Cost Proposal Instructions-Assistance-UPDATED 20 Feb 10.doc

Revised 20 Feb 10

Det 8, AIR FORCE RESEARCH LABORATORY AFRL/PK

INSTRUCTIONS FOR PREPARING BUDGETS

(ASSISTANCE)

1. Offerors shall:

a. Provide these Instructions to all lower tier offerors. Proprietary data from lower tier offerors may be submitted directly to the Government in accordance with Proposal Preparation Instructions in this announcement. For purposed of these instructions, the terms “proposals” and “proposed” are synonymous with “budgets” and “budgeted”.

b. Furnish Tables 1 through 4 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 as applicable. Identify when the offeror’s fiscal year (OFY) begins and ends.

c. Provide a narrative that describes the work personnel identified in direct labor categories will perform.

d. Provide the following information as the first page of the proposal for the Prime and Each lower tier offeror.

i.

Name, title, telephone and fax numbers and e-mail address of offeror’s point 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. Submit a cost element summary by major cost element by OFY for the basic period of performance and each option (if applicable) using Table 1 format. 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 of proposed costs included in Table 1.

a. Direct Labor. Show each direct labor category proposed on a separate row. When job classifications or position titles (e.g. "Senior Scientist", "Technician", or "Lead Engineer") are used, provide narrative descriptions of related qualifications, duties, and responsibilities as an attachment to the cost proposal. In supporting rationale, identify the source and explain the derivation of the labor rate proposed for the first year in each labor category, and explain the methodology used to project each rate for subsequent years. 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.

If applicable, identify the proposed escalation factors applied to future estimates and rationale for the proposed factors.

b. Indirect Cost Rates and/or Factors. Identify all indirect cost rates (such as fringe benefits, labor overhead, material overhead, G&A, Cost of Money (COM), etc.) and applicable allocation bases by OFY. If separate indirect rates are proposed (i.e. several G&A rates) identify each base and provide calculation as to how calculated amounts were derived. If composite rates are used, provide the calculations used in deriving the composite rates. Identify the basis of proposed rates (e.g., Forward Pricing Rate Agreement and date of agreement, bidding rates and submission date, actual rates and effective date, billing rates and approval date, etc.). Note: Normally, neither G&A nor COM can be applied to costs that are included in the offeror’s Independent Research and Development account.

c. Lower Tier Offerors/Interorganizational Transfers (IOTs). Obtain budgets from each subcontractor and IOT (those actually performing labor hours) using the same cost element breakout required for Table 1 for the basic, each option (if applicable). Provide a list of anticipated Lower Tier Offerors/IOTs using Table 2. Perform and provide evaluation results of cost/price analysis of Lower Tier Offerors/IOT budgets. If decrement factors are used, explain their development and application. . NOTE: Budgets from all lower tier offerors are due by the closing date in this announcement.

d. Travel. Separately identify costs for travel for the basic and each option as applicable using Table 3. 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.

e. Material. Separately identify costs for material for the basic and each option as applicable using Table 4. 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, website URL etc). Provide a breakout and explanation of all other proposed ODCs by OFY.

f. Other Direct Costs (ODCs). Separately identify other direct costs to include consultants for the basic and each option or task order as applicable. 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). (Applicable only for subcontracts proposed.) 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. (Applicable only for subcontracts proposed.) Identify proposed fee base and rate.

i. 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/. 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.

*Do not include these costs for assistance at any tier.

TABLE 1

COST ELEMENT SUMMARY

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

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 by OFY for the basic, option (if applicable) for each year of performance.

**Do not include these cost for assistance at any tier - Applicable only to proposed subcontracts

TABLE 2

LOWER TIER OFFERORS/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

OFY or

Vendor/Source

ATTACH THIS PAGE TO THE FIRST PAGE OF YOUR BUDGET

BUDGET CHECKLIST

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

In accordance with the Instructions For Preparing Budgets, the following is provided with our Budget:

__ 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 Lower Tier and IOT budgets __ Fully disclosed Lower Tier and IOT proposals which includes Table 1 for each Lower Tier and IOT

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

__ Fully completed Table 2(s), listing all proposed Lower Tier and IOTs by basic, option and (as applicable) __ Fully completed Table 3(s), listing all proposed travel by basic, each option (as applicable) by OFY __ Fully completed Table 4(s), listing all proposed material by basic, each option (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