Attch 5 - Preparation of Cost Volume (V1).pdf

FA2487-23-S-B009

Attachment 5

Preparation of Cost Volume

9 Mar 2023

Complete the Cost Volume as shown in the Cost Breakdown Guidance. Some items may not apply to the proposed study. If not, do not provide information for those items. Enough information shall be provided to understand the company’s plan to utilize the requested funds, i.e., the purpose, necessity, and reasonableness of each expenditure.

Proposals submitted that exceed the maximum specified funding amount will potentially be considered ineligible for award.

For direct costs, include substantiating information such as vendor quotes, previous orders, historical data, etc. Costs without substantiating justification should be detailed through the cost estimating process. All substantiating evidence should be included as supporting documents as part of the cost volume. If selected for award, the Government may require further documentation to substantiate costs.

Information in the online Cost Volume form includes but is not limited to:

1. Direct Labor Costs: Identify key personnel by name, if possible, or by labor category if specific names are not available. The number of hours, labor overhead and/or fringe benefits, and actual hourly rates for each individual are required.

2. Direct Material Costs: Provide an itemized list including types, quantities, price, and, when appropriate purpose, for materials, parts, and supplies. If proposing direct material, justification information, including vendor quotes, historical costs, etc., should be included with cost volume.

3. Other Direct Costs: This category of costs includes specialized services such as machining or milling, special testing or analysis, and/or cost incurred in obtaining temporary use of specialized equipment. Proposals, which include leased hardware, must provide an adequate lease vs.

purchase justification or rationale. If proposing other direct costs, additional information can be included as Other Supporting Documents as part of the cost volume.

Travel: Include travel costs in “Other Direct Costs.” Travel costs must relate to the needs of the study. Break out travel cost by trip, number of travelers, airfare, per diem, lodging, etc. The number of trips required, as well as the destination and purpose of each should be included.

Recommend budgeting trips specified in the Statement of Objectives to the Air Force location for managing the contract. Estimation of travel costs need not be an overly onerous exercise, and actual travel cost may differ from your proposed travel. This information allows the Government

CO to ensure travel costs are not excessive.

Subcontracts: Include subcontractor/consultant costs in “Other Direct Costs.” Involvement of university or other consultants in the planning and/or research stages of the study may be appropriate. If so, describe in detail and include information in the Cost Volume. The proposed total of all consultant fees, facility leases or usage fees, and other subcontract or purchase agreements may not exceed one-third of the total contract price or cost, unless otherwise

FA2487-23-S-B009

Attachment 5 approved in writing by the Contracting Officer. Support subcontract costs with copies of the subcontract agreements. The supporting agreement documents must adequately describe the work to be performed. At a minimum, an applicant must include a corresponding detailed Cost

Volume for each planned subcontract.

Consultants: Provide a separate agreement letter for each consultant. The letter should briefly state what service or assistance will be provided, the number of hours required and hourly rate.

Special Tooling/Test Equipment/Material: The inclusion of equipment and materials will be carefully reviewed relative to need and appropriateness of the work proposed. The purchase of special tooling and test equipment must, in the opinion of the CO, be advantageous to the

Government and relate directly to the specific effort. Such items may include such items as innovative instrumentation and/or automatic test equipment. Title to property furnished or funded by the Government will be vested with the AF, unless determined that title transfer to the contractor is more cost effective than equipment recovery by the Government.

4. FCCOM: Facilities capital cost of money will be an allowable cost under the contemplated contract, if the criteria for allowability in FAR 31.205-10(b) are met. One of the allowability criteria requires the prospective Contractor to propose facilities capital cost of money in its offer.

If the prospective Contractor does not propose this cost, the resulting contract will include the clause Waiver of Facilities Capital Cost of Money.

5. Fee: A offeror shall not propose a price or fee that exceeds the statutory limitations, imposed by 10 U.S.C. 3322(b) and 41 U.S.C. 3905. For experimental, developmental, or research work performed under a cost-plus-fixed-fee contract, the fee shall not exceed 15 percent of the contract’s estimated, cost, excluding fee.

ROUND ALL COSTS TO THE NEAREST DOLLAR!