Attachment_11_-_Cost_Proposal_Instructions_Non-APC.docx

COST PROPOSAL

INSTRUCTIONS

FAR Requirement (Non-APC)

DET 8 AFRL/RVK

3550 ABERDEEN AVE SE

KIRTLAND AFB, NM 87117

1.

GENERAL INSTRUCTIONS:

A. When cost or pricing data is required, prepare and submit the cost proposal in accordance with Table 15-2 of FAR 15.408.

B. Provide complete responses to the attached Contractor Information document for the Prime and each Subcontractor. If preferred by the offeror, the responses to the information requested may be provided on a similar form or listed on the first page of the cost proposal. (Attachment 1) C. For sole-source situations when the value will exceed the threshold for obtaining certified cost or pricing data, ensure the DET 8 AFRL, Air Force Adequacy Checklist (AFPAC) is completed and submitted as part of the proposal. (Attachment 2) D. Indicate whether Government approval of respective accounting, estimating, and purchasing systems has been obtained. If so, provide evidence of such approval.

E. Round all dollar amounts to the nearest dollar. Round all labor rates to the nearest penny.

F. Furnish Tables 1 thru 4 (sample tables are at paragraph 3 below), or in the contractor’s format containing the information outlined in these instructions, 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 each contract line item (CLIN), for the basic and each option or task order as proposed. (For purposes of these instructions, CLIN refers to contract line items that are required to be priced separately.)

G. Provide all cost summaries by OFY.

NOTE: In accordance with DFARs 215.404-71-2(e)(3)(i), poor quality, untimely proposals, failure to provide an adequate analysis of subcontractor costs, hindrance of the evaluation and negotiation of the proposal, a marginal estimating system, and submission of an inadequate proposal will adversely impact the assignment of values under weighted guidelines and the resultant fee amount.

2. PROPOSED COST ELEMENTS:

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. Explain the basis of estimate for each cost element to include the basis for proposed rates. As applicable, provide the following information for each cost element. If a portion of the required information is not applicable for a particular cost element, so state.

A. DIRECT COSTS:

(1) DIRECT LABOR:

(2) SUBCONTRACTS/INTER-ORGANIZATIONAL TRANSFERS (IOTs):

NOTE: Highly recommend the offeror provide these cost proposal instructions to all subcontractors. Fully disclosed Subcontractor/IOT proposals are required for ALL subcontractors (including Tables 1 thru 4), and must be submitted to the government by the closing date identified in this solicitation.

It is especially important that adequate data on subcontractors be provided. Rates are particularly important. Note that the absence of adequate data on subcontractors is a frequent source of prime contractor inadequate proposals and avoidable delay in contract award.

(a) As part of Table 1, list each subcontractor/IOT cost separately by OFY by CLIN.

(b) Obtain cost or pricing data from prospective sources for those exceeding the threshold set forth in FAR 15.403-4 ($700,000) and not otherwise exempt, in accordance with FAR 15.403-1(b) (i.e., adequate price competition, commercial items, prices set by law or regulation or waiver).

(c) Provide a list of anticipated subcontractors/IOTs using Table 2.

To ensure compliance with FAR 52.215-22, Limitations on Pass-Through Charges - Identification of Subcontract Effort: Use 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, comply with the requirements of the provision.

(d) Provide an analysis of the proposed subcontract in accordance with FAR 15.404-3(b). Provide an analysis concerning the reasonableness, realism and completeness of each subcontractor’s proposal. Explain the use of decrement factors if applied. If the analysis is based on comparison with prior prices, identify the basis on which the prior prices were determined to be reasonable. If the subcontract exceeds the TINA threshold and no exception applies, the cost analysis should include, but not be limited to, an analysis of: materials, labor, travel, other direct costs and proposed profit or fee rates. Differences between the subcontractor/IOT proposed amounts and the prime contractor proposed amounts must be fully explained.

(e) In accordance with FAR 15.404, Table 15-2 IIA(1), obtain competition to the maximum extent practicable when selecting subcontractors.

(i) If the offeror has obtained competitive quotes from potential subcontractors, provide copies of the quotes.

(ii) If the offeror has selected other than the low subcontractor bid for inclusion in their proposal or intends to award the subcontract effort on a sole-source basis, provide rationale for that decision.

(iii) If the subcontractor is not yet determined, include a list of the tasks to be performed, an explanation of the method used to estimate the subcontract price, and the reason proposals/quotes cannot be requested/provided at this time.

(f) 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.

(g) If the IOT is proposed at other than cost, provide support in accordance with FAR 31.205-26(e).

(3) CONSULTANTS:

(a) If the offeror proposes the use of consultants, provide the following FOR EACH NAMED CONSULTANT:

(1) The specific project or area in which such services are to be used.

(2) Identification of all cost elements included in the consultant's costs. (i.e.: number of hours, the consultant's rate per hour, plus a detailed explanation of any costs that would be charged over and above labor costs

(3) A signed consulting agreement between the offeror and the consultant to include a statement from the consultant that the proposed rate is a "most favored customer rate,” or the reason such a rate was not offered.

(4) A determination by the offeror that the rate proposed is comparable to the rates of other consultants doing similar types of work.

(b) In those cases where a consultant IS NOT NAMED but the offeror realizes a need will exist, support the proposed consultant rate by supplying a basis of estimate and source documentation to support the proposed rate.

(4) MATERIALS (if not Baselined):

(a) As part of Table 1, list total material/equipment costs by OFY by CLIN. Using Table 4, provide a more detailed consolidated priced summary of individual material/equipment quantities and the basis for pricing by OFY, by CLIN. As part of the basis of estimate narrative, provide information regarding the rationale/methodology used to derive the proposed material/equipment estimate.

(b) Include raw materials, parts, components, assemblies, special tooling or test equipment, and services to be produced or performed by others.

(c) If a purchase order exceeds the TINA threshold, provide an analysis in accordance with FAR 15.404-3(c).

(d) Provide copies of supporting documentation (Purchase Orders, Vendor Quotes, Invoice Prices, Catalog Prices, or Historical Information) to substantiate a MINIMUM of 70% of the proposed material costs.

Specifically, provide supporting documentation for the highest unit prices.

(5) OTHER DIRECT COSTS (ODCs) (if not Baselined):

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. Provide rationale for proposed other direct costs.

(a) ODCs - Travel

i. Identify the following information for each trip: location of origin and destination; number of travelers;

duration; airfare cost; rental car cost; per diem (meals and lodging) cost; any other costs.

ii. As part of Table 1, list travel costs by OFY by CLIN. Using Table 3, separately identify costs for travel.

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 purpose/rationale for the proposed trips, basis for the proposed travel rates and whether the proposal complies with FAR 31.205-46(a)(2).

(b) ODCs - Other

i. Using Table 4, identify and provide a detailed description of any other direct costs that do not fit into the ODC categories above, including the basis for determining those costs (e.g., vendor quotes, catalog pricing data, company estimating procedures, etc.).

ii. Provide an explanation/rationale for all other proposed ODCs.

B. INDIRECT COSTS

(1) As part of Table 1, list the proposed base, rate/factor and calculated amount for each indirect cost by OFY, by CLIN.

(2) As part of the basis of estimate narrative, identify all indirect cost rates/factors (such as Fringe Benefits, Labor Overhead, Subcontractor/Material Overhead, G&A, Facilities Capital Cost of Money (FCCOM), etc.) and the applicable allocation bases.

(3) 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.). Submit source data for all proposed indirect rates. If evidence of FPRA, FPRR, approved Provisional Billing Indirect Rates, or recent DCAA audited indirect rates are not available for submission, submit the following source data in order of preference, certified incurred cost submissions, or budgetary data to include details of the indirect rate cost pools, or supporting historical trend data.

(4) Address whether or not the proposed indirect rates consider a change in Business Base pending award of this effort. Provide support data for the impact to indirect rates if applicable.

(5) If proposing FCCOM, submit a properly executed DD Form 1861. Provide the basis for proposed percentage of land buildings and equipment.

(6) Identify any other indirect cost element being proposed which has not been included above and identify the various cost elements for which the rate is applied.

C. FEE

Identify the Fee rate(s) and the total Fee cost proposed and identify the various cost elements for which the Fee is being applied. Explain the basis for the proposed rate and application base.

D. NEW MEXICO GROSS RECEIPTS TAX (NMGRT)

(1) 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.

(2) As part of Table 1, list the proposed base, rate/factor and calculated amount for each NMGRT line item cost by OFY, by CLIN.

(3) Identify the location(s) where the work will be performed, whether nexus applies, and where the final deliverables will be initially used.

E. BASELINED OTHER DIRECT COSTS (ODCS) if specified in the solicitation:

Acknowledge whether the offer complies with the CLIN description of baselined ODCs.

3. SAMPLE COST PROPOSAL TABLES (Revise to comply with established accounting practices):

A. Table 1 (Sample): Cost Element Summary. If applicable, list each Subcontractor and IOT separately.

B. TABLE 2 (Sample): SUBCONTRACTORS/IOTs

C. TABLE 3 (Sample): TRAVEL

D. Table 4 (Sample): BILL OF MATERIALS & ODCs (other than Travel & Consultants)

Det 8 AFRL/RVK Cost Proposal Instructions Det 8 AFRL/RVK Cost Proposal Instructions

Revised: 8 Apr 13 Page 1 of 12 Revised: 8 Apr 13 Page 2 of 7

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