DEFFORM 653A
Edition 03/06
Specimen Cost Certificate to support a Cost Statement Prepared Pursuant to DEFCON 653A
Contractor……………………………………………………………
Relevant Pricing Unit…………………………………………………………….
Contract No………………………………………….………………….
- We certify that the costs, excluding profit, incurred on the above contract, as at …………..…. , amount to £……………made up as shown in the attached cost statement. (See Appendix A for an example layout and the Completion Notes at Appendix B)
2.The period of work was from…………………………..to………………………….
3.The costs have been computed in accordance with the Questionnaire on Method of Allocation of Costs (and any amendments to it appropriate to the period of work) agreed with the Authority.
List of Subcontractors subject to the Appendices to SC 53 or DEFCON 653
[Section 4 is to be deleted if the firm is not the main contractor to the Department for the contract covered by this certificate.]
- Either
a.The costs do not include costs relating to any subcontract or any order for bought-out supplies the individual value of which exceeds £100,000.
Or
b.The costs include costs relating to the following subcontracts or orders for bought-out supplies the individual value of which exceeds £100,000 (attach a list where numerous):
Name of Subcontractor or supplier / Amount £...... / ......
...... / ......
5.Either
a.No direct charges based on estimates are included in the costs.
Or
b.Direct charges based on estimates are included in the costs as follows:—
Brief Details / Value £...... / ......
...... / ......
6.Either
a.The costs do not include any items of a special or unusual nature (eg of a capital nature).
Or
b.The costs include the following items of a special or unusual nature:
Particulars / Amount £...... / ......
...... / ......
7. Rates and additives and their status have been included as detailed in the attached cost statement.
8.Allowance has been made for all credits due to the Authority under the Contract and no charge is included for items procured or manufactured against, and charged to, another contract.
9.Special jigs tools and test equipment included in the costs were acquired for the special purpose of the Contract and properly authorised in accordance with the conditions of the Contract. No grant from HM Government funds has been made or claimed in respect of those items.
10.All Forms 640/P2P Delivery Labels applicable to the Contract are available for inspection.
11.To the best of our knowledge and belief these costs have been reasonably and properly incurred or estimated to be incurred in accordance with the Contract and they are in agreement with our books, accounts, records and other documents.
Signed…………………………………………………….Date: ………………….
Finance Director (or other signatory authorised by the Authority)
Appendix A
COST STATEMENT – For Reporting Ascertained Costs
(SAMPLE ONLY - Specific Order (job) Costing System)
eg Year(s)Year 1Year 2Year 3Year 4Final Year(s)Total
Direct Labour Hours(note1)
-rate group a
-rate group b
-rate group c, etc
Recovery Rates
Direct Labour cost rates (£/hr)
-rate group a
-rate group b
-rate group c, etc
Overhead rates (as appropriate for costing system)
Material
Subcontract
Labour
COST STATEMENT – For Reporting Ascertained Costs
(SAMPLE ONLY– Specific Order (job) Costing System (continued))
eg Year(s)Year 1Year 2Year 3Year 4Final Year(s)Total
Prime Costs
Material
Subcontract
Direct Labour
Estimates to completion (final year(s) only)
Overhead costs (as appropriate for costing system) eg
Material
Subcontract
Labour
Estimates to completion (final year(s) only)
Sub-Total
G&A on total costs excluding estimates to completion
G&A on total estimates to completion
TOTAL
Status of rates and additivesYear 1Year 2Year 3Year 4Final Year(s)Total
Based on :ActualActualActualActualActual
or Estimateor Estimateor Estimateor EstimateEstimate
or Trend
Status with MODAgreedorAgreedorAgreedorAgreedorAgreed or
not agreednot agreednot agreednot agreednot agreed
Notes:-
- Where more than one recovery rate is used eg Manufacturing, Design, Assembly figures for each recovery rate should be included in the table above.
- Final Year(s) relate to the period of the final cost statement.
DEFFORM 653A
Edition 03/06
Appendix B
Completion Notes for Cost Statement Prepared Pursuant to DEFCON 653A
1.A specimen layout for the Cost Statement is shown at Appendix A; the following essential features should be incorporated:-
a.Costs should be summarised separately against each of the Contractor’s financial years and separately under each function (e.g. design, manufacture, tooling) with each element of cost (e.g. materials, subcontracts, direct labour and overheads) shown against each function.
b.The total cost need not be analysed into items (e.g. work packages) of the Contract unless by agreement with the Authority and in these circumstances only where practicable and as the Authority may reasonably require.
c.Where there are differential overhead rates, they should be quoted and the direct labour (or other base figures according to the agreed method of overhead recovery) together with the related overheads should be shown for each separate function or department so that, in conjunction with the reference made to overhead rates in the certificate of costs, the calculation of the overheads may readily be followed. Where departmental labour and overheads are expressed as hourly rates they should be detailed in the Cost Statement.
d.Where agreement has been reached with the Authority’s Commercial Officer and the Pricing and Forecasting Group for the use of a standard costing system in the calculation of Contract costs then Section 4 of the Certificate is to be deleted or amended if applicable and a Cost Statement in a form similar to that illustrated in Appendix A (for Standard Costing Systems) of DEFFORM 648A is to be used.
2.If a special method of recovery of the cost of special jigs tools and test equipment has been agreed and authorised for application to the Contract, the basis of recovery should be stated.
3.In the case of interim cost statements, the amount shown should not include the value of commitments entered into for which expenditure has not been incurred.
4.In the case of final certificates, these should include the value of estimates to completion with supporting assumptions.