Attachment No. 2.docx

Det 8, AIR FORCE RESEARCH LABORATORY AFRL/PK

COST PROPOSAL INSTRUCTIONS

(FAR CONTRACTS)

1. Offerors shall:

a. Ensure the attached DET 8 AFRL Air Force Adequacy Checklist (AFPAC) be completed and submitted as part of your proposal. In addition, it is highly recommended that you flow this checklist to your subcontractors/affiliates where certified cost and pricing data is required and that you use the elements of the AFPAC to evaluate the adequacy of a subcontractor/affiliate proposal.

You are advised that the contracting officer may determine costs associated with revising/reworking inadequate cost proposals as unreasonable, and must consider the nature and extent of any proposal inadequacies when assessing/negotiating profit.

b. Prepare and submit cost or pricing data and supporting attachments in accordance with Table 15-2 of FAR 15.408. Further, the offeror shall (1) include the attached Air Force Proposal Adequacy checklist (AFPAC) in pre-submission proposal quality reviews, and (2) furnish the completed checklist as part of their proposal submission.

c. 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.

d. 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.

e. 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.

f. 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.

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.

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.

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 Form CASB-CMF 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.

ATCH: Det 8 AFRL AFPAC

TABLE 1

COST ELEMENT SUMMARY

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

COST ELEMENT

OFY 1

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

(List Separately)

XXXX

MATERIAL

XXXX

TRAVEL

XXXX

ODCs (List consultants separately)

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

Revised 2 Nov 10

Attachment No. 2 Air Force Proposal Adequacy Checklist (AFPAC)

REFERENCE

or N/A

Are all cost element breakdowns provided using TABLE 1?

FAR 15.408, Table 15-2

MATERIAL

SUBCONTRACTS (Purchased material or services)

INTERORGANIZATIONAL TRANSFERS

ADEQUATE PRICE COMPETITION

COMMERCIAL ITEM DETERMINATIONS

FAR 15.403-1 (b)(3) or (b)(5)

A. Of a type customarily available in the commercial marketplace (FAR 2.101 commercial item sub-definition (3)(i)) or

B. A minor modification (FAR 2.101 commercial item sub-definition (3)(ii)) of a type not customarily available in the commercial marketplace made to meet Federal Government requirements not exceeding the thresholds in FAR 15.403-1(c)(3)(iii)(B)? (see note below)

FAR 2.101

FAR 15.403-1

A. Information/data related to competition (refer to checklist item 15), B. Information/data related to prices (sales data, market price assessments, etc.), C. cost data (cost elemental breakdown and supporting documentation not subject to certification in accordance with FAR 15.406-2), and D. for subcontractor assertions, the prime contractor’s price analysis/price reasonableness determination?

FAR 15.402(a)(2), FAR 15.403-1(c)(3)(ii), FAR 15.403-3(c), FAR 15.404-3(b) FAR 15.404-3(c)

FAR 15.406-2

LABOR

OTHER DIRECT COSTS

NEW CONTRACTS (INCLUDING LETTER CONTRACTS)

CHANGE ORDERS, MODIFICATIONS AND CLAIMS

PRICE REVISIONS/REDETERMINATIONS

FACILITIES COST OR MONEY

RATES AND FACTORS

OTHER

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