CIMTIC III Industry Day Questions 2 30 June 10.pdf

CIMTIC III Industry Day Questions, #2

07/01/2010

Q1. Do subcontractors need to provide rates for all labor categories in Cost Format A to the

Government as part of the cost volume?

Q2. The contractor will provide the cost and price information as outlined in section 7.0 in the draft RFP instructions. Will this same information be required from subcontractors?

A1 – A2. Under Paragraph 7.5.1.1, the following sentences were added/deleted to the paragraph:

Added verbiage: Offerors must propose a single composite FFP rate per category skill level, regardless of source, i.e. prime or subcontractor.

Deleted verbiage: Labor categories should not be combined into composite categories. All labor proposed must be discretely identified by category, rate, and year utilized. Under no circumstances will composite labor rates or categories be accepted.

Q3. The contractor has approximately nine generic labor categories that are bid in 90% of all of its proposals. In order to bid (for example) a Mathematician III we may bid 10% of one labor category rate and 90% of another labor category rate in order to meet educational and experience requirements and also give the government the best value. Is this considered a

“composite rate”?

A3. Yes, this would be considered a “composite rate”.

Q4. When a subcontractor on the contractor’s team wants to bid on a DO, which rates should be used: the contractor’s as the prime or the subcontractor’s?

A4. The prime’s rates should be used.

Q5. Does the fee get included in the rate or is the fee addressed on each individual DO?

A5. Under Firm Fixed Price (FFP), the term is profit.

Paragraph 7.5.1.1, Fixed Labor Rates states that Cost Format A shows fully burdened labor rates inclusive of all indirect costs, profit and escalation throughout the contract.

Therefore, the profit should be included in your rate.