ARTICLE VI - RECORDS AND AUDITS

The ENGINEER shall maintain books, accounts, records, documents and other evidence pertaining to the costs and expenses allowable under this Agreement in accordance with generally accepted accounting practices. The ENGINEER shall organize the accounts pertaining to these costs and expenses in accordance with the Project Code of Accounts to provide segregation in accordance with the Federal Energy Regulatory Commission (FERC) Uniform System of Accounts, prescribed for utilities and licenses, dated January 1, 1970, and in such detail as to reflect all net actual direct costs (including applicable credits) incurred for labor, materials, equipment, services, supplies, payroll/salary related costs, application of overhead rates and any and all other costs and expenses of whatever nature for which payment is claimed under the provisions of this AGREEMENT. ENGINEER'S annually published Schedule of Computer and Major Equipment Rates and its annually published Schedule of Materials Engineering Laboratory Rates shall be applied as published, but excluded from audit as to cost composition. Similarly, cost composition of the Overhead Rates fixed in Article IV Subsection A.2 and A.3 shall not be subject to audit. All such books of account and records required to be maintained by this AGREEMENT shall be subject to inspection and audit by representatives of the OWNER and of the Bonneville Power Administration at all reasonable times, and the ENGINEER shall afford the proper facilities for such inspection and audit. Such books of account and records may be copied by OWNER where necessary to conduct or document an audit, provided, however, that any such copies shall be protected by OWNER as "proprietary data" under Article XXV.

The ENGINEER shall preserve and make available all such books of account for a period of three (3) years after final payment under this AGREEMENT.

ARTICLE VII - CHANGES AND FEE ADJUSTMENTS

A. BASELINE

The parties agree that the baseline upon which the fees are based is that contained in the 1982 Plant Construction/Design Cost Estimates At Completion for Projects Nos. 3 and 5 which includes schedule and contingency; plus normally anticipated design, procurement and construction activities for the Projects. The parties further agree that the goal of achievement of Commercial Operation within that Budget and schedule is best achieved by an incentive fee program with no provision for additional fee except for "changes".

WASHINGTON PUBLIC POWER SAFELY SYSTEM

RICHLAND, WASHINGTON

AGREEMENT

THIS AGREEMENT, made and entered into by and between Washington Public Power Supply System, a municipal corporation, 3000 George Washington Way, Richland, Washington, hereinafter called the "OWNER", and Mercury Company of Norwood, Incorporated, a corporation, with its principal offices located at 10 Burke Drive, in the City of Brockton, State of Massachusetts, hereinafter called the "CONTRACTOR".

WITNESSETH

WHEREAS, the OWNER has caused the preparation of certain Contract Documents designated "Bidding Documents and Plans and Specifications, Control Boards and Cabinets, Washington Public Power Supply System Nuclear Projects 3 and 5, Conformed Contract No. 3240-59, dated July 26, 1979."

WHEREAS, the OWNER has advertised for bids from Bidders of the specified equipment, and has received said bids, has analyzed the same, and has duly given Notice of Award and awarded a Contract to the Contractor as herein set forth and as stated more in detail in the Contract Documents, all of which Contract Documents are attached hereto and made a part of hereof and which constitute the whole contract between OWNER and CONTRACTOR.

NOW, THEREFORE, it is hereby agreed that:

(a) CONTRACTOR shall furnish all requirements of the Contract in the manner specified in the Contract Documents.

(b) OWNER shall pay to CONTRACTOR in accordance with schedule of prices at the time and in the manner and upon the

A-1

III. BACKGROUND (Continued)

A. Sequence of Events (Continued) 6. Contractor provided cost summary in WZUE-82-012 dated December 7, 1982 (Attachment 7). The letter gives the non recurring cost (and its breakdown) from which the Contractor estimated to obtain the Contract Price. 7. Additional information from Contractor via WZUE-83-001 dated February 3, 1983 (Attachment 8) supplementing the December 7, 1982 proposal. 8. Additional information from Contractor via WZUE-83-004 dated February 22, 1983 (Attachment 9). 9. Fact Finding Meeting, of April 13, 1983 documented in (Attachment 10). 10. Memo to file dated June 21, 1983 (Attachment 11)

B. Status of Equipment, Engineering, Material, Manufacturing

Status

1.	Equipment	WNP-1	WNP-4
	Cabinet Assemblies (SREX & SREY)	Delivered	Not Started*
	Prefab Instr. Cables (SREX & SREY)	Delivered	Not Started*
	Safety Related Accessory Cabinet (SRAC)	Delivered	Not Started*
	Ftbre Optic Links (FOL)	Delivered	Not Started*
	Radwaste Instr. Cabinet Assembly (RWIC)	Delivered	Not Started*
	BOP Instr. Cabinet Assy. (BOPC)	Delivered	Not Started*
	Prefab Instr. Cables BOPC	$\begin{aligned} & 2-3 \text { mo. after } \\ & \text { Dwg approval } \end{aligned}$	Not Started*
	PAS Cabinets	Delivered	Delivered

• (Will not be completed due to termination).

Engineering	Status

All Engineering including design, development and qualification work will not be impacted by WNP-4 termination. a) Design and Development

• Seismic Testing/Aging Ongoing
• Test Instructions Complete
• Drawing Documentation 95% Complete