Attach_12_-_Subcontractor_Analysis_Guidance.pdf
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- Attached to
- Airman Decision Making and Interface REsearch (ADMIRE) Program Federal contract opportunity
- Solicitation number
- FA8650-19-S-6003
About this file
This document provides guidance for prime contractors to analyze subcontractor costs on federal contracts. It outlines specific areas for prime contractors to review in subcontractor proposals, including labor hours and mix, material quantities and types, travel requirements and costs, and other direct costs. Prime contractors are instructed to comment on the reasonableness, realism and completeness of these cost elements in the subcontractor's proposal. They are also directed to review and provide support for the subcontractor's proposed profit rates. The analysis is required to be submitted any time a subcontractor is involved, regardless of dollar value.
The related federal contract opportunity is a pre-solicitation notice for research related to the Airman Decision Making and Interface REsearch program. The goal is to provide basic, applied and advanced research across five technical areas including battlespace acoustics, supervisory control and cognition, aerospace physiology, battlespace visualization and applied neuroscience. The objective is to improve persistent situation awareness and warfighter decision making for integrated Air Force operations.
Attachment 12: Subcontractor Analysis Guidance
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Text version
PRIME CONTRACTOR’S ANALYSIS OF SUBCONTRACTOR’S COSTS
(REFER TO FAR 15.404-3)
SUBCONTRACTOR ANALYSIS MUST BE SUBMITTED WHENEVER A
SUBCONTRACTOR IS INVOLVED (NO DOLLAR LIMITATION)
The prime contractor should provide for each subcontractor an analysis and documentation concerning the reasonableness, realism, and completeness of the subcontractor’s proposal.
Analysis should include, but not be limited to an analysis of materials, labor and reasonableness of other direct costs (types and quantities), and proposed profit rates. Merely a statement concerning technical necessity does not demonstrate reasonableness, realism and completeness.
LABOR: Comments should be made concerning the adequacy of the proposed labor hours and mix. The labor rates, which may be fully burdened, should be reviewed and comments should be provided regarding the reasonableness of the rates. Proposed rates may be compared with rates negotiated for previous efforts, with the prime’s own similar type rates or with other subcontractor’s similar type proposed rates.
MATERIAL: These costs should be reviewed and comments should be made concerning quantities, types and needs of material items. In addition, a value review of the materials should be performed and submitted. (Is the value of the item commensurate with effort’s requirement)
TRAVEL: Comments should be made concerning the number and necessity of proposed trips as well as the reasonableness of the per diem rates, air fares, and car rental rates.
OTHER DIRECT COSTS: These costs should be reviewed and comments made concerning the necessity and reasonableness of the proposed costs.
PROFIT: Is the profit reasonable for the type effort contemplated? Support your conclusions.
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