Need Clarification of cost of additional Components rules

[Tristan Lall]

Originally Posted by Japper

I understand that the total limit of additional parts used must be less than
$3500 and if I understand it correctly, any one part used must be worth
$400 or less. Is this a correct understanding of the 2007 rules so far?

Yes.

Originally Posted by Japper

In the scenario where I were to accept a donation of an assembly that is
offered by a company and it is typically sells for $600 and is available
to anyone who wanted to buy it at that price, is it true that this part
would be not allowed because it costs mors than $400 to purchase it?

Is this value based upon the selling price of the assembly or the
cost of materials that go into the assembly?

Cost determination relies upon the fair market price (often the MSRP) of the COTS part or assembly. It would therefore be illegal. You cannot rely upon the cost of materials alone—the manufacturer's costs and profit must be included.

Originally Posted by Japper

If we were to customize the assembly or only use a portion of this
assembly, are we limited to using any one piece worth less than $400?
How would we determine this value?

If we were to take the above assembly and only use 1/4 of it, so that we
are effectively only using $150 of the value of the donated item, can we
report this as a $150 part?

If that assembly is available to the public in the same parts, you could acquire the desired part alone. If it is only sold as a whole, you may not prorate it. (Prorating only applies to bulk materials.)

Originally Posted by Japper

Can we value the above portion of the assembly as the value of the individual components
of this assembly if we buy it that way?

If this same configuration is purchasable by a member of the public, you may.

Originally Posted by Japper

One last question... What do we need to log and show to the judges regarding additional parts
used, do we need manufacturer name & contact info, part number, cost
basis, and / or what else?

You need to provide a bill of materials that uniquely identifies the non-KOP parts/assemblies used, and provides their costs and quantities. You may provide more information if you desire, bearing in mind that in case of a dispute, the team bears the burden of proof to show that a part is legal. Also, it is a very good idea to bring several copies of your BOM, because inspectors will often like to keep a copy for their records.

[Japper]

Originally Posted by Tristan Lall

You need to provide a bill of materials that uniquely identifies the non-KOP parts/assemblies used, and provides their costs and quantities. You may provide more information if you desire, bearing in mind that in case of a dispute, the team bears the burden of proof to show that a part is legal. Also, it is a very good idea to bring several copies of your BOM, because inspectors will often like to keep a copy for their records.

Do we need to show receipts of all material purchased also?

[Kevin Sevcik]

Originally Posted by Japper

Do we need to show receipts of all material purchased also?

No. Keeping them will be helpful to you for keeping track, and you might want them for any particularly expensive items that are toeing the $400 line, but mostly you're on your honor. This is simply a practical consideration, as if you use many donated parts, you'll only have stated priced for those instead of reciepts anyways.

[Kevin Sevcik]

Originally Posted by Tristan Lall

If that assembly is available to the public in the same parts, you could acquire the desired part alone. If it is only sold as a whole, you may not prorate it. (Prorating only applies to bulk materials.)

Tristan.... I actually think this applies to anything you buy in large quantities. Like ball bearings, for example. If you get a volume discount on these, you can use that price. Though as with aluminum, if you had to buy 25 bearings and you only used 5, you can't use the price for 25. I imagine this would even apply to assemblies/mechanisms if there was something like that that you needed a lot of and had a bulk discount. That paragraph of the rules says it applies to items purchased in bulk OR in large quantities, after all.