Attachment 1_Cost Proposal Instruction - FAR Contracts.doc

Revised 24 Aug 10

Det 8, AIR FORCE RESEARCH LABORATORY AFRL/PK

(FAR CONTRACTS)

1. Offerors shall:

a. Provide these Cost Proposal Instructions to all subcontractors. Proprietary subcontractor data may be submitted directly to the Government in accordance with Proposal Preparation Instructions in this announcement.

b. Furnish Tables 1 thru 4 (examples attached) for the entire performance period (supported by rationale required by paragraph 2) in hard copy and on CD as IBM PC compatible, Microsoft Excel, to include all cell formulas. Include a separate Cost Element Summary by Offeror Fiscal Year (OFY) for the basic and each option or task order as proposed. Identify when the OFY begins and ends.

c. Ensure that all rate data and estimating factors used in the proposal have been submitted for review to the cognizant Defense Contract Audit Agency (DCAA) and Defense Contract Management Agency (DCMA) prior to cost proposal submission.

d. Provide copies of recent audits or Forward Pricing Rate Recommendations (FPRRs), Forward Pricing Rate Agreements (FPRAs) etc. to support proposed rates and factors and evidence to support the adequacy of accounting, estimating, and purchasing systems as applicable.

e. Provide the following information as the first page of the proposal for the Prime and Each Subcontractor.

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 iii.

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

Name, title, signature of authorized representative v.

Date offer is submitted and expiration date of offer

vi. DUNS Number

vii. CAGE Code

2. Using the format in Table 1, submit a cost element summary by major cost element by OFY for each contract line item (CLIN) (i.e. basic period of performance and each option (if applicable) and/or Task, etc.). The detail required for each major cost element is described below. Address all cost elements applicable to the proposed effort and provide a narrative to support the basis of estimate.

a. Direct Labor. As part of Table 1, list the proposed hours, rates, and calculated amounts for each direct labor category by OFY, by CLIN. As part of the basis of estimate narrative, provide rationale for proposed hours and labor mix, and provide the base labor rates for each category. Identify the source of the base rates and explain the methodology used to project each rate for subsequent years. If applicable, identify the proposed escalation factors applied to future estimates and rationale for the proposed factors.

Note: If temporary or part-time labor is proposed, explain the differences between the pay rates for full-time and temporary or part-time workers, and the impact of those differences on the direct rates proposed. Identify all uncompensated labor (straight time and/or overtime) included in this cost element, and explain the impact of uncompensated time on direct rates proposed.

b. Indirect Cost Rates and/or Factors. As part of Table 1, list the proposed base, rate/factor and calculated amount for each indirect cost by OFY, by CLIN. As part of the basis of estimate narrative, identify all indirect cost rates/factors (such as fringe benefits, labor overhead, material overhead, G&A, Cost of Money (COM), etc.) and applicable allocation bases by OFY. If composite rates are used, provide the calculations used in deriving the composite rates. Identify the basis of proposed rates (e.g., FPRA and date of agreement, bidding rates and submission date, actual rates and effective date, billing rates and approval date, etc.).

c. Subcontracts/Interorganizational Transfers (IOTs). As part of Table 1, list each subcontractor/IOT cost separately by OFY by CLIN. Obtain fully disclosed cost proposals from each subcontractor and IOT (those actually performing labor hours) using the same cost element breakout required for Table 1 by OFY for each CLIN. Provide a list of anticipated subcontractors/IOTs using Table 2. As part of the basis of estimate narrative, IAW FAR 15.404-3(b) perform and provide evaluation results of cost/price analysis for each subcontract proposal. If subcontractors were selected on a sole-source basis, provide the rationale for this decision. Differences between the subcontractor/IOT proposed amounts and the prime contractor proposed amounts must be fully explained. If decrement factors are used, explain their development and application. If the proposed subcontractor’s fee rate is higher than the Prime’s fee, provide rationale as to why the subcontractor’s risk is greater than the Prime’s. NOTE: Fully disclosed Subcontractor/IOT proposals (including Tables 1 thru 4) are due by the closing date identified in this announcement.

In accordance with FAR 52.215-22, Limitations on Pass-Through Charges - Identification of Subcontract Effort: The contractor shall utilize Table 2 to identify the cost of work to be performed by each subcontractor by contract or task order as applicable. If the offeror subcontracts more than 70 percent of the total cost of work to be performed the contractor must comply with the requirements of the provision.

d. Material/Equipment. As part of Table 1, list material/equipment costs by OFY by CLIN. Using Table 4, provide a consolidated priced summary of individual material/equipment quantities and the basis for pricing (vendor quotes, invoice prices, etc.) by OFY by CLIN. For all items proposed, identify the item and show the source, quantity and price. As part of the basis of estimate narrative, provide information regarding the rationale/methodology used to derive the proposed material/equipment estimate.

e. Travel. As part of Table 1, list travel costs by OFY by CLIN. Using Table 3, separately identify costs for travel including the purpose and number of trips, origin and destination(s), duration, and travelers per trip by OFY by CLIN. Note that Table 3 is a summary format and may be expanded to include more detailed travel rate information and calculations. As part of the basis of estimate narrative, provide a listing of all proposed travel rates (if not already provided as part of Table 3). Provide the basis for the proposed travel rates and rationale for the proposed trips.

f. Other Direct Costs (ODCs). As part of Table 1, list ODC costs by OFY by CLIN. As part of the basis of estimate narrative, separately identify other direct costs to include consultants. Provide rationale for proposed other direct costs. Also, provide the source, quantity, price, and rationale for each of the proposed ODCs. If proposing consultants, provide consultant agreements to validate proposed rates and a determination by the offeror that the rate proposed is comparable to other consultant rates for work of similar nature. Substantiate the need for proposed consultant services.

g. Cost of Money (COM). Reference paragraph 2b above. Also, 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. A DD Form 1861 for each OFY must be submitted if proposing COM.

h. Fee. Reference paragraph 2b above. Identify proposed fee base and rate.

i. New Mexico Gross Receipts Tax (NMGRT). Reference paragraph 2b above. 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.tax.newmexico.gov/All-Taxes/Pages/Gross-Receipts-Tax.aspx. Identify the cost elements and amounts included in the NMGRT base, if applicable. Demonstrate the method of calculating total tax dollars included in the proposal.

TABLE 1

COST ELEMENT SUMMARY

NOTE: THIS IS A SAMPLE TABLE - ALL OFFERORS SHOULD PROPOSE IN ACCORDANCE WITH THEIR APPROVED ACCOUNTING PRACTICES.

BASE

OFY 1

RATE

OFY 1

AMT

OFY 2

BASE

OFY 2

RATE

OFY 2

AMT

TOTAL

BASE

AMOUNT

TOTAL

PROPOSED

AMOUNT

DIRECT LABOR

(List each direct labor category separately.)

SUBCONTRACTS, IOTS, CONSULTANTS

(List Separately)

XXXX

MATERIAL

XXXX

TRAVEL

XXXX

ODCs

XXXX

SUBTOTAL COSTS

XXXX

COST OF MONEY

(See DD Form 1861)

TOTAL COST & FEE

XXXX

TOTAL PRICE

XXXX

*Submit a cost element summary by OFY for each CLIN, basic, option and each Task Order, as appropriate, for each 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.

TABLE 3

TRAVEL SUMMARY

TABLE 4

BILL OF MATERIALS/EQUIPMENT

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 proposals

__ Fully-disclosed subcontracts and IOT proposals which includes Table 1-4 for each subcontracts and IOT

__ Prime analysis for every proposed subcontractor __ Subcontract information in accordance with FAR 52.215-22, Limitations on Pass-Through Charges – Identification of Subcontract Effort

__ Fully completed Table 1(s), by basic and each option or task order (as applicable) by OFY

__ Fully completed Table 2(s), listing all proposed subcontractors and IOTs by basic, option and task order (as applicable) __ Fully completed Table 3(s), listing all proposed travel by basic, each option or task order (as applicable) by OFY __ Fully completed Table 4(s), listing all proposed material by basic, each option or task order (as applicable) by OFY _ Support for any proposed ODCs to include consultant agreements on all proposed consultants __ Computations of any composite indirect rates or team labor rates

__ Fully Completed DD1861’s (if proposing COM) for each OFY by basic and each option or task order (as applicable)