CALL0001CostProposalInstructions-APC.doc

Det 8, AIR FORCE RESEARCH LABORATORY (AFRL)/PK

Cost Proposal Instructions (APC Anticipated)

1. Your proposal will be considered inadequate and may not be considered for award if the following is not accomplished. You must fully complete the applicable tables. Offerors shall:

a. Provide these Cost Proposal Instructions to anticipated subcontractors or interorganizational transfer (IOT). Proprietary subcontractor data must be submitted directly to the Government, if not included in the prime proposal, in accordance with Proposal Preparation Instructions in this announcement. The data is due by the closing date of this announcement.

b. Furnish Tables 1 and 2 for the entire period of performance (supported by rationale required by paragraph 2) in hard copy and on CD as IBM PC compatible, Microsoft Excel 2003 (or compatible Excel version) files, to include all cell formulas. Include a separate Cost Element Summary (Table 1) for each option or task order proposed.

c. Submit a copy of your cost proposal to your cognizant Defense Contract Audit Agency (DCAA) office upon submission of your cost proposal to the Air Force.

(1) Ensure that all rate data and estimating factors used in the proposal have been submitted for review by the cognizant DCAA prior to cost proposal submission.

(2) If your firm has never been reviewed by the cognizant DCAA office, or the forward pricing rates for your current fiscal year have not yet been reviewed, you MUST submit supporting documentation for your proposed direct and indirect rates, in accordance with FAR Table 15-2, to the cognizant DCAA office upon submission of your cost proposal to the Air Force.

d. Provide the following information as the first page of the proposal for the entire period of performance, including all options.

i.

Name, title, telephone and fax numbers and e-mail address of offeror’s point of contact, ii.

Amount proposed for basic effort and each option or task order, as appropriate, iii.

Name, address and telephone number of the cognizant DCAA and DCMA offices, iv.

Name, title, signature of authorized representative, v.

Date offer is submitted, expiration date of offer, and

vi. Cost Proposal Checklist (attach to first page of your proposal).

2. Submit a summary by major cost element for each task order, as appropriate, using the format in Table 1. The detail required for each of the major cost elements is described below. Disclose all elements of cost applicable to the proposed effort

a. Direct Labor. Show each proposed labor category on a separate row. Provide a detailed explanation of how your established labor estimating methodology was used in arriving at the proposed labor rates. Do not propose composites of category rates or ‘team rates’ unless full disclosures of those computations are provided with your proposal. Identify any uncompensated overtime rates.

b. Indirect Cost Rates and/or Factors. Identify when the OFY begins and ends. Disclose all indirect cost rates, including all Cost of Money factors, and applicable allocation bases. Do not propose composites of OFY indirect rates or factors.

c. Subcontracts, IOTs. Consultants. Provide a list of proposed subcontractors, IOTs and consultants using Table 2. Obtain cost proposals using these same instructions for each subcontract, IOT or consultant. For subcontracted efforts that are below 25% of the total price, provide Table 1 only. Provide your evaluation of each proposal for cost reasonableness. NOTE: Subcontractor and IOT proposals and prime contractor analyses of all subcontractor and IOT prices are due by the closing date identified in this announcement.

In accordance with DFARS 252.215-7004, Excessive Pass-Through Charges – Identification of Subcontract Effort (Apr 2007), the offeror’s proposal shall exclude excessive pass-through charges. To comply with this provision, the contractor shall provide the following information:

(1) The offeror shall identify in its proposal the percent of effort it intends to perform, and the percent expected to be performed by each subcontractor, under the contract, task order, or delivery order.

(2) If the offeror intends to subcontract more than 70 percent of the total cost of work to be performed under the contract, task order, or delivery order, the offeror shall identify in its proposal—

(i) The amount of the offeror’s indirect costs and profit applicable to the work to be performed by the subcontractor(s); and

(ii) A description of the value added by the offeror as related to the work to be performed by the subcontractor(s).

(3) If any subcontractor proposed under the contract, task order, or delivery order intends to subcontract to a lower-tier subcontractor more than 70 percent of the total cost of work to be performed under its subcontract, the offeror shall identify in its proposal—

(i) The amount of the subcontractor’s indirect costs and profit applicable to the work to be performed by the lower-tier subcontractor(s); and

(ii) A description of the value added by the subcontractor as related to the work to be performed by the lower-tier subcontractor(s).

d. Material, Travel, and Other Direct Costs (ODCs). Separately identify costs for travel, material and other direct costs required to perform the basic effort and each option. Provide a breakout of travel costs for each OFY including the purpose and number of trips, origin and destination(s), duration, and travelers per trip. Provide an itemized, priced list of all proposed equipment, materials and supplies for each OFY. Provide information regarding the basis of estimates (i.e. vendor quotes, purchase orders, engineering estimates, etc). Provide a breakout and explanation of all other proposed ODCs by OFY.

e. Cost of Money (COM). Refer to FAR 52.215-16, Facilities Capital Cost of Money. Provide a schedule which contains proposed cost of money (COM) factors, if applicable, to include a display of all individual bases for the COM amounts. Submit a DD Form 1861 for each OFY.

f. New Mexico Gross Receipts Tax (NMGRT). NMGRT may be applicable to the proposed effort. For assistance in determining the extent to which NMGRT may apply and applicable rates, contact the New Mexico Taxation and Revenue Department, 5301 Central Ave., NE, PO Box 8485, Albuquerque, NM 87198, (505) 841-6200, http://www.state.nm.us/tax/. Disclose tax calculation in Table 1.

TABLE 1

COST ELEMENT SUMMARY [SAMPLE]

Beginning OFY*

Ending OFY*

PROPOSEDAMOUNT

DIRECT LABOR

(List each direct labor category separately.)

XXXX

XXXX

SUBCONTRACTS, IOTS, CONSULTANTS (List Separately)

XXXX

MATERIAL

XXXX

TRAVEL

XXXX

ODCs

XXXX

SUBTOTAL COSTS

XXXX

TOTAL COST & FEE

XXXX

TOTAL PRICE

XXXX

*Submit a cost element summary for Offeror’s fiscal year of performance.

TABLE 2

SUBCONTRACT/INTERORGANIZATIONAL TRANSFERS & CONSULTANTS

PRICE SUMMARY

TOTALS

**Identify Statement of Work or Work Breakdown Structure or provide a narrative explanation as an addendum.

ATTACH THIS PAGE TO THE FIRST PAGE OF YOUR PROPOSAL

COST PROPOSAL CHECKLIST

Place a check by the appropriate items. Write “n/a” next to the item if not applicable.

In accordance with the Cost Proposal Instructions, the following is provided with our proposal:

__ EXCEL spreadsheets of all applicable tables, on CD ROM WITH FORMULAS.

Spreadsheets merely representing hard number inputs are not acceptable.

__ Cost/price analyses of all subcontract and IOT proposals

__ Fully-disclosed subcontract, consultant and IOT proposals which exceed 25% of the prime contract price

__ Subcontract, Consultant and IOT proposal below 25%, Table 1 only

__ Subcontract information in accordance with DFARS 252.215-7004, Excessive Pass-Through Charges – Identification of Subcontract Effort (Apr 2007)

__ Fully completed Table 1(‘s), by basic period and each option or task order

__ Fully completed Table 2(‘s), listing all proposed subcontractors, consultants, and IOTs

__ Support for any proposed ODCs

__ Consultant rates and description of effort

__ Computations of any composite or team labor rates

The period of performance for each task order, as appropriate is: