Atch 7 -Prime Contractor's Analysis of Subcontracting Costs.pdf
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- Solicitation number
- FA8650-20-S-5004
About this file
This document provides an analysis template for prime contractors to evaluate subcontractor proposals. It outlines areas for the prime contractor to assess in the subcontractor's proposal, including labor hours and mix, material quantities and types, travel requirements and costs, and other direct costs. The prime contractor is instructed to comment on the reasonableness, realism and completeness of these costs, and to compare labor rates and materials values to previous contracts or other subcontractor proposals. Profit rates are also to be evaluated for reasonableness based on the type of effort contemplated.
The related federal contract opportunity is a pre-solicitation notice for the manufacturing of carbon-carbon composites for hypersonic applications. The opportunity details that carbon-carbon composites are needed for hypersonic applications, and the soliciting agency is the Air Force Materiel Command Research Laboratory.
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ATTACHMENT 7
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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