Attachment I-15 (Example for Actual Utilization).pdf
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- Attached to
- Request for Proposal (RFP) NASA Transformational Shared Services (NTSS) Federal contract opportunity
- Solicitation number
- 80NSSC23R0001
About this file
This document provides an example of an end of contract year modification reflecting actual utilization under a federal contract for transactional services. The modification would occur approximately 75 days after the completion of each contract year to revise the quantity and pricing for each transactional service based on actual usage reported in the previous month. The pricing for each service is set in bands tied to volume, with the final contract value determined by the band the actual utilization quantity falls into. Three scenarios are provided demonstrating how the contract would be modified if actual usage was higher than ordered (favoring the government), lower than ordered (favoring the contractor), or unchanged from the ordered amount. Revisions would include credit or additional invoicing as needed to make the final contract value align with the actual utilization quantity within the applicable pricing band for each service.
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Text version
NTSS 80NSSC23R0001
Attachment I-15
EXAMPLE OF END OF CONTRACT YEAR MODIFICATION TO REFLECT ACTUAL
UTILIZATION
Approximately 75 days after the completion of each contract year (October 30 th
), the Government will execute a bilateral modification to the contract revising the quantity of transactions for each individual Transactional Service to reflect actual utilization by the
Government for that contract year. Actual utilization figures used in this modification will be obtained from DRD 2.5-2, Contract Performance (Metrics) Report for the month of September.
The firm fixed price rate and total value for each individual Transactional Service (by CLIN) will also be revised to reflect the actual utilization figures, applicable Service Rate Band from
Attachment I-13, Labor and Transaction Rates, and the associated recalculation of a total value amount.
Table One: Hypothetical Accounts Payable Bands
Accts Payable 3.1.1
CY1, FY24
Band One 0-49,999
Band Two 50,000-99,999
Band Three 100,000-Above
Cost Per Transaction $2.25 $2.00 $1.75
The end of year contract value for each transactional service will be determined by which band the final utilization figure falls under for that service. For example, end of contract year utilization of 105,000 Accounts Payable transactions using the hypothetical bands and prices found in table one above would result in a final value of $183,750 for that service. Final value for each transactional service is not determined by the amount of utilization within each band.
CORRECT INCORRECT
105,000 X $1.75 = $183,750 49,999 X $2.25 = $112,497.75
50,000 X $2.00 = $100,000 5,000 X $1.75 = $8,750
Total Value for CLIN = $183,750 Total Value for CLIN = $221,247.75
The following three scenarios are based on an example of the Government ordering 75,000
Accounts Payable transactions at the hypothetical price per transaction rates found in table one above:
Scenario One: No Adjustment
The Government orders 75,000 Accounts Payable 3.1.1 transactions for Contract Year One
(CY1.) at $2.00 per transaction. The amount of total utilization for 3.1.1 for CY1 is 74,500.
CLIN WBS Description Quantity Unit
FFP
Rate Total Value
(modified)
3.1.1 Accounts Payable 74,500 Ea. $2.00 $149,000
TOTAL $149,000
The Contractor has invoiced as transactions were completed. The Contract would be modified to decrease the value of WBS 3.1.1 to represent a quantity of 74,500, but there would be no credit due to the Government or additional invoice from the Contractor because the utilization for the year ended in the range of band two and all transactions have already been invoiced at the appropriate FFP Rate.
Scenario Two: Adjustment Favoring Government
The Government orders 75,000 Accounts Payable 3.1.1 transactions for CY1 at $2.00 per transaction. The Contractor invoices as the transactions are completed. During CY1, the
Government orders another 30,000 transactions. CLIN one would be modified at the time of the order to represent the new value (note that in accordance with Clause G.7(d) all transactions are valued and invoiced at the band two price until the end of the CY.)
CLIN WBS Description Quantity Unit
FFP
Rate Total Value
(modified)
3.1.1 Accounts Payable 105,000 Ea. $2.00 $210,000
TOTAL $210,000
After twelve months, final utilization for 3.1.1 was 105,000, placing it in band 3. The Contractor has already invoiced for $210,000 (105,000 X $2). The value for 3.1.1 would be adjusted as follows:
CLIN WBS Description Quantity Unit
FFP
Rate Total Value
(modified)
3.1.1 Accounts Payable 105,000 Ea. $1.75 $183,750
TOTAL $183,750
The Contractor would owe the Government a credit of $26,250 ($210,000-$183,750).
Scenario Three: Adjustment Favoring Contractor
The Government orders 75,000 Accounts Payable 3.1.1 transactions for CY1. The Contractor bills as the transactions are completed.
CLIN WBS Description Quantity Unit
FFP
Rate Total Value
1 3.1.1 Accounts Payable 75,000 Ea. $2.00 $150,000
TOTAL $150,000
Final utilization for 3.1.1 was 48,000, placing it in band 1. Therefore the value would be adjusted as follows:
CLIN WBS Description Quantity Unit
FFP
Rate Total Value
(modified)
3.1.1 Accounts Payable 48,000 Ea. $2.25 $108,000
TOTAL $108,000
Although the value has decreased from $150,000 to $108,000, the Contractor has only invoiced
$96,000 (48,000 X $2). Therefore, the Contractor would invoice the Government for an additional $12,000 ($108,000 -$96,000).
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