3-09 - COM JOC Section J Attachment J-C.7 Coefficient Example.pdf

ATTACHMENT J-C.7

COEFFICIENT EXAMPLE

Description Factor

Base Coefficient from MEANS 0.9000

Subcontractor Overhead and Profit @ 4% 0.0400

Project Manager 0.0080

Construction Manager/QC 0.0170

Superintendent/Safety 0.0420

Incidental Engineering 0.0006

Vehicle Operations 0.0017

Office Expense & G&A 0.0300

General Liability Insurance 0.0029

General Requirements 0.0029

Subtotal 1.0450

Profit @ 5% 0.0500

Bond Premium 0.0200

Total 1.1150

Project Manager

Annual Salary $64,615.38

Annual Labor Fringe and Burden $5,384.62

Subtotal $70,000.00

Base amount (Subtotal X Number of Years) $140,000.00

Revenue $3,500,000.00

Percentage of time spent on this contract 20.00%

Subtotal $28,000.00

Factor 0.0080

Construction Manager/QC

Annual Salary $60,000.00

Annual Labor Fringe and Burden $24,975.50

Subtotal $84,975.50

Base amount (Subtotal X Number of Years) $169,951.00

Revenue $3,500,000.00

Percentage of time spent on this contract 35.00%

Subtotal $59,482.85

Factor 0.0170

Superintendent/Safety

Annual Salary $50,769.23

Annual Labor Fringe and Burden $22,791.27

Subtotal $73,560.50

Base amount (Subtotal X Number of Years) $147,121.00

Revenue $3,500,000.00

Percentage of time spent on this contract 100.00%

Subtotal $147,121.00

Factor 0.0420

Incidental Engineering

Annual Incidental Engineering $1,000.00

Subtotal $1,000.00

Base amount (Subtotal X Number of Years) $2,000.00

Revenue $3,500,000.00

Factor 0.0006

Vehicle Operations

Annual Gasoline/Maint Expense $3,000.00

Subtotal $3,000.00

Base amount (Subtotal X Number of Years) $6,000.00

Factor 0.0017

Home Office Overhead (G&A)

Home Office Overhead Rate 0.0300

Revenue $3,500,000.00

Subtotal $105,000.00

Factor 0.0300

General Liability Insurance

Additional Insurance Premium Costs $5,000.00

Base amount (Subtotal X Number of Years) $10,000.00

Factor 0.0029

General Requirements

Trailer $6,000.00

Supplies $1,000.00

Tool and Equipment usage $1,500.00

Subtotal $8,500.00

Base amount (Subtotal X Number of Years) $17,000.00

Factor 0.0049

Bond Premium

Bond costs @ 2% $70,000.00

Factor 0.0200

Profit

Profit @ 5% $175,000.00

Factor 0.0500

Note: The amounts and percentages listed herein are fictitious. These figures should not be construed to be minimum or maximum quantities, or even normal amounts.

Additional Supervisory labor categories can be added/deleted as needed, have the titles changed as required

Note: City Cost Index is not included herein, but will be added with each task order proposal.

COEFFICIENT INFORMATION

The Contractor’s negotiated coefficient is a numerical factor that represents indirect construction costs. The pre-negotiated cost model shall be used by the Contractor to break down the work into individual work items by selecting unit priced tasks necessary to accomplish the detailed scope of work. The total price is calculated by combining pre-negotiated cost model costs, applicable material taxes, and appropriate R.S. MEANS City Cost

Index, then multiplying that result by the appropriate Coefficient factor.

The coefficient shall be expressed as a numerical factor. For example, an Adjustment Factor of 112% would be expressed as 1.12. During the execution of the Contract, the unit price task is multiplied by 1.12 to obtain the price to be paid for that task.

Each unit price item in the pre-negotiated cost model is referred to as “Pre-priced items”. The Weighted Average

Total City Cost Index (here after referred to as “City Cost Index”) shall be based on the current indexes published in the R.S. MEANS Cost Data Book.

The Coefficient factor must include all costs—other than direct labor, material, and equipment, incurred in the performance of work—that cannot be charged to any specific work elements. This category includes but is not limited to the items listed below.

General and Administrative Overhead, including but not limited to:

Salaries of personnel required to operate and manage the Contract, fees for Rapid Gate security program, information technology and computer equipment required to manage the Contract, off base storage facilities, offices, administrative supplies, incidental engineering, job site supervision, vehicle operations and maintenance expenses and telephone charges.

Bond premiums

Insurance

Costs for purchase of equipment and vehicles; tools of the trade.

Office equipment and supplies.

Compliance with safety standards.

Compliance with security requirements.

Compliance with environmental laws (overhead (indirect)) costs associated with performing work in compliance with EPA/OSHA, and individual Station regulations, including obtaining any necessary licenses and permits, Dig

Permits, outages, reporting requirements, training, etc.

The Contractor’s risk factor.

Escalation

Indirect labor such as incidental engineering and planning

Company officers and support staff

Superintendents

Quality control, including daily Quality Control Reports

Submittal preparation

Employer’s portion of taxes such as FICA, unemployment compensation, and fringe benefits; compensation for wage differential between the applicable Davis-Bacon hourly wage requirements and the pre-priced unit line items

(after adjustment for the City Cost Index). See sample.

Overhead and profit

Differences in Federal and State Unemployment costs, Builders Risk Insurance and Public Liability costs

Use of Unified Facility Guide Specifications and Commercial specifications

Utility scopes, facility protection, safety, fire protection.

Work described in the Contract that states the Contractor shall perform at no additional cost to the Government:

All costs associated with computer hardware/software applications

All costs associated with computer hardware/software to enable electronic correspondence with the Government

Production of AutoCAD

Subscription purchase in the CCB

Waste and Excess Quantities included in Completed-in-Place Construction Quantities. (All prices in pre-negotiated cost model are for completed-in-place construction unless explicitly described otherwise. Waste or excess material quantities are incidental costs that are included within the Contract coefficient unless explicitly stated otherwise.

Quantities used on individual task order proposals shall be taken from field measurement or design plans, as appropriate, without allowance for waste.)

Required Tools/Equipment. The representative listing of tools and equipment that apply to the various trades is located in Section C. These items are indicative of, but not limited to, those that the Contractor is expected to provide as part of normal overhead cost.

Coefficient for Non-Prepriced Work. The Government may require the provision of non-prepriced item(s) for projected task orders. Non-prepriced items are defined as construction materials, services, and work that are not listed by the pre-negotiated cost model. Non-prepriced items are subjected to the procedures described in the paragraph below. The Government will not accept non-prepriced work if the materials or services are listed in the pre-negotiated cost model or the non-prepriced item was incorporated by modification. For non-prepriced items, the

Contractor shall provide the following for each component or task required:

Item Description

Direct Labor Hours

Davis-Bacon wage rate for trade performing task

Hourly fringe benefit rate for trade performing task

Description of proposed material

Number of units of material

Cost per unit of material (direct bare costs only)

Description of proposed equipment

Time for which equipment will be required

Rental rate for equipment (direct/bare costs only)

Profit and overhead, if applicable.