Attachment O Coeffecient Explained.pdf

“COEFFICIENT: Means a numerical factor that represents costs (generally indirect costs) not considered to be included in “Construction Task Catalog” unit prices, e.g. general and administrative and other overhead costs, insurance costs, bonding and alternative payment protection costs, protective clothing, equipment rental, sales tax and compliance with tax laws and contractor’s and subcontractor’s profit. Contingent costs, such as labor rate changes and inflation in option years are also covered in the coefficient. Coefficients proposed by offerors are multiplied by the Government-established unit prices in the Construction Task Catalog

(Commonly referred to as a Unit Price Book) to price a job or project on individual task orders.

The Coefficient(s) proposed by the offeror and accepted by the Government are incorporated in JOC. The contractor’s price coefficient must include, but is not limited to the following:

o Contractor’s overhead and profit o Subcontractors’ overhead and profit o Insurance o All costs associated with bonding (specifically including bond premiums) o Employee payroll taxes, insurance, and fringe benefits o All taxes, contributions, memberships, corporate headquarters support (legal, financial, etc.)

o Sales tax on material and equipment costs o All waste and excess material o Protection of existing surfaces o Daily clean up o Final professional project clean-up.

o Mobilization and close out for the total contract and each task order o Compliance with environmental laws (overhead

[indirect] costs associated with performing work in compliance with EPA/OSHA regulations, including obtaining any necessary licenses and permits, reporting requirements, etc.)

o Traffic and work site signs and barriers o Basic safety and warning signage, minor barricades, tape, etc.

o Project management and supervision o Working in extreme temperatures (below or above normal) or adverse conditions such as excessive rain, wind, sleet or snow o Removing and returning Owner's furniture and furnishings o Quality control o Office management and equipment o Office and management personnel o Office space o Office equipment o Office and management personnel o Office supplies o Employee transportation o Project trailer o Project Equipment & Supplies o Portable toilets for Contractor’s Use o Construction vehicles o Gang boxes and storage containers for

Contractor's tools, equipment and materials.

o Meeting Owner security requirements.

o Personnel safety equipment o Depreciation of mobile office(s) o Interest associated with funding of equipment and payroll o Cost of financing the work o Preparation and modification of sketches, drawings, submittals, as-built drawings, and other project records.

o Incidental engineering and architectural services.

o Permits, licenses, and fees, including Services required to obtain any filings and permits.

o Include testing, calibration, balancing and the like required to ensure proper installation, construction and performance o Other risks of doing business (i.e. risk of a lower than expected contract dollar value, risk of a high inflation cost if factors are bid for option years, risk of poor subcontractor performance and re-performance)

All components of price shall be included in the offeror's coefficient and shall be fully supported as no allowance for omitted cost will be made later. CONSIDER CONTRACT OVERHEAD FULLY

AND THOUGHTFULLY. REVIEW THE GORDIAN PRICE BOOK (CTC) AND USE AS INPUT TO YOUR

EVALUATION PROCESS.

To request access to the UPB please contact Kelli Vetter at k.vetter@gordian.com; and Neil Tuck at n.tuck@gordian.com.

mailto:k.vetter@gordian.com mailto:n.tuck@gordian.com