BPM006394_Solicitation_Attachment_13__Pricing_Document_BAFO.pdf

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Attached to
Master Agreement AZ|CTR074824
Contract number
CTR074824
Issued by
Arizona

About this file

The document is a Request for Proposal (RFP) for Brownfields Environmental Site Assessment Services, issued by the Arizona Department of Environmental Quality (ADEQ) located in Phoenix, Arizona. The solicitation number is BPM006394, and the primary offeror is Terracon, a large national consulting firm experienced in Federal, State, and local government contracts.

The RFP seeks environmental site assessment services with a detailed pricing methodology that includes calculating hourly rates based on average salary, overhead rate (199.72%), fixed fee (10%), and facilities capital cost of money (FCCM) rate (0.85%). As an example, for the Professional Level VI classification, Terracon proposed an hourly rate of $195.00, which represents a 24% reduction from the calculated base hourly rate of $256.65. The pricing document requires offerors to complete both a Word attachment and an Excel pricing sheet, with failure to do so potentially resulting in offer rejection. Pricing is to be submitted on an all-inclusive basis, covering labor rates, benefits, insurance, taxes, overhead, and administrative costs, with ADEQ specifying they will not reimburse any costs beyond the rates contained in the pricing schedule.

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Text version

Request for Proposal

Solicitation No. BPM006394 Brownfields Environmental Site

Assessment Services

Arizona Department of

Environmental Quality

1110 W. Washington St.

Phoenix, AZ 85007

Attachment 13 – Pricing Document “Best and Final Offer”

Offeror to complete ALL ITEMS in Attachment 13 - Pricing Document in its entirety. In addition, Offeror is to complete the Excel Pricing Sheet, which includes the hourly personnel classifications. Both Attachment 13 (this Word document) and Attachment 13 – Pricing Sheet (Excel document) must be completed and attached to the offer to be valid.

Failure to return a completed Word Attachment 13 - Pricing Document AND the Excel Attachment 13 – Pricing Sheet may result in the rejection of the offer.

Offeror shall complete the Line Item in the Items (F) tab in the Arizona Procurement Portal

(APP) system by inputting one-dollar ($1.00) in the “Unit Price” field to ensure offer submission for the Offer to be considered.

Pricing shall be submitted on an all-inclusive basis and shall include all costs associated with performance of the Scope of Work, including without limitation, labor rate, labor benefits, payroll burden, insurance, Workman’s Compensation, fees, all taxes, profit, overhead (including repairs and maintenance if applicable), administrative costs, reporting and all other related cost factors for services offered in response to this solicitation. ADEQ will not reimburse any item other than the all-inclusive rates contained in the Pricing Schedule. The Pricing Schedule is not meant to indicate all costs related to additional services.

Indicate whether organization will offer a prompt payment discount, please complete one or more that will apply:

DISCOUNT WILL BE ____% IF ADEQ PAYMENT ISSUANCE DATE TO CONTRACTOR IS WITHIN SEVEN (7) CALENDAR

DAYS FROM ADEQ’S RECEIPT OF INVOICE.

DISCOUNT WILL BE ____% IF ADEQ PAYMENT ISSUANCE DATE TO CONTRACTOR IS WITHIN TEN (10) CALENDAR

DISCOUNT WILL BE ____% IF ADEQ PAYMENT ISSUANCE DATE TO CONTRACTOR IS WITHIN ____ (__) CALENDAR

Offeror to include one or two paragraph(s) describing how Offeror derived pricing proposed in Pricing Document.

Offeror Response:

As a large national consulting firm, Terracon works on a variety of Federal, State, and local government contracts, some of which are subject to the Davis-Bacon Act and related regulations and guidance. Therefore, we continually calculate and document our overhead rate and facilities capital cost of money (FCCM) in accordance with applicable Federal and

State acquisition requirements. These rates, in addition to the average salary rate of personnel expected to work on this Brownfields Environmental Site Assessments contract and a Fixed Fee, are used to calculate the base salary rate.

Request for Proposal

Solicitation No. BPM006394 Brownfields Environmental Site

Assessment Services

Arizona Department of

Environmental Quality

1110 W. Washington St.

Phoenix, AZ 85007

Attachment 13 – Pricing Document continued “Best and Final Offer”

The proposed Brownfields Environmental Site Assessment contract rates are then calculated by reducing the base salary rate by up to 33 percent to provide competitive rates to the

Arizona Department of Environmental Quality (ADEQ) and to demonstrate Terracon’s commitment to remain a team member on the Brownfields Environmental Site Assessment contract.

Average salary rates were calculated by first identifying the technical, field, and administrative staff that are likely to work on this project. These individuals were classified in accordance with the minimum qualifications, responsibilities, and education listed in the Pricing Sheet

(Attachment 13 of the Request for Proposal) and the average salary of the individuals in each classification was calculated. The base hourly rate was then calculated using the average salary, overhead rate (199.72%), fixed fee (10%), and FCCM rate (0.85%). The calculation of the hourly rate for the Professional Level VI classification of $215.00 is illustrated as follows:

Base Hourly Rate (Professional Level VI) = Salary Rate + Overhead Fee + Profit + FCCM Fee where:

Salary Rate = $77.65

Overhead Fee (Professional Level VI) = Salary Rate X Overhead Rate = ($77.65)(199.72%) =

$155.07

Profit = (Salary Rate + Overhead Fee) X Fixed Fee = ($77.65 + $155.07) X 10% = $23.27

FCCM Fee = Salary Rate X FCCM Rate = ($77.65)(0.85%) = $0.66

Base Hourly Rate (Professional Level VI) = $77.65 + $155.07 + $23.27 + $0.66 = $256.65

Proposed Brownfields ESA Hourly Rate (Professional Level VI) = $195.00 (24% reduction of

Base Hourly Rate)

End of Attachment 13

File details come from the government source that posted it. Updated .