As we have already indicated, it does not appear possible to 
extend the system of Allied Services to cover every case in which 
one Department supplies goods or services to another. In 
general we are of opinion that some inter-departmental payment 
should be made and in the next paragraph we define as closely 
as seems practicable what elements this pavment should contain 
as a minimum. 
There remains the very difficult question what additions ought 
to be made to this minimum in respect of what may be 
described generally as on-costs or overhead charges. We deal 
with this matter in paragraph 7 and conclude with a general 
recommendation 
6.—The minimum charge. 
We must first define what may be described as the initial 
or primary cost of goods and services in the cases we are con- 
sidering. We do not think that under any system the charges 
set out in the second column below could be waived. The 
question of charges to be added thereto in respect of inspection, 
storage or other incidental services involved is dealt with in the 
next paragraph. 
Class of Service. 
A. The manufacture or 
repair of goods in a 
Government factory. 
Of this type the 
Ordnance Factories 
afford, perhaps, the 
most conspicuous 
1ustration. 
Minimum Charges. 
Tactory Production Cost, a con- 
venient and well understood 
term, which includes the value 
of materials, labour and such 
on-costs as are usually included 
in production price under 
commercial practice. 
B. The supply of goods 
from the store of a 
Department to an- 
other customer De- 
nartment. 
The price paid by the supplying 
Department to the Contractor, 
plus the additional cost of de- 
livery (if any) to and from the 
agent Department's store * 
OC. The purchase by an 
agent Department of 
goods for delivery dir- 
act from the contrac- 
tor’s works to another 
sustomer Department. 
The price paid to the contractor 
plus the additional cost of de- 
livery (if any) direct from the 
contractor to the cnstomer De- 
partment. 
* Tor warlike and other stores surplus to requirements the price must 
necessarily be fixed with reference to their selling value. For reconditioned 
z00ds (e.g, reconditioned typewriters) issued from store a valuation price 
must similarly he fixed.