10. Preparation Instructions
For the purpose of this Rework./Repair and Scrap Cost Report, the following criteria are applicableL
a. The costs associated with rework and the costs associated with repair shall be combined into a total rework/repair cos.
b. Scrap which is generated as a result of contractually required destructive testing or as a result of normal production operations not involving nonconforming material (e.g. cutting, trimming, etc.) shall not be included in scrap cost.
c. Rework/repair and scrap costs do not apply to Government Furnished Material (GFM) which is defective upon receipt. These costs shall apply to GFM which is required to be reworked/repaired or scrapped after receipt due to contractor's activities.