AFPAC.pdf

AIR FORCE PROPOSAL ADEQUACY CHECKLIST (AFPAC)

PREPARATION GUIDELINES

FAR 15.403-4 sets forth those circumstances in which contractors are required to submit certified cost or pricing data. The responsibility for providing well-prepared and fully supportable cost proposals for sole source acquisitions that exceed the TINA threshold lies solely with the contractor. The basis and rationale for all proposed costs shall be provided as part of the proposal so that the contracting officer (CO) may rely on the information as sufficiently current to permit negotiation of a fair and reasonable price.

The attached AFPAC must be completed and submitted as part of your proposal. Items within the AFPAC that do not contain specific FAR references are needed for Government review and negotiation, as applicable.

Contact the CO as soon as possible prior to proposal submittal if there is uncertainty as to whether a checklist item is a requirement, or how to adequately comply with a proposal item. Non-compliances with the enclosed checklist will require immediate correction in order to proceed with proposal evaluation and negotiation, however, completion of the checklist does not relieve you from your responsibility to comply with regulations and any special requirements of the solicitation.

In addition, it is highly recommended that you flow this (or a similar) checklist to your subcontractors/affiliates where certified cost and pricing data is required and that you use the elements of the AFPAC (or elements of a similar checklist) 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.

SPECIAL NOTE: In order to preclude delays in negotiations and contract award, you should discuss the basis for all "No or N/A" responses that may have a material impact, and particularly any claim to not submit cost or pricing data because of any of the five exceptions found at FAR 15.403-1(b) in the explanation column for each item.

Attachment:

AFPAC

Air Force Proposal Adequacy Checklist for Sole Source Actions above TINA Threshold

ITEM FAR N PROVIDE EXPLANATION IF EITHER "NO or PROP

# ITEM DESCRIPTION REFERENCE Y or N/A" (use continuation page if necessary) REF

N/A PG

1 Is there a properly completed first page of the proposal in accordance FAR 15.408, with Table 15-2 LA or as specified by the Contracting Officer (CO) in the Table 15-21.A solicitation?

2 Is an Index, appropriately referenced, of all certified cost or pricing data FAR 15.408, and information accompanying or identified in the proposal, provided? Table 15-21.6

3 Are there any exceptions to submission of certified cost or pricing data FAR 15.403-pursuant to FAR 15.403-1 (b)? If so, is supporting documentation 1(b) included in the proposal? Refer to checklist items 15, 16 and 17.

Note If the total price of the proposal is > threshold for certified cost or pricing data, the checklist is required even if a portion of that value qualifies as an exception. Address exception(s) with the CO and proceed with checklist.

4 Is there a summary of total cost by element of cost and are the FAR 15.408, Table 15-21.0 elements of cost cross-referenced to the supporting cost or p·ricing &E data? (Breakdowns for each cost element must be consistent with your cost accounting system.)

5 If more than one CUN (Contract Line Item Number) or sub-CUN (Sub FAR 15.408, Line Item is proposed as required by the RFP, are there summary total Table 15-2, I. 0 amounts covering all line items for each element of cost and is it cross- &E referenced to the supporting cost or pricing data?

6 Is total price by cost element provided by year? Identify if by Calendar Year (CY) or Government Fiscal Year (GFY) or both, as required.

7 Are CUN prices by cost element provided by year? Identify if by CY or GFY or both, as required.

8 Are recurring and non-recurring costs segregated at both the CUN/SubCUN and total cost levels?

Are all cost element breakdowns provided using the applicable format FAR 15.408,9.1 prescribed in FAR 15.408, Table 15-2 III? (or alternative format if specified in the RFP) Table 15-2

9.2 Does the proposal reflect all specific requirements established by the

CO?

Version: 24 Sept 10 Page 1 of 8

# ITEM DESCRIPTION REFERENCE Y or N/A" (use continuation page if necessary) REF

NIA PG

10 If an incentive contract type, is contract geometry included (e.g.

contractor proposed target cost, target profit or fee, minimax, ceiling, share ratio)?

MATERIAL

Note Consolidated Bill of Material (CBOM). A CBOM is a consolidated priced summary of individual material quantities and subcontract items included in the various tasks, orders, or contract line items being proposed and the basis for pricing (negotiated/invoice prices, vendor quotes, average unit pricing, prior purchase history, long term agreements, etc). The offeror's CBOM shall include estimated raw materials, parts, components, assemblies, subcontracts and services to be produced or performed by others, identifying as a minimum; the item, source, quantity and cost.

11.1 Is a CBOM included at the total contract level? FAR 15.408, Table 15-2 II A.

11.2 If the CBOM is being provided at other than a total contract level as described in Notes 1 and 2 below, did the contractor address how the CBOM is provided?

Note In the event the contractor intends to propose the CBOM at other than a 1 total contract level, the contractor is encouraged to contact the CO and/or the cognizant DCAA auditor prior to proposal submit/al.

Note The CO and auditor are allowed to exercise judgment in making the 2 determination as to what elements/CUNs are included in the CBOM(s) depending on the contractor's estimating techniques used and whether those techniques are appropriate in the circumstances.

Note Depending on your system, inter-organizational transfers may be 3 included as part of a total CBOM or be a separate CBOM.

Note The CBOMs must be in an electronic format that is able to be sorted by 4 supplier, and category (e.g., raw material, purchased parts, subcontracts, extended dollar of part numbers, etc.).

Note Additional CBOMs may be required or desired for separate CUN end 5 item deliverables (e.g., Alternate Mission Equipment, Special Test

Equipment, Spares, etc.).

SUBCONTRACTS (Purchased material or services)

12.1 If the subcontract or purchase order exceeds the threshold for certified FAR 15.403-4, FAR 15.408, Version: 24 Sept 10 Page 2 of 8

ITEM FAR

N PROVIDE EXPLANATION IF EITHER "NO or PROP

# ITEM DESCRIPTION REFERENCE Y or N/A" (use continuation page if necessary) REF

N/A PG

cost or pricing data and none of the exceptions to TINA apply, does the Table 15-2 II.A proposal include the prime contractor's Price/Cost Analysis establishing the reasonableness of each subcontract price?

12.2 If the prime contractor's Price/Cost Analysis are not provided with the FAR 15.408, proposal, does the proposal include a matrix identifying dates for receipt Table 15-2, of subcontractor proposal, completion of fact finding for purposes of Note 1

Price/Cost Analysis, and submission of the Price/Cost Analysis?

As later information/data comes into your possession, it should be submitted promptly to the CO in a manner that clearly shows how the information/data relates to the offeror's price proposal. The requirement for submission of certified cost or pricing data continues up to the time of agreement on price, or an earlier date agreed upon between the parties if applicable.

Note Analyses not provided with the proposal may result in a delay to audit, fact-finding and negotiations. Analyses not included with the proposal shall be provided as soon as possible after the proposal submission date and shall be accomplished in sufficient time to support the definitization/contract award schedule.

12.3 Does the proposal identify those actions where assist audits have been requested by the prime or sub-tier contractors and identify the request date and scheduled receipt date?

Note The need for assist audits resulting from proprietary data rights assertions at any tier must be identified to the CO as soon as possible in the proposal build cycle. Notwithstanding assist audits performed by the government, contractors must still perform and provide Price/Cost Analysis.

12.4 In accordance with the thresholds of FAR 15.404-3(c), Subcontract FAR 15.404-

Pricing Considerations, does the proposal include a copy of the 3(c) applicable subcontractor's proposal(s)?

INTERORGANIZATIONAL TRANSFERS

13 For inter-organizational transfers proposed at cost, does the proposal FAR 15.40B, include a complete cost proposal in compliance with Table 15-2 and this Table 15-2 checklist?

1I.A.(2)

Note Inter-organizational work is considered to be part of the certified cost or pricing data submission of the prime. As such, the prime contractor's responsibility for conducting subcontractor Cost/Price Analysis does not apply to inter-organizational transfers. However, prior to the submission

Version: 24 Sept 10 Page 3 of 8

NIA PG

of the proposal, the prime contractor shall (a) ensure that all statement of work tasks are addressed without duplication and are consistent with the overall program performance schedule and, (b) ensure ground rules and assumptions are consistent with the prime proposals.

14 For inler-organizalionallransfers proposed al price in accordance wilh FAR 31.205-

FAR 31.205-26(e), does lhe proposal provide an analysis by lhe prime 26(e), FAR lhal supports lhe exceplion from certified cosl or pricing dala in 15.403-1 accordance wilh FAR 15.403-1 (reference checklisl ilems 15, 16, and 17 below)?

ADEQUATE PRICE COMPETITION

15 Does lhe proposal support lhe degree of compelilion and lhe basis for FAR 15.408, eslablishing lhe source and reasonableness of price for each Table 15-2 subconlracl or purchase order priced on a compelilive basis exceeding

IIA(1)

lhe lhreshold for certified cosl or pricing dala?

COMMERCIAL ITEM DETERMINATIONS

16 Is lhe conlraclor proposing commercial ilems eilher allhe prime or FAR2.101, subconlraclor levellhal would be exempl from certified cosl or pricing FAR 15.403-1 dala requiremenls?

(b)(3) or (b)(5)

Note If you are modifying a commercial item or are providing a modified commercial item, there may be circumstances that require the submission of certified cost or pricing data (see Note to checklist item

17.3 below).

17 Has lhe conlraclor provided support for prime conlraclor assertions of commercialily and any subconlraclor Commerciaillem Delerminalions (CIDs) addressing, al a minimum, lhe following:

Note A subcontractor CIO includes the following information/data in addition to the prime contractor's independent price analysis and conclusion of the subcontractor's commerciality assertion. (checklist item 17.5.0)

17,1 Has lhe conlraclor provided a description of supplies or services and lhe basis for which lhe supply or service meels lhe Government's requiremenls?

17,2 Has lhe conlraclor specifically idenlified lhe lype of commercial ilem FAR 2.101 claim (FAR 2.101 commercial ilem sub-definilions (1) lhrough (8)), and lhe basis on which lhe ilem meels lhe definition?

Version: 24 Sepl1 0 Page 4 of 8

ITEM FAR

N PROVIDE EXPLANATION IF EITHER "NO or PROP

# ITEM DESCRIPTION REFERENCE Y or N/A" (use continuation page if necessary) REF

N/A PG

17.3 For modified commercial items (commercial item sub definition) (3); did FAR 2.101 the contractor classify the modification(s) as either: FAR 15.403-1

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)

Note Modifications that do not qualify as "minor" under FAR 2.101 sub-definition (3) or modifications that qualify as "minor" where the total price of all such modifications exceeds the greater of the threshold for certified cost or pricing data (FAR 15.403-4) or 5% of the total price of the contract at the time of contract award are NOT exempt from the submission of certified cost or pricing data. Where the contractor is proposing a modified commercial item, the CO should, in every case, be consulted as soon as possible before the proposal is submitted.

17.4 Technical Assessment: For proposed commercial items "of a type", or FAR 2.101

"evolved" or modified (FAR 2.101 commercial item sub-definitions (1) through (3)), did the contractor provide a technical description of the differences between the proposed item and the comparison item(s)?

17.5 Price Reasonableness: Has the contractor provided, or made FAR available, data other than certified cost or pricing data to establish price 15.402(a)(2), FAR 15.403-reasonableness of the proposed commercial item (to include any 1(c)(3)(II), FAR modifications not subject to certified cost or pricing data (ref. Note under 15.403-3(c).

checklist item 17.3 above) by supplying: FAR 15.404-

3(b)

A. Information/data related to competition (refer to checklist item

FAR 15.404-

3(c)

15), FAR 15.406-2

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?

Note The preferred method to establish the price reasonableness of

Version: 24 Sept 10 Page 5 of 8

N/A PG

commercial items is to obtain commercial sales data. It is recognized that other methods, such as market price assessments data or cost data not subject to certification, are also acceptable when prior sales data cannot be obtained. Sales data must (1) demonstrate sales to the general public, (2) be current and where possible, (3) in like quantities.

Items sold to state, local or foreign govemments or items sold with applications only to state, local, foreign government or the US government end items, are not considered to be sales to the general public unless the proposed commercial item meets the commercial item definition FAR 2.101 commercial item sub-definition (8).

LABOR

18 Are the Basis of Estimates (BOEs) included for all labor hours with detailed rationale to support the estimates?

19 For labor BOEs, does the proposal include labor categories, task descriptions, Statement of Work (SOW) reference, applicable CLI N, Work Breakdown Structure (WBS), BOE rationale, applicable history, and time-phasing?

OTHER DIRECT COSTS

20 Does the proposal include other direct costs and the basis for pricing? If FAR 15.408, travel is discretely estimated does the proposal include number of trips, Table 15-2 II.D number of people, number of days per trip, locations, and rates (e.g.

airfare, per diem, hotel, car rental, etc)?

NEW CONTRACTS (INCLUDING LETTER CONTRACTS)

21 Does the proposal identify actual hours, and cost incurred as well as FAR 15.408, hours/cost to complete and the time phasing associated with these Table 15-2, III hours/costs? This information/data is to be provided consistent with cost element summaries as identified in checklist item 9.1

CHANGE ORDERS, MODIFICATIONS AND CLAIMS

22 If the proposal is for a modification or change order, have cost of work FAR 15.408, deleted (credits) and cost of work added (debits) been provided in the Table 15-2 111.8 format described in FAR 15.408, Table 15-211I.B?

PRICE REVISIONS/REDETERMINATIONS

23 For price revisions/redeterminations, does the proposal follow the FAR 15.408, format in FAR 15.408, Table 15-2.III.C? Table 15-2111.C

Version: 24 Sept 10 Page 6 of 8

N/A PG

FACILITIES COST OR MONEY

24 If facilities capital cost of money is proposed, does the proposal include FAR31.205-10 submission of Form CASB-CMF or reference to an FPRP/FPRA and FARTable15-show the calculation of the proposed amount?

2,II.F

RATES AND FACTORS

25 Does the proposal include all rates and factors by year that are utilized in the development of the proposal and the basis of those rates and factors (FPRAlFPRP)? Identify the official submittal of such rate and factor data.

OTHER

26 Does the proposal identify the location and point of contact for any certified cost or pricing data which is referenced, but not included, in the proposal?

27 Does the proposal disclose the judgmental factors applied and the FAR15.408, mathematical or other methods used in the estimate, including those Table15-2, used in projecting from known data?

I.C(2)(i)

28 Does the proposal disclose the nature and amount of any contingencies FAR15.408, included in the proposed price? Table15-2

IC(2)(ii)

29 If Royalties exceed $1,500 does the proposal provide the FAR15.408, information/data identified in FAR 15.408, Table 15-2 Paragraph II. E.? Table15-2II.

E.

30 If Economic Price Adjustments are being proposed, does the proposal FAR16.203-show the rationale and application for the proposed indices? 4(a)(1)

31.1 Is the contractor proposing Performance-Based Payments? FAR32.10

31.2 If so, has the contractor provided an expenditure profile, proposed events and FAR32.10 their projected dates, proposed values for each event, completion criteria, and identification of which events are severable or cumulative?

32 Excessive Pass-through Charges - Identification of Subcontract Effort, FAR15.408(n) if the offeror intends to subcontract more than 70% of the total cost of DPAPMemo work to be performed, does the proposal identify: (i) the amount of the 23Dee2009

(OARS

offeror's indirect costs and profit applicable to the work to be performed Tracking by the subcontractor(s); and (ii) a description of the added value Number2009-provided by the offeror as related to the work to be performed by the 00015) subcontractor(s)?

Version: 24 Sept 10 Page 7 of 8

N/A PG

33 Does the proposal explain lhe basis of all cosl estimaling relationships (CERs) (labor hrs or material) proposed on olher lhan a discrete basis?

Note Calculations/formulas/logic made to generote "CERN costs should be presented with proposal.

34 Does lhe proposal idenlify lhe need for governmenl furnished FAR 15.40B, malerial/looling/lesl equipment? Include the lending contract number Table15-2, I A.

and CO contact information if known.

(7)

35 Does lhe proposal include idenlificalion of any CAS non-compliances, FAR Table 15-or olher eslimaling deficiencies lhat may impact lhe proposed price? 2.IA(B)

Version: 24 Sept 10 Page 8 of 8