Decree No. 164 / 1971 Coll.

Decree of the Federal Price Office and the Federal Ministry of Technical and Investment Development on the pricing of research and development works

Valid Effective from 01.01.1972
164
DECLARATION
Federal Price Office and Federal Ministry for Technical and Investment Development
of 24 November 1971
on the pricing of research and development work
The Federal Price Office, together with the Federal Ministry of Technical and Investment Development, provides, on the basis of § 47 (a) of Act No. 133 / 1970 Coll., on the competence of federal ministries:
§ 1
(1) The provisions of this Decree apply to the pricing of:
(a) addressing research and development tasks of scientific and technological development plans;
(b) other research and development work and performance of economic and technical focus, which are the nature of technical development and are carried out by socialist organisations. *)
(2) The provisions of this Decree do not apply to the tasks of the basic research plan drawn up by the Czechoslovak Academy of Sciences (Slovak Academy of Sciences), with the exception of those resulting from state technical development programmes and those addressed by other departments in the framework of state basic research programmes.
§ 2
Price category
The prices for dealing with tasks and carrying out the work referred to in Paragraph 1 (1) shall be classified in the category of capped prices.
§ 3
Method of pricing
(1) The prices for solutions and works referred to in Paragraph 1 (1) (hereinafter referred to as "tasks") shall be established on the basis of a preliminary calculation * *) before the task is included in the science and technology development plan or before the conclusion of an economic contract.
(2) The preliminary calculation shall be compiled either in the breakdown prescribed by the type or sector calculation formula *) or using hourly settlement rates. These rates shall be determined by the central sector authority, directly managed by the central authorities, budgetary, contribution and economic organisations; the other organisations shall be determined by the superior organisation.
The assessment of the preliminary calculation for the tasks included in the science and technology development plan is part of the opposition proceedings.
(3) A profit premium of:
25% of processing costs * * *) for economic organisations,
15% of processing costs for contributory organisations,
5% of processing costs in budgetary organisations only for tasks beyond the plan (overplanned tasks). For the planned tasks, the profit margin in budgetary organisations is not calculated.
(4) The price established on the basis of the preliminary calculation referred to in paragraph 1 is specified in a detailed price calculation
a) before starting each stage of the solution (research, development, preparation of serial production),
(b) when changing the substantive scope of the task, which changes the cost of the solution by more than 3%.
The precision resulting in an increase in price can only be made if the customer agrees with it.
(5) The fixed (refined) price shall be verified on completion of the work using the resulting calculation for all tasks in excess of 1 million CZK. The resulting calculations used for the verification of the price will be drawn up on the basis of accounting or evidence of operational records and on the basis of indirect costs and profits, at the rate applicable during the price fixing period.
(6) If the actual costs verified by the resulting calculation are plus the profit premium referred to in Article 3 (3) against the fixed (refined) price
(a) less than 5%, the customer returns the difference between the verified cost plus profit (using hourly clearing rates the difference between the actual cost of one-piece material, the co-operation and the number of hours worked) and the fixed price reduced by 5%.
In the case of tasks financed by the State budget, this difference shall be refunded through a superior central authority;
(b) higher, the price does not increase.
(7) Furthermore, the amount of the price after verification should be:
(a) may increase by a maximum of 10% if the results of the solution significantly exceed the results foreseen by the planning act or on the basis of the economic contract concluded;
(b) where the results of the solution are below those foreseen in the planning act or in the economic contract. In the event of failure of the solver's guilt, the price shall be reduced by at least the amount of the calculated profit. The price reduction shall not be made if the final opposition proceedings prove that the final results of the solution, even if different from the objectives set, do not decrease the level and value of the solution.
(8) The detailed conditions for adjusting the price referred to in paragraph 7 shall be laid down by the planning act or on the basis of it by a closed economic contract.
(9) The evaluation of the results referred to in paragraph 7 shall be a binding part of the final assessment by the Opponent Board as a basis for the decision of the competent authority or organisation on the final price.
(10) For the tasks of state and ministerial plans for the development of science and technology financed from state budgets, the total volume of prices shall not exceed the overall limit set out in the relevant plans and budgets.
(11) The target premiums or exceptional remuneration levied and granted under special rules * * are not included in the price.
§ 4
Costs of budgetary organisations
The costs of budgetary organisations to deal with research and development tasks, if not invoiced, shall not be included in the price. However, they shall be presented in the proposal as the accounting value of the envisaged but uninvoiced costs of budgetary organisations. These costs must be considered in calculating the effectiveness of the solution.
§ 5
Price management
(1) The proposal to set the price for dealing with tasks under Paragraph 1 (1) (a) shall be drawn up by the solver. The proposal shall contain:
(a) the calculation of the proposed price with detailed supporting documents pursuant to Article 3 (1) to (3);
(b) the opinion of the developer (s) of the task on the proposed price;
(c) the design of the planning list (*);
(d) a detailed analysis of the expected economic and non-economic effects of the solution, including the calculation of efficiency. For the tasks for which the solution results, data on the expected price limit of the products;
(e) the time-frame for dealing with binding deadlines.
(2) The proposal for a task-solving award shall be submitted by the investigator to the central authority supervisor, with the exception of the tasks of the branch and corporate and technical and economic focus referred to in Article 1 (1) (b). The proposal to set prices shall be submitted together with the proposal to include the task in the Science and Technology Development Plan and its solution.
(3) The mandated central authority shall refer the proposal to the opposing council * * *), which shall discuss it within the time limit set for the initial opposition proceedings, together with the proposal to resolve the task. In its opinion on the factual aspect of the task, the Opponent Board shall deliver an opinion on the proposed price and, if the solution is to result in products, also on the upper limit which the price of the product in terms of its social efficiency must not exceed and on the price limit established in accordance with the applicable price regulation for the products in question. The Opponent Board shall forward its recommendations to the Central Authority to the attending investigator.
(4) The central authority senior to the investigator shall examine the recommendation of the opponent board and submit the proposal within 20 days of receipt of its opinion to the Federal Ministry of Technical and Investment Development or to the Ministry of Construction and Technology of the CSSR or to the Ministry of Construction and Technology of the SSR for approval (§ 6 (1) to (3), or sets the price in its scope (§ 6 (4)).
(5) The provisions of the preceding paragraphs of this paragraph shall apply mutatis mutandis to the proposal for the price of the tasks referred to in Paragraph 1 (1) (b).
§ 6
Scope of price fixing
(1) The prices of the tasks of the State Plan for the Development of Science and Technology (hereinafter referred to as "State tasks") from state technical development programmes and state tasks outside the sectors covered by the federal central authorities are determined by the Federal Ministry for Technical and Investment Development, as a general rule on a proposal from the central authority superior to the investigator. The prices of other state tasks from state technical development programmes falling within the sectors falling within the competence of the national central authorities shall be determined by the competent Ministry of Construction and Technology of the CSSR or SSR in agreement with the Federal Ministry of Technical and Investment Development also, as a general rule, on a proposal from the central authority superior to the investigator.
(2) The prices of state tasks outside state programmes falling within the sectors covered by the national central authorities are determined by the competent Ministry of Construction and Technology of the Czech Republic or the SSR, as a rule on a proposal from the central authority of the investigator.
(3) The prices of the tasks of the ministerial (sectoral) science and technology development plan shall be determined by the central authority superior to the investigator.
(4) The prices of sectoral and corporate tasks as well as those referred to in Article 1 (1) (b) are determined by the investigator.
(5) Federal Ministry of Technical and Investment Development (Ministry of Construction and Technology of the Czech Republic or SSR) event. the central authority referred to in paragraph 3 shall determine the price of the solution at the same time as the decision to resolve the task.
(6) The price adjustment provided for in Article 3 (4) to (7) shall be decided by the authority empowered to determine it.
(7) The detailed conditions under which the prices laid down are applicable are indicated in the planning act or in the concluded economic contract.
§ 7
Transitional provision
During the period of validity of the price increase ban under Decree No. 168 / 1969 Coll., the items of the calculation formula are calculated as follows:
(a) material costs at current or registered prices;
(b) unit wages at the level of the applicable wage rates;
(c) overheads at the rates planned at 1.1.1969. The rates shall be determined, where the organisation is not determined, by the central authority, by the budgetary, contribution and economic organisations directly managed by the central authorities; other organisations shall be defined by a superior organisation;
(d) a profit premium up to a maximum of the amount referred to in Article 3 (3).
§ 8
Final provisions
(1) Disputes on the price of dealing with the tasks of the ministerial plan for the development of science and technology, given the specific nature of the disputes, are decided by the Federal Ministry of Technical and Investment Development, or by the Ministry of Construction and Technology of the CSSR or the Ministry of Construction and Technology of the SSR. Disputes on the prices of other tasks shall be decided by the authorities superior to the investigator after consultation with the authorities superior to the customer (realtor). This provision shall not apply to contractual disputes whose decisions belong to the arbitration authorities.
(2) Exemptions from the provisions of this decree are permitted by the Federal Price Office, together with the Federal Ministry for Technical and Investment Development.
(3) Cancelled
(a) in § 12 (g) of Decree No. 74 / 1969 Coll. and 89 / 1969 Coll. "activities related to the solution of research and development tasks (except for complex and separate main tasks of the state plan of research and development work which are included in the maximum prices),"
(b) the inclusion in the free prices provided for in Article 12 (g) of the said Decree for "performance of economic and technical focus carried out by socialist organisations" where such performance is in the nature of technical development,
(c) in the List of Products and Services listed in the category of free prices as an annex to the Decree of the Czech Price Office No. 1 / 1970 Ú. v. ČSR or the modification of the Slovak Price Office No. 15 / 1969 Ú. v. SSR "activities related to the solution of research and development tasks (except for complex and separate tasks of the state plan of research and development works),"
(d) classification in the free prices according to the List of Products and Services listed in the category of free prices as an annex to the Decree of the Czech Price Office No. 1 / 1970 Ú. v. ČSR, or modification of the Slovak Price Office No. 15 / 1969 Ú. v. SSR "performance of economic and technical focus carried out by socialist organisations, unless their prices are set out in the pricing of engineering activities or project work" if such performances are technical development.
(4) This decree shall take effect on 1 January 1972. Prices established under the current rules shall remain in force until changes in tasks affecting the prices determined have occurred.
Minister for Management
Federal Price Office:
Dr Rendek, CSc., v. r.
Minister for CSSR
for technical and investment development:
Ing.
*) § 12 (g) of Decree No. 74 / 1969 Coll. and No. 89 / 1969 Coll.
*) § 20 (2) of the ČSSR Decree No. 153 / 1971 Coll., on the Information System of Organisations.
* *) Government Decree No. 96 / 1966 Coll.
* * *) Total own costs less costs of one-piece material, purchased parts and co-operations.
* *) § 13 of Decree No. 141 / 1971 Coll.
* *) According to methodological guidelines for the development of draft implementation plans for the development of science and technology.
* * *) Opponent management guidelines for the tasks of State Science and Technology Development Plan (FMTIR No 11 713 / IV-1 / 1971).

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Regulation Information

CitationDecree of the Federal Price Office and the Federal Ministry of Technical and Investment Development No. 164 / 1971 Coll., on the pricing of research and development works
Regulation Type-
Author-
CollectionCode of Laws
Date of Promulgation28.12.1971
Effective from01.01.1972
Effective until-
Status Valid
The regulation text is for informational purposes only.
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