Questions and Answers 19 Nov 2009.pdf

SbAST RFP FA8530‐09‐R‐22309 Questions & Answers

Background # 78: In reference to Q&A dated 11‐16‐09, and RFP Section H‐901 (f) (3):

Question # 73: Please confirm that FP rates are to include profit.

Answer # 73: FP NTE Rates are to include profit

We understand that the Government requires profit to be included in the FP NTE labor rates.

However, Section H‐901 (f) (3) states

“If a Fixed Price (FP) D/TO is contemplated as a result of issuance of an RFOP, contractors will be required to prepare a FP proposal and include other costs (e.g., material, travel, etc.)and appropriate add‐on factors. If incentives are to be used, they will be identified in the RFOP.

Proposals shall identify the labor categories, the number of hours, and the proposed labor rates for each category.”

and does not specify how profit will be proposed/negotiated for cost elements other than labor (material, subcontractor, ODC etc…).

Question # 78: Will the Government provide clarification on how the contractor will propose/negotiate profit on a FP type order for cost elements other than labor.

Answer # 78: Due to the NTE labor rates including profit in the rate. The contractor should propose profit for things other than labor separately.