ATTACHMENT RENTAL RATES

The following rental rates are the rental rates referred to in the clause of this contract entitled "Use and Charges":

(i) For land and land preparation, buildings, building installations, and land installations other than those items specified in (ii) below, a fair and reasonable rental shall be established, based on sound commercial practice. (ii) For machinery and production equipment of the type covered by the following classes of Production Equipments:

FEDERAL SUPPLY CLASSIFICATION CODE NUMBERS AND DESCRIPTION

3411 through 3419, Machine Tools.

3441 through 3449, Secondary Metalforming Machinery.

The following rates shall apply:

The age of each item of the Facilities shall be based on the year in which it was manufactured, with an annual birthday on 1 January of each year thereafter. On 1 January following the date of manufacture, the item shall be considered one year old; and on each succeeding January 1st, it shall become one year older. For example, if an item of equipment is manufactured on 15 July 1958, it will be considered to be one year old on 1 January 1959, two years old on 1 January 1960, three years old on 1 January 1961, and so forth. The item of equipment will be considered "over two years old" on and after 1 January 1960, "over six years old" on and after 1 January 1964, and "over ten years old" on and after 1 January 1968.

(iii) For personal property and equipment not covered in (i) or (ii) above, a rental shall be established at not less than the prevailing commercial rate, if any; or, in the absence of such rate, not less than two percent (2%) per month for electronic test equipment and automotive equip ment; and not less than one percent (1%) per month for all other property and equipment.

APPENDIX 6

EXAMPLES OF ACTUAL RENTAL COMPUTATIONS FOR MACHINE TOOLS

1. LOOKEED AIRCRAFT CORP.

The rental is computed from the ratio of commercial direct labor hours to the total direct labor hours with the respective contractor organizations. The rental credit is computed by multipling the acquisition cost of jointly used equipment by the contract rate (ASPR 7–702.12, April 1968), and multiplying this result by a fraction whose numerator is the direct labor hours expended on Government work and whose donominator is the sum of these hours and the direct labor hours expended on non-Government work.

2. GENERAL ELECTRIC CO. RENTAL COMPUTATION

General Electric Aircraft Co. Evendale, Ohio:

Tape control omnimil, 483868; PEC 3417.

Acquisition cost, $363,006.

Rental rate per month, 3 percent.

Maximum monthly rental, $10,890.18 less military credit, $10,443.68 equals rental payment for March, $446.50.

Rental credit calculated for March 69:

Total expended for direct labor of Government work, $4,657,568.
Total expended for direct labor of Government and non-Government

work, $4,852,070 equals 95.9 percent.

ADJUSTMENTS FOR THE PERIOD July 1, 1968 September 30, 1968

$(1,325.51)

ADJUSTMENTS FOR THE PERIOD April 1, 1968 June 30, 1968

$(1,233.78)

ADJUSTMENTS FOR THE PERIOD January 1, 1968 March 31, 1968

1. Under the formula 3 = 1 2 contained in section H, Pozegrach (b)(1) of Contract NOOO19-68-0-9046, the ancunt of rent applicablo to the quarter ended 31 December 1968 is:

(2) $1,229,720.00 X $41.203.850.50 cr 1.163.94475

$43,635,489.53

(3)

Total Rent Payablo

$65.765.25

The following data and computation represents a machine tool rental computation for Western Electric under Facilities Contract DA-01-009-ORD-918(Z).

*Note: Western Electric is presently only renting 39 Items, the majority not being machine tools, for incidental commercial use on a noninterference basis. The total acquisition value of this equipment plus transportation and installation cost is $158,536. The contract provides for a rental of 1% based on a maximum commercial usage not to exceed 25%. It also provides a minimum monthly rental of 1/10 of 1% if the equipment is available for commercial use 10% or less. Under this rental agreement the contractor pays a minimum monthly rental whether or not he uses the equipment. For use in excess of 10% but not exceeding 25% the following formula is used to determine rental per month: