Government-furnished equipment be supplied without charge to this zontract, A review of the equipment at the Jobsite was made in February 1950, on the basis of Government-furnished equipment at the Jobsite. A determination was made with the approval of all concerned that the estimated equipment rental rates estimated as above should be reduced by 49 per cent as representative of that portion which the total Government-furnished equipment at the Jobsite bore to the total equipment procured, Transportation. The original thinking of the Atomic Energy Commission, which was in effect throughout the Contract, was that transportation of personnel and materials would be provided by other Government agencies at no cost, On the basis of this thinking during the negotiations leading to the Definitive Contract, the entire estimated cost of transportation was deducted from the Reconnaissance Report estimate at the insistence of the Atomic Energy Commission, It was not until February 1950 that it was brought to the attention of the Atomic Energy Commission that the estimated transportation costs included transportationof personnel and materials in the United States as well as the water transportation between Oakland, California, and Eniwetok Atoil. At this time the Atomic Energy Commission reinstated in the Contract that portion of transportation which had been estimated in excess of the Government-furnished water transportation. All estimates submitted after February 1950 provided for the deduction of Governmentfurnished water transportation from the total estimated transportation cost. Transportation costs as reflected in all cost estimates were established from the estimated tonnage of all items of materials and supplies. Because there was no definite determination as to whether or not Government water transportation would be supplied, or land transportation would be under Government bills of lading, all cost estimates were prepared on the basis of all materials being delivered by common carrier on both sand and water from the FOB point, Z. I., to the Jobsite central warehouse. In February, 1950, when it was definitely determined that water transportation would be supplied for all materials, there was inserted ir all cost estimates a feature of provisional deduction for Governmentfurnished water transportation at the average estimated cost of $27.00 per ton, li & N letter CHN-346, February 14, 1950.