  	
   

  	
  Bid

  Category

  	
   

  	
  1995

  	
   

  	
  1996

  	
   

  	
  1997

  	
   

  	
  1998

  	
   

  	
  1999

  	
   

  	
  2000*

  	
   

  	
  Average**

  	
   

  
	
   

  	
   

  	
  A

  	
   

  	
  $

  	
  264,663

  	
   

  	
  $

  	
  231,273

  	
   

  	
  $

  	
  201,351

  	
   

  	
  $

  	
  134,281

  	
   

  	
  $

  	
  142,489

  	
   

  	
  $

  	
  109,944

  	
   

  	
  $

  	
  159,373

  	
   

  
	
   

  	
   

  	
  B

  	
   

  	
  $

  	
  380,594

  	
   

  	
  $

  	
  315,995

  	
   

  	
  $

  	
  248,516

  	
   

  	
  $

  	
  215,815

  	
   

  	
  $

  	
  172,644

  	
   

  	
  $

  	
  127,365

  	
   

  	
  $

  	
  212,325

  	
   

  
	
  CV-2

  	
   

  	
  C

  	
   

  	
  $

  	
  307,590

  	
   

  	
  $

  	
  332,305

  	
   

  	
  $

  	
  296,634

  	
   

  	
  $

  	
  268,039

  	
   

  	
  $

  	
  224,977

  	
   

  	
  $

  	
  199,697

  	
   

  	
  $

  	
  263,216

  	
   

  
	
  DEMIL A

  	
   

  	
  D

  	
   

  	
  $

  	
  200,261

  	
   

  	
  $

  	
  189,750

  	
   

  	
  $

  	
  162,742

  	
   

  	
  $

  	
  189,275

  	
   

  	
  $

  	
  134,869

  	
   

  	
  $

  	
  103,893

  	
   

  	
  $

  	
  162,295

  	
   

  
	
   

  	
   

  	
  E

  	
   

  	
  $

  	
  1,147,107

  	
   

  	
  $

  	
  1,672,910

  	
   

  	
  $

  	
  1,081,679

  	
   

  	
  $

  	
  1,142,889

  	
   

  	
  $

  	
  867,184

  	
   

  	
  $

  	
  508,056

  	
   

  	
  $

  	
  1,030,584

  	
   

  
	
   

  	
   

  	
  Total

  	
   

  	
  $

  	
  2,300,215

  	
   

  	
  $

  	
  2,742,232

  	
   

  	
  $

  	
  1,990,922

  	
   

  	
  $

  	
  1,950,300

  	
   

  	
  $

  	
  1,542,162

  	
   

  	
  $

  	
  1,048,954

  	
   

  	
  $

  	
  1,827,795

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  A***

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  
	
   

  	
   

  	
  B***

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  
	
  CV-2

  	
   

  	
  C

  	
   

  	
  $

  	
  118,690

  	
   

  	
  $

  	
  82,091

  	
   

  	
  $

  	
  109,767

  	
   

  	
  $

  	
  121,964

  	
   

  	
  $

  	
  141,769

  	
   

  	
  $

  	
  166,672

  	
   

  	
  $

  	
  124,500

  	
   

  
	
  DEMIL B or Q

  	
   

  	
  D

  	
   

  	
  $

  	
  776,465

  	
   

  	
  $

  	
  970,142

  	
   

  	
  $

  	
  798,866

  	
   

  	
  $

  	
  809,602

  	
   

  	
  $

  	
  826,959

  	
   

  	
  $

  	
  625,291

  	
   

  	
  $

  	
  811,809

  	
   

  
	
   

  	
   

  	
  E

  	
   

  	
  $

  	
  1,374,681

  	
   

  	
  $

  	
  1,402,357

  	
   

  	
  $

  	
  1,125,995

  	
   

  	
  $

  	
  1,467,986

  	
   

  	
  $

  	
  1,477,431

  	
   

  	
  $

  	
  981,656

  	
   

  	
  $

  	
  1,357,137

  	
   

  
	
   

  	
   

  	
  Total

  	
   

  	
  $

  	
  2,269,837

  	
   

  	
  $

  	
  2,454,590

  	
   

  	
  $

  	
  2,034,628

  	
   

  	
  $

  	
  2,399,552

  	
   

  	
  $

  	
  2,446,159

  	
   

  	
  $

  	
  1,773,619

  	
   

  	
  $

  	
  2,293,446

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  A

  	
   

  	
  $

  	
  228,072

  	
   

  	
  $

  	
  129,809

  	
   

  	
  $

  	
  142,537

  	
   

  	
  $

  	
  111,885

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  128,077

  	
   

  
	
   

  	
   

  	
  B

  	
   

  	
  $

  	
  211,369

  	
   

  	
  $

  	
  182,125

  	
   

  	
  $

  	
  162,534

  	
   

  	
  $

  	
  190,800

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  178,487

  	
   

  
	
  CV-1

  	
   

  	
  C

  	
   

  	
  $

  	
  519,884

  	
   

  	
  $

  	
  541,698

  	
   

  	
  $

  	
  362,163

  	
   

  	
  $

  	
  304,432

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  402,764

  	
   

  
	
   

  	
   

  	
  D

  	
   

  	
  $

  	
  1,164,466

  	
   

  	
  $

  	
  1,149,521

  	
   

  	
  $

  	
  928,452

  	
   

  	
  $

  	
  988,686

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  1,022,220

  	
   

  
	
   

  	
   

  	
  E

  	
   

  	
  $

  	
  1,092,894

  	
   

  	
  $

  	
  1,103,035

  	
   

  	
  $

  	
  885,068

  	
   

  	
  $

  	
  915,767

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  967,957

  	
   

  
	
   

  	
   

  	
  Total

  	
   

  	
  $

  	
  3,216,684

  	
   

  	
  $

  	
  3,106,189

  	
   

  	
  $

  	
  2,480,753

  	
   

  	
  $

  	
  2,511,570

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  2,699,504

  	
   

  

 

	
  *

  	
   

  	
  Acquisition
  Values for FY 2000 have been annualized to 12 months based on 10 months of
  data.

  
	
  **

  	
   

  	
  Averages for
  both CV-2 Product Subpools are based on FY 97-99. Averages for the CV-1 Product
  Subpool are based on FY 96-98.

  
	
  ***

  	
   

  	
  No DEMIL B
  or Q Property is assigned to Bid Categories A or B.

  

 

29.1

 

Table III-1b

Gross Proceeds, FY 1995-2000*

Summary for Product Subpool Bid Categories

(CONUS Property Only)

($000s)

 

	
  Product Subpool

  	
   

  	
  Bid

  Category

  	
   

  	
  1995

  	
   

  	
  1996

  	
   

  	
  1997

  	
   

  	
  1998

  	
   

  	
  1999

  	
   

  	
  2000*

  	
   

  	
  Average

  	
   

  
	
   

  	
   

  	
  A

  	
   

  	
  $

  	
  17,526

  	
   

  	
  $

  	
  16,859

  	
   

  	
  $

  	
  16,709

  	
   

  	
  $

  	
  10,754

  	
   

  	
  $

  	
  10,175

  	
   

  	
  $

  	
  6,763

  	
   

  	
  $

  	
  12,546

  	
   

  
	
   

  	
   

  	
  B

  	
   

  	
  $

  	
  11,577

  	
   

  	
  $

  	
  12,001

  	
   

  	
  $

  	
  11,424

  	
   

  	
  $

  	
  9,486

  	
   

  	
  $

  	
  7,003

  	
   

  	
  $

  	
  4,378

  	
   

  	
  $

  	
  9,304

  	
   

  
	
  CV-2

  	
   

  	
  C

  	
   

  	
  $

  	
  7,816

  	
   

  	
  $

  	
  8,746

  	
   

  	
  $

  	
  8,244

  	
   

  	
  $

  	
  7,558

  	
   

  	
  $

  	
  6,873

  	
   

  	
  $

  	
  4,507

  	
   

  	
  $

  	
  7,558

  	
   

  
	
  DEMIL A

  	
   

  	
  D

  	
   

  	
  $

  	
  2,978

  	
   

  	
  $

  	
  2,387

  	
   

  	
  $

  	
  2,471

  	
   

  	
  $

  	
  2,526

  	
   

  	
  $

  	
  1,866

  	
   

  	
  $

  	
  1,485

  	
   

  	
  $

  	
  2,287

  	
   

  
	
   

  	
   

  	
  E

  	
   

  	
  $

  	
  4,703

  	
   

  	
  $

  	
  7,232

  	
   

  	
  $

  	
  7,397

  	
   

  	
  $

  	
  6,467

  	
   

  	
  $

  	
  3,764

  	
   

  	
  $

  	
  3,417

  	
   

  	
  $

  	
  5,876

  	
   

  
	
   

  	
   

  	
  Total

  	
   

  	
  $

  	
  44,600

  	
   

  	
  $

  	
  47,224

  	
   

  	
  $

  	
  46,244

  	
   

  	
  $

  	
  36,791

  	
   

  	
  $

  	
  29,681

  	
   

  	
  $

  	
  20,551

  	
   

  	
  $

  	
  37,572

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  A***

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  
	
   

  	
   

  	
  B***

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  
	
  CV-2

  	
   

  	
  C

  	
   

  	
  $

  	
  3,747

  	
   

  	
  $

  	
  2,602

  	
   

  	
  $

  	
  4,111

  	
   

  	
  $

  	
  4,788

  	
   

  	
  $

  	
  5,069

  	
   

  	
  $

  	
  4,653

  	
   

  	
  $

  	
  4,656

  	
   

  
	
  DEMIL B or Q

  	
   

  	
  D

  	
   

  	
  $

  	
  11,884

  	
   

  	
  $

  	
  11,434

  	
   

  	
  $

  	
  10,605

  	
   

  	
  $

  	
  11,052

  	
   

  	
  $

  	
  8,110

  	
   

  	
  $

  	
  9,972

  	
   

  	
  $

  	
  9,923

  	
   

  
	
   

  	
   

  	
  E

  	
   

  	
  $

  	
  5,695

  	
   

  	
  $

  	
  5,724

  	
   

  	
  $

  	
  4,303

  	
   

  	
  $

  	
  6,585

  	
   

  	
  $

  	
  5,862

  	
   

  	
  $

  	
  6,992

  	
   

  	
  $

  	
  5,583

  	
   

  
	
   

  	
   

  	
  Total

  	
   

  	
  $

  	
  21,327

  	
   

  	
  $

  	
  19,760

  	
   

  	
  $

  	
  19,019

  	
   

  	
  $

  	
  22,425

  	
   

  	
  $

  	
  19,042

  	
   

  	
  $

  	
  21,617

  	
   

  	
  $

  	
  20,162

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  A

  	
   

  	
  $

  	
  29,330

  	
   

  	
  $

  	
  15,765

  	
   

  	
  $

  	
  20,971

  	
   

  	
  $

  	
  12,631

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  16,456

  	
   

  
	
   

  	
   

  	
  B

  	
   

  	
  $

  	
  10,520

  	
   

  	
  $

  	
  9,643

  	
   

  	
  $

  	
  8,071

  	
   

  	
  $

  	
  7,317

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  8,343

  	
   

  
	
  CV-1

  	
   

  	
  C

  	
   

  	
  $

  	
  13,200

  	
   

  	
  $

  	
  14,946

  	
   

  	
  $

  	
  10,367

  	
   

  	
  $

  	
  7,659

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  10,991

  	
   

  
	
   

  	
   

  	
  D

  	
   

  	
  $

  	
  15,129

  	
   

  	
  $

  	
  13,289

  	
   

  	
  $

  	
  13,372

  	
   

  	
  $

  	
  13,930

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  13,530

  	
   

  
	
   

  	
   

  	
  E

  	
   

  	
  $

  	
  4,779

  	
   

  	
  $

  	
  5,442

  	
   

  	
  $

  	
  5,688

  	
   

  	
  $

  	
  5,587

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  5,573

  	
   

  
	
   

  	
   

  	
  Total

  	
   

  	
  $

  	
  72,959

  	
   

  	
  $

  	
  59,084

  	
   

  	
  $

  	
  58,470

  	
   

  	
  $

  	
  47,124

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  54,893

  	
   

  

 

	
  *

  	
   

  	
  Proceeds for FY 2000 have been annualized to 12 months based on 10
  months of data.

  
	
  **

  	
   

  	
  Averages for both CV-2 Product Subpools are based on FY 97-99.
  Averages for the CV-1 Product Subpool are based on FY 96-98.

  
	
  ***

  	
   

  	
  No DEMIL B or Q Property is assigned to Bid Categories A or B.

  

 

29.2

 

Table III-1c

Adjusted Gross RORs, FY 1995-2000*

Summary for Product Subpool Bid Categories

(CONUS Property Only)

 

	
  Product Subpool

  	
   

  	
  Bid

  Category

  	
   

  	
  1995

  	
   

  	
  1996

  	
   

  	
  1997

  	
   

  	
  1998

  	
   

  	
  1999

  	
   

  	
  2000*

  	
   

  	
  Average

  	
   

  
	
   

  	
   

  	
  A

  	
   

  	
  6.62

  	
  %

  	
  7.29

  	
  %

  	
  8.30

  	
  %

  	
  8.01

  	
  %

  	
  7.14

  	
  %

  	
  6.15

  	
  %

  	
  7.87

  	
  %

  
	
   

  	
   

  	
  B

  	
   

  	
  3.04

  	
  %

  	
  3.80

  	
  %

  	
  4.60

  	
  %

  	
  4.40

  	
  %

  	
  4.06

  	
  %

  	
  3.44

  	
  %

  	
  4.38

  	
  %

  
	
  CV-2

  	
   

  	
  C

  	
   

  	
  2.54

  	
  %

  	
  2.63

  	
  %

  	
  2.78

  	
  %

  	
  2.82

  	
  %

  	
  3.06

  	
  %

  	
  2.26

  	
  %

  	
  2.87

  	
  %

  
	
  DEMIL A

  	
   

  	
  D

  	
   

  	
  1.49

  	
  %

  	
  1.26

  	
  %

  	
  1.52

  	
  %

  	
  1.33

  	
  %

  	
  1.38

  	
  %

  	
  1.43

  	
  %

  	
  1.41

  	
  %

  
	
   

  	
   

  	
  E

  	
   

  	
  0.41

  	
  %

  	
  0.43

  	
  %

  	
  0.68

  	
  %

  	
  0.57

  	
  %

  	
  0.43

  	
  %

  	
  0.67

  	
  %

  	
  0.57

  	
  %

  
	
   

  	
   

  	
  Total

  	
   

  	
  1.94

  	
  %

  	
  1.72

  	
  %

  	
  2.32

  	
  %

  	
  1.89

  	
  %

  	
  1.92

  	
  %

  	
  1.96

  	
  %

  	
  2.06

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  A***

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  3.58

  	
  %

  	
  —

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
  B***

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  0.98

  	
  %

  	
  —

  	
   

  	
  —

  	
   

  
	
  CV-2

  	
   

  	
  C

  	
   

  	
  3.16

  	
  %

  	
  3.17

  	
  %

  	
  3.74

  	
  %

  	
  3.93

  	
  %

  	
  0.40

  	
  %

  	
  2.79

  	
  %

  	
  3.74

  	
  %

  
	
  DEMIL B or Q

  	
   

  	
  D

  	
   

  	
  1.53

  	
  %

  	
  1.18

  	
  %

  	
  1.33

  	
  %

  	
  1.37

  	
  %

  	
  0.78

  	
  %

  	
  1.59

  	
  %

  	
  1.22

  	
  %

  
	
   

  	
   

  	
  E

  	
   

  	
  0.41

  	
  %

  	
  0.41

  	
  %

  	
  0.38

  	
  %

  	
  0.45

  	
  %

  	
  ???

  	
  %

  	
  0.71

  	
  %

  	
  0.41

  	
  %

  
	
   

  	
   

  	
  Total

  	
   

  	
  0.94

  	
  %

  	
  0.81

  	
  %

  	
  0.93

  	
  %

  	
  0.93

  	
  %

  	
  ???

  	
  %

  	
  1.22

  	
  %

  	
  0.88

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  A

  	
   

  	
  12.86

  	
  %

  	
  12.14

  	
  %

  	
  14.71

  	
  %

  	
  11.29

  	
  %

  	
  —

  	
   

  	
  —

  	
   

  	
  12.85

  	
  %

  
	
   

  	
   

  	
  B

  	
   

  	
  4.98

  	
  %

  	
  5.29

  	
  %

  	
  4.97

  	
  %

  	
  3.84

  	
  %

  	
  —

  	
   

  	
  —

  	
   

  	
  4.67

  	
  %

  
	
  CV-1

  	
   

  	
  C

  	
   

  	
  2.54

  	
  %

  	
  2.76

  	
  %

  	
  2.86

  	
  %

  	
  2.52

  	
  %

  	
  —

  	
   

  	
  —

  	
   

  	
  2.73

  	
  %

  
	
   

  	
   

  	
  D

  	
   

  	
  1.30

  	
  %

  	
  1.16

  	
  %

  	
  1.44

  	
  %

  	
  1.41

  	
  %

  	
  —

  	
   

  	
  —

  	
   

  	
  1.32

  	
  %

  
	
   

  	
   

  	
  E

  	
   

  	
  0.44

  	
  %

  	
  0.49

  	
  %

  	
  0.64

  	
  %

  	
  0.61

  	
  %

  	
  —

  	
   

  	
  —

  	
   

  	
  0.58

  	
  %

  
	
   

  	
   

  	
  Total

  	
   

  	
  2.27

  	
  %

  	
  1.90

  	
  %

  	
  2.36

  	
  %

  	
  1.88

  	
  %

  	
  —

  	
   

  	
  —

  	
   

  	
  2.03

  	
  %

  

 

	
  *

  	
   

  	
  Data for FY 2000 are limited to 10 months through July.

  
	
  **

  	
   

  	
  Averages for both CV-2 Product Subpools are based on FY 97-99.
  Averages for the CV-1 Product Subpool are based on FY 96-98.

  
	
  ***

  	
   

  	
  No DEMIL B or Q Property is assigned to Bid Categories A or B.

  

 

29.3

 

Table III-2a

FY 1997 - 1999 CONUS Average Adjusted
Acquisition Values, Proceeds, and RORs for CV-2 DEMIL A Product Subpool

Categorized by Bid Category and Product Group

 

	
   

  	
   

  	
  FY 1997
  - 1999 Average

  	
   

  	
  FY 2000*

  	
   

  	
  Percentage
  of

  FY 1997 - 1999 Average

  	
   

  	
  Percentage
  of

  FY 2000*

  	
   

  
	
  Bid Category, Product Group

  	
   

  	
  Adj.
  Acq.

  Value ($000s)

  	
   

  	
  Proceeds

  ($000s)

  	
   

  	
  DRMS
  Adj.

  Gross ROR

  	
   

  	
  Adj.
  Acq.

  Value ($000s)

  	
   

  	
  Proceeds

  ($000s)

  	
   

  	
  DRMS
  Adj.

  Gross ROR

  	
   

  	
  Adj. Acq.
  Value

  	
   

  	
  Proceeds

  	
   

  	
  Adj.
  Acq.Value

  	
   

  	
  Proceeds

  	
   

  
	
  Bid
  Category A: ROR >= 5.6 %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Aircraft Related,
  Misc. Ground and Shop

  	
   

  	
  6,191

  	
   

  	
  350

  	
   

  	
  5.65

  	
  %

  	
  2,439

  	
   

  	
  114

  	
   

  	
  4.67

  	
  %

  	
  0.34

  	
  %

  	
  0.93

  	
  %

  	
  0.23

  	
  %

  	
  0.55

  	
  %

  
	
  Vehicles

  	
   

  	
  50,181

  	
   

  	
  3,444

  	
   

  	
  6.87

  	
  %

  	
  24,685

  	
   

  	
  1,116

  	
   

  	
  4.52

  	
  %

  	
  2.74

  	
  %

  	
  9.17

  	
  %

  	
  2.35

  	
  %

  	
  5.43

  	
  %

  
	
  Textiles,
  Clothing, Footwear, Etc.

  	
   

  	
  89,248

  	
   

  	
  7,724

  	
   

  	
  8.65

  	
  %

  	
  72,930

  	
   

  	
  4,805

  	
   

  	
  6.59

  	
  %

  	
  4.88

  	
  %

  	
  20.56

  	
  %

  	
  6.95

  	
  %

  	
  23.38

  	
  %

  
	
  Furniture &
  Household Related

  	
   

  	
  78

  	
   

  	
  9

  	
   

  	
  11.88

  	
  %

  	
  24

  	
   

  	
  3

  	
   

  	
  12.87

  	
  %

  	
  0.00

  	
  %

  	
  0.02

  	
  %

  	
  0.00

  	
  %

  	
  0.01

  	
  %

  
	
  Electrical

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  
	
  Medical Related

  	
   

  	
  7,320

  	
   

  	
  522

  	
   

  	
  7.14

  	
  %

  	
  5,275

  	
   

  	
  499

  	
   

  	
  9.46

  	
  %

  	
  0.40

  	
  %

  	
  1.39

  	
  %

  	
  0.50

  	
  %

  	
  2.43

  	
  %

  
	
  Other

  	
   

  	
  6,374

  	
   

  	
  497

  	
   

  	
  7.80

  	
  %

  	
  4,592

  	
   

  	
  226

  	
   

  	
  4.93

  	
  %

  	
  0.35

  	
  %

  	
  1.32

  	
  %

  	
  0.44

  	
  %

  	
  1.10

  	
  %

  
	
  Bid
  Category A

  	
   

  	
  159,373

  	
   

  	
  12,546

  	
   

  	
  7.87

  	
  %

  	
  108,944

  	
   

  	
  6,763

  	
   

  	
  6.15

  	
  %

  	
  8.72

  	
  %

  	
  33.39

  	
  %

  	
  10.48

  	
  %

  	
  32.91

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bid
  Category B: 5.6% >ROR >= 3.8%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Aircraft Related,
  Misc. Ground and Shop

  	
   

  	
  2,925

  	
   

  	
  115

  	
   

  	
  3.95

  	
  %

  	
  1,404

  	
   

  	
  28

  	
   

  	
  2.00

  	
  %

  	
  0.16

  	
  %

  	
  0.31

  	
  %

  	
  0.13

  	
  %

  	
  0.14

  	
  %

  
	
  Vehicles

  	
   

  	
  94,927

  	
   

  	
  4,142

  	
   

  	
  4.36

  	
  %

  	
  63,300

  	
   

  	
  1,940

  	
   

  	
  3.06

  	
  %

  	
  5.19

  	
  %

  	
  11.02

  	
  %

  	
  6.03

  	
  %

  	
  9.44

  	
  %

  
	
  Textiles,
  Clothing, Footwear, Etc.

  	
   

  	
  16,914

  	
   

  	
  673

  	
   

  	
  3.98

  	
  %

  	
  10,624

  	
   

  	
  331

  	
   

  	
  3.12

  	
  %

  	
  0.93

  	
  %

  	
  1.79

  	
  %

  	
  1.01

  	
  %

  	
  1.61

  	
  %

  
	
  Furniture &
  Household Related

  	
   

  	
  71,620

  	
   

  	
  3,238

  	
   

  	
  4.52

  	
  %

  	
  37,462

  	
   

  	
  1,438

  	
   

  	
  3.84

  	
  %

  	
  3.92

  	
  %

  	
  8.62

  	
  %

  	
  3.57

  	
  %

  	
  7.00

  	
  %

  
	
  Electrical

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  
	
  Medical Related

  	
   

  	
  17,528

  	
   

  	
  742

  	
   

  	
  4.23

  	
  %

  	
  9,071

  	
   

  	
  459

  	
   

  	
  5.06

  	
  %

  	
  0.96

  	
  %

  	
  1.97

  	
  %

  	
  0.86

  	
  %

  	
  2.23

  	
  %

  
	
  Other

  	
   

  	
  8,411

  	
   

  	
  394

  	
   

  	
  4.59

  	
  %

  	
  5,504

  	
   

  	
  182

  	
   

  	
  3.30

  	
  %

  	
  0.46

  	
  %

  	
  1.05

  	
  %

  	
  0.52

  	
  %

  	
  0.88

  	
  %

  
	
  Big
  Category B

  	
   

  	
  212,325

  	
   

  	
  9,304

  	
   

  	
  4.38

  	
  %

  	
  127,365

  	
   

  	
  4,378

  	
   

  	
  3.44

  	
  %

  	
  11.62

  	
  %

  	
  24.76

  	
  %

  	
  12.14

  	
  %

  	
  21.30

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bid
  Category C: 3.8% >ROR> = 2%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Aircraft Related,
  Misc. Ground and Shop

  	
   

  	
  65,242

  	
   

  	
  1,794

  	
   

  	
  2.75

  	
  %

  	
  82,764

  	
   

  	
  1,522

  	
   

  	
  1.84

  	
  %

  	
  3.57

  	
  %

  	
  4.77

  	
  %

  	
  7.89

  	
  %

  	
  7.41

  	
  %

  
	
  Vehicles

  	
   

  	
  55,057

  	
   

  	
  1,577

  	
   

  	
  2.86

  	
  %

  	
  33,440

  	
   

  	
  604

  	
   

  	
  1.81

  	
  %

  	
  3.01

  	
  %

  	
  4.20

  	
  %

  	
  3.19

  	
  %

  	
  2.94

  	
  %

  
	
  Textiles,
  Clothing, Footwear, Etc.

  	
   

  	
  25,136

  	
   

  	
  810

  	
   

  	
  3.22

  	
  %

  	
  20,484

  	
   

  	
  601

  	
   

  	
  2.93

  	
  %

  	
  1.38

  	
  %

  	
  2.15

  	
  %

  	
  1.95

  	
  %

  	
  2.93

  	
  %

  
	
  Furniture &
  Household Related

  	
   

  	
  13,525

  	
   

  	
  409

  	
   

  	
  3.02

  	
  %

  	
  5,684

  	
   

  	
  404

  	
   

  	
  7.10

  	
  %

  	
  0.74

  	
  %

  	
  1.09

  	
  %

  	
  0.54

  	
  %

  	
  1.96

  	
  %

  
	
  Electrical

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  
	
  Medical Related

  	
   

  	
  59,864

  	
   

  	
  1,699

  	
   

  	
  2.84

  	
  %

  	
  31,468

  	
   

  	
  722

  	
   

  	
  2.29

  	
  %

  	
  3.28

  	
  %

  	
  4.52

  	
  %

  	
  3.00

  	
  %

  	
  3.51

  	
  %

  
	
  Other

  	
   

  	
  44,392

  	
   

  	
  1,271

  	
   

  	
  2.68

  	
  %

  	
  25,856

  	
   

  	
  654

  	
   

  	
  2.53

  	
  %

  	
  2.43

  	
  %

  	
  3.38

  	
  %

  	
  2.46

  	
  %

  	
  3.18

  	
  %

  
	
  Bid
  Category C

  	
   

  	
  263,216

  	
   

  	
  7,558

  	
   

  	
  2.87

  	
  %

  	
  199,697

  	
   

  	
  4,507

  	
   

  	
  2.26

  	
  %

  	
  14.40

  	
  %

  	
  20.12

  	
  %

  	
  19.04

  	
  %

  	
  21.93

  	
  %

  

 

* Proceeds and Acquisition Values for FY 2000 are annualized to 12
months based on 10 months of data.

 

29.4

 

Table III-2a

FY 1997 - 1999 CONUS Average Adjusted
Acquisition Values, Proceeds, and RORs for CV-2 DEMIL A Product Subpool

Categorized by Bid Category and Product Group

 

	
   

  	
   

  	
  FY 1997
  - 1999 Average

  	
   

  	
  FY 2000*

  	
   

  	
  Percentage
  of

  FY 1997 - 1999 Average

  	
   

  	
  Percentage
  of

  FY 2000*

  	
   

  
	
  Bid Category, Product

  Group

  	
   

  	
  Adj.
  Acq.

  Value ($000s)

  	
   

  	
  Proceeds

  ($000s)

  	
   

  	
  DRMS
  Adj.

  Gross ROR

  	
   

  	
  Adj.
  Acq.

  Value ($000s)

  	
   

  	
  Proceeds

  ($000s)

  	
   

  	
  DRMS Adj.

  Gross ROR

  	
   

  	
  Adj.
  Acq.Value

  	
   

  	
  Proceeds

  	
   

  	
  Adj.
  Acq.Value

  	
   

  	
  Proceeds

  	
   

  
	
  Bid
  Category D: 2% > ROR >= 1%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Aircraft Related,
  Misc. Ground and Shop

  	
   

  	
  7,293

  	
   

  	
  100

  	
   

  	
  1.37

  	
  %

  	
  7,337

  	
   

  	
  76

  	
   

  	
  1.04

  	
  %

  	
  0.40

  	
  %

  	
  0.27

  	
  %

  	
  0.70

  	
  %

  	
  0.37

  	
  %

  
	
  Vehicles

  	
   

  	
  7,673

  	
   

  	
  142

  	
   

  	
  1.85

  	
  %

  	
  5,749

  	
   

  	
  53

  	
   

  	
  0.92

  	
  %

  	
  0.42

  	
  %

  	
  0.38

  	
  %

  	
  0.55

  	
  %

  	
  0.26

  	
  %

  
	
  Textiles,
  Clothing, Footwear, Etc.

  	
   

  	
  9,965

  	
   

  	
  160

  	
   

  	
  1.61

  	
  %

  	
  4,340

  	
   

  	
  81

  	
   

  	
  1.87

  	
  %

  	
  0.55

  	
  %

  	
  0.43

  	
  %

  	
  0.41

  	
  %

  	
  0.40

  	
  %

  
	
  Furniture &
  Household Related

  	
   

  	
  1,026

  	
   

  	
  20

  	
   

  	
  1.91

  	
  %

  	
  431

  	
   

  	
  4

  	
   

  	
  0.89

  	
  %

  	
  0.06

  	
  %

  	
  0.05

  	
  %

  	
  0.04

  	
  %

  	
  0.02

  	
  %

  
	
  Electrical

  	
   

  	
  1,096

  	
   

  	
  15

  	
   

  	
  1.37

  	
  %

  	
  51

  	
   

  	
  0

  	
   

  	
  0.24

  	
  %

  	
  0.06

  	
  %

  	
  0.04

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  
	
  Medical Related

  	
   

  	
  105,613

  	
   

  	
  1,418

  	
   

  	
  1.34

  	
  %

  	
  66,675

  	
   

  	
  968

  	
   

  	
  1.45

  	
  %

  	
  5.78

  	
  %

  	
  3.77

  	
  %

  	
  6.36

  	
  %

  	
  4.71

  	
  %

  
	
  Other

  	
   

  	
  29,630

  	
   

  	
  433

  	
   

  	
  1.46

  	
  %

  	
  19,311

  	
   

  	
  303

  	
   

  	
  1.57

  	
  %

  	
  1.62

  	
  %

  	
  1.15

  	
  %

  	
  1.84

  	
  %

  	
  1.47

  	
  %

  
	
  Bid
  Category D

  	
   

  	
  162,295

  	
   

  	
  2,287

  	
   

  	
  1.41

  	
  %

  	
  103,893

  	
   

  	
  1,485

  	
   

  	
  1.43

  	
  %

  	
  8.88

  	
  %

  	
  6.09

  	
  %

  	
  9.90

  	
  %

  	
  7.23

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bid
  Category E: ROR <1%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Aircraft Related,
  Misc. Ground and Shop

  	
   

  	
  493,982

  	
   

  	
  2,387

  	
   

  	
  0.48

  	
  %

  	
  315,170

  	
   

  	
  2,189

  	
   

  	
  0.69

  	
  %

  	
  27.03

  	
  %

  	
  6.35

  	
  %

  	
  30.05

  	
  %

  	
  10.65

  	
  %

  
	
  Vehicles

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  ––

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  ––

  	
   

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  
	
  Textiles,
  Clothing, Footwear, Etc.

  	
   

  	
  33

  	
   

  	
  0

  	
   

  	
  0.95

  	
  %

  	
  66

  	
   

  	
  4

  	
   

  	
  6.25

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  0.01

  	
  %

  	
  0.02

  	
  %

  
	
  Furniture &
  Household Related

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  ––

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  ––

  	
   

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  
	
  Electrical

  	
   

  	
  432,496

  	
   

  	
  2,898

  	
   

  	
  0.67

  	
  %

  	
  151,614

  	
   

  	
  866

  	
   

  	
  0.57

  	
  %

  	
  23.66

  	
  %

  	
  7.71

  	
  %

  	
  14.45

  	
  %

  	
  4.22

  	
  %

  
	
  Medical Related

  	
   

  	
  21,984

  	
   

  	
  124

  	
   

  	
  0.56

  	
  %

  	
  10,450

  	
   

  	
  91

  	
   

  	
  0.87

  	
  %

  	
  1.20

  	
  %

  	
  0.33

  	
  %

  	
  1.00

  	
  %

  	
  0.44

  	
  %

  
	
  Other

  	
   

  	
  82,090

  	
   

  	
  466

  	
   

  	
  0.57

  	
  %

  	
  30,757

  	
   

  	
  266

  	
   

  	
  0.87

  	
  %

  	
  4.49

  	
  %

  	
  1.24

  	
  %

  	
  2.93

  	
  %

  	
  1.30

  	
  %

  
	
  Bid
  Category E

  	
   

  	
  1,030,584

  	
   

  	
  5,876

  	
   

  	
  0.57

  	
  %

  	
  508,056

  	
   

  	
  3,417

  	
   

  	
  0.67

  	
  %

  	
  53.38

  	
  %

  	
  15.64

  	
  %

  	
  48.43

  	
  %

  	
  16.63

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  1,827,795

  	
   

  	
  37,572

  	
   

  	
  2.06%

  	
   

  	
  1,048,954

  	
   

  	
  20,551

  	
   

  	
  1.96

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  

 

*              Proceeds and Acquisition
Values for FY 2000 are annualized to 12 months based on 10 months of data.

 

29.5

 

Table III-2b

FY 1997 - 1999 CONUS Average Adjusted
Acquisition Values, Proceeds, and RORs for CV-2 DEMIL B/Q Product Subpool

Categorized by Bid Category and Product Group

 

	
   

  	
   

  	
  FY 1997
  - 1999 Average

  	
   

  	
  FY 2000*

  	
   

  	
  Percentage
  of

  FY 1997 - 1999 Average

  	
   

  	
  Percentage
  of

  FY 2000*

  	
   

  
	
  Bid Category, Product Group

  	
   

  	
  Adj.
  Acq.

  Value

  	
   

  	
  Proceeds

  	
   

  	
  DRMS
  Adj.

  Gross ROR

  	
   

  	
  Adj.
  Acq.

  Value

  	
   

  	
  Proceeds

  	
   

  	
  DRMS
  Adj.

  Gross ROR

  	
   

  	
  Adj.
  Acq.

  Value

  	
   

  	
  Proceeds

  	
   

  	
  Adj.
  Acq.

  Value

  	
   

  	
  Proceeds

  	
   

  
	
   

  	
   

  	
  ($000s)

  	
   

  	
  ($000s)

  	
   

  	
   

  	
   

  	
  ($000s)

  	
   

  	
  ($000s)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bid Category C:
  ROR >= 2%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Aircraft Related,
  Misc. Ground and Shop Equ

  	
   

  	
  14,022

  	
   

  	
  536

  	
   

  	
  3.83

  	
  %

  	
  20,587

  	
   

  	
  262

  	
   

  	
  1.27

  	
  %

  	
  0.61

  	
  %

  	
  2.66

  	
  %

  	
  1.16

  	
  %

  	
  1.21

  	
  %

  
	
  Vehicles

  	
   

  	
  84,324

  	
   

  	
  2,920

  	
   

  	
  3.46

  	
  %

  	
  111,388

  	
   

  	
  3,245

  	
   

  	
  2.91

  	
  %

  	
  3.68

  	
  %

  	
  14.48

  	
  %

  	
  6.28

  	
  %

  	
  15.01

  	
  %

  
	
  Textiles,
  Clothing, Footwear, Etc.

  	
   

  	
  15,844

  	
   

  	
  722

  	
   

  	
  4.56

  	
  %

  	
  23,442

  	
   

  	
  497

  	
   

  	
  2.12

  	
  %

  	
  0.69

  	
  %

  	
  3.58

  	
  %

  	
  1.32

  	
  %

  	
  2.30

  	
  %

  
	
  Furniture &
  Household Related

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  15.97

  	
  %

  	
  0

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  
	
  Electrical

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  
	
  Medical Related

  	
   

  	
  27

  	
   

  	
  1

  	
   

  	
  3.21

  	
  %

  	
  10

  	
   

  	
  0

  	
   

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  
	
  FSCs from CV-1 but
  Demil B/Q

  	
   

  	
  8,703

  	
   

  	
  341

  	
   

  	
  3.92

  	
  %

  	
  9,595

  	
   

  	
  454

  	
   

  	
  4.73

  	
  %

  	
  0.38

  	
  %

  	
  1.69

  	
  %

  	
  0.54

  	
  %

  	
  2.10

  	
  %

  
	
  Other

  	
   

  	
  1,579

  	
   

  	
  136

  	
   

  	
  8.61

  	
  %

  	
  1,651

  	
   

  	
  194

  	
   

  	
  11.78

  	
  %

  	
  0.07

  	
  %

  	
  0.67

  	
  %

  	
  0.09

  	
  %

  	
  0.90

  	
  %

  
	
  Bid Category C

  	
   

  	
  124,500

  	
   

  	
  4,656

  	
   

  	
  3.74

  	
  %

  	
  166,672

  	
   

  	
  4,653

  	
   

  	
  2.79

  	
  %

  	
  5.43

  	
  %

  	
  23.09

  	
  %

  	
  9.40

  	
  %

  	
  21.52

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bid Category D:
  2% >=ROR>= 1%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Aircraft Related,
  Misc. Ground and Shop Equ

  	
   

  	
  780,688

  	
   

  	
  9,523

  	
   

  	
  1.22

  	
  %

  	
  593,308

  	
   

  	
  9,646

  	
   

  	
  1.63

  	
  %

  	
  34.04

  	
  %

  	
  47.23

  	
  %

  	
  33.45

  	
  %

  	
  44.62

  	
  %

  
	
  Vehicles

  	
   

  	
  5,749

  	
   

  	
  99

  	
   

  	
  1.72

  	
  %

  	
  12,263

  	
   

  	
  83

  	
   

  	
  0.67

  	
  %

  	
  0.25

  	
  %

  	
  0.49

  	
  %

  	
  0.69

  	
  %

  	
  0.38

  	
  %

  
	
  Textiles,
  Clothing, Footwear, Etc.

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  
	
  Furniture &
  Household Related

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  
	
  Electrical

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  
	
  Medical Related

  	
   

  	
  9,483

  	
   

  	
  97

  	
   

  	
  1.02

  	
  %

  	
  5,051

  	
   

  	
  61

  	
   

  	
  1.21

  	
  %

  	
  0.41

  	
  %

  	
  0.48

  	
  %

  	
  0.28

  	
  %

  	
  0.28

  	
  %

  
	
  FSCs from CV-1
  but Demil B/Q

  	
   

  	
  10,084

  	
   

  	
  127

  	
   

  	
  1.26

  	
  %

  	
  11,661

  	
   

  	
  161

  	
   

  	
  1.38

  	
  %

  	
  0.44

  	
  %

  	
  0.63

  	
  %

  	
  0.66

  	
  %

  	
  0.75

  	
  %

  
	
  Other

  	
   

  	
  5,805

  	
   

  	
  76

  	
   

  	
  1.31

  	
  %

  	
  3,009

  	
   

  	
  21

  	
   

  	
  0.71

  	
  %

  	
  0.25

  	
  %

  	
  0.38

  	
  %

  	
  0.17

  	
  %

  	
  0.10

  	
  %

  
	
  Bid Category D

  	
   

  	
  811,809

  	
   

  	
  9,923

  	
   

  	
  1.22

  	
  %

  	
  625,291

  	
   

  	
  9,972

  	
   

  	
  1.59

  	
  %

  	
  35.40

  	
  %

  	
  49.21

  	
  %

  	
  35.26

  	
  %

  	
  46.13

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bid Category E:
  ROR <1%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Aircraft Related,
  Misc. Ground and Shop Equ

  	
   

  	
  633,938

  	
   

  	
  3,946

  	
   

  	
  0.62

  	
  %

  	
  452,189

  	
   

  	
  4,642

  	
   

  	
  1.03

  	
  %

  	
  27.64

  	
  %

  	
  19.57

  	
  %

  	
  25.50

  	
  %

  	
  21.48

  	
  %

  
	
  Vehicles

  	
   

  	
  35,887

  	
   

  	
  292

  	
   

  	
  0.81

  	
  %

  	
  15,314

  	
   

  	
  154

  	
   

  	
  1.01

  	
  %

  	
  1.56

  	
  %

  	
  1.45

  	
  %

  	
  0.86

  	
  %

  	
  0.71

  	
  %

  
	
  Textiles,
  Clothing, Footwear, Etc.

  	
   

  	
  10,272

  	
   

  	
  86

  	
   

  	
  0.84

  	
  %

  	
  16,780

  	
   

  	
  195

  	
   

  	
  1.16

  	
  %

  	
  0.45

  	
  %

  	
  0.43

  	
  %

  	
  0.95

  	
  %

  	
  0.90

  	
  %

  
	
  Furniture &
  Household Related

  	
   

  	
  7

  	
   

  	
  0

  	
   

  	
  0.01

  	
  %

  	
  1

  	
   

  	
  0

  	
   

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  
	
  Electrical

  	
   

  	
  114,110

  	
   

  	
  107

  	
   

  	
  0.09

  	
  %

  	
  109,726

  	
   

  	
  66

  	
   

  	
  0.06

  	
  %

  	
  4.98

  	
  %

  	
  0.53

  	
  %

  	
  6.19

  	
  %

  	
  0.30

  	
  %

  
	
  Medical Related

  	
   

  	
  2,147

  	
   

  	
  11

  	
   

  	
  0.49

  	
  %

  	
  1,484

  	
   

  	
  37

  	
   

  	
  2.50

  	
  %

  	
  0.09

  	
  %

  	
  0.05

  	
  %

  	
  0.08

  	
  %

  	
  0.17

  	
  %

  
	
  FSCs from CV-1
  but Demil B/Q

  	
   

  	
  433,435

  	
   

  	
  964

  	
   

  	
  0.22

  	
  %

  	
  352,340

  	
   

  	
  1,006

  	
   

  	
  0.29

  	
  %

  	
  18.90

  	
  %

  	
  4.78

  	
  %

  	
  19.87

  	
  %

  	
  4.65

  	
  %

  
	
  Other

  	
   

  	
  127,343

  	
   

  	
  178

  	
   

  	
  0.14

  	
  %

  	
  33,821

  	
   

  	
  892

  	
   

  	
  2.64

  	
  %

  	
  5.55

  	
  %

  	
  0.88

  	
  %

  	
  1.91

  	
  %

  	
  4.12

  	
  %

  
	
  Bid Category E

  	
   

  	
  1,357,137

  	
   

  	
  5,583

  	
   

  	
  0.41

  	
  %

  	
  981,656

  	
   

  	
  6,992

  	
   

  	
  0.71

  	
  %

  	
  59.17

  	
  %

  	
  27.69

  	
  %

  	
  55.35

  	
  %

  	
  32.35

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL

  	
   

  	
  2,293,446

  	
   

  	
  20,162

  	
   

  	
  0.88

  	
  %

  	
  1,773,619

  	
   

  	
  21,617

  	
   

  	
  1.22

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  

 

* Proceeds and Acquisition Values for FY 2000
are annualized to 12 months based on 10 months of date.

 

29.6

 

Table III-2c

FY 1996 - 1998 CONUS Average Adjusted
Acquisition Values, Proceeds, and RORs for CV-1 Product Subpool

Categorized by Bid Category and Product Group

 

	
   

  	
   

  	
  FY 1996-98 Average

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Adj. Acq. Value

  	
   

  	
  Proceeds

  	
   

  	
  DRMS Adj.

  	
   

  	
  Percentage of

  	
   

  
	
   

  	
   

  	
  ($000s)

  	
   

  	
  ($000s)

  	
   

  	
  Gross ROR

  	
   

  	
  FY 1996-98 Average

  	
   

  
	
  Bid
  Category, Product Group

  	
   

  	
  [Column 2]

  	
   

  	
  [Column 3]

  	
   

  	
  [Column 4]

  	
   

  	
  Adj. Acq. Value

  	
   

  	
  Proceeds

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bid Category A: ROR >= 5.60%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Equipment

  	
   

  	
  111,727

  	
   

  	
  13,998

  	
   

  	
  12.53

  	
  %

  	
  4.14

  	
  %

  	
  25.50

  	
  %

  
	
  Materials

  	
   

  	
  16,350

  	
   

  	
  2,457

  	
   

  	
  15.03

  	
  %

  	
  0.61

  	
  %

  	
  4.48

  	
  %

  
	
  Electrical

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  
	
  Bid
  Category A

  	
   

  	
  128,077

  	
   

  	
  16,456

  	
   

  	
  12.85

  	
  %

  	
  4.74

  	
  %

  	
  29.98

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bid Category B: 5.60% > ROR >= 3.80%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Equipment

  	
   

  	
  79,620

  	
   

  	
  3,734

  	
   

  	
  4.69

  	
  %

  	
  2.95

  	
  %

  	
  6.80

  	
  %

  
	
  Materials

  	
   

  	
  76,532

  	
   

  	
  3,588

  	
   

  	
  4.69

  	
  %

  	
  2.84

  	
  %

  	
  6.54

  	
  %

  
	
  Electrical

  	
   

  	
  22,334

  	
   

  	
  1,021

  	
   

  	
  4.57

  	
  %

  	
  0.83

  	
  %

  	
  1.86

  	
  %

  
	
  Bid
  Category B

  	
   

  	
  178,487

  	
   

  	
  8,343

  	
   

  	
  4.67

  	
  %

  	
  6.61

  	
  %

  	
  15.20

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bid Category C: 3.80% > ROR >= 2.00%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Equipment

  	
   

  	
  160,849

  	
   

  	
  4,229

  	
   

  	
  2.63

  	
  %

  	
  5.96

  	
  %

  	
  7.70

  	
  %

  
	
  Materials

  	
   

  	
  82,870

  	
   

  	
  1,499

  	
   

  	
  2.38

  	
  %

  	
  2.33

  	
  %

  	
  2.73

  	
  %

  
	
  Electrical

  	
   

  	
  179,045

  	
   

  	
  5,263

  	
   

  	
  2.94

  	
  %

  	
  6.63

  	
  %

  	
  9.59

  	
  %

  
	
  Bid Category
  C

  	
   

  	
  402,764

  	
   

  	
  10,991

  	
   

  	
  2.73

  	
  %

  	
  14.92

  	
  %

  	
  20.02

  	
  %

  

 

29.7

 

Table III-2c

FY 1996 - 1998 CONUS Average Adjusted
Acquisition Values, Proceeds, and RORs for CV-1 Product Subpool

Categorized by Bid Category and Product Group

 

	
   

  	
   

  	
  FY 1996-98 Average

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Adj. Acq. Value

  	
   

  	
  Proceeds

  	
   

  	
  DRMS Adj.

  	
   

  	
  Percentage of

  	
   

  
	
   

  	
   

  	
  ($000s)

  	
   

  	
  ($000s)

  	
   

  	
  Gross ROR

  	
   

  	
  FY 1996-98 Average

  	
   

  
	
  Bid
  Category, Product Group

  	
   

  	
  [Column 2]

  	
   

  	
  [Column 3]

  	
   

  	
  [Column 4]

  	
   

  	
  Adj. Acq. Value

  	
   

  	
  Proceeds

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bid Category D: 2.00% > ROR >= 1.00%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Equipment

  	
   

  	
  419,854

  	
   

  	
  5,745

  	
   

  	
  1.37

  	
  %

  	
  15.55

  	
  %

  	
  10.47

  	
  %

  
	
  Materials

  	
   

  	
  124,785

  	
   

  	
  1,679

  	
   

  	
  1.35

  	
  %

  	
  4.62

  	
  %

  	
  3.06

  	
  %

  
	
  Electrical

  	
   

  	
  477,581

  	
   

  	
  6,106

  	
   

  	
  1.28

  	
  %

  	
  17.69

  	
  %

  	
  11.12

  	
  %

  
	
  Bid
  Category D

  	
   

  	
  1,022,220

  	
   

  	
  13,530

  	
   

  	
  1.32

  	
  %

  	
  37.87

  	
  %

  	
  24.65

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bid Category E: ROR < 1.00%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Equipment

  	
   

  	
  125,204

  	
   

  	
  911

  	
   

  	
  0.73

  	
  %

  	
  4.64

  	
  %

  	
  1.66

  	
  %

  
	
  Materials

  	
   

  	
  89,869

  	
   

  	
  730

  	
   

  	
  0.81

  	
  %

  	
  3.33

  	
  %

  	
  1.33

  	
  %

  
	
  Electrical

  	
   

  	
  752,884

  	
   

  	
  3,931

  	
   

  	
  0.52

  	
  %

  	
  27.89

  	
  %

  	
  7.16

  	
  %

  
	
  Bid
  Category E

  	
   

  	
  967,957

  	
   

  	
  5,573

  	
   

  	
  0.56

  	
  %

  	
  35.86

  	
  %

  	
  10.15

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  2,699,504

  	
   

  	
  57,893

  	
   

  	
  2.03

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  

 

29.8

 

Table III-2d

FY 1997 - 1999 CONUS Average Adjusted
Acquisition Values, Proceeds, and RORs for CV-2 DEMIL A Product Subpool

Categorized by Product Group and Bid Category

 

	
   

  	
   

  	
  FY 1997
  - 1999 Average

  	
   

  	
  FY 2000*

  	
   

  	
  Percentage
  of

  FY 1997 - 1999 

  	
   

  	
  Percentage
  of

  FY 2000* 

  	
   

  
	
   

  	
   

  	
  Adj.
  Acq.

  	
   

  	
  Proceeds

  	
   

  	
  DRMS
  Adj.

  	
   

  	
  Adj.
  Acq.

  	
   

  	
  Proceeds

  	
   

  	
  DRMS
  Adj.

  	
   

  	
  Product
  Group

  	
   

  	
  Product
  Group

  	
   

  
	
  Product Group, Bid Category

  	
   

  	
  Value
  ($000s)

  	
   

  	
  ($000s)

  	
   

  	
  Gross
  ROR

  	
   

  	
  Value
  ($000s)

  	
   

  	
  ($000s)

  	
   

  	
  Gross
  ROR

  	
   

  	
  Adj.
  Acq. Value

  	
   

  	
  Proceeds

  	
   

  	
  Adj.
  Acq. Value

  	
   

  	
  Proceeds

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Aircraft Related, Misc., Ground and Sho

  	
   

  	
  575,633

  	
   

  	
  4,747

  	
   

  	
  0.82

  	
  %

  	
  409,115

  	
   

  	
  3,930

  	
   

  	
  0.96

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  
	
  Bid
  Category A: ROR>= 5.6%

  	
   

  	
  6,191

  	
   

  	
  350

  	
   

  	
  5.65

  	
  %

  	
  2,439

  	
   

  	
  114

  	
   

  	
  4.67

  	
  %

  	
  1.08

  	
  %

  	
  7.38

  	
  %

  	
  0.60

  	
  %

  	
  2.90

  	
  %

  
	
  Bid
  Category B: 5.6% > ROR >=3.8%

  	
   

  	
  2,925

  	
   

  	
  115

  	
   

  	
  3.95

  	
  %

  	
  1,404

  	
   

  	
  28

  	
   

  	
  2.00

  	
  %

  	
  0.51

  	
  %

  	
  2.43

  	
  %

  	
  0.34

  	
  %

  	
  0.71

  	
  %

  
	
  Bid
  Category C: 3.8% > ROR >= 2%

  	
   

  	
  65,242

  	
   

  	
  1,794

  	
   

  	
  2.75

  	
  %

  	
  82,764

  	
   

  	
  1,522

  	
   

  	
  1.84

  	
  %

  	
  11.33

  	
  %

  	
  37.79

  	
  %

  	
  20.23

  	
  %

  	
  38.74

  	
  %

  
	
  Bid
  Category D: 2% > ROR >= 

  1%

  	
   

  	
  7,293

  	
   

  	
  100

  	
   

  	
  1.37

  	
  %

  	
  7,337

  	
   

  	
  76

  	
   

  	
  1.04

  	
  %

  	
  1.27

  	
  %

  	
  2.11

  	
  %

  	
  1.79

  	
  %

  	
  1.94

  	
  %

  
	
  Bid
  Category E: ROR < 1%

  	
   

  	
  493,982

  	
   

  	
  2,387

  	
   

  	
  0.48

  	
  %

  	
  315,170

  	
   

  	
  2,189

  	
   

  	
  0.69

  	
  %

  	
  85.82

  	
  %

  	
  50.29

  	
  %

  	
  77.04

  	
  %

  	
  55.71

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Vehicles

  	
   

  	
  207,818

  	
   

  	
  9,304

  	
   

  	
  4.48

  	
  %

  	
  127,173

  	
   

  	
  3,713

  	
   

  	
  2.92

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  
	
  Bid
  Category A: ROR>=5.6%

  	
   

  	
  50,161

  	
   

  	
  3,444

  	
   

  	
  6.87

  	
  %

  	
  24,685

  	
   

  	
  1,116

  	
   

  	
  4.52

  	
  %

  	
  24.14

  	
  %

  	
  37.01

  	
  %

  	
  19.41

  	
  %

  	
  30.06

  	
  %

  
	
  Bid
  Category B: 5.6% > ROR >=3.8%

  	
   

  	
  94,927

  	
   

  	
  4,142

  	
   

  	
  4.36

  	
  %

  	
  63,300

  	
   

  	
  1,940

  	
   

  	
  3.06

  	
  %

  	
  45.66

  	
  %

  	
  44.52

  	
  %

  	
  49.77

  	
  %

  	
  52.25

  	
  %

  
	
  Bid
  Category C: 3.8% > ROR >= 2%

  	
   

  	
  55,057

  	
   

  	
  1,577

  	
   

  	
  2.86

  	
  %

  	
  33,440

  	
   

  	
  604

  	
   

  	
  1.81

  	
  %

  	
  26.49

  	
  %

  	
  16.95

  	
  %

  	
  26.30

  	
  %

  	
  16.27

  	
  %

  
	
  Bid
  Category D: 2% > ROR >= 

  1%

  	
   

  	
  7,673

  	
   

  	
  142

  	
   

  	
  1.85

  	
  %

  	
  5,749

  	
   

  	
  53

  	
   

  	
  0.92

  	
  %

  	
  3.69

  	
  %

  	
  1.52

  	
  %

  	
  4.52

  	
  %

  	
  1.43

  	
  %

  
	
  Bid
  Category E: ROR < 1%

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Textiles, Clothing, Footwear, Etc.

  	
   

  	
  141,296

  	
   

  	
  9,367

  	
   

  	
  6.63

  	
  %

  	
  108,445

  	
   

  	
  5,823

  	
   

  	
  5.37

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  
	
  Bid
  Category A: ROR>= 5.6%

  	
   

  	
  89,248

  	
   

  	
  7,724

  	
   

  	
  8.65

  	
  %

  	
  72,930

  	
   

  	
  4,805

  	
   

  	
  6.59

  	
  %

  	
  63.16

  	
  %

  	
  82.46

  	
  %

  	
  67.25

  	
  %

  	
  82.52

  	
  %

  
	
  Bid
  Category B: 5.6% > ROR >=3.8%

  	
   

  	
  16,914

  	
   

  	
  673

  	
   

  	
  3.98

  	
  %

  	
  10,624

  	
   

  	
  331

  	
   

  	
  3.12

  	
  %

  	
  11.97

  	
  %

  	
  7.19

  	
  %

  	
  9.80

  	
  %

  	
  5.69

  	
  %

  
	
  Bid
  Category C: 3.8% > ROR >= 2%

  	
   

  	
  25,136

  	
   

  	
  810

  	
   

  	
  3.22

  	
  %

  	
  20,484

  	
   

  	
  601

  	
   

  	
  2.93

  	
  %

  	
  17.79

  	
  %

  	
  8.64

  	
  %

  	
  18.89

  	
  %

  	
  10.32

  	
  %

  
	
  Bid
  Category D: 2% > ROR >= 

  1%

  	
   

  	
  9,965

  	
   

  	
  160

  	
   

  	
  1.61

  	
  %

  	
  4,340

  	
   

  	
  81

  	
   

  	
  1.87

  	
  %

  	
  7.05

  	
  %

  	
  1.71

  	
  %

  	
  4.00

  	
  %

  	
  1.40

  	
  %

  
	
  Bid
  Category E: ROR < 1%

  	
   

  	
  33

  	
   

  	
  0

  	
   

  	
  0.95

  	
  %

  	
  66

  	
   

  	
  4

  	
   

  	
  6.25

  	
  %

  	
  0.02

  	
  %

  	
  0.00

  	
  %

  	
  0.06

  	
  %

  	
  0.07

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Furniture & Household Related

  	
   

  	
  86,249

  	
   

  	
  3,675

  	
   

  	
  4.26

  	
  %

  	
  43,600

  	
   

  	
  1,849

  	
   

  	
  4.24

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  
	
  Bid
  Category A: ROR>= 5.6%

  	
   

  	
  78

  	
   

  	
  9

  	
   

  	
  11.88

  	
  %

  	
  24

  	
   

  	
  3

  	
   

  	
  12.87

  	
  %

  	
  0.09

  	
  %

  	
  0.25

  	
  %

  	
  0.05

  	
  %

  	
  0.16

  	
  %

  
	
  Bid
  Category B: 5.6% > ROR >=3.8%

  	
   

  	
  71,620

  	
   

  	
  3,238

  	
   

  	
  4.52

  	
  %

  	
  37,462

  	
   

  	
  1,438

  	
   

  	
  3.84

  	
  %

  	
  83.04

  	
  %

  	
  88.10

  	
  %

  	
  85.92

  	
  %

  	
  77.79

  	
  %

  
	
  Bid
  Category C: 3.8% > ROR >= 2%

  	
   

  	
  13,525

  	
   

  	
  409

  	
   

  	
  3.02

  	
  %

  	
  5,684

  	
   

  	
  404

  	
   

  	
  7.10

  	
  %

  	
  15.68

  	
  %

  	
  11.12

  	
  %

  	
  13.04

  	
  %

  	
  21.84

  	
  %

  
	
  Bid
  Category D: 2% > ROR >= 

  1%

  	
   

  	
  1,026

  	
   

  	
  20

  	
   

  	
  1.91

  	
  %

  	
  431

  	
   

  	
  4

  	
   

  	
  0.89

  	
  %

  	
  1.19

  	
  %

  	
  0.53

  	
  %

  	
  0.99

  	
  %

  	
  0.21

  	
  %

  
	
  Bid
  Category E: ROR < 1%

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Electrical

  	
   

  	
  433,593

  	
   

  	
  2,913

  	
   

  	
  0.67

  	
  %

  	
  151,665

  	
   

  	
  867

  	
   

  	
  0.57

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  
	
  Bid
  Category A: ROR>= 5.6%

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  
	
  Bid
  Category B: 5.6% > ROR >=3.8%

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  
	
  Bid
  Category C: 3.8% > ROR >= 2%

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  
	
  Bid
  Category D: 2% > ROR >= 

  1%

  	
   

  	
  1,096

  	
   

  	
  15

  	
   

  	
  1.37

  	
  %

  	
  51

  	
   

  	
  0

  	
   

  	
  0.24

  	
  %

  	
  0.25

  	
  %

  	
  0.51

  	
  %

  	
  0.03

  	
  %

  	
  0.01

  	
  %

  
	
  Bid
  Category E: ROR < 1%

  	
   

  	
  432,496

  	
   

  	
  2,898

  	
   

  	
  0.67

  	
  %

  	
  151,614

  	
   

  	
  866

  	
   

  	
  0.57

  	
  %

  	
  99.75

  	
  %

  	
  99.49

  	
  %

  	
  99.97

  	
  %

  	
  99.99

  	
  %

  

 

* Proceeds and Acquisition Values for FY 2000 are annualized to 12
months based on 10 months of data.

 

29.9

 

Table III-2d

FY 1997 - 1999 CONUS Average Adjusted
Acquisition Values, Proceeds, and RORs for CV-2 DEMIL A Product Subpool

Categorized by Product Group and Bid Category

 

	
   

  	
   

  	
  FY 1997
  - 1999 Average

  	
   

  	
  FY 2000*

  	
   

  	
  Percentage
  of

  FY 1997 - 1999

  	
   

  	
  Percentage
  of

  FY 2000* 

  	
   

  
	
   

  	
   

  	
  Adj.
  Acq.

  	
   

  	
  Proceeds

  	
   

  	
  DRMS
  Adj.

  	
   

  	
  Adj.
  Acq.

  	
   

  	
  Proceeds

  	
   

  	
  DRMS
  Adj.

  	
   

  	
  Product
  Group

  	
   

  	
  Product
  Group

  	
   

  
	
  Product Group, Bid Category

  	
   

  	
  Value
  ($000s)

  	
   

  	
  ($000s)

  	
   

  	
  Gross
  ROR

  	
   

  	
  Value
  ($000s)

  	
   

  	
  ($000s)

  	
   

  	
  Gross
  ROR

  	
   

  	
  Adj.
  Acq. Value

  	
   

  	
  Proceeds

  	
   

  	
  Adj.
  Acq. Value

  	
   

  	
  Proceeds

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Medical Related

  	
   

  	
  212,308

  	
   

  	
  4,506

  	
   

  	
  2.12

  	
  %

  	
  122,937

  	
   

  	
  2,739

  	
   

  	
  2.23

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  
	
  Bid
  Category A: ROR>= 5.6%

  	
   

  	
  7,320

  	
   

  	
  522

  	
   

  	
  7.14

  	
  %

  	
  5,275

  	
   

  	
  499

  	
   

  	
  9.46

  	
  %

  	
  3.45

  	
  %

  	
  11.59

  	
  %

  	
  4.29

  	
  %

  	
  18.22

  	
  %

  
	
  Bid
  Category B: 5.6% > ROR >=3.8%

  	
   

  	
  17,528

  	
   

  	
  742

  	
   

  	
  4.23

  	
  %

  	
  9,071

  	
   

  	
  459

  	
   

  	
  5.06

  	
  %

  	
  8.26

  	
  %

  	
  16.47

  	
  %

  	
  7.38

  	
  %

  	
  16.76

  	
  %

  
	
  Bid
  Category C: 3.8% > ROR >= 2%

  	
   

  	
  59,864

  	
   

  	
  1,699

  	
   

  	
  2.84

  	
  %

  	
  31,468

  	
   

  	
  722

  	
   

  	
  2.29

  	
  %

  	
  28.20

  	
  %

  	
  37.71

  	
  %

  	
  25.60

  	
  %

  	
  26.36

  	
  %

  
	
  Bid
  Category D: 2% > ROR >= 

  1%

  	
   

  	
  105,613

  	
   

  	
  1,418

  	
   

  	
  1.34

  	
  %

  	
  66,675

  	
   

  	
  968

  	
   

  	
  1.45

  	
  %

  	
  49.74

  	
  %

  	
  31.48

  	
  %

  	
  54.23

  	
  %

  	
  35.36

  	
  %

  
	
  Bid
  Category E: ROR < 1%

  	
   

  	
  21,984

  	
   

  	
  124

  	
   

  	
  0.56

  	
  %

  	
  10,450

  	
   

  	
  91

  	
   

  	
  0.87

  	
  %

  	
  10.35

  	
  %

  	
  2.75

  	
  %

  	
  8.50

  	
  %

  	
  3.31

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other

  	
   

  	
  170,898

  	
   

  	
  3,061

  	
   

  	
  1.79

  	
  %

  	
  86,019

  	
   

  	
  1,631

  	
   

  	
  1.90

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  
	
  Bid
  Category A: ROR>= 5.6%

  	
   

  	
  6,374

  	
   

  	
  497

  	
   

  	
  7.80

  	
  %

  	
  4,592

  	
   

  	
  226

  	
   

  	
  4.93

  	
  %

  	
  3.73

  	
  %

  	
  16.24

  	
  %

  	
  5.34

  	
  %

  	
  13.89

  	
  %

  
	
  Bid
  Category B: 5.6% > ROR >=3.8%

  	
   

  	
  8,411

  	
   

  	
  394

  	
   

  	
  4.69

  	
  %

  	
  5,504

  	
   

  	
  182

  	
   

  	
  3.30

  	
  %

  	
  4.92

  	
  %

  	
  12.88

  	
  %

  	
  6.40

  	
  %

  	
  11.13

  	
  %

  
	
  Bid
  Category C: 3.8% > ROR >= 2%

  	
   

  	
  44,392

  	
   

  	
  1,271

  	
   

  	
  2.86

  	
  %

  	
  25,858

  	
   

  	
  654

  	
   

  	
  2.53

  	
  %

  	
  25.98

  	
  %

  	
  41.52

  	
  %

  	
  30.06

  	
  %

  	
  40.09

  	
  %

  
	
  Bid
  Category D: 2% > ROR >= 

  1%

  	
   

  	
  29,630

  	
   

  	
  433

  	
   

  	
  1.46

  	
  %

  	
  19,311

  	
   

  	
  303

  	
   

  	
  1.57

  	
  %

  	
  17.34

  	
  %

  	
  14.14

  	
  %

  	
  22.45

  	
  %

  	
  18.55

  	
  %

  
	
  Bid
  Category E: ROR < 1%

  	
   

  	
  82,090

  	
   

  	
  466

  	
   

  	
  0.57

  	
  %

  	
  30,757

  	
   

  	
  266

  	
   

  	
  0.87

  	
  %

  	
  48.03

  	
  %

  	
  15.23

  	
  %

  	
  35.76

  	
  %

  	
  16.34

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  1,827,795

  	
   

  	
  37,572

  	
   

  	
  2.06

  	
  %

  	
  1,048,954

  	
   

  	
  20,551

  	
   

  	
  1.96

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

* Proceeds and Acquisition Values for FY 2000
are annualized to 12 months based on 10 months of data.

 

29.10

 

Table III-2e

FY 1997 - 1999 CONUS Average Adjusted
Acquisition Values, Proceeds, and RORs for CV-2 DEMIL B/Q Product Subpool

Categorized by Product Group and Bid Category

 

	
   

  	
   

  	
  FY 1997
  - 1999 Average

  	
   

  	
  FY 2000*

  	
   

  	
  Percentage
  of

  FY 1997 - 1999

  	
   

  	
  Percentage
  of

  FY 2000*

  	
   

  
	
   

  	
   

  	
  Adj.
  Acq.

  	
   

  	
  Proceeds

  	
   

  	
  DRMS
  Adj.

  	
   

  	
  Adj.
  Acq.

  	
   

  	
  Proceeds

  	
   

  	
  DRMS
  Adj.

  	
   

  	
  Product
  Group

  	
   

  	
  Product
  Group

  	
   

  
	
  Product Group, Bid Category

  	
   

  	
  Value
  ($000s)

  	
   

  	
  ($000s)

  	
   

  	
  Gross
  ROR

  	
   

  	
  Value
  ($000s)

  	
   

  	
  ($000s)

  	
   

  	
  Gross
  ROR

  	
   

  	
  Adj.
  Acq. Value

  	
   

  	
  Proceeds

  	
   

  	
  Adj.
  Acq. Value

  	
   

  	
  Proceeds

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Aircraft Related, Misc. Ground and Shop Equ

  	
   

  	
  1,428,648

  	
   

  	
  14,005

  	
   

  	
  0.98

  	
  %

  	
  1,066,084

  	
   

  	
  14,550

  	
   

  	
  1.36

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  
	
  Bid
  Category C: ROR >= 2%

  	
   

  	
  14,022

  	
   

  	
  536

  	
   

  	
  3.83

  	
  %

  	
  20,587

  	
   

  	
  262

  	
   

  	
  1.27

  	
  %

  	
  0.98

  	
  %

  	
  3.83

  	
  %

  	
  1.93

  	
  %

  	
  1.80

  	
  %

  
	
  Bid
  Category D: 2% > ROR >= 1%

  	
   

  	
  780,688

  	
   

  	
  9,523

  	
   

  	
  1.22

  	
  %

  	
  593,308

  	
   

  	
  9,646

  	
   

  	
  1.63

  	
  %

  	
  54.65

  	
  %

  	
  68.00

  	
  %

  	
  55.65

  	
  %

  	
  66.29

  	
  %

  
	
  Bid
  Category E: ROR <1%

  	
   

  	
  633,938

  	
   

  	
  3,946

  	
   

  	
  0.62

  	
  %

  	
  452,189

  	
   

  	
  4,642

  	
   

  	
  1.03

  	
  %

  	
  44.37

  	
  %

  	
  28.17

  	
  %

  	
  42.42

  	
  %

  	
  31.91

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Vehicles

  	
   

  	
  126,960

  	
   

  	
  3,311

  	
   

  	
  2.63

  	
  %

  	
  138,965

  	
   

  	
  3,482

  	
   

  	
  2.51

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  
	
  Bid
  Category C: ROR >= 2%

  	
   

  	
  84,324

  	
   

  	
  2,920

  	
   

  	
  3.46

  	
  %

  	
  111,388

  	
   

  	
  3,245

  	
   

  	
  2.91

  	
  %

  	
  66.95

  	
  %

  	
  88.19

  	
  %

  	
  80.16

  	
  %

  	
  93.20

  	
  %

  
	
  Bid
  Category D: 2% ROR >= 1%

  	
   

  	
  5,749

  	
   

  	
  99

  	
   

  	
  1.72

  	
  %

  	
  12,263

  	
   

  	
  83

  	
   

  	
  0.67

  	
  %

  	
  4.56

  	
  %

  	
  3.00

  	
  %

  	
  8.82

  	
  %

  	
  2.37

  	
  %

  
	
  Bid
  Category E: ROR <1%

  	
   

  	
  35,887

  	
   

  	
  292

  	
   

  	
  0.81

  	
  %

  	
  15,314

  	
   

  	
  154

  	
   

  	
  1.01

  	
  %

  	
  28.49

  	
  %

  	
  8.81

  	
  %

  	
  11.02

  	
  %

  	
  4.43

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Textiles, Clothing, Footwear, Etc.

  	
   

  	
  26,115

  	
   

  	
  808

  	
   

  	
  3.09

  	
  %

  	
  40,222

  	
   

  	
  692

  	
   

  	
  1.72

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  
	
  Bid
  Category C: ROR >= 2%

  	
   

  	
  15,844

  	
   

  	
  722

  	
   

  	
  4.56

  	
  %

  	
  23,442

  	
   

  	
  497

  	
   

  	
  2.12

  	
  %

  	
  60.67

  	
  %

  	
  89.37

  	
  %

  	
  58.28

  	
  %

  	
  71.83

  	
  %

  
	
  Bid
  Category D: 2% ROR >= 1%

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  
	
  Bid
  Category E: ROR <1%

  	
   

  	
  10,272

  	
   

  	
  86

  	
   

  	
  0.84

  	
  %

  	
  16,780

  	
   

  	
  195

  	
   

  	
  1.16

  	
  %

  	
  39.33

  	
  %

  	
  10.63

  	
  %

  	
  41.72

  	
  %

  	
  28.17

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Furniture & Household Related

  	
   

  	
  7

  	
   

  	
  0

  	
   

  	
  1.02

  	
  %

  	
  1

  	
   

  	
  0

  	
   

  	
  0.00

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  0.00

  	
  %

  
	
  Bid
  Category C: ROR >= 2%

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  15.97

  	
  %

  	
  0

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  6.34

  	
  %

  	
  99.43

  	
  %

  	
  0.00

  	
  %

  	
  —

  	
   

  
	
  Bid
  Category D: 2% ROR >= 1%

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  —

  	
   

  
	
  Bid
  Category E: ROR <1%

  	
   

  	
  7

  	
   

  	
  0

  	
   

  	
  0.01

  	
  %

  	
  1

  	
   

  	
  0

  	
   

  	
  0.00

  	
  %

  	
  93.66

  	
  %

  	
  0.57

  	
  %

  	
  100.00

  	
  %

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Electrical

  	
   

  	
  114,110

  	
   

  	
  107

  	
   

  	
  0.09

  	
  %

  	
  109,726

  	
   

  	
  66

  	
   

  	
  0.06

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  
	
  Bid
  Category C: ROR >= 2%

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  
	
  Bid
  Category D: 2% ROR >= 1%

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  
	
  Bid
  Category E: ROR <1%

  	
   

  	
  114,110

  	
   

  	
  107

  	
   

  	
  0.09

  	
  %

  	
  109,726

  	
   

  	
  66

  	
   

  	
  0.06

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Medical Related

  	
   

  	
  11,657

  	
   

  	
  108

  	
   

  	
  0.93

  	
  %

  	
  6,545

  	
   

  	
  98

  	
   

  	
  1.50

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  
	
  Bid
  Category C: ROR >= 2%

  	
   

  	
  27

  	
   

  	
  1

  	
   

  	
  3.21

  	
  %

  	
  10

  	
   

  	
  0

  	
   

  	
  0.00

  	
  %

  	
  0.24

  	
  %

  	
  0.81

  	
  %

  	
  0.15

  	
  %

  	
  0.00

  	
  %

  
	
  Bid
  Category D: 2% ROR >= 1%

  	
   

  	
  9,483

  	
   

  	
  97

  	
   

  	
  1.02

  	
  %

  	
  5,051

  	
   

  	
  61

  	
   

  	
  1.21

  	
  %

  	
  81.35

  	
  %

  	
  89.49

  	
  %

  	
  77.17

  	
  %

  	
  62.35

  	
  %

  
	
  Bid
  Category E: ROR <1%

  	
   

  	
  2,147

  	
   

  	
  11

  	
   

  	
  0.49

  	
  %

  	
  1,484

  	
   

  	
  37

  	
   

  	
  2.50

  	
  %

  	
  18.42

  	
  %

  	
  9.70

  	
  %

  	
  22.68

  	
  %

  	
  37.65

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other

  	
   

  	
  134,727

  	
   

  	
  391

  	
   

  	
  0.29

  	
  %

  	
  38,481

  	
   

  	
  1,107

  	
   

  	
  2.88

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  
	
  Bid
  Category C: ROR >= 2%

  	
   

  	
  1,579

  	
   

  	
  136

  	
   

  	
  8.61

  	
  %

  	
  1,651

  	
   

  	
  194

  	
   

  	
  11.78

  	
  %

  	
  1.17

  	
  %

  	
  34.82

  	
  %

  	
  4.29

  	
  %

  	
  17.56

  	
  %

  
	
  Bid
  Category D: 2% ROR >= 1%

  	
   

  	
  5,805

  	
   

  	
  76

  	
   

  	
  1.31

  	
  %

  	
  3,009

  	
   

  	
  21

  	
   

  	
  0.71

  	
  %

  	
  4.31

  	
  %

  	
  19.52

  	
  %

  	
  7.82

  	
  %

  	
  1.92

  	
  %

  
	
  Bid
  Category E: ROR <1%

  	
   

  	
  127,343

  	
   

  	
  178

  	
   

  	
  0.14

  	
  %

  	
  33,821

  	
   

  	
  892

  	
   

  	
  2.64

  	
  %

  	
  94.52

  	
  %

  	
  45.66

  	
  %

  	
  87.89

  	
  %

  	
  80.52

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  2,293,446

  	
   

  	
  20,162

  	
   

  	
  0.88

  	
  %

  	
  1,773,619

  	
   

  	
  21,617

  	
   

  	
  1.22

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

* Proceeds and Acquisition Values for FY 2000
are annualized to 12 months based on 10 months of date.

 

29.11

 

Table III -2f

FY 1996 - 1998 CONUS Average Adjusted
Acquisition Values, Proceeds and RORs for CV-1 Product Subpool

Categorized by Product Group and Bid Category

 

	
   

  	
   

  	
  FY 1996-98 Average

  	
   

  	
  Percentage of

  	
   

  
	
   

  	
   

  	
  Adj. Acq. Value

  	
   

  	
  Proceeds

  	
   

  	
   

  	
   

  	
  FY 1996-98 Average

  	
   

  
	
  Product
  Group, Bid Category

  	
   

  	
  ($000)

  [Column 2]

  	
   

  	
  ($000)

  [Column 3]

  	
   

  	
  Gross ROR

  [Column 4]

  	
   

  	
  Adj. Acq. Value

  	
   

  	
  Proceeds

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Equipment

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bid Category A: ROR>= 5.60%

  	
   

  	
  111,727

  	
   

  	
  13,998

  	
   

  	
  12.53

  	
  %

  	
  4.14

  	
  %

  	
  25.50

  	
  %

  
	
  Bid Category B: > 5.60% > ROR >=
  3.80%

  	
   

  	
  79,620

  	
   

  	
  3,734

  	
   

  	
  4.69

  	
  %

  	
  2.95

  	
  %

  	
  6.80

  	
  %

  
	
  Bid Category C: > 3.80% > ROR >=
  2.00%

  	
   

  	
  160,849

  	
   

  	
  4,229

  	
   

  	
  2.63

  	
  %

  	
  5.96

  	
  %

  	
  7.70

  	
  %

  
	
  Bid Category D: > 2.00% > ROR >=
  1.00%

  	
   

  	
  419,854

  	
   

  	
  5,745

  	
   

  	
  1.37

  	
  %

  	
  15.55

  	
  %

  	
  10.47

  	
  %

  
	
  Bid Category E: ROR < 1.00%

  	
   

  	
  125,204

  	
   

  	
  911

  	
   

  	
  0.73

  	
  %

  	
  4.64

  	
  %

  	
  1.66

  	
  %

  
	
   

  	
   

  	
  897,254

  	
   

  	
  28,618

  	
   

  	
  3.19

  	
  %

  	
  33.24

  	
  %

  	
  52.13

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Materials

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bid Category A: ROR>=5.60%

  	
   

  	
  16,350

  	
   

  	
  2,457

  	
   

  	
  15.03

  	
  %

  	
  0.61

  	
  %

  	
  4.48

  	
  %

  
	
  Bid Category B: > 5.60% > ROR >=
  3.80%

  	
   

  	
  76,532

  	
   

  	
  3,588

  	
   

  	
  4.69

  	
  %

  	
  2.84

  	
  %

  	
  6.54

  	
  %

  
	
  Bid Category C: > 3.80% > ROR >=
  2.00%

  	
   

  	
  62,870

  	
   

  	
  1,499

  	
   

  	
  2.38

  	
  %

  	
  2.33

  	
  %

  	
  2.73

  	
  %

  
	
  Bid Category D: > 2.00% > ROR >=
  1.00%

  	
   

  	
  124,785

  	
   

  	
  1,679

  	
   

  	
  1.35

  	
  %

  	
  4.62

  	
  %

  	
  3.06

  	
  %

  
	
  Bid Category E: ROR < 1.00%

  	
   

  	
  89,869

  	
   

  	
  730

  	
   

  	
  0.81

  	
  %

  	
  3.33

  	
  %

  	
  1.33

  	
  %

  
	
   

  	
   

  	
  370,406

  	
   

  	
  9,954

  	
   

  	
  2.69

  	
  %

  	
  13.72

  	
  %

  	
  18.13

  	
  %

  
	
  Electrical

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bid Category A: ROR>=5.60%

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  
	
  Bid Category B: > 5.60% > ROR >=
  3.80%

  	
   

  	
  22,334

  	
   

  	
  1,021

  	
   

  	
  4.57

  	
  %

  	
  0.83

  	
  %

  	
  1.86

  	
  %

  
	
  Bid Category C: > 3.80% > ROR >=
  2.00%

  	
   

  	
  179,045

  	
   

  	
  5,263

  	
   

  	
  2.94

  	
  %

  	
  6.63

  	
  %

  	
  9.59

  	
  %

  
	
  Bid Category D: > 2.00% > ROR >=
  1.00%

  	
   

  	
  477,581

  	
   

  	
  6,106

  	
   

  	
  1.28

  	
  %

  	
  17.69

  	
  %

  	
  11.12

  	
  %

  
	
  Bid Category E: ROR < 1.00%

  	
   

  	
  752,884

  	
   

  	
  3,931

  	
   

  	
  0.52

  	
  %

  	
  27.89

  	
  %

  	
  7.16

  	
  %

  
	
   

  	
   

  	
  1,431,845

  	
   

  	
  16,322

  	
   

  	
  1.14

  	
  %

  	
  53.04

  	
  %

  	
  29.73

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL

  	
   

  	
  2,699,504

  	
   

  	
  54,893

  	
   

  	
  2.03

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  

 

29.12

 

Table III-2g

FY 2000* Adjusted Acquisition Values,
Proceeds, and RORs for CV-2 Product Subpool**

Alaska, Guam, Hawaii, and Puerto Rico

Categorized by Bid Category and Product Group

 

	
   

  	
   

  	
  FY 2000*

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Adjusted

  	
   

  	
   

  	
   

  	
  DRMS

  	
   

  	
  Percentage of

  	
   

  
	
   

  	
   

  	
  Acquisition

  	
   

  	
  Proceeds

  	
   

  	
  Adjusted

  	
   

  	
  FY 2000*

  	
   

  
	
  Bid Category, Product Group

  	
   

  	
  Value ($000s)

  	
   

  	
  ($000s)

  	
   

  	
  Gross ROR

  	
   

  	
  Adj. Acq. Value

  	
   

  	
  Proceeds

  	
   

  
	
  Bid
  Category A: ROR >=5.6%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Aircraft Related, Misc. Ground and Shop

  	
   

  	
  13

  	
   

  	
  1

  	
   

  	
  9.08

  	
  %

  	
  0.01

  	
  %

  	
  0.04

  	
  %

  
	
  Vehicle

  	
   

  	
  5,587

  	
   

  	
  395

  	
   

  	
  7.06

  	
  %

  	
  5.62

  	
  %

  	
  14.46

  	
  %

  
	
  Textiles, Clothing, Footwear, Etc.

  	
   

  	
  1,201

  	
   

  	
  139

  	
   

  	
  11.56

  	
  %

  	
  1.21

  	
  %

  	
  5.09

  	
  %

  
	
  Furniture & Household Related

  	
   

  	
  2,237

  	
   

  	
  167

  	
   

  	
  7.45

  	
  %

  	
  2.25

  	
  %

  	
  6.11

  	
  %

  
	
  Electrical (CV-2)

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  
	
  Medical Related

  	
   

  	
  602

  	
   

  	
  47

  	
   

  	
  7.81

  	
  %

  	
  0.61

  	
  %

  	
  1.72

  	
  %

  
	
  FSCs from CV-1 but Demil B/Q

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  
	
  Other

  	
   

  	
  893

  	
   

  	
  70

  	
   

  	
  7.86

  	
  %

  	
  0.90

  	
  %

  	
  2.57

  	
  %

  
	
  Equipment (CV-1)

  	
   

  	
  5,259

  	
   

  	
  456

  	
   

  	
  8.66

  	
  %

  	
  5.29

  	
  %

  	
  16.70

  	
  %

  
	
  Materials (CV-1)

  	
   

  	
  665

  	
   

  	
  84

  	
   

  	
  12.56

  	
  %

  	
  0.67

  	
  %

  	
  3.06

  	
  %

  
	
  Electrical (CV-1)

  	
   

  	
  71

  	
   

  	
  4

  	
   

  	
  6.17

  	
  %

  	
  0.07

  	
  %

  	
  0.16

  	
  %

  
	
  Bid
  Category A

  	
   

  	
  $

  	
  16,527

  	
   

  	
  $

  	
  1,362

  	
   

  	
  8.24

  	
  %

  	
  16.63

  	
  %

  	
  49.91

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bid
  Category B: >5.6% > ROR >=3.8%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Aircraft Related, Misc. Ground and Shop

  	
   

  	
  1,024

  	
   

  	
  49

  	
   

  	
  4.82

  	
  %

  	
  1.03

  	
  %

  	
  1.81

  	
  %

  
	
  Vehicles

  	
   

  	
  1,668

  	
   

  	
  87

  	
   

  	
  5.24

  	
  %

  	
  1.68

  	
  %

  	
  3.20

  	
  %

  
	
  Textiles, Clothing, Footwear, Etc.

  	
   

  	
  2,980

  	
   

  	
  139

  	
   

  	
  4.65

  	
  %

  	
  3.00

  	
  %

  	
  5.08

  	
  %

  
	
  Furniture & Household Related

  	
   

  	
  1,315

  	
   

  	
  66

  	
   

  	
  4.99

  	
  %

  	
  1.32

  	
  %

  	
  2.41

  	
  %

  
	
  Electrical (CV-2)

  	
   

  	
  55

  	
   

  	
  2

  	
   

  	
  4.00

  	
  %

  	
  0.06

  	
  %

  	
  0.08

  	
  %

  
	
  Medical Related

  	
   

  	
  413

  	
   

  	
  17

  	
   

  	
  4.19

  	
  %

  	
  0.42

  	
  %

  	
  0.63

  	
  %

  
	
  FSCs from CV-1 but Demil B/Q

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  
	
  Other

  	
   

  	
  557

  	
   

  	
  29

  	
   

  	
  5.17

  	
  %

  	
  0.56

  	
  %

  	
  1.05

  	
  %

  
	
  Equipment (CV-1)

  	
   

  	
  872

  	
   

  	
  39

  	
   

  	
  4.51

  	
  %

  	
  0.88

  	
  %

  	
  1.44

  	
  %

  
	
  Materials (CV-1)

  	
   

  	
  119

  	
   

  	
  5

  	
   

  	
  4.04

  	
  %

  	
  0.12

  	
  %

  	
  0.18

  	
  %

  
	
  Electrical (CV-1)

  	
   

  	
  115

  	
   

  	
  6

  	
   

  	
  5.34

  	
  %

  	
  0.12

  	
  %

  	
  0.22

  	
  %

  
	
  Bid
  Category B

  	
   

  	
  $

  	
  9,118

  	
   

  	
  $

  	
  440

  	
   

  	
  4.82

  	
  %

  	
  9.17

  	
  %

  	
  16.11

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bid
  Category C: 3.8% > ROR >=2%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Aircraft Related, Misc. Ground and Shop

  	
   

  	
  191

  	
   

  	
  5

  	
   

  	
  2.83

  	
  %

  	
  0.19

  	
  %

  	
  0.20

  	
  %

  
	
  Vehicles

  	
   

  	
  7,828

  	
   

  	
  180

  	
   

  	
  2.29

  	
  %

  	
  7.88

  	
  %

  	
  6.58

  	
  %

  
	
  Textiles, Clothing, Footwear, Etc.

  	
   

  	
  842

  	
   

  	
  29

  	
   

  	
  3.44

  	
  %

  	
  0.85

  	
  %

  	
  1.06

  	
  %

  
	
  Furniture & Household Related

  	
   

  	
  20

  	
   

  	
  1

  	
   

  	
  3.42

  	
  %

  	
  0.02

  	
  %

  	
  0.02

  	
  %

  
	
  Electrical (CV-2)

  	
   

  	
  30

  	
   

  	
  1

  	
   

  	
  2.05

  	
  %

  	
  0.03

  	
  %

  	
  0.02

  	
  %

  
	
  Medical Related

  	
   

  	
  2,315

  	
   

  	
  53

  	
   

  	
  2.29

  	
  %

  	
  2.33

  	
  %

  	
  1.95

  	
  %

  
	
  FSCs from CV-1 but Demil B/Q

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  
	
  Other

  	
   

  	
  744

  	
   

  	
  21

  	
   

  	
  2.82

  	
  %

  	
  0.75

  	
  %

  	
  0.77

  	
  %

  
	
  Equipment (CV-1)

  	
   

  	
  2,103

  	
   

  	
  62

  	
   

  	
  2.94

  	
  %

  	
  2.12

  	
  %

  	
  2.27

  	
  %

  
	
  Materials (CV-1)

  	
   

  	
  152

  	
   

  	
  5

  	
   

  	
  3.18

  	
  %

  	
  0.15

  	
  %

  	
  0.18

  	
  %

  
	
  Electrical (CV-1)

  	
   

  	
  4,880

  	
   

  	
  162

  	
   

  	
  3.32

  	
  %

  	
  4.91

  	
  %

  	
  5.94

  	
  %

  
	
  Bid Category
  C

  	
   

  	
  $

  	
  19,105

  	
   

  	
  $

  	
  518

  	
   

  	
  2.71

  	
  %

  	
  19.22

  	
  %

  	
  18.98

  	
  %

  

 

*                 Data for FY 2000 are annualized based
on 10 months.

**          Includes CV-1 FSCs with Demil A, Since they
are eligible for these locations. (Product Groups for CV-1 are indicated in parentheses.
Electrical has two groups.)

 

29.13

 

Table III-2g

FY 2000*
Adjusted Acquisition Values, Proceeds and RORs for CV-2 Product Subpool**

Alaska, Guam, Hawaii, and Puerto Rico

Categorized by Bid Category and Product Group

 

	
   

  	
   

  	
  FY 2000*

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Adjusted

  	
   

  	
   

  	
   

  	
  DRMS

  	
   

  	
  Percentage of

  	
   

  
	
   

  	
   

  	
  Acquisition

  	
   

  	
  Proceeds

  	
   

  	
  Adjusted

  	
   

  	
  FY 2000*

  	
   

  
	
  Bid
  Category, Product Group

  	
   

  	
  Value ($000s)

  	
   

  	
  ($000s)

  	
   

  	
  Gross ROR

  	
   

  	
  Adj. Acq. Value

  	
   

  	
  Proceeds

  	
   

  
	
  Bid Category D: 2% > ROR >= 1%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Aircraft Related, Misc. Ground and Shop

  	
   

  	
  551

  	
   

  	
  8

  	
   

  	
  1.46

  	
  %

  	
  0.55

  	
  %

  	
  0.29

  	
  %

  
	
  Vehicles

  	
   

  	
  660

  	
   

  	
  10

  	
   

  	
  1.57

  	
  %

  	
  0.66

  	
  %

  	
  0.38

  	
  %

  
	
  Textiles, Clothing, Footwear, Etc.

  	
   

  	
  557

  	
   

  	
  8

  	
   

  	
  1.44

  	
  %

  	
  0.56

  	
  %

  	
  0.29

  	
  %

  
	
  Furniture & Household Related

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  
	
  Electrical (CV-2)

  	
   

  	
  1,665

  	
   

  	
  18

  	
   

  	
  1.08

  	
  %

  	
  1.68

  	
  %

  	
  0.66

  	
  %

  
	
  Medical Related

  	
   

  	
  1,353

  	
   

  	
  17

  	
   

  	
  1.25

  	
  %

  	
  1.36

  	
  %

  	
  0.62

  	
  %

  
	
  FSCs from CV-1 but Demil B/Q

  	
   

  	
  109

  	
   

  	
  1

  	
   

  	
  1.22

  	
  %

  	
  0.11

  	
  %

  	
  0.05

  	
  %

  
	
  Other

  	
   

  	
  1,689

  	
   

  	
  30

  	
   

  	
  1.78

  	
  %

  	
  1.70

  	
  %

  	
  1.10

  	
  %

  
	
  Equipment (CV-1)

  	
   

  	
  2,972

  	
   

  	
  46

  	
   

  	
  1.55

  	
  %

  	
  2.99

  	
  %

  	
  1.68

  	
  %

  
	
  Materials (CV-1)

  	
   

  	
  250

  	
   

  	
  4

  	
   

  	
  1.44

  	
  %

  	
  0.25

  	
  %

  	
  0.13

  	
  %

  
	
  Electrical (CV-1)

  	
   

  	
  1,100

  	
   

  	
  17

  	
   

  	
  1.50

  	
  %

  	
  1.11

  	
  %

  	
  0.61

  	
  %

  
	
  Bid
  Category D

  	
   

  	
  $

  	
  10,906

  	
   

  	
  $

  	
  159

  	
   

  	
  1.46

  	
  %

  	
  10.97

  	
  %

  	
  5.82

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bid Category E: ROR <1%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Aircraft Related, Misc. Ground and Shop

  	
   

  	
  3,445

  	
   

  	
  19

  	
   

  	
  0.55

  	
  %

  	
  3.47

  	
  %

  	
  0.69

  	
  %

  
	
  Vehicles

  	
   

  	
  1,323

  	
   

  	
  6

  	
   

  	
  0.46

  	
  %

  	
  1.33

  	
  %

  	
  0.22

  	
  %

  
	
  Textiles, Clothing, Footwear, Etc.

  	
   

  	
  53

  	
   

  	
  0

  	
   

  	
  0.00

  	
  %

  	
  0.05

  	
  %

  	
  0.00

  	
  %

  
	
  Furniture & Household Related

  	
   

  	
  122

  	
   

  	
  1

  	
   

  	
  0.63

  	
  %

  	
  0.12

  	
  %

  	
  0.03

  	
  %

  
	
  Electrical (CV-2)

  	
   

  	
  7,743

  	
   

  	
  60

  	
   

  	
  0.77

  	
  %

  	
  7.79

  	
  %

  	
  2.18

  	
  %

  
	
  Medical Related

  	
   

  	
  530

  	
   

  	
  3

  	
   

  	
  0.56

  	
  %

  	
  0.53

  	
  %

  	
  0.11

  	
  %

  
	
  FSCs from CV-1 but Demil B/Q

  	
   

  	
  2,733

  	
   

  	
  2

  	
   

  	
  0.07

  	
  %

  	
  2.75

  	
  %

  	
  0.07

  	
  %

  
	
  Other

  	
   

  	
  909

  	
   

  	
  3

  	
   

  	
  0.34

  	
  %

  	
  0.91

  	
  %

  	
  0.11

  	
  %

  
	
  Equipment (CV-1)

  	
   

  	
  5,600

  	
   

  	
  35

  	
   

  	
  0.63

  	
  %

  	
  5.63

  	
  %

  	
  1.30

  	
  %

  
	
  Materials (CV-1)

  	
   

  	
  3,321

  	
   

  	
  16

  	
   

  	
  0.49

  	
  %

  	
  3.34

  	
  %

  	
  0.59

  	
  %

  
	
  Electrical (CV-1)

  	
   

  	
  17,963

  	
   

  	
  106

  	
   

  	
  0.59

  	
  %

  	
  18.07

  	
  %

  	
  3.87

  	
  %

  
	
  Bid
  Category E

  	
   

  	
  $

  	
  43,741

  	
   

  	
  $

  	
  250

  	
   

  	
  0.57

  	
  %

  	
  44.01

  	
  %

  	
  9.18

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL

  	
   

  	
  $

  	
  99,397

  	
   

  	
  $

  	
  2,729

  	
   

  	
  2.75

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  
															

 

*                 Data for FY 2000 are annualized based
on 10 months.

**          Includes CV-1 FSCs with Demil A, since they
are eligible for these locations. (Product Groups for CV-1 are indicated in
parentheses. Electrical has two groups.)

 

29.14

 

Table III-2h

FY 2000* Adjusted Values, Proceeds and RORs for
CV-2 Product Subpool**

Alaska, Guam, Hawaii, Puerto Rico

Categorized by Product Group and Bid Category

 

	
   

  	
   

  	
  FY 2000*

  	
   

  	
  Percentage of

  	
   

  
	
   

  	
   

  	
  Adjusted

  	
   

  	
   

  	
   

  	
  DRMS

  	
   

  	
  FY 2000*

  	
   

  
	
   

  	
   

  	
  Acquisition

  	
   

  	
  Proceeds

  	
   

  	
  Adjusted

  	
   

  	
  Product Group

  	
   

  
	
  Product
  Group, Bid Category

  	
   

  	
  Value ($000s)

  	
   

  	
  ($000s)

  	
   

  	
  Gross ROR

  	
   

  	
  Adj. Acq. Value

  	
   

  	
  Proceeds

  	
   

  
	
  Aircraft Related, Misc. Ground and Shop

  	
   

  	
  $

  	
  6,223

  	
   

  	
  $

  	
  83

  	
   

  	
  1.59

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  
	
  Bid Category A: ROR >= 5.6%

  	
   

  	
  13

  	
   

  	
  1

  	
   

  	
  9.08

  	
  %

  	
  0.24

  	
  %

  	
  1.38

  	
  %

  
	
  Bid Category B: 5.6% > ROR >= 3.8%

  	
   

  	
  1,024

  	
   

  	
  49

  	
   

  	
  4.82

  	
  %

  	
  19.60

  	
  %

  	
  59.55

  	
  %

  
	
  Bid Category C: 3.8% > ROR >= 2%

  	
   

  	
  191

  	
   

  	
  5

  	
   

  	
  2.83

  	
  %

  	
  3.66

  	
  %

  	
  6.53

  	
  %

  
	
  Bid Category D: 2% > ROR >= 1%

  	
   

  	
  551

  	
   

  	
  8

  	
   

  	
  1.46

  	
  %

  	
  10.55

  	
  %

  	
  9.70

  	
  %

  
	
  Bid Category E: ROR < 1%

  	
   

  	
  3,445

  	
   

  	
  19

  	
   

  	
  0.55

  	
  %

  	
  65.95

  	
  %

  	
  22.64

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Vehicles

  	
   

  	
  $

  	
  17,066

  	
   

  	
  $

  	
  678

  	
   

  	
  3.97

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  
	
  Bid Category A: ROR >= 5.6%

  	
   

  	
  5,587

  	
   

  	
  395

  	
   

  	
  7.06

  	
  %

  	
  32.74

  	
  %

  	
  58.21

  	
  %

  
	
  Bid Category B: 5.6% > ROR >= 3.8%

  	
   

  	
  1,668

  	
   

  	
  87

  	
   

  	
  5.24

  	
  %

  	
  9.78

  	
  %

  	
  12.89

  	
  %

  
	
  Bid Category C: 3.8% > ROR >= 2%

  	
   

  	
  7,828

  	
   

  	
  180

  	
   

  	
  2.29

  	
  %

  	
  45.87

  	
  %

  	
  26.48

  	
  %

  
	
  Bid Category D: 2% > ROR >= 1%

  	
   

  	
  660

  	
   

  	
  10

  	
   

  	
  1.57

  	
  %

  	
  3.87

  	
  %

  	
  1.53

  	
  %

  
	
  Bid Category E: ROR < 1%

  	
   

  	
  1,323

  	
   

  	
  6

  	
   

  	
  0.46

  	
  %

  	
  7.75

  	
  %

  	
  0.89

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Textiles, Clothing, Footwear, Etc.

  	
   

  	
  $

  	
  5,633

  	
   

  	
  $

  	
  314

  	
   

  	
  5.58

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  
	
  Bid Category A: ROR >= 5.6%

  	
   

  	
  1,201

  	
   

  	
  139

  	
   

  	
  11.56

  	
  %

  	
  21.32

  	
  %

  	
  44.15

  	
  %

  
	
  Bid Category B: 5.6% > ROR >= 3.8%

  	
   

  	
  2,980

  	
   

  	
  139

  	
   

  	
  4.65

  	
  %

  	
  52.90

  	
  %

  	
  44.09

  	
  %

  
	
  Bid Category C: 3.8% > ROR >= 2%

  	
   

  	
  842

  	
   

  	
  29

  	
   

  	
  3.44

  	
  %

  	
  14.95

  	
  %

  	
  9.21

  	
  %

  
	
  Bid Category D: 2% > ROR >= 1%

  	
   

  	
  557

  	
   

  	
  8

  	
   

  	
  1.44

  	
  %

  	
  9.89

  	
  %

  	
  2.55

  	
  %

  
	
  Bid Category E: ROR < 1%

  	
   

  	
  53

  	
   

  	
  0

  	
   

  	
  0.00

  	
  %

  	
  0.94

  	
  %

  	
  0.00

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Furniture & Household Related

  	
   

  	
  $

  	
  3,694

  	
   

  	
  $

  	
  234

  	
   

  	
  6.33

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  
	
  Bid Category A: ROR >= 5.6%

  	
   

  	
  2,237

  	
   

  	
  167

  	
   

  	
  7.45

  	
  %

  	
  60.57

  	
  %

  	
  71.31

  	
  %

  
	
  Bid Category B: 5.6% > ROR >= 3.8%

  	
   

  	
  1,315

  	
   

  	
  66

  	
   

  	
  4.99

  	
  %

  	
  35.60

  	
  %

  	
  28.08

  	
  %

  
	
  Bid Category C: 3.8% > ROR >= 2%

  	
   

  	
  20

  	
   

  	
  1

  	
   

  	
  3.42

  	
  %

  	
  0.53

  	
  %

  	
  0.29

  	
  %

  
	
  Bid Category D: 2% > ROR >= 1%

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  
	
  Bid Category E: ROR < 1%

  	
   

  	
  122

  	
   

  	
  1

  	
   

  	
  0.63

  	
  %

  	
  3.30

  	
  %

  	
  0.33

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Electrical (CV-2)

  	
   

  	
  $

  	
  9,493

  	
   

  	
  $

  	
  80

  	
   

  	
  0.85

  	
  %

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  
	
  Bid Category A: ROR >= 5.6%

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  
	
  Bid Category B: 5.6% > ROR >= 3.8%

  	
   

  	
  55

  	
   

  	
  2

  	
   

  	
  0

  	
   

  	
  0.58

  	
  %

  	
  2.74

  	
  %

  
	
  Bid Category C: 3.8% > ROR >= 2%

  	
   

  	
  30

  	
   

  	
  1

  	
   

  	
  0

  	
   

  	
  0.32

  	
  %

  	
  0.78

  	
  %

  
	
  Bid Category D: 2% > ROR >= 1%

  	
   

  	
  1,665

  	
   

  	
  18

  	
   

  	
  0

  	
   

  	
  17.54

  	
  %

  	
  22.37

  	
  %

  
	
  Bid Category E: ROR < 1%

  	
   

  	
  7,743

  	
   

  	
  60

  	
   

  	
  0

  	
   

  	
  81.56

  	
  %

  	
  74.11

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Medical Related

  	
   

  	
  $

  	
  5,213

  	
   

  	
  $

  	
  137

  	
   

  	
  $

  	
  0

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  
	
  Bid Category A: ROR >= 5.6%

  	
   

  	
  602

  	
   

  	
  47

  	
   

  	
  0

  	
   

  	
  11.56

  	
  %

  	
  34.28

  	
  %

  
	
  Bid Category B: 5.6% > ROR >= 3.8%

  	
   

  	
  413

  	
   

  	
  17

  	
   

  	
  0

  	
   

  	
  7.92

  	
  %

  	
  12.59

  	
  %

  
	
  Bid Category C: 3.8% > ROR >= 2%

  	
   

  	
  2,315

  	
   

  	
  53

  	
   

  	
  0

  	
   

  	
  44.41

  	
  %

  	
  38.70

  	
  %

  
	
  Bid Category D: 2% > ROR >= 1%

  	
   

  	
  1,353

  	
   

  	
  17

  	
   

  	
  0

  	
   

  	
  25.95

  	
  %

  	
  12.28

  	
  %

  
	
  Bid Category E: ROR < 1%

  	
   

  	
  530

  	
   

  	
  3

  	
   

  	
  0

  	
   

  	
  10.17

  	
  %

  	
  2.15

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FSCs from CV-1 but Demil B/Q

  	
   

  	
  $

  	
  2,842

  	
   

  	
  $

  	
  3

  	
   

  	
  $

  	
  0

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  
	
  Bid Category A: ROR >= 5.6%

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  
	
  Bid Category B: 5.6% > ROR >= 3.8%

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  
	
  Bid Category C: 3.8% > ROR >= 2%

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  
	
  Bid Category D: 2% > ROR >= 1%

  	
   

  	
  109

  	
   

  	
  1

  	
   

  	
  0

  	
   

  	
  3.85

  	
  %

  	
  41.96

  	
  %

  
	
  Bid Category E: ROR < 1%

  	
   

  	
  2,733

  	
   

  	
  2

  	
   

  	
  0

  	
   

  	
  96.15

  	
  %

  	
  58.04

  	
  %

  

 

*                 Data for FY 2000 are annualized based
on 10 months.

**          Includes CV-1 FSCs with Demil A, since they
are eligible for these locations. (Product Groups for CV-1 are indicated in parentheses.
Electrical has two groups.)

 

29.15

 

Table III-2h

FY 2000* Adjusted Acquisition Values,
Proceeds and RORs for CV-2 Products Subpool**

Alaska, Guam, Hawaii, Puerto Rico

Categorized by Product Group and Bid Category

 

	
   

  	
   

  	
  FY 2000*

  	
   

  	
  Percentage of

  	
   

  
	
   

  	
   

  	
  Adjusted

  	
   

  	
   

  	
   

  	
  DRMS

  	
   

  	
  FY 2000*

  	
   

  
	
   

  	
   

  	
  Acquisition

  	
   

  	
  Proceeds

  	
   

  	
  Adjusted

  	
   

  	
  Product Group

  	
   

  
	
  Product Group, Bid Category

  	
   

  	
  Value ($000s)

  	
   

  	
  ($000s)

  	
   

  	
  Gross ROR

  	
   

  	
  Adj. Acq.Value

  	
   

  	
  Proceeds

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other

  	
   

  	
  $

  	
  4,792

  	
   

  	
  $

  	
  153

  	
   

  	
  $

  	
  0

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  
	
  Bid Category A: ROR >= 5.6%

  	
   

  	
  893

  	
   

  	
  70

  	
   

  	
  0

  	
   

  	
  18.63

  	
  %

  	
  45.83

  	
  %

  
	
  Bid Category B: 5.6% > ROR >= 3.8%

  	
   

  	
  557

  	
   

  	
  29

  	
   

  	
  0

  	
   

  	
  11.61

  	
  %

  	
  18.79

  	
  %

  
	
  Bid Category C: 3.8% > ROR >= 2%

  	
   

  	
  744

  	
   

  	
  21

  	
   

  	
  0

  	
   

  	
  15.53

  	
  %

  	
  13.71

  	
  %

  
	
  Bid Category D: 2% > ROR >= 1%

  	
   

  	
  1,689

  	
   

  	
  30

  	
   

  	
  0

  	
   

  	
  35.25

  	
  %

  	
  19.62

  	
  %

  
	
  Bid Category E: ROR < 1%

  	
   

  	
  909

  	
   

  	
  3

  	
   

  	
  0

  	
   

  	
  18.97

  	
  %

  	
  2.05

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Equipment (CV-1)

  	
   

  	
  $

  	
  16,806

  	
   

  	
  $

  	
  638

  	
   

  	
  $

  	
  0

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  
	
  Bid Category A: ROR >= 5.6%

  	
   

  	
  5,259

  	
   

  	
  456

  	
   

  	
  0

  	
   

  	
  31.29

  	
  %

  	
  71.39

  	
  %

  
	
  Bid Category B: 5.6% > ROR >= 3.8%

  	
   

  	
  872

  	
   

  	
  39

  	
   

  	
  0

  	
   

  	
  5.19

  	
  %

  	
  6.17

  	
  %

  
	
  Bid Category C: 3.8% > ROR >= 2%

  	
   

  	
  2,103

  	
   

  	
  62

  	
   

  	
  0

  	
   

  	
  12.51

  	
  %

  	
  9.69

  	
  %

  
	
  Bid Category D: 2% > ROR >= 1%

  	
   

  	
  2,972

  	
   

  	
  46

  	
   

  	
  0

  	
   

  	
  17.69

  	
  %

  	
  7.20

  	
  %

  
	
  Bid Category E: ROR < 1%

  	
   

  	
  5,600

  	
   

  	
  35

  	
   

  	
  0

  	
   

  	
  33.32

  	
  %

  	
  5.56

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Materials (CV-1)

  	
   

  	
  $

  	
  4,506

  	
   

  	
  $

  	
  113

  	
   

  	
  $

  	
  0

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  
	
  Bid Category A: ROR >= 5.6%

  	
   

  	
  665

  	
   

  	
  84

  	
   

  	
  0

  	
   

  	
  14.75

  	
  %

  	
  73.92

  	
  %

  
	
  Bid Category B: 5.6% > ROR >= 3.8%

  	
   

  	
  119

  	
   

  	
  5

  	
   

  	
  0

  	
   

  	
  2.65

  	
  %

  	
  4.26

  	
  %

  
	
  Bid Category C: 3.8% > ROR >= 2%

  	
   

  	
  152

  	
   

  	
  5

  	
   

  	
  0

  	
   

  	
  3.36

  	
  %

  	
  4.26

  	
  %

  
	
  Bid Category D: 2% > ROR >= 1%

  	
   

  	
  250

  	
   

  	
  4

  	
   

  	
  0

  	
   

  	
  5.55

  	
  %

  	
  3.20

  	
  %

  
	
  Bid Category E: ROR < 1%

  	
   

  	
  3,321

  	
   

  	
  16

  	
   

  	
  0

  	
   

  	
  73.69

  	
  %

  	
  14.37

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Electrical (CV-1)

  	
   

  	
  $

  	
  24,128

  	
   

  	
  $

  	
  295

  	
   

  	
  $

  	
  0

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  
	
  Bid Category A: ROR >= 5.6%

  	
   

  	
  71

  	
   

  	
  4

  	
   

  	
  0

  	
   

  	
  0.29

  	
  %

  	
  1.48

  	
  %

  
	
  Bid Category B: 5.6% > ROR >= 3.8%

  	
   

  	
  115

  	
   

  	
  6

  	
   

  	
  0

  	
   

  	
  0.48

  	
  %

  	
  2.08

  	
  %

  
	
  Bid Category C: 3.8% > ROR >= 2%

  	
   

  	
  4,880

  	
   

  	
  162

  	
   

  	
  0

  	
   

  	
  20.22

  	
  %

  	
  55.01

  	
  %

  
	
  Bid Category D: 2% > ROR >= 1%

  	
   

  	
  1,100

  	
   

  	
  17

  	
   

  	
  0

  	
   

  	
  4.56

  	
  %

  	
  5.61

  	
  %

  
	
  Bid Category E: ROR < 1%

  	
   

  	
  17,963

  	
   

  	
  106

  	
   

  	
  0

  	
   

  	
  74.45

  	
  %

  	
  35.82

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL

  	
   

  	
  $

  	
  99,397

  	
   

  	
  $

  	
  2,729

  	
   

  	
  2.75

  	
  %

  	
   

  	
   

  	
   

  	
   

  

 

*                                         Data for FY
2000 are annualized based on 10 months.

**                                  Includes CV-1 FSCs
with Demil A, since they are eligible for these locations.  (Product Groups for CV-1 are indicated in
parentheses.  Electrical has two groups.)

 

29.16

 

1998 (Tables III-2c and III-2f)(11). The
corresponding data for the CV-2 Items sold at Delivery Points outside of CONUS
in FY 2000 (through July) arc presented to Tables III-2g and III-2h.

 

Figures III-1a-c below present the general pattern of the DRMS Adjusted
Gross RORs for each of the five Bid Categories over each of the three Product
Subpools for over the fiscal years 1985-2000.

 

DRMS Adjusted Gross RORs and other data for the fiscal years 1985-2000
by FSC and DEMIL Code will be included in the data supplement in machine
readable format.

 

B.                      BID
PROCESS

 

A bid will consist of thirteen (13) “Bid Percentages” specified by the
offeror, with one such Bid Percentage applicable to each Product Subpool Bid
Category. After the contract is awarded, the Contractor’s Purchase Price for an
item of Property will be determined by multiplying (i) the applicable Bid
Percentage for the Product Subpool Bid Category in which the Property is listed,
times (ii) the item’s Acquisition Value. The combination of FSC, DEMIL
Code and location determines the Product Subpool Bid Category to which the
Property belongs.

 

The winning bid will be determined with reference to a hypothetical
“Bid Schedule Pool” of Property as follows.

 

(1)                                  The
“Item Bid Page” in Attachment A of the accompanying “Bidding Instructions and
Bid Forms” is for formally registering the offeror’s Bid Percentages.

 

(2)                                  Table
III-3 below presents the “Bid Schedule Pool.” The Bid Schedule Pool,
which is based on trends in DRMS historical data by Product Subpool Bid
Category, assigns a “Product Subpool Acquisition Value” to each Product Subpool
Bid Category.

 

(11) We do not present 1999 or 2000 data here because during those
fiscal years, the CV-1 Purchaser had responsibility for almost all of CV-1
product flow (the exception being the initial six month phase-in period during
which product flow was gradually shifted from DRMS to the CV-1 Purchaser).

 

30

 

 

 

Figure III-1a

Adjusted Gross ROR by Bid Category

CV-2 DEMIL A

Fiscal Years 1985 - 2000*

 

 

* Data for FY 2000 are limited
to 10 months through July.

 

30.1

 

Figure III-1b

Adjusted Gross ROR by Bid Category

CV-2 DEMIL B or Q

Fiscal
Years 1986 - 2000*

 

 

 

* Data for FY 2000 are limited
to 10 months through July.

 

 

30.2

 

Figure III-1c

Adjusted Gross ROR by Bid Category

CV-1 Product Pool

Fiscal Years 1985 - 1998*

 

 

 

 

 

30.3

 

TABLE
III-3

Bid Schedule Pool

 

	
  Bid Category

  	
   

  	
  Product

  Subpool

  Acquisition Value

  for CV-2 Items,

  DEMIL A

  	
   

  	
  Product

  Subpool

  Acquisition Value

  for CV-2 Items,

  DEMIL B or Q

  	
   

  	
  Product

  Subpool

  Acquisition Value

  for CV-1 Items*

  	
   

  
	
  A

  	
   

  	
  $

  	
  50,000,000

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  50,000,000

  	
   

  
	
  B

  	
   

  	
  $

  	
  100,000,000

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  100,000,000

  	
   

  
	
  C

  	
   

  	
  $

  	
  150,000,000

  	
   

  	
  $

  	
  50,000,000

  	
   

  	
  $

  	
  200,000,000

  	
   

  
	
  D

  	
   

  	
  $

  	
  100,000,000

  	
   

  	
  $

  	
  600,000,000

  	
   

  	
  $

  	
  500,000,000

  	
   

  
	
  E

  	
   

  	
  $

  	
  600,000,000

  	
   

  	
  $

  	
  1,000,000,000

  	
   

  	
  $

  	
  500,000,000

  	
   

  
	
  Total

  	
   

  	
  $

  	
  1,000,000,000

  	
   

  	
  $

  	
  1,650,000,000

  	
   

  	
  $

  	
  1,350,000,000

  	
   

  

 

*All CV-1 Items are DEMIL Code A.

 

(3)                                 DRMS will multiply each of the thirteen Bid
Percentages from the Item Bid Page by (1) the respective Product
Subpool Acquisition Value in Table III-3 above and (2) the respective “Product
Subpool Weight” (100% for CV-2 DEMIL A items, 100% for CV-2 DEMIL B or Q items,
and 50% for CV-1 Items) and add the resulting amounts together to determine a
“Bid Price” for the Bid Schedule Pool.(12)

 

(4)                                 The winning bidder will be determined as that
bidder with the highest Bid Price for the Bid Schedule Pool.

 

(5)                                 Table III-4 below presents a worksheet for
calculating the Bid Price. (This table is identical to the Item Bid Worksheet
in Attachment A of the accompanying Bidding Instructions and Bid Forms.)

 

(12) The Product Subpool Weight for CV-1 Property is lower because
referral of CV-1 Property is not scheduled to begin, if at all, until
September of 2003.

 

31

 

Table
III-4

Item
Bid Worksheet

 

	
  Column 1

  	
   

  	
  Column 2

  	
   

  	
  Column 3

  	
   

  	
  Column 4

  	
   

  	
  Column 5

  	
   

  	
  Column 6

  	
   

  	
  Column 7

  	
   

  
	
  Product

  Subpool

  	
   

  	
  Bid

  Category

  	
   

  	
  Product Subpool

  Acquisition Value

  	
   

  	
  Bid Percentage

  (Entered on Item Bid

  Page)

  	
   

  	
  Product

  Subpool

  Weight

  	
   

  	
  Bid Price Component

  (Col 3 X Col. 4 X Col. 5)

  	
   

  	
  Total Bid Price

  	
   

  
	
  CV-2
  DEMIL A

  	
   

  	
  A

  	
   

  	
  $

  	
  50,000,000

  	
   

  	
   

  	
  %

  	
   

  	
   

  	
  $ 

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  B

  	
   

  	
  $

  	
  100,000,000

  	
   

  	
   

  	
  %

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  C

  	
   

  	
  $

  	
  150,000,000

  	
   

  	
   

  	
  %

  	
  100,0

  	
  %

  	
  $

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  D

  	
   

  	
  $

  	
  100,000,000

  	
   

  	
   

  	
  %

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  E

  	
   

  	
  $

  	
  600,000,000

  	
   

  	
   

  	
  %

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  
	
  CV-2 DEMIL
  A

  	
   

  	
  Total

  	
   

  	
  $

  	
  1,000,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CV-2 DEMIL

  B or Q

  	
   

  	
  A*

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  B*

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
   

  	
   

  	
  N/A

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  C  

  	
   

  	
  $

  	
  50,000,000

  	
   

  	
   

  	
  %

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  D 

  	
   

  	
  $

  	
  600,000,000

  	
   

  	
   

  	
  %

  	
  100.0

  	
  %

  	
  $

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  E  

  	
   

  	
  $

  	
  1,000,000,000

  	
   

  	
   

  	
  %

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  
	
  CV-2 DEMIL
  

  B or O

  	
   

  	
  Total

  	
   

  	
  $

  	
  1,650,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CV-1

  	
   

  	
  A

  	
   

  	
  $

  	
  50,000,000

  	
   

  	
   

  	
  %

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  B

  	
   

  	
  $

  	
  100,000,000

  	
   

  	
   

  	
  %

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  C

  	
   

  	
  $

  	
  200,000,000

  	
   

  	
   

  	
  %

  	
  50.0

  	
  %

  	
  $

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  D

  	
   

  	
  $

  	
  500,000,000

  	
   

  	
   

  	
  %

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  E

  	
   

  	
  $

  	
  500,000,000

  	
   

  	
   

  	
  %

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  
	
  CV-1

  	
   

  	
  Total

  	
   

  	
  $

  	
  1,350,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
   

  
	
  Grand
  Total

  	
   

  	
   

  	
   

  	
  $

  	
  4,000,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
   

  

 

To calculate the Bid Price that corresponds to the Bid Percentages
entered in the Item Bid Page:

 

Step 1:            Copy the 13 Bid
Percentages entered in your Item Bid Page (see Bidding Instructions and
Bid Forms) to Column 4 of this worksheet for each combination of Bid Category
and Product Subpool.

 

Step 2:            For each Bid Category
and Product Subpool combination, multiply the Product Subpool Acquisition Value
in Column 3 by the corresponding Bid Percentage in Column 4 and the Product
Subpool Weight in Column 5. (Convert percentages to decimal fractions for this
calculation by dividing them by 100.) For each row, write the dollar amount of
the resulting product in Column 6. 

 

Step 3:            Total the entries in
Column 6 and write the dollar amount of the resulting sum in the “Grand Total”
row of Column 7. This is the Bid Price that will be used to determine the
winning bidder.

 

*No DEMIL B or Q items are assigned to Bid Categories A or B.

 

32

 

C.       ILLUSTRATION
OF THE DETERMINATION OF THE WINNING BID

 

Assume that Bidder A, upon reviewing the
historic DRMS data, arrives at its bid taking into account the trends and
volatility in the DRMS data, the bidder’s expected cost of operations, its
required return to capital and its required profit margin consistent with the
risks involved. Accounting for these factors, Bidder A determines that it is
willing to bid the Hypothetical Bid Percentages specified in Table III-5.

 

Table III-5
Hypothetical Bid Percentages

 

	
  Product

  Subpool

  	
   

  	
  Bid

  Category

  	
   

  	
  Bidder A

  	
   

  	
  Bidder B

  	
   

  
	
   

  	
   

  	
  A

  	
   

  	
  0.5580

  	
  %

  	
  0.6138

  	
  %

  
	
   

  	
   

  	
  B

  	
   

  	
  0.2720

  	
  %

  	
  0.2448

  	
  %

  
	
  CV-2 DEMIL A

  	
   

  	
  C

  	
   

  	
  0.1680

  	
  %

  	
  0.1512

  	
  %

  
	
   

  	
   

  	
  D

  	
   

  	
  0.0840

  	
  %

  	
  0.0756

  	
  %

  
	
   

  	
   

  	
  E

  	
   

  	
  0.0250

  	
  %

  	
  0.0275

  	
  %

  
	
   

  	
   

  	
  A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  
	
   

  	
   

  	
  B

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  
	
  CV-2 DEMIL B
  or Q

  	
   

  	
  C

  	
   

  	
  0.2100

  	
  %

  	
  0.1890

  	
  %

  
	
   

  	
   

  	
  D

  	
   

  	
  0.0720

  	
  %

  	
  0.0648

  	
  %

  
	
   

  	
   

  	
  E

  	
   

  	
  0.0200

  	
  %

  	
  0.0220

  	
  %

  
	
   

  	
   

  	
  A

  	
   

  	
  0.8100

  	
  %

  	
  0.8910

  	
  %

  
	
   

  	
   

  	
  B

  	
   

  	
  0.2720

  	
  %

  	
  0.2448

  	
  %

  
	
  CV-1

  	
   

  	
  C

  	
   

  	
  0.1680

  	
  %

  	
  0.1512

  	
  %

  
	
   

  	
   

  	
  D

  	
   

  	
  0.0840

  	
  %

  	
  0.0756

  	
  %

  
	
   

  	
   

  	
  E

  	
   

  	
  0.0250

  	
  %

  	
  0.0275

  	
  %

  

 

Further, assume that Bidder B, upon reviewing
the same data and taking into account the same factors, determines that it is
willing to bid a somewhat different set of Hypothetical Bid Percentages also
specified in Table III-5. In particular, for all of the Product Subpools,
Bidder B’s Hypothetical Bid Percentages are higher than Bidder A’s for
Categories A and E but lower for Categories B, C and D.

 

Using the Item Bid Worksheet, Table III-4
above, to apply the Hypothetical Bid Percentages to the Bid Schedule Pool
to compute Bid Prices for Bidder A and Bidder B, yields the following results:

 

	
  Bidder A’s
  Bid Price:

  	
   

  	
  $

  	
  2,553,000

  	
   

  
	
  Bidder B’s
  Bid Price:

  	
   

  	
  $

  	
  2,476,500

  	
   

  

 

Thus, Bidder A is the winning bidder.

 

33

 

D.       ILLUSTRATIVE FINANCIAL MODEL

 

Tables
III-7(a) and III-7(b) below present two scenarios for a monthly
illustrative financial model of the proposed transaction with certain
assumptions listed at the beginning of each table.

 

Figures used in
these tables, and all other forward-looking figures in the IFB, are for
illustrative purposes only. DRMS cannot predict the flow of Property to be sold
under this contract and DRMS expressly disavows any implication to the
contrary. Moreover, historic DRMS operating data are not necessarily reliable
indicators of future Property deliveries under this contract, the quality or
resale value of such Property or future operating costs. DRMS does not make any
representation of any character concerning the Property to be sold hereunder.

 

The scenarios
in Tables III-7(a) and III-7(b) differ with respect to two
assumptions: (1) the annual decline in Acquisition Value of property
referred for sale to Purchaser, and (2) the assumed enhancement to the
Purchaser Gross ROR over DRMS. These differences are described in Table III-6 below.

 

Table
III-6

Assumption
Differences for Alternative Model Scenarios

 

	
  Assumption

  	
   

  	
  Table III-7(a)

  	
   

  	
  Table III-7(b)

  	
   

  
	
  Annual Decline in Acquisition Value of Property Referred for Sale to
  Purchaser

  	
   

  	
  7.00

  	
  %

  	
  5.00

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchaser

  	
   

  	
  Months 1-16

  	
   

  	
  0

  	
  %

  	
  10

  	
  %

  
	
  Enhancement
  of

  	
   

  	
  Months 17-30

  	
   

  	
  10

  	
  %

  	
  20

  	
  %

  
	
  DRMS
  Gross ROR

  	
   

  	
  Months 31+

  	
   

  	
  20

  	
  %

  	
  30

  	
  %

  

 

In both
scenarios, the Contractor’s Purchase Price is assumed to be equal to 20% of
DRMS Baseline Net Proceeds minus a risk discount of 30%. The Purchaser is also
assumed to have operating expenses equal to 80% of DRMS Baseline Expenses.

 

Figures III-9
and III-10 below present the profits to the Contractor for both scenarios
(Figure III-9 over the full seven year Performance Period (plus several months
for the Wind-Up) and Figure III-10 over the first 36 months of the Performance
Period).

 

34

 

ASSUMPTIONS AND PARAMETERS IX ILLUSTRATIVE 7 YEAR FINANCIAL
MODEL

Table
III-7(a)

 

Acquisition Value of Property Referred for Sale to Purchaser
(000s)

 

	
   

  	
   

  	
  Year 1

  	
   

  	
  Year 2

  	
   

  	
  Year 3

  	
   

  	
  Year 4

  	
   

  	
  Year 5

  	
   

  	
  Year 6

  	
   

  	
  Year 7

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CV-II Property

  	
   

  	
  $

  	
  2,540,316

  	
   

  	
  $

  	
  2,362,494

  	
   

  	
  $

  	
  2,197,120

  	
   

  	
  $

  	
  2,043,321

  	
   

  	
  $

  	
  1,900,289

  	
   

  	
  $

  	
  1,767,269

  	
   

  	
  $

  	
  1,643,560

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CV-I Property

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  1,319,450

  	
   

  	
  $

  	
  1,227,089

  	
   

  	
  $

  	
  1,141,192

  	
   

  	
  $

  	
  1,061,309

  	
   

  	
  $

  	
  987,017

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Referred

  	
   

  	
  $

  	
  2,540,316

  	
   

  	
  $

  	
  2,362,494

  	
   

  	
  $

  	
  3,516,570

  	
   

  	
  $

  	
  3,270,410

  	
   

  	
  $

  	
  3,041,481

  	
   

  	
  $

  	
  2,828,578

  	
   

  	
  $

  	
  2,630,577

  	
   

  

 

	
  Annual Decline In Acquisition Value of
  Property Referral for Sale to Purchaser 

  
	
  7,00

  	
  %

  	
   

  	
   

  

 

During the 1st year of operation, an increasing percentage of
the Property is Referred for Sale to Purchaser:

 

	
   

  	
   

  	
  Month 1

  	
   

  	
  Month 2

  	
   

  	
  Month 3

  	
   

  	
  Month 4

  	
   

  	
  Month 5

  	
   

  	
  Month 6

  	
   

  	
  Month 7

  	
   

  	
  Month 8

  	
   

  	
  Month 9

  	
   

  	
  Month 10

  	
   

  
	
  Phase-in percentages

  	
   

  	
  50

  	
  %

  	
  60

  	
  %

  	
  70

  	
  %

  	
  80

  	
  %

  	
  90

  	
  %

  	
  100

  	
  %

  	
  100

  	
  %

  	
  100

  	
  %

  	
  100

  	
  %

  	
  100

  	
  %

  

 

Acquisition Value of Property Sold by Purchaser

 

	
  Months

  	
   

  	
   

  
	
  1 - 3

  	
   

  	
  No Property
  sold while the Purchaser sets up operations

  
	
  4 - 6

  	
   

  	
  70% of the
  Acquisition Value of the Property Referred for Sale 3 months earlier.

  
	
  7 - 12

  	
   

  	
  85% of the
  Acquisition Value of the Property Referred for Sale 3 months earlier.

  
	
  13 - 85

  	
   

  	
  100% of the
  Acquisition Value of the Property Referred for Sale 3 months earlier.

  
	
  86

  	
   

  	
  50% of the
  Acquisition Value of the Property In Inventory,

  
	
  87

  	
   

  	
  100% of the
  Acquisition Value of the Property in Inventory.

  

 

DRMS Baseline Gross Proceeds

 

1.30% of Acquisition Value of the Property Referred for Sale

 

DRMS
Baseline Expenses

 

  50% of DRMS Baseline Gross Proceeds (equals 0.650% of
Acquistion Value Sold by Purchaser)

 

DRMS Baseline Net Proceeds

DRMS Baseline Gross Proceeds minus DRMS Baseline Expenses

 

Purchaser
Gross ROR

 

	
  Months

  	
   

  	
  DRMS Gross ROR

  	
   

  	
  Purchaser

  Enhancement

  	
   

  	
  Purchaser

  Gross ROR

  	
   

  
	
  1-16

  	
   

  	
  1.30

  	
  %

  	
  0

  	
  %

  	
  1.30

  	
  %

  
	
  17 - 30

  	
   

  	
  1.30

  	
  %

  	
  10

  	
  %

  	
  1.43

  	
  %

  
	
  31+

  	
   

  	
  1.30

  	
  %

  	
  20

  	
  %

  	
  1.56

  	
  %

  

 

Purchaser
Gross Proceeds

This is the product of (1) the Acquisition Value of Property Sold
by Purchaser and (2) Purchaser Gross ROR.

 

Total
Purchaser Expenses

Total Purchaser Expenses are the sum of start-up costs and Purchaser
Expenses.

 

Purchaser Expenses are based upon DRMS Baseline Expenses.

 

Purchaser Expenses equal:

80% of DRMS Baseline Expenses for the greater of the Acquisition Value
of

(a) Property Referred for Sate, or (b) Property
Sold

 

Purchaser Net Proceeds (Working Capital Advance)

Calculated as the difference between Purchaser Gross Proceeds and Total
Purchaser Expenses.

 

Purchaser Operating Cash Balance

Equate Total Purchaser Expenses for the following month

(starting in month 9 per contract requirements for Distribution
payments.)

 

Payment to DRMS for Property Referred for Sale

The Contractor’s Purchase Price is based upon:

 

	
  1.30

  	
  %

  	
  DRMS Gross
  ROR

  	
   

  
	
  50.00

  	
  %

  	
  Percentage
  of Gross Proceeds used for Purchaser Expenses

  	
   

  
	
  20.00

  	
  %

  	
  Purchaser Share

  	
   

  
	
  30.00

  	
  %

  	
  Purchaser’s
  [Risk] Discount

  	
   

  
	
  0.0910

  	
  %

  	
  Purchase
  Price as a percentage of
  Acquisition Value of Property Referred

  	
   

  

 

34.1

 

Table III-7(a)

CV-2 Illustrative 7 Year Financial Model

 

	
   

  	
   

  	
   

  	
   

  	
  Year 1

  	
   

  
	
   

  	
   

  	
  Al Award

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  
	
  All Figures ($000s)

  	
   

  	
  0

  	
   

  	
  1

  	
   

  	
  2

  	
   

  	
  3

  	
   

  	
  4

  	
   

  	
  5

  	
   

  	
  6

  	
   

  	
  7

  	
   

  	
  8

  	
   

  	
  9

  	
   

  	
  10

  	
   

  	
  11

  	
   

  	
  12

  	
   

  
	
  I.

  	
  Assumptions & Cash
  Flows

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  A.

  	
  Purchaser Inventory

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
  Acq.
  Value of Property Referred for Sale

  	
   

  	
  0

  	
   

  	
  105,847

  	
   

  	
  127,016

  	
   

  	
  148,815

  	
   

  	
  169,354

  	
   

  	
  190,524

  	
   

  	
  211,693

  	
   

  	
  211,693

  	
   

  	
  211,693

  	
   

  	
  211,693

  	
   

  	
  211,693

  	
   

  	
  211,693

  	
   

  	
  211,693

  	
   

  
	
   

  	
   

  	
  2.

  	
  Acq.
  Value of Property Sold

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  74,093

  	
   

  	
  88,911

  	
   

  	
  103,730

  	
   

  	
  143,951

  	
   

  	
  161,945

  	
   

  	
  179,939

  	
   

  	
  179,939

  	
   

  	
  179,939

  	
   

  	
  179,939

  	
   

  
	
   

  	
   

  	
  3.

  	
  Acq.
  Value of Inventory

  	
   

  	
  0

  	
   

  	
  105,847

  	
   

  	
  232,862

  	
   

  	
  381,047

  	
   

  	
  476,309

  	
   

  	
  577,922

  	
   

  	
  685,885

  	
   

  	
  735,627

  	
   

  	
  803,375

  	
   

  	
  835,129

  	
   

  	
  866,883

  	
   

  	
  896,637

  	
   

  	
  930,391

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  B.

  	
  DRMS
  Baseline Proceeds (no sales delay, no phase-in)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
  DRMS
  Baseline Gross Proceeds

  	
   

  	
   

  	
   

  	
  2,752

  	
   

  	
  2,752

  	
   

  	
  2,752

  	
   

  	
  2,752

  	
   

  	
  2,752

  	
   

  	
  2,752

  	
   

  	
  2,752

  	
   

  	
  2,752

  	
   

  	
  2,752

  	
   

  	
  2,752

  	
   

  	
  2,752

  	
   

  	
  2,752

  	
   

  
	
   

  	
   

  	
  2.

  	
  DRMS
  Baseline Expenses

  	
   

  	
   

  	
   

  	
  (1,376

  	
  )

  	
  (1,376

  	
  )

  	
  (1,376

  	
  )

  	
  (1,376

  	
  )

  	
  (1,376

  	
  )

  	
  (1,376

  	
  )

  	
  (1,376

  	
  )

  	
  (1,376

  	
  )

  	
  (1,376

  	
  )

  	
  (1,376

  	
  )

  	
  (1,376

  	
  )

  	
  (1,376

  	
  )

  
	
   

  	
   

  	
  3.

  	
  DRMS
  Baseline Net Proceeds

  	
   

  	
   

  	
   

  	
  1,376

  	
   

  	
  1,376

  	
   

  	
  1,376

  	
   

  	
  1,376

  	
   

  	
  1,376

  	
   

  	
  1,376

  	
   

  	
  1,376

  	
   

  	
  1,376

  	
   

  	
  1,376

  	
   

  	
  1,376

  	
   

  	
  1,376

  	
   

  	
  1,376

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  C.

  	
  Purchaser Cashflows

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
  Purchaser
  Gross Proceeds

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  963

  	
   

  	
  1,156

  	
   

  	
  1,348

  	
   

  	
  1,871

  	
   

  	
  2,105

  	
   

  	
  2,339

  	
   

  	
  2,339

  	
   

  	
  2,339

  	
   

  	
  2,339

  	
   

  
	
   

  	
   

  	
  2.

  	
  Total
  Purchaser Expenses

  	
   

  	
  0

  	
   

  	
  (750

  	
  )

  	
  (760

  	
  )

  	
  (771

  	
  )

  	
  (881

  	
  )

  	
  (991

  	
  )

  	
  (1,101

  	
  )

  	
  (1,101

  	
  )

  	
  (1,101

  	
  )

  	
  (1,101

  	
  )

  	
  (1,101

  	
  )

  	
  (1,101

  	
  )

  	
  (1,101

  	
  )

  
	
   

  	
   

  	
  3.

  	
  Purchaser
  Net Proceeds (Direct Cost Advance)

  	
   

  	
  0

  	
   

  	
  (750

  	
  )

  	
  (760

  	
  )

  	
  (771

  	
  )

  	
  83

  	
   

  	
  165

  	
   

  	
  248

  	
   

  	
  771

  	
   

  	
  1,004

  	
   

  	
  1,238

  	
   

  	
  1,238

  	
   

  	
  1,238

  	
   

  	
  1,238

  	
   

  
	
   

  	
   

  	
  4.

  	
  Purchaser
  Operating Cash Balance

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  1,101

  	
   

  	
  1,101

  	
   

  	
  1,101

  	
   

  	
  1,101

  	
   

  
	
   

  	
   

  	
  5.

  	
  Purchaser
  Working Capital Advance Balance

  	
   

  	
   

  	
   

  	
  (750

  	
  )

  	
  (1,511

  	
  )

  	
  (2,281

  	
  )

  	
  (2,199

  	
  )

  	
  (2,034

  	
  )

  	
  (1,186

  	
  )

  	
  (1,016

  	
  )

  	
  (11

  	
  )

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  6.

  	
  Available
  for Distribution

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  127

  	
   

  	
  1,238

  	
   

  	
  1,238

  	
   

  	
  1,238

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  D.

  	
  Seller Indirect Costs *

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
  Seller Indirect Costs

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  2.

  	
  DRMS
  Gross Distribution

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  101

  	
   

  	
  991

  	
   

  	
  991

  	
   

  	
  991

  	
   

  
	
   

  	
   

  	
  3.

  	
  Seller
  Indirect Cost Advances repaid to Contractor

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  4.

  	
  DRMS
  Distribution Payment [Net of Seller Indirect Costs]

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  101

  	
   

  	
  991

  	
   

  	
  991

  	
   

  	
  991

  	
   

  
	
   

  	
   

  	
  5.

  	
  Seller
  Indirect Cost Advance [funded by Contractor]

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  6.

  	
  Seller
  Indirect Cost Advance Balance [funded by Contractor]

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  II.

  	
  Recap of Payments & Distributions

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  A.

  	
  Contractor Cashflows

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
  Payment
  to DRMS for Property Referred for Sale

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  (96

  	
  )

  	
  (116

  	
  )

  	
  (135

  	
  )

  	
  (154

  	
  )

  	
  (173

  	
  )

  	
  (193

  	
  )

  	
  (193

  	
  )

  	
  (193

  	
  )

  	
  (193

  	
  )

  	
  (193

  	
  )

  	
  (193

  	
  )

  
	
   

  	
   

  	
  2.

  	
  Direct
  Cost (Advances) Repayments

  	
   

  	
  0

  	
   

  	
  (750

  	
  )

  	
  (760

  	
  )

  	
  (771

  	
  )

  	
  83

  	
   

  	
  165

  	
   

  	
  248

  	
   

  	
  771

  	
   

  	
  1,004

  	
   

  	
  11

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  3.

  	
  Cumulative
  Direct Cost (Advances) Repayments

  	
   

  	
  0

  	
   

  	
  (750

  	
  )

  	
  (1,511

  	
  )

  	
  (2,281

  	
  )

  	
  (2,199

  	
  )

  	
  (2,034

  	
  )

  	
  (1,788

  	
  )

  	
  (1,016

  	
  )

  	
  (11

  	
  )

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  3.

  	
  Seller
  Indirect Cost (Advances) Repayments

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  4.

  	
  Distributions
  = 20% of Net Proceeds

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  25

  	
   

  	
  248

  	
   

  	
  248

  	
   

  	
  248

  	
   

  
	
   

  	
   

  	
  5.

  	
  Payment Deposit

  	
   

  	
  (500

  	
  )

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  6.

  	
  Retention
  Fund (Payments) Credits

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  7.

  	
  Retention
  Fund - Balance

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  8.

  	
  Contractor
  Net Cashflow - This Month

  	
   

  	
  (500

  	
  )

  	
  (750

  	
  )

  	
  (857

  	
  )

  	
  (886

  	
  )

  	
  (52

  	
  )

  	
  11

  	
   

  	
  74

  	
   

  	
  578

  	
   

  	
  812

  	
   

  	
  (156

  	
  )

  	
  55

  	
   

  	
  55

  	
   

  	
  55

  	
   

  
	
   

  	
   

  	
  9.

  	
  Contractor
  Cumulative Net Cashflow

  	
   

  	
  (500

  	
  )

  	
  (1,250

  	
  )

  	
  (2,107

  	
  )

  	
  (2,993

  	
  )

  	
  (3,046

  	
  )

  	
  (3,036

  	
  )

  	
  (2,960

  	
  )

  	
  (2,382

  	
  )

  	
  (1,671

  	
  )

  	
  (1,727

  	
  )

  	
  (1,672

  	
  )

  	
  (1,617

  	
  )

  	
  (1,562

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  B.

  	
  DRMS Cashflows

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
  Payment
  from Contractor for Property Referred for Sale

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  96

  	
   

  	
  116

  	
   

  	
  135

  	
   

  	
  154

  	
   

  	
  173

  	
   

  	
  193

  	
   

  	
  193

  	
   

  	
  193

  	
   

  	
  193

  	
   

  	
  193

  	
   

  	
  193

  	
   

  
	
   

  	
   

  	
  2.

  	
  Gross
  Distribution Payments [80% of Net Proceeds]

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  101

  	
   

  	
  991

  	
   

  	
  991

  	
   

  	
  991

  	
   

  
	
   

  	
   

  	
  3.

  	
  Property
  Payments + Gross Distributions

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  96

  	
   

  	
  116

  	
   

  	
  135

  	
   

  	
  154

  	
   

  	
  173

  	
   

  	
  193

  	
   

  	
  193

  	
   

  	
  294

  	
   

  	
  1,183

  	
   

  	
  1,183

  	
   

  	
  1,183

  	
   

  
	
   

  	
   

  	
  4.

  	
  Payment
  Deposit

  	
   

  	
  500

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  5.

  	
  Retention
  Fund (Payments) Credits

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  6.

  	
  Less
  Seller Indirect Costs

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  7.

  	
  DRMS
  Net Cashflow - This Month

  	
   

  	
  500

  	
   

  	
  0

  	
   

  	
  96

  	
   

  	
  116

  	
   

  	
  135

  	
   

  	
  154

  	
   

  	
  173

  	
   

  	
  193

  	
   

  	
  193

  	
   

  	
  294

  	
   

  	
  1,183

  	
   

  	
  1,183

  	
   

  	
  1,183

  	
   

  
	
   

  	
   

  	
  8.

  	
  DRMS
  Cumulative Cashflow

  	
   

  	
  500

  	
   

  	
  500

  	
   

  	
  596

  	
   

  	
  712

  	
   

  	
  847

  	
   

  	
  1,001

  	
   

  	
  1,174

  	
   

  	
  1,367

  	
   

  	
  1,560

  	
   

  	
  1,853

  	
   

  	
  3,037

  	
   

  	
  4,220

  	
   

  	
  5,404

  	
   

  
																																

 

* This model distinguishes
between advances from Contractor to Purchaser for Direct Costs and Seller
Indirect Costs.

The IFB text
uses the collective term “Working Capital Advance” for both.

 

34.2

 

Table III-7(a)

CV-2 Illustrative 7 Year Financial Model

 

	
   

  	
   

  	
  Year 2

  	
   

  
	
   

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  
	
  All Figures ($000s)

  	
   

  	
  13

  	
   

  	
  14

  	
   

  	
  15

  	
   

  	
  16

  	
   

  	
  17

  	
   

  	
  18

  	
   

  	
  19

  	
   

  	
  20

  	
   

  	
  21

  	
   

  	
  22

  	
   

  	
  23

  	
   

  	
  24

  	
   

  
	
  I.

  	
  Assumptions & Cash
  Flows

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  A.

  	
  Purchaser Inventory

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
  Acq.
  Value of Property Referred for Sale

  	
   

  	
  196,875

  	
   

  	
  196,875

  	
   

  	
  196,875

  	
   

  	
  196,875

  	
   

  	
  196,875

  	
   

  	
  196,875

  	
   

  	
  196,875

  	
   

  	
  196,875

  	
   

  	
  196,875

  	
   

  	
  196,875

  	
   

  	
  196,875

  	
   

  	
  196,875

  	
   

  
	
   

  	
   

  	
  2.

  	
  Acq.
  Value of Property Sold

  	
   

  	
  211,693

  	
   

  	
  211,693

  	
   

  	
  211,693

  	
   

  	
  196,875

  	
   

  	
  196,875

  	
   

  	
  196,875

  	
   

  	
  196,875

  	
   

  	
  196,875

  	
   

  	
  196,875

  	
   

  	
  196,875

  	
   

  	
  196,875

  	
   

  	
  196,875

  	
   

  
	
   

  	
   

  	
  3.

  	
  Acq. Value of Inventory

  	
   

  	
  915,572

  	
   

  	
  900,754

  	
   

  	
  885,935

  	
   

  	
  885,935

  	
   

  	
  885,935

  	
   

  	
  885,935

  	
   

  	
  885,935

  	
   

  	
  885,935

  	
   

  	
  885,935

  	
   

  	
  885,935

  	
   

  	
  885,935

  	
   

  	
  885,935

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  B.

  	
  DRMS
  Baseline Proceeds (no sales delay, no phase-in)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
  DRMS
  Baseline Gross Proceeds

  	
   

  	
  2,559

  	
   

  	
  2,559

  	
   

  	
  2,559

  	
   

  	
  2,559

  	
   

  	
  2,559

  	
   

  	
  2,559

  	
   

  	
  2,559

  	
   

  	
  2,559

  	
   

  	
  2,559

  	
   

  	
  2,559

  	
   

  	
  2,559

  	
   

  	
  2,559

  	
   

  
	
   

  	
   

  	
  2.

  	
  DRMS
  Baseline Expenses

  	
   

  	
  (1,280

  	
  )

  	
  (1,280

  	
  )

  	
  (1,280

  	
  )

  	
  (1,280

  	
  )

  	
  (1,280

  	
  )

  	
  (1,280

  	
  )

  	
  (1,280

  	
  )

  	
  (1,280

  	
  )

  	
  (1,280

  	
  )

  	
  (1,280

  	
  )

  	
  (1,280

  	
  )

  	
  (1,280

  	
  )

  
	
   

  	
   

  	
  3.

  	
  DRMS
  Baseline Net Proceeds

  	
   

  	
  1,280

  	
   

  	
  1,280

  	
   

  	
  1,280

  	
   

  	
  1,280

  	
   

  	
  1,280

  	
   

  	
  1,280

  	
   

  	
  1,280

  	
   

  	
  1,280

  	
   

  	
  1,280

  	
   

  	
  1,280

  	
   

  	
  1,280

  	
   

  	
  1,280

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  C.

  	
  Purchaser Cashflows

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
  Purchaser Gross Proceeds

  	
   

  	
  2,752

  	
   

  	
  2,752

  	
   

  	
  2,752

  	
   

  	
  2,559

  	
   

  	
  2,815

  	
   

  	
  2,815

  	
   

  	
  2,815

  	
   

  	
  2,815

  	
   

  	
  2,815

  	
   

  	
  2,815

  	
   

  	
  2,815

  	
   

  	
  2,815

  	
   

  
	
   

  	
   

  	
  2.

  	
  Total Purchaser Expenses

  	
   

  	
  (1,101

  	
  )

  	
  (1,101

  	
  )

  	
  (1,101

  	
  )

  	
  (1,024

  	
  )

  	
  (1,024

  	
  )

  	
  (1,024

  	
  )

  	
  (1,024

  	
  )

  	
  (1,024

  	
  )

  	
  (1,024

  	
  )

  	
  (1,024

  	
  )

  	
  (1,024

  	
  )

  	
  (1,024

  	
  )

  
	
   

  	
   

  	
  3.

  	
  Purchaser
  Net Proceeds (Direct Cost Advance)

  	
   

  	
  1,651

  	
   

  	
  1,651

  	
   

  	
  1,651

  	
   

  	
  1,536

  	
   

  	
  1,792

  	
   

  	
  1,792

  	
   

  	
  1,792

  	
   

  	
  1,792

  	
   

  	
  1,792

  	
   

  	
  1,792

  	
   

  	
  1,792

  	
   

  	
  1,792

  	
   

  
	
   

  	
   

  	
  4.

  	
  Purchaser
  Operating Cash Balance

  	
   

  	
  1,101

  	
   

  	
  1,101

  	
   

  	
  1,024

  	
   

  	
  1,024

  	
   

  	
  1,024

  	
   

  	
  1,024

  	
   

  	
  1,024

  	
   

  	
  1,024

  	
   

  	
  1,024

  	
   

  	
  1,024

  	
   

  	
  1,024

  	
   

  	
  1,524

  	
   

  
	
   

  	
   

  	
  5.

  	
  Purchaser
  Working Capital Advance Balance

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  6.

  	
  Available for
  Distribution

  	
   

  	
  1,651

  	
   

  	
  1,651

  	
   

  	
  1,728

  	
   

  	
  1,536

  	
   

  	
  1,792

  	
   

  	
  1,792

  	
   

  	
  1,792

  	
   

  	
  1,792

  	
   

  	
  1,792

  	
   

  	
  1,792

  	
   

  	
  1,792

  	
   

  	
  1,291

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  D.

  	
  Seller Indirect Costs *

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
  Seller Indirect Costs

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  2.

  	
  DRMS Gross Distribution

  	
   

  	
  1,321

  	
   

  	
  1,321

  	
   

  	
  1,383

  	
   

  	
  1,228

  	
   

  	
  1,433

  	
   

  	
  1,433

  	
   

  	
  1,433

  	
   

  	
  1,433

  	
   

  	
  1,433

  	
   

  	
  1,433

  	
   

  	
  1,433

  	
   

  	
  1,033

  	
   

  
	
   

  	
   

  	
  3.

  	
  Seller
  Indirect Cost Advance repaid to Contractor

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  4.

  	
  DRMS
  Distribution Payment [Net of Seller Indirect Costs]

  	
   

  	
  1,321

  	
   

  	
  1,321

  	
   

  	
  1,383

  	
   

  	
  1,228

  	
   

  	
  1,433

  	
   

  	
  1,433

  	
   

  	
  1,433

  	
   

  	
  1,433

  	
   

  	
  1,433

  	
   

  	
  1,433

  	
   

  	
  1,433

  	
   

  	
  1,033

  	
   

  
	
   

  	
   

  	
  5.

  	
  Seller
  Indirect Cost Advances [funded by Contractor]

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  6.

  	
  Seller
  Indirect Cost Advance Balance [funded by Contractor]

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  II.

  	
  Recap of Payments & Distributions

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  A.

  	
  Contractor Cashflows

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
  Payment
  to DRMS for Property Referred for Sale

  	
   

  	
  (193

  	
  )

  	
  (179

  	
  )

  	
  (179

  	
  )

  	
  (179

  	
  )

  	
  (179

  	
  )

  	
  (179

  	
  )

  	
  (179

  	
  )

  	
  (179

  	
  )

  	
  (179

  	
  )

  	
  (179

  	
  )

  	
  (179

  	
  )

  	
  (179

  	
  )

  
	
   

  	
   

  	
  2.

  	
  Direct
  Cost (Advances) Repayments

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  3.

  	
  Cumulative
  Direct Cost (Advances) Repayments

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  3.

  	
  Seller
  Indirect Cost (Advances) Repayments

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  4.

  	
  Distributions
  = 20% of Net Proceeds

  	
   

  	
  330

  	
   

  	
  330

  	
   

  	
  346

  	
   

  	
  307

  	
   

  	
  358

  	
   

  	
  358

  	
   

  	
  358

  	
   

  	
  358

  	
   

  	
  358

  	
   

  	
  358

  	
   

  	
  358

  	
   

  	
  258

  	
   

  
	
   

  	
   

  	
  5.

  	
  Payment Deposit

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  6.

  	
  Retention
  Fund (Payments) Credits

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  (36

  	
  )

  	
  (26

  	
  )

  
	
   

  	
   

  	
  7.

  	
  Retention Fund - Balance

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  (36

  	
  )

  	
  (62

  	
  )

  
	
   

  	
   

  	
  8.

  	
  Contractor
  Net Cashflow - This Month

  	
   

  	
  138

  	
   

  	
  151

  	
   

  	
  166

  	
   

  	
  128

  	
   

  	
  179

  	
   

  	
  179

  	
   

  	
  179

  	
   

  	
  179

  	
   

  	
  179

  	
   

  	
  179

  	
   

  	
  143

  	
   

  	
  53

  	
   

  
	
   

  	
   

  	
  9.

  	
  Contractor
  Cumulative Net Cashflow

  	
   

  	
  (1,424

  	
  )

  	
  (1,273

  	
  )

  	
  (1,107

  	
  )

  	
  (979

  	
  )

  	
  (799

  	
  )

  	
  (620

  	
  )

  	
  (441

  	
  )

  	
  (262

  	
  )

  	
  (83

  	
  )

  	
  96

  	
   

  	
  240

  	
   

  	
  293

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  B.

  	
  DRMS Cashflows

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
  Payment
  from Contractor for Property Referred for Sale

  	
   

  	
  193

  	
   

  	
  179

  	
   

  	
  179

  	
   

  	
  179

  	
   

  	
  179

  	
   

  	
  179

  	
   

  	
  179

  	
   

  	
  179

  	
   

  	
  179

  	
   

  	
  179

  	
   

  	
  179

  	
   

  	
  179

  	
   

  
	
   

  	
   

  	
  2.

  	
  Gross
  Distribution Payments [80% of Net Proceeds]

  	
   

  	
  1,321

  	
   

  	
  1,321

  	
   

  	
  1,383

  	
   

  	
  1,228

  	
   

  	
  1,433

  	
   

  	
  1,433

  	
   

  	
  1,433

  	
   

  	
  1,433

  	
   

  	
  1,433

  	
   

  	
  1,433

  	
   

  	
  1,433

  	
   

  	
  1,033

  	
   

  
	
   

  	
   

  	
  3.

  	
  Property
  Payments + Gross Distributions

  	
   

  	
  1,514

  	
   

  	
  1,500

  	
   

  	
  1,562

  	
   

  	
  1,408

  	
   

  	
  1,612

  	
   

  	
  1,612

  	
   

  	
  1,612

  	
   

  	
  1,612

  	
   

  	
  1,612

  	
   

  	
  1,612

  	
   

  	
  1,612

  	
   

  	
  1,212

  	
   

  
	
   

  	
   

  	
  4.

  	
  Payment
  Deposit

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  5.

  	
  Retention
  Fund (Payments) Credits

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  36

  	
   

  	
  26

  	
   

  
	
   

  	
   

  	
  6.

  	
  Less Seller Indirect
  Costs

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  7.

  	
  DRMS
  Net Cashflow - This Month

  	
   

  	
  1,514

  	
   

  	
  1,500

  	
   

  	
  1,562

  	
   

  	
  1,408

  	
   

  	
  1,612

  	
   

  	
  1,612

  	
   

  	
  1,612

  	
   

  	
  1,612

  	
   

  	
  1,612

  	
   

  	
  1,612

  	
   

  	
  1,648

  	
   

  	
  1,238

  	
   

  
	
   

  	
   

  	
  8.

  	
  DRMS
  Cumulative Cashflow

  	
   

  	
  6,917

  	
   

  	
  8,417

  	
   

  	
  9,979

  	
   

  	
  11,384

  	
   

  	
  12,999

  	
   

  	
  14,611

  	
   

  	
  16,224

  	
   

  	
  17,836

  	
   

  	
  19,448

  	
   

  	
  21,061

  	
   

  	
  22,709

  	
   

  	
  23,947

  	
   

  

 

* This model distinguishes
between advances from Contractor to Purchaser for Direct Costs on

The IFB text
uses the collective term “Working Capital Advance” for both.

 

34.3

 

Table III-7(a)

CV-2 Illustrative 7 Year Financial Model

 

	
   

  	
   

  	
  Year 3

  	
   

  
	
   

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  
	
  All Figures ($000s)

  	
   

  	
  25

  	
   

  	
  26

  	
   

  	
  27

  	
   

  	
  28

  	
   

  	
  29

  	
   

  	
  30

  	
   

  	
  31

  	
   

  	
  32

  	
   

  	
  33

  	
   

  	
  34

  	
   

  	
  35

  	
   

  	
  36

  	
   

  
	
  I.

  	
  Assumptions & Cash
  Flows

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  A.

  	
  Purchaser Inventory

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
  Acq.
  Value of Property Referred for Sale

  	
   

  	
  293,047

  	
   

  	
  293,047

  	
   

  	
  293,047

  	
   

  	
  293,047

  	
   

  	
  293,047

  	
   

  	
  293,047

  	
   

  	
  293,047

  	
   

  	
  293,047

  	
   

  	
  293,047

  	
   

  	
  293,047

  	
   

  	
  293,047

  	
   

  	
  293,047

  	
   

  
	
   

  	
   

  	
  2.

  	
  Acq.
  Value of Property Sold

  	
   

  	
  196,875

  	
   

  	
  196,875

  	
   

  	
  196,875

  	
   

  	
  293,047

  	
   

  	
  293,047

  	
   

  	
  293,047

  	
   

  	
  293,047

  	
   

  	
  293,047

  	
   

  	
  293,047

  	
   

  	
  293,047

  	
   

  	
  293,047

  	
   

  	
  293,047

  	
   

  
	
   

  	
   

  	
  3.

  	
  Acq.
  Value of

  Inventory

  	
   

  	
  982,168

  	
   

  	
  1,078,281

  	
   

  	
  1,174,454

  	
   

  	
  1,174,454

  	
   

  	
  1,174,454

  	
   

  	
  1,174,454

  	
   

  	
  1,174,454

  	
   

  	
  1,174,454

  	
   

  	
  1,174,454

  	
   

  	
  1,174,454

  	
   

  	
  1,174,454

  	
   

  	
  1,174,454

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  B.

  	
  DRMS
  Baseline Proceeds (no sales delay, no phase-in)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
  DRMS
  Baseline Gross Proceeds

  	
   

  	
  3,810

  	
   

  	
  3,810

  	
   

  	
  3,810

  	
   

  	
  3,810

  	
   

  	
  3,810

  	
   

  	
  3,810

  	
   

  	
  3,810

  	
   

  	
  3,810

  	
   

  	
  3,810

  	
   

  	
  3,810

  	
   

  	
  3,810

  	
   

  	
  3,810

  	
   

  
	
   

  	
   

  	
  2.

  	
  DRMS
  Baseline Expenses

  	
   

  	
  (1,905

  	
  )

  	
  (1,905

  	
  )

  	
  (1,905

  	
  )

  	
  (1,905

  	
  )

  	
  (1,905

  	
  )

  	
  (1,905

  	
  )

  	
  (1,905

  	
  )

  	
  (1,905

  	
  )

  	
  (1,905

  	
  )

  	
  (1,905

  	
  )

  	
  (1,905

  	
  )

  	
  (1,905

  	
  )

  
	
   

  	
   

  	
  3.

  	
  DRMS
  Baseline Net Proceeds

  	
   

  	
  1,905

  	
   

  	
  1,905

  	
   

  	
  1,905

  	
   

  	
  1,905

  	
   

  	
  1,905

  	
   

  	
  1,905

  	
   

  	
  1,905

  	
   

  	
  1,905

  	
   

  	
  1,905

  	
   

  	
  1,905

  	
   

  	
  1,905

  	
   

  	
  1,905

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  C.

  	
  Purchaser Cashflows

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
  Purchaser
  Gross Proceeds

  	
   

  	
  2,815

  	
   

  	
  2,815

  	
   

  	
  2,815

  	
   

  	
  4,191

  	
   

  	
  4,191

  	
   

  	
  4,191

  	
   

  	
  4,572

  	
   

  	
  4,572

  	
   

  	
  4,572

  	
   

  	
  4,572

  	
   

  	
  4,572

  	
   

  	
  4,572

  	
   

  
	
   

  	
   

  	
  2.

  	
  Total
  Purchaser Expenses

  	
   

  	
  (1,524

  	
  )

  	
  (1,524

  	
  )

  	
  (1,524

  	
  )

  	
  (1,524

  	
  )

  	
  (1,524

  	
  )

  	
  (1,524

  	
  )

  	
  (1,524

  	
  )

  	
  (1,524

  	
  )

  	
  (1,524

  	
  )

  	
  (1,524

  	
  )

  	
  (1,524

  	
  )

  	
  (1,524

  	
  )

  
	
   

  	
   

  	
  3.

  	
  Purchaser
  Net Proceeds (Direct Cost Advance)

  	
   

  	
  1,291

  	
   

  	
  1,291

  	
   

  	
  1,291

  	
   

  	
  2,667

  	
   

  	
  2,667

  	
   

  	
  2,667

  	
   

  	
  3,048

  	
   

  	
  3,048

  	
   

  	
  3,048

  	
   

  	
  3,048

  	
   

  	
  3,048

  	
   

  	
  3,048

  	
   

  
	
   

  	
   

  	
  4.

  	
  Purchaser
  Operating Cash Balance

  	
   

  	
  1,524

  	
   

  	
  1,524

  	
   

  	
  1,524

  	
   

  	
  1,524

  	
   

  	
  1,524

  	
   

  	
  1,524

  	
   

  	
  1,524

  	
   

  	
  1,524

  	
   

  	
  1,524

  	
   

  	
  1,524

  	
   

  	
  1,524

  	
   

  	
  1,524

  	
   

  
	
   

  	
   

  	
  5.

  	
  Purchaser
  Working Capital Advance Balance

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  6.

  	
  Available
  for Distribution

  	
   

  	
  1,291

  	
   

  	
  1,291

  	
   

  	
  1,291

  	
   

  	
  2,667

  	
   

  	
  2,667

  	
   

  	
  2,667

  	
   

  	
  3,048

  	
   

  	
  3,048

  	
   

  	
  3,048

  	
   

  	
  3,048

  	
   

  	
  3,048

  	
   

  	
  3,048

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  D.

  	
  Seller Indirect Costs *

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
  Seller Indirect Costs

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  2.

  	
  DRMS
  Gross Distribution

  	
   

  	
  1,033

  	
   

  	
  1,033

  	
   

  	
  1,033

  	
   

  	
  2,133

  	
   

  	
  2,133

  	
   

  	
  2,133

  	
   

  	
  2,438

  	
   

  	
  2,438

  	
   

  	
  2,438

  	
   

  	
  2,438

  	
   

  	
  2,438

  	
   

  	
  2,438

  	
   

  
	
   

  	
   

  	
  3.

  	
  Seller
  Indirect Cost Advances repaid to Contractor

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  4.

  	
  DRMS
  Distribution Payment [Net of Seller Indirect Costs]

  	
   

  	
  1,033

  	
   

  	
  1,033

  	
   

  	
  1,033

  	
   

  	
  2,133

  	
   

  	
  2,133

  	
   

  	
  2,133

  	
   

  	
  2,438

  	
   

  	
  2,438

  	
   

  	
  2,438

  	
   

  	
  2,438

  	
   

  	
  2,438

  	
   

  	
  2,438

  	
   

  
	
   

  	
   

  	
  5.

  	
  Seller
  Indirect Cost Advance [funded by Contractor]

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  6.

  	
  Seller
  Indirect Cost Advance Balance [funded by Contractor]

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  II.

  	
  Recap of Payments & Distributions

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  A.

  	
  Contractor Cashflows

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
  Payment
  to DRMS for Property Referred for Sale

  	
   

  	
  (179

  	
  )

  	
  (267

  	
  )

  	
  (267

  	
  )

  	
  (267

  	
  )

  	
  (267

  	
  )

  	
  (267

  	
  )

  	
  (267

  	
  )

  	
  (267

  	
  )

  	
  (267

  	
  )

  	
  (267

  	
  )

  	
  (267

  	
  )

  	
  (267

  	
  )

  
	
   

  	
   

  	
  2.

  	
  Direct
  Cost (Advances) Repayments

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  3.

  	
  Cumulative
  Direct Cost (Advances) Repayments

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  3.

  	
  Seller
  Indirect Cost (Advances) Repayments

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  4.

  	
  Distributions
  = 20% of Net Proceeds

  	
   

  	
  258

  	
   

  	
  258

  	
   

  	
  258

  	
   

  	
  533

  	
   

  	
  533

  	
   

  	
  533

  	
   

  	
  610

  	
   

  	
  610

  	
   

  	
  610

  	
   

  	
  610

  	
   

  	
  610

  	
   

  	
  610

  	
   

  
	
   

  	
   

  	
  5.

  	
  Payment Deposit

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  6.

  	
  Retention
  Fund (Payments) Credits

  	
   

  	
  (26

  	
  )

  	
  (26

  	
  )

  	
  (26

  	
  )

  	
  (53

  	
  )

  	
  (53

  	
  )

  	
  (53

  	
  )

  	
  (61

  	
  )

  	
  (61

  	
  )

  	
  (61

  	
  )

  	
  (18

  	
  )

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  7.

  	
  Retention
  Fund - Balance

  	
   

  	
  (87

  	
  )

  	
  (113

  	
  )

  	
  (139

  	
  )

  	
  (192

  	
  )

  	
  (246

  	
  )

  	
  (299

  	
  )

  	
  (360

  	
  )

  	
  (421

  	
  )

  	
  (482

  	
  )

  	
  (500

  	
  )

  	
  (500

  	
  )

  	
  (500

  	
  )

  
	
   

  	
   

  	
  8.

  	
  Contractor
  Net Cashflow - This Month

  	
   

  	
  53

  	
   

  	
  34

  	
   

  	
  34

  	
   

  	
  213

  	
   

  	
  213

  	
   

  	
  213

  	
   

  	
  282

  	
   

  	
  282

  	
   

  	
  282

  	
   

  	
  325

  	
   

  	
  343

  	
   

  	
  343

  	
   

  
	
   

  	
   

  	
  9.

  	
  Contractor
  Cumulative Net Cashflow

  	
   

  	
  346

  	
   

  	
  312

  	
   

  	
  278

  	
   

  	
  491

  	
   

  	
  705

  	
   

  	
  918

  	
   

  	
  1,200

  	
   

  	
  1,482

  	
   

  	
  1,764

  	
   

  	
  2,089

  	
   

  	
  2,431

  	
   

  	
  2,774

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  B.

  	
  DRMS Cashflows

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
  Payment
  from Contractor for Property Referred for Sale

  	
   

  	
  179

  	
   

  	
  267

  	
   

  	
  267

  	
   

  	
  267

  	
   

  	
  267

  	
   

  	
  267

  	
   

  	
  267

  	
   

  	
  267

  	
   

  	
  267

  	
   

  	
  267

  	
   

  	
  267

  	
   

  	
  267

  	
   

  
	
   

  	
   

  	
  2.

  	
  Gross
  Distribution Payments [80% of Net Proceeds]

  	
   

  	
  1,033

  	
   

  	
  1,033

  	
   

  	
  1,033

  	
   

  	
  2,133

  	
   

  	
  2,133

  	
   

  	
  2,133

  	
   

  	
  2,438

  	
   

  	
  2,438

  	
   

  	
  2,438

  	
   

  	
  2,438

  	
   

  	
  2,438

  	
   

  	
  2,438

  	
   

  
	
   

  	
   

  	
  3.

  	
  Property
  Payments + Gross Distributions

  	
   

  	
  1,212

  	
   

  	
  1,300

  	
   

  	
  1,300

  	
   

  	
  2,400

  	
   

  	
  2,400

  	
   

  	
  2,400

  	
   

  	
  2,705

  	
   

  	
  2,705

  	
   

  	
  2,705

  	
   

  	
  2,705

  	
   

  	
  2,705

  	
   

  	
  2,705

  	
   

  
	
   

  	
   

  	
  4.

  	
  Payment
  Deposit

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  5.

  	
  Retention
  Fund (Payments) Credits

  	
   

  	
  26

  	
   

  	
  26

  	
   

  	
  26

  	
   

  	
  53

  	
   

  	
  53

  	
   

  	
  53

  	
   

  	
  61

  	
   

  	
  61

  	
   

  	
  61

  	
   

  	
  18

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  6.

  	
  Less Seller Indirect
  Costs

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  7.

  	
  DRMS
  Net Cashflow - This Month

  	
   

  	
  1,238

  	
   

  	
  1,326

  	
   

  	
  1,326

  	
   

  	
  2,453

  	
   

  	
  2,453

  	
   

  	
  2,453

  	
   

  	
  2,766

  	
   

  	
  2,766

  	
   

  	
  2,766

  	
   

  	
  2,723

  	
   

  	
  2,705

  	
   

  	
  2,705

  	
   

  
	
   

  	
   

  	
  8.

  	
  DRMS
  Cumulative Cashflow

  	
   

  	
  25,186

  	
   

  	
  26,511

  	
   

  	
  27,837

  	
   

  	
  30,290

  	
   

  	
  32,744

  	
   

  	
  35,197

  	
   

  	
  37,963

  	
   

  	
  40,729

  	
   

  	
  43,494

  	
   

  	
  46,217

  	
   

  	
  48,922

  	
   

  	
  51,627

  	
   

  

 

* This model distinguishes
between advances from Contractor to Purchaser for Direct Costs on 

The IFB text
uses the collective term “Working Capital Advance” for both.

 

34.4

 

Table III-7(a)

CV-2 Illustrative 7 Year Financial Model

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
  Wind-up

  	
   

  	
   

  	
   

  	
  Annual
  Summary

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Totals /

  	
   

  	
  Year

  	
   

  	
  Year

  	
   

  	
  Year

  	
   

  	
  Year

  	
   

  	
  Year

  	
   

  	
  Year

  	
   

  	
  Year

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  All Figures ($000s)

  	
   

  	
  85

  	
   

  	
  86

  	
   

  	
  87

  	
   

  	
  88

  	
   

  	
  Balances

  	
   

  	
  1

  	
   

  	
  2

  	
   

  	
  3

  	
   

  	
  4

  	
   

  	
  5

  	
   

  	
  6

  	
   

  	
  7

  	
   

  	
  Wind-Up

  	
   

  	
  Totals

  	
   

  
	
  I.

  	
  Assumptions & Cash
  Flows

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  A.

  	
  Purchaser Inventory

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
  Acq.
  Value of Property Referred for Sale

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  19,872,887

  	
   

  	
  2,222,777

  	
   

  	
  2,362,494

  	
   

  	
  3,516,570

  	
   

  	
  3,270,410

  	
   

  	
  3,041,481

  	
   

  	
  2,828,578

  	
   

  	
  2,630,577

  	
   

  	
  0

  	
   

  	
  19,872,887

  	
   

  
	
   

  	
   

  	
  2.

  	
  Acq.
  Value of Property Sold

  	
   

  	
  219,215

  	
   

  	
  366,871

  	
   

  	
  366,871

  	
   

  	
  0

  	
   

  	
  19,872,887

  	
   

  	
  1,292,386

  	
   

  	
  2,406,950

  	
   

  	
  3,228,051

  	
   

  	
  3,331,950

  	
   

  	
  3,098,713

  	
   

  	
  2,881,803

  	
   

  	
  2,680,077

  	
   

  	
  952,956

  	
   

  	
  19,872,887

  	
   

  
	
   

  	
   

  	
  3.

  	
  Acq.
  Value of Inventory

  	
   

  	
  733,741

  	
   

  	
  366,871

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  930,391

  	
   

  	
  885,935

  	
   

  	
  1,174,454

  	
   

  	
  1,112,914

  	
   

  	
  1,055,662

  	
   

  	
  1,002,456

  	
   

  	
  952,956

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  B.

  	
  DRMS
  Baseline Proceeds (no sales delay, no phase-in)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
  DRMS
  Baseline Gross Proceeds

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  262,476

  	
   

  	
  33,024

  	
   

  	
  30,712

  	
   

  	
  45,715

  	
   

  	
  42,515

  	
   

  	
  39,539

  	
   

  	
  36,772

  	
   

  	
  34,198

  	
   

  	
  0

  	
   

  	
  262,476

  	
   

  
	
   

  	
   

  	
  2.

  	
  DRMS
  Baseline Expenses

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  (131,236

  	
  )

  	
  (16,512

  	
  )

  	
  (15,356

  	
  )

  	
  (22,858

  	
  )

  	
  (21,258

  	
  )

  	
  (19,770

  	
  )

  	
  (18,386

  	
  )

  	
  (17,099

  	
  )

  	
  0

  	
   

  	
  (131,238

  	
  )

  
	
   

  	
   

  	
  3.

  	
  DRMS
  Baseline Net Proceeds

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  131,236

  	
   

  	
  16,512

  	
   

  	
  15,356

  	
   

  	
  22,858

  	
   

  	
  21,258

  	
   

  	
  19,770

  	
   

  	
  18,386

  	
   

  	
  17,099

  	
   

  	
  0

  	
   

  	
  131,238

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  C.

  	
  Purchaser Cashflows

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
  Purchaser
  Gross Proceeds

  	
   

  	
  3,420

  	
   

  	
  5,723

  	
   

  	
  5,723

  	
   

  	
  0

  	
   

  	
  300,536

  	
   

  	
  16,901

  	
   

  	
  33,338

  	
   

  	
  48,447

  	
   

  	
  51,978

  	
   

  	
  48,340

  	
   

  	
  44,958

  	
   

  	
  41,809

  	
   

  	
  14,866

  	
   

  	
  300,538

  	
   

  
	
   

  	
   

  	
  2.

  	
  Total
  Purchaser Expenses

  	
   

  	
  (1,140

  	
  )

  	
  (1,908

  	
  )

  	
  (1,908

  	
  )

  	
  0

  	
   

  	
  (109,977

  	
  )

  	
  (11,858

  	
  )

  	
  (12,516

  	
  )

  	
  (18,286

  	
  )

  	
  (17,326

  	
  )

  	
  (16,113

  	
  )

  	
  (14,985

  	
  )

  	
  (13,936

  	
  )

  	
  (4,955

  	
  )

  	
  (109,977

  	
  )

  
	
   

  	
   

  	
  3.

  	
  Purchaser
  Net Proceeds (Direct Cost Advance)

  	
   

  	
  2,280

  	
   

  	
  3,815

  	
   

  	
  3,815

  	
   

  	
  0

  	
   

  	
  190,558

  	
   

  	
  4,943

  	
   

  	
  20,822

  	
   

  	
  30,161

  	
   

  	
  34,652

  	
   

  	
  32,227

  	
   

  	
  29,971

  	
   

  	
  27,873

  	
   

  	
  9,911

  	
   

  	
  190,558

  	
   

  
	
   

  	
   

  	
  4.

  	
  Purchaser
  Operating Cash Balance

  	
   

  	
  1,908

  	
   

  	
  1,908

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  1,101

  	
   

  	
  1,524

  	
   

  	
  1,524

  	
   

  	
  1,417

  	
   

  	
  1,140

  	
   

  	
  1,226

  	
   

  	
  1,140

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  5.

  	
  Purchaser
  Working Capital Advance Balance

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  6.

  	
  Available
  for Distribution

  	
   

  	
  1,512

  	
   

  	
  3,815

  	
   

  	
  5,723

  	
   

  	
  0

  	
   

  	
  190,558

  	
   

  	
  3,842

  	
   

  	
  28,399

  	
   

  	
  30,161

  	
   

  	
  34,765

  	
   

  	
  32,504

  	
   

  	
  29,885

  	
   

  	
  27,959

  	
   

  	
  11,051

  	
   

  	
  190,558

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  D.

  	
  Seller Indirect Costs *

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
  Seller Indirect Costs

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  2.

  	
  DRMS
  Gross Distribution

  	
   

  	
  1,210

  	
   

  	
  3,052

  	
   

  	
  4,579

  	
   

  	
  0

  	
   

  	
  152,447

  	
   

  	
  3,073

  	
   

  	
  16,319

  	
   

  	
  24,129

  	
   

  	
  27,807

  	
   

  	
  26,003

  	
   

  	
  23,908

  	
   

  	
  22,387

  	
   

  	
  8,841

  	
   

  	
  152,447

  	
   

  
	
   

  	
   

  	
  3.

  	
  Seller
  Indirect Cost Advances repaid to Contractor

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  4.

  	
  DRMS
  Distribution Payment [Net of Seller Indirect Costs]

  	
   

  	
  1,210

  	
   

  	
  3,052

  	
   

  	
  4,579

  	
   

  	
  0

  	
   

  	
  152,447

  	
   

  	
  3,073

  	
   

  	
  16,319

  	
   

  	
  24,129

  	
   

  	
  27,807

  	
   

  	
  26,003

  	
   

  	
  23,908

  	
   

  	
  22,387

  	
   

  	
  8,841

  	
   

  	
  152,447

  	
   

  
	
   

  	
   

  	
  5.

  	
  Seller
  Indirect Cost Advance [funded by Contractor]

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  6.

  	
  Seller
  Indirect Cost Advance Balance [funded by Contractor]

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  II.

  	
  Recap of Payments & Distributions

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  A.

  	
  Contractor Cashflows

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
  Payment
  to DRMS for Property Referred for Sale

  	
   

  	
  (199

  	
  )

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  (18,084

  	
  )

  	
  (1,830

  	
  )

  	
  (2,163

  	
  )

  	
  (3,113

  	
  )

  	
  (2,995

  	
  )

  	
  (2,785

  	
  )

  	
  (2,590

  	
  )

  	
  (2,409

  	
  )

  	
  (199

  	
  )

  	
  (18,084

  	
  )

  
	
   

  	
   

  	
  2.

  	
  Direct
  Cost (Advances) Repayments

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  3.

  	
  Cumulative
  Direct Cost (Advances) Repayments

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3.

  	
  Seller
  Indirect Cost (Advances) Repayments

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  4.

  	
  Distributions
  = 20% of Net Proceeds

  	
   

  	
  302

  	
   

  	
  763

  	
   

  	
  1,145

  	
   

  	
  0

  	
   

  	
  38,112

  	
   

  	
  768

  	
   

  	
  4,080

  	
   

  	
  6,032

  	
   

  	
  6,952

  	
   

  	
  6,501

  	
   

  	
  5,977

  	
   

  	
  5,592

  	
   

  	
  2,210

  	
   

  	
  38,112

  	
   

  
	
   

  	
   

  	
  5.

  	
  Payment Deposit

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  500

  	
   

  	
  0

  	
   

  	
  (500

  	
  )

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  500

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  6.

  	
  Retention
  Fund (Payments) Credits

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  500

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  (62

  	
  )

  	
  (438

  	
  )

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  500

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  7.

  	
  Retention
  Fund - Balance

  	
   

  	
  (500

  	
  )

  	
  (500

  	
  )

  	
  (500

  	
  )

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  (82

  	
  )

  	
  (500

  	
  )

  	
  (500

  	
  )

  	
  (500

  	
  )

  	
  (500

  	
  )

  	
  (500

  	
  )

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  8.

  	
  Contractor
  Net Cashflow - This Month

  	
   

  	
  103

  	
   

  	
  763

  	
   

  	
  1,145

  	
   

  	
  1,000

  	
   

  	
  20,027

  	
   

  	
  (1,562

  	
  )

  	
  1,855

  	
   

  	
  2,481

  	
   

  	
  3,957

  	
   

  	
  3,716

  	
   

  	
  3,387

  	
   

  	
  3,183

  	
   

  	
  3,011

  	
   

  	
  20,027

  	
   

  
	
   

  	
   

  	
  9.

  	
  Contractor
  Cumulative Net Cashflow

  	
   

  	
  17,120

  	
   

  	
  17,883

  	
   

  	
  19,027

  	
   

  	
  20,027

  	
   

  	
  20,027

  	
   

  	
  (1,562

  	
  )

  	
  293

  	
   

  	
  2,774

  	
   

  	
  6,731

  	
   

  	
  10,447

  	
   

  	
  13,834

  	
   

  	
  17,017

  	
   

  	
  20,027

  	
   

  	
  20,027

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  B.

  	
  DRMS Cashflows

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
  Payment
  from Contractor for Property Referred for Sale

  	
   

  	
  199

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  18,084

  	
   

  	
  1,830

  	
   

  	
  2,163

  	
   

  	
  3,113

  	
   

  	
  2,995

  	
   

  	
  2,785

  	
   

  	
  2,590

  	
   

  	
  2,409

  	
   

  	
  199

  	
   

  	
  18,084

  	
   

  
	
   

  	
   

  	
  2.

  	
  Gross
  Distribution Payments [80% of Net Proceeds]

  	
   

  	
  1,210

  	
   

  	
  3,052

  	
   

  	
  4,579

  	
   

  	
  0

  	
   

  	
  152,447

  	
   

  	
  3,073

  	
   

  	
  16,319

  	
   

  	
  24,129

  	
   

  	
  27,807

  	
   

  	
  26,003

  	
   

  	
  23,906

  	
   

  	
  22,367

  	
   

  	
  8,841

  	
   

  	
  152,447

  	
   

  
	
   

  	
   

  	
  3.

  	
  Property
  Payments + Gross Distributions

  	
   

  	
  1,409

  	
   

  	
  3,052

  	
   

  	
  4,579

  	
   

  	
  0

  	
   

  	
  170,531

  	
   

  	
  4,904

  	
   

  	
  18,482

  	
   

  	
  27,241

  	
   

  	
  30,802

  	
   

  	
  28,788

  	
   

  	
  26,496

  	
   

  	
  24,776

  	
   

  	
  9,040

  	
   

  	
  170,531

  	
   

  
	
   

  	
   

  	
  4.

  	
  Payment
  Deposit

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  (500

  	
  )

  	
  0

  	
   

  	
  500

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  (500

  	
  )

  	
  0

  	
   

  
	
   

  	
   

  	
  5.

  	
  Retention
  Fund (Payments) Credits

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  (500

  	
  )

  	
  0

  	
   

  	
  0

  	
   

  	
  62

  	
   

  	
  438

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  (500

  	
  )

  	
  0

  	
   

  
	
   

  	
   

  	
  6.

  	
  Less
  Seller Indirect Costs

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  7.

  	
  DRMS
  Net Cashflow - This Month

  	
   

  	
  1,409

  	
   

  	
  3,052

  	
   

  	
  4,579

  	
   

  	
  (1,000

  	
  )

  	
  170,531

  	
   

  	
  5,404

  	
   

  	
  18,544

  	
   

  	
  27,679

  	
   

  	
  30,802

  	
   

  	
  28,788

  	
   

  	
  26,496

  	
   

  	
  24,776

  	
   

  	
  8,040

  	
   

  	
  170,531

  	
   

  
	
   

  	
   

  	
  8.

  	
  DRMS
  Cumulative Cashflow

  	
   

  	
  163,900

  	
   

  	
  166,492

  	
   

  	
  171,531

  	
   

  	
  170,531

  	
   

  	
  170,531

  	
   

  	
  5,404

  	
   

  	
  23,947

  	
   

  	
  51,627

  	
   

  	
  82,429

  	
   

  	
  111,217

  	
   

  	
  137,715

  	
   

  	
  162,491

  	
   

  	
  170,531

  	
   

  	
  170,531

  	
   

  

 

* This model distinguishes
between advances from Contractor to Purchaser for Direct Costs and Seller
Indirect Costs.

The IFB text
uses the collective term “Working Capital Advance” for both.

 

34.5

 

ASSUMPTIONS AND PARAMETERS IN ILLUSTRATIVE 7 YEAR
FINANCIAL MODEL

Table III-7(b)

 

Acquisition Value of Property Referred for Sale to Purchaser (000s)

 

	
   

  	
   

  	
  Year 1

  	
   

  	
  Year 2

  	
   

  	
  Year 3

  	
   

  	
  Year 4

  	
   

  	
  Year 5

  	
   

  	
  Year 6

  	
   

  	
  Year 7

  	
   

  
	
  CV-II Property

  	
   

  	
  $

  	
  2,540,316

  	
   

  	
  $

  	
  2,413,301

  	
   

  	
  $

  	
  2,292,635

  	
   

  	
  $

  	
  2,178,004

  	
   

  	
  $

  	
  2,069,104

  	
   

  	
  $

  	
  1,965,649

  	
   

  	
  $

  	
  1,867,366

  	
   

  
	
  CV-I Property

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  1,376,811

  	
   

  	
  $

  	
  1,307,970

  	
   

  	
  $

  	
  1,242,572

  	
   

  	
  $

  	
  1,180,443

  	
   

  	
  $

  	
  1,121,421

  	
   

  
	
  Total Preferred

  	
   

  	
  $

  	
  2,540,316

  	
   

  	
  $

  	
  2,413,301

  	
   

  	
  $

  	
  3,669,446

  	
   

  	
  $

  	
  3,485,974

  	
   

  	
  $

  	
  3,311,675

  	
   

  	
  $

  	
  3,146,092

  	
   

  	
  $

  	
  2,988,787

  	
   

  

 

Annual Decline in Acquisition Value of Property Referred for Sale to
Purchaser

5.00%

 

During the 1st year of operation, an increasing percentage of the
Property is Referred for Sale to Purchase:

 

	
   

  	
   

  	
  Month 1

  	
   

  	
  Month 2

  	
   

  	
  Month 3

  	
   

  	
  Month 4

  	
   

  	
  Month 5

  	
   

  	
  Month 6

  	
   

  	
  Month 7

  	
   

  	
  Month 8

  	
   

  	
  Month 9

  	
   

  	
  Month 10

  	
   

  
	
  Phase-in percentages

  	
   

  	
  50

  	
  %

  	
  60

  	
  %

  	
  70

  	
  %

  	
  80

  	
  %

  	
  90

  	
  %

  	
  100

  	
  %

  	
  100

  	
  %

  	
  100

  	
  %

  	
  100

  	
  %

  	
  100

  	
  %

  

 

Acquisition Value of Property Sold by Purchaser

 

	
  Months

  	
   

  	
   

  	
   

  
	
  1 - 3

  	
   

  	
  No Property
  sold while the Purchaser sets up operations

  	
   

  
	
  4 - 6

  	
   

  	
  70% of the
  Acquisition Value of the Property Referred for Sale 3 months earlier.

  	
   

  
	
  7 - 12

  	
   

  	
  85% of the
  Acquisition Value of the Property Referred for Sale 3 months earlier.

  	
   

  
	
  13 - 85

  	
   

  	
  100% of the
  Acquisition Value of the Property Referred for Sale 3 months earlier.

  	
   

  
	
  86

  	
   

  	
  50% of the
  Acquisition Value of the Property in Inventory.

  	
   

  
	
  87

  	
   

  	
  100% of the
  Acquisition Value of the Property in Inventory.

  	
   

  

 

DRMS Baseline Gross Proceeds

1.30% of Acquisition Value of the Property Referred for Sale

 

DRMS
Baseline Expenses

  50% of DRMS Baseline Gross Proceeds (equals 0.650% of
Acquisition Value Sold by Purchaser)

 

DRMS
Baseline Net Proceeds

DRMS Baseline Gross Proceeds minus DRMS Baseline Expenses

 

Purchaser
Gross ROR

Purchaser Gross ROR

 

	
  Months

  	
   

  	
  DRMS Gross ROR

  	
   

  	
  Purchaser

  Enhancement

  	
   

  	
  Purchaser

  Gross ROR

  	
   

  
	
  1 - 16

  	
   

  	
  1.30

  	
  %

  	
  10

  	
  %

  	
  1.43

  	
  %

  
	
  17 - 30

  	
   

  	
  1.30

  	
  %

  	
  20

  	
  %

  	
  1.56

  	
  %

  
	
  31+

  	
   

  	
  1.30

  	
  %

  	
  30

  	
  %

  	
  1.69

  	
  %

  

 

Purchaser
Gross Proceeds

This is the product of (1) the Acquisition Value of Property Sold
by Purchaser and (2) Purchaser Gross ROR.

 

Total
Purchaser Expenses

Total Purchaser Expenses are the sum of start-up costs and Purchaser
Expenses.

 

Purchaser Expenses are based upon DRMS Baseline Expenses.

 

Purchaser Expenses equal:

80% of DRMS Baseline Expenses for the greater of the Acquisition Value
of

(a) Property Referred for Sale, or (b) Property Sold

 

Purchaser Net Proceeds (Working Capital Advance)

Calculated as the difference between Purchaser Gross Proceeds and Total
Purchaser Expenses.

 

Purchaser Operating Cash Balance

Equals Total Purchaser Expenses for the following month

(starting in month 9 per contract requirements for Distribution
payments.)

 

Payment to DRMS for Property Referred for Sale

The Contractor’s Purchase Price is based upon:

	
  1.30

  	
  %

  	
  DRMS Gross
  ROR

  	
   

  
	
  50.00

  	
  %

  	
  Percentage
  of Gross Proceeds used for Purchaser Expenses

  	
   

  
	
  20.00

  	
  %

  	
  Purchaser
  Share

  	
   

  
	
  30.00

  	
  %

  	
  Purchaser’s
  [Risk] Discount

  	
   

  
	
  0.0910

  	
  %

  	
  Purchase
  Price as a percentage of Acquisition Value of Property Referred

  	
   

  

 

34.6

 

Table III-7(b)

CV-2 Illustrative 7 Year Financial Model

 

	
   

  	
   

  	
  Year 1

  	
   

  
	
   

  	
   

  	
  At Award

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  
	
  All
  Figures ($000s)

  	
   

  	
  0

  	
   

  	
  1

  	
   

  	
  2

  	
   

  	
  3

  	
   

  	
  4

  	
   

  	
  5

  	
   

  	
  6

  	
   

  	
  7

  	
   

  	
  8

  	
   

  	
  9

  	
   

  	
  10

  	
   

  	
  11

  	
   

  	
  12

  	
   

  
	
  I.
  Assumptions & Cash Flows

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  A. Purchaser Inventory

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1. Acq. Value of
  Property Referred for Sale

  	
   

  	
  0

  	
   

  	
  105,847

  	
   

  	
  127,016

  	
   

  	
  148,185

  	
   

  	
  169,354

  	
   

  	
  190,524

  	
   

  	
  211,693

  	
   

  	
  211,693

  	
   

  	
  211,693

  	
   

  	
  211,693

  	
   

  	
  211,693

  	
   

  	
  211,693

  	
   

  	
  211,693

  	
   

  
	
  2. Acq. Value of
  Property Sold

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  74,093

  	
   

  	
  88,911

  	
   

  	
  103,730

  	
   

  	
  143,951

  	
   

  	
  161,945

  	
   

  	
  179,939

  	
   

  	
  179,939

  	
   

  	
  179,939

  	
   

  	
  179,939

  	
   

  
	
  3. Acq. Value of
  Inventory

  	
   

  	
  0

  	
   

  	
  105,847

  	
   

  	
  232,862

  	
   

  	
  381,047

  	
   

  	
  478,309

  	
   

  	
  577,922

  	
   

  	
  685,885

  	
   

  	
  753,627

  	
   

  	
  803,375

  	
   

  	
  835,129

  	
   

  	
  866,883

  	
   

  	
  898,637

  	
   

  	
  930,391

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  B. DRMS Baseline
  Proceeds (no sales delay, no phase-in)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1. DRMS Baseline
  Gross Proceeds

  	
   

  	
   

  	
   

  	
  2,752

  	
   

  	
  2,752

  	
   

  	
  2,752

  	
   

  	
  2,752

  	
   

  	
  2,752

  	
   

  	
  2,752

  	
   

  	
  2,752

  	
   

  	
  2,752

  	
   

  	
  2,752

  	
   

  	
  2,752

  	
   

  	
  2,752

  	
   

  	
  2,752

  	
   

  
	
  2. DRMS Baseline
  Expenses

  	
   

  	
   

  	
   

  	
  (1,376

  	
  )

  	
  (1,376

  	
  )

  	
  (1,376

  	
  )

  	
  (1,376

  	
  )

  	
  (1,376

  	
  )

  	
  (1,376

  	
  )

  	
  (1,376

  	
  )

  	
  (1,376

  	
  )

  	
  (1,376

  	
  )

  	
  (1,376

  	
  )

  	
  (1,376

  	
  )

  	
  (1,376

  	
  )

  
	
  3. DRMS Baseline
  Net Proceeds

  	
   

  	
   

  	
   

  	
  1,376

  	
   

  	
  1,376

  	
   

  	
  1,376

  	
   

  	
  1,376

  	
   

  	
  1,376

  	
   

  	
  1,376

  	
   

  	
  1,376

  	
   

  	
  1,376

  	
   

  	
  1,376

  	
   

  	
  1,376

  	
   

  	
  1,376

  	
   

  	
  1,376

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  C. Purchaser
  Cashflows

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1. Purchaser
  Gross Proceeds

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  1,060

  	
   

  	
  1,271

  	
   

  	
  1,483

  	
   

  	
  2,059

  	
   

  	
  2,316

  	
   

  	
  2,573

  	
   

  	
  2,573

  	
   

  	
  2,573

  	
   

  	
  2,573

  	
   

  
	
  2. Total
  Purchaser Expenses

  	
   

  	
  0

  	
   

  	
  (750

  	
  )

  	
  (760

  	
  )

  	
  (771

  	
  )

  	
  (881

  	
  )

  	
  (991

  	
  )

  	
  (1,101

  	
  )

  	
  (1,101

  	
  )

  	
  (1,101

  	
  )

  	
  (1,101

  	
  )

  	
  (1,101

  	
  )

  	
  (1,101

  	
  )

  	
  (1,101

  	
  )

  
	
  3. Purchaser Net
  Proceeds (Direct Cost Advance)

  	
   

  	
  0

  	
   

  	
  (750

  	
  )

  	
  (760

  	
  )

  	
  (771

  	
  )

  	
  179

  	
   

  	
  281

  	
   

  	
  383

  	
   

  	
  958

  	
   

  	
  1,215

  	
   

  	
  1,472

  	
   

  	
  1,472

  	
   

  	
  1,472

  	
   

  	
  1,472

  	
   

  
	
  4. Purchaser
  Operating Cash Balance

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  1,101

  	
   

  	
  1,101

  	
   

  	
  1,101

  	
   

  	
  1,101

  	
   

  
	
  5. Purchaser
  Working Capital Advance Balance

  	
   

  	
   

  	
   

  	
  (750

  	
  )

  	
  (1,511

  	
  )

  	
  (2,281

  	
  )

  	
  (2,103

  	
  )

  	
  (1,822

  	
  )

  	
  (1,439

  	
  )

  	
  (482

  	
  )

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  6. Available for
  Distribution

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  733

  	
   

  	
  372

  	
   

  	
  1,472

  	
   

  	
  1,472

  	
   

  	
  1,472

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  D. Seller
  Indirect Costs *

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1. Seller
  Indirect Costs

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  2. DRMS Gross
  Distribution

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  587

  	
   

  	
  297

  	
   

  	
  1,178

  	
   

  	
  1,178

  	
   

  	
  1,178

  	
   

  
	
  3. Seller
  Indirect Cost Advances repaid to Contractor

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  4. DRMS Distribution Payment [Net of Seller Indirect Costs]

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  587

  	
   

  	
  297

  	
   

  	
  1,178

  	
   

  	
  1,178

  	
   

  	
  1,178

  	
   

  
	
  5. Seller
  Indirect Cost Advance [funded by Contractor]

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  6. Seller Indirect
  Cost Advance Balance [funded by Contractor]

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  II.
  Recap of Payments & Distributions

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  A. Contractor
  Cashflows

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1. Payment to
  DRMS for Property Referred for Sale

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  (96

  	
  )

  	
  (116

  	
  )

  	
  (135

  	
  )

  	
  (154

  	
  )

  	
  (173

  	
  )

  	
  (193

  	
  )

  	
  (193

  	
  )

  	
  (193

  	
  )

  	
  (193

  	
  )

  	
  (193

  	
  )

  	
  (193

  	
  )

  
	
  2. Direct Cost
  (Advances) Repayments

  	
   

  	
  0

  	
   

  	
  (750

  	
  )

  	
  (760

  	
  )

  	
  (771

  	
  )

  	
  179

  	
   

  	
  (281

  	
  )

  	
  383

  	
   

  	
  958

  	
   

  	
  482

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  3. Cumulative
  Direct Cost (Advances) Repayments

  	
   

  	
  0

  	
   

  	
  (750

  	
  )

  	
  (1,511

  	
  )

  	
  (2,281

  	
  )

  	
  (2,103

  	
  )

  	
  (1,822

  	
  )

  	
  (1,439

  	
  )

  	
  (482

  	
  )

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  3. Seller
  Indirect Cost (Advances) Repayments

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  4. Distributions
  = 20% of Net Proceeds

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  147

  	
   

  	
  74

  	
   

  	
  294

  	
   

  	
  294

  	
   

  	
  294

  	
   

  
	
  5. Payment
  Deposit

  	
   

  	
  (500

  	
  )

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  6. Retention Fund
  (Payments) Credits

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  7. Retention Fund
  - Balance

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  8.
  Contractor Net Cashflow - This Month

  	
   

  	
  (500

  	
  )

  	
  (750

  	
  )

  	
  (857

  	
  )

  	
  (886

  	
  )

  	
  44

  	
   

  	
  127

  	
   

  	
  209

  	
   

  	
  765

  	
   

  	
  436

  	
   

  	
  (118

  	
  )

  	
  102

  	
   

  	
  102

  	
   

  	
  102

  	
   

  
	
  9.
  Contractor Cumulative Net Cashflow

  	
   

  	
  (500

  	
  )

  	
  (1,250

  	
  )

  	
  (2,107

  	
  )

  	
  (2,993

  	
  )

  	
  (2,949

  	
  )

  	
  (2,823

  	
  )

  	
  (2,614

  	
  )

  	
  (1,849

  	
  )

  	
  (1,413

  	
  )

  	
  (1,531

  	
  )

  	
  (1,429

  	
  )

  	
  (1,328

  	
  )

  	
  (1,226

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  B. DRMS Cashflows

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1. Payment from
  Contractor for Property Referred for Sale

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  96

  	
   

  	
  116

  	
   

  	
  135

  	
   

  	
  154

  	
   

  	
  173

  	
   

  	
  193

  	
   

  	
  193

  	
   

  	
  193

  	
   

  	
  193

  	
   

  	
  193

  	
   

  	
  193

  	
   

  
	
  2. Gross
  Distribution Payments [80% of Net Proceeds]

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  587

  	
   

  	
  297

  	
   

  	
  1,178

  	
   

  	
  1,178

  	
   

  	
  1,178

  	
   

  
	
  3. Property
  Payments + Gross Distributions

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  96

  	
   

  	
  116

  	
   

  	
  135

  	
   

  	
  154

  	
   

  	
  173

  	
   

  	
  193

  	
   

  	
  779

  	
   

  	
  490

  	
   

  	
  1,371

  	
   

  	
  1,371

  	
   

  	
  1,371

  	
   

  
	
  4. Payment
  Deposit

  	
   

  	
  500

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  5. Retention Fund
  (Payments) Credits

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  6. Less Seller
  Indirect Costs

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  7. DRMS Net
  Cashflow - This Month

  	
   

  	
  500

  	
   

  	
  0

  	
   

  	
  96

  	
   

  	
  116

  	
   

  	
  135

  	
   

  	
  154

  	
   

  	
  173

  	
   

  	
  193

  	
   

  	
  779

  	
   

  	
  490

  	
   

  	
  1,371

  	
   

  	
  1,371

  	
   

  	
  1,371

  	
   

  
	
  8. DRMS
  Cumulative Cashflow

  	
   

  	
  500

  	
   

  	
  500

  	
   

  	
  596

  	
   

  	
  712

  	
   

  	
  847

  	
   

  	
  1,001

  	
   

  	
  1,174

  	
   

  	
  1,367

  	
   

  	
  2,146

  	
   

  	
  2,636

  	
   

  	
  4,007

  	
   

  	
  5,377

  	
   

  	
  6,748

  	
   

  

 

	
  *

  	
   

  	
  This model
  distinguishes between advances from Contractor to Purchaser for Direct Costs
  and Seller Indirect Costs.

  
	
   

  	
   

  	
  The IFB text
  uses the collective term “Working Capital Advance” for both.

  

 

34.7

 

Table III-7(b)

CV-2 Illustrative 7 Year Financial Model

 

	
   

  	
   

  	
  Year 2

  	
   

  
	
   

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  
	
  All
  Figures ($000s)

  	
   

  	
  13

  	
   

  	
  14

  	
   

  	
  15

  	
   

  	
  16

  	
   

  	
  17

  	
   

  	
  18

  	
   

  	
  19

  	
   

  	
  20

  	
   

  	
  21

  	
   

  	
  22

  	
   

  	
  23

  	
   

  	
  24

  	
   

  
	
  I.
  Assumptions & Cash Flows

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  A. Purchaser Inventory

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1. Acq. Value of
  Property Referred for Sale

  	
   

  	
  201,108

  	
   

  	
  201,108

  	
   

  	
  201,108

  	
   

  	
  201,108

  	
   

  	
  201,108

  	
   

  	
  201,108

  	
   

  	
  201,108

  	
   

  	
  201,108

  	
   

  	
  201,108

  	
   

  	
  201,108

  	
   

  	
  201,108

  	
   

  	
  201,108

  	
   

  
	
  2. Acq. Value of
  Property Sold

  	
   

  	
  211,693

  	
   

  	
  211,693

  	
   

  	
  211,693

  	
   

  	
  201,108

  	
   

  	
  201,108

  	
   

  	
  201,108

  	
   

  	
  201,108

  	
   

  	
  201,108

  	
   

  	
  201,108

  	
   

  	
  201,108

  	
   

  	
  201,108

  	
   

  	
  201,108

  	
   

  
	
  3. Acq. Value of
  Inventory

  	
   

  	
  919,806

  	
   

  	
  909,222

  	
   

  	
  898,637

  	
   

  	
  898,637

  	
   

  	
  898,637

  	
   

  	
  898,637

  	
   

  	
  898,637

  	
   

  	
  898,637

  	
   

  	
  898,637

  	
   

  	
  898,637

  	
   

  	
  898,637

  	
   

  	
  898,637

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  B. DRMS Baseline
  Proceeds (no sales delay, no phase-in)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1. DRMS Baseline
  Gross Proceeds

  	
   

  	
  2,614

  	
   

  	
  2,614

  	
   

  	
  2,614

  	
   

  	
  2,614

  	
   

  	
  2,614

  	
   

  	
  2,614

  	
   

  	
  2,614

  	
   

  	
  2,614

  	
   

  	
  2,614

  	
   

  	
  2,614

  	
   

  	
  2,614

  	
   

  	
  2,614

  	
   

  
	
  2. DRMS Baseline
  Expenses

  	
   

  	
  (1,307

  	
  )

  	
  (1,307

  	
  )

  	
  (1,307

  	
  )

  	
  (1,307

  	
  )

  	
  (1,307

  	
  )

  	
  (1,307

  	
  )

  	
  (1,307

  	
  )

  	
  (1,307

  	
  )

  	
  (1,307

  	
  )

  	
  (1,307

  	
  )

  	
  (1,307

  	
  )

  	
  (1,307

  	
  )

  
	
  3. DRMS Baseline
  Net Proceeds

  	
   

  	
  1,307

  	
   

  	
  1,307

  	
   

  	
  1,307

  	
   

  	
  1,307

  	
   

  	
  1,307

  	
   

  	
  1,307

  	
   

  	
  1,307

  	
   

  	
  1,307

  	
   

  	
  1,307

  	
   

  	
  1,307

  	
   

  	
  1,307

  	
   

  	
  1,307

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  C. Purchaser
  Cashflows

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1. Purchaser
  Gross Proceeds

  	
   

  	
  3,027

  	
   

  	
  3,027

  	
   

  	
  3,027

  	
   

  	
  2,876

  	
   

  	
  3,137

  	
   

  	
  3,137

  	
   

  	
  3,137

  	
   

  	
  3,137

  	
   

  	
  3,137

  	
   

  	
  3,137

  	
   

  	
  3,137

  	
   

  	
  3,137

  	
   

  
	
  2. Total
  Purchaser Expenses

  	
   

  	
  (1,101

  	
  )

  	
  (1,101

  	
  )

  	
  (1,101

  	
  )

  	
  (1,046

  	
  )

  	
  (1,046

  	
  )

  	
  (1,046

  	
  )

  	
  (1,046

  	
  )

  	
  (1,046

  	
  )

  	
  (1,046

  	
  )

  	
  (1,046

  	
  )

  	
  (1,046

  	
  )

  	
  (1,046

  	
  )

  
	
  3. Purchaser Net
  Proceeds (Direct Cost Advance)

  	
   

  	
  1,926

  	
   

  	
  1,926

  	
   

  	
  1,926

  	
   

  	
  1,830

  	
   

  	
  2,092

  	
   

  	
  2,092

  	
   

  	
  2,092

  	
   

  	
  2,092

  	
   

  	
  2,092

  	
   

  	
  2,092

  	
   

  	
  2,092

  	
   

  	
  2,092

  	
   

  
	
  4. Purchaser
  Operating Cash Balance

  	
   

  	
  1,101

  	
   

  	
  1,101

  	
   

  	
  1,046

  	
   

  	
  1,046

  	
   

  	
  1,046

  	
   

  	
  1,046

  	
   

  	
  1,046

  	
   

  	
  1,046

  	
   

  	
  1,046

  	
   

  	
  1,046

  	
   

  	
  1,046

  	
   

  	
  1,590

  	
   

  
	
  5. Purchaser
  Working Capital Advance Balance

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  6. Available for
  Distribution

  	
   

  	
  1,926

  	
   

  	
  1,926

  	
   

  	
  1,981

  	
   

  	
  1,830

  	
   

  	
  2,092

  	
   

  	
  2,092

  	
   

  	
  2,092

  	
   

  	
  2,092

  	
   

  	
  2,092

  	
   

  	
  2,092

  	
   

  	
  2,092

  	
   

  	
  1,547

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  D. Seller
  Indirect Costs *

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1. Seller
  Indirect Costs

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  2. DRMS Gross
  Distribution

  	
   

  	
  1,541

  	
   

  	
  1,541

  	
   

  	
  1,585

  	
   

  	
  1,464

  	
   

  	
  1,673

  	
   

  	
  1,673

  	
   

  	
  1,673

  	
   

  	
  1,673

  	
   

  	
  1,673

  	
   

  	
  1,673

  	
   

  	
  1,673

  	
   

  	
  1,238

  	
   

  
	
  3. Seller
  Indirect Cost Advances repaid to Contractor

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  4. DRMS
  Distribution Payment [Net of Seller Indirect Costs]

  	
   

  	
  1,541

  	
   

  	
  1,541

  	
   

  	
  1,585

  	
   

  	
  1,464

  	
   

  	
  1,673

  	
   

  	
  1,673

  	
   

  	
  1,673

  	
   

  	
  1,673

  	
   

  	
  1,673

  	
   

  	
  1,673

  	
   

  	
  1,673

  	
   

  	
  1,238

  	
   

  
	
  5. Seller
  Indirect Cost Advance [funded by Contractor]

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  6. Seller
  Indirect Cost Advance Balance [funded by Contractor]

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  II.
  Recap of Payments & Distributions

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  A. Contractor
  Cashflows

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1. Payment to
  DRMS for Property Referred for Sale

  	
   

  	
  (193

  	
  )

  	
  (183

  	
  )

  	
  (183

  	
  )

  	
  (183

  	
  )

  	
  (183

  	
  )

  	
  (183

  	
  )

  	
  (183

  	
  )

  	
  (183

  	
  )

  	
  (183

  	
  )

  	
  (183

  	
  )

  	
  (183

  	
  )

  	
  (183

  	
  )

  
	
  2. Direct Cost
  (Advances) Repayments

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  3. Cumulative
  Direct Cost (Advances) Repayments

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  3. Seller
  Indirect Cost (Advances) Repayments

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  4. Distributions
  = 20% of Net Proceeds

  	
   

  	
  385

  	
   

  	
  385

  	
   

  	
  396

  	
   

  	
  366

  	
   

  	
  418

  	
   

  	
  418

  	
   

  	
  418

  	
   

  	
  418

  	
   

  	
  418

  	
   

  	
  418

  	
   

  	
  418

  	
   

  	
  309

  	
   

  
	
  5. Payment
  Deposit

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  6. Retention Fund
  (Payments) Credits

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  (42

  	
  )

  	
  (42

  	
  )

  	
  (42

  	
  )

  	
  (42

  	
  )

  	
  (42

  	
  )

  	
  (31

  	
  )

  
	
  7. Retention Fund
  - Balance

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  (42

  	
  )

  	
  (84

  	
  )

  	
  (125

  	
  )

  	
  (167

  	
  )

  	
  (209

  	
  )

  	
  (240

  	
  )

  
	
  8.
  Contractor Net Cashflow - This Month

  	
   

  	
  193

  	
   

  	
  202

  	
   

  	
  213

  	
   

  	
  183

  	
   

  	
  235

  	
   

  	
  235

  	
   

  	
  193

  	
   

  	
  193

  	
   

  	
  193

  	
   

  	
  193

  	
   

  	
  193

  	
   

  	
  95

  	
   

  
	
  9.
  Contractor Cumulative Net Cashflow

  	
   

  	
  (1,033

  	
  )

  	
  (831

  	
  )

  	
  (618

  	
  )

  	
  (435

  	
  )

  	
  (199

  	
  )

  	
  36

  	
   

  	
  230

  	
   

  	
  423

  	
   

  	
  616

  	
   

  	
  810

  	
   

  	
  1,003

  	
   

  	
  1,099

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  B. DRMS Cashflows

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1. Payment from
  Contractor for Property Referred for Sale

  	
   

  	
  193

  	
   

  	
  183

  	
   

  	
  183

  	
   

  	
  183

  	
   

  	
  183

  	
   

  	
  183

  	
   

  	
  183

  	
   

  	
  183

  	
   

  	
  183

  	
   

  	
  183

  	
   

  	
  183

  	
   

  	
  183

  	
   

  
	
  2. Gross
  Distribution Payments [80% of Net Proceeds]

  	
   

  	
  1,541

  	
   

  	
  1,541

  	
   

  	
  1,585

  	
   

  	
  1,464

  	
   

  	
  1,673

  	
   

  	
  1,673

  	
   

  	
  1,673

  	
   

  	
  1,673

  	
   

  	
  1,673

  	
   

  	
  1,673

  	
   

  	
  1,673

  	
   

  	
  1,238

  	
   

  
	
  3. Property
  Payments + Gross Distributions

  	
   

  	
  1,734

  	
   

  	
  1,724

  	
   

  	
  1,768

  	
   

  	
  1,647

  	
   

  	
  1,856

  	
   

  	
  1,856

  	
   

  	
  1,856

  	
   

  	
  1,856

  	
   

  	
  1,856

  	
   

  	
  1,856

  	
   

  	
  1,856

  	
   

  	
  1,421

  	
   

  
	
  4. Payment
  Deposit

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  5. Retention Fund
  (Payments) Credits

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  42

  	
   

  	
  42

  	
   

  	
  42

  	
   

  	
  42

  	
   

  	
  42

  	
   

  	
  31

  	
   

  
	
  6. Less Seller
  Indirect Costs

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  7. DRMS Net
  Cashflow - This Month

  	
   

  	
  1,734

  	
   

  	
  1,724

  	
   

  	
  1,768

  	
   

  	
  1,?47

  	
   

  	
  1,856

  	
   

  	
  1,856

  	
   

  	
  1,898

  	
   

  	
  1,898

  	
   

  	
  1,898

  	
   

  	
  1,898

  	
   

  	
  1,898

  	
   

  	
  1,452

  	
   

  
	
  8. DRMS
  Cumulative Cashflow

  	
   

  	
  8,481

  	
   

  	
  10,205

  	
   

  	
  11,974

  	
   

  	
  13,621

  	
   

  	
  15,477

  	
   

  	
  17,333

  	
   

  	
  19,231

  	
   

  	
  21,129

  	
   

  	
  23,027

  	
   

  	
  24,925

  	
   

  	
  26,823

  	
   

  	
  28,275

  	
   

  

 

	
  *

  	
   

  	
  This model
  distinguishes between advances from Contractor to Purchaser for Direct Costs
  and Seller Indirect Costs.

  
	
   

  	
   

  	
  The IFB text
  uses the collective term “Working Capital Advance” for both.

  

 

34.8

 

Table III-7(b)

CV-2 Illustrative 7 Year Financial Model

 

	
   

  	
   

  	
  Year 3

  	
   

  
	
   

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  
	
  All
  Figures ($000s)

  	
   

  	
  25

  	
   

  	
  26

  	
   

  	
  27

  	
   

  	
  28

  	
   

  	
  29

  	
   

  	
  30

  	
   

  	
  31

  	
   

  	
  32

  	
   

  	
  33

  	
   

  	
  34

  	
   

  	
  35

  	
   

  	
  36

  	
   

  
	
  I.
  Assumptions & Cash Flows

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  A. Purchaser Inventory

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1. Acq. Value of
  Property Referred for Sale

  	
   

  	
  305,787

  	
   

  	
  305,787

  	
   

  	
  305,787

  	
   

  	
  305,787

  	
   

  	
  305,787

  	
   

  	
  305,787

  	
   

  	
  305,787

  	
   

  	
  305,787

  	
   

  	
  305,787

  	
   

  	
  305,787

  	
   

  	
  305,787

  	
   

  	
  305,787

  	
   

  
	
  2. Acq. Value of
  Property Sold

  	
   

  	
  201,108

  	
   

  	
  201,108

  	
   

  	
  201,108

  	
   

  	
  305,787

  	
   

  	
  305,787

  	
   

  	
  305,787

  	
   

  	
  305,787

  	
   

  	
  305,787

  	
   

  	
  305,787

  	
   

  	
  305,787

  	
   

  	
  305,787

  	
   

  	
  305,787

  	
   

  
	
  3. Acq. Value of
  Inventory

  	
   

  	
  1,003,316

  	
   

  	
  1,107,995

  	
   

  	
  1,212,673

  	
   

  	
  1,212,673

  	
   

  	
  1,212,673

  	
   

  	
  1,212,673

  	
   

  	
  1,212,673

  	
   

  	
  1,212,673

  	
   

  	
  1,212,673

  	
   

  	
  1,212,673

  	
   

  	
  1,212,673

  	
   

  	
  1,212,673

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  B. DRMS Baseline
  Proceeds (no sales delay, no phase-in)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1. DRMS Baseline
  Gross Proceeds

  	
   

  	
  3,975

  	
   

  	
  3,975

  	
   

  	
  3,975

  	
   

  	
  3,975

  	
   

  	
  3,975

  	
   

  	
  3,975

  	
   

  	
  3,975

  	
   

  	
  3,975

  	
   

  	
  3,975

  	
   

  	
  3,975

  	
   

  	
  3,975

  	
   

  	
  3,975

  	
   

  
	
  2. DRMS Baseline
  Expenses

  	
   

  	
  (1,988

  	
  )

  	
  (1,988

  	
  )

  	
  (1,988

  	
  )

  	
  (1,988

  	
  )

  	
  (1,988

  	
  )

  	
  (1,988

  	
  )

  	
  (1,988

  	
  )

  	
  (1,988

  	
  )

  	
  (1,988

  	
  )

  	
  (1,988

  	
  )

  	
  (1,988

  	
  )

  	
  (1,988

  	
  )

  
	
  3. DRMS Baseline
  Net Proceeds

  	
   

  	
  1,988

  	
   

  	
  1,988

  	
   

  	
  1,988

  	
   

  	
  1,988

  	
   

  	
  1,988

  	
   

  	
  1,988

  	
   

  	
  1,988

  	
   

  	
  1,988

  	
   

  	
  1,988

  	
   

  	
  1,988

  	
   

  	
  1,988

  	
   

  	
  1,988

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  C. Purchaser
  Cashflows

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1. Purchaser
  Gross Proceeds

  	
   

  	
  3,137

  	
   

  	
  3,137

  	
   

  	
  3,137

  	
   

  	
  4,770

  	
   

  	
  4,770

  	
   

  	
  4,770

  	
   

  	
  5,168

  	
   

  	
  5,168

  	
   

  	
  5,168

  	
   

  	
  5,168

  	
   

  	
  5,168

  	
   

  	
  5,168

  	
   

  
	
  2. Total Purchaser
  Expenses

  	
   

  	
  (1,590

  	
  )

  	
  (1,590

  	
  )

  	
  (1,590

  	
  )

  	
  (1,590

  	
  )

  	
  (1,590

  	
  )

  	
  (1,590

  	
  )

  	
  (1,590

  	
  )

  	
  (1,590

  	
  )

  	
  (1,590

  	
  )

  	
  (1,590

  	
  )

  	
  (1,590

  	
  )

  	
  (1,590

  	
  )

  
	
  3. Purchaser Net
  Proceeds (Direct Cost Advance)

  	
   

  	
  1,547

  	
   

  	
  1,547

  	
   

  	
  1,547

  	
   

  	
  3,180

  	
   

  	
  3,180

  	
   

  	
  3,180

  	
   

  	
  3,578

  	
   

  	
  3,578

  	
   

  	
  3,578

  	
   

  	
  3,578

  	
   

  	
  3,578

  	
   

  	
  3,578

  	
   

  
	
  4. Purchaser
  Operating Cash Balance

  	
   

  	
  1,590

  	
   

  	
  1,590

  	
   

  	
  1,590

  	
   

  	
  1,590

  	
   

  	
  1,590

  	
   

  	
  1,590

  	
   

  	
  1,590

  	
   

  	
  1,590

  	
   

  	
  1,590

  	
   

  	
  1,590

  	
   

  	
  1,590

  	
   

  	
  1,590

  	
   

  
	
  5. Purchaser
  Working Capital Advance Balance

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  6. Available for
  Distribution

  	
   

  	
  1,547

  	
   

  	
  1,547

  	
   

  	
  1,547

  	
   

  	
  3,180

  	
   

  	
  3,180

  	
   

  	
  3,180

  	
   

  	
  3,578

  	
   

  	
  3,578

  	
   

  	
  3,578

  	
   

  	
  3,578

  	
   

  	
  3,578

  	
   

  	
  3,578

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  D. Seller
  Indirect Costs *

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1. Seller
  Indirect Costs

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  2. DRMS Gross
  Distribution

  	
   

  	
  1,238

  	
   

  	
  1,238

  	
   

  	
  1,238

  	
   

  	
  2,544

  	
   

  	
  2,544

  	
   

  	
  2,544

  	
   

  	
  2,862

  	
   

  	
  2,862

  	
   

  	
  2,862

  	
   

  	
  2,862

  	
   

  	
  2,862

  	
   

  	
  2,862

  	
   

  
	
  3. Seller
  Indirect Cost Advances repaid to Contractor

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  4. DRMS
  Distribution Payment [Net of Seller Indirect Costs]

  	
   

  	
  1,238

  	
   

  	
  1,238

  	
   

  	
  1,238

  	
   

  	
  2,544

  	
   

  	
  2,544

  	
   

  	
  2,544

  	
   

  	
  2,862

  	
   

  	
  2,862

  	
   

  	
  2,862

  	
   

  	
  2,862

  	
   

  	
  2,862

  	
   

  	
  2,862

  	
   

  
	
  5. Seller
  Indirect Cost Advance [funded by Contractor]

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  6. Seller
  Indirect Cost Advance Balance [funded by Contractor]

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  II. Recap
  of Payment & Distributions

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  A. Contractor
  Cashflows

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1. Payment to
  DRMS for Property Referred for Sale

  	
   

  	
  (183

  	
  )

  	
  (278

  	
  )

  	
  (278

  	
  )

  	
  (278

  	
  )

  	
  (278

  	
  )

  	
  (278

  	
  )

  	
  (278

  	
  )

  	
  (278

  	
  )

  	
  (278

  	
  )

  	
  (278

  	
  )

  	
  (278

  	
  )

  	
  (278

  	
  )

  
	
  2. Direct Cost
  (Advances) Repayments

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  3. Cumulative
  Direct Cost (Advances) Repayments

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  3. Seller
  Indirect Cost (Advances) Repayments

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  4. Distributions
  = 20% of Net Proceeds

  	
   

  	
  309

  	
   

  	
  309

  	
   

  	
  309

  	
   

  	
  636

  	
   

  	
  636

  	
   

  	
  636

  	
   

  	
  716

  	
   

  	
  716

  	
   

  	
  716

  	
   

  	
  716

  	
   

  	
  716

  	
   

  	
  716

  	
   

  
	
  5. Payment
  Deposit

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  6. Retention Fund
  (Payments) Credits

  	
   

  	
  (31

  	
  )

  	
  (31

  	
  )

  	
  (31

  	
  )

  	
  (64

  	
  )

  	
  (64

  	
  )

  	
  (40

  	
  )

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  7. Retention Fund
  - Balance

  	
   

  	
  (271

  	
  )

  	
  (302

  	
  )

  	
  (333

  	
  )

  	
  (397

  	
  )

  	
  (460

  	
  )

  	
  (500

  	
  )

  	
  (500

  	
  )

  	
  (500

  	
  )

  	
  (500

  	
  )

  	
  (500

  	
  )

  	
  (500

  	
  )

  	
  (500

  	
  )

  
	
  8. Contractor Net
  Cashflow - This Month

  	
   

  	
  95

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  294

  	
   

  	
  294

  	
   

  	
  316

  	
   

  	
  437

  	
   

  	
  437

  	
   

  	
  437

  	
   

  	
  437

  	
   

  	
  437

  	
   

  	
  437

  	
   

  
	
  9. Contractor
  Cumulative Net Cashflow

  	
   

  	
  1,194

  	
   

  	
  1,195

  	
   

  	
  1,195

  	
   

  	
  1,489

  	
   

  	
  1,783

  	
   

  	
  2,101

  	
   

  	
  2,538

  	
   

  	
  2,976

  	
   

  	
  3,413

  	
   

  	
  3,850

  	
   

  	
  4,287

  	
   

  	
  4,725

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  B. DRMS Cashflows

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1. Payment from
  Contractor for Property Referred for Sale

  	
   

  	
  183

  	
   

  	
  278

  	
   

  	
  278

  	
   

  	
  278

  	
   

  	
  278

  	
   

  	
  278

  	
   

  	
  278

  	
   

  	
  278

  	
   

  	
  278

  	
   

  	
  278

  	
   

  	
  278

  	
   

  	
  278

  	
   

  
	
  2. Gross
  Distribution Payments [80% of Net Proceeds]

  	
   

  	
  1,238

  	
   

  	
  1,238

  	
   

  	
  1,238

  	
   

  	
  2,544

  	
   

  	
  2,544

  	
   

  	
  2,544

  	
   

  	
  2,862

  	
   

  	
  2,862

  	
   

  	
  2,862

  	
   

  	
  2,862

  	
   

  	
  2,862

  	
   

  	
  2,862

  	
   

  
	
  3. Property
  Payments + Gross Distributions

  	
   

  	
  1,421

  	
   

  	
  1,516

  	
   

  	
  1,516

  	
   

  	
  2,822

  	
   

  	
  2,822

  	
   

  	
  2,822

  	
   

  	
  3,140

  	
   

  	
  3,140

  	
   

  	
  3,140

  	
   

  	
  3,140

  	
   

  	
  3,140

  	
   

  	
  3,140

  	
   

  
	
  4. Payment
  Deposit

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  5. Retention Fund
  (Payments) Credits

  	
   

  	
  31

  	
   

  	
  31

  	
   

  	
  31

  	
   

  	
  64

  	
   

  	
  64

  	
   

  	
  40

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  6. Less Seller
  Indirect Costs

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  7. DRMS Net
  Cashflow - This Month

  	
   

  	
  1,452

  	
   

  	
  1,547

  	
   

  	
  1,547

  	
   

  	
  2,886

  	
   

  	
  2,886

  	
   

  	
  2,862

  	
   

  	
  3,140

  	
   

  	
  3,140

  	
   

  	
  3,140

  	
   

  	
  3,140

  	
   

  	
  3,140

  	
   

  	
  3,140

  	
   

  
	
  8. DRMS
  Cumulative Cashflow

  	
   

  	
  29,727

  	
   

  	
  31,274

  	
   

  	
  32,821

  	
   

  	
  35,707

  	
   

  	
  38,593

  	
   

  	
  41,465

  	
   

  	
  44,596

  	
   

  	
  47,736

  	
   

  	
  50,876

  	
   

  	
  54,017

  	
   

  	
  57,157

  	
   

  	
  60,298

  	
   

  

 

	
  *

  	
   

  	
  This model
  distinguishes between advances from Contractor to Purchaser for Direct Costs
  and Seller Indirect Costs.

  
	
   

  	
   

  	
  The IFB text
  uses the collective term “Working Capital Advance” for both.

  

 

34.9

 

Table III-7(b)

CV-2 Illustrative 7 Year Financial Model

 

	
   

  	
   

  	
  Wind-Up

  	
   

  	
   

  	
   

  	
  Annual
  Summary

  	
   

  
	
   

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Month

  	
   

  	
  Total/

  	
   

  	
  Year 

  	
   

  	
  Year 

  	
   

  	
  Year 

  	
   

  	
  Year 

  	
   

  	
  Year 

  	
   

  	
  Year 

  	
   

  	
  Year

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  All
  Figures ($000s)

  	
   

  	
  85

  	
   

  	
  86

  	
   

  	
  87

  	
   

  	
  88

  	
   

  	
  Balances

  	
   

  	
  1

  	
   

  	
  2

  	
   

  	
  3

  	
   

  	
  4

  	
   

  	
  5

  	
   

  	
  6

  	
   

  	
  7

  	
   

  	
  Wind-Up

  	
   

  	
  Totals

  	
   

  
	
  I. Assumptions
  & Cash Flows

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  A. Purchaser Inventory

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1. Acq. Value of
  Property Referred for Sale

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  21,238,052

  	
   

  	
  2,222,777

  	
   

  	
  2,413,301

  	
   

  	
  3,669,446

  	
   

  	
  3,485,974

  	
   

  	
  3,311,675

  	
   

  	
  3,146,092

  	
   

  	
  2,988,787

  	
   

  	
  0

  	
   

  	
  21,238,052

  	
   

  
	
  2. Acq. Value of
  Property Sold

  	
   

  	
  249,066

  	
   

  	
  396,721

  	
   

  	
  396,721

  	
   

  	
  0

  	
   

  	
  21,238,052

  	
   

  	
  1,292,386

  	
   

  	
  2,445,055

  	
   

  	
  3,355,410

  	
   

  	
  3,531,842

  	
   

  	
  3,355,250

  	
   

  	
  3,187,488

  	
   

  	
  3,026,113

  	
   

  	
  1,042,509

  	
   

  	
  21,238,052

  	
   

  
	
  3. Acq. Value of
  Inventory

  	
   

  	
  793,443

  	
   

  	
  396,721

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  930,391

  	
   

  	
  898,637

  	
   

  	
  1,212,673

  	
   

  	
  1,166,805

  	
   

  	
  1,123,231

  	
   

  	
  1,081,835

  	
   

  	
  1,042,509

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  B. DRMS Baseline
  Proceeds (no sales delay, no phase-in)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1. DRMS Baseline
  Gross Proceeds

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  280,223

  	
   

  	
  33,024

  	
   

  	
  31,373

  	
   

  	
  47,703

  	
   

  	
  45,318

  	
   

  	
  43,052

  	
   

  	
  40,899

  	
   

  	
  38,854

  	
   

  	
  0

  	
   

  	
  280,223

  	
   

  
	
  2. DRMS Baseline
  Expenses

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  (140,111

  	
  )

  	
  (16,512

  	
  )

  	
  (15,686

  	
  )

  	
  (23,851

  	
  )

  	
  (22,659

  	
  )

  	
  (21,526

  	
  )

  	
  (20,450

  	
  )

  	
  (19,427

  	
  )

  	
  0

  	
   

  	
  (140,111

  	
  )

  
	
  2. DRMS Baseline
  Net Proceeds

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  140,111

  	
   

  	
  16,512

  	
   

  	
  15,686

  	
   

  	
  23,851

  	
   

  	
  22,659

  	
   

  	
  21,526

  	
   

  	
  20,450

  	
   

  	
  19,427

  	
   

  	
  0

  	
   

  	
  140,111

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  C. Purchaser Cashflows

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1. Purchaser
  Gross Proceeds

  	
   

  	
  4,209

  	
   

  	
  6,705

  	
   

  	
  6,705

  	
   

  	
  0

  	
   

  	
  349,320

  	
   

  	
  18,481

  	
   

  	
  37,056

  	
   

  	
  54,730

  	
   

  	
  59,688

  	
   

  	
  56,704

  	
   

  	
  53,869

  	
   

  	
  51,175

  	
   

  	
  17,618

  	
   

  	
  349,320

  	
   

  
	
  2. Total
  Purchaser Expenses

  	
   

  	
  (1,295

  	
  )

  	
  (2,063

  	
  )

  	
  (2,063

  	
  )

  	
  0

  	
   

  	
  (117,209

  	
  )

  	
  (11,858

  	
  )

  	
  (12,714

  	
  )

  	
  (19,081

  	
  )

  	
  (18,366

  	
  )

  	
  (17,447

  	
  )

  	
  (16,575

  	
  )

  	
  (15,746

  	
  )

  	
  (5,421

  	
  )

  	
  (117,209

  	
  )

  
	
  3. Purchaser Net
  Proceeds (Direct Cost Advance)

  	
   

  	
  2,914

  	
   

  	
  4,642

  	
   

  	
  4,642

  	
   

  	
  0

  	
   

  	
  232,111

  	
   

  	
  6,623

  	
   

  	
  24,342

  	
   

  	
  35,648

  	
   

  	
  41,323

  	
   

  	
  39,256

  	
   

  	
  37,294

  	
   

  	
  35,429

  	
   

  	
  12,197

  	
   

  	
  232,111

  	
   

  
	
  4. Purchaser
  Operating Cash Balance

  	
   

  	
  2,063

  	
   

  	
  2,063

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  1,101

  	
   

  	
  1,590

  	
   

  	
  1,590

  	
   

  	
  1,511

  	
   

  	
  1,295

  	
   

  	
  1,363

  	
   

  	
  1,295

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  5. Purchaser
  Working Capital Advance Balance

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  6. Available for
  Distribution

  	
   

  	
  2,146

  	
   

  	
  4,642

  	
   

  	
  6,705

  	
   

  	
  0

  	
   

  	
  232,111

  	
   

  	
  5,522

  	
   

  	
  23,852

  	
   

  	
  35,648

  	
   

  	
  41,402

  	
   

  	
  39,472

  	
   

  	
  37,225

  	
   

  	
  35,497

  	
   

  	
  13,492

  	
   

  	
  232,111

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  D. Seller Indirect Costs *

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1. Seller
  Indirect Costs

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  2. DRMS Gross
  Distribution

  	
   

  	
  1,717

  	
   

  	
  3,713

  	
   

  	
  5,364

  	
   

  	
  0

  	
   

  	
  185,689

  	
   

  	
  4,418

  	
   

  	
  19,082

  	
   

  	
  28,519

  	
   

  	
  33,122

  	
   

  	
  31,577

  	
   

  	
  29,780

  	
   

  	
  28,398

  	
   

  	
  10,794

  	
   

  	
  185,689

  	
   

  
	
  3. Seller
  Indirect Cost Advances repaid to Contractor

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  4. DRMS
  Distribution Payment [Net of Seller Indirect Costs]

  	
   

  	
  1,717

  	
   

  	
  3,713

  	
   

  	
  5,364

  	
   

  	
  0

  	
   

  	
  185,689

  	
   

  	
  4,418

  	
   

  	
  19,082

  	
   

  	
  28,519

  	
   

  	
  33,122

  	
   

  	
  31,577

  	
   

  	
  29,780

  	
   

  	
  28,398

  	
   

  	
  10,794

  	
   

  	
  185,689

  	
   

  
	
  5. Seller Indirect
  Cost Advance [funded by Contractor]

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  6. Seller
  Indirect Cost Advance Balance [funded by Contractor]

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  II.
  Recap of Payments & Distributions

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  A. Contractor Cashflows

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1. Payment to
  DRMS for Property Referred for Sale

  	
   

  	
  (227

  	
  )

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  (19,327

  	
  )

  	
  (1,830

  	
  )

  	
  (2,206

  	
  )

  	
  (3,244

  	
  )

  	
  (3,186

  	
  )

  	
  (3,027

  	
  )

  	
  (2,876

  	
  )

  	
  (2,732

  	
  )

  	
  (227

  	
  )

  	
  (19,327

  	
  )

  
	
  2. Direct Cost
  (Advances) Repayments

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  3. Cumulative
  Direct Cost (Advances) Repayments

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3. Seller
  Indirect Cost (Advances) Repayments

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  4. Distributions
  = 20% of Net Proceeds

  	
   

  	
  429

  	
   

  	
  928

  	
   

  	
  1,341

  	
   

  	
  0

  	
   

  	
  46,422

  	
   

  	
  1,104

  	
   

  	
  4,770

  	
   

  	
  7,130

  	
   

  	
  8,280

  	
   

  	
  7,894

  	
   

  	
  7,445

  	
   

  	
  7,099

  	
   

  	
  2,698

  	
   

  	
  46,422

  	
   

  
	
  5. Payment
  Deposit

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  500

  	
   

  	
  0

  	
   

  	
  (500

  	
  )

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  500

  	
   

  	
  0

  	
   

  
	
  6. Retention Fund
  (Payments) Credits

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  500

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  (240

  	
  )

  	
  (260

  	
  )

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  500

  	
   

  	
  0

  	
   

  
	
  7. Retention Fund
  - Balance

  	
   

  	
  (500

  	
  )

  	
  (500

  	
  )

  	
  (500

  	
  )

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  (240

  	
  )

  	
  (500

  	
  )

  	
  (500

  	
  )

  	
  (500

  	
  )

  	
  (500

  	
  )

  	
  (500

  	
  )

  	
  0

  	
   

  	
  0

  	
   

  
	
  8. Contractor Net
  Cashflow - This Month

  	
   

  	
  203

  	
   

  	
  928

  	
   

  	
  1,341

  	
   

  	
  1,000

  	
   

  	
  27,096

  	
   

  	
  (1,226

  	
  )

  	
  2,325

  	
   

  	
  3,626

  	
   

  	
  5,094

  	
   

  	
  4,868

  	
   

  	
  4,570

  	
   

  	
  4,368

  	
   

  	
  3,472

  	
   

  	
  27,096

  	
   

  
	
  9. Contractor
  Cumulative Net Cashflow

  	
   

  	
  23,826

  	
   

  	
  24,755

  	
   

  	
  26,096

  	
   

  	
  27,096

  	
   

  	
  27,096

  	
   

  	
  (1,226

  	
  )

  	
  1,099

  	
   

  	
  4,725

  	
   

  	
  9,819

  	
   

  	
  14,687

  	
   

  	
  19,256

  	
   

  	
  23,624

  	
   

  	
  27,096

  	
   

  	
  27,096

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  B. DRMS Cashflows

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1. Payment from
  Contractor for Property Referred for Sale

  	
   

  	
  227

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  19,327

  	
   

  	
  1,830

  	
   

  	
  2,206

  	
   

  	
  3,244

  	
   

  	
  3,186

  	
   

  	
  3,027

  	
   

  	
  2,876

  	
   

  	
  2,732

  	
   

  	
  227

  	
   

  	
  19,327

  	
   

  
	
  2. Gross
  Distribution Payments [80% of Net Proceeds]

  	
   

  	
  1,717

  	
   

  	
  3,713

  	
   

  	
  5,364

  	
   

  	
  0

  	
   

  	
  185,689

  	
   

  	
  4,416

  	
   

  	
  19,082

  	
   

  	
  28,519

  	
   

  	
  33,122

  	
   

  	
  31,577

  	
   

  	
  29,780

  	
   

  	
  28,398

  	
   

  	
  10,794

  	
   

  	
  185,689

  	
   

  
	
  3. Property
  Payments + Gross Distributions

  	
   

  	
  1,944

  	
   

  	
  3,713

  	
   

  	
  5,364

  	
   

  	
  0

  	
   

  	
  205,016

  	
   

  	
  6,248

  	
   

  	
  21,288

  	
   

  	
  31,763

  	
   

  	
  36,308

  	
   

  	
  34,604

  	
   

  	
  32,658

  	
   

  	
  31,129

  	
   

  	
  11,021

  	
   

  	
  205,016

  	
   

  
	
  4. Payment
  Deposit

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  (500

  	
  )

  	
  0

  	
   

  	
  500

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  (500

  	
  )

  	
  0

  	
   

  
	
  5. Retention Fund
  (Payments) Credits

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  (500

  	
  )

  	
  0

  	
   

  	
  0

  	
   

  	
  240

  	
   

  	
  260

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  (500

  	
  )

  	
  0

  	
   

  
	
  6. Less Seller
  Indirect Costs

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  7. DRMS Net
  Cashflow - This Month

  	
   

  	
  1,944

  	
   

  	
  3,713

  	
   

  	
  5,364

  	
   

  	
  (1,000

  	
  )

  	
  205,016

  	
   

  	
  6,748

  	
   

  	
  21,528

  	
   

  	
  32,023

  	
   

  	
  36,308

  	
   

  	
  34,604

  	
   

  	
  32,658

  	
   

  	
  31,129

  	
   

  	
  10,021

  	
   

  	
  205,016

  	
   

  
	
  8. DRMS
  Cumulative Cashflow

  	
   

  	
  196,939

  	
   

  	
  200,652

  	
   

  	
  206,016

  	
   

  	
  205,016

  	
   

  	
  205,016

  	
   

  	
  6,748

  	
   

  	
  28,275

  	
   

  	
  60,298

  	
   

  	
  96,606

  	
   

  	
  131,210

  	
   

  	
  163,866

  	
   

  	
  194,995

  	
   

  	
  205,016

  	
   

  	
  205,016

  	
   

  

 

	
  *

  	
   

  	
  This model
  distinguishes between advances from Contractor to Purchaser for Direct Costs
  and Seller Indirect Costs.

  
	
   

  	
   

  	
  The IFB text
  uses the collective term “Working Capital Advance” for both.

  

 

34.10

 

 

Figure III-9

Cumulative Profits to Contractor - Performance Period and Wind-Up

Varying Gross Proceeds Enhancement Factor, Property Disposition Path,
and Total Property Flow

 

 

34.11

 

Figure III-10

Cumulative Net Cashflows to Contractor - Initial 36 Months

Varying Gross Proceeds Enhancement Factor, Property Disposition Path,
and Total Property Flow

 

 

34.12

 

IV.           ITEM
DESCRIPTION

 

It has been
determined that the property with the combinations of FSC and DEMIL Code
presented in Table IV-1, after completion of the R/T/D process, is no longer
needed by the Federal Government. Table IV-1 assigns these combinations of FSC
and DEMIL Code into thirteen (13) Product Subpool Bid Categories. The thirteen
categories were created by ranking these combinations by historic DRMS Gross
ROR percentages and then grouping them into thirteen (13) Product Subpool
categories for the purpose of this sale.

 

CONTACT: Tina Aldrich, (6l6) 96l-7427

Various Conditions

DEMIL CODES A, B, Q as specified in Table
IV-l(a)

LOCATIONS: (See Loading Legend, Attachment
IV.)

 

Based on
historical data, and trends in the turn-in of surplus property by the
generating activities, DRMS has estimated the following volumes of property
available under this contract (estimates refer to Acquisition Value).

 

ESTIMATED TOTAL ACQUISITION VALUES

($Billions)

 

	
  Fiscal Year

  	
   

  	
  CV-2

  	
   

  	
  CV-1

  	
   

  
	
  2001 (partial)

  	
   

  	
   

  	
  1.000

  	
   

  	
  0.600

  	
   

  
	
  2002

  	
   

  	
   

  	
  2.500

  	
   

  	
  1.500

  	
   

  
	
  2003

  	
   

  	
   

  	
  2.400

  	
   

  	
  1.400

  	
   

  
	
  2004

  	
   

  	
   

  	
  2.200

  	
   

  	
  1.300

  	
   

  
	
  2005

  	
   

  	
   

  	
  2.000

  	
   

  	
  1.200

  	
   

  
	
  2006

  	
   

  	
   

  	
  1.900

  	
   

  	
  1.100

  	
   

  
	
  2007

  	
   

  	
   

  	
  1.800

  	
   

  	
  1.000

  	
   

  
	
  2008 (partial)

  	
   

  	
   

  	
  1.000

  	
   

  	
  0.600

  	
   

  

 

* CV-1 Items will be referred for sale to the CV-2 Purchaser before
September 2003 only in certain circumstances as set forth in the text.

 

These numbers
reflect the Government’s estimate of property that will be available under this
contract and do not reflect guarantees, nor minimum or maximum values of
property to be offered under this contract. See Product Pool and Property Flow,
Part II, Section B.

 

The data
presented in and accompanying this IFB present a sales history of the subject
FSCs and DEMIL Codes and other related information. Bidders are advised that
any sales history information is provided for informational purposes only.
Prior year property generations and sales data are not predictors of future
generations or sales. Potential bidders can review the overall DRMS inventory
by accessing the DRMS web site at http:\\www.drms.dla.mil.

 

35

 

Table IV-1

Product Pool Items(1) and Product Subpool
Bid Categories by FSC and DEMIL Code

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Product Subpools

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  CV-2 Items (CLIN 001:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  CV-1 Items (CLIN 

  002: CONUS and 

  DEMIL “A” Only;

  Non-CONUS DEMIL 

  “A” Items are within 

  CLIN 001)

  	
   

  	
  All Listed FSCs Non-CONUS, 

  All Listed FSCs DEMIL “B” or “Q” 

  CONUS and Non-CONUS)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Bid Category(2) Assigned by DEMIL Code

  	
   

  
	
  FSC No.

  	
   

  	
  Commodity 

  Code

  	
   

  	
  FSC Description

  	
   

  	
  DEMIL “A”

  	
   

  	
  DEMIL “A”

  	
   

  	
  DEMIL “B or Q”

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1005

  	
   

  	
  W

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  D

  	
   

  
	
  1010

  	
   

  	
  W

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1015

  	
   

  	
  W

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1020

  	
   

  	
  W

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1025

  	
   

  	
  W

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1030

  	
   

  	
  W

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1035

  	
   

  	
  W

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1040

  	
   

  	
  W

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1045

  	
   

  	
  W

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1055

  	
   

  	
  W

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1070

  	
   

  	
  W

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1075

  	
   

  	
  W

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1080

  	
   

  	
  W

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  B

  	
   

  	
  E

  	
   

  
	
  1090

  	
   

  	
  W

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  D

  	
   

  	
  E

  	
   

  
	
  1095

  	
   

  	
  W

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  B

  	
   

  	
  E

  	
   

  
	
  1105

  	
   

  	
  W

  	
   

  	
  Textual labels applied by

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1110

  	
   

  	
  W

  	
   

  	
  procurement authorities to these FSCs 

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1115

  	
   

  	
  W

  	
   

  	
  employ military ordinance 

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1120

  	
   

  	
  W

  	
   

  	
  terminology that would mislead 

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  1125

  	
   

  	
  W

  	
   

  	
  prospective offerors if read 

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1127

  	
   

  	
  W

  	
   

  	
  literally. 
  The items included in 

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1130

  	
   

  	
  W

  	
   

  	
  this sale from these FSCs are 

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1135

  	
   

  	
  W

  	
   

  	
  various types of equipment and 

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1140

  	
   

  	
  W

  	
   

  	
  materials that serve ordinary 

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1145

  	
   

  	
  W

  	
   

  	
  commercial or industrial 

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1190

  	
   

  	
  W

  	
   

  	
  purposes. 
  There is no weaponry 

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1195

  	
   

  	
  W

  	
   

  	
  or ordinance included in this sale 

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1210

  	
   

  	
  E

  	
   

  	
  from these FSCs or from any 

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1220

  	
   

  	
  E

  	
   

  	
  other FSC.

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1230

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1240

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1250

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  D

  	
   

  	
  E

  	
   

  
	
  1260

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1265

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1270

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1280

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1285

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1287

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1290

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1305

  	
   

  	
  W

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  C

  	
   

  

 

(1) “CV-2 Items” (CLIN 001) are to be referred for sale to the CV-2
Purchaser throughout the Performance Period at Delivery Points in CONUS,
Alaska, Guam, Hawaii and Puerto Rico. 
“CV-1 Items” (CLIN 002) will be referred for sale to the CV-2 Purchaser
in CONUS, if at all, only after the CV-1 Property Referral Date.  The Bid Categories assigned in the “CV-1
Items” column apply without regard to the location or timing of the referral
for sale to the CV-2 Purchaser.  Thus,
for example, DEMIL “A” Items in FSC No. 8130, “Reels and Spools,” are always
assigned to “CV-1 Bid Category A” whether referred at the beginning of the
Performance Period in Guam as a CV-2 Item or later in CONUS as a CV-1 Item.

 

(2) Product Subpool Bid Categories are assigned based upon FSC and
DEMIL Code. A “blank” means no Bid Category was assigned because the item was
not included in the respective sale contract within CONUS (CV-1 or CV-2).

 

35.1

 

Table IV-1

Product Pool Items(1) and Product  Subpool
Bid Categories by FSC and DEMIL Code

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Product Subpools

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  CV-2 Items (CLIN 001:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  CV-1 Items (CLIN 

  002: CONUS and 

  DEMIL “A” Only;

  Non-CONUS DEMIL 

  “A” Items are within 

  CLIN 001)

  	
   

  	
  All Listed FSCs Non-CONUS, 

  All Listed FSCs DEMIL “B” or “Q” 

  CONUS and Non-CONUS)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Bid Category(2) Assigned by DEMIL Code

  	
   

  
	
  FSC No.

  	
   

  	
  Commodity 

  Code

  	
   

  	
  FSC Description

  	
   

  	
  DEMIL “A”

  	
   

  	
  DEMIL “A”

  	
   

  	
  DEMIL “B or Q”

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1310

  	
   

  	
  W

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1315

  	
   

  	
  W

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  1320

  	
   

  	
  W

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  E

  	
   

  
	
  1325

  	
   

  	
  W

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1330

  	
   

  	
  W

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1336

  	
   

  	
  W

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1337

  	
   

  	
  W

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1338

  	
   

  	
  W

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1340

  	
   

  	
  W

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  1345

  	
   

  	
  W

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1350

  	
   

  	
  W

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1351

  	
   

  	
  W

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1355

  	
   

  	
  W

  	
   

  	
  Textual labels applied by 

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1356

  	
   

  	
  W

  	
   

  	
  procurement authorities to these

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1360

  	
   

  	
  W

  	
   

  	
  FSCs employ military ordinance 

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  1361

  	
   

  	
  W

  	
   

  	
  terminology that would mislead 

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1365

  	
   

  	
  W

  	
   

  	
  prospective offerors if read 

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1370

  	
   

  	
  W

  	
   

  	
  literally. The items included in 

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1375

  	
   

  	
  W

  	
   

  	
  this sale from these FCSs are 

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1376

  	
   

  	
  W

  	
   

  	
  various types of equipment and 

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1377

  	
   

  	
  W

  	
   

  	
  materials that serve ordinary

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1380

  	
   

  	
  (NONE)

  	
   

  	
  commercial or industrial 

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1385

  	
   

  	
  W

  	
   

  	
  purposes. There is no weaponry

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1386

  	
   

  	
  W

  	
   

  	
  or ordinance included in this sale

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1390

  	
   

  	
  W

  	
   

  	
  from these FSCs or from any 

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1395

  	
   

  	
  W

  	
   

  	
  other FSC.

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1398

  	
   

  	
  W

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  1410

  	
   

  	
  G

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1420

  	
   

  	
  G

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1425

  	
   

  	
  G

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1427

  	
   

  	
  G

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1430

  	
   

  	
  G

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1440

  	
   

  	
  G

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1450

  	
   

  	
  G

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1510

  	
   

  	
  A

  	
   

  	
  AIRCRAFT,
  FIXED WING

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1520

  	
   

  	
  A

  	
   

  	
  AIRCRAFT,
  ROTARY WING

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  C

  	
   

  
	
  1540

  	
   

  	
  A

  	
   

  	
  GLIDERS

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  1550

  	
   

  	
  A

  	
   

  	
  DRONES

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1560

  	
   

  	
  A

  	
   

  	
  AIRFRAME
  STRUCTURAL COMPONENTS

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  D

  	
   

  
	
  1610

  	
   

  	
  A

  	
   

  	
  AIRCRAFT
  PROPELLERS

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  E

  	
   

  
	
  1615

  	
   

  	
  A

  	
   

  	
  HELICOPTER
  ROTOR BLADES, DRIVE MECHANISMS AND COMPONENTS

  	
   

  	
   

  	
   

  	
  D

  	
   

  	
  D

  	
   

  
	
  1620

  	
   

  	
  A

  	
   

  	
  AIRCRAFT
  LANDING GEAR COMPONENTS

  	
   

  	
   

  	
   

  	
  D

  	
   

  	
  E

  	
   

  
	
  1630

  	
   

  	
  A

  	
   

  	
  AIRCRAFT
  WHEEL AND BRAKE SYSTEMS

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1650

  	
   

  	
  A

  	
   

  	
  AIRCRAFT
  HYDRAULIC, VACUUM AND DE-ICING SYSTEM COMPONENTS

  	
   

  	
   

  	
   

  	
  D

  	
   

  	
  E

  	
   

  
	
  1660

  	
   

  	
  A

  	
   

  	
  AIRCRAFT AIR
  CONDITION, HEATING AND PRESSURIZING EQUIPMENT 

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  D

  	
   

  
	
  1670

  	
   

  	
  T

  	
   

  	
  PARACHUTES:
  AERIAL PICK UP, DELIVERY, RECOVERY SYSTEMS

  	
   

  	
   

  	
   

  	
  D

  	
   

  	
  E

  	
   

  
	
  1680

  	
   

  	
  A

  	
   

  	
  MISCELLANEOUS
  AIRCRAFT ACCESSORIES AND COMPONENTS

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1710

  	
   

  	
  G

  	
   

  	
  AIRCRAFT
  ARRESTING, BARRIER AND BARRICADE EQUIPMENT

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1720

  	
   

  	
  G

  	
   

  	
  AIRCRAFT
  LAUNCHING EQUIPMENT

  	
   

  	
   

  	
   

  	
  D

  	
   

  	
  E

  	
   

  

 

35.2

Table IV-1

Product Pool Items(1) and Product  Subpool
Bid Categories by FSC and DEMIL Code

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Product Subpools

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  CV-2 Items (CLIN 001:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  CV-1 Items (CLIN 

  002: CONUS and 

  DEMIL “A” Only;

  Non-CONUS DEMIL 

  “A” Items are within 

  CLIN 001)

  	
   

  	
  All Listed FSCs Non-CONUS, 

  All Listed FSCs DEMIL “B” or “Q” 

  CONUS and Non-CONUS)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Bid Category(2) Assigned by DEMIL Code

  	
   

  
	
  FSC No.

  	
   

  	
  Commodity 

  Code

  	
   

  	
  FSC Description

  	
   

  	
  DEMIL “A”

  	
   

  	
  DEMIL “A”

  	
   

  	
  DEMIL “B or Q”

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1730

  	
   

  	
  G

  	
   

  	
  AIRCRAFT
  GROUND SERVICING EQUIPMENT

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  D

  	
   

  
	
  1740

  	
   

  	
  G

  	
   

  	
  AIRFIELD
  SPECIALZED TRUCKS AND TRAILERS

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  C

  	
   

  
	
  1810

  	
   

  	
  A

  	
   

  	
  SPACE
  VEHICLES

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1820

  	
   

  	
  G

  	
   

  	
  SPACE
  VEHICLE COMPONENTS

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1830

  	
   

  	
  G

  	
   

  	
  SPACE
  VEHICLE REMOTE CONTROL SYSTEMS

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1840

  	
   

  	
  G

  	
   

  	
  SPACE
  VEHICLE LAUNCHERS

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1850

  	
   

  	
  G

  	
   

  	
  SPACE
  VEHICLE HANDLING AND SERVICING EQUIPMENT

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1860

  	
   

  	
  G

  	
   

  	
  SPACE
  SURVIVAL EQUIPMENT

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  E

  	
   

  
	
  1905

  	
   

  	
  D

  	
   

  	
  COMBAT SHIPS
  AND LANDING VESSELS

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  C

  	
   

  
	
  1910

  	
   

  	
  D

  	
   

  	
  TRANSPORT
  VESSELS, PASSENGER AND TROOP 

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1915

  	
   

  	
  D

  	
   

  	
  CARGO AND
  TANKER VESSELS

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  1920

  	
   

  	
  D

  	
   

  	
  FISHING
  VESSELS

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  1925

  	
   

  	
  D

  	
   

  	
  SPECIAL
  SERVICE VESSELS

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  C

  	
   

  
	
  1930

  	
   

  	
  D

  	
   

  	
  BARGES AND
  LIGHTERS, CARGO

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  1935

  	
   

  	
  D

  	
   

  	
  BARGES AND
  LIGHTERS, SPECIAL PURPOSE

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  1940

  	
   

  	
  U

  	
   

  	
  SMALL CRAFT

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  D

  	
   

  
	
  1945

  	
   

  	
  D

  	
   

  	
  PONTOONS AND
  FLOATING DOCKS

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  1950

  	
   

  	
  D

  	
   

  	
  FLOATING
  DRYDOCKS

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  1955

  	
   

  	
  D

  	
   

  	
  [ILLEGIBLE]

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  1990

  	
   

  	
  D

  	
   

  	
  MISCELLANEOUS
  VESSELS

  	
   

  	
   

  	
   

  	
  B

  	
   

  	
  C

  	
   

  
	
  2010

  	
   

  	
  D

  	
   

  	
  SHIP AND
  BOAT PROPULSION COMPONENTS

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  2020

  	
   

  	
  D

  	
   

  	
  RIGGING AND
  RIGGING GEAR

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  2030

  	
   

  	
  D

  	
   

  	
  DECK
  MACHINERY

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  2040

  	
   

  	
  D

  	
   

  	
  MARINE
  HARDWARE AND HULL ITEMS

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  2050

  	
   

  	
  D

  	
   

  	
  BUOYS

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  2060

  	
   

  	
  D

  	
   

  	
  COMMERCIAL
  FISHING EQUIPMENT

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  2090

  	
   

  	
  D

  	
   

  	
  MISCELLANEOUS
  SHIP AND MARINE EQUIPMENT

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  2210

  	
   

  	
  C

  	
   

  	
  LOCOMOTIVES

  	
   

  	
  B

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  2220

  	
   

  	
  C

  	
   

  	
  RAIL CARS

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  2230

  	
   

  	
  C

  	
   

  	
  RIGHT-OF-WAY
  CONSTRUCTION AND MAINTENANCE EQUIPMENT, RAILROAD

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  2240

  	
   

  	
  C

  	
   

  	
  LOCOMOTIVE
  AND RAIL CAR ACCESSORIES AND COMPONENTS

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  2250

  	
   

  	
  C

  	
   

  	
  TRACK
  MATERIALS, RAILROAD

  	
   

  	
  B

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  2305

  	
   

  	
  V

  	
   

  	
  GROUND
  EFFECT VEHICLES

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  E

  	
   

  
	
  2310

  	
   

  	
  V

  	
   

  	
  PASSENGER
  MOTOR VEHICLES

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  C

  	
   

  
	
  2320

  	
   

  	
  V

  	
   

  	
  TRUCKS AND
  TRUCK TRACTORS, WHEELED 

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  C

  	
   

  
	
  2330

  	
   

  	
  V

  	
   

  	
  TRAILERS

  	
   

  	
   

  	
   

  	
  B

  	
   

  	
  C

  	
   

  
	
  2340

  	
   

  	
  V

  	
   

  	
  MOTORCYCLES,
  MOTOR SCOOTERS AND BICYCLES

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  C

  	
   

  
	
  2350

  	
   

  	
  V

  	
   

  	
  COMBAT,
  ASSAULT AND TACTICAL VEHICLES, TRACKED

  	
   

  	
   

  	
   

  	
  D

  	
   

  	
  C

  	
   

  
	
  2410

  	
   

  	
  C

  	
   

  	
  TRACTORS,
  FULL TRACK, LOW SPEED

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  2420

  	
   

  	
  C

  	
   

  	
  TRACTORS,
  WHEELED

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  2430

  	
   

  	
  C

  	
   

  	
  TRACTORS,
  TRACK LAYING, HIGH SPEED

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  2510

  	
   

  	
  V

  	
   

  	
  VEHICULAR
  CAR, BODY AND FRAME STRUCTURAL COMPONENTS

  	
   

  	
   

  	
   

  	
  B

  	
   

  	
  D

  	
   

  
	
  2520

  	
   

  	
  V

  	
   

  	
  VEHICULAR POWER
  TRANSMISSION COMPONENTS

  	
   

  	
   

  	
   

  	
  B

  	
   

  	
  E

  	
   

  
	
  2530

  	
   

  	
  V

  	
   

  	
  VEHICULAR
  BRAKE, STEERING, AXLE, WHEEL AND TRACT COMPONENTS

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  C

  	
   

  
	
  2540

  	
   

  	
  V

  	
   

  	
  VEHICULAR
  FURNITURE AND ACCESSORIES

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  E

  	
   

  
	
  2541

  	
   

  	
  (NONE)

  	
   

  	
  WEAPONS
  SYSTEMS SPECIFIC VEHICULAR ACCESSORIES

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  E

  	
   

  
	
  2590

  	
   

  	
  V

  	
   

  	
  MISCELLANEOUS
  VEHICULAR COMPONENTS

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  E

  	
   

  
	
  2610

  	
   

  	
  V

  	
   

  	
  TIRES AND
  TUBES, PNEUMATIC, EXCEPT AIRCRAFT

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  2620

  	
   

  	
  V

  	
   

  	
  TIRES AND
  TUBES, PNEUMATIC, AIRCRAFT

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  C

  	
   

  

 

35.3

Table IV-1

Product Pool Items(1) and Product  Subpool
Bid Categories by FSC and DEMIL Code

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Product
  Subpools

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  CV-2 Items (CLIN 001:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  CV-1 Items (CLIN 

  002: CONUS and 

  DEMIL “A” Only;

  Non-CONUS DEMIL 

  “A” Items are within 

  CLIN 001)

  	
   

  	
  All Listed FSCs Non-CONUS, 

  All Listed FSCs DEMIL “B” or “Q” 

  CONUS and Non-CONUS)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Bid Category(2) Assigned by DEMIL Code

  	
   

  
	
  FSC No.

  	
   

  	
  Commodity 

  Code

  	
   

  	
  FSC Description

  	
   

  	
  DEMIL “A”

  	
   

  	
  DEMIL “A”

  	
   

  	
  DEMIL “B or Q”

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2630

  	
   

  	
  V

  	
   

  	
  TIRES, SOLID
  AND CUSHION

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  2640

  	
   

  	
  V

  	
   

  	
  TIRE
  REBUILDING AND TIRE AND TUBE REPAIR

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  E

  	
   

  
	
  2805

  	
   

  	
  V

  	
   

  	
  GASOLINE
  RECIPROCATING ENGINES, EXCEPT AIRCRAFT AND COMPONENTS

  	
   

  	
   

  	
   

  	
  B

  	
   

  	
  D

  	
   

  
	
  2810

  	
   

  	
  A

  	
   

  	
  GASOLINE
  RECIPROCATING ENGINES, AIRCRAFT AND COMPONENTS

  	
   

  	
   

  	
   

  	
  B

  	
   

  	
  D

  	
   

  
	
  2815

  	
   

  	
  V

  	
   

  	
  DIESEL
  ENGINES AND COMPONENTS

  	
   

  	
   

  	
   

  	
  B

  	
   

  	
  C

  	
   

  
	
  2820

  	
   

  	
  D

  	
   

  	
  STEAM
  ENGINES, RECIPROCATING AND COMPONENTS

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  2825

  	
   

  	
  D

  	
   

  	
  STEAM
  TURBINES AND COMPONENTS

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  2830

  	
   

  	
  D

  	
   

  	
  WATER
  TURBINES AND WATER WHEELS AND COMPONENTS

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  2835

  	
   

  	
  A

  	
   

  	
  GAS TURBINES
  AND JET ENGINES, EXCEPT AIRCRAFT AND COMPONENTS

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  D

  	
   

  
	
  2840

  	
   

  	
  A

  	
   

  	
  GAS TURBINES
  AND JET ENGINES, AIRCRAFT AND COMPONENTS

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  D

  	
   

  
	
  2845

  	
   

  	
  A

  	
   

  	
  ROCKET
  ENGINES AND COMPONENTS

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  2850

  	
   

  	
  V

  	
   

  	
  GASOLINE
  ROTARY ENGINES AND COMPONENTS

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  2895

  	
   

  	
  V

  	
   

  	
  MISCELLANEOUS
  ENGINES AND COMPONENTS

  	
   

  	
   

  	
   

  	
  D

  	
   

  	
  E

  	
   

  
	
  2910

  	
   

  	
  V

  	
   

  	
  ENGINE FUEL
  SYSTEM COMPONENTS, NONAIRCRAFT

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  D

  	
   

  
	
  2915

  	
   

  	
  A

  	
   

  	
  ENGINE FUEL
  SYSTEM COMPONENTS, AIRCRAFT

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  2920

  	
   

  	
  V

  	
   

  	
  ENGINE
  ELECTRICAL SYSTEM COMPONENTS, NONAIRCRAFT

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  C

  	
   

  
	
  2925

  	
   

  	
  A

  	
   

  	
  ENGINE
  ELECTRICAL SYSTEM COMPONENTS, AIRCRAFT

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  C

  	
   

  
	
  2930

  	
   

  	
  V

  	
   

  	
  ENGINE
  COOLING SYSTEM COMPONENTS, NONAIRCRAFT

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  E

  	
   

  
	
  2935

  	
   

  	
  A

  	
   

  	
  ENGINE
  COOLING SYSTEM COMPONENTS, AIRCRAFT

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  D

  	
   

  
	
  2940

  	
   

  	
  V

  	
   

  	
  ENGINE AIR
  AND OIL FILTERS, STRAINERS AND CLEANERS, NONAIRCRAFT

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  E

  	
   

  
	
  2945

  	
   

  	
  A

  	
   

  	
  ENGINE AIR
  AND OIL FILTERS, STRAINERS AND CLEANERS, AIRCRAFT

  	
   

  	
   

  	
   

  	
  B

  	
   

  	
  C

  	
   

  
	
  2950

  	
   

  	
  A

  	
   

  	
  TURBOSUPERCHARGERS

  	
   

  	
   

  	
   

  	
  B

  	
   

  	
  E

  	
   

  
	
  2990

  	
   

  	
  V

  	
   

  	
  MISCELLANEOUS
  ENGINE ACCESSORIES, NONAIRCRAFT

  	
   

  	
   

  	
   

  	
  D

  	
   

  	
  D

  	
   

  
	
  2995

  	
   

  	
  A

  	
   

  	
  MISCELLANEOUS
  ENGINE ACCESSORIES, AIRCRAFT

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  D

  	
   

  
	
  3010

  	
   

  	
  I

  	
   

  	
  TORQUE
  CONVERTERS AND SPEED CHANGERS

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3020

  	
   

  	
  I

  	
   

  	
  GEARS,
  PULLEYS, SPROCKETS AND TRANSMISSION CHAIN

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  C

  	
   

  
	
  3030

  	
   

  	
  I

  	
   

  	
  BELTING,
  DRIVE BELTS, FAN BELTS AND ACCESSORIES

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3040

  	
   

  	
  I

  	
   

  	
  MISCELLANEOUS
  POWER TRANSMISSION EQUIPMENT

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  C

  	
   

  
	
  3110

  	
   

  	
  B

  	
   

  	
  BEARINGS,
  ANTIFRICTION, UNMOUNTED

  	
   

  	
  B

  	
   

  	
   

  	
   

  	
  C

  	
   

  
	
  3120

  	
   

  	
  B

  	
   

  	
  BEARINGS,
  PLAIN, UNMOUNTED

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  C

  	
   

  
	
  3130

  	
   

  	
  B

  	
   

  	
  BEARINGS,
  MOUNTED

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  C

  	
   

  
	
  3210

  	
   

  	
  I

  	
   

  	
  SAWMILL AND
  PLANING MILL MACHINERY

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3220

  	
   

  	
  I

  	
   

  	
  WOODWORKING
  MACHINES

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3230

  	
   

  	
  I

  	
   

  	
  TOOLS AND
  ATTACHMENTS FOR WOODWORKING MACHINERY

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  C

  	
   

  
	
  3405

  	
   

  	
  I

  	
   

  	
  SAWS AND
  FILING MACHINES

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3408

  	
   

  	
  I

  	
   

  	
  MACHINE
  CENTERS AND WAY-TYPE MACHINES

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3410

  	
   

  	
  I

  	
   

  	
  ELECTRICAL
  AND ULTRASONIC EROSION MACHINES

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3411

  	
   

  	
  I

  	
   

  	
  BORING
  MACHINES

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3412

  	
   

  	
  I

  	
   

  	
  BROACHING
  MACHINES

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3413

  	
   

  	
  I

  	
   

  	
  DRILLING AND
  TAPPING MACHINES

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  C

  	
   

  
	
  3414

  	
   

  	
  I

  	
   

  	
  GEAR CUTTING
  AND FINISHING MACHINES

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3415

  	
   

  	
  I

  	
   

  	
  GRINDING
  MACHINES

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  C

  	
   

  
	
  3416

  	
   

  	
  I

  	
   

  	
  LATHES

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  C

  	
   

  
	
  3417

  	
   

  	
  I

  	
   

  	
  MILLING
  MACHINES

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  D

  	
   

  
	
  3418

  	
   

  	
  I

  	
   

  	
  PLANERS AND
  SHAPERS

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  C

  	
   

  
	
  3419

  	
   

  	
  I

  	
   

  	
  MISCELLANEOUS
  MACHINE TOOLS

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  C

  	
   

  
	
  3422

  	
   

  	
  I

  	
   

  	
  ROLLING
  MILLS AND DRAWING MACHINES

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3424

  	
   

  	
  I

  	
   

  	
  METAL HEAT
  TREATING AND NON-THERMAL TREATING EQUIPMENT

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  C

  	
   

  
	
  3426

  	
   

  	
  I

  	
   

  	
  METAL
  FINISHING EQUIPMENT

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  

 

35.4

Table IV-1

Product Pool Items(1) and Product  Subpool
Bid Categories by FSC and DEMIL Code

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Product
  Subpools

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  CV-2 Items (CLIN 001:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  CV-1 Items (CLIN 

  002: CONUS and 

  DEMIL “A” Only;

  Non-CONUS DEMIL 

  “A” Items are within 

  CLIN 001)

  	
   

  	
  All Listed FSCs Non-CONUS, 

  All Listed FSCs DEMIL “B” or “Q” 

  CONUS and Non-CONUS)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Bid Category(2) Assigned by DEMIL Code

  	
   

  
	
  FSC No.

  	
   

  	
  Commodity 

  Code

  	
   

  	
  FSC Description

  	
   

  	
  DEMIL “A”

  	
   

  	
  DEMIL “A”

  	
   

  	
  DEMIL “B or Q”

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3431

  	
   

  	
  I

  	
   

  	
  ELECTRIC ARC
  WELDING EQUIPMENT

  	
   

  	
  B

  	
   

  	
   

  	
   

  	
  C

  	
   

  
	
  3432

  	
   

  	
  I

  	
   

  	
  ELECTRIC
  RESISTANCE WELDING EQUIPMENT

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3433

  	
   

  	
  I

  	
   

  	
  GAS WELDING,
  HEAT CUTTING AND METALLIZING EQUIPMENT

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3436

  	
   

  	
  I

  	
   

  	
  WELDING
  POSITIONERS AND MANIPULATORS

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3438

  	
   

  	
  I

  	
   

  	
  MISCELLANEOUS
  WELDING EQUIPMENT

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3439

  	
   

  	
  I

  	
   

  	
  MISCELLANEOUS
  WELDING, SOLDERING BRAZING SUPPLIESACCESSORIES

  	
   

  	
  B

  	
   

  	
   

  	
   

  	
  C

  	
   

  
	
  3441

  	
   

  	
  I

  	
   

  	
  BENDING AND
  FORMING MACHINES

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3442

  	
   

  	
  I

  	
   

  	
  HYDRAULIC
  AND PNEUMATIC PRESSES, POWER DRIVEN

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3443

  	
   

  	
  I

  	
   

  	
  MECHANICAL
  PRESSES, POWER DRIVEN

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  C

  	
   

  
	
  3444

  	
   

  	
  I

  	
   

  	
  MANUAL
  PRESSES

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  C

  	
   

  
	
  3445

  	
   

  	
  I

  	
   

  	
  PUNCHING AND
  SHEARING MACHINES

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3446

  	
   

  	
  I

  	
   

  	
  FORGING
  MACHINERY AND HAMMERS

  	
   

  	
  B

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3447

  	
   

  	
  I

  	
   

  	
  WIRE AND
  METAL RIBBON FORMING MACHINES

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3448

  	
   

  	
  I

  	
   

  	
  RIVETING
  MACHINES

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3449

  	
   

  	
  I

  	
   

  	
  MISCELLANEOUS
  SECONDARY METAL FORMING AND CUTTING MACHINES

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3450

  	
   

  	
  I

  	
   

  	
  MACHINE
  TOOLS, PORTABLE

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  C

  	
   

  
	
  3455

  	
   

  	
  I

  	
   

  	
  CUTTING
  TOOLS FOR MACHINE TOOLS

  	
   

  	
  B

  	
   

  	
   

  	
   

  	
  C

  	
   

  
	
  3456

  	
   

  	
  I

  	
   

  	
  CUTTING AND
  FORMING TOOLS FOR SECONDARY METALWORKING MACHINERY

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  C

  	
   

  
	
  3460

  	
   

  	
  I

  	
   

  	
  MACHINE TOOL
  ACCESSORIES

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3461

  	
   

  	
  I

  	
   

  	
  ACCESSORIES
  FOR SECONDARY METALWORKING MACHINERY

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  C

  	
   

  
	
  3465

  	
   

  	
  I

  	
   

  	
  PRODUCTION
  JIGS, FIXTURES AND TEMPLATES

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  C

  	
   

  
	
  3470

  	
   

  	
  I

  	
   

  	
  MACHINE SHOP
  SETS, KITS AND OUTFITS

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  C

  	
   

  
	
  3510

  	
   

  	
  J

  	
   

  	
  LAUNDRY AND
  DRY CLEANING EQUIPMENT

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3520

  	
   

  	
  J

  	
   

  	
  SHOE
  REPAIRING EQUIPMENT

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3530

  	
   

  	
  J

  	
   

  	
  INDUSTRIAL
  SEWING MACHINES AND MOBILE TEXTILE REPAIR SHOPS

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3540

  	
   

  	
  J

  	
   

  	
  WRAPPING AND
  PACKAGING MACHINERY

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3550

  	
   

  	
  J

  	
   

  	
  VENDING AND
  COIN OPERATED MACHINES

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3590

  	
   

  	
  J

  	
   

  	
  MISCELLANEOUS
  SERVICE AND TRADE EQUIPMENT

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3605

  	
   

  	
  J

  	
   

  	
  FOOD
  PRODUCTS MACHINERY AND EQUIPMENT

  	
   

  	
  B

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3610

  	
   

  	
  J

  	
   

  	
  PRINTING,
  DUPLICATING AND BOOKBINDING EQUIPMENT

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  C

  	
   

  
	
  3611

  	
   

  	
  J

  	
   

  	
  INDUSTRIAL
  MARKING MACHINES

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3615

  	
   

  	
  J

  	
   

  	
  PULP AND
  PAPER INDUSTRIES MACHINERY

  	
   

  	
  B

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3620

  	
   

  	
  J

  	
   

  	
  RUBBER AND
  PLASTICS WORKING MACHINERY

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3625

  	
   

  	
  J

  	
   

  	
  TEXTILE
  INDUSTRIES MACHINERY

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3630

  	
   

  	
  J

  	
   

  	
  CLAY AND
  CONCRETE PRODUCTS INDUSTRIES MACHINERY

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3635

  	
   

  	
  J

  	
   

  	
  CRYSTAL AND
  GLASS INDUSTRIES MACHINERY

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3640

  	
   

  	
  J

  	
   

  	
  TOBACCO
  MANUFACTURING MACHINERY

  	
   

  	
  B

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3645

  	
   

  	
  J

  	
   

  	
  LEATHER
  TANNING AND LEATHER WORKING INDUSTRIES MACHINERY

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3650

  	
   

  	
  J

  	
   

  	
  CHEMICAL AND
  PHARMACEUTICAL PRODUCTS MANUFACTURING MACHINERY

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3655

  	
   

  	
  J

  	
   

  	
  GAS
  GENERATING AND DISPENSING SYSTEMS, FIXED OR MOBILE

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  C

  	
   

  
	
  3660

  	
   

  	
  J

  	
   

  	
  INDUSTRIAL
  SIZE REDUCTION MACHINERY

  	
   

  	
  B

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3670

  	
   

  	
  J

  	
   

  	
  SPEC.
  SEMICONDUCTOR, MICROCIRCUIT, PRINTED CIRCUIT BOARD MFG EQUIP

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3680

  	
   

  	
  I

  	
   

  	
  FOUNDRY
  MACHINERY, RELATED EQUIPMENT AND SUPPLIES

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3685

  	
   

  	
  J

  	
   

  	
  SPECIALIZED
  METAL CONTAINER MFG MACHINERY AND RELATED EQUIPMENT

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3690

  	
   

  	
  J

  	
   

  	
  SPECIALIZED
  AMMO AND ORDINANCE MACHINERY AND RELATED EQUIPMENT

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  D

  	
   

  
	
  3693

  	
   

  	
  J

  	
   

  	
  INDUSTRIAL
  ASSEMBLY MACHINES

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3694

  	
   

  	
  J

  	
   

  	
  CLEAN WORK
  STATIONS, CONTROLLED ENVIRONMENT AND RELATED EQUIP

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  C

  	
   

  
	
  3695

  	
   

  	
  J

  	
   

  	
  MISC SPECIAL
  INDUSTRY MACHINERY

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  D

  	
   

  
	
  3710

  	
   

  	
  H

  	
   

  	
  SOIL
  PREPARATION EQUIPMENT

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  

 

35.5

Table IV-1

Product Pool Items(1) and Product  Subpool
Bid Categories by FSC and DEMIL Code

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Product Subpools

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  CV-2 Items (CLIN 001:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  CV-1 Items (CLIN 

  002: CONUS and 

  DEMIL “A” Only;

  Non-CONUS DEMIL 

  “A” Items are within 

  CLIN 001)

  	
   

  	
  All Listed FSCs Non-CONUS, 

  All Listed FSCs DEMIL “B” or “Q” 

  CONUS and Non-CONUS)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Bid Category(2) Assigned by DEMIL Code

  	
   

  
	
  FSC No.

  	
   

  	
  Commodity 

  Code

  	
   

  	
  FSC Description

  	
   

  	
  DEMIL “A”

  	
   

  	
  DEMIL “A”

  	
   

  	
  DEMIL “B or Q”

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3720

  	
   

  	
  H

  	
   

  	
  HARVESTING
  EQUIPMENT

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3730

  	
   

  	
  H

  	
   

  	
  DAIRY,
  POULTRY AND LIVESTOCK EQUIPMENT

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3740

  	
   

  	
  J

  	
   

  	
  PEST,
  DISEASE AND FROST CONTROL EQUIPMENT

  	
   

  	
  B

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3750

  	
   

  	
  X

  	
   

  	
  GARDENING
  IMPLEMENTS AND TOOLS

  	
   

  	
   

  	
   

  	
  B

  	
   

  	
  E

  	
   

  
	
  3760

  	
   

  	
  H

  	
   

  	
  ANIMAL DRAWN
  VEHICLES AND FARM TRAILERS

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3770

  	
   

  	
  H

  	
   

  	
  SADDLERY,
  HARNESS, WHIPS AND RELATED ANIMAL FURNISHINGS

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3805

  	
   

  	
  C

  	
   

  	
  EARTH MOVING
  AND EXCAVATING EQUIPMENT

  	
   

  	
  B

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3810

  	
   

  	
  C

  	
   

  	
  CRANES AND
  CRANE-SHOVELS

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3815

  	
   

  	
  C

  	
   

  	
  CRANE AND
  CRANE-SHOVEL ATTACHMENTS

  	
   

  	
  B

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3820

  	
   

  	
  C

  	
   

  	
  MINING, ROCK
  DRILLING, EARTH BORING AND RELATED EQUIPMENT

  	
   

  	
  B

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3825

  	
   

  	
  C

  	
   

  	
  ROAD
  CLEARING AND CLEANING EQUIPMENT

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3830

  	
   

  	
  C

  	
   

  	
  TRUCK AND
  TRACTOR ATTACHMENTS

  	
   

  	
  B

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3835

  	
   

  	
  C

  	
   

  	
  PETROLEUM
  PRODUCTION AND DISTRIBUTION EQUIPMENT

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3895

  	
   

  	
  C

  	
   

  	
  MISC
  CONSTRUCTION EQUIPMENT

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3910

  	
   

  	
  H

  	
   

  	
  CONVEYORS

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3915

  	
   

  	
  H

  	
   

  	
  MATERIALS
  FEEDERS

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3920

  	
   

  	
  H

  	
   

  	
  MATERIALS
  HANDLING EQUIPMENT, NONSELF-PROPELLED

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3930

  	
   

  	
  V

  	
   

  	
  WAREHOUSE
  TRUCKS AND TRACTORS, SELF-PROPELLED

  	
   

  	
  B

  	
   

  	
   

  	
   

  	
  C

  	
   

  
	
  3940

  	
   

  	
  H

  	
   

  	
  BLOCKS,
  TACKLE, RIGGING AND SLINGS

  	
   

  	
  B

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3950

  	
   

  	
  H

  	
   

  	
  WINCHES,
  HOISTS, CRANES AND DERRICKS

  	
   

  	
  B

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  3960

  	
   

  	
  H

  	
   

  	
  ELEVATORS
  AND ESCALATORS

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  C

  	
   

  
	
  3990

  	
   

  	
  H

  	
   

  	
  MISC
  MATERIALS HANDLING EQUIPMENT

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  D

  	
   

  
	
  4010

  	
   

  	
  D

  	
   

  	
  CHAIN AND
  WIRE ROPE

  	
   

  	
  B

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  4020

  	
   

  	
  D

  	
   

  	
  FIBER ROPE,
  CORDAGE AND TWINE

  	
   

  	
  B

  	
   

  	
   

  	
   

  	
  C

  	
   

  
	
  4030

  	
   

  	
  D

  	
   

  	
  FITTINGS FOR
  ROPE, CABLE AND CHAIN

  	
   

  	
  B

  	
   

  	
   

  	
   

  	
  C

  	
   

  
	
  4110

  	
   

  	
  P

  	
   

  	
  REFRIGERATION
  EQUIPMENT

  	
   

  	
  B

  	
   

  	
   

  	
   

  	
  C

  	
   

  
	
  4120

  	
   

  	
  P

  	
   

  	
  AIR
  CONDITIONING EQUIPMENT

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  D

  	
   

  
	
  4130

  	
   

  	
  P

  	
   

  	
  REFRIGERATION
  AND AIR CONDITIONING COMPONENTS

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  4140

  	
   

  	
  P

  	
   

  	
  FANS, AIR
  CIRCULATORS AND BLOWER EQUIPMENT

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  4150

  	
   

  	
  P

  	
   

  	
  VORTEX TUBES
  AND OTHER RELATED COOLING TUBES

  	
   

  	
  B

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  4210

  	
   

  	
  J

  	
   

  	
  FIRE
  FIGHTING EQUIPMENT

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  D

  	
   

  
	
  4220

  	
   

  	
  D

  	
   

  	
  MARINE
  LIFESAVING AND DIVING EQUIPMENT

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  4230

  	
   

  	
  J

  	
   

  	
  DECONTAMINATING
  AND IMPREGNATING EQUIPMENT

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  4235

  	
   

  	
  J

  	
   

  	
  HAZARDOUS
  MATERIAL SPILL CONTAINMENT AND CLEAN-UP EQUIPMENT MATERIAL

  	
   

  	
  B

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  4240

  	
   

  	
  J

  	
   

  	
  SAFETY AND
  RESCUE EQUIPMENT

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  4250

  	
   

  	
  J

  	
   

  	
  RECYCLING
  AND RECLAMATION EQUIPMENT

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  4310

  	
   

  	
  P

  	
   

  	
  COMPRESSORS
  AND VACUUM PUMPS

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  4320

  	
   

  	
  P

  	
   

  	
  POWER AND
  HAND PUMPS

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  4330

  	
   

  	
  P

  	
   

  	
  CENTRIFUGALS,
  SEPARATORS AND PRESSURE AND VACUUM FILTERS

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  4410

  	
   

  	
  P

  	
   

  	
  INDUSTRIAL
  BOILERS

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  4420

  	
   

  	
  P

  	
   

  	
  HEAT
  EXCHANGERS AND STEAM CONDENSERS

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  4430

  	
   

  	
  I

  	
   

  	
  INDUSTRIAL
  FURNACES, KILNS, LEHRS AND OVENS

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  4440

  	
   

  	
  P

  	
   

  	
  DRIERS,
  DEHYDRATORS AND ANHYDRATORS

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  4460

  	
   

  	
  P

  	
   

  	
  AIR
  PURIFICATION EQUIPMENT

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  C

  	
   

  
	
  4470

  	
   

  	
  W

  	
   

  	
  NUCLEAR
  REACTORS

  	
   

  	
   

  	
   

  	
  B

  	
   

  	
  E

  	
   

  
	
  4510

  	
   

  	
  P

  	
   

  	
  PLUMBING
  FIXTURES AND ACCESSORIES

  	
   

  	
  B

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  4520

  	
   

  	
  P

  	
   

  	
  SPACE
  HEATING EQUIPMENT AND DOMESTIC WATER HEATERS

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  C

  	
   

  
	
  4530

  	
   

  	
  P

  	
   

  	
  FUEL BURNING
  EQUIPMENT UNITS

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  4540

  	
   

  	
  P

  	
   

  	
  MISC
  PLUMING, HEATING AND SANITATION EQUIPMENT

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  

 

35.6

 

Table IV-1

Product Pool Items(1) and Product  Subpool
Bid Categories by FSC and DEMIL Code

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Product Subpools

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  CV-2 Items (CLIN 001:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  CV-1 Items (CLIN 

  002: CONUS and 

  DEMIL “A” Only;

  Non-CONUS DEMIL 

  “A” Items are within 

  CLIN 001)

  	
   

  	
  All Listed FSCs Non-CONUS, 

  All Listed FSCs DEMIL “B” or “Q” 

  CONUS and Non-CONUS)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Bid Category(2) Assigned by DEMIL  Code

  	
   

  
	
  FSC No.

  	
   

  	
  Commodity 

  Code

  	
   

  	
  FSC Description

  	
   

  	
  DEMIL “A”

  	
   

  	
  DEMIL “A”

  	
   

  	
  DEMIL “B or Q”

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4610

  	
   

  	
  P

  	
   

  	
  WATER
  PURIFICATION EQUIPMENT

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  C

  	
   

  
	
  4620

  	
   

  	
  P

  	
   

  	
  WATER
  DISTILLATION EQUIPMENT, MARINE AND INDUSTRIAL

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  4630

  	
   

  	
  P

  	
   

  	
  SEWAGE
  TREATMENT EQUIPMENT

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  4710

  	
   

  	
  P

  	
   

  	
  PIPE AND
  TUBE

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  D

  	
   

  
	
  4720

  	
   

  	
  P

  	
   

  	
  HOSE AND
  TUBING, FLEXIBLE

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  4730

  	
   

  	
  P

  	
   

  	
  FITTINGS AND
  SPECIALITIES; HOSE, PIPE AND TUBE

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  4810

  	
   

  	
  P

  	
   

  	
  VALVES,
  POWERED

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  4820

  	
   

  	
  P

  	
   

  	
  VALVES,
  NONPOWERED

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  4910

  	
   

  	
  H

  	
   

  	
  MOTOR
  VEHICLE MAINTENANCE AND REPAIR SHOP SPECIALIZED EQUIPMENT

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  4920

  	
   

  	
  G

  	
   

  	
  AIRCRAFT
  MAINTENANCE AND REPAIR SHOP SPECIALIZED EQUIPMENT

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  4921

  	
   

  	
  W

  	
   

  	
  TORPEDO
  MAINTENANCE, REPAIR AND CHECKOUT SPECIALIZED EQUIPMENT

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  4923

  	
   

  	
  W

  	
   

  	
  DEPTH
  CHARGES/UNDERWATER MINES MAINT/REPAIR/CHECKOUT SPEC. EQUIP

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  4925

  	
   

  	
  G

  	
   

  	
  AMMO
  MAINTENANCE, REPAIR AND CHECKOUT SPECIALIZED EQUIPMENT

  	
   

  	
   

  	
   

  	
  B

  	
   

  	
  E

  	
   

  
	
  4927

  	
   

  	
  W

  	
   

  	
  ROCKET
  MAINTENANCE, REPAIR AND CHECKOUT SPECIALIZED EQUIPMENT

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  4930

  	
   

  	
  H

  	
   

  	
  LUBRICATION
  AND FUEL DISPENSING EQUIPMENT

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  4931

  	
   

  	
  G

  	
   

  	
  FIRE CONTROL
  MAINTENANCE AND REPAIR SHOP SPECIALIZED EQUIPMENT

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  4933

  	
   

  	
  G

  	
   

  	
  WEAPONS
  MAINTENANCE AND REPAIR SHOP SPECIALIZED EQUIPMENT

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  4935

  	
   

  	
  G

  	
   

  	
  GUIDED
  MISSILE MAINTENANCE, REPAIR CHECKOUT SPECIALIZED EQUIP

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  4940

  	
   

  	
  H

  	
   

  	
  MISC
  MAINTENANCE AND REPAIR SHOP SPECIALIZED EQUIPMENT

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  4960

  	
   

  	
  G

  	
   

  	
  SPACE
  VEHICLE MAINTENANCE, REPAIR CHECKOUT SPECIALIZED EQUIP

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  4970

  	
   

  	
  (NONE)

  	
   

  	
  MULTI
  GUARDED WEAPONS, SPECIALIZED MAINTENANCE & REPAIR SHOP EQUIPMENT

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  5110

  	
   

  	
  X

  	
   

  	
  HAND TOOLS,
  EDGED, NONPOWERED

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  5120

  	
   

  	
  X

  	
   

  	
  HAND TOOLS,
  NONEDGED, NONPOWERED

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  E

  	
   

  
	
  5130

  	
   

  	
  X

  	
   

  	
  HAND TOOLS,
  POWER DRIVEN

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  E

  	
   

  
	
  5133

  	
   

  	
  X

  	
   

  	
  DRILL BITS,
  COUNTERBORES AND COUNTERSINKS

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  5136

  	
   

  	
  X

  	
   

  	
  TAPS, DIES
  AND COLLETS; HAND AND MACHINE

  	
   

  	
   

  	
   

  	
  B

  	
   

  	
  D

  	
   

  
	
  5140

  	
   

  	
  X

  	
   

  	
  TOOL AND
  HARDWARE BOXES

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  5180

  	
   

  	
  X

  	
   

  	
  SETS, KITS
  AND OUTFITS OF HAND TOOLS

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  5210

  	
   

  	
  X

  	
   

  	
  MEASURING
  TOOLS, CRAFTSMENS

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  E

  	
   

  
	
  5220

  	
   

  	
  X

  	
   

  	
  INSPECTION
  GAGES AND PRECISION LAYOUT TOOLS

  	
   

  	
   

  	
   

  	
  D

  	
   

  	
  C

  	
   

  
	
  5280

  	
   

  	
  X

  	
   

  	
  SETS, KITS
  AND OUTFITS OF MEASURING TOOLS

  	
   

  	
   

  	
   

  	
  D

  	
   

  	
  E

  	
   

  
	
  5305

  	
   

  	
  K

  	
   

  	
  SCREWS

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5306

  	
   

  	
  K

  	
   

  	
  BOLTS

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5307

  	
   

  	
  K

  	
   

  	
  STUDS

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5310

  	
   

  	
  K

  	
   

  	
  NUTS AND
  WASHERS

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  D

  	
   

  
	
  5315

  	
   

  	
  K

  	
   

  	
  NAILS, KEYS
  AND PINS

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  D

  	
   

  
	
  5320

  	
   

  	
  K

  	
   

  	
  RIVETS

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5325

  	
   

  	
  K

  	
   

  	
  FASTENING
  DEVICES

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5330

  	
   

  	
  K

  	
   

  	
  PACKING AND
  GASKET MATERIALS

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5331

  	
   

  	
  (NONE)

  	
   

  	
  O-RING

  	
   

  	
   

  	
   

  	
  D

  	
   

  	
  E

  	
   

  
	
  5335

  	
   

  	
  K

  	
   

  	
  METAL
  SCREENING

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5340

  	
   

  	
  K

  	
   

  	
  MISCELLANEOUS
  HARDWARE

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5341

  	
   

  	
  K

  	
   

  	
  BRACKETS

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  C

  	
   

  
	
  5342

  	
   

  	
  (NONE)

  	
   

  	
  HARDWARE,
  WEAPON SYSTEM

  	
   

  	
   

  	
   

  	
  D

  	
   

  	
  C

  	
   

  
	
  5345

  	
   

  	
  K

  	
   

  	
  DISKS AND
  STONES, ABRASIVE

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5350

  	
   

  	
  K

  	
   

  	
  ABRASIVE
  MATERIALS

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5355

  	
   

  	
  E

  	
   

  	
  KNOBS AND
  POINTERS

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  D

  	
   

  
	
  5360

  	
   

  	
  K

  	
   

  	
  COIL, FLAT
  AND WIRE SPRINGS

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5365

  	
   

  	
  K

  	
   

  	
  RINGS, SHIMS
  AND SPACERS

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  

 

35.7

 

Table IV-1

Product Pool Items(1) and Product  Subpool
Bid Categories by FSC and DEMIL Code

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Product Subpools

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  CV-2 Items (CLIN 001:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  CV-1 Items (CLIN 

  002: CONUS and 

  DEMIL “A” Only;

  Non-CONUS DEMIL 

  “A” Items are within 

  CLIN 001)

  	
   

  	
  All Listed FSCs Non-CONUS, 

  All Listed FSCs DEMIL “B” or “Q” 

  CONUS and Non-CONUS)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Bid Category(2) Assigned by DEMIL Code

  	
   

  
	
  FSC No.

  	
   

  	
  Commodity 

  Code

  	
   

  	
  FSC Description

  	
   

  	
  DEMIL “A”

  	
   

  	
  DEMIL “A”

  	
   

  	
  DEMIL “B or Q”

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5410

  	
   

  	
  K

  	
   

  	
  PREFABRICATED
  AND PORTABLE BUILDINGS

  	
   

  	
  B

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5411

  	
   

  	
  K

  	
   

  	
  RIGID WALL
  SHELTERS

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  C

  	
   

  
	
  5419

  	
   

  	
  K

  	
   

  	
  COLLECTIVE
  MODULAR SUPPORT SYSTEM

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5420

  	
   

  	
  K

  	
   

  	
  BRIDGES,
  FIXED AND FLOATING

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  C

  	
   

  
	
  5430

  	
   

  	
  K

  	
   

  	
  STORAGE
  TANKS

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5440

  	
   

  	
  K

  	
   

  	
  SCAFFOLDING
  EQUIPMENT AND CONCRETE FORMS

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5445

  	
   

  	
  K

  	
   

  	
  PREFABRICATED
  TOWER STRUCTURES

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5450

  	
   

  	
  K

  	
   

  	
  MISC
  PREFABRICATED STRUCTURES

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5510

  	
   

  	
  K

  	
   

  	
  LUMBER AND
  RELATED BASIC WOOD MATERIALS

  	
   

  	
  B

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5520

  	
   

  	
  K

  	
   

  	
  MILLWORK -
  INCLUDES DOORS WINDOWS FRAMES

  	
   

  	
  B

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5530

  	
   

  	
  K

  	
   

  	
  PLYWOOD AND
  VENEER

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5610

  	
   

  	
  K

  	
   

  	
  MINERAL
  CONSTRUCTION MATERIALS, BULK

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5620

  	
   

  	
  K

  	
   

  	
  BUILDING
  GLASS TILE, BRICK AND BLOCK

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5630

  	
   

  	
  K

  	
   

  	
  PIPE AND
  CONDUIT, NONMETALLIC

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5640

  	
   

  	
  K

  	
   

  	
  WALLBOARD,
  BUILDING PAPER, AND THERMAL INSULATION MATERIALS

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5650

  	
   

  	
  K

  	
   

  	
  ROOFING AND SIDING
  MATERIALS

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5660

  	
   

  	
  K

  	
   

  	
  FENCING,
  FENCES AND GATES

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5670

  	
   

  	
  K

  	
   

  	
  ARCHITECTURAL
  AND RELATED METAL PRODUCTS

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  D

  	
   

  
	
  5675

  	
   

  	
  K

  	
   

  	
  NONWOOD
  CONSTRUCTION LUMBER AND RELATED MATERIALS

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5680

  	
   

  	
  K

  	
   

  	
  MISCELLANEOUS
  CONSTRUCTION MATERIALS

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5805

  	
   

  	
  E

  	
   

  	
  TELEPHONE
  AND TELEGRAPH EQUIPMENT

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5810

  	
   

  	
  E

  	
   

  	
  COMMUNICATIONS
  SECURITY EQUIPMENT AND COMPONENTS

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5811

  	
   

  	
  E

  	
   

  	
  OTHER
  CRYPTOLOGIC EQUIPMENT AND COMPONENTS

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5815

  	
   

  	
  E

  	
   

  	
  TELETYPE AND
  FACSIMILE EQUIPMENT

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5820

  	
   

  	
  E

  	
   

  	
  RADIO AND
  TELEVISION COMMUNICATION EQUIPMENT, EXCEPT AIRBORNE

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5821

  	
   

  	
  A

  	
   

  	
  RADIO AND
  TELEVISION COMMUNICATION EQUIPMENT, AIRBORNE

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  5825

  	
   

  	
  E

  	
   

  	
  RADIO
  NAVIGATION EQUIPMENT, EXCEPT AIRBORNE

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5826

  	
   

  	
  A

  	
   

  	
  RADIO
  NAVIGATION EQUIPMENT, AIRBORNE

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  5830

  	
   

  	
  E

  	
   

  	
  INTERCOMMUNICATION
  AND PUBLIC ADDRESS SYSTEMS, EXCEPT AIRBORNE

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5831

  	
   

  	
  A

  	
   

  	
  INTERCOMMUNICATION
  AND PUBLIC ADDRESS SYSTEMS, AIRBORNE

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  5835

  	
   

  	
  E

  	
   

  	
  SOUND
  RECORDING AND REPRODUCING EQUIPMENT

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5836

  	
   

  	
  E

  	
   

  	
  VIDEO RECORDING
  AND REPRODUCING EQUIPMENT

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5840

  	
   

  	
  E

  	
   

  	
  RADAR
  EQUIPMENT, EXCEPT AIRBORNE

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5841

  	
   

  	
  A

  	
   

  	
  RADAR
  EQUIPMENT, AIRBORNE

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  5845

  	
   

  	
  E

  	
   

  	
  UNDERWATER
  SOUND EQUIPMENT

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5850

  	
   

  	
  E

  	
   

  	
  VISIBLE AND
  INVISIBLE LIGHT COMMUNICATION EQUIPMENT

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  D

  	
   

  
	
  5855

  	
   

  	
  E

  	
   

  	
  NIGHT VISION
  EQUIPMENT, EMITTED AND REFLECTED RADIATION

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5860

  	
   

  	
  E

  	
   

  	
  STIMULATED
  COHERENT RADIATION DEVICES, COMPONENTS/ACCESSORIES

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5865

  	
   

  	
  E

  	
   

  	
  ELECTRONIC
  COUNTERMEASURES, COUNTER-COUNTER MEASURES

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5895

  	
   

  	
  E

  	
   

  	
  MISCELLANEOUS
  COMMUNICATION EQUIPMENT

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5905

  	
   

  	
  E

  	
   

  	
  RESISTORS

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5910

  	
   

  	
  E

  	
   

  	
  CAPACITORS

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5915

  	
   

  	
  E

  	
   

  	
  FILTERS AND
  NETWORKS

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5920

  	
   

  	
  E

  	
   

  	
  FUSES AND
  LIGHTNING ARRESTERS

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5925

  	
   

  	
  E

  	
   

  	
  CIRCUIT
  BREAKERS

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5930

  	
   

  	
  E

  	
   

  	
  SWITCHES

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5935

  	
   

  	
  E

  	
   

  	
  CONNECTORS,
  ELECTRICAL

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5940

  	
   

  	
  E

  	
   

  	
  LUGS,
  TERMINALS AND TERMINAL STRIPS

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5945

  	
   

  	
  E

  	
   

  	
  RELAYS AND
  SOLENOIDS

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  

 

35.8

 

Table IV-1

Product Pool Items(1) and Product  Subpool
Bid Categories by FSC and DEMIL Code

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Product Subpools

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  CV-2 Items (CLIN 001:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  CV-1 Items (CLIN 

  002: CONUS and 

  DEMIL “A” Only;

  Non-CONUS DEMIL 

  “A” Items are within 

  CLIN 001)

  	
   

  	
  All Listed FSCs Non-CONUS, 

  All Listed FSCs DEMIL “B” or “Q” 

  CONUS and Non-CONUS)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Bid Category(2) Assigned by DEMIL  Code

  	
   

  
	
  FSC No.

  	
   

  	
  Commodity 

  Code

  	
   

  	
  FSC Description

  	
   

  	
  DEMIL “A”

  	
   

  	
  DEMIL “A”

  	
   

  	
  DEMIL “B or Q”

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5950

  	
   

  	
  E

  	
   

  	
  COILS AND
  TRANSFORMERS

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5955

  	
   

  	
  E

  	
   

  	
  PIEZOELECTRIC
  CRYSTALS

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5960

  	
   

  	
  E

  	
   

  	
  ELECTRON
  TUBES AND ASSOCIATED HARDWARE

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5961

  	
   

  	
  E

  	
   

  	
  SEMICONDUCTOR
  DEVICES AND ASSOCIATED HARDWARE

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5962

  	
   

  	
  E

  	
   

  	
  MICROCIRCUITS,
  ELECTRONIC

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5963

  	
   

  	
  E

  	
   

  	
  ELECTRONIC
  MODULES

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5965

  	
   

  	
  E

  	
   

  	
  HEADSETS,
  HANDSETS, MICROPHONES AND SPEAKERS

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  D

  	
   

  
	
  5970

  	
   

  	
  E

  	
   

  	
  ELECTRICAL
  INSULATORS AND INSULATING MATERIALS

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5975

  	
   

  	
  E

  	
   

  	
  ELECTRICAL
  HARDWARE AND SUPPLIES

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5977

  	
   

  	
  E

  	
   

  	
  ELECTRICAL
  CONTACT BRUSHES AND ELECTRODES

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5980

  	
   

  	
  E

  	
   

  	
  OPTOELECTRIC
  DEVICES AND ASSOCIATED HARDWARE

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5985

  	
   

  	
  E

  	
   

  	
  ANTENNAS,
  WAVEGUIDE AND RELATED EQUIPMENT

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5990

  	
   

  	
  E

  	
   

  	
  SYNCHROS AND
  RESOLVERS

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5995

  	
   

  	
  E

  	
   

  	
  CABLE, CORD
  AND WIRE ASSEMBLIES; COMMUNICATION EQUIPMENT

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5996

  	
   

  	
  E

  	
   

  	
  AMPLIFIERS

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5998

  	
   

  	
  E

  	
   

  	
  ELECTRICAL
  AND ELECTRONIC ASSEMBLIES; BOARDS, CARDS AND ASSOC HARDWARE

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  5999

  	
   

  	
  E

  	
   

  	
  MISCELLANEOUS
  ELECTRICAL AND ELECTRONIC COMPONENTS

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  6004

  	
   

  	
  E

  	
   

  	
  ROTARY
  JOINTS - FIBER OPTICS

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  6005

  	
   

  	
  E

  	
   

  	
  COUPLERS,
  SPLITTERS, AND MIXERS

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  6006

  	
   

  	
  E

  	
   

  	
  ATTENUATORS
  - FIBER OPTICS

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  6007

  	
   

  	
  E

  	
   

  	
  FILTERS -
  FIBER OPTICS

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  6008

  	
   

  	
  E

  	
   

  	
  OPTICAL
  MULTIPLEXERS/DEMULTIPLEXERS

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  6010

  	
   

  	
  E

  	
   

  	
  FIBER OPTIC
  CONDUCTORS

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  6015

  	
   

  	
  E

  	
   

  	
  FIBER OPTIC
  CABLES

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  6020

  	
   

  	
  E

  	
   

  	
  FIBER OPTIC
  CABLE ASSEMBLIES AND HARNESSES

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  6021

  	
   

  	
  E

  	
   

  	
  FIBER OPTIC
  SWITCHES

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  6025

  	
   

  	
  E

  	
   

  	
  FIBER OPTIC
  TRANSMITTERS

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  6026

  	
   

  	
  E

  	
   

  	
  FIBER OPTIC
  RECEIVERS

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  6029

  	
   

  	
  E

  	
   

  	
  OPTICAL
  REPEATERS

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  6030

  	
   

  	
  E

  	
   

  	
  FIBER OPTIC
  DEVICES

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  6031

  	
   

  	
  E

  	
   

  	
  INTEGRATED
  OPTICAL CIRCUITS

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  6032

  	
   

  	
  E

  	
   

  	
  FIBER OPTIC
  LIGHT SOURCES

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  6033

  	
   

  	
  E

  	
   

  	
  FIBER OPTIC
  PHOTO DETECTORS

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  6034

  	
   

  	
  E

  	
   

  	
  FIBER OPTIC
  MODULATORS/DEMODULATORS

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  6035

  	
   

  	
  E

  	
   

  	
  FIBER OPTIC
  LIGHT TRANSFER AND IMAGE TRANSFER DEVICES

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  6040

  	
   

  	
  E

  	
   

  	
  FIBER OPTIC
  SENSORS

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  6050

  	
   

  	
  E

  	
   

  	
  FIBER OPTIC
  PASSIVE DEVICES

  	
   

  	
  B

  	
   

  	
   

  	
   

  	
  C

  	
   

  
	
  6060

  	
   

  	
  E

  	
   

  	
  FIBER OPTIC
  INTERCONNECTORS

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  6070

  	
   

  	
  E

  	
   

  	
  FIBER OPTIC
  ACCESSORIES AND SUPPLIES

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  C

  	
   

  
	
  6080

  	
   

  	
  E

  	
   

  	
  FIBER OPTIC
  KITS AND SETS

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  6099

  	
   

  	
  E

  	
   

  	
  MISCELLANEOUS
  FIBER OPTIC COMPONENTS

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  6105

  	
   

  	
  E

  	
   

  	
  MOTORS,
  ELECTRICAL

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  C

  	
   

  
	
  6110

  	
   

  	
  E

  	
   

  	
  ELECTRICAL
  CONTROL EQUIPMENT

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  6115

  	
   

  	
  E

  	
   

  	
  GENERATORS
  AND GENERATOR SETS, ELECTRICAL 

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  6116

  	
   

  	
  E

  	
   

  	
  FUEL, CELL
  POWER UNITS, COMPONENTS AND ACCESSORIES

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  C

  	
   

  
	
  6117

  	
   

  	
  E

  	
   

  	
  SOLAR
  ELECTRIC POWER SYSTEM

  	
   

  	
  B

  	
   

  	
   

  	
   

  	
  C

  	
   

  
	
  6120

  	
   

  	
  E

  	
   

  	
  TRANSFORMERS,
  DISTRIBUTION AND POWER STATION

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  6125

  	
   

  	
  E

  	
   

  	
  CONVERTERS,
  ELECTRICAL, ROTATING 

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  6130

  	
   

  	
  E

  	
   

  	
  CONVERTERS,
  ELECTRICAL, NONROTATING

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
													

 

35.9

 

Table IV-1

Product Pool Items(1) and Product  Subpool
Bid Categories by FSC and DEMIL Code

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Product Subpools

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  CV-2 Items (CLIN 001:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  CV-1 Items (CLIN 

  002: CONUS and 

  DEMIL “A” Only;

  Non-CONUS DEMIL 

  “A” Items are within 

  CLIN 001)

  	
   

  	
  All Listed FSCs Non-CONUS, 

  All Listed FSCs DEMIL “B” or “Q” 

  CONUS and Non-CONUS)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Bid Category(2) Assigned by DEMIL Code

  	
   

  
	
  FSC No.

  	
   

  	
  Commodity 

  Code

  	
   

  	
  FSC Description

  	
   

  	
  DEMIL “A”

  	
   

  	
  DEMIL “A”

  	
   

  	
  DEMIL “B or Q”

  	
   

  
	
  6135

  	
   

  	
  E

  	
   

  	
  BATTERIES,
  PRIMARY

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  6140

  	
   

  	
  E

  	
   

  	
  BATTERIES,
  SECONDARY

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  6145

  	
   

  	
  E

  	
   

  	
  WIRE AND CABLE,
  ELECTRICAL

  	
   

  	
  B

  	
   

  	
   

  	
   

  	
  D

  	
   

  
	
  6150

  	
   

  	
  E

  	
   

  	
  MISCELLANEOUS
  ELECTRIC POWER AND DISTRIBUTION EQUIPMENT

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  6160

  	
   

  	
  E

  	
   

  	
  MISCELLANEOUS
  BATTERY RETAINING FIXTURES AND LINERS

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  6210

  	
   

  	
  E

  	
   

  	
  INDOOR AND
  OUTDOOR ELECTRIC LIGHTING FIXTURES

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  6220

  	
   

  	
  E

  	
   

  	
  ELECTRIC VEHICULAR
  LIGHTS AND FIXTURES

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  D

  	
   

  
	
  6230

  	
   

  	
  E

  	
   

  	
  ELECTRIC
  PORTABLE AND HAND LIGHTING EQUIPMENT

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  6240

  	
   

  	
  E

  	
   

  	
  ELECTRIC
  LAMPS

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  6250

  	
   

  	
  E

  	
   

  	
  BALLASTS,
  LAMPHOLDERS AND STARTERS

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  6260

  	
   

  	
  E

  	
   

  	
  NONELECTRICAL
  LIGHTING FIXTURES

  	
   

  	
  B

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  6310

  	
   

  	
  E

  	
   

  	
  TRAFFIC AND
  TRANSIT SIGNAL SYSTEMS

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  6320

  	
   

  	
  D

  	
   

  	
  SHIPBOARD
  ALARM AND SIGNAL SYSTEMS

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  6330

  	
   

  	
  E

  	
   

  	
  RAILROAD
  SIGNAL AND WIRING DEVICES

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  6340

  	
   

  	
  A

  	
   

  	
  AIRCRAFT
  ALARM AND SIGNAL SYSTEMS

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  6350

  	
   

  	
  E

  	
   

  	
  MISCELLANEOUS
  ALARM, SIGNAL AND SECURITY DETECTION SYSTEMS

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  6505

  	
   

  	
  M

  	
   

  	
  MISC.
  MEDICAL

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  6508

  	
   

  	
  M

  	
   

  	
  MEDICATED
  COSMETICS AND TOILETRIES

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  6510

  	
   

  	
  M

  	
   

  	
  SURGICAL
  DRESSING MATERIALS

  	
   

  	
   

  	
   

  	
  D

  	
   

  	
  D

  	
   

  
	
  6515

  	
   

  	
  M

  	
   

  	
  MEDICAL AND
  SURGICAL INSTRUMENTS, EQUIPMENT AND SUPPLIES

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  C

  	
   

  
	
  6520

  	
   

  	
  M

  	
   

  	
  DENTAL
  INSTRUMENTS, EQUIPMENT AND SUPPLIES

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  6525

  	
   

  	
  M

  	
   

  	
  X-RAY
  EQUIPMENT AND SUPPLIES: MEDICAL, DENTAL, VETERINARY

  	
   

  	
   

  	
   

  	
  D

  	
   

  	
  E

  	
   

  
	
  6530

  	
   

  	
  M

  	
   

  	
  HOSPITAL
  FURNITURE, EQUIPMENT, UTENSILS, AND SUPPLIES

  	
   

  	
   

  	
   

  	
  B

  	
   

  	
  E

  	
   

  
	
  6532

  	
   

  	
  M

  	
   

  	
  HOSPITAL AND
  SURGICAL CLOTHING AND RELATED SPECIAL PURPOSE ITEMS

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  E

  	
   

  
	
  6540

  	
   

  	
  M

  	
   

  	
  OPTICIANS
  INSTRUMENTS, EQUIPMENT AND SUPPLIES

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  6545

  	
   

  	
  M

  	
   

  	
  MEDICAL
  SETS, KITS AND OUTFITS

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  E

  	
   

  
	
  6550

  	
   

  	
  M

  	
   

  	
  IN-VITRO
  DIAGNOSTIC SUBSTANCES, REAGENTS, TEST KITS AND SETS

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  E

  	
   

  
	
  6605

  	
   

  	
  D

  	
   

  	
  NAVIGATIONAL
  INSTRUMENTS

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  6610

  	
   

  	
  A

  	
   

  	
  FLIGHT
  INSTRUMENTS

  	
   

  	
   

  	
   

  	
  D

  	
   

  	
  E

  	
   

  
	
  6615

  	
   

  	
  D

  	
   

  	
  AUTOMATIC
  PLOT MECHANISMS AND AIRBORNE GYRO COMPONENTS

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  D

  	
   

  
	
  6620

  	
   

  	
  D

  	
   

  	
  ENGINE
  INSTRUMENTS

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  D

  	
   

  
	
  6625

  	
   

  	
  E

  	
   

  	
  ELECTRICAL/ELECTRONIC
  PROPERTIES MEASURING/TESTING INSTRUMENTS

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  6630

  	
   

  	
  M

  	
   

  	
  CHEMICAL
  ANALYSIS INSTRUMENTS

  	
   

  	
   

  	
   

  	
  D

  	
   

  	
  E

  	
   

  
	
  6635

  	
   

  	
  M

  	
   

  	
  PHYSICAL
  PROPERTIES TESTING EQUIPMENT

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  D

  	
   

  
	
  6636

  	
   

  	
  M

  	
   

  	
  ENVIRONMENTAL
  CHAMBERS AND RELATED EQUIPMENT

  	
   

  	
   

  	
   

  	
  D

  	
   

  	
  E

  	
   

  
	
  6640

  	
   

  	
  M

  	
   

  	
  LABORATORY
  EQUIPMENT AND SUPPLIES

  	
   

  	
   

  	
   

  	
  D

  	
   

  	
  E

  	
   

  
	
  6645

  	
   

  	
  M

  	
   

  	
  TIME
  MEASURING INSTRUMENTS

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  6650

  	
   

  	
  M

  	
   

  	
  OPTICAL
  INSTRUMENTS

  	
   

  	
   

  	
   

  	
  D

  	
   

  	
  D

  	
   

  
	
  6655

  	
   

  	
  M

  	
   

  	
  GEOPHYSICAL
  AND ASTRONOMICAL INSTRUMENTS

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  6660

  	
   

  	
  M

  	
   

  	
  METEOROLOGICAL
  INSTRUMENTS AND APPARATUS

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  6665

  	
   

  	
  M

  	
   

  	
  HAZARD-DETECTING
  INSTRUMENTS AND APPARATUS

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  6670

  	
   

  	
  M

  	
   

  	
  SCALES AND
  BALANCES

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  E

  	
   

  
	
  6675

  	
   

  	
  M

  	
   

  	
  DRAFTING,
  SURVEYING AND MAPPING INSTRUMENTS

  	
   

  	
   

  	
   

  	
  D

  	
   

  	
  D

  	
   

  
	
  6680

  	
   

  	
  M

  	
   

  	
  LIQUID/GAS
  FLOW, LIQUID LEVEL/MECHANICAL MOTION MEASURING INSTRUMENTS

  	
   

  	
   

  	
   

  	
  D

  	
   

  	
  E

  	
   

  
	
  6685

  	
   

  	
  M

  	
   

  	
  PRESSURE,
  TEMPERATURE/HUMIDITY MEASURING/CONTROLLING INSTRUMENT

  	
   

  	
   

  	
   

  	
  D

  	
   

  	
  E

  	
   

  
	
  6695

  	
   

  	
  M

  	
   

  	
  COMBINATION
  AND MISCELLANEOUS INSTRUMENTS

  	
   

  	
   

  	
   

  	
  D

  	
   

  	
  D

  	
   

  

 

35.10

 

Table IV-1

Product Pool Items(1) and Product  Subpool
Bid Categories by FSC and DEMIL Code

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Product Subpools

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  CV-2 Items (CLIN 001:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  CV-1 Items (CLIN 

  002: CONUS and 

  DEMIL “A” Only;

  Non-CONUS DEMIL 

  “A” Items are within 

  CLIN 001)

  	
   

  	
  All Listed FSCs Non-CONUS, 

  All Listed FSCs DEMIL “B” or “Q” 

  CONUS and Non-CONUS)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Bid Category(2) Assigned by DEMIL  Code

  	
   

  
	
  FSC No.

  	
   

  	
  Commodity 

  Code

  	
   

  	
  FSC Description

  	
   

  	
  DEMIL “A”

  	
   

  	
  DEMIL “A”

  	
   

  	
  DEMIL “B or Q”

  	
   

  
	
  6710

  	
   

  	
  X

  	
   

  	
  CAMERAS,
  MOTION PICTURE

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  E

  	
   

  
	
  6720

  	
   

  	
  X

  	
   

  	
  CAMERAS,
  STILL PICTURE

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  6730

  	
   

  	
  X

  	
   

  	
  PHOTOGRAPHIC
  PROJECTION EQUIPMENT

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  E

  	
   

  
	
  6740

  	
   

  	
  X

  	
   

  	
  PHOTOGRAPHIC
  DEVELOPING AND FINISHING EQUIPMENT

  	
   

  	
   

  	
   

  	
  D

  	
   

  	
  E

  	
   

  
	
  6750

  	
   

  	
  X

  	
   

  	
  PHOTOGRAPHIC
  SUPPLIES

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  6760

  	
   

  	
  X

  	
   

  	
  PHOTOGRAPHIC
  EQUIPMENT AND ACCESSORIES

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  6770

  	
   

  	
  X

  	
   

  	
  FILM,
  PROCESSED

  	
   

  	
   

  	
   

  	
  D

  	
   

  	
  E

  	
   

  
	
  6780

  	
   

  	
  X

  	
   

  	
  PHOTOGRAPHIC
  SETS, KITS AND OUTFITS

  	
   

  	
   

  	
   

  	
  D

  	
   

  	
  E

  	
   

  
	
  6810

  	
   

  	
  L

  	
   

  	
  CHEMICALS

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  6820

  	
   

  	
  L

  	
   

  	
  DYES

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  6830

  	
   

  	
  L

  	
   

  	
  GASES:
  COMPRESSED AND LIQUEFIED

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  6840

  	
   

  	
  L

  	
   

  	
  PEST CONTROL
  AGENTS AND DISINFECTANTS

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  6850

  	
   

  	
  L

  	
   

  	
  MISCELLANEOUS
  CHEMICAL SPECIALITIES

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  E

  	
   

  
	
  6910

  	
   

  	
  O

  	
   

  	
  TRAINING
  AIDS

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  6920

  	
   

  	
  O

  	
   

  	
  ARMAMENT
  TRAINING DEVICES

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  6930

  	
   

  	
  O

  	
   

  	
  OPERATION
  TRAINING DEVICES

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  6940

  	
   

  	
  O

  	
   

  	
  COMMUNICATION
  TRAINING DEVICES

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  7010

  	
   

  	
  E

  	
   

  	
  ADPE SYSTEM
  CONFIGURATION

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  7020

  	
   

  	
  E

  	
   

  	
  ADP CENTRAL
  PROCESSING UNIT, ANALOG

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  7021

  	
   

  	
  E

  	
   

  	
  ADP CENTRAL
  PROCESSING UNIT, DIGITAL

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  7022

  	
   

  	
  E

  	
   

  	
  ADP CENTRAL
  PROCESSING UNIT, HYBRID

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  7025

  	
   

  	
  E

  	
   

  	
  ADP
  INPUT/OUTPUT AND STORAGE DEVICES

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  7030

  	
   

  	
  E

  	
   

  	
  ADP SOFTWARE

  	
   

  	
   

  	
   

  	
  D

  	
   

  	
  E

  	
   

  
	
  7035

  	
   

  	
  E

  	
   

  	
  ADP SUPPORT
  EQUIPMENT

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  7040

  	
   

  	
  E

  	
   

  	
  PUNCHED CARD
  EQUIPMENT

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  7042

  	
   

  	
  E

  	
   

  	
  MINI AND
  MICRO COMPUTER CONTROL DEVICES

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  7045

  	
   

  	
  E

  	
   

  	
  ADP SUPPLIES
  AND SUPPORT EQUIPMENT

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  7050

  	
   

  	
  E

  	
   

  	
  ADP
  COMPONENTS

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  7105

  	
   

  	
  F

  	
   

  	
  HOUSEHOLD
  FURNITURE

  	
   

  	
   

  	
   

  	
  B

  	
   

  	
  E

  	
   

  
	
  7110

  	
   

  	
  F

  	
   

  	
  OFFICE
  FURNITURE

  	
   

  	
   

  	
   

  	
  B

  	
   

  	
  E

  	
   

  
	
  7125

  	
   

  	
  F

  	
   

  	
  CABINETS,
  LOCKERS AND BINS AND SHELVING

  	
   

  	
   

  	
   

  	
  B

  	
   

  	
  C

  	
   

  
	
  7195

  	
   

  	
  F

  	
   

  	
  MISCELLANEOUS
  FURNITURE AND FIXTURES

  	
   

  	
   

  	
   

  	
  B

  	
   

  	
  E

  	
   

  
	
  7210

  	
   

  	
  F

  	
   

  	
  HOUSEHOLD
  FURNISHINGS

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  E

  	
   

  
	
  7220

  	
   

  	
  F

  	
   

  	
  FLOOR
  COVERINGS

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  E

  	
   

  
	
  7230

  	
   

  	
  F

  	
   

  	
  DRAPERES,
  AWNINGS AND SHADES

  	
   

  	
   

  	
   

  	
  D

  	
   

  	
  E

  	
   

  
	
  7240

  	
   

  	
  F

  	
   

  	
  HOUSEHOLD
  AND COMMERCIAL UTILITY CONTAINERS

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  E

  	
   

  
	
  7290

  	
   

  	
  F

  	
   

  	
  MISCELLANEOUS
  HOUSEHOLD AND COMMERCIAL FURNISHINGS/APPLIANCES

  	
   

  	
   

  	
   

  	
  B

  	
   

  	
  E

  	
   

  
	
  7310

  	
   

  	
  F

  	
   

  	
  FOOD
  COOKING, BAKING AND SERVING EQUIPMENT

  	
   

  	
   

  	
   

  	
  B

  	
   

  	
  E

  	
   

  
	
  7320

  	
   

  	
  F

  	
   

  	
  KITCHEN
  EQUIPMENT AND APPLIANCES

  	
   

  	
   

  	
   

  	
  B

  	
   

  	
  E

  	
   

  
	
  7330

  	
   

  	
  F

  	
   

  	
  KITCHEN HAND
  TOOLS AND UTENSILS

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  E

  	
   

  
	
  7340

  	
   

  	
  F

  	
   

  	
  CUTLERY AND
  FLATWARE

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  7350

  	
   

  	
  F

  	
   

  	
  TABLEWARE

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  E

  	
   

  

 

35.11

 

Table IV-1

Product Pool Items(1) and Product  Subpool
Bid Categories by FSC and DEMIL Code

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Product Subpools

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  CV-2 Items (CLIN 001:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  CV-1 Items (CLIN 

  002: CONUS and 

  DEMIL “A” Only;

  Non-CONUS DEMIL 

  “A” Items are within 

  CLIN 001)

  	
   

  	
  All Listed FSCs Non-CONUS, 

  All Listed FSCs DEMIL “B” or “Q” 

  CONUS and Non-CONUS)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Bid Category(2) Assigned by DEMIL Code

  	
   

  
	
  FSC No.

  	
   

  	
  Commodity 

  Code

  	
   

  	
  FSC Description

  	
   

  	
  DEMIL “A”

  	
   

  	
  DEMIL “A”

  	
   

  	
  DEMIL “B or Q”

  	
   

  
	
  7360

  	
   

  	
  F

  	
   

  	
  SETS, KITS
  AND OUTFITS: FOOD PREPARATION AND SERVING

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  E

  	
   

  
	
  7420

  	
   

  	
  O

  	
   

  	
  ACCOUNTING
  AND CALCULATING MACHINES

  	
   

  	
   

  	
   

  	
  D

  	
   

  	
  E

  	
   

  
	
  7430

  	
   

  	
  O

  	
   

  	
  TYPEWRITERS
  AND OFFICE TYPE COMPOSING MACHINES

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  E

  	
   

  
	
  7435

  	
   

  	
  O

  	
   

  	
  OFFICE
  INFORMATION SYSTEM EQUIPMENT

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  7450

  	
   

  	
  O

  	
   

  	
  OFFICE TYPE SOUND
  RECORDING AND REPRODUCING MACHINES

  	
   

  	
   

  	
   

  	
  D

  	
   

  	
  E

  	
   

  
	
  7460

  	
   

  	
  O

  	
   

  	
  VISIBLE
  RECORD EQUIPMENT

  	
   

  	
   

  	
   

  	
  D

  	
   

  	
  E

  	
   

  
	
  7490

  	
   

  	
  O

  	
   

  	
  MISCELLANEOUS
  OFFICE MACHINES

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  E

  	
   

  
	
  7510

  	
   

  	
  O

  	
   

  	
  OFFICE
  SUPPLIES

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  D

  	
   

  
	
  7520

  	
   

  	
  O

  	
   

  	
  OFFICE
  DEVICES AND ACCESSORIES

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  E

  	
   

  
	
  7530

  	
   

  	
  O

  	
   

  	
  STATIONERY
  AND RECORD FORMS

  	
   

  	
   

  	
   

  	
  D

  	
   

  	
  E

  	
   

  
	
  7540

  	
   

  	
  O

  	
   

  	
  STANDARD
  FORMS

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  7610

  	
   

  	
  X

  	
   

  	
  BOOKS AND
  PAMPHLETS

  	
   

  	
   

  	
   

  	
  D

  	
   

  	
  D

  	
   

  
	
  7630

  	
   

  	
  X

  	
   

  	
  NEWSPAPERS
  AND PERIODICALS

  	
   

  	
   

  	
   

  	
  B

  	
   

  	
  E

  	
   

  
	
  7640

  	
   

  	
  X

  	
   

  	
  MAPS,
  ATLASES, CHARTS AND GLOBES

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  E

  	
   

  
	
  7641

  	
   

  	
  X

  	
   

  	
  AERONAUTICAL
  MAPS, CHARTS AND GEODEIC PRODUCTS

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  7642

  	
   

  	
  X

  	
   

  	
  HYDROGRAPHIC
  MAPS, CHARTS AND GEODEIC PRODUCTS

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  7643

  	
   

  	
  X

  	
   

  	
  TOPOGRAPHIC
  MAPS, CHARTS AND GEODEIC PRODUCTS

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  7644

  	
   

  	
  X

  	
   

  	
  DIGITAL
  MAPS, CHARTS AND GEODEIC PRODUCTS

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  7650

  	
   

  	
  X

  	
   

  	
  DRAWINGS AND
  SPECIFICATIONS

  	
   

  	
   

  	
   

  	
  B

  	
   

  	
  E

  	
   

  
	
  7660

  	
   

  	
  X

  	
   

  	
  SHEET AND
  BOOK MUSIC

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  7670

  	
   

  	
  X

  	
   

  	
  MICROFILM,
  PROCESSED

  	
   

  	
   

  	
   

  	
  B

  	
   

  	
  E

  	
   

  
	
  7690

  	
   

  	
  X

  	
   

  	
  MISCELLANEOUS
  PRINTED MATTER

  	
   

  	
   

  	
   

  	
  D

  	
   

  	
  E

  	
   

  
	
  7710

  	
   

  	
  X

  	
   

  	
  MUSICAL
  INSTRUMENTS

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  7720

  	
   

  	
  X

  	
   

  	
  MUSICAL
  INSTRUMENT PARTS AND ACCESSORIES

  	
   

  	
   

  	
   

  	
  B

  	
   

  	
  E

  	
   

  
	
  7730

  	
   

  	
  X

  	
   

  	
  PHONOGRAPHS,
  RADIOS AND TELEVISION SETS: HOME TYPE

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  7740

  	
   

  	
  X

  	
   

  	
  PHONOGRAPH
  RECORDS

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  7810

  	
   

  	
  X

  	
   

  	
  ATHLETIC AND
  SPORTING EQUIPMENT

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  7820

  	
   

  	
  X

  	
   

  	
  GAMES, TOYS
  AND WHEELED GOODS

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  7830

  	
   

  	
  X

  	
   

  	
  RECREATIONAL
  AND GYMNASTIC EQUIPMENT

  	
   

  	
   

  	
   

  	
  B

  	
   

  	
  E

  	
   

  
	
  7910

  	
   

  	
  F

  	
   

  	
  FLOOR
  POLISHERS AND VACUUM CLEANING EQUIPMENT

  	
   

  	
   

  	
   

  	
  B

  	
   

  	
  E

  	
   

  
	
  7920

  	
   

  	
  F

  	
   

  	
  BROOMS,
  BRUSHES, MOPS AND SPONGES

  	
   

  	
   

  	
   

  	
  B

  	
   

  	
  E

  	
   

  
	
  7930

  	
   

  	
  L

  	
   

  	
  CLEANING AND
  POLISHING COMPOUNDS AND PREPARATIONS

  	
   

  	
   

  	
   

  	
  B

  	
   

  	
  E

  	
   

  
	
  8010

  	
   

  	
  L

  	
   

  	
  PAINTS,
  DOPES, VARNISHES AND RELATED PRODUCTS

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  8020

  	
   

  	
  L

  	
   

  	
  PAINTS AND
  ARTISTS BRUSHES

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  8030

  	
   

  	
  L

  	
   

  	
  PRESERVATIVE
  AND SEALING COMPOUNDS

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  8040

  	
   

  	
  L

  	
   

  	
  ADHESIVES

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  8105

  	
   

  	
  K

  	
   

  	
  BAGS AND
  SACKS

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  8110

  	
   

  	
  K

  	
   

  	
  DRUMS AND
  CANS

  	
   

  	
  B

  	
   

  	
   

  	
   

  	
  D

  	
   

  
	
  8115

  	
   

  	
  K

  	
   

  	
  BOXES,
  CARTONS AND CRATES

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  8120

  	
   

  	
  K

  	
   

  	
  COMMERCIAL
  AND INDUSTRIAL GAS CYLINDERS

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  8125

  	
   

  	
  K

  	
   

  	
  BOTTLES AND
  JARS

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  8130

  	
   

  	
  K

  	
   

  	
  REELS AND
  SPOOLS

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  8135

  	
   

  	
  K

  	
   

  	
  PACKAGING
  AND PACKING BULK MATERIALS

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  8140

  	
   

  	
  K

  	
   

  	
  AMMO AND
  NUCLEAR ORDINANCE BOXES, PACKAGES AND SPECIAL CONTAINERS

  	
   

  	
  B

  	
   

  	
   

  	
   

  	
  C

  	
   

  
	
  8145

  	
   

  	
  K

  	
   

  	
  SPECIALIZED
  SHIPPING AND STORAGE CONTAINERS

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  D

  	
   

  
	
  8305

  	
   

  	
  T

  	
   

  	
  TEXTILES
  FABRICS

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  C

  	
   

  
	
  8310

  	
   

  	
  T

  	
   

  	
  YARN AND
  THREAD

  	
   

  	
   

  	
   

  	
  D

  	
   

  	
  E

  	
   

  

 

35.12

 

Table IV-1

Product Pool Items(1) and Product  Subpool
Bid Categories by FSC and DEMIL Code

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Product Subpools

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  CV-2 Items (CLIN 001:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  CV-1 Items (CLIN 

  002: CONUS and 

  DEMIL “A” Only;

  Non-CONUS DEMIL 

  “A” Items are within 

  CLIN 001)

  	
   

  	
  All Listed FSCs Non-CONUS, 

  All Listed FSCs DEMIL “B” or “Q” 

  CONUS and Non-CONUS)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Bid Category(2) Assigned by DEMIL Code

  	
   

  
	
  FSC No.

  	
   

  	
  Commodity 

  Code

  	
   

  	
  FSC Description

  	
   

  	
  DEMIL “A”

  	
   

  	
  DEMIL “A”

  	
   

  	
  DEMIL “B or Q”

  	
   

  
	
  8315

  	
   

  	
  T

  	
   

  	
  NOTIONS AND
  APPAREL FINDINGS

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  8320

  	
   

  	
  T

  	
   

  	
  PADDING AND
  STUFFING MATERIALS

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  8325

  	
   

  	
  T

  	
   

  	
  FUR
  MATERIALS

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  8330

  	
   

  	
  T

  	
   

  	
  LEATHER

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  E

  	
   

  
	
  8335

  	
   

  	
  T

  	
   

  	
  SHOE
  FINDINGS AND SOLING MATERIALS

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  E

  	
   

  
	
  8340

  	
   

  	
  T

  	
   

  	
  TENTS AND
  TARPAULINS

  	
   

  	
   

  	
   

  	
  B

  	
   

  	
  E

  	
   

  
	
  8345

  	
   

  	
  T

  	
   

  	
  FLAGS AND
  PENNANTS

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  E

  	
   

  
	
  8405

  	
   

  	
  T

  	
   

  	
  OUTERWEAR,
  MENS

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  C

  	
   

  
	
  8410

  	
   

  	
  T

  	
   

  	
  OUTERWEAR,
  WOMENS

  	
   

  	
   

  	
   

  	
  D

  	
   

  	
  E

  	
   

  
	
  8415

  	
   

  	
  T

  	
   

  	
  CLOTHING,
  SPECIAL PURPOSE

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  C

  	
   

  
	
  8420

  	
   

  	
  T

  	
   

  	
  UNDERWEAR
  AND NIGHTWEAR, MENS

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  C

  	
   

  
	
  8425

  	
   

  	
  T

  	
   

  	
  UNDERWEAR
  AND NIGHTWEAR, WOMENS

  	
   

  	
   

  	
   

  	
  D

  	
   

  	
  E

  	
   

  
	
  8430

  	
   

  	
  T

  	
   

  	
  FOOTWEAR,
  MENS

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  8435

  	
   

  	
  T

  	
   

  	
  FOOTWEAR,
  WOMENS

  	
   

  	
   

  	
   

  	
  B

  	
   

  	
  E

  	
   

  
	
  8440

  	
   

  	
  T

  	
   

  	
  HOSIERY,
  HANDWEAR AND CLOTHING ACCESSORIES, MENS

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  C

  	
   

  
	
  8445

  	
   

  	
  T

  	
   

  	
  HOSIERY,
  HANDWEAR AND CLOTHING ACCESSORIES, WOMENS

  	
   

  	
   

  	
   

  	
  B

  	
   

  	
  E

  	
   

  
	
  8450

  	
   

  	
  T

  	
   

  	
  CHILDRENS
  AND INFANTS APPAREL AND ACCESSORIES

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  E

  	
   

  
	
  8455

  	
   

  	
  T

  	
   

  	
  BADGES AND
  INSIGNIA

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  8460

  	
   

  	
  T

  	
   

  	
  LUGGAGE

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  8465

  	
   

  	
  T

  	
   

  	
  INDIVIDUAL
  EQUIPMENT

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  C

  	
   

  
	
  8470

  	
   

  	
  T

  	
   

  	
  ARMOR,
  PERSONAL

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  E

  	
   

  
	
  8475

  	
   

  	
  T

  	
   

  	
  SPECIALIZED
  FLIGHT CLOTHING AND ACCESSORIES

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  C

  	
   

  
	
  8510

  	
   

  	
  X

  	
   

  	
  PERFUMES,
  TOILET PREPARATIONS AND POWDERS

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  8520

  	
   

  	
  X

  	
   

  	
  TOILET SOAP,
  SHAVING PREPARATIONS AND DENTIFRICES

  	
   

  	
   

  	
   

  	
  D

  	
   

  	
  E

  	
   

  
	
  8530

  	
   

  	
  X

  	
   

  	
  PERSONAL
  TOILETRY ARTICLES

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  8540

  	
   

  	
  X

  	
   

  	
  TOILETRY
  PAPER PRODUCTS

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  8710

  	
   

  	
  X

  	
   

  	
  FORAGE AND
  FEED

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  8720

  	
   

  	
  X

  	
   

  	
  FERTILIZERS

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  8730

  	
   

  	
  X

  	
   

  	
  SEEDS AND
  NURSERY STOCK

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  8810

  	
   

  	
  X

  	
   

  	
  LIVE
  ANIMALS, RAISED FOR FOOD

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  8820

  	
   

  	
  X

  	
   

  	
  LIVE ANIMALS,
  NOT RAISED FOR FOOD

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  8905

  	
   

  	
  X

  	
   

  	
  MEATS,
  POULTRY AND FISH

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  8910

  	
   

  	
  X

  	
   

  	
  DAIRY FOODS
  AND EGGS

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  8915

  	
   

  	
  X

  	
   

  	
  FRUITS AND
  VEGETABLES

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  8920

  	
   

  	
  X

  	
   

  	
  BAKERY AND
  CEREAL PRODUCTS

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  8925

  	
   

  	
  X

  	
   

  	
  SUGAR,
  CONFECTIONERY AND NUTS

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  8930

  	
   

  	
  X

  	
   

  	
  JAMS,
  JELLIES AND PRESERVES

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  E

  	
   

  
	
  8935

  	
   

  	
  X

  	
   

  	
  SOUPS AND BOUILLONS

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  8940

  	
   

  	
  X

  	
   

  	
  SPECIAL
  DIETARY FOODS AND FOOD SPECIALTY PREPARATIONS

  	
   

  	
   

  	
   

  	
  D

  	
   

  	
  E

  	
   

  
	
  8945

  	
   

  	
  X

  	
   

  	
  FOODS, OILS
  AND FATS

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  8950

  	
   

  	
  X

  	
   

  	
  CONDIMENTS
  AND RELATED PRODUCTS

  	
   

  	
   

  	
   

  	
  B

  	
   

  	
  E

  	
   

  
	
  8955

  	
   

  	
  X

  	
   

  	
  COFFEE, TEA
  AND COCOA

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  8960

  	
   

  	
  X

  	
   

  	
  BEVERAGES,
  NONALCOHOLIC

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  E

  	
   

  
	
  8965

  	
   

  	
  X

  	
   

  	
  BEVERAGES,
  ALCOHOLIC

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  

 

35.13

 

Table IV-1

Product Pool Items(1) and Product  Subpool
Bid Categories by FSC and DEMIL Code

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Product Subpools

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  CV-2 Items (CLIN 001:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  CV-1 Items (CLIN 

  002: CONUS and 

  DEMIL “A” Only;

  Non-CONUS DEMIL 

  “A” Items are within 

  CLIN 001)

  	
   

  	
  All Listed FSCs Non-CONUS, 

  All Listed FSCs DEMIL “B” or “Q” 

  CONUS and Non-CONUS)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Bid Category(2) Assigned by DEMIL  Code

  	
   

  
	
  FSC No.

  	
   

  	
  Commodity 

  Code

  	
   

  	
  FSC Description

  	
   

  	
  DEMIL “A”

  	
   

  	
  DEMIL “A”

  	
   

  	
  DEMIL “B or Q”

  	
   

  
	
  8970

  	
   

  	
  X

  	
   

  	
  COMPOSITE
  FOOD PACKAGES

  	
   

  	
   

  	
   

  	
  C

  	
   

  	
  E

  	
   

  
	
  8975

  	
   

  	
  X

  	
   

  	
  TOBACCO
  PRODUCTS

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  9110

  	
   

  	
  L

  	
   

  	
  FUELS, SOLID

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  9130

  	
   

  	
  L

  	
   

  	
  LIQUID
  PROPELLANTS AND FUELS, PETROLEUM BASE

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  9135

  	
   

  	
  L

  	
   

  	
  LIQUID
  PROPELLANT FUELS AND OXIDIZERS, CHEMICAL BASE

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  9140

  	
   

  	
  L

  	
   

  	
  FUEL OILS

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  9150

  	
   

  	
  L

  	
   

  	
  OILS AND
  GREASES: CUTTING, LUBRICATING AND HYDRAULIC

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  9160

  	
   

  	
  L

  	
   

  	
  MISCELLANEOUS
  WAXES, OILS AND FATS

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  9310

  	
   

  	
  N

  	
   

  	
  PAPER AND
  PAPERBOARD

  	
   

  	
  B

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  9320

  	
   

  	
  N

  	
   

  	
  RUBBER
  FABRICATED MATERIALS

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  9330

  	
   

  	
  N

  	
   

  	
  PLASTIC
  FABRICATED MATERIALS

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  9340

  	
   

  	
  N

  	
   

  	
  GLASS
  FABRICATED MATERIALS

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  C

  	
   

  
	
  9350

  	
   

  	
  N

  	
   

  	
  REFRACTORIES
  AND FIRE SURFACING MATERIALS

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  9390

  	
   

  	
  N

  	
   

  	
  MISCELLANEOUS
  FABRICATED NONMETALLIC MATERIALS

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  9410

  	
   

  	
  X

  	
   

  	
  CRUDE GRADES
  OF PLANT MATERIALS

  	
   

  	
   

  	
   

  	
  B

  	
   

  	
  E

  	
   

  
	
  9420

  	
   

  	
  X

  	
   

  	
  FIBERS:
  VEGETABLE, ANIMAL AND SYNTHETIC

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  9430

  	
   

  	
  X

  	
   

  	
  MISC CRUDE
  ANIMAL PRODUCTS, INEDIBLE

  	
   

  	
   

  	
   

  	
  E

  	
   

  	
  E

  	
   

  
	
  9440

  	
   

  	
  X

  	
   

  	
  MISC CRUDE
  AGRICULTURAL AND FORESTRY PRODUCTS

  	
   

  	
   

  	
   

  	
  B

  	
   

  	
  E

  	
   

  
	
  9450

  	
   

  	
  N

  	
   

  	
  NONMETALLIC
  SCRAP, EXCEPT TEXTILES

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  9505

  	
   

  	
  S

  	
   

  	
  WIRE,
  NONELECTRICAL IRON AND STEEL

  	
   

  	
  B

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  9510

  	
   

  	
  S

  	
   

  	
  BARS AND
  RODS, IRON AND STEEL

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  9515

  	
   

  	
  S

  	
   

  	
  PLATE,
  STEEL, STRIP AND FOIL: IRON AND STEEL

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  9520

  	
   

  	
  S

  	
   

  	
  STRUCTURAL
  SHAPES, IRON AND STEEL

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  C

  	
   

  
	
  9525

  	
   

  	
  S

  	
   

  	
  WIRE,
  NONELECTRICAL, NONFERROUS BASE METAL

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  9530

  	
   

  	
  S

  	
   

  	
  BARS AND
  RODS, NONFERROUS BASE METAL

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  9535

  	
   

  	
  S

  	
   

  	
  PLATE,
  SHEET, STRIP AND FOIL: NONFERROUS BASE METAL

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  9540

  	
   

  	
  S

  	
   

  	
  STRUCTURAL
  SHAPES, NONFERROUS BASE METAL

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  9545

  	
   

  	
  S

  	
   

  	
  PLATE,
  SHEET, STRIP, FOIL AND WIRE: PRECIOUS METAL

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  9610

  	
   

  	
  S

  	
   

  	
  ORES

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  9620

  	
   

  	
  N

  	
   

  	
  MINERALS,
  NATURAL AND SYNTHETIC

  	
   

  	
  B

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  9630

  	
   

  	
  S

  	
   

  	
  ADDITIVE
  METAL MATERIALS AND MASTER ALLOYS

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  9640

  	
   

  	
  S

  	
   

  	
  IRON AND
  STEEL, PRIMARY AND SEMIFINISHED PRODUCTS

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  9650

  	
   

  	
  S

  	
   

  	
  NONFERROUS
  BASE METAL REFINERY AND INTERMEDIATE FORMS

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  C

  	
   

  
	
  9660

  	
   

  	
  S

  	
   

  	
  PRECIOUS
  METALS PRIMARY FORMS

  	
   

  	
  E

  	
   

  	
   

  	
   

  	
  E

  	
   

  
	
  9670

  	
   

  	
  S

  	
   

  	
  IRON AND
  STEEL SCRAP

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  9680

  	
   

  	
  S

  	
   

  	
  NONFERROUS
  METAL SCRAP

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  9905

  	
   

  	
  X

  	
   

  	
  SIGNS,
  ADVERTISING DISPLAYS AND IDENTIFICATION PLATES

  	
   

  	
   

  	
   

  	
  D

  	
   

  	
  E

  	
   

  
	
  9910

  	
   

  	
  X

  	
   

  	
  JEWELRY

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  9915

  	
   

  	
  X

  	
   

  	
  COLLECTORS
  AND/OR HISTORICAL ITEMS

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  9920

  	
   

  	
  X

  	
   

  	
  SMOKERS
  ARTICLES AND MATCHES

  	
   

  	
   

  	
   

  	
  B

  	
   

  	
  D

  	
   

  
	
  9925

  	
   

  	
  X

  	
   

  	
  ECCLESIASTICAL
  EQUIPMENT, FURNISHINGS, AND SUPPLIES

  	
   

  	
   

  	
   

  	
  B

  	
   

  	
  E

  	
   

  
	
  9930

  	
   

  	
  X

  	
   

  	
  MEMORIALS:
  CEMETERIAL AND MORTUARY EQUIPMENT AND SUPPLIES

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  
	
  9999

  	
   

  	
  X

  	
   

  	
  MISCELLANEOUS
  ITEMS (CANNOT CONCEIVABLY BE CLASSIFIED ELSEWHERE)

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
  E

  	
   

  

 

35.14

 

Table IV-1

Product Pool Items(1) and Product  Subpool
Bid Categories by FSC and DEMIL Code

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Product
  Subpools

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  CV-2
  Items (CLIN 001:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  CV-1
  Items (CLIN 002: CONUS and DEMIL “A” Only; Non-CONUS DEMIL “A” Items are
  within

  CLIN 001)

  	
   

  	
  All
  Listed FSCs Non-CONUS,

  All Listed FSCs DEMIL “B” or “Q”

  CONUS and Non-CONUS)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Bid
  Category(2) Assigned by DEMIL Code

  
	
  FSC No.

  	
   

  	
  Commodity

  Code

  	
   

  	
  FSC
  Description

  	
   

  	
  DEMIL
  “A”

  	
   

  	
  DEMIL
  “A”

  	
   

  	
  DEMIL
  “B” or “Q”

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(1)  “CV-2 Items”
(CLIN 001) are to be referred for sale to the CV-2 Purchaser throughout the
Performance Period at Delivery Points in CONUS, Alaska, Guam, Hawaii and Puerto
Rico.  “CV-1 Items” (CLIN 002) will be
referred for sale to the CV-2 Purchaser in CONUS, if at all, only after the
CV-1 Property Referrel Date.  The Bid
Categories assigned in the “CV-1 Items” column apply without regard to the
location or timing of the referral for sale to the CV-2 Purchaser.  Thus, for example, DEMIL “A” items in FSC No.
8130, “Reels and Spools,” are always assigned to “CV-1 Bid Category A” whether
referred at the beginning of the Performance Period in Guam as a CV-2 Item or
later in CONUS as a CV-1 Item.

 

(2)  Product Subpool
Bid Categories are assigned based upon FSC and DEMIL Code. A “blank” means no
Bid Category was assigned because the item was not included in the respective
sale contract within CONUS (CV-1 or CV-2).

 

35.15

 

V.                                    TERMS
AND CONDITIONS OF SALE

 

The following General Information and Instructions and Special
Conditions of Sale contained in the Defense Reutilization and Marketing Service
pamphlet entitled “Sale by Reference—Instructions, Terms and Conditions
Applicable to Department of Defense Personal Property Offered for Sale by
Defense Reutilization and Marketing Service, March 1994” (hereinafter, “Sale
by Reference”; a copy of the Sale by Reference is included as Attachment V),
are hereby incorporated by reference and become a part of this IFB and any
resulting contract:

 

	
  Part 1: General Information and Instructions: All Conditions,
  except Condition No. 4.

  
	
   

  	
   

  	
   

  
	
  Part 2: General Sale Terms and
  Conditions: All Conditions, except Condition Nos. 4, 7, 12, 14, 28, 29, 30,
  32 and 33.

  
	
   

  	
   

  	
   

  
	
  Part 4: Special Sealed Bid—Term
  Conditions: All Conditions, except Articles A, D and E.

  
	
   

  	
   

  	
   

  
	
  Part 5: Additional Special
  Circumstance Conditions, as follows:

  
	
  Article D:

  	
   

  	
  Liability and Insurance

  
	
  Article F:

  	
   

  	
  Privacy Act Materials

  
	
  Article H:

  	
   

  	
  Radio Frequency Devices

  
	
  Article L:

  	
   

  	
  Medical Devices

  
	
   

  	
   

  	
   

  
	
  The following Conditions from Part 7:
  Additional Special Circumstance Conditions—Hazardous and Dangerous Property:

  
	
  Article E:

  	
   

  	
  Dangerous Property

  
	
  Article Q:

  	
   

  	
  Cartridge Cases

  
	
  Article V:

  	
   

  	
  Certified and Non-Certified Radiation
  Emitting Electronic Products

  
	
  Article W:

  	
   

  	
  Radioactive Material

  

 

36

 

VI.                                ADDITIONAL
TERMS AND CONDITIONS OF SALE

 

The following Articles (not part of the Sale By Reference) also apply
and constitute terms and conditions of sale.

 

ARTICLE ONE. BIDDING AND CONTRACT AWARD

 

Section 1. Bid Deposit.

Each bid must be accompanied by a refundable Bid Deposit in the form of
a guaranteed instrument (cashier’s or certified check) payable to “U.S.
Treasury,” in the amount of one-hundred thousand dollars ($100,000.00).

 

Section 2. Bid Evaluation.

Award will be made to the responsive, responsible bidder that has
submitted the highest Bid Price determined by applying the bidder’s Bid Percentages
to the Acquisition Values reported in Table III-2 above. The Government
reserves the right (i) not to
award a contract if such contract is deemed not to be in the Government’s best
interest, or (ii) to reject any particular
bid if DRMS determines that accepting such bid would not be in the Government’s
best interest. Each Bid Percentage must be expressed as a percentage and must
exceed zero, and only four (4) digits to the right of the decimal in a
particular Bid Percentage, without rounding, will be included in computing a
bidder’s offered Bid Price and in computing the Contractor’s Purchase Price of
a particular item of Property during performance of the contract.

 

Section 3. Contract Award.

The “Key Persons” provisions of Contractor’s technical proposal are
incorporated into, and made part of, the resultant contract. Substitutions of
Key Persons will be permitted only with the approval of the Sales Contracting
Officer (“SCO”), and such substitutions will be approved only if the
replacement individual is as well or better qualified for a particular position
as the original designee. Prior to award of the contract, the SCO will
determine whether the potential Contractor is a responsible prospective
Contractor. If the SCO determines that a particular potential Contractor is not
a responsive, responsible bidder, the responsibility of the bidder offering the
next highest Purchase Price shall be evaluated by the SCO to determine whether
such next highest bidder is a responsible prospective Contractor.

 

Section 4. Post-Award Conference.

The Government reserves the right to conduct a post-award conference
within approximately two weeks of award to ensure that Contractor understands
the terms and conditions of the contract. The location and date of the
conference will be determined by the Government and the costs incurred by
personnel affiliated with Contractor and/or Purchaser to

 

37

 

attend shall be Contractor Indirect Costs, paid by Contractor without
reimbursement by DRMS or Purchaser.

 

Section 5. Purchaser Information.

Within thirty (30) Days of the date of award, Contractor shall provide
the following to DRMS (collectively, the “Purchaser Information”), and
Purchaser shall provide to DRMS updated Purchaser Information within ten (10) Days
of any change thereto:

 

(A)                               Notice to DRMS of
Purchaser’s complete legal name, type of business organization (corporation or
limited liability company), place of formation (i.e., Delaware), Federal
Employer Identification Number, and principal place of business.

 

(B)                               Copies to DRMS of all
documents evidencing: (i) Purchaser’s
legal formation and internal governance; (ii) if
Purchaser is a corporation, Purchaser’s election of Subchapter S status for
federal income tax purposes; and (iii) appointment
of Purchaser’s Registered Agent.

 

(C)                               Notice to DRMS of
Purchaser’s Operating Account and Purchase Account, including the name, address
and telephone contact information of the bank(s) of deposit, account numbers,
and identification of the signatories on the accounts.

 

(D)                               Copies of all documents
evidencing the opening of the Operating and Purchase Accounts, including
without limitation copies of the signature card(s), resolutions and
instructions to the bank.

 

(E)                                 Notice to DRMS of the
designation of Key Persons, if any, in addition to those identified in
Contractor’s technical proposal. Two (2) Key Persons, including Purchaser’s
Chief Executive Officer, are required pursuant to the provisions of Article 13
to authorize certain payments and transfers from the Operating Account.

 

Section 6. Formation of Purchaser;
Covenant of Contractor.

(A)                               Formation
of Purchaser.

Upon award of the contract to Contractor, Contractor shall cause the
formation of a single purpose Subchapter S corporation or limited liability
company (the “Purchaser”), over which Contractor shall retain control and in
which Contractor shall retain at least a majority (51%) ownership interest throughout the Performance Period and
until completion of the Wind-up, to perform the contract as provided herein.

 

(B)                               Covenant
of Contractor.

Contractor hereby covenants and agrees that, from and after the date of
award and until completion of the Wind-Up, Purchaser will remain a single
purpose Subchapter S corporation or limited liability company, the sole purpose
of which is to perform this contract, and which will not form or acquire any
subsidiary business entity.

 

Section 7. Transfer and Hypothecation.

(A)                               General
Prohibition.

Except as specifically provided herein or specifically approved by DRMS
in writing, neither Purchaser nor Contractor may directly or indirectly sell,
transfer, assign, pledge, offer as collateral or otherwise hypothecate all or
any part of its rights or obligations under the contract, or, with respect to
Contractor, its ownership interest in Purchaser, provided, however, that (i) Contractor
may convey or hypothecate a portion of its ownership interest in Purchaser if,
after

 

38

 

such conveyance, or after transfer in accordance with such
hypothecation, Contractor retains control over and a majority (51%) ownership
interest in Purchaser; and (ii) hypothecation of Contractor’s distribution
payments for the sole purpose of obtaining financing necessary to perform the
contract shall not be deemed violative of the provisions of this Article and
(iii) such sale, transfer, assignment or hypothecation is not to any
individual or firm that is suspended, debarred or otherwise prohibited from
participation in government contracts. For purposes of the general prohibition
set forth in this Section 7(A), the sale, transfer or hypothecation by
Contractor of any voting stock of any corporation that directly or indirectly
owns any interest in Purchaser or of any partnership interest in any general or
limited partnership that directly or indirectly owns any interest in Purchaser
shall constitute an assignment or transfer of an interest in Purchaser within
the meaning of this Section 7(A).

 

(B)                               Attempted
Transfer.

Any attempted transfer in violation of the provisions of this Article shall
be null and void, ab  initio, and shall constitute a Material
Breach of this contract.

 

(C)                               Consolidation
with CV-1.

In the event that the CV-1 and CV-2 Contractors propose consolidation
of the CV-1 and CV-2 sale contracts or operations, in whole or in part, DRMS
shall not unreasonably condition, withhold or delay its approval.

 

Section 8. Contract of Sale.

(A)                               Relationship
of Parties.

This contract is an agreement for the proceeds-sharing sale of the
Property by DRMS as seller to Purchaser as buyer. Contractor and DRMS expressly
disavow the creation of any other relationship, including without limitation
principal-agent, master-servant, employer-employee, general or limited
partnership, or joint venture, between DRMS and either Contractor or Purchaser.

 

(B)                               Parties
to Contract.

The parties to this contract are DRMS,
Contractor and, pursuant to the provisions of Section 10 of this Article 1,
Purchaser. The exclusive representative of DRMS for all purposes under this
contract is the SCO, and all notices, demands, requests, consents, approvals,
declarations, reports and other communications to DRMS from Contractor or
Purchaser shall be deemed ineffective unless addressed to the SCO and delivered
in compliance with the provisions of Article 22, Section 2.
Kormendi\Gardner Partners (“KGP”) is the DRMS Financial Advisor. KGP is neither
a party to the contract nor an agent of DRMS for any purpose. Communications
from Contractor or Purchaser to KGP shall not be deemed received by DRMS unless
provided to DRMS in compliance with the provisions of Article 22, Section 2.

 

Section 9. Authority of Sales
Contracting Officer.

The SCO has the authority on behalf of DRMS (i)
with respect to matters committed by the provisions of this contract to the
exercise of DRMS’s sole discretion, to exercise such discretion, (ii) with respect to all matters hereunder, to
represent DRMS and to commit DRMS to take such actions as are permitted or
required hereunder, and (iii) to
extend or waive timing requirements or deadlines as may reasonably be required
under the circumstances.

 

39

 

Section 10. Execution by Purchaser.

Within thirty (30) Days of the date of award,
Contractor shall cause Purchaser’s Chief Executive Officer to execute on behalf
of Purchaser and deliver to DRMS the Confirmation of Purchaser as Co-Signatory
and Co-Obligor, the form of which is attached as Attachment VI.1.9.
Notwithstanding the failure to deliver or delay in delivering such
properly executed document to DRMS, Purchaser shall be deemed to be a
co-signatory and co-obligor with Contractor with respect to this contract
effective from the date of award and Purchaser and Contractor shall be jointly
and severally liable for the performance of their respective obligations under
this contract.

 

Section 11. Replacement Contractor.

In the event of a Termination of the original
Contractor within sixty (60) Days of the date of award, the SCO may award the
contract to the next highest bidder that is determined by the SCO to be
responsible if bids have not expired, and such award is otherwise determined to
be in the Government’s best interest, price and other factors considered.

 

Section 12. Referral of CV-1 Property.

(A)                               Termination
or Cancellation of CV-1.

If referrals of CV-1 Items by DRMS for sale
to the CV-1 buyer end due to exercise of the early cancellation option in the
CV-1 contract or due to termination by DRMS by reason of a default by the CV-1
buyer, DRMS may elect in the exercise of its sole discretion to refer the CV-1
Items for sale to Purchaser pursuant to the provisions of this contract, and
Purchaser shall be required to purchase such items as provided herein. DRMS
shall provide written notice of such election to Purchaser.

 

(B)                               Expiration
of CV-1.

If referrals of CV-1 items by DRMS for sale
to the CV-1 buyer end other than by reason of cancellation or termination for
default, DRMS shall thereafter refer the CV-1 Items for sale to Purchaser
pursuant to the provisions of this contract, and Purchaser shall be required to
purchase such items as provided herein. DRMS shall provide written notice
thereof to Purchaser.

 

(C)                               CV-1
Property Referral Date.

The date upon which the initial Property
Referral List that includes CV-1 Items shall be issued to Purchaser (the “CV-1
Property Referral Date”) shall be the date that is thirty (30) Days following
the date of the DRMS notice to Purchaser that is required by the provisions of
this Section 12(C) provided, however, that DRMS and Purchaser may
agree to any other date. Subject to the early cancellation option provisions of
Section 2 of Article 2, referrals of CV-1 Items by DRMS for sale to
Purchaser shall continue thereafter throughout the Performance Period.

 

Section 13. Non-DRMS Assets

Periodically, DRMS sells non-excess items.
Title to these items remains with the military service until the sale is
complete. As such, these items are not entered on DRMS’s inventory and are not
automatically included on this sale contract. Notwithstanding, DRMS may choose,
with Purchaser’s agreement, to sell these items to the Purchaser on a
case-by-case basis. As the Government’s share of the net revenue from the sale
of these items is payable through DRMS to the owning military service, all
reasonably segregable costs and revenues must be discretely accounted for and
reported to DRMS as agreed by the parties. The sale of such items shall be

 

40

 

governed by the provisions hereof pertaining to Property referral,
storage, removal, billing, payments and related matters except as otherwise
required by DRMS and agreed by Purchaser.

 

ARTICLE TWO. PERFORMANCE PERIOD; EARLY CANCELLATION OPTION

 

Section 1. Performance Period.

Subject to the early cancellation option
provisions of Section 2 of this Article 2, the Government shall
provide the Property for an eighty-four (84) month period (the “Performance
Period”) from the date of submission to Purchaser of the initial Property
Referral List.

 

Section 2. Early Cancellation Option.

(A)                               Beginning
with the fourth (4th) Quarterly Report and in each Quarterly Report thereafter,
Purchaser shall calculate and report the “CV Performance Ratio” for
“Performance Ratio Property” (as such terms are defined below) with respect to
the immediately preceding calendar year period and for each of the two
immediately preceding calendar quarter periods.

 

(B)                               The
“CV Performance Ratio” equals Gross Proceeds obtained by Purchaser during a
particular such period from the sale of “Performance Ratio Property,” divided
by the total Acquisition Value of all such Property sold by Purchaser during
such period. “Performance Ratio Property” means all items of Property in the
Product Pool with the combinations of FSC and DEMIL Code identified in the attached
Schedule VI.2.2(B).

 

(C)                               The
“Benchmark Performance Ratio” equals (i) the
sum of the products, determined with respect to and weighted by the particular
items of Performance Ratio Property identified by the particular combinations
of FSC and DEMIL Code sold by the Purchaser during such period, of (x) The “Performance Ratio Gross ROR” set forth in such schedule VI
2.2(B), multiplied by (y) Acquisition
Value, which sum is divided by (ii) the
total Acquisition Value of all Performance Ratio Property sold by Purchaser
during the period.

 

(D)                               If
the CV Performance Ratios for such calendar year period and for both such
calendar quarter periods are less than the respective Benchmark Performance
Ratios, either DRMS or Contractor may in its sole discretion cause Termination
by notice served within thirty (30) Days of the delivery to DRMS of such
Quarterly Report and effective five (5) Days after the date of service of
the notice.

 

ARTICLE THREE. R/T/D REVIEW; REFERRAL AND REMOVAL
OR

ABANDONMENT OF PROPERTY; RCP AND SPECIAL SITUATION PROPERTY;

TITLE TO PROPERTY; RISK OF
LOSS

 

Section 1. R/T/D Review; Property Referral List

(A)                               R/T/D Review.

Each item received by DRMS that otherwise
conforms to the definition of the “Property” shall be submitted for R/T/D
review within fifteen (15) Days of receipt by DRMS. Contractor acknowledges
that R/T/D review requires forty-two (42) Days to an item’s End of Screening
Date plus an additional fifteen (15) Days thereafter. Each item that is
received by DRMS and

 

41

 

otherwise conforms to the definition of the “Property” shall be sold by
DRMS only to Purchaser upon conclusion of the R/T/D period as provided herein.

 

(B)                               Property Referral List.

(1)                                 At
least twice per calendar month, and no more often than weekly, the Government
shall furnish a consolidated list (the “Property Referral List”) of Property
referred for sale under the contract in a format as provided in Article 4.
Purchaser will not be charged for Line Items unavailable for removal. Purchaser
shall pay the Contractor’s Purchase Price for all Line Items available for
removal. The Contractor’s Purchase Price is based on the Government established
“Acquisition Value” of each particular item of Property as reported on the
corresponding Property Referral List. The Acquisition Value is based on
Government data and is not subject to dispute other than as provided in Article 6.
Delivery of the initial Property Referral List after award of the contract, and
Purchaser’s initial removal of Property, shall be governed by the provisions of
Sections 8 and 9 below of this Article 3.

 

(2)                                 Each
item of Property shall be identified on a Property Referral List that is
submitted to Purchaser reasonably promptly after such item’s End of Screening Date.

 

Section 2. Delivery Points; DRMS
Customer Liaison; Phase-In Period; DRMS Infrastructure Reduction.

(A)                               Delivery
Points.

Property that is referred for sale to Purchaser shall be located within
the United States (including Alaska and Hawaii), Guam or Puerto Rico, at (i) a DRMO, (ii) a
DLA supply depot or associated warehousing facility (“DLA Depot”), (iii) a warehousing facility other than a DRMO that is
operated by or on behalf of DRMS (“DRMS Warehouse”), (iv) other governmental locations, including without
limitation military facilities and such other locations as may be designated in
its sole discretion by DRMS (collectively, “Special Situation Locations”), or (v) a warehousing facility operated by or on behalf of
Purchaser (“Purchaser Warehouse”). (DRMOs, DLA Depots, DRMS Warehouses, Special
Situation Locations and Purchaser
Warehouses are hereinafter collectively termed “Delivery Points.”) DRMS may
elect in its sole discretion and at its sole expense to pack, load and
transport Property, either before or after R/T/D review, to any Delivery Point
either before or in connection with referring such Property for sale to
Purchaser. DRMS and Purchaser may elect in the exercise of their sole
discretion to have particular items of Property shipped by or on behalf of DRMS
directly to Purchaser’s re-sale buyers and to allocate the costs thereof
between DRMS and Purchaser as the parties may agree.

 

(B)                               Delivery
Point Directory; DRMS Customer Liaison.

(1)                                 Within
30 days of award of this contract, DRMS shall provide to Contractor, in writing
and in machine readable word processing (*.doc) file format, the listing (the
“Delivery Point Directory”) as of the date of award of all operating DRMOs,
DRMS Warehouses and DLA Depots in the United States, Guam and Puerto Rico with
DRMO Name, DRMO RIC and RIC Suffix, the address and telephone for each such
facility an indication of whether such facility is initially designated by DRMS
as a Restricted Access Facility, and with respect to each listed facility, the
name of the DRMS employee or other government representative designated by DRMS
to serve as the principal point of contact for Purchaser with respect to such
facility (each, the “DRMS Customer Liaison” for such facility), the address and
telephone of the DRMS Customer

 

42

 

Liaison if either differs from that for the facility itself, the
electronic mail address for the DRMS Customer Liaison if available, a
supervisory contact for the DRMS Customer Liaison, and the date, if applicable,
and if publicly available, that such facility is scheduled to be closed.

 

(2)                                 Throughout the
Performance Period, DRMS shall provide notice to Purchaser reasonably promptly
of changes in the Delivery Point Directory, including without limitation notice
of any scheduled or actual establishment or closure of any DRMO, DRMS Warehouse
or DLA Depot in the United States, Guam or Puerto Rico, such notice to be
provided within thirty (30) Days of the date that knowledge of such scheduled
or actual establishment or closure becomes available to the public.

 

(3)                                 The DRMS Customer
Liaison for the DRMO, DRMS Warehouse or DLA Depot that is identified on a
Property Referral List as the accountable DRMS facility for a particular item
of Property shall arrange or permit reasonable access for Purchaser to such
Property as provided herein.

 

(C)                               Phase-In
Period.

Purchaser shall phase in its performance of
the contract as provided in this Section.

 

(1)                                 Within five (5) months
of the post-award conference, (i) Purchaser
shall begin accepting Delivery of Property at the fifteen (15) “Initial
Delivery Points” identified in Table VI.3.2.C below, and (ii) Purchaser
shall serve notice to DRMS of Purchaser’s proposed schedule for accepting
referrals of Property at the balance of the locations in the Delivery Point
Directory. Within fifteen (15) Days after receipt of such notice, DRMS shall
serve notice to Purchaser of the schedule (the “Phase-In Schedule”) for
phasing in referrals at all Delivery Points. Unless DRMS in the exercise of its
sole discretion elects to extend the Purchaser’s proposed timetable, the
Phase-In Schedule shall provide for referrals to begin at all Delivery
Points no later than eight (8) months after the post-award conference.
Purchaser may require DRMS to begin referrals at some or all of the Initial
Delivery Points earlier than five months after the post-award conference by
serving its request therefor with three months or more notice. Purchaser may
request acceleration of referrals at any Delivery Point, and DRMS will respond
to such request in the exercise of its sole discretion. DRMS shall refer
Property for sale to Purchaser only as provided on the Phase-In Schedule until
the date that is six (6) months after the date that the initial Property
Referral List is submitted to Purchaser (such six month period being the
“Phase-In Period”) except as the Phase-In Schedule may be modified by
agreement reached by the parties in the exercise of the sole discretion of
each. During the Phase-In Period DRMS reserves the right to sell to buyers,
other than Purchaser, such Property that is located at Delivery Points that,
pursuant to the Phase-In Schedule, are at the time not yet scheduled for
referrals of Property for sale to Purchaser. Subject to staffing and facilities
constraints, DRMS intends to accumulate Property at each particular Delivery
Point in advance of the scheduled first referral of Property there to provide
the Purchaser with some beginning inventory with which to begin its operations.
Nevertheless, DRMS cannot and does not represent that there will be any
particular level of inventory, or necessarily any at all, at any particular
site when referrals of Property begin there.

 

43

 

Table
VI.3.2.C

Initial Delivery Points

 

	
  No.

  	
   

  	
  Name

  	
   

  	
  City

  	
   

  	
  State

  
	
  1

  	
   

  	
  Lejeune

  	
   

  	
  Jacksonville

  	
   

  	
  FL

  
	
  2

  	
   

  	
  Mechanicsburg

  	
   

  	
  Mechanicsburg

  	
   

  	
  PA

  
	
  3

  	
   

  	
  San Antonio

  	
   

  	
  San Antonio

  	
   

  	
  TX

  
	
  4

  	
   

  	
  Riley

  	
   

  	
  Fort Riley

  	
   

  	
  KS

  
	
  5

  	
   

  	
  Tucson

  	
   

  	
  Tucson

  	
   

  	
  AZ

  
	
  6

  	
   

  	
  Stockton

  	
   

  	
  Stockton

  	
   

  	
  CA

  
	
  7

  	
   

  	
  Texarkana

  	
   

  	
  Hooks

  	
   

  	
  TX

  
	
  8

  	
   

  	
  San Diego

  	
   

  	
  Imperial Beach

  	
   

  	
  CA

  
	
  9

  	
   

  	
  Warner Robbins

  	
   

  	
  Warner Robbins

  	
   

  	
  GA

  
	
  10

  	
   

  	
  Oklahoma City

  	
   

  	
  Oklahoma City

  	
   

  	
  OK

  
	
  11

  	
   

  	
  Jackson

  	
   

  	
  Columbia

  	
   

  	
  SC

  
	
  12

  	
   

  	
  Corpus Christi

  	
   

  	
  Corpus Christi

  	
   

  	
  TX

  
	
  13

  	
   

  	
  Barstow

  	
   

  	
  Barstow

  	
   

  	
  CA

  
	
  14

  	
   

  	
  Meade

  	
   

  	
  Baltimore

  	
   

  	
  MD

  
	
  15

  	
   

  	
  Eglin

  	
   

  	
  Ft. Walton Beach

  	
   

  	
  FL

  

 

(2)                                 During the Phase-In
Period, DRMS shall not refer Property that is located at DLA Depots or at
Special Situation Locations for sale to Purchaser, provided, however, that
Purchaser may request to receive Property at any such location by so notifying
DRMS, and DRMS shall exercise reasonable efforts to accommodate any such
request

 

(3)                                 Upon the conclusion of
the Phase-In Period and thereafter during the balance of the Performance
Period, DRMS shall refer all Property at all United States, Guam and Puerto
Rico DRMOs and all other Delivery Points for sale to Purchaser under the
contract.

 

(D)                               DRMS
Infrastructure.

Contractor acknowledges that DRMS intends to reduce its infrastructure,
including without limitation by closure of some or all DRMOs and/or reduction
of operating hours at particular DRMOs, or by establishment of DRMS Warehouses,
or by other methods or combinations of methods. Contractor further acknowledges
that this contract shall remain in force notwithstanding such infrastructure
reduction measures that DRMS in its sole discretion may effect.

 

(E)                                 Maximum
Number of DRMOs and DRMS Warehouses.

DRMS does not expect to operate in excess of two hundred (200) DRMOs
and DRMS Warehouses within the United States at any one time during the
Performance Period. At any time that such number is exceeded, all Property
referred for sale to Purchaser at such facilities that are the then most
recently established such facilities and comprise the excess over two hundred
(200) shall be deemed to be referred for sale at Special Situation Locations
and not

 

44

 

made available for On-Site Processing for the purpose of determining
Seller Indirect Costs pursuant to the provisions of Section 4(F) of
this Article 3.

 

Section 3. R/T/D of the Property;
Property Storage; Delivery of Property to Purchaser and Passage of Title.

(A)                               R/T/D
of the Property.

(1)                                 With respect to
Property referred for sale at any particular DRMO or DRMS Warehouse other than
Restricted Access Facilities, DRMS shall from time to time elect in the
exercise of its sole discretion either (i) to
segregate the Property physically at government expense from other DRMS items
as received from generators and conduct R/T/D of the Property in such
segregated space (“Segregated R/T/D”), or (ii) to
conduct R/T/D of the Property and other DRMS items together (“Commingled RTD”).

(2)                                 DRMS shall conduct
R/T/D of Property referred for sale at Restricted Access Facilities, DLA Depots
and Special Situation Locations as DRMS elects from time to time in the
exercise of its sole discretion.

 

(3)                                 In the event that the
CV-1 and CV-2 sale contracts or operations are consolidated, the mixing of CV-1
and CV-2 Property for R/T/D review shall not be deemed “Commingled RTD” as such
term is used in this Article 3.

 

(B)                               Property
Storage.

(1)                                 Each DRMO and DRMS
Warehouse other than Restricted Access Facilities shall provide to Purchaser (i) a portion of its administrative space to the extent
that DRMS determines in the exercise of its sole discretion that such space can
be made available, (ii) a
contiguous portion of its covered storage space, and (iii) a
contiguous portion of its outdoor storage space (such storage space being,
collectively, “Purchaser’s Dedicated Storage.” DRMS shall specify on the
Phase-In Schedule the initial space allocations for the facilities
designated thereon, and DRMS shall notify Purchaser of the initial space
allocations at all other DRMOs and DRMS Warehouses within ninety (90) Days of
submission of the initial Property Referral List to Purchaser. Such initial
space allocations shall be specified by DRMS in the exercise of its sole
discretion. After referrals of Property for sale to Purchaser have begun at any
particular facility, including facilities established by DRMS after the date of
award, DRMS and Purchaser shall adjust space allocations from time to time as
is reasonably required in the circumstances to accommodate relative inflows to
the facility of Property and other DRMS items. Purchaser may use Purchaser’s
Dedicated Storage to store, inspect, lot, tag, pack and load Property as
provided herein, or for any other purpose that is desired by Purchaser in the
exercise of its sole discretion and that is not inconsistent with the express
provisions of this contract.

 

(2)                                 At DRMOs and DRMS
Warehouses other than Restricted Access Facilities, DRMS shall provide
reasonably necessary utility services to Purchaser to the extent that DRMS
determines in the exercise of its sole discretion that such services, including
water, electricity, heat and telephones, are available at a particular
facility. Subject to approval by DRMS, which approval shall not be unreasonably
withheld, and subject to host installation restrictions, Purchaser may arrange
for additional services at any particular such facility in the exercise of its
sole discretion and at Purchaser’s sole expense.

 

(3)                                 Subject to approval by
DRMS, which approval shall not be unreasonably withheld, and subject to host
installation restrictions, Purchaser may install fixtures or make other improvements
to the premises at any particular DRMO or DRMS Warehouse other

 

45

 

than Restricted Access Facilities, provided, however that any such
improvements permanently affixed to such premises shall become the property of
DRMS at the conclusion of the Wind-Up if so designated by DRMS in the exercise
of its sole discretion at any time during the final ninety (90) Days of the
Performance Period.

 

(4)                                 Except as otherwise
provided herein, Purchaser shall not be provided Purchaser’s Dedicated Storage
or administrative space at DLA Depots, Special Situation Locations or
Restricted Access Facilities except as a particular facility’s restrictions
permit.

 

(C)                               Transfer to
Purchaser of Control Over and Title to the Property.

DRMS shall transfer to Purchaser control over
and title to particular items of Property as provided in this Subsection 3(C) (such
transfer being the “Delivery” of the subject Property). Delivery of particular
items of Property shall not occur before submission to Purchaser of the
corresponding Property Referral List. DRMS and Purchaser shall cooperate to
effect Delivery of Property reasonably promptly after such submission.

 

(1)                                 DRMOs
and DRMS Warehouses other than Restricted Access Facilities. Delivery of
Property at DRMOs and DRMS Warehouses other than Restricted Access Facilities
shall be effected as follows.

 

a.                                       DRMS
and Purchaser shall review the Property Referral List and the corresponding
items of Property and jointly acknowledge in writing the Delivery and the date
thereof, with any missing Line Items noted on such writing.

 

b.                                       If
DRMS elects Commingled R/T/D, DRMS shall transfer at government expense the
subject Property to Purchaser’s Dedicated Storage and Delivery shall occur upon
such transfer.

 

c.                                       If
DRMS elects Segregated R/T/D, DRMS shall elect in its sole discretion either (i) Delivery of the subject Property in place, and
Delivery shall occur upon the review by DRMS and Purchaser of the Property
Referral List and the corresponding items of Property, or (ii) Delivery
upon transfer of the subject Property by DRMS at government expense to
Purchaser’s Dedicated Storage.

 

d.                                       Purchaser
shall transfer Property that is delivered in place to Purchaser’s Dedicated
Storage as reasonably required to accommodate DRMO operations upon request by
DRMS. DRMS may elect in the exercise of its sole discretion, at any time and at
government expense, to transfer Property that has been delivered in place to
Purchaser’s Dedicated Storage.

 

e.                                       Notwithstanding
any provision herein to the contrary, DRMS and Purchaser shall cooperate as
reasonably required to facilitate the R/T/D review, Delivery and re-sale of any
Property that, due to size, weight, location, space limitations, handling
difficulty or other characteristics, requires special procedures to effect
processing and re-sale economically. Such special procedures may include,
without limitation, DRMS receipt, R/T/D review, Delivery and direct re-sale by
Purchaser without moving the Property after receipt and prior to re-sale.

 

46

 

(2)                                 Restricted
Access Facilities, DLA Depots and Special Situation Locations. Delivery of
Property at Restricted Access Facilities, DLA Depots and Special Situation
Locations shall occur upon removal of the subject Property from its Delivery
Point by or on behalf of Purchaser. If an authorized representative of
Purchaser effects removal, DRMS and Purchaser shall review the subject items of
Property and acknowledge in writing the Delivery and the Date thereof, with any
missing Line Items noted on such writing. If a person, vendor or subcontractor
other than an authorized representative of Purchaser effects removal, Delivery
shall occur upon removal and Purchaser shall review the subject items of
Property upon arrival at Purchaser’s storage facility and shall notify DRMS
reasonably promptly of any missing Line Items.

 

(3)                                 Purchaser
Warehouses. DRMS may elect in the exercise of its sole discretion and at
its sole expense to pack, load and transport Property from
government-controlled premises for referral for sale to Purchaser at Purchaser
Warehouses. In that event, Delivery shall occur upon removal from such
Government-controlled premises and Purchaser shall review the subject items of
Property reasonably promptly upon arrival and shall notify DRMS reasonably
promptly of any missing Line Items.

 

Section 4. Access to Property; Removal;
On-Site Processing; Costs of Removal.

(A)                               Purchaser’s
Access to Property.

(1)                                 Purchaser, Purchaser’s
subcontractors and Contractor shall have access to Property at each DRMO and
DRMS Warehouse during all hours that such facility normally staffs sales,
warehousing, receiving or other functions, and in no event for less than two (2) Business
Days each calendar week for at least eight (8) hours each, to inspect,
lot, tag, pack, load or ship such Property, and, except as otherwise provided
herein, for such other purposes as Purchaser deems appropriate in its sole
discretion. Purchaser shall coordinate such access with the management of each
particular DRMO or DRMS Warehouse. Except as otherwise provided herein, and
subject to applicable law and host installation regulations, Purchaser may
store and use Purchaser’s materials handling equipment such as forklifts at
DRMOs and DRMS Warehouses other than Restricted Access Facilities. Subject to
applicablelaw and host installation regulations, DRMS shall provide for the use
of Purchaser, at government expense and at any particular DRMO or DRMS
Warehouse, such government owned materials handling equipment as is available
for the materials handling tasks that are reasonably required of Purchaser at
such Delivery Point.

 

(2)                                 Due to host
installation restrictions or for other reasons, a particular DRMO or DRMS
Warehouse may occasionally and temporarily be unable to provide storage as
provided in Section 3 above of this Article 3 or access as provided
in Subsection (1) above of this Section 4(A). Any such facility
that is not reasonably able to provide such storage or access other than
occasionally and temporarily shall be deemed a “Restricted Access Facility.”
Concurrently with award of this contract, DRMS shall provide to Contractor in
writing a list of DRMOs and DRMS Warehouses that DRMS initially designates as
Restricted Access Facilities. DRMS may add or delete entries on that list from
time to time by written notice to Purchaser.

 

(3)                                 Except as provided in
Sections 4(C) and 4(E) below of this Article 3, Purchaser shall
not be permitted access at any time to any Property at DLA Depots, Special
Situation Locations and Restricted Access Facilities, other than such access as
is reasonably necessary for removal of Property when removal of such Property
is requested by DRMS.

 

47

 

Except as otherwise provided herein, Purchaser shall neither use nor
store Purchaser’s materials handling equipment at DLA Depots, Special Situation
Locations and Restricted Access Facilities. Subject to applicable law and host
installation regulations, DRMS shall provide to Purchaser, at government
expense and at any such Delivery Point, the use of such materials handling
equipment as is available for the materials handling tasks that are reasonably
required of Purchaser at such Delivery Point.

 

(4)                                 Except as otherwise
provided herein, the on-site call of an auction sale or spot bidding shall not
be permitted at any time at any Delivery Point without express permission from
DRMS upon request from Purchaser, which request may be granted or denied by
DRMS in the exercise of its sole discretion.

 

(5)                                 Purchaser shall comply
with all applicable safety regulations at host installations, including,
without limitation, regulations pertaining to materials handling equipment.

 

(B)                               Re-Sale
Buyers’ Access to Property.

Except as provided in Sections (4)(C), 4(D) and
4(E) below of this Article 3, Purchaser’s prospective re-sale buyers
shall not be permitted access to Property at any Delivery Point at any tune.

 

(C)                               Removal;
Packing and Loading.

(1)                                 Removal.
Except as provided in Section 4(E) below, and except in special
circumstances that reasonably delay removal, Purchaser shall cause removal of
Property as follows:

 

a.                                       With
respect to Property that is located at a DRMO or DRMS Warehouse, as is
reasonably necessary from time to time to accommodate the inflow of Property to
Purchaser’s Dedicated Storage at any particular such facility, provided,
however, that, except by special arrangement with a particular Restricted
Access Facility, Property referred for sale at Restricted Access Facilities
shall be removed no later than the earlier of (i) sixty
(60) Days after submission to Purchaser of the corresponding Property Referral
List, or (ii) reasonably promptly upon
request by DRMS.

 

b.                                       With
respect to Property that is located at a Special Situation Location and
Property that is located at a DLA Depot other than RCP Property, within thirty
(30) Days of delivery of the corresponding Property Referral List unless DRMS
directs earlier removal pursuant to the provisions of Subsection (c) below
of this Section 4(C)(1). The DRMS Customer Liaison shall timely notify
Purchaser of whether Purchaser will be required to pack and/or load such
Property. If Purchaser’s initial attempt to remove the Property is unsuccessful
because, notwithstanding such notice, the Property is inadequately packed by
government personnel or loading by government personnel is unexpectedly
unavailable, Purchaser shall return within thirty (30) Days with materials and
equipment necessary to effect removal.

 

c.                                       Occasionally
and as circumstances reasonably require, DRMS may direct removal of Property
within shorter time periods than those provided in Subsections (b) and (c) above
of this Section 4(C)(1). All such Property shall be deemed to be referred
for sale at a Restricted Access Facility for the purpose of applying the
provisions of Section 4(F)(2) below of this Article 3.

 

48

 

(2)                                 Packing
and Loading.

 

a.                                       Property at DRMOs and DRMS Warehouses. Property at DRMOs and
DRMS Warehouses, other than Restricted Access Facilities, shall be packed by
Purchaser. If Purchaser so requests and government personnel are reasonably
available therefor, DRMS or other government personnel shall transport the
Property to Purchaser’s conveyance and place the Property thereon at government
expense but shall not enter upon such conveyance or secure the Property for
transport Purchaser shall both pack and load such Property for removal by
Purchaser’s re-sale buyers. Removal of Property from DRMOs and DRMS Warehouses
other than Restricted Access Facilities by Purchaser’s re-sale buyers shall be
permitted throughout the Performance Period. Costs incurred by Purchaser for
packing and loading Property at DRMOs and DRMS Warehouses shall be Direct
Costs.

 

b.                                       RCP Property at DLA Depots. RCP Property at DLA Depots shall
be packed suitably for transport by government personnel at government expense.
Such Property shall be shipped to the particular destination or destinations
that Purchaser designates in the exercise of its sole discretion, and Purchaser
shall be charged as a Direct Cost the DLA shipping charge then applicable to
such Property.

 

c.                                       Other Property at DLA Depots; Special Situation Locations; Restricted
Access Facilities. Property other than RCP Property referred for
sale to Purchaser at DLA Depots, and Property referred for sale at Special
Situation Locations and Restricted Access Facilities, shall be packed and
loaded suitably for transport by DRMS or other government personnel at
government expense, provided, however, that Purchaser shall pack and/or load
such Property as requested by DRMS upon reasonable notice, and the actual and
minimum reasonable costs thereof shall be Seller Indirect Costs. Except as
provided in Section 4(E) of this Article 3 below, Purchaser’s
re-sale buyers may not pick up Property at DLA Depots, Special Situation
Locations and Restricted Access Facilities.

 

(D)                               On-Site
Processing.

Purchaser’s prospective re-sale buyers shall
be permitted access subject to host installation restrictions to each DRMO and
DRMS Warehouse other than Restricted Access Facilities to inspect the Property
in connection with Purchaser’s marketing activities, including without
limitation off-site auctions and negotiated sales. Such prospective re-sale buyers
shall be accompanied within the DRMO or DRMS Warehouse at all times by
Purchaser or its designee. Re-sale buyer access at a particular DRMO or DRMS
Warehouse shall be permitted for at least two (2) Business Days each
calendar week for at least eight (8) hours each, provided, however, that (i) Purchaser shall coordinate such access with the
management of each particular DRMO or DRMS Warehouse, (ii) Purchaser
shall conduct such re-sale buyer access in a manner that is not unreasonably
disruptive of the facility’s operations, and (iii) such
re-sale buyer access shall be permitted only during such times as Purchaser
access is permitted pursuant to the provisions of Section (4)(A)(1) above
of this Article 3. (Re-sale buyer access to Property as provided in this Section 4(D) is
hereinafter termed “On-Site Processing.”)

 

49

 

(E)                                 DRMS Option to Permit
On-Site Processing.

Throughout the Performance Period, DRMS in
the exercise of its sole discretion may designate particular Property at a
particular DLA Depot, Special Situation Location or Restricted Access Facility
as available for On-Site Processing by serving notice thereof upon or after
delivery of the Property Referral List and before removal of such Property by Purchaser.
On-Site Processing of such Property at such location shall be permitted for
sixty (60) Days following service of such notice, and Purchaser shall cause
removal of such Property within such sixty (60) Day period. The DRMS Customer
Liaison for such Property shall arrange access to the Property for Purchaser
and for prospective re-sale buyers throughout such sixty (60) Day period that
is consistent with the provisions of Sections 4(A)(1) and 4(D) above
of this Article 3.

 

(F)                                 Costs of Removal.

(1)                                 On-Site
Processing, DRMOs, DRMS Warehouses. With respect to Property that is made
available to Purchaser for On-Site Processing, the costs incurred by Purchaser
to transport such Property from its Delivery Point are Direct Costs.

(2)                                 RCP
Property. The costs of removing RCP Property referred for sale at a DLA
Depot shall be governed by the provisions of Section 4(C)(2)(b) above
of this Article 3.

 

(3)                                 Other
Property. With respect to Property referred for sale at (i) Special Situation Locations that
is not made available for On-Site Processing, (ii) DLA
Depots other than RCP Property, and (iii) Restricted
Access Facilities, the actual and minimum reasonable costs incurred by
Purchaser to pack, load and surface transport such Property from its Delivery
Point to Purchaser’s nearest storage facility are Seller Indirect Costs,
provided, however, that transport costs in excess of one dollar and twenty
cents ($1.20) per mile, and for transport in excess of five hundred (500) miles
from the Delivery Point, shall be deemed Direct Costs. Purchaser shall notify
DRMS within fifteen (15) Days of the establishment or closure of each storage
facility operated by or for Purchaser, and for each newly established facility
such notice shall include address, telephone and on-site management contact
information.

 

(G)                               Base Closures.

(1)                                 Contractor
acknowledges that, subject to change by the Department of Defense, certain
defense installations are scheduled for closure (each, a “Base Closure”) during
the prospective Performance Period of this contract. Such Base Closures
presently include Seneca Army Depot, Romulus, New York, and McClellan Air Force
Base, Stockton, California, both presently scheduled for September 30,
2000. Contractor further acknowledges that Base Closures often generate
substantially increased volumes of surplus items that must be processed on
accelerated schedules.

 

(2)                                 DRMS and Purchaser
shall cooperate and institute special procedures as reasonably necessary in
connection with Base Closures to process and re-sell Property efficiently. Such
cooperation shall include, without limitation, facilitation of shortened R/T/D
review periods, extended access for Purchaser and re-sale buyers, on-site calls
of auctions and spot bidding, and other special procedures as reasonably
required.

 

(H)                               Damage
to Government Property; Clean-Ups of Spills.

Purchaser shall be responsible to DRMS for
any damage that is caused to any government equipment or facility or DRMS
Warehouse that arises out of the negligence of Purchaser, its vendors or its
re-sale buyers. Purchaser shall be responsible for cleaning up spills of
hazardous

 

50

 

material caused by Purchaser,
its vendors or its re-sale buyers without regard to degree of culpability.

 

Sections 5. Title.

Title to the Property shall vest in Purchaser
upon Delivery of the Property. If Purchaser makes a determination under Section 6
below to choose to abandon all rights to any Property, the Government will
retain the payment for such items. With respect to Property that is not
abandoned, any subsequent re-sale transactions are between Purchaser and the
re-sale buyers, not between the Government and the re-sale buyers. Any disputes
or claims resulting from such transactions are between Purchaser and re-sale
buyers, not the Government.

 

Section 6. Abandonment.

Except with respect to RCP Property referred
for sale at a DLA Depot, Purchaser has the option before removal of a
particular item of Property from its Delivery Point to abandon all rights to any
Property included on a Property Referral List and not be required to effect
removal. Except as otherwise provided herein, abandonment does not relieve
Purchaser of the responsibility for payment of the Contractor’s Purchase Price
as provided in Article 5. Such determination to abandon Property must be
made in writing to the SCO as soon as possible but not later than ninety (90)
Days from submission of the corresponding Property Referral List, provided,
however, that, in the exercise of its sole discretion, DRMS may grant one or
more extensions of this deadline in response to a request therefor submitted to
the SCO in writing from Purchaser before the expiration of the right to abandon
as provided in this Section 6.

 

Section 7. Risk of Loss.

DRMS shall bear the risk of loss, damage or
destruction of the Property until Delivery thereof in accordance with the
provisions of Section 3(C) above of this Article 3, and
Purchaser shall bear such risk thereafter, provided, however, that (i) Purchaser shall pay to DRMS the full amount of the
Contractor’s Purchase Price for any item of Property lost or damaged before
passage of title as a result of Purchaser’s negligence, but DRMS shall have no
claim for consequential damages against Purchaser or Contractor based upon such
loss or damage, and (ii) Purchaser
shall be entitled to a credit for the full amount of the Contractor’s Purchase
Price for any item of Property that is lost or damaged while located at a
Delivery Point as a result of negligence on the part of the Government or any
contractor of the Government, but neither Purchaser nor Contractor shall have a
claim against the Government for consequential damages based upon such loss or
damage, and (iii) the party asserting a
claim under the provisions of this Section 7 shall serve notice thereof to
the other party within a reasonable time after the facts underlying such claim
are discovered or, in the circumstances, should have been discovered.

 

Section 8. Initial Property Referral List.

DRMS shall deliver the initial Property
Referral List to Purchaser on the date that is the later of (i) the date provided therefor in the Phase-In
Schedule, or (ii) the date by which DRMS
has received and, as required in certain respects by the provisions of this
contract, has approved, all of the materials and information required to be
provided to DRMS under the provisions hereof. Such provisions include but are
not necessarily limited to the provisions of Article 1 (Purchaser
Information and Confirmation of Purchaser as Co-Signatory and Co-Obligor),
Article

 

51

 

5 (Pre-Payment), Article 11 (evidence of required insurance
coverage), and Article 20 (designation of Contractor’s Appointed
Arbitrator).

 

Section 9. Initial Removal of Property.

Purchaser shall not remove any Property from
any Delivery Point until submission of the initial Property Referral List by
DRMS to Purchaser.

 

ARTICLE FOUR. PROPERTY REFERRAL LIST

 

Section 1. Access to R/T/D Inventory in Process.

DRMS shall post information on current R/T/D
inventory in process on the DRMS World Wide Web internet site, http://www.drms.dla.mil.

 

Section 2. Property Referral List.

At least twice monthly and no more often than
weekly, DRMS shall provide to Purchaser, in machine readable, comma delimited
text format, delivered on a removable magnetic or optical storage medium, such
as a CD-ROM, the following information for all items of Property being referred
for sale under this contract (the “Property Referral List”) since the
immediately preceding Property Referral List:

 

(A)                               DRMO
Name (DRMO_NAME). The name of the accountable DRMO, DRMS Warehouse or DLA
Depot in a 19 character field. The name usually reflects physical location
(e.g., DRMO Tobyhanna is located on Tobyhanna Army Depot).

 

(B)                               DRMO RIC and
RIC Suffix (DRMO_RIC and RIC_SFX). Together these 3 and 1 character,
respectively, alphanumeric fields provide the electronic name of the DRMO, DRMS
Warehouse or DLA Depot where the turn-in of Property was processed.

 

(C)                               Disposal
Turn in Document Number (DTID_NO). The “DTID” is the official form (DD 1348-1)
used by all military services to turn in excess property. DTID_NO is a 14 or 15
character alphanumeric code in a 15 character field. It consists of:

 

(1)                                  a 6 character
Department of Defense Activity Account Code (DODAAC) that identifies the
turn-in activity

(2)                                  a 4 digit Julian date

(3)                                  a 4 to 5 digit serial
number.

 

A particular value for DTID_NO may be
assigned either to a single object or to a group of objects. Objects grouped
together on a single DTID_NO collectively constitute a single “Line Item” of
Property. Thus, a single DTID form, each of which bears a unique combination of
DTID_NO, DRMO_RIC and RIC_SFX, could list any quantity of a particular type of
Property. That quantity constitutes one Line Item. Note: For RCP Property, the
Property Referral List will include a Requisition Number in place of a DTID_NO.
The makeup of a Requisition Number is basically the same as for a DTID except
that the DODAAC will always be “SC4401.” In addition, the Requisition Number
will not always be a unique number because partial shipments of the Property
for a particular Line Item will have the same Requisition Number.

 

52

 

(D)                               National Stock Number [or] Local Stock
Number. This 13 character
code identifies the particular type of Property that comprises the Line Item
and is constructed using the following two fields:

 

(1)                                 Federal Supply Classification (FSC). This 4 digit numerical code
identifies the general type of property (e.g., FSC 3411 is Boring Machines).

 

(2)                                 National Item Identification
Number Local Stock Number
(NIIN_LSN). A 9 position field that contains either:

(a)                                  National Item Identification
Number (NIIN). The federally
assigned numerical code that identifies an item of Property as meeting certain
specifications. Items that are not perfectly identical, and/or were produced by
different manufacturers, but which meet identical procurement specifications,
may be identified by the same NIIN.

 

- or -

 

(b)                                  Local Stock Number (LSN): Items for which the NIIN is unknown
or unavailable (in many cases, items that were locally purchased or fabricated)
have a text identifier assigned by the generator or at the DRMO in this 9
character field.

 

(E)                                 Additional NSN Data (ADD_DATA). Add_Data is a 2 character field
that indicates if the NSN is an end item as opposed to a component
Additionally, if a “#” is found in this field, it indicates that one or more of
the DEMIL Code, Item Unit Price, Inventory Item Name or Item Unit of Issue were
entered by an operator and not downloaded from the Federal Logistics
Information System.

 

(F)                                 Inventory Item Name (INV_ITM_NAME). This 29 character field
contains the name officially assigned to the item (e.g., Computer, Digital).

 

(G)                               Item Unit of Issue (ITM_UI). This 2 character field describes
how all quantities are counted (e.g., each, box, dozen, hundred count, gross,
etc.).

 

(H)                               Quantity Available (QTY_AVAIL). A 9 position numeric field
containing the quantity (measured in the unit of issue) that is referred for
sale to Purchaser.

 

(I)                                    Item Unit Price (ITM_UP). This fifteen (15) character numeric field
provides the Acquisition Value of a single unit of issue.

 

(J)                                 Acquisition Value Available. A numeric field containing the total Acquisition
Value of the Line Item. It is calculated by multiplying the Quantity Available (QTY_AVAIL) by the Item Unit
Price (ITM_UP).

 

(K)                               Property Storage Location. This 11 character code provides the
physical location of the Property as assigned by the accountable DRMO. It is
constructed of the following two fields:

 

(1)                                 Site Location Code (SITE_LOC_CD). This 2 character alphanumeric
field identifies the storage site.

 

(2)                                 Storage Location Code (STG_LOC_CD). This 9 character alphanumeric
field identifies the actual storage location

 

53

 

within the site (e.g. C020303C0 refers to
building C, section 02, aisle 03, location 03, 3rd shelf from
the bottom).

 

(L)                                Bid
Category. This one (1) character field contains the Bid Category (A,
B, C, D or E) that corresponds to the FSC of
the item. Tables IV-1a and IV-1b in Part IV above of this IFB list the Bid
Category for each of the FSCs in the Product Pool.

 

(M)                             Bid
Percentage. This numeric field contains the Contractor’s Bid Percentage for
the Bid Category corresponding to the FSC of the item.

 

(N)                               Contractor’s
Purchase Price. This numeric field is equal to the product of Bid Category
times Bid Percentage. This amount will be reflected on the corresponding
Invoice to Purchaser.

 

(O)                              Hazardous
Material Code. This one (1) character field contains an “M” or a “W”
if the corresponding item is deemed to be, or to be contaminated by, hazardous
material or hazardous waste, respectively. The Property does not include any
“M” or “W” items, so this field should always be blank.

 

(P)                                DEMIL
Code. This one (1) character field contains “A,” “B” or “Q.”

 

Section 3. Documentation and References.

DRMS shall provide training, documentation,
manuals and references as reasonably requested by Purchaser to allow Purchaser
to determine the meaning of coded information.

 

ARTICLE FIVE. PAYMENT BY PURCHASER FOR PROPERTY

 

Section 1. Payment Deposit.

Within ten (10) Days of the date of
award, Contractor shall pay to DRMS the amount of four-hundred thousand dollars
($400,000.00) (the “Pre-Payment”). The Pre-Payment must be made via guaranteed
instrument (cashier’s or certified check), wire transfer or electronic funds
transfer (EFT). The Government shall hold Contractor’s Bid Deposit and this
Pre-Payment (collectively, the “Payment Deposit”) until the completion of the
Wind-Up and will use the Payment Deposit to offset unpaid billings or to offset
any other claims by DRMS against Contractor or Purchaser. The Government shall
return any available balance of the Payment Deposit, without interest thereon,
to Contractor at the completion of the Wind-Up as provided in Article 21.

 

Section 2. Payment by Purchaser for Property.

(A)                               Invoices and Payments.

DRMS shall periodically submit to Purchaser
in machine readable, comma delimited ASCII file format, delivered on a
removable magnetic or optical storage medium, such as a CD-ROM, a billing
(“Invoice”) for payment for the Property referred for sale to Purchaser since
the last preceding Invoice. The Invoice shall be in the total amount of the
Contractor’s Purchase Price of the subject Property, determined by multiplying
the Acquisition Value of each Line Item by the corresponding Bid Percentage for
the applicable FSC, less any credits to which the Purchaser is entitled (the
balance being the “Total Invoiced Amount”).

 

54

 

(B)                               Amounts Payable to DRMS and
to KGP; Timing of Payments.

Each Invoice shall identify (i) an amount (the “DRMS Invoiced Amount”) equal to
ninety-seven and seventy-five one-hundredths percent (97.75%) of the Total
Invoiced Amount, and (ii) an
amount (the “KGP Invoiced Amount”) equal to two and twenty-five one-hundredths
percent (2.25%) of the Total Invoiced Amount. Purchaser shall pay to DRMS and
to KGP the full amounts of the DRMS Invoiced Amount and the KGP Invoiced
Amount, respectively, on or before the date that is fifteen (15) Days after
each Invoice is submitted to Purchaser.

 

(C)                               Failure
to Make Timely Payments.

With respect to any particular Invoice,
should Purchaser fail to pay to DRMS and to KGP the full amounts of the DRMS
Invoiced Amount and the KGP Invoiced Amount, respectively, on or before the
date that such payments are due, DRMS may, in its sole discretion, (i) apply that portion of the Payment Deposit that is
necessary to pay the Total Invoiced Amount, in which event DRMS shall pay to
KGP the subject KGP Invoiced Amount, and (ii) notify
Purchaser that such failure constitutes a Material Breach that Purchaser may
cure within ten (10) Days of service of notice thereof by paying to DRMS
an amount equal to one-hundred twenty percent (120%) of the subject Total
Invoiced Amount, which payment shall be applied by DRMS to replenish and
increase the amount of the Payment Deposit.

 

(D)                               Payments.

Unless otherwise provided by notice, all
payments to DRMS and to KGP shall be made and delivered pursuant to the
following instructions, which instructions may be changed by written notice to
Purchaser.

 

(1)                                 Instructions
for Payments to DRMS.  DRMS prefers
payment be made via EFT; however, payments may also be made via wire transfer,
guaranteed instrument (certified or cashier’s check) made payable to U.S.
Treasury. EFT and wire transfer should be made to the following account:

 

Mellon Bank

043000261

Account # 9101019

 

Include in the addendum field of the EFT the
following

information:

 

DRMS #99-0001

Type of payment (i.e. Pre-payment, Invoice
payment or other)

 

A separate EFT transaction must be processed
for each type of

payment.

 

DRMS-RP ATTN: Cashier

74 N. Washington Ave.

Battle Creek, MI 49017-3092

 

55

 

(2)                                 Instructions for Payments to
KGP.

By: Wire transfer

[KGP to provide details after award]

 

ARTICLE SIX. QUANTITY DELIVERABLE; DISCREPANCIES AND
ANNUAL

PRICING CORRECTION;
SCRAP

 

Section 1. Sale by Reference Conditions.

Sale by Reference Condition D, Adjustment for Variation in Quantity or
Weight Special Sealed Bid-Term Conditions (Standard Form 114C-2) is
deleted, and Condition No. 12, Adjustment for Variation or Weight
(Standard Form 114-C) is modified to authorize the Government to vary the
quantity or weight delivered as follows.

 

Section 2. Discrepancies.

(A)                               With respect to each discrepancy noted by
Purchaser in terms of any Line Item on the Property Referral List that is
available for removal, but for which there is an underage or overage in the
“Quantity Available [QTY_AVAIL],” or product misidentification as described by
the “Inventory Item Name [INV_ITM_NAME]” or FSC, or mis-specification of the
Acquisition Value (any such underage, overage, misidentification or
mis-specification being a “Discrepancy”), Purchaser shall provide notice to
DRMS thereof with documentation of such Discrepancy within sixty (60) Days of
Delivery of the subject Property and while such Property can be made available
for inspection by DRMS at either a Delivery Point or a storage facility
maintained by Purchaser. Failure to provide notice of an alleged Discrepancy in
accordance with the criteria set forth in this subparagraph shall preclude
inclusion thereof in any reports described in subsequent provisions of this Section 2
or assertion of any claim based thereupon. Within a reasonable period of time
after such notification, DRMS shall review the asserted Discrepancy and notify
Purchaser of acceptance or rejection thereof in whole or in part. Purchaser
shall maintain such documentation as part of Purchaser’s Records.

 

(B)                               Purchaser shall include with the initial
Annual Report, with each Annual Report thereafter, and with the Closing Report,
a compilation of all asserted Discrepancies during the period with respect to
which such report is prepared, grouped by the DRMO or other location of the
Property, which compilation includes a complete description of (i) each
such Discrepancy accepted by DRMS in whole or in part and a calculation of the
effect on the Contractor’s Purchase Price of the corresponding Line Item if its
Acquisition Value were adjusted up or down accordingly (a “Pricing
Correction”), and (ii) each such Discrepancy rejected by DRMS in whole or
in part.

 

56

 

(C)                               If
the sum of the Pricing Corrections for the subject time period (the “Total
Pricing Discrepancy”) exceeds the amount that is three percent (3%) of the
total of the Contractor’s Purchase Prices billed by DRMS to Purchaser with
respect to Property sold to Purchaser during such period (the “Pricing
Discrepancy Benchmark”), the amount of Purchaser’s next payment of an Invoice
shall be increased or decreased by the amount of such Total Pricing Discrepancy
minus the Pricing Discrepancy Benchmark (the “Annual Pricing Correction”).  If there are no more Invoices forthcoming,
the next Distributions shall be adjusted for such Annual Pricing Correction.

 

(D)                               If
the Total Pricing Discrepancy for the subject time period is equal to or less
than the Pricing Discrepancy Benchmark, the Annual Pricing Correction for the
subject time period shall be zero.

 

(E)                                 Purchaser
may seek administrative or judicial relief pursuant to the procedures specified
in Article 20 with respect to any asserted Discrepancy that is rejected in
whole or in part by DRMS, provided, however, that no such action shall be
commenced by Purchaser more than thirty (30) Days after submission to DRMS of
the corresponding compilation of such Discrepancies required to be reported
DRMS pursuant to the provisions of Section 2(B) above of this Article 6.

 

Section 3. Items with Excessive
Acquisition Value.

Any Line Item with a reported Acquisition
Value in excess of ten million dollars ($10,000,000.00) shall be excluded from
this contract at the sole option of Purchaser by notice served within thirty
(30) Days of submission of the corresponding Property Referral List. Any such
item shall not be made available for purchase or removal by Purchaser and
Purchaser shall not be billed therefor.

 

Section 4. Items not Available for
Removal.

(A)                               Purchaser
shall be credited the amount of the Contractor’s Purchase Price for any Line
Item that is listed on a Property Referral List but that is not made available
by DRMS for removal. Purchaser shall notify DRMS within thirty (30) Days of
Delivery of the Property on a particular Property Referral List of Purchaser’s
determination that a Line Item thereon was unavailable for removal. DRMS shall
review the underlying facts within a reasonable time after receipt of such
notification and shall notify Purchaser of the resulting amount, if any, to be
credited to Purchaser.

 

(B)                               The
amount of any credit to which Purchaser is entitled pursuant to the provisions
of this Section 4 shall be deducted from the amount of Purchaser’s next
Invoice. If there are no more Invoices forthcoming, the next Distributions
shall be adjusted for such credit.

 

(C)                               Purchaser
may seek administrative or judicial relief pursuant to the procedures specified
in Article 20 with respect to any credit sought pursuant to the provisions
of this Section 4 that is rejected by DRMS.

 

Section 5. Scrap.

(A)                               Downgrades
Upon Receipt.

(1)                                 Contractor
acknowledges that DRMS reviews items that are designated as “Useable” by the
generator when turned in to DRMS and, in the exercise of its sole discretion
upon receipt of such items, DRMS downgrades certain items for sale as “Scrap”
(each,

 

57

 

a “Downgrade Upon Receipt,” and coded as such
in the DRMS automated inventory control records). Throughout the Performance
Period DRMS shall exercise its sole discretion to determine the policies and
procedures governing Downgrade Upon Receipt decisions, and Purchaser shall not
be entitled to affect such policies, procedures or decisions, provided,
however, that such policies and procedures, and such decisions as implemented
by receiving personnel at any particular DRMS facility, shall designate “Scrap”
and “Useable” items and determine Downgrades Upon Receipt in good faith
pursuant to the usage of such terms in the particular marketplace for a
particular item.

 

(2)                                 By written notice
served upon the SCO, Purchaser may challenge the designation of a particular
item of Property as “Useable” rather than “Scrap.” DRMS may respond to such
challenge in the exercise of its sole discretion, including without limitation
by referring the challenge to the DRMO Chief or to another DRMS official for
determination of a recommendation to the SCO. If DRMS upholds the challenge,
DRMS shall be responsible for removal of the item and DRMS shall issue a credit
to Purchaser in the amount of the item’s Contractor’s Purchase Price on a
succeeding Invoice.

 

(3)                                 During the Performance
Period the “Downgrade Rate” for Property in one or more particular FSCs shall
be defined as the ratio determined for a particular period of time and, with
respect to the Phase-In Period, for the particular Delivery Points at which
Property is referred for sale to Purchaser during the period of actual
referrals, of (i) the total Acquisition
Value of the items of such Property coded for a Downgrade Upon Receipt divided
by (ii) the sum of (x) the total Acquisition Value of all items of Property in
such FSCs referred for sale to Purchaser, plus (y)
the total Acquisition Value of the items of such Property coded for a Downgrade
Upon Receipt.

 

(4)                                 No later than
forty-five (45) Days before each of Purchaser’s Annual Reports is due to be
submitted to DRMS pursuant to the provisions of Section 5(D) of Article 8,
DRMS shall report to Purchaser the Downgrade Rate calculated for the Property
in each of the respective “Downgrade Rate Subcategories” identified in Schedule VI.6.5(A)(4) for
the period to which the forthcoming Annual Report pertains.

 

(5)                                 If the Downgrade Rate
for a particular Downgrade Rate Subcategory for the subject period is less than
the corresponding “Downgrade Norm” specified in Schedule VI.6.5(A)(4),
Purchaser shall be credited on the next succeeding Invoice in the amount of (i) the excess of the Downgrade Norm over the Downgrade
Rate for such Downgrade Rate Subcategory for the subject period, multiplied by (ii) the total Contractor’s Purchase Price of all
Property in such Downgrade Rate Subcategory that was referred for sale to
Purchaser on Property Referral Lists submitted to Purchaser during the subject
period. If there are no more Invoices forthcoming, the next Distributions shall
be adjusted for such credit.

 

(B)                               Upgrades.

(1)                                 Contractor
acknowledges that (i) DRMS
reviews items that are designated as “Scrap” by the generator when turned in to
DRMS and, in the exercise of its sole discretion upon receipt of such items,
DRMS upgrades certain items to “Useable” (each, an “Upgrade Upon Receipt”), and
(ii) from time to time in the
exercise of its sole discretion DRMS reviews items received and accepted as
“Scrap” and upgrades certain such items after receipt to “Useable” (each, a
“Post-Receipt Upgrade”). Throughout the Performance Period DRMS shall exercise
its sole discretion to determine the policies and

 

58

 

procedures governing Upgrade Upon Receipt and
Post-Receipt Upgrade decisions by DRMS receiving personnel, and Purchaser shall
not be entitled to affect such policies or procedures, provided, however, that
such policies and procedures, and such decisions as implemented by receiving
personnel at any particular DRMS facility, shall designate “Scrap” and
“Useable” items and determine Upgrades Upon Receipt and Post-Receipt Upgrades
in good faith pursuant to the usage of such terms in the particular marketplace
for a particular item.

 

(2)                                 Purchaser
may assign personnel from time to time in the exercise of its sole discretion
to assist DRMS receiving personnel with Upgrade Upon Receipt decisions at any
particular DRMO or DRMS Warehouse. With respect to any particular item that
would qualify as “Property” after R/T/D review and that is designated as
“Scrap” by the generator, Purchaser may request an Upgrade Upon Receipt or a Post-Receipt
Upgrade. If DRMS approves the request in the exercise of its sole discretion,
the item shall be submitted for R/T/D review, provided, however, that DRMS
reserves the right to mutilate, destroy or otherwise dispose of any item based
upon safety or health concerns.

 

(3)                                 DRMS
shall record each instance of an Upgrade Upon Receipt pertaining to items that,
after R/T/D review, would qualify as “Property,” in the format most practical
in the circumstances, including without limitation a handwritten listing of the
subject DTID_NOs, photocopies of the subject DTIDs, or by other convenient
means (such records being the “Manual Upgrade Records”), and such Manual
Upgrade Records shall distinguish between Upgrades Upon Receipt and
Post-Receipt Upgrades initiated by DRMS and those required by Purchaser. In
connection with the Delivery of the Property designated on a particular
Property Referral List, DRMS shall provide to Purchaser the Manual Upgrade
Records, if any, pertaining to such Property.

 

(4)                                 All
Property that is subject to an Upgrade Upon Receipt or a Post-Receipt Upgrade
shall be referred for sale to Purchaser following R/T/D review, provided,
however, that Purchaser shall be credited the full amount of the Contractor’s
Purchase Price for any item for which DRMS initiated either an Upgrade Upon
Receipt or a Post-Receipt Upgrade and that Purchaser abandons as provided in Article 3.
The amount of such credit shall be deducted from the amount of Purchaser’s next
Invoice issued following such abandonment If there are no more Invoices
forthcoming, the next Distributions shall be adjusted for such credit.

 

ARTICLE SEVEN. OPERATIONS

 

Section 1. Compliance with Applicable
Law and Regulations.

(A)          Compliance
with Applicable Law.

Contractor, Purchaser and its subcontractors
shall comply with the requirements of all applicable federal, state, and local
laws, regulations, ordinances, directives and instructions connected with the
performance of this contract, including without limitation such requirements
pertaining to income and payroll taxes, environmental matters and occupational
safety.

 

59

 

(B)                               Licenses
and Permits.

Purchaser shall obtain any necessary licenses
and permits, and comply with all federal, state, and local laws and regulations
in connection with the prosecution of the work. This responsibility requirement
will be a matter of inquiry during the SCO’s pre-award evaluation of the bidder’s
capability to perform the contract satisfactorily. It will also be a continuing
matter of inquiry by the SCO during the performance of the contract.

 

(C)                               Responsibility for Keys.

Issuance of “Keys” (as such term is defined
below) will be at the Government’s sole discretion. Contractor shall establish
and implement procedures that will preclude the loss, misplacement, or
unauthorized use of all “Keys” issued to the Contractor or Purchaser by the
Government for access to dedicated warehouse space. The term “Keys” shall be
understood to include not only physical devices for opening or operating a
locked item or space but also other types of individual authenticators such as
key cards and passwords. Contractor will be responsible for any costs incurred
from the loss, misplacement or unauthorized use of Keys. These costs will include
but will not be limited to the costs of changing an individual lock and key,
and may also include an entire system of locks and keys in the Command Security
Office complex.

 

Section 2. Duties of Care and Loyalty.

(A)                               Duty of Care.

Neither Contractor nor Purchaser shall cause
or permit any action or omission in the course of performing the contract that
damages Purchaser and constitutes gross negligence, recklessness or intentional
harm.

 

(B)                               Duty of Loyalty.

Contractor and Purchaser shall carry out their
responsibilities under the contract with honesty, good faith and fairness
toward DRMS.

 

Section 3. Prohibited Activities.

Purchaser shall not undertake the following
activities without written permission from the SCO, which permission may be
granted or withheld by DRMS in the exercise of its sole discretion:

 

(A)                               Enter
into a partnership, joint venture or other arrangement the purpose or effect of
which is to engage indirectly in a transaction that would be prohibited by the
provisions of this contract if undertaken by Purchaser directly; or

 

(B)                               Acquire
any asset not related to DRMS or enter into any transaction not related to
DRMS; or

 

(C)                               Engage
in any Affiliate Transaction, except for the Affiliate Transactions identified
at Schedule VI.7.3(C), which are permissible on the terms and conditions
set forth in such Schedule; or

 

(D)                               Enter
into any transaction (i) other
than on an arms-length basis or (ii) with
pricing or other terms less favorable to Purchaser than otherwise reasonably
obtainable; or

 

(E)                                 Give
any representations or warranties to a re-sale buyer concerning the condition
or quality of an item of Property or re-sell any Property without a written
affirmative disclaimer of any implied warranties of merchantability or fitness
for a particular purpose, provided, however, that Purchaser may offer such
representation or warranty as to a particular

 

60

 

 

item or type of Property if Purchaser notifies the SCO of its intent to
do so and the SCO does not object thereto within thirty (30) Days of such
notice, which objection or lack of objection shall be determined by DRMS in the
exercise of its sole discretion; or

 

(F)                                 Enter
into any transaction with respect to any item of Property under terms that
could obligate Purchaser to reacquire such Property after the Performance
Period; or

 

(G)                               Initiate,
renew or extend any rental or lease of Property for a term that begins or ends
on a date beyond the Performance Period; or

 

(H)                               Enter
into contracts or other arrangements that would assign all or substantially all
responsibility for and control of performance of the contract to another party
or parties, without the prior written approval of DRMS which will consider such
request in accordance with the Assignment of Claims Act of 1940, as amended, 41
U.S.C. sec. 15, and the Government’s best interests. In the event of any
improper assignment without the written approval of DRMS, this contract shall
be voidable at the option of the Government in the exercise of its sole
discretion; or

 

(I)                                    File
a voluntary petition seeking liquidation, reorganization, arrangement or
readjustment, in any form, of its debts under Title 11 of the United States
Code (or corresponding provisions of future law) or any other federal or state
insolvency law; file an answer consenting to or acquiescing in any such
petition; make any assignment for the benefit of Purchaser’s creditors; or
admit in writing Purchaser’s inability to pay its debts as they mature, without
the prior written consent of DRMS.

 

Section 4. Classified and Other Material.

Any classified material, demilitarization
required or hazardous property found while in the possession of Contractor,
Purchaser or any subcontractor(s) in or among the Property must be immediately
returned to government control as directed by the SCO at government expense.
Purchaser shall be credited for such expense and for the Contractor’s Purchase
Price of any such item on an Invoice submitted by the Government in the
ordinary course of administering this contract within a reasonable time after
the return of such Property. If there are no more Invoices forthcoming, the
next Distributions shall be adjusted for such credit.

 

Section 5. Munitions List Items and
Commerce Control List Items.

(A)                               Acknowledgment of Export Restrictions.

Contractor and Purchaser acknowledge that
many of the items in the Product Pool are subject to trade security controls
(i.e., export restrictions), including both (i) Commerce
Control List Items (“CCLI”) that are designated by the Department of Commerce
pursuant to the provisions of the Export Administration Act of 1979, Executive
Order 12924 and regulations promulgated thereunder and that have a DEMIL Code
of “Q,” and (ii) Munitions List Items
(“MLI”) that are designated by the Department of State pursuant to the
provisions of the Arms Export Control Act and implementing regulations and that
have a DEMIL Code of “B.”

 

(B)                               Purchaser’s
TSC Clearance and End Use Certificate.

Prior to award of this sale contract, (i) Purchaser shall obtain clearance from the DLA Trade
Security Controls enforcement office as a buyer of DEMIL “B” and/or “Q” items,
and (ii) Purchaser shall
submit to the SCO a properly completed End-Use Certificate (or “EUC,” in the
form of either DRMS Form 2 or DLA Form 1822, copies of which forms
are attached as Attachment VI.5.B) that is approved in writing by the SCO. Such
clearance and EUC shall be

 

 

61

 

deemed effective for five (5) years unless there are material
changes in the information on the EUC.

 

(C)                               Re-Sale
Procedures.

For all MLI and CCLI (i.e., DEMIL “B” and “Q”
Property), the Purchaser shall promulgate in all re-sale advertisements and
catalogs, as well as in the terms and conditions of sale, a notice to
prospective buyers that the terms may require export permits. The wording of
such notice shall be approved in advance by DRMS in the exercise of its sole
discretion. Before releasing a particular item of DEMIL “B” or “Q” Property to
a prospective re-sale buyer, (i) Purchaser
shall obtain a completed EUC from such buyer for each lot (or group of lots at
a single re-sale event) of such Property and furnish a copy thereof to DRMS,
and (ii) Purchaser shall confirm with
DRMS through the SCO that such buyer is cleared for the purchase of DEMIL “B”
and “Q” items.

 

(E)                                 Compliance
With EUC Requirements.

Subject to such additional or different
requirements pertaining to DEMIL “B” and “Q” Property that DRMS may prescribe
in its sole discretion, Purchaser shall comply with all of the provisions set
forth on the particular form of the EUC that Purchaser submits to DRMS through
the SCO. If Purchaser submits a DRMS Form 2, and if so indicated on a
particular Property Referral List with respect to a particular item or items of
DEMIL “B” or “Q” Property, (i) Purchaser
shall notify DRMS through the SCO of the proposed re-sale of such item, (ii) Purchaser shall update Purchaser’s EUC to identify
the proposed re-sale buyer, and (iii) Purchaser
shall obtain written approval from the SCO before releasing such item to the
proposed re-sale buyer.

 

(F)                                 Seagoing
Containers.

Whenever a seagoing container is used by a
re-sale buyer to remove Property, Purchaser shall report to DRMS the container
number and, if known, the destination port.

 

(G)                               Compliance
With New Trade Security Control Requirements

Purchaser shall comply with all trade
security control procedures, requirements and restrictions that DRMS prescribes
in its sole discretion. All costs of such compliance shall be deemed Direct
Costs.

 

Section 6. Employee Compensation

(A)                               Base
Compensation.

Compensation of Purchaser’s employees
(including fringe benefits) that is determined on a salaried or hourly basis,
and paid in an amount determined without regard for the performance of the
employee, or the profitability or other performance of Purchaser or of
Contractor (“Base Compensation”), shall be deemed a Direct Cost, provided,
however, that no employee’s Base Compensation shall be plainly excessive in
comparison to the compensation of Contractor’s employees when evaluated with
regard for Purchaser’s circumstances and such employee’s qualifications and
responsibilities.

 

(B)                               Bonuses.

Compensation of Purchaser’s employees other
than Base Compensation, including without limitation, the total amount of any
bonuses paid within any calendar year to a particular employee in excess of
one-third (33 1/3%) of such employee’s total compensation for such year, is a
Contractor Indirect Cost and shall be borne solely by Contractor.

 

62

 

Section 7. Employee Expenses and Purchaser’s
Supplies, Furniture and Equipment.

(A)                               Employee Expenses.

If any employee or former employee of
Purchaser is hired by an Affiliated Party during the term of such employee’s
employment with Purchaser or within twelve (12) months following the
termination of such employment, Contractor will pay to Purchaser a reasonable
pro rata share of such employee’s training costs, relocation expenses, and
employment agency fees to the extent paid, reimbursed, or otherwise incurred by
Purchaser in connection with such employee, provided, however,
that no such reimbursement will be required if such employee had been employed
by Purchaser continuously for eighteen (18) months or longer after the date of
award.

 

(B)                               Supplies, Furniture and
Equipment.

Purchaser shall not purchase supplies,
furniture or equipment except to the extent that such supplies, furniture or
equipment will be used solely by Purchaser, and upon the sale of such furniture
or equipment, the proceeds shall be the property of Purchaser. Purchaser shall
not sell such supplies, furniture or equipment to an Affiliated Party. During
the Wind-Up Purchaser shall sell any remaining supplies, furniture or equipment
to a third party or parties.

 

Sections 8. RCP Batch Lots.

Purchaser may in the exercise of its sole
discretion combine Line Items of RCP Property with Acquisition Values less than
One-Thousand Dollars ($1,000.00) each into “Batch Lots” for processing and
re-sale. Purchaser shall assign a unique identifying number to each Batch Lot
(the “Batch Lot Number”) and shall maintain within the Records the total
Acquisition Value associated with each Batch Lot Number in addition to the
other item-specific re-sale information required by the provisions of this IFB,
provided, however, that Purchaser shall not be required to record the
particular DTID Numbers associated with each Batch Lot Number.

 

Section 9. Vehicles Requiring Partial Mutilation.

DLA requires that certain vehicles identified
as Gamma Goats, GOER Vehicles, HMMWVs, R-9 Refuelers, Crash Fire Rescue Trucks
and M151 Vehicles be partially mutilated before removal. These items
accordingly are not identified by DRMS as “Useable,” and Purchaser is not
obligated to purchase such items. In certain respects as specified in
applicable regulations, however, parts from such vehicles may permissibly be
removed from the vehicle prior to mutilation and re-sold. DRMS may from time to
time in the exercise of its sole discretion notify Purchaser in writing of the
availability of certain such vehicles. Within ten (10) Business Days of
such notice, Purchaser may in the exercise of its sole discretion notify DRMS
that Purchaser elects to purchase such items at a price determined from
Purchaser’s Bid Percentage for CV-2 Bid Category “E,” DEMIL B/Q items.
Purchaser and DRMS shall cooperate as necessary in the circumstances to effect
Delivery of such items, and Purchaser shall remove the subject parts reasonably
promptly after Delivery. Purchaser shall transport the material comprising the
remainder of each such item to the appropriate facility for mutilation at the
DRMO if available, and the cost of transport shall be a Direct Cost. If there
is no such facility at the subject DRMO, DRMS shall remove such material at government
expense.

 

Section 10. Airworthiness Certification.

Purchaser is responsible to make arrangements
with the Federal Aviation Administration (“FAA”) for all inspections needed to
obtain airworthiness certification. The FAA provides

 

63

 

guidance and instructions to establish eligibility for civilian
airworthiness certification for surplus military aircraft and aircraft
assembled from spare and surplus parts. Before an Airworthiness Certificate is
issued, the assembled aircraft must be in conformity with the data forming the
basis for that FAA type-certificate. The responsibility to satisfy FAA
requirements lies entirely with Purchaser and subsequent re-sale buyers.

 

Section 11. Commerce Control List Items (CCLI).

Purchaser warrants and covenants that none of
the CCLI items identified in this Invitation for Bids and listed on its sale
contract will be directly or indirectly used or disposed of for military use or
exported unless a full disclosure of the origin of the property is made by
Purchaser. The disclosure must reference this Invitation for Bids and sale
contract number, and be submitted to:

 

Office of Export Administration

P.O. Box 273

Washington, DC 20044

 

Purchaser understands and agrees that the Office of Export
Administration may require Purchaser to mutilate the Property to the extent
necessary to preclude its use for its originally intended purpose, and/or
require Purchaser to have or obtain an export license before the Property may
be exported outside of the United States, Puerto Rico, American Samoa, Guam the
Trust Territory of the Pacific Islands or the Virgin Islands.

 

Section 12. Munitions And Commerce Control List
Item (MLI/CCLI) Compliance.

a.                                       The
use, disposition, export and reexport of MLI/CCLI property is subject to all
applicable United States laws and regulations, including the Export
Administration Control Act of 1979 (50 U.S.C. Appx. 2401, et seq.); Arms Export
Control Act (22 U.S.C. 2651, et seq.); International Traffic in Arms Regulation
(22 C.F.R. 121); and Export Administration Regulation (15 C.F.R. 368, et seq.),
which in part prohibit:

 

(1)                                  Making
false statements and concealment of any material information regarding the use,
disposition, export or reexport of the property;

 

(2)                                  Any
use, disposition, export or reexport of the property not authorized in
accordance with the provisions of this contract.

 

b.                                      Any
false information provided and/or concealment of any material information
regarding the use, disposition, or export of this property may constitute a
violation of:

 

(1)                                  The
provisions of 18 U.S.C. 1001, which provides a maximum penalty of five years
imprisonment and/or a maximum fine of $10,000;

 

(2)                                  The
provisions of 22 U.S.C, 22778, which provides a maximum penalty of ten years
imprisonment and/or a maximum fine of $1,000,000; or,

 

(3)                                  The
provisions of 50 U.S.C. Appx. 2410, which provides a maximum penalty of ten
years imprisonment and/or a maximum fine of five times the value of the
property exported or $1,000,000, whichever is greater, and which also provides
for administrative sanctions, including civil penalties of up to $10,000, and
the revocation of authority to export goods from the United States.

 

64

 

Section 13. Y2K Calendar Sensitive (Year
2000) Equipment.

Purchaser is cautioned that Property offered
on this sale may be affected by the Year 2000 (Y2K) technology problem, also
known as the millennium bug. The Government makes no warranty, either express
or implied, that any of the items offered on this sale will not be adversely
affected by the Y2K problem. The condition of items, as expressed in item
descriptive detail, is based purely on visual inspection which is not adequate
to determine Year 2000 compatibility. The Government assumes no liability for
damages to property of Purchaser, its employees or to any other person arising
from or affiliated with the purchase, use or disposition of this material.
Purchaser shall hold the Government harmless from any and all such demands,
suits, actions, or claims arising from or otherwise relating to the purchase
and use of this material

 

Section 14. Flight Safety and Critical
Aircraft Parts (FSCAP).

(A)                               The
military services are responsible to ensure all available historical
records/documentation are included when repairable Flight Safety Critical
Aircraft Parts (“FSCAP”) are turned in to DRMOs, Unused FSCAP, in original,
undamaged packaging must be marked with NSN, Contract Number, CAGE Code(s) and
part number. FSCAP items lacking appropriate records/documentation, or which
are condemned, shall be mutilated by DRMS. Any FSCAP item that lacks any
requited packaging, records or documentation is not included within this sale
and must be immediately returned to government control as directed by the SCO
at government expense. Purchaser shall be credited for such expense and for the
Contractor’s Purchase Price of any such item on an Invoice submitted by the
Government in the ordinary course of administering this contract within a
reasonable time after the return of such Property. If there are no more
Invoices forthcoming, the next Distributions shall be adjusted for such credit.

 

(B)                                 When
an FSCAP item is transferred to DRMS, block 27 of the DTID will cite the
appropriate Criticality Code. The “Remarks” section of the DTID shall
contain the letters “FSCAP.”

 

(C)                                 Serviceable
or repairable FSCAP may undergo R/T/D, subject to DEMIL requirements, provided
the historical records and documentation are furnished. Purchaser must notify
the re-sale buyer that the parts:

 

(1)                                  Cannot
be used on commercial aircraft in absence of specific FAA approval (usually
granted by an FAA Repair Shop), and

 

(2)                                  Cannot
be sold back to the DoD or to foreign governments/military without the
appropriate records/documentation.

 

(D)                                 DRMS
makes no representation as to a part’s conformance with FAA requirements. As a
condition of transfer, donation, or sale of a FSCAP, and prior to installing
the parts, the receiving persons or organizations must subject the parts to
inspection, repair, and/or overhaul by a competent manufacturer or other entity
certified by the FAA to perform such inspection and repair. The aircraft parts may
not meet FAA design standards, and/or may have been operated outside the
limitations required under the Federal Aviation Regulations. Inspections and
FAA approvals will be needed to determine an aircraft part condition for safe
operation, or a parts eligibility for installation on a civil aircraft. Failure
to comply with FAA requirements can result in unacceptable safety risks and
also subject Purchaser or subsequent re-sale buyers to enforcement actions.

 

65

 

ARTICLE EIGHT. PURCHASER’S RECORDS;
INSPECTION AND AUDIT BY

GOVERNMENT AND INDEPENDENT AUDITOR; ACCOUNTING PRINCIPLES AND

REQUIRED REPORTS TO GOVERNMENT

 

Section 1. Contractor Records Retention.

Contractor shall make available Purchaser’s
books, records, documents, and other supporting evidence, including without
limitation all items required by the provisions of Article 9 (the
“Records”), to satisfy contract administration and audit requirements of the
Department of Defense and the Comptroller General for six (6) years after
the Wind-Up is concluded, or for such period of time as Contractor, for its own
purposes, retains its books, records, documents, and other supporting evidence,
whichever is longer.

 

Section 2. Inspection of Records and
Workplace by Government.

To ensure that the Government has a means to
verify accuracy of the Records and inventory, the Government has the right to
audit the Records and inventory the Property and to review Purchaser’s
operations with reasonable advance notice. The audit may consist of a complete
or random sample examination. Purchaser must ensure that, prior to re-sale, the
Property is readily identifiable as formerly Government property. Inspections
may be conducted by DLA Trade Security Control personnel with no notice.

 

Section 3. Records Maintenance.

Contractor shall maintain the Records
accurately and in a manner that will allow clear and accurate auditing. The
Records pertaining to inventory shall contain, at a minimum, the National Stock
Number or Local Stock Number, Disposal Turn-In Document Number (or Requisition
Number for RCP Property), quantity, date removed from the Delivery Point, date
sold, sale price, date Purchaser received payment from the re-sale buyer, name
and address of re-sale buyer, and storage location prior to re-sale. A separate
inventory list must be maintained for each of Purchaser’s storage facilities.
The Government reserves the right to request and inspect these documents as it
deems necessary with reasonable notice. In the event that Purchaser fails to
maintain or provide any of these documents to the Government, the Government
may in its sole discretion cause Termination.

 

Section 4. Contracts with Third Parties.

Purchaser shall ensure that all contracts
entered into by Purchaser shall expire or shall be terminable by Purchaser
within the Performance Period. If Purchaser reasonably anticipates that the
annualized cost of payments by Purchaser to a particular third party will
exceed one hundred thousand dollars ($100,000.00), Purchaser shall enter into a
written contract with such third party that includes a provision requiring
that, during the life of such contract and for a period of three (3) years
following final payment under such contract, DRMS or its designated
representative shall have access to, and the right to examine and copy, any
directly pertinent books, documents, papers, records or other recorded
information, and to examine any directly pertinent property within such third
party’s possession or control, involving transactions related to the contract.

 

66

 

Section 5. Purchaser’s Books of Account;
Financial Reports.

Purchaser shall maintain true and correct
books and records of account. The books and records of account shall be maintained
on an accrual basis in accordance with Generally Accepted Accounting Principles
(“GAAP”), and reports by Purchaser to DRMS and KGP (“Purchaser’s Reports”)
shall consist of the following:

 

(A)                               Transition
Report.

Within one hundred eighty (180) Days of the
date of award, or on such date thereafter as DRMS specifies in the exercise of
its sole discretion, Purchaser shall provide to DRMS in machine readable, comma
delimited ASCII file format or, as appropriate, word processing (*.doc) file
format, delivered on a removable magnetic or optical storage medium, such as a
CD-ROM, a report (the “Transition Report”) that specifies Purchaser’s operating
plan for performing the contract through the balance of the Performance Period,
The Transition Report shall address the following topics:

 

(1)                                 Storage
facilities in place and projected.

(2)                                 Shipping arrangements in place and projected.

(3)                                 Logistical or
administrative difficulties encountered to date, and proposed or effected
resolution thereof.

(4)                                   Marketing opportunities
and problems encountered to date, proposed resolution of the problems, and
plans for adding value to the Property.

(5)                                   Any other
logistical, administrative, marketing or other issues that Purchaser determines
should be brought to the attention of DRMS.

 

(B)                               Monthly
Report.

By the fifteenth (15th) Day of each calendar
month, Purchaser shall provide to DRMS in machine readable, comma delimited
ASCII file format or, as appropriate, word processing (*.doc) file format,
delivered on a removable magnetic or optical storage medium, such as a CD-ROM,
both financial statements (including a statement of cash flows) prepared
according to GAAP and the following information (collectively, the “Monthly
Report”) with respect to the preceding calendar month, provided, however, that
the initial Monthly Report shall pertain to the period from the date of award
through the last Day of the calendar month that includes the date of award:

 

(1)                                   An “Inventory Status
Report” that includes the following for each item of Property:

 

a.                                       Cumulative costs
of capital improvements made to each item of Property or attributed by
proration only when necessary that (i) was
removed from inventory by sale or otherwise during the month or (ii) remains in inventory at the close of the month

 

b.                                       Amounts and
date(s) of all revenues received (or attributed by proration only when
necessary) with respect to each item of Property sold during the month and
identification of the re-sale buyer of each such item

 

c.                                       Inventory on
hand at the close of the month

 

(2)                                   Seller Indirect
Costs

(3)                                   ECLR statement

(4)                                   Income statement

(5)                                   Detail and summary
of:

 

67

 

a.                                       Distributions

b.                                       Working Capital
Advances and repayments thereof, and the Working Capital Advance Balance

c.                                       Purchase
Advances and Purchase Transfers

 

(6)                                   Status report of
progress in correcting any deficiencies identified by a DRMS inspection,
regulatory inspection, audit or Compliance Review or Further Review, which must
include Purchaser’s plan to comply with discrepancies noted or questions asked
in writing by the SCO or Independent Auditor.

 

(C)                               Quarterly Report.

Purchaser shall provide to DRMS and to KGP
the following quarterly financial information (the “Quarterly Report”), in
machine readable, comma delimited ASCII file format or, as appropriate, word
processing (*.doc) file format, delivered on a removable magnetic or optical
storage medium, such as a CD-ROM, and prepared in accordance with GAAP, within
forty-five (45) Days of the close of each calendar quarter with respect to such
calendar quarter, provided, however, that the initial Quarterly Report shall
pertain to the period from the date of award through the last Day of the
calendar quarter that includes the date of award:

 

(1)                                 Income
statement

(2)                                 Balance
sheet

(3)                                 Statement
of cashflows

(4)                                 Notes to financial statements

(5)                                 Inventory
status and disposition report

(6)                                 Detail and summary of:

a.                                       Distributions

b.                                       Working Capital
Advances and repayments thereof, and the Working Capital Advance Balance

c.                                       Purchase
Advances and Purchase Transfers

 

(7)                                   ECLR
statement

 

(D)                               Annual
Report.

Purchaser shall provide to DRMS and to KGP
the following annual financial information (the “Annual Report”), in machine
readable, comma delimited ASCII file format or, as appropriate, word processing
(*.doc) file format, delivered on a removable magnetic or optical storage
medium, such as a CD-ROM, prepared in accordance with GAAP and audited by an
independent national accounting firm (the “Independent Auditor”) pursuant to
American Institute of Certified Public Accountants (“AICPA”) standards, within
one hundred twenty (120) Days of the close of each twelve (12) calendar month
period with respect to such period, provided, however, that the initial Annual
Report shall pertain to the period from the date of award through 30 September 1998:

 

(1)                                 Income
statement

(2)                                 Balance
sheet

(3)                                 Statement
of cashflows

(4)                                 Notes
to financial statements

(5)                                 Inventory
status and disposition report

(6)                                 Detail
and summary of;

a.                                       Distributions

 

68

 

b.                                       Working Capital Advances and repayments thereof, and
the Working Capital Advance Balance

c.                                       Purchase
Advances and Purchase Transfers

 

(7)                                 ECLR statement

(8)                                 The Independent
Auditor’s (i) Management Letter and (ii) list of Audit Adjustments whether posted to the
Records or not

(9)                                 As soon as available,
but no later than the last day permitted by law, Federal tax returns and all
supporting schedules

 

(E)                                 Closing
Report.

(1)                                 Purchaser shall
provide to DRMS and to KGP the following financial information (the “Closing
Report”) pursuant to the provisions of Section 4 of Article 21, in
machine readable, comma delimited ASCII file format or, as appropriate, word
processing (*.doc) file format, delivered on a removable magnetic or optical
storage medium, such as a CD-ROM, prepared in accordance with GAAP and audited
by the Independent Auditor pursuant to AICPA standards, with respect to the
period since the then most recently filed Annual Report:

 

a.                                       Income statement

b.                                       Balance sheet

c.                                       Statement of
cashflows

d.                                       Notes to
financial statements

e.                                       Inventory status
and disposition report

f.                                         Detail and
summary of:

(i)                                    Distributions

(ii)                                Working
Capital Advances and repayments thereof, and the Working Capital Advance
Balance

(iii)                            Purchase
Advances and Purchase Transfers

g.                                      ECLR statement

h.                                      The Independent
Auditor’s (i) Management Letter and (ii) list of Audit Adjustments whether posted to the
Records or not

i.                                         As soon as
available, but no later than the last day permitted by law, closing Federal tax
returns and all supporting schedules

 

(2)                                 Within sixty (60) Days
of submission of the Closing Report or, as the case may be, within sixty (60)
Days of the re-submission of a Closing Report initially disapproved by DRMS, DRMS
shall either serve notice of its disapproval of the Closing Report and state
the reasons therefor, or serve notice of its approval. The Closing Report shall
not be deemed final until approved by DRMS, which approval shall not be
unreasonably withheld.

 

(F)                                 Reporting
Schedule.

Purchaser shall submit Monthly, Quarterly and
Annual Reports in accordance with the provisions of this Section 5 to DRMS
and to KGP with respect to each calendar month, each calendar quarter and each
twelve (12) month period ending 30 September, respectively, from the date of
award until DRMS approval of the Closing Report.

 

69

 

ARTICLE NINE. DIRECT COSTS

 

Section 1. Definitions.

(A)                               Direct Costs.

Except as otherwise provided herein, “Direct
Costs” are all costs other than (i) amounts
paid to DRMS and KGP for the purchase of Property, (ii) Seller
Indirect Costs and (iii) compensation
and transportation expenses of Purchaser’s Chief Executive Officer, that are
actually incurred by Purchaser for the sole purpose of performing this
contract, including without limitation costs incurred for the management,
storage, marketing, preservation, improvement, transportation and disposition
of the Property (including all costs commonly termed “overhead costs”) and
either (x) paid to any Person that is not an
Affiliated Party or (y) paid to an
Affiliated Party and constituting one of the “Permitted Affiliate Transactions”
identified at Schedule VI.7.3(C).

 

(B)                               Seller Indirect Costs.

“Seller Indirect Costs” are (i) subject to the provisions and limitations of Section 4(F) of
Article 3, all costs that are actually incurred by Purchaser for the
packing, loading and transport of Property referred for sale to Purchaser at a
Restricted Access Facility, Special Situation Location or DLA Depot and either (x) paid to any Person that is not an Affiliated Party or (y) paid to an Affiliated Party and constituting one of the
“Permitted Affiliate Transactions” identified at Schedule VI.7.3(C), or (ii) the actual and minimum reasonable costs incurred
by Purchaser to comply with

 

(C)                               Contractor Indirect Costs.

“Contractor Indirect Costs” are all costs
that are neither Direct Costs nor Seller Indirect Costs, and there shall be no
amounts paid or payable by Purchaser therefor.

 

Section 2. Documentation and Payment of Direct
Costs and Seller Indirect Costs.

(A)                               Disbursements.

Purchaser shall make all disbursements from
the Operating Account or a Transfer Account. Disbursements for Direct Costs and
Seller Indirect Costs shall be made pursuant to the provisions of Article 13;
disbursements for Distributions and other adjustments shall be made pursuant to
the provisions of Article 16; disbursements for repayment of Working
Capital Advances shall be made pursuant to the provisions of Article 13;
and Purchase Transfers shall be made pursuant to the provisions of Article 14.

 

(B)                               Supporting Documentation.

Subject to subsection (C) of this Article 9,
each disbursement for a Direct Cost and a Seller Indirect Cost shall be
supported in the Records by bona fide documentation (including, if appropriate,
records in an electronic or magnetic medium) that adequately demonstrates that
each such disbursement is in the proper amount for goods or services actually
provided in advance of such disbursement if the disbursement is to an
Affiliated Party or, if the disbursement is to a third party that is not an
Affiliated Party, for goods or services actually provided or to be provided, or
costs actually incurred or to be incurred. Purchaser shall place such
documentation in the Records in advance of, or contemporaneously with, each
such disbursement.

 

(C)                               Documentation Requirements.

Except in the case of a disbursement in the
amount of Fifty Dollars ($50) or less, the supporting documentation required
under this Article 9 shall include, at a minimum, a written invoice or
comparable document from the provider that (i) identifies
the payee and itemizes each

 

70

 

particular invoiced product or service and the provider thereof, if
different from the payee; and (ii) states
the pricing and relevant terms as to each such product or service. Although the
foregoing bona fide documentation shall as a matter of general principle be
required for all disbursements, where the amount at issue is less than One
Thousand Dollars ($1,000) and where the documentation is missing or was
inadvertently omitted, Purchaser may, in lieu of such documentation, provide a
certificate in the Records executed by a Key Person that: (x)
identifies the payee and itemizes each particular invoiced product or service
and the provider thereof, if different form the payee, and (y)
states the pricing and relevant terms as to each such product or service.

 

(D)                               Payment.

Upon placing the documentation and/or
certificate required by this Article 9 in the Records, Purchaser shall pay
the proper amount of each Direct Cost and Seller Indirect Cost

 

(E)                                 Written Certification to
DRMS.

Within fifteen (15) Days after the end of
each calendar month that is in whole or in part within the Performance Period
or the Wind-Up, Purchaser shall provide written certification to DRMS, in the
form specified at Attachment VI.9.2(E) and executed by a Key Person, that
all disbursements have complied with the provisions of this contract.

 

(F)                                 Contractor Indirect Costs.

Contractor shall pay from its own funds
before imposition of fine or penalty amounts due and payable for Contractor
Indirect Costs. Contractor shall have no right of reimbursement for, and shall
not use the Operating Account or any Transfer Account for, the payment of costs
within the scope of this Section 2(F).

 

ARTICLE TEN. CONFLICTS OF INTEREST

 

Section 1. Restriction on Participation.

Once Property under this contract is re-sold
by Purchaser, neither Purchaser nor an Affiliated Party shall purchase such
items for a period of one year after the completion of the Wind-Up. All
re-sales of Property shall be bona fide, arms-length transactions intended to
provide both the Government and Purchaser maximum Net Proceeds. Purchaser may
not re-sell Property directly or indirectly to an Affiliated Party. Purchaser
shall not sell, consign, let, rent, lend or donate Property on terms that
directly or indirectly provide any benefit to an Affiliated Party.

 

Section 2. Benefits to Contractor and Affiliated
Parties.

Contractor shall assure that neither
Contractor nor any Affiliated Party obtains goods, assets, tangible or
intangible property or services from third-party vendors to Purchaser at prices
or on terms more favorable than those that would otherwise be available to
Contractor or the Affiliated Party absent the relationship between Purchaser
and such third-party vendors. The foregoing requirement shall not apply to
benefits from volume purchasing of goods, assets, tangible or intangible
property or services by Contractor, Affiliated Parties and Purchaser where such
volume purchasing does not benefit one purchasing party over another.

 

71

 

ARTICLE ELEVEN. FIDELITY BOND REQUIREMENTS;
INSURANCE

 

Section 1. Modification of Special
Circumstance Conditions.

Sale by Reference (Attachment VI) Part 5:
Additional Special Circumstance Conditions (DRMS Form 86, Oct 93), Article D,
Liability and Insurance, paragraphs (a)(2) and (a)(3,) are modified as
follows:

 

(2)                                  Bodily
Injury Insurance in an amount of not less than two hundred fifty thousand
dollars ($250,000.00) any one individual and one million dollars ($1,000,000)
any one accident or occurrence.

 

(3)                                  Property
Damage Liability Insurance in the amount of two hundred fifty thousand dollars
($250,000.00) (which shall include any and all property whether or not in the
care, custody or control of Purchaser). The annual coverage shall be not less
than one million dollars ($1,000,000).

 

Section 2. Further Modifications.

Sale by Reference Part 5, Article D,
paragraph (a) is also amended as follows:

 

72

 

(4)                                  “All-Risk”
coverage for fire and other property perils for all property owned by Purchaser
with aggregate coverage of five million dollars ($5,000,000.00).

 

(5)                                  Umbrella
liability coverage up to two million dollars ($2,000,000.00).

 

(6)                                  Fidelity
Blanket Bond. Purchaser shall obtain, and maintain at all times until the
completion of the Wind-Up, fidelity or blanket bond coverage in the amount of
at least five million dollars ($5,000,000.00) (the “Fidelity Bond”). Purchaser
shall obtain and maintain such coverage with a responsible surety company with
respect to all of Purchaser’s employees, officers and directors to protect
Purchaser against losses, including, without limitation, those arising from
theft, embezzlement, fraud, or misplacement of funds, money, or documents. The
issuer, policy terms and forms and amounts of coverage, including applicable
deductibles, shall be satisfactory to DRMS, and the policy shall include a
provision that the issuer shall notify DRMS in writing within five (5) Business
Days of the cancellation or termination of any such coverage or of any
modification of such coverage. Purchaser shall notify DRMS in writing within
five (5) Business Days after filing a claim under such coverage.

 

(7)                                  Other
Insurance. Purchaser shall obtain, and maintain at all times until the
completion of the Wind-Up, such comprehensive general liability, automobile
liability, umbrella liability, worker’s compensation and other insurance
coverage as may be required by law. At its option, Purchaser may obtain and
maintain such additional insurance, including directors and officers coverage
and errors and omissions coverage, as Purchaser deems appropriate.

 

(8)                                  Costs
of Required and Other Coverage. Purchaser shall pay from the Operating Account
pursuant to the provisions of Article 13 all premiums and deductibles
incurred for all insurance coverage (which shall be deemed to be Direct Costs)
except directors and officers coverage and errors and omissions coverage, and
such disbursements shall be treated as Direct Costs. Premiums and deductibles
for directors and officers coverage and errors and omissions coverage shall be
considered an Indirect Cost and such insurance shall be obtained and maintained
at Contractor’s sole cost and expense.

 

(9)                                  Evidence
of Insurance, Within thirty (30) Days of the date of award, and annually
thereafter, Purchaser shall provide to DRMS copies of policies, certificates of
insurance or other proof evidencing the coverages required.

 

(10)                            Purchaser
must obtain the minimum coverages specified herein unless DRMS approves a
variance from such minimum coverages, In the event that a specified coverage or
limit is or in the future becomes commercially impractical, such approval shall
not be unreasonably withheld.

 

ARTICLE TWELVE. SOFTWARE AND SYSTEMS

 

Section 1. Identification of Systems and
Software Developed with Contractor Funds.

(A)                               All accounting or
reporting systems (other than hardware and other equipment) or software (and
all related User Documentation relating to such systems and software) owned by
Contractor, or otherwise obtained or developed by Contractor solely at
Contractor’s expense, excluding Third-Party Software, that Contractor or
Purchaser uses in the performance of this Contract (collectively, “Contractor
Systems and Software”) shall be the sole property of Contractor until
completion of the Wind-Up and thereafter. Schedule VI.12.1(A)

 

73

 

identifies all Contractor Systems and Software that Contractor
anticipates being used in the performance of this contract. From the date of
award until completion of the Wind-Up, Contractor or Purchaser shall update Schedule VI.12.1(A) to
the extent necessary to reflect the use of Contractor Systems and Software
accurately and shall quarterly inform DRMS in writing of any changes to Schedule VI.12.1(A).

 

(B)                               Contractor may use,
license, sublicense, assign, transfer or otherwise market Contractor Systems
and Software to any other Person (including without limitation to any
Affiliated Party) without DRMS’s consent. Such use or marketing of Contractor
Systems and Software shall be made upon such terms and conditions as Contractor
may determine in its sole discretion and without compensation to Purchaser or
to DRMS, provided, however, that such terms and conditions shall
not prejudice DRMS’s rights to use Contractor Systems and Software as set forth
in Section 2 below.

 

Section 2, License in Contractor Systems and
Software.

(A)                               DRMS
shall have a non-exclusive, irrevocable and unconditional license, until the
completion of the Wind-Up and for a period of three (3) years thereafter,
and without additional cost to DRMS (except as otherwise provided herein), and
a right to have delivered to it for DRMS and its designated representatives to
use, solely on DRMS’s own behalf in managing any “Remaining Assets” (as such
term is defined in Article 21 below) and in reviewing Contractor’s and
Purchaser’s performance of their obligations under this contract, any and all
Contractor Systems and Software used in the performance of Contractor’s and
Purchaser’s services under this contract; provided, however, that
such delivery shall be only in the format and structure that is used by
Contractor and/or Purchaser in performing their services under this contract.

 

(B)                               Contractor
makes no representations, warranties or indemnities with respect to such
Contractor Systems and Software, provided, however, that
Contractor will use its best efforts to assure that Purchaser’s computer data
retention and transfer procedures maintain the integrity, reliability and
security of the original data. Contractor shall be responsible for training or
for conversion or installation of such Contractor Systems and Software to
Purchaser’s systems or equipment, and shall cause such training, conversion or
installation to be performed from time to time as may be reasonably necessary
for the effective and efficient operation of Purchaser’s business. To the
extent that such services are performed by an Affiliated Party, the costs
thereof shall be Indirect Costs and borne solely by Contractor. Contractor
shall not be responsible for training or for conversion or installation of such
Contractor Systems and Software to DRMS’s systems or equipment or for any costs
or expenses thereof.

 

(C)                               Contractor
shall not be responsible for maintaining or enhancing Contractor Systems and
Software, either before or after completion of the Wind-Up, but Contractor
shall cause such maintenance of Contractor Systems and Software to be performed
as may be necessary for the effective and efficient operation of Purchaser’s
business. To the extent that such maintenance is performed by an Affiliated
Party, the costs thereof shall be Indirect Costs borne solely by Contractor. To
the extent that Contractor causes enhancements of Contractor Systems and
Software to be performed, if Contractor elects to make them at its own expense,
they shall be the property of Contractor and shall be subject to the provisions
of Section 1 and this Section 2 pertaining to Contractor Systems and
Software; if Contractor elects to make

 

74

 

enhancements at Purchaser expense so that
they fall within the definition of Purchaser Systems and Software set forth in Section 3,
they shall be subject to the provisions of that Section.

 

Section 3. Systems and Software Developed with
Purchaser Funds.

(A)                               If
any accounting or recording systems (other than hardware and equipment) or
application software or any other software or documentation are developed for
use in connection with Purchaser’s business (a) at least thirty percent
(30%) at Purchaser expense, or (b) developed at a cost of more than
twenty-five thousand dollars ($25,000.00) to Purchaser (all of which shall
constitute “Purchaser Systems and Software”), such Purchaser Systems and
Software shall be the sole property of Purchaser until completion of the Wind-Up,
and thereafter shall become the property of DRMS. Until the completion of the
Wind-Up, Contractor or Purchaser shall inform DRMS quarterly in writing of any
Purchaser Systems and Software developed during such quarter.

 

(B)                               Contractor
shall have a non-exclusive, irrevocable and unconditional license, until the
completion of the Wind-Up and for a period of ten (10) years thereafter,
and without additional cost to Contractor, and a right to have delivered to it,
to use, sublicense, transfer or otherwise market Purchaser Systems and
Software, provided, however, that Contractor may sublicense,
transfer or otherwise market Purchaser Systems and Software only with the prior
written consent of, and on terms agreed to by, DRMS in the exercise of its sole
discretion.

 

(C)                               If
Purchaser develops any accounting or recording systems (other than hardware and
equipment) or application software or any other software or documentation for
use in connection with Purchaser’s business that do not fall within the
definition of Purchaser Systems and Software in this Section 3 (“Other
Systems and Software”), such Other Systems and Software shall be the sole
property of Contractor. Contractor may use, license, sublicense, assign,
transfer or otherwise market Other Systems and Software to any other Person
(including, without limitation, to any Affiliated Party) without DRMS’s
consent. Such use or marketing of Other Systems and Software shall be made upon
such terms and conditions as Contractor may determine in its sole discretion and
without compensation to Purchaser or to DRMS, provided, however,
that such terms and conditions shall not prejudice DRMS’s rights to use
Contractor Systems and Software as set forth in Section 2, above.

 

(D)                               DRMS
shall have a non-exclusive, irrevocable and unconditional license, until
completion of the Wind-Up and for a period of three (3) years thereafter,
and without additional cost to Purchaser or to DRMS (except as otherwise
provided herein), and a right to have delivered to it for DRMS and its designated
representatives to use, solely on DRMS’s own behalf in managing any Remaining
Assets and in reviewing Contractor’s and Purchaser’s performance of their
obligations under this contract, Other Systems and Software; provided, however,
that such delivery shall be only in the format and structure that is used by
Contractor and/or Purchaser in performing their services under this contract

 

(E)                                 Contractor
makes no representations, warranties, or indemnities with respect to Purchaser
Systems and Software or Other Systems and Software, provided, however, that
Contractor agrees that it will use its best efforts to assure that computer
data retention and transfer procedures maintain the integrity, reliability and
security of the original data. Contractor shall not be responsible for
maintaining or enhancing Purchaser Systems and Software or Other Systems and
Software, either before or after completion of the Wind-Up, but Contractor
shall

 

75

 

cause
such maintenance of Purchaser Systems and Software and Other Systems and
Software to be performed until completion of the Wind-Up as may be reasonably
necessary for the effective and efficient operation of Purchaser’s business. To
the extent that Contractor causes enhancements of Purchaser Systems and
Software or Other Systems and Software to be performed at Purchaser’s expense,
such enhancements shall be the property of Purchaser until completion of the
Wind-Up and the property of DRMS thereafter.

 

Section 4. Third-Party Software.

All third party software that Contractor uses in the performance of its
services under this contract is referred to herein collectively as “Third-Party
Software.” Schedule VI.12.4 identifies all Third-Party Software that
Contractor anticipates will be used by Purchaser in the performance of its
services under this Agreement. Until completion of the Wind-Up, Contractor
shall update Schedule VI.12.4 to the extent necessary to reflect its use
of Third-Party Software accurately and shall quarterly inform DRMS in writing
of any such additions to Schedule VI.12.4. To the extent that Contractor
elects to use any Third-Party Software under which it holds a use license on
the date of award in connection with Purchaser’s business, Contractor shall
transfer to Purchaser any such existing use license for such Third-Party
Software as soon as possible after the date of award. In addition, it shall use
reasonable efforts to obtain, as part of such transfer and at the expense of
Purchaser as a Direct Cost, a sublicense for DRMS and its designated
representatives to access and use the Third-Party Software. To the extent that
Contractor or Purchaser elects to acquire Third-Party Software for use in
connection with Purchaser’s business following the date of award, Contractor
shall, at the expense of Purchaser as a Direct Cost, obtain a use license for
such Third-Party Software for Purchaser along with a sublicense for DRMS and
its designated representatives to access and use the Third-Party Software.

 

Section 5. Software Documentation and
Maintenance.

(A)                               Contractor or Purchaser shall retain all user
documentation relating to any application or use of any and all accounting or
recording systems or software, including without limitation all training
manuals used or developed in connection with Contractor’s or Purchaser’s
performance of services under this contract (the “User Documentation”).
Contractor or Purchaser shall provide the originals or copies of such User
Documentation, along with any updated non-third party source code with any
related narratives, design level documents and schematics to all Contractor
Systems and Software, all Other Systems and Software, and all Purchaser Systems
and Software, to DRMS upon completion of the Wind-Up at DRMS’s request; provided,
however, that delivery of such User Documentation, source code and other
materials by Contractor to DRMS shall be only in the format and structure that
is used by Contractor and/or Purchaser in the performance of services under
this Contract.

 

(B)                               Contractor makes no representations,
warranties, or indemnities with respect to such User Documentation, source code
and other materials, provided, however, that Contractor agrees
that it will use its best efforts to assure that the User Documentation, source
code and other materials will be maintained to ensure the integrity,
reliability and security of those items. Contractor shall not be responsible
for any training, maintenance or enhancement with respect to such User
Documentation, source code or other materials, either before or after
completion of the Wind-Up, but Contractor shall cause such maintenance of the
User Documentation to be performed until completion of the Wind-Up as may be
reasonably

 

76

 

necessary for the effective and efficient operation of Purchaser’s
business. To the extent that such training, maintenance or enhancements are
performed by an Affiliated Party, the costs thereof shall be Indirect Costs and
borne solely by Contractor. To the extent that Contractor causes enhancements
of User Documentation to be undertaken at Purchaser expense as a Direct Cost,
such enhancements shall be the property of Purchaser until completion of the
Wind-Up and the property of DRMS thereafter.

 

ARTICLE THIRTEEN. OPERATING ACCOUNT;
WORKING CAPITAL

 

Section 1. Operating Account.

(A)                               Establishment.

Within thirty (30) Days of the date of award
Purchaser shall establish, and shall maintain throughout the Performance Period
and for so long as may be necessary during the Wind-Up, a demand deposit
account, interest bearing if possible (the “Operating Account”), for the
benefit of Purchaser, in such federally insured financial institution as
Purchaser may select, provided, however, that such institution shall not be an
Affiliated Party.

 

(B)                               Maintenance
of Sufficient Funds.

Contractor shall cause Purchaser to maintain
sufficient funds in the Operating Account to meet the cash needs of Purchaser
for the payment of Direct Costs and Seller Indirect Costs.

 

Section 2. Working Capital.

If Purchaser determines on any Business Day
during the Performance Period or Wind-Up that there is a shortfall in the
amount of funds required to meet Purchaser’s immediate cash needs for the
payment of Direct Costs and Seller Indirect Costs, Contractor shall advance
funds to the Operating Account to the extent necessary to fund such shortfall.

 

Section 3. Funds in the Operating
Account; Treatment of Interest.

The funds in the Operating Account, and all
interest earned thereon, shall be funds of Purchaser and no funds other than
Purchaser funds shall be deposited into such account.

 

Section 4. Working Capital Advances.

Amounts transferred by Contractor to
Purchaser to fund the payment of Direct Costs and Seller Indirect Costs are
“Working Capital Advances” (the unrepaid balance being the “Working Capital
Advance Balance”). Working Capital Advances are repayable to Contractor by
Purchaser, but without interest thereon, as funds become available to Purchaser
and as Contractor shall direct. Repayments of Working Capital Advances are not
Direct Costs, and the Working Capital Advance Balance is not a Purchaser
Liability.

 

Section 5. Limited Right to Borrow
Funds.

Other than Working Capital Advances obtained
from Contractor, Purchaser shall not borrow funds for any other purpose or from
any party other than Contractor, and Purchaser shall not pledge or grant any
security interest in the Property for any purpose whatsoever. Notwithstanding
the foregoing, Purchaser shall have the right (i) to
accept unsecured short-term trade credit only from suppliers or vendors to
Purchaser, which trade credit is extended in the

 

77

 

ordinary course of such suppliers’ or vendors’ businesses, and (ii) to finance the purchase or lease of equipment and
to grant a corresponding security interest therein.

 

Section 6. Deposits to Operating Account.

(A)                               Receipts.

No later than the close of business on the
next Business Day following the Day of receipt of any funds on behalf of
Purchaser, Purchaser shall deposit all such receipts into the Operating Account
or Sales Deposit Account.

 

(B)                               Working Capital Advances.

No later than the close of business on the
next Business Day following the Day of receipt of a Working Capital Advance,
Purchaser shall deposit all such funds into the Operating Account.

 

(C)                               Contractor’s Responsibility
for Funds.

Contractor shall act as a fiduciary to
Purchaser with respect to all funds Purchaser receives, holds and/or disburses.

 

Section 7. Disbursements from Operating Account.

(A)                               Costs Payable from Operating
Account.

Purchaser shall timely pay from the Operating
Account or a Transfer Account, and in accordance with the requirements of this Article 13,
all amounts payable for Direct Costs and Seller Indirect Costs, which shall be
paid in full when goods and services are provided or, in the case of suppliers
extending trade credit pursuant to the provisions of Section 5, when
invoiced.

 

(B)                               Limitation on Disbursements.

Purchaser shall make no disbursements from
the Operating Account except for (i) payment
of Distribution Payments and other adjustments pursuant to the provisions of Article 16,
(ii) payment of Direct Costs and
Seller Indirect Costs pursuant to the provisions of Article 9 and this Article 13,
(iii) repayment of Working Capital
Advances pursuant to the provisions of this Article 13, (iv) Purchase Transfers pursuant to the provisions of Article 14,
and (v) transfer of funds to a
Transfer Account pursuant to the provisions of Article 9 and this Article 13.
Except as specifically provided in this contract, no other expense shall be
paid, money lent or reimbursement made by Purchaser to any party.

 

(C)                               Signatures.

Any payment, including a transfer, from the Operating Account shall
require the signature of an employee of Purchaser who is a Key Person. Any
payment in excess of twenty-five thousand dollars ($25,000.00) shall require
the signatures of two of Purchaser’s employees who are Key Persons, one of whom
must be Purchaser’s Chief Executive Officer.

 

Section 8. Transfer Accounts.

Purchaser may in the exercise of its sole discretion
establish a zero balance bank account to facilitate third party payroll
administration (a “Payroll Account”), zero balance purchase card bank accounts
(“P-Card Accounts”) to facilitate delegation of authority for expenditures and
a zero balance sales depository account (a “Sales Deposit Account”) to
facilitate deposits and payments from earned income (each Payroll Account,
P-Card Account, and Sales Deposit Account being a “Transfer Account”). Each
Transfer Account

 

78

 

shall be established in such federally
insured financial institution as Purchaser may select, provided, however, that
such institution shall not be an Affiliated Party.

 

ARTICLE FOURTEEN. PURCHASE ACCOUNT

 

Section 1. Purchase Account.

(A)                               Establishment.

Within thirty (30) Days of the date of award
Purchaser shall establish, and shall maintain throughout the Performance Period
and for so long as may be necessary during the Wind-Up, a demand deposit
account, interest bearing if possible (the “Purchase Account”) for the benefit
of Purchaser, in such federally insured financial institution as Purchaser may
select, provided, however, that such institution shall not be an Affiliated Party.

 

(B)                               Maintenance
of Sufficient Funds.

Contractor shall cause Purchaser to maintain
sufficient funds in the Purchase Account to meet the cash needs of Purchaser
for the timely payment of Invoices for the purchase of Property.

 

Section 2. Purchase Advances.

If Purchaser determines on any Business Day
during the Performance Period or Wind-Up that Purchaser requires additional
funds in the Purchase Account to meet Purchaser’s immediate cash needs for the
payment of an Invoice, Contractor shall transfer funds to the Purchase Account
(each such transfer, a “Purchase Advance”) immediately to the extent necessary
to fund such shortfall.

 

Section 3. Funds in the Purchase
Account; Treatment of Interest.

The funds in the Purchase Account, and all
interest earned thereon, shall be funds of Purchaser. Interest earned thereon
shall be applied to defray the amounts of Purchase Advances and Purchase
Transfers that would otherwise be required.

 

Section 4. Treatment of Purchase
Advances.

Purchase Advances shall not be treated as
Purchaser Liabilities, and shall not be repaid by Purchaser other than through
Contractor Distributions. Purchaser shall not pay to Contractor any interest on
Purchase Advances.

 

Section 5. Disbursements from Purchase
Account.

Except during the Wind-Up as provided in Article 21,
Purchaser shall make no disbursements or transfers from the Purchase Account
other than payments to DRMS and to KGP for Invoices.

 

Section 6. Purchase Transfers.

At each time that a Contractor Distribution
Payment is payable in an amount greater than zero after adjustment pursuant to
the provisions of Subsections (1) and (2) of Section 4(D) of
Article 16, Purchaser shall withhold therefrom and transfer from the
Operating Account to the Purchase Account (a “Purchase Transfer”) the amount
reasonably estimated by Purchaser that, when added to the balance then
available in the Purchase Account, will be required during the

 

79

 

next succeeding thirty (30) Days for the timely payment of Invoices,
provided, however, that the balance payable to Contractor shall not be less
than zero. At any time that the Working Capital Advance Balance exceeds zero,
Contractor in the exercise of its sole discretion may cause Purchaser to fund a
Purchase Transfer in an amount less than or equal to the amount of the Working
Capital Advance Balance, and the amount of the Working Capital Advance Balance
shall be deemed reduced by the amount of such Purchase Transfer.

 

ARTICLE FIFTEEN. FINANCIAL GUARANTEE BOND; RETENTION
FUND;

ESTIMATED CONTINGENT LIABILITIES RESERVE

 

Section 1. Election of Contractor to Provide
Financial Guarantee Bond in Lieu of Retention.

Contractor shall either (i) obtain
a performance bond or financial guarantee bond (the “Financial Guarantee Bond”)
issued within thirty (30) Days of the date of award in favor of DRMS and
Purchaser on this contract in the amount of one million dollars ($1,000,000.00),
or (ii) be
subject to the withholding of a portion of Contractor Distributions as provided
in Section 3 hereof. The purpose of the Financial Guarantee Bond and the
Retention Fund shall be to provide a source of payment to DRMS and/or to
Purchaser in an amount reasonably sufficient to satisfy the
financial obligations of Contractor.

 

80

 

 

Section 2. Financial Guarantee Bond.

(A)                               Surety
and Form of Bond.

The Financial Guarantee Bond shall be issued
by such surety and in such form that are acceptable to DRMS in the exercise of
its sole discretion.

 

(B)                               Issuance
and Renewal.

The Financial Guarantee Bond shall be issued
and, if applicable, renewed for periods of at least one year, renewable at the
sole option of the surety.

 

(C)                               Liability and Release of Surety.

The surety shall be liable to DRMS for damages
arising out of a Material Breach by Contractor or Purchaser, and the surety’s
liability on the Financial Guarantee Bond shall terminate with respect to a
particular period of time upon approval by DRMS of Purchaser’s Annual Report
or, if applicable, the Closing Report, pertaining to such period of time,
provided, however, that such approval may be conditioned by DRMS upon the final
resolution of claims that may arise or have arisen out of occurrences specified
by DRMS in its notice of such conditional approval, which occurrences fall in
whole or in part within such period of time, and the surety shall remain liable
until such claims are finally resolved.

 

Section 3. Retention Fund.

(A)                               Establishment
of Retention; Retention Rate; Retention Fund; Required Retention Fund Balance.

Except as otherwise provided herein,
beginning with the first calendar month (the “Retention Trigger Month”)
following the later of (i) the
calendar month with respect to which the cumulative amount of Contractor
Distribution Payments exceeds the cumulative amount of Purchase Advances or (ii) if applicable, the calendar month in which the
Financial Guarantee Bond lapses or is terminated, ten percent (10%) (the
“Retention Rate”) of all Contractor Distribution Payments otherwise payable to
Contractor in an amount greater than zero after adjustment pursuant to the
provisions of Subsections (1), (2) and (3) of Section 4(D) of
Article 16 shall be paid to DRMS (“Retention Payments”) to hold in a fund.

 

(1)                                 At the time of award
and throughout the Performance Period and Wind-Up except as otherwise provided
herein, the target balance for the Retention Fund (the “Required Retention Fund
Balance”) shall be five hundred thousand dollars ($500,000.00).

 

(2)                                 Except as otherwise
provided herein, while a Financial Guarantee Bond that complies with the
provisions of Sections 1 and 2 above of this Article 15 remains in effect,
the Retention Rate shall be zero and the Required Retention Fund Balance shall
be zero.

 

(3)                                 Retention Payments
shall continue from the Retention Trigger Month until the balance in the
Retention Fund equals the amount of the Required Retention Fund Balance,
provided, however, that the amount of the Retention Payment shall be zero with
respect to any month for which the Contractor Net Worth Allocation Balance
exceeds zero.

 

81

 

(B)                               Insolvency
of Contractor.

If Contractor voluntarily places itself or is
involuntarily placed in proceedings under Title 11 of the United States Code
(or corresponding provisions of future law) or any other federal or state
insolvency law, Contractor shall so notify DRMS and Purchaser within ten (10) Days
of the commencement of such proceedings. Effective with the earlier of receipt
of such notice or receipt by DRMS of actual knowledge of the commencement of
such proceedings, the Required Retention Fund Balance shall be increased by
five-hundred thousand dollars ($500,000.00) and Purchaser shall thereafter pay
to DRMS, in addition to any other payments due to DRMS under the contract,
including without limitation Retention Payments, ten percent (10%) of any
Contractor Distribution Payments otherwise payable to Contractor in an amount
greater than zero after adjustment pursuant to the provisions of Subsections (1),
(2) and (3) of Section 4(D) of Article 16 (“Contractor
Insolvency Retention Payments”). Contractor Insolvency Retention Payments shall
be added to the amount of the Retention Fund, and such payments shall continue
until the amount in the Retention Fund equals the Required Retention Fund
Balance.

 

(C)                               Increased
Retention.

If DRMS at any time after the Retention
Trigger Month determines that the amount in the Retention Fund will likely not
be sufficient to satisfy its purpose, it may submit the issues of the
sufficiency of the amount of the Retention Fund or of the Retention Rate to the
Dispute Resolution Panel in accordance with the provisions of Article 20
below. The Panel shall determine whether the total amount of the Retention Fund
and/or the Retention Rate shall be increased in order to effectuate the purpose
of Retention.

 

(D)                               Release
of Retention Fund.

The balance in the Retention Fund shall be
released to Contractor without interest thereon as provided in Article 21.

 

Section 4. Estimated Contingent
Liabilities Reserve.

Effective as of the date of award, Purchaser
shall establish an estimated contingent liabilities reserve account (the
“ECLR”) on its books of account. The ECLR shall represent an amount reasonably
deemed from time to time by Purchaser to be sufficient to satisfy all of
Purchaser’s contingent, conditional and/or unmatured claims, liabilities and
obligations that have not otherwise been accrued in accordance with GAAP. The
ECLR shall be carried on the books of Purchaser as a liability, but shall not
be included in the computation of Purchaser Liabilities. Purchaser shall
maintain the ECLR throughout the Performance Period and Wind-Up until
Contractor reasonably determines that all of the contingent, conditional and/or
unmatured claims, liabilities and obligations of Purchaser have been satisfied,
it being expressly understood that DRMS may submit to the Dispute Resolution
Panel in accordance with the provisions of Article 20 a Dispute as to the
appropriate duration or amount of the ECLR. So long as Purchaser maintains the
ECLR on its books, it shall include within its Monthly, Quarterly and Annual
Reports a written statement (the “ECLR Statement”) of the amount of the ECLR
and an itemization specifying the contingent, conditional and unmatured claims
and obligations of Purchaser that the ECLR is intended to satisfy.

 

82

 

ARTICLE SIXTEEN. DISTRIBUTIONS

 

Section 1. Monthly Distribution Statement.

Within fifteen (15) Days after the last Day
of each calendar month that is in whole or in part within the Performance
Period and Wind-Up, Purchaser shall prepare and submit to DRMS, KGP and
Contractor the “Monthly Distribution Statement” with respect to such month in
the form specified at Attachment VI.16.1. Purchaser shall perform the following
calculations in preparing the Monthly Distribution Statement. Except as
otherwise provided herein, all amounts shall be determined as of the close of
business on the last Day of the subject month.

 

Section 2. Calculate Cash Available for Distribution and Operating Net Worth.

(A)                               Calculate
Cash Available for Distribution.

Purchaser shall calculate the amount of
Purchaser’s “Cash Available for Distribution,” equal to (x) the sum of the cash balances in the Operating Account and the Transfer
Accounts (Purchaser’s “Operating Cash Balance”) minus  (y) the sum of (i) the
Working Capital Advance Balance, (ii) the
amount of Purchaser Liabilities, (iii) Purchaser’s reasonable estimate
of the amount of cash required for the payment of Direct Costs for the next
succeeding calendar month, (iv) Purchaser’s
reasonable estimate of the amount of cash required for the payment of Seller
Indirect Costs during the next succeeding calendar month, and (v) the Estimated Contingent Liability Reserve (ECLR).

 

(B)                               Calculate
Operating Net Worth.

 

(1)                                 Cash Available for Distribution is Less Than or Equal
to Zero. If Cash Available for Distribution is less than or equal to
zero, the amount of Purchaser’s “Operating Net Worth” shall equal the amount of
Seller Indirect Costs paid during the subject month.

 

(2)                                 Cash Available for Distribution is Greater Than Zero. If
Cash Available for Distribution is greater than zero, the amount of Purchaser’s
“Operating Net Worth” shall equal (x) the
Cash Available for Distribution plus  (y)
the amount of Seller Indirect Costs paid during the subject month.

 

Section 3. Calculate Net Worth
Allocations.

(A)                               Calculate
Contractor Net Worth Allocation.

Purchaser shall calculate the amount of the
“Contractor Net Worth Allocation” as Operating Net Worth multiplied  by
twenty percent (20.00%).

 

(B)                               Calculate
DRMS Net Worth Allocation.

Purchaser shall calculate the amount of the
“DRMS Net Worth Allocation” as Operating Net Worth multiplied by
seventy-eight and twenty one-hundredths percent (78.20%).

 

(C)                               Calculate
KGP Net Worth Allocation.

Purchaser shall calculate the amount of the
“KGP Net Worth Allocation” as Operating Net Worth multiplied by one and
eighty one-hundredths percent (1.80%).

 

Section 4. Distribution Payments.

Purchaser shall make payments of
Distributions (each, a “Distribution Payment”) to DRMS, KGP and Contractor
contemporaneously in accordance with the following provisions within fifteen
(15) Days after the last Day of each calendar month that is in whole or in part
within the Performance Period and Wind-Up:

 

83

 

(A)                               As
of the inception of the contract, the “Net Worth Allocation Balance” for DRMS,
Contractor and KGP, respectively, shall be deemed equal to zero.

 

(B)                               DRMS
Net Worth
Allocation is Greater Than or Equal to the Sum of Seller
Indirect Costs and DRMS Net Worth Allocation Balance.

If the DRMS Net Worth Allocation is greater
than or equal to the sum of Seller Indirect Costs paid during the subject month
and DRMS Net Worth Allocation Balance for the preceding calendar month,
Purchaser shall calculate the amounts of the Distribution Payments and the Net
Worth Allocation Balances for the subject month as follows.

 

(1)                                 Calculate Contractor Distribution Payment and
Contractor Net Worth Allocation Balance.

(a)                                  Purchaser shall
calculate the amount, of the “Contractor Distribution Payment” as the amount of
(i) the Contractor Net Worth
Allocation, plus  (ii) the
preceding calendar month’s Contractor Net Worth Allocation Balance.

(b)                                  The Contractor Net
Worth Allocation Balance for the subject month shall equal zero.

 

(2)                                 Calculate DRMS Distribution Payment and DRMS Net Worth
Allocation Balance.

(a)                                  Purchaser shall
calculate the amount, of the “DRMS Distribution Payment” as the amount of (i) the DRMS Net Worth Allocation, minus  (ii) the preceding calendar month’s DRMS Net Worth
Allocation Balance, minus  (iii) Seller Indirect Costs paid
during the subject month.

(b)                                  The DRMS Net Worth
Allocation Balance for the subject month shall equal zero.

 

(3)                                 Calculate KGP Distribution Payment and KGP Net Worth
Allocation Balance.

(a)                                  Purchaser shall
calculate the amount, of the “KGP Distribution Payment” as the amount of (i) the KGP Net Worth Allocation, plus  (ii) the
preceding calendar month’s KGP Net Worth Allocation Balance.

(b)                                  The KGP Net Worth
Allocation Balance for the subject month shall equal zero.

 

(C)                               DRMS
Net Worth Allocation is Less Than the
Sum of Seller Indirect Costs and DRMS Net Worth Allocation Balance.

If the DRMS Net Worth Allocation is less than
the sum of Seller Indirect Costs paid during the subject month and DRMS Net
Worth Allocation Balance for the preceding calendar month, Purchaser shall
calculate the amounts of Distribution Payments and Net Worth Allocation Balances
as follows.

 

(1)                                 Calculate
Contractor Distribution Payment and Contractor Net Worth Allocation Balance.

(a)                                  Purchaser shall
calculate the amount of the “Contractor Distribution Payment” as the amount of (i) ninety-one and seventy-four one-huudredths percent
(91.74%), multiplied by  (ii) Cash
Available for

 

84

 

Distribution, provided, however, that the
Contractor Distribution Payment shall not be less than zero.

 

(b)                                 Purchaser
shall calculate the amount of the “Contractor Net Worth Allocation Balance” as
the amount of (i) the Contractor Net Worth
Allocation, plus  (ii) the
Contractor Net Worth Allocation Balance for the preceding calendar month, minus
(iii) the Contractor Distribution
Payment.

 

(2)                                 Calculate
DRMS Distribution Payment and DRMS Net Worth Allocation Balance.

 

(a)                                  The amount of the
“DRMS Distribution Payment” shall equal zero.

 

(b)                                  Purchaser shall
calculate the amount of the “DRMS Net Worth Allocation Balance” as the amount
of (i) the DRMS Net Worth Allocation
Balance for the preceding calendar month, minus  (ii) the
DRMS Net Worth Allocation, plus  (iii) Seller
Indirect Costs paid during the subject month.

 

(3)                                 Calculate
KGP Distribution Payment and KGP Net Worth Allocation Balance.

 

(a)                                  Purchaser shall
calculate the amount of the “KGP Distribution Payment” as eight and twenty-six
one-hundredths percent (8.26%) of the Cash Available for Distribution,
provided, however, that the KGP Distribution Payment shall not be less than
zero.

 

(b)                                  Purchaser shall
calculate the amount of the “KGP Net Worth Allocation Balance” as the amount of
(i) the KGP Net Worth Allocation, plus
(ii) the KGP Net Worth Allocation
Balance for the preceding calendar month, minus  (iii) the
KGP Distribution Payment.

 

(D)                               Adjustments
to Distributions.

 

(1)                                 Purchaser shall deduct
from the DRMS Distribution Payment and add to the Contractor
Distribution Payment the amount of any credit for overpayments of Invoices owed
by DRMS as required by the provisions hereof, provided, however, that the
balance payable to DRMS shall not be less than zero.

 

(2)                                 Any amount that
Contractor owes to Purchaser as the result of an undisputed Audit Adjustment, a
Decision of the Dispute Resolution Panel, a final judgment or other undisputed
obligation in an amount certain, shall be deducted from the Contractor
Distribution Payment, provided, however, that the balance payable to Contractor
shall not be less than zero.

 

(3)                                 Purchaser shall deduct
from the Contractor Distribution Payment the amount of any Purchase Transfer
required by the provisions of Article 14.

 

(4)                                 Purchaser shall deduct
from the Contractor Distribution Payment and add to the DRMS Distribution
Payment the amount, if any, of Retention required by the provisions of Article 15.

 

85

ARTICLE SEVENTEEN. COMPLIANCE AND
MONITORING

 

Section 1. Purpose and Content of
Compliance Reviews and Further Reviews.

(A)                               Compliance
Reviews and Further Reviews.

 

DRMS shall have the right to conduct
“Compliance Reviews” of Purchaser in accordance with, and as limited by, the
provisions of this Article 17. DRMS may actually conduct the Compliance
Reviews, or use other Government agencies or private firms, as the SCO deems
appropriate. DRMS shall also have the right to conduct “Further Reviews” as
provided herein. The purpose of such Compliance Reviews and Further Reviews is
to determine, after the fact, the extent of Purchaser’s compliance with the
terms and provisions of the contract and applicable laws and regulations. Such
Compliance Reviews and Further Reviews are not intended to provide a mechanism
for DRMS participation or involvement in ongoing decision-making regarding the
affairs of Purchaser. No-notice Trade Security Control reviews and inspections
conducted by DLA Trade Security Control personnel are separate and distinct
from the Compliance Reviews described in this Section.

 

(B)                               Methods.

 

Compliance Reviews may include, without
limitation: (i) examination of the
Records, and (ii) personal interviews of
persons who may have knowledge of facts regarding Purchaser’s compliance with
the provisions of this contract, including employees of Purchaser or of any
supplier or re-sale buyer.

 

Section 2. Procedures for Compliance
Reviews.

(A)                               Procedures
and Notice.

 

A Compliance Review shall be conducted at any
time during normal business hours and on any Business Day upon reasonable
notice. It is expressly agreed that a period of at least fourteen (14) Days
shall constitute reasonable notice before a Compliance Review. Purchaser shall
permit inspection of any physical location used by Purchaser, including,
without limitation, the inventory (including the Records relating thereto),
examination of the Records, making copies and abstracts therefrom, and
discussions of the affairs, finances and accounts of Purchaser with any
employee, subcontracting attorney or certified public accountant of Purchaser.
DRMS shall use its best efforts to assure that Compliance Reviews are conducted
in a manner that does not unduly burden or unreasonably impinge upon the
efficient operation of the affairs of Purchaser.

 

(B)                               Scope.

 

The scope of Compliance Reviews shall be as
necessary to confirm Purchaser’s and Contractor’s compliance with the
provisions of the contract.

 

Section 3. Further Reviews.

If a Compliance Review determines that there
is a reasonable basis to believe that a default or breach of this contract has
occurred, DRMS, upon written notice to Contractor, may conduct any such further
investigation that it deems appropriate under the circumstances, using such
outside consultants, including attorneys, as it deems necessary or advisable
(“Further Review”). Purchaser shall permit such persons as are designated by
DRMS to visit and inspect any physical location used by Purchaser, including,
without limitation, the inventory (including the Records relating thereto), and
to examine the Records, make copies and abstracts therefrom,

 

 

86

 

and discuss the affairs, finances and accounts of Purchaser with any
employee, attorney or certified public accountant of Purchaser. Notwithstanding
the foregoing, if Contractor gives notice to DRMS stating that a Further Review
is not justified, DRMS shall delay the commencement of any such Further Review
for a period of fourteen (14) Days after the delivery of its notice thereof to
Purchaser to permit Contractor to seek a determination of the appropriateness
of the Further Review pursuant to the provisions of Article 20.

 

Section 4. Compliance Notification.

After completing the Compliance Review and/or
Further Review, DRMS shall notify Contractor in writing of any breach or
default identified during the Compliance Review and/or Further Review.

 

Section 5. Costs of Oversight.

Except as provided in Article 20, DRMS
shall pay all fees, costs and expenses incurred in connection with its Compliance
Reviews and Further Reviews.

 

ARTICLE EIGHTEEN. AUDIT ADJUSTMENTS

 

Section 1. Notice of Audit Adjustment.

If any party determines that the Records
reflect any inaccuracies requiring entry of an adjustment thereto (an “Audit
Adjustment”), including, without limitation, the disbursement of any amount
from the Operating Account or a Transfer Account that is inconsistent with any
provision of the contract (“Ineligible Disbursement”) or the disposition of an
item of Property that is inconsistent with any provision of the contract
(“Ineligible Disposition”), such party shall give written notice thereof to the
other party or parties (a “Notice of Audit Adjustment”).

 

Section 2. Procedures for Adjudication
of Audit Adjustments.

If either Contractor or DRMS disputes an
asserted Audit Adjustment, it may submit such dispute for resolution pursuant
to the provisions of Article 20. Upon resolution of such dispute or, if no
party submits a dispute for resolution pursuant to the provisions of Article 20
within sixty (60) Days of the Notice of Audit Adjustment, the Audit Adjustment
shall be deemed confirmed as asserted.

 

Section 3. Remedies for Audit
Adjustments.

Upon confirmation of an Audit Adjustment, (i) Purchaser will pay to the party in question, or the
party will pay to Purchaser, as the case may be, the amount required to restore
the parties to their respective positions status  quo  ante,
and (ii) Purchaser will correct the
Records in accordance with the Audit Adjustment as confirmed. If, as a result
of the Audit Adjustment, Contractor is to pay Purchaser or Purchaser is to pay
DRMS, each such payment shall include interest thereon calculated at the “Prime
Rate” then most recently published in the Wall
Street Journal plus two
hundred (200) basis points or at the rate provided by applicable law.

 

ARTICLE NINETEEN. MATERIAL BREACH

 

87

 

Section 1. Notice of Material Breach.

In the event of a material breach or default
(“Material Breach”) in the performance of the contract by Purchaser, Contractor
or DRMS of their respective duties hereunder, the party asserting such Material
Breach (the “Non-Breaching Party”) shall serve notice thereof upon the party
that committed or is alleged in the notice to have committed such Material
Breach (the “Breaching Party”).

 

Section 2. Response to Notice.

(A)                               Cure.

 

Except as otherwise provided herein, the
Breaching Party may cure the Material Breach within thirty (30) Days of such
notice (the “Cure Period”) or within such longer Cure Period as the notice may
provide unless, within the Cure Period, the Non-Breaching Party withdraws the
notice in writing or extends the Cure Period in writing.

 

(B)                               Submission
of Dispute to Dispute Resolution Panel.

 

Except as otherwise provided herein, the
Breaching Party may dispute the asserted Material Breach by presenting such
Dispute to the Dispute Resolution Panel as provided in Article 20.

 

Section 3. Termination.

Except as otherwise provided herein,
referrals of Property by DRMS for sale to Purchaser hereunder shall terminate
(a “Termination”) upon notice thereof by the Non-Breaching Party to the
Breaching Party served upon or after expiration of the Cure Period if the
Breaching Party fails to cure within the Cure Period or, if the Non-Breaching
Party submits the asserted Material Breach to the Dispute Resolution Panel as
provided in Article 20 and the Panel issues a Decision confirming the
asserted Material Breach, Termination shall be effective upon notice thereof by
the Non-Breaching Party to the Breaching Party served upon or after the date of
such Decision. Except as otherwise provided herein, Contractor, Purchaser and
DRMS shall continue to perform their respective duties under the contract
during the Cure Period and while a Dispute is pending before the Panel.

 

Section 4. Intentional Breach.

An asserted Material Breach comprised of an
intentional breach of the Duty of Loyalty or the Duty of Care prescribed in Article 7
(an “Intentional Breach”) may not be cured unless DRMS, in its sole discretion,
specifies a Cure Period in the notice thereof. Termination shall be effective
upon the later of the date of service of such notice or the expiration of the
Cure Period, if any, unless Contractor or Purchaser presents a Dispute
regarding such asserted Intentional Breach to the Dispute Resolution Panel as
provided in Article 20 within five (5) Days of such notice or within
the Cure Period specified in such notice, if any, whichever is longer. If such
Dispute is presented to the Panel and the Panel issues a Decision confirming
such Intentional Breach, Termination shall be effective upon the date of such
Decision.

 

88

 

Section 5. DRMS Remedies for Material
Breach by Contractor or Purchaser.

If the Breaching Party is Purchaser or
Contractor, DRMS may take any one, any combination or all of the following
actions to satisfy its claims for any non-payments or other damages:

 

(i)                                    Apply
the proceeds of the sale of Purchaser’s property;

(ii)                                Apply the Payment
Deposit and/or Retention;

(iii)                            Present a claim for
indemnity against Contractor as provided in Section 6 below;

(iv)                               Present a claim upon the
Fidelity or Blanket Bond or any other applicable insurance or surety policy;

(v)                                   Seek appointment of
a receiver or trustee for Purchaser;

(vi)                               Seek monetary damages,
restitution or any other legal or equitable remedy to which it is entitled;

(vii)                           Assert any other right,
claim, or remedy available pursuant to the Contract Disputes Act.

 

Section 6. Indemnification of DRMS by
Contractor and Purchaser.

 

Contractor guarantees that Purchaser will
comply fully with the provisions of this contract. If the Breaching Party is
Purchaser or Contractor, both Purchaser and Contractor shall indemnify and hold
DRMS harmless for all damages arising therefrom.

 

Section 7. Indemnification of Contractor
by DRMS.

 

If the Breaching Party is DRMS, DRMS shall
indemnify and hold Contractor harmless for its damages.

 

ARTICLE TWENTY. DISPUTE RESOLUTION

 

The procedure provided in this Article is
intended to be elective and not to supplant any Contract Disputes Act rights of
any party. DRMS’s Sale by Reference, Part 2, Condition 32, continues to
apply.

 

Section 1. Selection of Dispute
Resolution Panel.

The Dispute Resolution Panel (the “Panel”)
shall consist of three (3) persons chosen as follows:

 

(A)                               Appointment
of Arbitrators.

 

Within thirty (30) Days following service of
notice of a “Dispute” (as such term is defined in Section 4(A) below of
this Article 20), DRMS and Contractor shall each notify the other of its
designee to serve as its representative (each, an “Appointed Arbitrator”) on
the Panel. Within thirty (30) Days thereafter, the two Appointed Arbitrators
shall agree to designate a third person (the “Neutral Arbitrator”) to serve on
the Panel and each party shall provide notice to the other confirming such
designation. If the two Appointed Arbitrators cannot agree on the Neutral
Arbitrator, either party may submit to the Washington, D.C. office of the
American Arbitration Association (the “AAA”) a written joint request for the
selection of the Neutral Arbitrator pursuant to AAA’s Rules for Commercial
Arbitration (“AAA Rules”).

 

89

 

(B)                               Service of Arbitrators.

 

DRMS and Contractor each may replace its
respective Appointed Arbitrator at any time except during the pendency of a
proceeding before the Panel (unless such replacement is necessitated by the
death or disability of the Appointed Arbitrator or, in the case of DRMS’s
Appointed Arbitrator, by reason of job transfer, reassignment or similar
circumstance, or in the case of Contractor’s Appointed Arbitrator, by reason of
termination of employment or resignation by the Appointed Arbitrator). The
Neutral Arbitrator shall serve on the Panel for a one year term unless
reappointed or unless replaced by the mutual consent of DRMS and Contractor. At
the end of each one-year term, the Appointed Arbitrators may agree either to
reappoint the Neutral Arbitrator for another one-year term, or select a
replacement as Neutral Arbitrator as provided in Section 1(A) above. If at
any time the Neutral Arbitrator becomes unable or unwilling to continue service
on the Panel, the parties shall, within thirty (30) Days of receipt of notice thereof
from the Neutral Arbitrator (or if the Neutral Arbitrator fails to give such
notice, from the Appointed Arbitrators), designate a replacement as provided in
Section 1(A) above.

 

(C)                               Expenses.

 

Contractor and DRMS shall each bear the costs
of its respective Appointed Arbitrator and shall equally share the costs of the
Neutral Arbitrator. Neither such costs nor any other cost, fee or expense of
any character whatsoever that is incurred to support, present or document a
party’s position in a proceeding before a court, Board, the Panel or any other
tribunal shall be a Direct Cost.

 

Section 2. Location and Governing Rules.

The Panel shall conduct proceedings in Battle
Creek, Michigan pursuant to the AAA Rules.

 

Section 3. Jurisdiction of the Panel.

(A)                               Matters Committed to the Panel.

 

Except as set forth in Section 3(B) below,
any Dispute may be submitted to the Dispute Resolution Panel for voluntary,
binding arbitration.

 

(B)                               Availability
of Judicial Relief.

 

Either DRMS or Contractor may bypass the
Panel and seek relief in connection with a Dispute including, without
limitation, emergency relief, monetary damages, and/or the Wind-Up of
Purchaser, from a court of competent jurisdiction. It is expressly provided,
however, that the party seeking such relief shall provide written notice to the
opposing party specifying the facts giving rise to the Dispute, and, except in
emergency circumstances or unless otherwise provided herein, the opposing party
shall have thirty (30) Days following receipt of such notice in which to cure
the facts underlying the Dispute before the party serving such notice may seek
such judicial relief.

 

Section 4. Submission of Disputes to the
Panel.

(A)                               Dispute.

 

Any dispute, controversy or claim arising
under or relating to this contract between the parties, including, but not
limited to, a dispute relating to the interpretation of any provision of this
contract, a dispute relating to the scope or conduct of Purchaser’s or
Contractor’s duties under

 

90

 

this contract, a dispute regarding DRMS’s exercise of its oversight
powers under Article 17, and a dispute relating to any Audit Adjustment,
shall constitute a “Dispute”.

 

(B)                               Process.

 

(1)                                 Notice.
Except as to matters explicitly committed to the “discretion” or “option” of a
party, as to which such party’s exercise of its discretion or option shall not
be subject to the following dispute resolution process, if a Dispute arises
between the parties, either may serve notice upon the other that it wishes to
present the Dispute to the Panel for resolution, provided,  however,
that no such notice shall be served beyond completion of the Wind-Up.

 

(2)                                 Response.
Within fifteen (15) Days after service of a notice, the party upon which it is
served shall respond in writing (“Response”). The Response shall state whether
such responding party agrees to binding arbitration as provided in this Article 20
and, if such party so agrees, the Response shall describe the responding party’s
position with respect to such matter and shall designate the attorney(s) or
other representative (“Designated Representative”) that such party has selected
to represent it in connection with such matter. A Response that does not
expressly state that the responding party does not agree to binding arbitration
shall be deemed to constitute such party’s agreement to participate in binding
arbitration as provided in this Article 20.

 

(3)                                 Negotiation.
Within fifteen (15) Days after service of the Response, the Designated
Representatives shall meet and attempt to resolve the matter. Within the same
fifteen (15) Day period, the Designated Representatives also shall deliver
copies of their respective notices and Responses to each member of the Panel.
If the Designated Representatives fail to resolve the dispute within ten (10) Business
Days after service of the Response, each party shall within five (5) Business
Days so notify the Panel and deliver to the Panel such written information,
arguments, documentary evidence, and other written documentation, as it may
deem appropriate.

 

(4)                                 Request
for Immediate Action by the Panel. If a party believes that a situation has
arisen that requires immediate action by the Panel, any party may serve a
notice upon each member of the Panel and upon the other party to request such
immediate action.

 

Section 5. Decision.

The Panel shall issue a written decision (the
“Decision”) endorsed by a majority of the Panel as promptly as possible, but in
no event later than forty-five (45) Days after the close of the arbitration
bearing for the matter. Within thirty (30) Days of the issuance of a Decision,
either party may bring suit in a court of competent jurisdiction under the
federal Contract Disputes Act for enforcement of the Decision. It is not the
intent of the parties that such court will engage in de  novo
review of the underlying matter. Absent such suit, upon the expiration of such
thirty (30) Day period the Decision shall be binding on both parties and
enforceable by a court of competent jurisdiction. Immediately upon expiration
of such thirty (30) Day period, Purchaser shall correct the Records as
necessary to comply with the Decision, the respective parties shall pay to the
other such sums as ordered by the Decision, and the parties shall cooperate to
take all such actions that in other respects may be necessary to comply with
the Decision.

 

91

 

Section 6. Remedies Available to Dispute
Resolution Panel.

(A)                               Remedies
in the Case of Disputes.

 

Upon the request of either party, the Panel
may issue a Decision declaring the rights and obligations of the parties with
respect to any Dispute submitted to the Panel, or a Decision ordering either
party to take any action that the Panel deems appropriate within the scope of the
contract, including without limitation payment of damages, or to refrain from
taking certain actions specified by the Panel. In addition, and without
limiting the foregoing, the Panel also may issue an order directing any party
to comply with the requirements of the contract and may specify the actions
necessary to constitute compliance.

 

(B)                               Remedies
for Ineligible Disbursements.

 

If the Panel confirms a disputed Audit
Adjustment arising out of an Ineligible Disbursement, the Panel may order
Contractor to pay Purchaser from Contractor’s own funds the amount of any such
Ineligible Disbursement.

 

(C)                               Award
of Costs.

 

In addition to the remedies described in
Subsections (A) and (B) above, the Panel shall award the reasonable
fees, costs and expenses (“Awarded Costs”) actually incurred in the prosecution
or defense of a Dispute to the prevailing party. Awarded Costs shall be
calculated from the commencement of preparation of the notice as defined in Section 4(B) through
the conclusion of proceedings before the Panel. Awarded Costs shall not
constitute Direct Costs and shall be borne by the non-prevailing party.

 

Section 7. Effective Date.

Disputes that are resolved or confirmed by a
Decision shall be deemed confirmed as of the date that is thirty (30) Days after
the date of issuance of the relevant Decision.

 

Section 8. Agreement to Use Alternative
Dispute Resolution.

The parties agree to use their best efforts
to resolve any disputes that may arise without litigation. If unassisted
negotiations are unsuccessful, the parties will use alternative dispute
resolution (“ADR”) techniques in an attempt to resolve the dispute. Litigation
will only be considered as a last resort when ADR is unsuccessful or has been
documented by the party rejecting ADR to be inappropriate for resolving the
dispute. If the ADR is not successful, the parties retain their existing
rights.

 

ARTICLE TWENTY-ONE. WIND-UP OF PURCHASER

 

Section 1.  Wind-Up Commencement Date.

Beginning with the date (the “Wind-Up
Commencement Date”) that is the earlier of (1) the end of the Performance
Period or (2) the effective date of Termination by reason of DRMS or
Contractor exercising the early cancellation option as provided in Article 2
or by reason of a Material Breach, the contract shall be wound up as provided
herein.

 

92

 

Section 2. Cessation of Property Referrals.

There shall be no further referrals of
Property by DRMS for sale to Purchaser from the Wind-Up Commencement Date
forward. Submission of Monthly, Quarterly and Annual Reports shall continue as
before the Wind-Up Commencement Date until the Wind-Up is completed.

 

Section 3. Conduct of Wind-Up.

From the Wind-Up Commencement Date forward,
Purchaser and Contractor shall perform their remaining obligations hereunder in
accordance with the provisions of this contract. If Purchaser and Contractor
are unable or unwilling to do so, or if DRMS reasonably concludes that the
value of its remaining interest in Purchaser’s Net Proceeds is at risk by
reason of actual or threatened failure to comply with provisions of the
contract, DRMS may seek administrative or judicial relief to preserve the value
of such remaining interest in Purchaser’s Net Proceeds.

 

Section 4. Submission and Approval of Closing Report.

(A)                               Preparation
by Contractor.

 

Within one hundred twenty (120) Days of
Contractor’s determination that (i) the
sale or other disposition of all of Property and all other assets owned by
Purchaser as of the Wind-Up Commencement Date (the “Remaining Assets,” including
such Property that, as of the Wind-Up Commencement Date, has been referred for
sale to Purchaser but as to which the Purchaser has not taken Delivery) has
been completed, (ii) all
Purchaser Liabilities have been paid in full, (iii) the
ECLR has properly been removed from Purchaser’s books of account as provided in
Article 15, and (iv) all
amounts owed by Purchaser have been paid in full, Contractor shall prepare and
submit to DRMS and to KGP the Closing Report.

 

(B)                               Preparation
by DRMS.

 

If Contractor is unable or unwilling to
prepare the Closing Report, DRMS may take such steps as are reasonably
necessary to enable the calculation and payment of final amounts payable to
DRMS, KGP and Contractor as determined by application of the provisions of Article 16
and of Section 5(B) below of this Article 21.

 

Section 5. Final Distributions; Refund
of Remaining Balance of Payment Deposit and Remaining Balance of Retention
Fund.

(A)                               Final
Distributions; Dissolution of Purchaser.

 

Upon DRMS approval of the Closing Report,
Contractor shall take, or as may be appropriate, Contractor shall cause
Purchaser to take, each of the following actions:

 

(1)                                 Final
Distributions. Distribute all of Purchaser’s remaining cash in accordance
with the provisions of Article 16, and refund to Contractor the remaining
cash in the Purchase Account, if any.

 

(2)                                 Close Operating Account and Purchase Account. Close
Purchaser’s Operating Account, Transfer Accounts and Purchase Account.

 

(3)                                 Final Tax Returns.
File closing tax returns and any other documents required by applicable law.

 

(4)                                 Dissolution
of Purchaser. File such documents as are necessary to conclude Purchaser’s
legal existence.

 

93

 

(5)                                 Documentation and Payment Provided to DRMS. Provide to DRMS
and to KGP copies of all documents evidencing compliance with the provisions of
this Article 21 and payment of any Distribution Payments owed to DRMS
under Article 16.

 

(B)                               Refund
of Payment Deposit and Retention Fund.

 

Upon receipt by DRMS and KGP of all amounts
payable thereto and all documentation to be provided pursuant to the provisions
hereof, DRMS shall pay to Contractor the remaining balances, if any, of the
Payment Deposit and Retention Fund without interest.

 

(C)                               Early
Refund of Retention Fund.

 

Contractor may obtain payment from DRMS of
the balance in the Retention Fund without interest at any time before
conclusion of the Wind-Up by providing a Financial Guarantee Bond in the amount
of one million dollars ($1,000,000.00) that is issued for the remaining
Performance Period through the conclusion of the Wind-Up, and that is otherwise
acceptable to DRMS in the exercise of its sole discretion.

 

ARTICLE TWENTY-TWO. MISCELLANEOUS
PROVISIONS

 

Section 1. Binding Effect.

Subject to the restrictions on transfers and
encumbrances set forth herein, this contract shall inure to the benefit of and
be binding upon DRMS, Contractor and Purchaser, and their respective legal
representatives, successors and assigns. Whenever this contract refers to any
party, such reference shall be deemed to include a reference to the legal
representatives, successors and assigns of such party.

 

Section 2. Notices.

All notices, demands, requests, consents,
approvals, declarations, reports and other communications required hereunder
shall be in writing except as otherwise provided herein and addressed as
follows, and the same shall be given and shall be deemed to have been served
and given if (i) delivered in person, (ii) delivered by registered or certified U.S. mail, return
receipt requested, postage prepaid, (iii) deposited
into the custody of Federal Express Corporation or other reputable overnight
carrier (“Overnight Carrier”) for next Business Day delivery, (iv) telecopied, or (iv) electronically
transmitted:

 

If to DRMS:

 

Tina Aldrich

Sales Contracting Officer

DRMS-LMU

74 North Washington Avenue

Battle Creek, Michigan 49017

Telecopy No. (616) 961-5668

 

94

 

With a copy of each such material
communication to:

 

Kormendi \ Gardner Partners

1025 Connecticut Avenue, N.W.

Suite 308

Washington, D.C. 20036

 

Attention: Cyrus J. Gardner and Roger C.
Kormendi

Telecopy No. (202) 331-1151

 

If to Contractor or Purchaser to:

 

[CONTRACTOR CONTACT INFORMATION
FROM CONTRACTOR’S ITEM BID AND AWARD PAGE; MAY BE AMENDED BY CONTRACTOR
AFTER AWARD AS PROVIDED BELOW]

 

With a copy of each such material
communication to:

 

Kormendi \ Gardner Partners

1025 Connecticut Avenue, N.W.

Suite 308

Washington, D.C. 20036

 

Attention: Cyrus J. Gardner and Roger C.
Kormendi

Telecopy No. (202) 331-1151

 

or at such other address as may be substituted by giving not less than
five (5) Business Days advance written notice of such change of address in
accordance with the provisions hereof. The giving of any notice required
hereunder may be waived in writing by the party entitled to receive such
notice. Except as otherwise provided in this contract, every notice, demand,
request, consent, approval, declaration or other communication provided
pursuant to the provisions hereof shall be acknowledged by the recipient by an
original writing or photocopy thereof, by telecopy or by electronic
transmission, with date of receipt indicated thereon, and shall be deemed to
have been duly served, delivered and received on the earlier of (x) the date of such acknowledgement of receipt by an
original writing or photocopy thereof, by telecopy or by electronic
transmission, regardless of the original mode of delivery, or (y) the date on which telecopied and confirmed by telecopy
answerback, or on the second Business Day after being deposited with an
Overnight Carrier, or five (5) Business Days after being deposited in the
U.S. mail, provided, however, that Invoices, Property Referral Lists and
Purchaser’s Reports delivered electronically need not be acknowledged and shall
be deemed received, delivered and served upon such transmission. Failure or
delay in delivering any notice, demand, request, consent,

 

95

 

approval, declaration or other communication to a party or to any
persons designated above to receive a copy thereof shall in no way adversely
affect the effectiveness of such notice, demand, request, consent, approval,
declaration or other communication.

 

Section 3. Severability; Consolidation
with CV-1

(A)                               If
any provision of this contract or the application thereof to any Person or
circumstance shall be invalid or unenforceable to any extent, the remainder of
this contract and the application of such provisions to other Persons or circumstances
shall not be affected thereby, and the intent of this contract shall be
enforced to the greatest extent permitted by law, provided, however, that, if
any of the provisions of Article 5, Section 1 (“Payment Deposit”) or
the application thereof to any Person or circumstance shall be determined in a
final judgment rendered by a court or other tribunal of competent jurisdiction
to be invalid or unenforceable to any extent, DRMS may in the exercise of its
sole discretion cause Termination by notice served within thirty (30) days of
the date upon which such judgment becomes final, such Termination to be
effective five (5) Days after the date of service of such notice.

 

(B)                               In
the event that the CV-1 and CV-2 transactions or operations are consolidated in whole
or in part, the provisions of this CV-2 IFB shall supersede any conflicting
provisions of the CV-1 contract.

 

Section 4. Headings.

The headings appearing in this contract are
inserted only as a matter of convenience and in no way define, limit, construe
or describe the scope or intent of any article or section of this
contract.

 

Section 5. Survival.

The rights and obligations of the parties
under this contract shall survive for a period of six (6) years after the
completion of the Wind-Up.

 

Section 6. Waiver.

No consent or waiver, express or implied, by
any party to or of any breach or default by any other party in the performance
by such other party of its obligations under this contract shall be deemed or
construed to be a consent or waiver to or of any other breach or default in the
performance by such other party of the same or any other obligations of such
other party under this contract. Failure on the part of any party to complain
of any act or failure to act by any of the other parties or to declare any of
the other parties in default, regardless of how long such failure continues,
shall not constitute a waiver by such party of its rights hereunder.

 

Section 7. Force Majeure.

The parties shall be excused for the period
of any delay in the performance of any obligations under this contract when
prevented from performing such obligations by cause or causes beyond their
reasonable control, including, without limitation, civil commotion, war,
invasion, rebellion, hostilities, military or usurped power, sabotage,
pestilence, riots, fire or other casualty or acts of God.

 

96

 

Section 8. Use of DRMS Name; Public
Communications.

Neither Contractor nor Purchaser shall use
the name of DRMS or its logos for any marketing or other purposes without the
express prior written consent of DRMS, which consent may be withheld for any
reason whatsoever and is subject to the sole discretion of DRMS. Neither
Contractor nor Purchaser shall publicly denigrate the surplus property
disposition program of the U.S. Department of Defense or the conduct thereof by
DRMS.

 

Section 9. Tense and Gender.

Unless the context clearly indicates
otherwise, the singular shall include the plural and vice versa. Whenever the
masculine, feminine or neuter gender is used inappropriately in this contract,
this contract shall be read as if the appropriate gender had been used.

 

Section 10. Entire Agreement;
Modification.

This contract, and the materials incorporated
herein by reference, constitute the entire agreement between the parties
regarding the matters contained in this contract. If there is any inconsistency
between the terms of this contract and those of any Appendix, Schedule or Exhibit hereto,
the terms of this contract shall govern. There are no promises or other
agreements, oral or written, express or implied, between the parties other than
as set forth in this contract. No change or modification of, or waiver or
compromise under, this contract shall be valid unless it is in writing and signed
by a duly authorized representative of the party against which it is to be
enforced. Contractor understands and agrees to submit a written request for
contract modification to the SCO prior to effecting any change from that stated
in its technical proposal (including any subcontractors identified therein),
and/or Sale of Government Property-Item Bid Page, whether occurring before or
after the release of the Property. Contractor further agrees not to effect such
changes without first receiving the written approval of the SCO.

 

Section 11. Computation of Time.

In computing any period of time prescribed or
allowed by this contract, the Day of the act, event, or default from which the
designated period of time begins to run shall not be included. The last Day of
the period so computed shall be included unless it is not a Business Day, in
which event the period runs until the end of the next Business Day.

 

Section 12. Electronic Communication.

DRMS and Purchaser shall cooperate to
facilitate delivery of Property Referral Lists, Invoices and Purchaser’s
Reports to the extent reasonably practical by electronic transmission, such as
by electronic mail or file transfer, rather than by delivery of a physical
removable magnetic or optical storage medium.

 

ARTICLE TWENTY-THREE. DEFINITIONS AND
CROSS-REFERENCES TO DEFINITIONS

 

AAA Rules: As
defined in Article 20.

 

Acquisition Value: With
respect to each item of Property that is (i) identified
by National Stock Number, the unit price of such item as it is recorded in the
Federal Logistics

 

97

 

Information System at the time that data concerning the turn-in of the
Property are input into the Defense Automated Information System, or (ii) identified by Local Stock Number, the original
cost if available or the estimated replacement cost, as determined by the
generator of such item and recorded on the corresponding turn-in document
provided to DRMS by the generator. The Acquisition Value of a particular Line
Item of Property is reported on the Property Referral List as “Acquisition
Value Available,” which is the product of “Quantity Available” (measured in the
applicable unit of issue, e.g., each, box, dozen, etc.) multiplied by “Item
Unit Price.”

 

Additional NSN Data:
As defined in Article 4.

 

ADR: As defined in Article 20.

 

Affiliate Transaction:
Either (i) any sale by or on behalf of
Purchaser of goods, assets, property or services to, or purchase by or on
behalf of Purchaser of goods, assets, property or services from, an Affiliated
Party, including, without limitation, the purchase or sale of, or of any
interest in, any of the subject Property, or (ii) any
transaction on behalf of Purchaser conditioned upon or involving any action or
transaction entered into by any Affiliated Party, including, without
limitation, a transaction that directly or indirectly benefits an Affiliated
Party.

 

Affiliated Party:  (i) Contractor or any other Person that directly, or
indirectly through one or more Intermediaries, controls, is controlled by or is
under common control with, Contractor or Purchaser; or (ii) any
Person that is a director, officer, management official, employee, trustee or
general partner of, or an owner of an equity interest of one percent (1%) or
more or a beneficiary of a trust owning an equity interest of one percent (1%)
or more in, Contractor or any other Person specified in clause (i) above;
or (iii) any individual Person
related by blood, marriage or guardianship within two (2) degrees of
affinity to any individual Person specified in clauses (i) or (ii) above.
For purposes of this definition, a Person shall be presumed to have control
when such Person possesses the power, directly or indirectly, or has the power
to direct, or cause the direction of, the management or policies of a Person,
whether through the ownership of voting securities, by contract, or otherwise.
In addition, and without limiting the foregoing, an employee or subcontractor
of Purchaser or Contractor shall be deemed to be an Affiliated Party if he, she
or it derives fifty percent (50%) or more of its gross compensation or revenues
in any twelve (12) months within the Performance Period or the Wind-Up from
Purchaser or from an Affiliated Party.

 

Annual Pricing Correction:
As defined in Article 6.

 

Annual Report: As
defined in Article 8.

 

Appointed Arbitrator:
As defined in Article 20.

 

Acquisition Value Available:
As defined in Article 4.

 

Audit Adjustment: As
defined in Article 18.

 

Awarded Costs: As
defined in Article 20.

 

Base Closure: As
defined in Article 3.

 

Base Compensation:
As defined in Article 7.

 

Benchmark Performance Ratio:
As defined in Article 2.

 

Bid Category: As
defined in Part III.A.

 

Bid Deposit: As
defined in Article 1.

 

98

 

Bid Percentage: The amount, expressed as a percentage of
Acquisition Value, offered by Contractor on its Bid Schedule, Attachment III-2,
with respect to items of Property in a particular Product Subpool Bid Category.

 

Bid Price: As
defined in Part III.B.

 

Bid Schedule Pool: As
defined in Part III.B

 

BRAC: Base
Realignment and Closure Commission.

 

Breaching Party: As
defined in Article 19.

 

Business Day: Any
Day that is not a Saturday, a Sunday or a holiday observed by the federal
government. Federal holidays presently are: New Year’s Day, Martin Luther King, Jr.
Day, President’s Day, Memorial Day, Independence Day, Labor Day, Columbus Day,
Veteran’s Day, Thanksgiving Day and Christmas Day.

 

Closing Report: As defined
in Article 8.

 

CV Performance Ratio: As
defined in Article 2.

 

Commingled R/T/D: As
defined in Article 3.

 

Compliance Review Firm: As defined in Article 17.

 

Compliance Review: As
defined in Article 17.

 

Contractor: The
bidder that is selected for the award of the contract.

 

Contractor Distribution Payment: As
defined in Article 16.

 

Contractor Indirect Cost: Each
cost that is not a Direct Cost and is to be paid solely by Contractor.

 

Contractor Insolvency Retention Payment: As
defined in Article 15.

 

Contractor Systems and Software: As
defined in Article 12.

 

Contractor’s Purchase Price: With
respect to a particular item of Property, the product of such item’s
Acquisition Value multiplied by the applicable Bid Percentage.

 

Cure Period: As
defined in Article 19.

 

CV-1: That certain
sale contract awarded by DRMS on July 14, 1998 between DRMS as seller, and
Levy / Latham LLC as “Contractor” and Levy / Latham Global LLC as “Purchaser”
and buyer.

 

CV-1 Items: All
equipment, supplies, materials and other items declared excess to the needs of
the Department of Defense and surplus to the needs of the Federal Government,
and received by DRMS on its accountable record, with a DRMS Hazardous Materials
Code other than “W” or “M,” that have not been removed by Reutilization/Transfer/Donation
(R/T/D) claimants as of fifteen (15) Days after a particular such item’s End of
Screening Date at locations within the Continental United States and identified
by the combinations of DRMS Demilitarization Codes and FSCs that are designated
as “CLIN 002” in Table IV-1 in Part IV, “Item Description.”

 

CV-1 Property Referral Date: As
defined in Article 1.

 

CV-2 Items: All equipment, supplies, materials and other items
declared excess to the needs of the Department of Defense and surplus to the
needs of the Federal Government, and received by DRMS on its accountable
record, with a DRMS Hazardous Materials Code other than “W” or “M,” that have
not been removed by Reutilization/Transfer/Donation (R/T/D) claimants as of
fifteen (15) Days after a particular such item’s End of Screening Date at
locations in the United States, Guam and Puerto Rico and identified by the
combinations of DRMS Demilitarization Codes and FSCs that are designated as
“CLIN 001” in Table IV-1 in Part IV, “Item Description.”

 

99

 

Day:  A calendar day.

 

Decision: As defined
in Article 20.

 

Delivery Point: As
defined in Article 3.

 

Demilitarization Code (DEMIL Code): A
single character alphabetical code assigned to each item of Property by federal
procurement authorities that signifies the applicability of particular
demilitarization, mutilation or trade security (export) control requirements.

 

Department of Defense Activity Account Code: As
defined in Article 4.

 

Delivery: As defined
in Article 3.

 

Designated Representative: As
defined in Article 20.

 

Direct Cost: As
defined in Article 9.

 

Discrepancy: As
defined in Article 6.

 

Disposal Turn in Document Number: As
defined in Article 4.

 

Dispute: As defined
in Article 20.

 

Distribution: A
Distribution Payment as adjusted pursuant to the provisions of Article 16.

 

Distribution Amount: As
defined in Article 16.

 

Distribution Payment: As
defined in Article 16.

 

DLA: Defense
Logistics Agency.

 

DLA Depot: As
defined in Article 3.

 

DoD: U.S. Department
of Defense

 

Downgrade Norm: As
defined in Article 6.

 

Downgrade Rate Subcategory: As
defined in Article 6.

 

Downgrade Rate: As
defined in Article 6.

 

DRMO: Defense Reutilization
and Marketing Office.

 

DRMO Name: As
defined in Article 4.

 

DRMS Warehouse: As
defined in Article 3.

 

DRMO RIC and RIC Suffix: As
defined in Article 4.

 

ECLR: The Estimated
Contingent Liabilities Reserve, as defined in Article 15.

 

End of Screening Date: The
last day of the forty-two (42) day minimum period prescribed by applicable
federal law for the screening by potential R/T/D claimants of items turned in
to DRMS by generators.

 

End Use Certificate (EUC): Either
a DRMS Form 2 or a DLA Form 1822 (copies of which forms are attached
as Attachment VI.5.B).

 

Estimated Contingent Liabilities Reserve: As
defined in Article 15.

 

EUC: End Use
Certificate; either a DRMS Form 2 or a DLA Form 1822 (copies of which
forms are attached as Attachment VI.5.B).

 

Federal Supply Classification (FSC): The
federal government’s system of identifying and categorizing items of tangible
personal property; FSCs that pertain to the Property are set forth at Table IV-1
in Part IV, “Item Description.”

 

Fidelity Bond: As
defined in Article 11.

 

Fiscal Year: For a
particular calendar year, the twelve (12) calendar month period concluding on
30 September of such year.

 

Flight Safety Critical Aircraft Parts
(FSCAP): Any aircraft part, assembly, or installation
containing a critical characteristic whose failure, malfunction, or absence may
cause a

 

100

 

catastrophic failure resulting in loss or serious damage to the
aircraft or an uncommanded engine shutdown resulting in an unsafe condition.

 

FSC: Federal Supply
Classification; FSCs that pertain to the Property are set forth at Table IV-1
in Part IV, “Item Description.”

 

Further Review: As
defined in Article 17.

 

GAAP: As defined in Article 8.

 

Gross DRMS Distributions: As
defined in Article 16.

 

Gross Proceeds: With
respect to a particular period of time, all revenues obtained by Purchaser from
any source whatsoever excepting (i) Purchase
Advances and (ii) Working Capital
Advances, but including without limitation all revenues from the sale or rental
of Property, buyers’ premiums and insurance proceeds.

 

Independent Auditor: Independent
national accounting firm engaged by Purchaser to audit Purchaser’s Records.

 

Ineligible Disbursement: As
defined in Article 18.

 

Ineligible Disposition: As
defined in Article 18.

 

Inventory Item Name: As
defined in Article 4.

 

Inventory Status Report: As
defined in Article 8.

 

Invoice: As defined
in Article 5.

 

Item Unit of Issue: As
defined in Article 4.

 

Item Unit Price: As
defined in Article 4.

 

Key Person: Each
individual who is identified as such in Contractor’s technical proposal.

 

Line Item: As
defined in Article 4.

 

Local Stock Number: As
defined in Article 4.

 

Manual Upgrade Records: As
defined in Article 6.

 

Material Breach: As
defined in Article 19.

 

Monthly Distribution Statement: As
defined in Article 16; see Attachment VI.16.1.

 

Monthly Report: As
defined in Article 8.

 

National Item Identification Number: As
defined in Article 4.

 

National Stock Number [or] Local Stock
Number: As defined in Article 4.

 

Net DRMS Distributions: As defined
in Article 16.

 

Net Proceeds: With
respect to a particular period of time, the amount of Gross Proceeds less the
amount of Direct Costs.

 

Neutral Arbitrator: As
defined in Article 20.

 

Non-Breaching Party: As
defined in Article 19.

 

Notice of Audit Adjustment: As
defined in Article 18.

 

On-Site Processing: As
defined in Article 3.

 

Operating Account: As
defined in Article 13.

 

Operating Cash Balance: As defined in Article 16.

 

Operating Net Worth: As
defined in Article 16.

 

Other Systems and Software: As
defined in Article 3.

 

Overnight Carrier: As
defined in Article 22.

 

Panel: As defined in
Article 20.

 

Payment Deposit: As
defined in Article 5.

 

Payroll Account: As
defined in Article 13.

 

P-Card Account: As
defined in Article 13.

 

101

 

Performance Period: As
defined in Article 2.

 

Performance Ratio: As
defined in Article 2.

 

Performance Ratio Property: As
defined in Article 2.

 

Permitted Affiliate Transaction: As
defined in Article 9; see Schedule V1.7.3(C).

 

Person: Either (i) an individual, or (ii) a
business entity of any form of organization whatsoever.

 

Phase-In Period: As
defined in Article 3.

 

Phase-In Schedule: As
defined in Article 3.

 

Post-Receipt Downgrade: As
defined in Part II, Section B.

 

Post-Receipt Upgrade: As
defined in Part II, Section B.

 

Pre-Payment: As
defined in Article 5.

 

Pricing Correction: As
defined in Article 6.

 

Pricing Discrepancy Benchmark: As
defined in Article 6.

 

Pricing Adjustment Ratio: As
defined in Article 5.

 

Product Subpool: As
defined in Part III.A.

 

Product Subpool Acquisition Value: As
defined in Part III.B.

 

Product Subpool Bid Category: As
defined in Part III.A.

 

Product Subpool Weight: As
defined in Part III.A.

 

Property: All
equipment, supplies, materials and other items declared excess to the needs of
the Department of Defense and surplus to the needs of the Federal Government,
and received by DRMS on its accountable record, with a DRMS Hazardous Materials
Code other than “W” or “M,” that have not been removed by
Reutilization/Transfer/Donation (R/T/D) claimants as of fifteen (15) Days after
a particular such item’s End of Screening Date at locations within the United
States, Guam and Puerto Rico, and (i) before
the CV-1 Property Referral Date, identified by the combinations of DRMS
Demilitarization Codes and FSCs that are designated as “CV-2 Items” (CLIN 001)
in Table IV-1 in Part IV, “Item Description,” or (ii) as of the CV-1 Property Referral Date and thereafter, all such
items identified by the combinations of DRMS Demilitarization Codes and FSCs
that are designated as either “CV-1 Items” (CLIN 002) or “CV-2 Items” (CLIN
001) in such Table IV-1. At all times the Property includes pallets, boxes,
packing material and rigging for such items, provided however, that if the SCO
so requests, pallets shall be returned to a particular DRMO.

 

Property Referral List: As
defined in Article 3.

 

Property Storage Location: As
defined in Article 4.

 

Purchase Transfer: As
defined in Article 14.

 

Purchaser: As
defined in Article 1.

 

Purchaser Liabilities: The
total of Purchaser’s liabilities that are determined pursuant to GAAP exclusive
of unrepaid Working Capital Advances and Purchase Advances.

 

Purchaser Systems and Software: As defined in Article 12.

 

Purchaser Warehouse: As defined in Article 3

 

Purchaser’s Dedicated Storage: As
defined in Article 3.

 

Purchaser’s Reports: As
defined in Article 8.

 

Quantity Available: As
defined in Article 4.

 

Quarterly Report: As
defined in Article 8.

 

RCP Property: Property
at a DLA Depot and designated as such by DRMS.

 

Records: As defined
in Article 8.

 

102

 

Remaining Assets: As
defined in Article 21.

 

Required Retention Fund Balance: As
defined in Article 15.

 

Response: As defined
in Article 20.

 

Restricted Access Facility: Due
to host installation restrictions or for other reasons, a particular DRMO or
DRMS Warehouse may occasionally and temporarily be unable to provide storage as
provided in Section 3 of Article 3 or access as provided in Subsection (1) of
Section 4(A) of Article 3. Any such facility that is not
reasonably able to provide such storage or access other than occasionally and
temporarily shall be deemed a “Restricted Access Facility.”

 

Retention Fund: As
defined in Article 15.

 

Retention Rate: As
defined in Article 15.

 

Retention Trigger Month: As
defined in Article 15.

 

Retention Payment: As
defined in Article 15.

 

R/T/D: The
reutilization, transfer and donation of surplus military property that is
prescribed by applicable federal law.

 

Sale by Reference: As
defined in Pan VI, “Terms and Conditions of Sale;” see Attachment VI.

 

Sales Contracting Officer: The
individual person accepting the bid in whole or in part on behalf of the
Government, and any other officer or civilian employee who is a properly
designated Sales Contracting Officer, including, except as otherwise provided
in this contract, the authorized representative of a Sales Contracting Officer
acting within the limits of the representative’s authority.

 

Sales Deposit Account: As defined in Article 13.

 

SCO: As defined in Article 1.

 

Scrap: With respect
to a particular item of Property, a designation assigned by or with the
approval of DRMS personnel meaning that the item has no value other than for
its material content.

 

Seller Indirect Cost: As
defined in Article 9.

 

Segregated R/T/D: As
defined in Article 3.

 

Site Location Code: As
defined in Article 4.

 

Special Situation Locations: Locations
that are designated as Delivery Points by DRMS in the exercise of its sole
discretion and that are neither a DRMO, a DRMS Warehouse, nor a Purchaser
Warehouse.

 

Storage Location Code: As defined in Article 4.

 

Termination: As
defined in Article 19.

 

Third Party Software: As
defined in Article 12.

 

Transfer Account: As defined
in Article 13.

 

Upgrade Upon Receipt: As
defined in Article 6.

 

Useable: With
respect to a particular item of Property, a designation assigned by or with the
approval of DRMS personnel meaning that the item has value in excess of that of
the item’s material content.

 

User Documentation: As
defined in Article 12.

 

Wind-Up Commencement Date: As
defined in Article 21.

 

Working Capital Advance: As defined
in Article 13.

 

Working Capital Advance Balance: As
defined in Article 13.

 

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104

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