Term -Cost of Components

Cost of components means-
    (1) For components purchased by the
contractor, the acquisition cost, including transportation costs to the
place of incorporation into the end product or construction material
(whether or not such costs are paid to a domestic firm), and any
applicable duty (whether or not a duty-free entry certificate is
issued); or

    (2) For components manufactured by the
contractor, all costs associated with the manufacture of the component,
including transportation costs as described in paragraph (1) of this
definition, plus allocable overhead costs, but excluding profit. Cost
of components does not include any costs associated with the
manufacture of the end product.

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