1. Certain items in this solicitation are subject to statutory cost limitations. The limitations are stated in the Schedule.

2. An offer which does not state separate prices for the items identified in the Schedule as subject to a cost limitation may be considered nonresponsive.

3. Prices stated in offers for items subject to cost limitations shall include an appropriate apportionment of all costs, direct and indirect, overhead, and profit.

4. Offers may be rejected which—

   1. Are materially unbalanced for the purpose of bringing items within cost limitations; or

   2. Exceed the cost limitations, unless the limitations have been waived by the Government prior to award.

(End of provision)