Attachment J.3_Budget_Narrative_Amendment 1.pdf

Attachment J.3

Budget Narrative Template

The offeror must completely and accurately complete this template (including the font contained therein).

If any discrepancies exist between the budget in Attachment J.2 and the budget narrative in Attachment J.3, USAID will use the figures contained in the budget.

I. General Cost and Price Assumptions

In this section, the offeror must include the following content:

A. State what assumptions were utilized in composing the budget estimate; examples include an annual inflation rate, annual salary escalation rate, information in the organization’s recovery or accounting of specific cost items, foreign currency exchange rate, etc., as applicable. The offeror must note that all estimated costs are allocable to this contract.

B. For applicable escalation rates that fall within the market range below, the offeror need not provide further substantiation of the proposed escalation range. For rates falling outside market ranges, the offeror must justify the escalation rate using current market data from available U.S.

Government or partner government macro-economic indices.

Escalation Type Market Range Labor Escalation – U.S. Not to Exceed 5% Non-Labor Escalation – U.S. Not to Exceed 5%

Labor Escalation – Local Not to Exceed 6% Non-Labor Escalation - Local Not to Exceed 6%

C. A standard work-year, including paid absences (holidays, vacations, and sick leave) is 2,080 hours (260 days x 8 hours per day). However, some organizations do not have an 8-hour workday, and some accounting systems normally provide for direct recovery of paid absences by using a work-year of less than 2,080 hours to compute individuals’ unburdened daily rates. The Offeror and each proposed subcontractor must:

a. indicate the number of hours and days in its normal workday and its normal workweek, both domestically and overseas, for employees and consultants used in its pricing and discuss how it conforms or varies from their standard policy.

b. indicate how paid absences (U.S. holidays, local holidays, vacation and sick, other) are costed/recovered in its accounting system.

D. Exchange Rate. All budgets, rates, and unit costs must reflect USD denomination. At this time, USAID does not require or desire locally denominated costs or associated exchange rate information.

II. Summary Budgets

The offeror must provide two tables in this section, as shown below, that provides a top-level summary of cost by major cost element and by year. The offeror must not copy and paste a PDF image below.

A. Consolidated Budget by Major Cost Category

Cost Sectio n Cost Category Year 1 Year 2 Year 3 Year 4 Year 5 Total

1 Salaries 2 Fringe 3 Allowances 4 Consultants 5 Travel and Per Diem 6 Equipment and Vehicles 7 Subcontracts 8 Grants under Contract 9 Other Direct Costs $388,000 $388,000 $388,000 $388,000 $388,000 1,940,000 10 Overhead 11 General & Administrative 12 Fixed Fee

Grand Total

B. Consolidated Budget by Contract Intermediate Results (IR)

ITEM Year 1 Year 2 Year 3 Year 4 Year 5 Total

IR 1

IR 2

IR 3

Grand Total

C. LOE Summary

Labor Category IR 1 IR 2 IR 3 Total

Expatriate LTTA CCN Professional LTTA Expatriate STTA CCN Professional STTA Home Office Grand Total

III. Labor

A. General Instructions

1. In this section, discuss any relevant organizational policies that affect the budgeting, accounting and tracking of salaries, such as uncompensated overtime, compensated overtime, and paid time off.

2. The offeror must not include consultant labor in this narrative section. (Consultant rates are discussed below).

3. Include all relevant information related to how recruitment, retention, management, and establishment of rates, affects the budget estimate for salaries and wages.

4. The offeror must propose direct salaries and level of effort that (i) comply with the offeror’s personnel policies, (ii) conform with FAR 31.205-6, AIDAR 731.205-46, and AIDAR 752.7007, which provide for compensation for personal services.

5. The offeror must not propose any salary that exceeds the Contractor Salary Threshold (“CST”).

6. Waivers to pay TCN allowances and/or pay CCN/TCN salaries that exceed Local Compensation

Plan (“LCP”) maximums are not required at this time and such salaries will be presumed to be reasonable under the assumption that the Offeror can justify a waiver during administration of the contract. Upon award, CCN and TCN salaries proposed in excess of the LCP limits will require a salary justification and waiver from the Contractor for USAID approval, pursuant to paragraph

(b) of AIDAR 722.170.

7. CCN/TCN personnel. The offeror must propose local labor rates within the ranges identified below. The offeror must provide additional data to support the LCP level (e.g., biodata sheets, pay stubs, or data from the results of salary surveys and must clearly show how such data was used to develop the proposed salary rate). USAID cautions the offeror from proposing rates at the absolute minimum or maximum (especially at the FSN 12 or 13 level).

Unburdened Year 1 CCN/TCN Daily Salary Rate Ranges (Based on 260-day year)

LCP Level Step 1 (US$) Step 14 (US$)

FSN 1 12.37 21.04

FSN 2 17.90 30.43

FSN 3 23.32 39.64

FSN 4 27.58 46.89

FSN 5 30.73 52.24

FSN 6 40.18 68.31

FSN 7 44.26 75.24

FSN 8 58.15 98.85

FSN 9 78.73 133.84

FSN 10 90.39 153.66

FSN 11 126.32 214.75

FSN 12 176.43 299.93

FSN 13 235.48 400.32

B. Summary of Proposed Labor Rates

Offerors must provide tabular summaries of proposed Year 1 labor rates, Summary of Year 1 Labor Rates (U.S. Personnel) (LT Expatriate, ST Expatriate, Home Office)

Labor Category Level Year 1 Daily Rate Justification for (1) Labor Rate Category Selection and (2) Daily Rate

Summary of Year 1 Labor Rates (CCN & TCN Personnel) (LT Professional, ST Professional, LT Administrative)

Labor Category FSN Grade Level

Year 1 Daily Rate

Salary Range from LCP

Justification for (1) FSN Level Selection and

(2) Daily Rate

The offeror may provide a separate numbered paragraph to explain the basis for any labor rate, including information on how the offeror calculated the labor rate and additional source information such as historical biodata salary rates, detailed buildup and basis of estimate accompanied by the offeror’s underlying cost and pricing data, or from the results of market research, and reference where that information is located in the offeror proposal.

C. Additional Salary Base Information

If an offeror calculated their proposed daily rates with a denominator other than 260 days, the offeror must identify the basis and fully substantiate the reason to utilize other than 260 days. If an offeror partially burdens salaries with PTO or other benefits, the offeror must clearly explain and show how it included the burden in the salary rate. In either of the preceding instances, the offeror must provide adequate explanation so that USAID can understand the reasoning, as well as the specific calculations employed.

D. Level of Effort—All Labor

The below table requires the offeror to provide the LOE estimated for every position over all five years of contract performance. Please note how the offeror calculated the LOE (i.e., in conformance with its employment policy). Importantly, please note any significant fluctuations in LOE over the period of performance.

1. Summary

Position Name Contractor LOE Year 1 LOE Year 2 LOE Year 3 LOE Total

2. Intermediate Results

Name Position Contractor LTTA/ STTA USN/TCN/

CCN

Level of Effort

IR1 IR 2 IR 3

IV. Fringe Benefits

The offeror must not use hard-coded values for fringe benefits. The offeror must calculate the fringe benefits base using a formula that clearly shows which staff salaries are aggregated into the fringe base. If multiple fringe rates are used, then the offeror must break down their labor accordingly.

B. Summary of Application of Proposed Fringe Benefit Rates

The offeror must complete the table below, documenting their proposed fringe benefits rate, application of the fringe benefits rate, fringe ceiling rate (if applicable), and comparison of the proposed fringe benefits rate to the current NICRA rate. No additional justification or information is needed if the offeror’s proposed rate is consistent with their NICRA and less than or equal to their ceiling rate. No additional justification or information is needed if the offeror’s proposed local fringe rates fall within the applicable RFP provided market ranges.

Summary of Application of Proposed Fringe Benefit Rate(s)

Labor Type Proposed Rate

Approved NICRA Rate or Local Fringe Benefit

Rate Range

Insert Note # and Substantiate Below

Table Base Estimated Cost

[●] [●]% [●]% [#] or “N/A” $[●] $[●] [●] [●]% [●]% -[●]% [#] or “N/A” $[●] $[●] Total $[●]

*If applicable

The offeror must explain the basis and justification for proposed fringe benefit rates that do not conform to the offeror’s current NICRA.

B. Corporate Fringe

1. Proposed contract fringe benefits rates must not exceed the rates established in the offeror’s NICRA (or equivalent approved forward rate pricing agreement). The offeror may propose lower fringe rates than their established NICRA and sign the letter found in ADS 300, Mandatory Reference for Best Practices Guide for Indirect Costing.

2. As shown above, for any Fringe Benefit rate that deviates from the current approved NICRA rate, the offeror shall provide a numbered paragraph(s) that explains and justifies the proposed Fringe Benefit rate, along with references to any supporting Fringe Benefit rate information, and enter that paragraph number in the “Note” column.

3. Basis of Proposed Fringe Benefit Rate

a. If the Offeror has a fringe benefit rate approved by an agency or department of the U.S.

Government, then the Offeror must submit the latest executed rate agreement as an attachment to this budget narrative.

b. If the Offeror is proposing with requested, but not approved, provisional rates or forward-pricing rates, the budget narrative must include:

i. The full detailed backup submitted in the indirect rate request to the government, including all attachments, schedules, and detailed pool and base compositions and rate calculations; and

ii. The offeror must nevertheless include a complete copy of its most current NICRA or other documentation from its cognizant Government Audit Agency, if any, stating the most recent approved provisional indirect cost rates.

c. If the Offeror does not have a cognizant Government Audit Agency and approved indirect rate agreement, the proposal must include the most recent two fiscal year pool and base cost compositions, along with derived rates, the bases of allocation of these rates, and an independent certified audit by a certified accounting firm of these rates.

C. Local Fringe Benefits

1. The ranges for local fringe benefits generally include all mandatory fringe benefit and payroll taxes as well as typical ‘discretionary’ fringe benefits that are part of the Offeror’s standard package of fringe benefits for local staff.

2. If Local Fringe Benefits are proposed as a direct charge that is not recovered via the Offeror’s NICRA rate, then the offeror’s Excel budget must identify local fringe benefit costs as a separate line item within the Fringe Benefit category.

3. For any direct charge, the offeror must provide a separate supplementary table, as shown below. The supplemental table must identify the total proposed local fringe benefit cost and associated local personnel labor cost. The table must also annotate if paid time off is accounted in local fringe benefits costs or is accounted for in the local labor cost.

IV. Allowances

A. General Instructions

(a) AIDAR 752.7028 provides for differentials and allowances. The offeror must provide a list of the allowances for which certain of its proposed employees remain eligible. The proposed allowances must conform with the rates allowed in the Department of State Standard Regulations (“DSSR”).

(b) The offeror must provide detailed allowance cost calculations by allowance type and position/person. The offeror must explain the basis for proposed allowances, for which positions they are budgeted, and specify the estimating methodology. The offeror should also include the proposed cost for each allowance so that the Government can understand the total value of expatriate costs.

(c) The offeror must place entitlement travel (e.g., “travel to/from post”, “rest and recuperation” and “home leave” and “education travel”) in the “Travel” cost category. The offeror must clearly identify entitlement travel and segregate the costs from programmatic travel.

(d) The offeror must not include Defense Base Act (“DBA”) Insurance costs in this element. The offeror must include this cost as an Other Direct Cost.

Table. Summary of Allowance Costs

No. Allowance Proposed Cost Year 1

Proposed Total Contract Costs

(i) Post Differential $[●] $[●]

(ii) Post Allowance (“Cost of Living Allowance”) $[●] $[●]

(iii) Danger Pay $[●] $[●]

(vi) Temporary Quarters Subsistence Allowance $[●] $[●]

(v) Separate Maintenance Allowance $[●] $[●]

(vi) Education Allowance $[●] $[●]

(vii) Housing Rent and Utilities $[●] $[●]

(viii) Air Freight (UAB) $[●] $[●]

(ix) HHE Shipment $[●] $[●]

(x) HHE Storage $[●] $[●]

Note that the offeror must place entitlement travel (e.g., “rest and recuperation” and “home leave”) in the “Travel” cost category.

Also, note that the offeror must place the following costs in the “Travel” or “Other Direct Cost” category:

● Defense Base Act (“DBA”) Insurance costs

● Annual medical examinations

● Visas and work permits and passport processing fees

Table. Summary of Proposed Allowance Costs Per Individual

No. Individual Position Allowance Unit Cost Unit No Total

(i) [●] [COP] Post Differential

Post Allowance

TQSA

SMA

Education Housing Air Freight (UAB) HHE Shipment HHE Storage

(ii) [●] [DCOP] Post Differential Post Allowance

TQSA

SMA

Education Housing Air Freight (UAB) HHE Shipment HHE Storage

Note that for allowances that require a calculation with a base of application, e.g., post differential, the offeror may use the “unit cost” column to provide the percentage and the “unit no.” column to provide that base of application, e.g., base salary.

Note that the offeror may provide an additional chart to show the calculation of the allowances, e.g., temporary quarters subsistence allowance or education allowance.

Provide a justification for proposed costs related to “Household Effects” (“HHE”), e.g., storage and shipment, if applicable. The offeror may summarize quotations it received to justify proposed costs.

Provide a summary of the market research to justify proposed costs for housing, which must include related utility costs.

V. Consultants

A. General Instruction

(a) FAR § 31.205-33 provides for services rendered by persons who are members of a particular profession or possess a special skill and who are not officers or employees of the Contractor.

(b) The offeror must separate costs related to the provision of Consultants from Personnel costs.The offeror must break down costs of consultants by person years, months, days or hours.

(c) The Offeror must provide a breakdown of consultant labor costs using the labor groupings below.

(d) The offeror must support the daily rate with additional data such as biodata sheets (with appropriate consultant rate history provided), historical data such as a previous paid consultant invoice, or other market pricing data, or from the results of market research to substantiate the proposed consultant rate and must clearly show how such data was used to develop the proposed consultant rate.

Experience Level USN/TCN

/CCN

Current Daily Rate Proposed Year 1 Daily Rate

Proposed

LOE

Long Term Support (Professional) Long Term Support (Administrative) Short Term Support (Professional) Short Term Support (Administrative)

A. Summary of Proposed Consultant Rates

The offerors must provide the following tables summarizing proposed Year 1 Consultant rates. The offeror must justify the proposed rate, along with references to any supporting labor rate information, and enter that paragraph number in the “Note” column.

Summary of Year 1 U.S. Consultant Rates

Labor Category Level Year 1 Daily Rate Consultant Range Justification for (1) Labor Rate

Category Selection and (2) Daily Rate

Summary of Year 1 CCN & TCN Consultant Rates

Labor Category FSN Grade Year 1 Daily Rate Consultant Range from LCP Justification for (1) FSN Level

Selection and (2) Daily Rate

The offeror must provide a separate numbered paragraph to explain the basis for any consultant rate.

The explanation shall include information on how the rate was derived (i.e. how the rate was calculated), and also included additional source information such as historical biodata Consultant rates, detailed buildup and basis of estimate accompanied by the offeror’s underlying cost and pricing data, or from the results of market research, and a reference to where that information is located in the offeror proposal.

B. Additional Consultant Rate Base Information

If an offeror calculated their proposed consultant rates with a denominator other than 260 days, the offeror must identify the basis and fully substantiate the reason to utilize other than 260 days. The offeror must provide adequate explanation to understand the reasoning, as well as the specific calculations employed.

VI. Travel, Transportation, and Per Diem

A. General Instruction

(e) The offeror must identify programmatic travel separately from entitlement travel in their budget.

(f) The offeror must explain the basis for proposed travel and transportation costs, for which positions they are budgeted, and specify the estimating methodology. Travel and transportation can include international and in-country travel, as well as local transportation costs. The purpose, destination and number of trips should be indicated, as well as the source of cost estimates.

B. Proposed Programmatic Travel for Year 1

The offeror must specify the number of trips (international and local) for each year. For pricing purposes, the offeror must use the following standardized programmatic travel categories shown in the table below to quantify and price trips.

The offeror must provide full detail of their proposed travel cost to clearly show how such data was used to develop their proposed travel cost. For pricing international programmatic travel trips that are longer than two weeks in duration per trip, the offeror must provide a detailed breakout of those trips. The Offeror’s cost volume must include additional information and narrative regarding programmatic travel costs. Offerors must also discuss the basis for its estimated travel costs (e.g., quotations or historical cost data).

Traveler/Position Origin Destination Airfare Cost # Trips Estimated Cost

Justification for Trip

Offerors must also discuss the basis for its estimated travel costs (e.g., quotations or historic cost data).

Travel Cost Δ Final International Regional Ground Per Diem

C. Proposed Entitlement Travel

The offeror must specify the number of entitlement trips, by trip type for each year. For pricing purposes, the Offeror must use the following standardized entitlement travel categories to quantify and price trips.

Travel costs must reflect a weighted average unit cost based on expected origin/destination.

No. Position Type Origin Destination Airfare Cost

Travelers

Trips

Estimated Cost

(i) To/From Post R&R Home Leave

(ii) To/From Post R&R Home Leave

D. Proposed Per Diem Costs Associated with Programmatic Travel for Year 1

(a) (b) (c) (d) (e) (f) (g) (h) Type of Personnel

No. Int’l Visits

Total No.

Days Budgeted

No. Days To/From Post Travel (75% per diem rate)

75% Per Diem

No. Days at 100% Per Diem

100% Per Diem

Total Per Diem Cost

Note that column (a) refers to the home office or other labor category providing STTA.

Note that column (c) represents the total of column (d) and column (f).

Provide a description justifying the number of international programmatic trips.

E. Proposed Other Travel Costs

Travel Category Unit Cost Unit No Estimated Cost Local Ground Transport [●] trips Airport Transport [●] trips Medical Exam [●] person

Communications [●] trips DBA Insurance [●]% Annual Medical Examinations Visas, Work Permits, Processing Fees Travel Miscellaneous Total Proposed miscellaneous costs must not exceed $150 per trip, but offerors are encouraged to propose significantly less depending on the length and purpose of the trip.

Offerors must explain each of the proposed costs by sub line-item (e.g., local ground transport)

VII. Equipment and Vehicles

In this section, explain the basis for any items of equipment proposed for procurement. Explain the necessity of the items, and specify the estimating methodology for proposed costs. Pursuant to the U.S.

Federal Acquisition Regulation, “Equipment” means a tangible item that is functionally complete for its intended purpose, durable, nonexpendable, and needed for the performance of a contract. Equipment is not intended for sale, and does not ordinarily lose its identity or become a component part of another article when put into use. Equipment does not include material, real property, special test equipment or special tooling.

In this section, explain the basis for any proposed supplies and other items proposed for procurement.

Explain the necessity of the items, and specify the estimating methodology for proposed costs. Pursuant to the U.S. Federal Acquisition Regulation, “Material” means property that may be consumed or expended during the performance of a contract, component parts of a higher assembly, or items that lose their individual identity through incorporation into an end item. Material does not include equipment, special tooling, special test equipment or real property

A. Proposed Acquisition—Equipment and Supplies Costs for Year 1

No Line Item Unit No Unit Cost Total Cost Estimated Life Span

(i) (ii) Total

Note that these costs must directly relate to implementation as opposed to administration of the contract.

For example, the offeror can propose the procurement of equipment and supplies for a partner government institution if contemplated and required by its technical approach.

B. Proposed Acquisition—Administrative Equipment and Supplies Costs for Year 1

No Line Item Unit No Unit Cost Total Cost Estimated Life Span

(i) Vehicle

(ii) Desktop Computer

(iii) Laptop Computers

(iv) Printers

(v) Generator

(vi) Scanner

(vii) Landline Phones

(viii) Cell Phones

(ix) Software Total

Examples of administrative equipment and supplies include vehicles, computers, printers, generators, scanners, phones, and software. It does not include maintenance services or office supplies.

VIII. Subcontracts

A. Subcontracts Summary

The Offeror must provide a table, as shown below, summarizing each proposed subofferor. For each subofferor, indicate the proposed subcontract type, state the proposed amount of the subcontract (before application of prime burden and fee) and its purpose in supporting contract implementation. (Note:

Subofferors should provide a similar table of 2nd tier subcontracts, if any).

Subcontractor Name Subcontract Type Total Proposed Subcontract Price Purpose

B. Approved Purchasing System Status

Provide a copy of the subofferor’s purchasing system approval from a cognizant federal agency. If no such approval has been granted, then the Offeror may state, “N/A”. Subofferors that do not propose any 2nd tier subcontracts may simply answer “N/A”.

C. Prime’s Evaluation and Analysis of Subofferor Proposals

Per FAR § 15.404-3, the contracting officer is responsible for the determination of a fair and reasonable price for the prime contract, including subcontract prices. Accordingly, the contracting officer will consider whether a contractor or subcontractor has an approved purchasing system, has performed cost or price analysis of proposed subcontractor prices, or has negotiated the subcontract prices before negotiation of the prime contract, in determining the reasonableness of the prime contract price.

Furthermore, FAR 15.404-3(b) requires the prime contractor or subcontractor (in the case of lower tiered subcontracts) to perform the following:

(1) Conduct appropriate cost or price analyses to establish the reasonableness of proposed subcontract prices;

(2) Include the results of these analyses in the price proposal

For every proposed subcontract, the offeror must include both a budget and associated budget narrative.

Subcontractor budgets must be included as separate spreadsheet tabs for each such subcontract within the prime offeror’s Budget Spreadsheet.

(1) Fixed-price type subcontracts. The subofferor’s budget may be organized by either: 1) product and/or service delivered or by 2) fully burdened cost element (i.e. Labor, Allowances, Travel, Equipment, Consultants, Program Activity, lower-tier sub-contracts, etc.). If the fixed price subcontract is priced by a fully burdened cost element, then labor must be organized by the standard labor groupings identified in Section L.6.4.2. Except for Key Personnel, lower level labor pricing detail by person is not required. However, the subofferor budget narrative and the prime’s evaluation must explain the basis for the proposed subcontractor weighted average labor rates and demonstrate how these rates are fair and reasonable. Alternatively, if priced by product/service delivered, the subofferor budget narrative and the prime’s evaluation must explain the basis for each priced deliverable and demonstrate how these prices are fair and reasonable.

The offeror must adhere to additional instructions found in Attachment J.3 for preparing the subofferor budget narrative.

(2) T&M type subcontracts. Subofferors may price labor using fully burdened T&M labor rates (inclusive of profit) in lieu of a price buildup using unburdened salary rates and associated indirect costs, and fee. The T&M sub-offeror must break out any subcontractor proposed Equipment, Travel, ODCs or lower-tier sub-contracts as separate items consistent with the Budget Spreadsheet. Except for key personnel, lower level labor pricing detail by person or position is not required. However, the subofferor budget narrative and the prime’s evaluation must explain the basis for the proposed subcontractor weighted average labor rates and demonstrate how those rates are fair and reasonable. Offerors must adhere to additional instructions found in Attachment J.3 for preparing the subofferor budget narrative.

(3) Cost type-subcontracts. The subofferor’s budget should be organized using the same cost element detail identified in Attachment J.3. Except for Key Personnel, lower level labor pricing detail by person or position is not required. However, the subofferor budget narrative and the prime’s evaluation should explain the basis for the proposed subcontractor weighted average unburdened labor rates and demonstrate how these rates are fair and reasonable. The offeror must adhere to additional instructions found in Attachment J.3 for preparing the subofferor budget narrative.

A budget narrative must be prepared for each subofferor and included as separate sections in the prime offeror’s budget narrative. Offerors must follow further instructions provided in Attachment J.3.

Regardless of subcontract type, offerors and sub-offerors must provide sufficient information in the budget narrative that demonstrates the proposed subcontract price is fair and reasonable. The TOCO intends to rely on the prime offeror’s documented evaluation of the proposed subcontractor pricing together with the subofferor’s budget narrative to the maximum extent practicable. The prime offeror’s documented analysis of subcontractor pricing must not exceed 10 pages per proposed subcontract.

This limitation does not apply to subcontractor budget narratives submitted by the subcontractors and included as part of the prime’s cost volume. Documenting these items is a material requirement of the solicitation. Insufficient documentation of these items may cause USAID to exclude the offeror from further consideration for the award.

At this time, the CO does not request and will not provide advance consent to subcontract prior to contract award; instead, the successful contractor will provide the requisite documentation after award.

Note: Subofferors may state “N/A” for this subsection.

The Contracting Officer intends to rely on the offeror’s documented evaluation of the proposed subofferor pricing.

Offerors with an approved purchasing system. For each subofferor cost/price proposal, the offeror with an approved purchasing system must provide the work products generated as part of their approved purchasing system, including but not limited to: 1) documentation of subofferor’s management level justification and adequate cost or price analysis, as applicable, for any sole or single source award; and 2) documentation of adequate cost or price analysis for each subofferor and supplier proposal or quote to ensure fair and reasonable subcontract prices.

Offerors without an approved purchasing system, the offeror must also separately and specifically provide the details and extent of the cost or price analysis it performed of each subofferor’s cost/price proposal.

The discussion must be organized by subofferor and located within this subsection. This requirement is applicable to all subcontract types, including fixed price subcontracts. The analysis provided by the Offeror must include sufficient detail to allow the contracting officer to assess the Offeror’s findings with respect to the reasonableness of the proposed subcontractor pricing. (Offerors should refer to FAR 15.404-1 (b) Price analysis for commercial and non-commercial items and FAR 15.404-1(c) Cost Analysis for additional guidance). As applicable, the Offeror must include their evaluation of all proposed subofferor cost elements, and the metrics or standards that the Offeror used in the evaluation (e.g. market research, salary surveys, historical data, or prior experience). For subcontracts that the Offeror considered to be commercial, the Offeror must include its assessment to support its finding that the subcontracted requirement meets the FAR conditions for a commercial item, in particular demonstrating that the pricing is based on services sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices, as specified in item (6) under the definition of “Commercial item” in FAR 2.101 (b). Offerors may rely on and refer to the subofferors’ budget narrative. However, the Offeror must provide additional details and analysis documenting how the subofferor’s proposed costs that fell outside applicable market ranges, were found to be fair and reasonable.

Per Section L.6.4.8(d), the The Offeror’s documented analysis of subofferor pricing must not exceed 10 pages per proposed subofferor. (The subofferor’s budget narrative does not constitute fulfillment of this requirement and does not count towards this page limitation).

Documenting these items, as described above, are a material requirement of the RFP. The Contracting Officer reserves the right to exclude the Offeror from further consideration for the award due to insufficient documentation of the subofferor pricing.

D. Information to Support Consent to Subcontract

The offeror need not provide information to address each of the elements in FAR 44.202-2 for proposed subcontractors as the contracting officer will only provide consent to subcontract after award.

VIII. Other Direct Costs

(a) Other Direct Costs (“ODC”s) include, among other things, report preparation costs, passports and visas fees, medical exams and inoculations, insurance (other than insurance included in the Offeror's fringe benefits), office supplies, vehicle maintenance, equipment, fuel, shipment allowance, rent, office and residential utilities, in addition to other costs that will directly benefit the offeror’s PWS. In other words, ODCs include those proposed direct items that do not fall under the direct cost categories described above.

(b) The offeror must not include costs covered by overhead.

(c) The budget narrative should provide a breakdown and justification for all ODCs. Explain the necessity of the items, and specify the estimating methodology for proposed costs.

(d) The offeror must not include the cost of locally employed salaries, allowances, equipment, and travel costs under the ODC cost category.

B. Proposed Other Direct Costs for Year 1

No. Line Item Unit No Unit Cost Total Cost Estimated Life Span (If appl)

(i) Office rent and utilities

(ii) Office security services

(iii) Office make ready

(iv) Expendable office supplies

(v) Maintenance/Janitorial services

(vi) Communications

(vii) Reproduction costs

(viii) Residential make ready

(ix) Vehicle maintenance

(x) Vehicle fuel

(xi) Communications

(xii) Courier services

(xiii) Insurance

(xiv) Work Permits

(xv) Legal services

(xvi) Bank charges

(xvii) CCN Fringe Benefit costs

CCN Severance Pay CCN 13 Month Salary CCN Insurance CCN Pension CCN Worker’s Compensation

(xviii

Temporary employment

Note that the provision of CCN fringe benefit costs must conform with local law.

Note that offerors can include “Program Activity Costs” in this section in another table, but the offeror must provide a cost breakdown. These costs can include surveys, events and workshops, assessments, etc., but the offeror must describe how these costs further the implementation of the proposed technical approach.

IX. Indirect Costs (Overhead and General & Administrative, etc)

A. General Instructions

(a) The offeror must not use hard-coded values for the indirect cost base. The offeror must calculate the base using a formula that clearly shows which costs are aggregated into the associated indirect cost base

(b) The offeror must state whether the organization holds a current negotiated indirect cost rate or whether an indirect cost rate proposal is included with the submission. If the organization is proposing using requested, but unapproved, indirect cost rates, then Offerors shall include a comparison of the current approved rates to the requested rates.

(c) Proposed indirect rates must not exceed the rates established in the offeror’s approved provisional or pricing rate agreement (i.e. NICRA, Forward Rate Price Agreement, etc.) or the Offeror’s indirect ceiling rates (if applicable). The offeror may propose indirect rates that are lower than their established NICRA and sign the letter found in ADS 300, Mandatory Reference for Best Practices Guide for Indirect Costing.

B. Application of the Indirect Cost Rate(s)

The Offeror shall provide a table, as shown below, that fully explains the categories of indirect costs proposed and demonstrates how the indirect cost rate(s) are applied. Offerors shall insert additional rows as needed to fully identify their indirect pools utilized for this contract.

Indirect Pool

Base of Application

Current Approved

NICRA

Rate

Negotiated Indirect Ceiling

Rate

Proposed Indirect

Rate

Total Indirect Base $

Estimated Cost

Note

Overhead [Enter Base of Application]

[●]% [●]% [●]% $[●] $[●] [#] or “N/A

G&A (add rows for other pools)

1. As shown above, for any indirect rate that deviates from the current approved NICRA rate, the offeror shall provide a numbered paragraph(s) that explains and justifies the proposed Fringe Benefit rate, along with references to any supporting indirect rate information, and enter that paragraph number in the “Note” column.

2. Basis of Proposed Indirect Rates

a. If the Offeror has indirect rates approved by an agency or department of the U.S.

Government, then the Offeror must submit the latest executed rate agreement as an attachment to this budget narrative.

b. If the Offeror is proposing with requested, but not approved, provisional rates or forward-pricing rates, the proposal must include:

i. The full detailed backup submitted in the indirect rate request to the government, including all attachments, schedules, and detailed pool and base compositions and rate calculations; and

ii. The offeror must nevertheless include a complete copy of its most current NICRA or other documentation from its cognizant Government Audit Agency, if any, stating the most recent approved provisional indirect cost rates.

c. If the Offeror does not have a cognizant Government Audit Agency and approved indirect rate agreement, the proposal must include the most recent two fiscal year pool and base cost compositions, along with derived rates, the bases of allocation of these rates, and an independent certified audit by a certified accounting firm of these rates.

X. Fee

(a) The offeror must propose a fixed fee appropriate for the Cost-Plus-Fixed-Fee type nature of this contract. The offeror must neither propose a fixed fee percentage above the statutory limit set forth in FAR § 15.404-4.

(b) The offeror must clearly explain their proposed fee rate and clearly explain the cost base upon which fee is applied.

SUBOFFEROR A, B, C, etc.

As provided in the above, the offeror must discuss each cost category under each proposed subcontract in separate subcontractor sections.