Attachment_L-4_Coefficient_Information.pdf

ATTACHMENT L-4: COEFFICIENT INFORMATION

A. Purpose of Coefficient: The purpose of applying the coefficient to direct costs, national average bare costs as obtained from the Unit Price Book (UPB), and/or negotiated bare costs of non-Unit Price Book (non-prepriced) items, is to compensate the Contractor for all indirect costs and profit for performance.

B. Factors that make up the Coefficient: The offeror’s/contractor’s coefficient (in percentage format, no more than 3 decimal places) shall contain any/all applicable profit and burden costs such as, but not limited to, bond premiums; insurance; computer system, software and support costs; compliance with environmental and safety laws/regulations, taxes, overhead, general and administrative expense and any/all other associated indirect costs required to perform the work. SABER unit prices are for materials in place (FOB Destination) and, unless otherwise specified, include materials, labor and equipment.

C. Applying the Coefficient: The coefficient shall be represented as “net,” a “decrease from” or an “increase to” the prices listed in the RS Means. An offer of “net” would be represented as “1.0” of the amount of the R.S. Means amount after the City Index is applied. The Contractor shall thoroughly consider all potential costs, risks, economic trends and the proposal environment before submitting coefficients less than “1.00.”

1. Task Order Pricing: Task order prices will be based on negotiated quantities times the total of the current established prices in the R.S. Means database bare cost column (which means no markup for overhead and profit (O&P)) times the current City Cost Index (weighted average percentage) for Bakersfield , CA. After the City Index has been applied, this amount will then be multiplied by the co-efficient proposed for the applicable category to arrive at the total task price for a unit of work. Example Pricing will be determined at the task order level as follows:

Total amount of RS Means items (Bare Costs) x (Multiplied by) City index x (Multiplied by) Coefficient = Total Task Order Price

2. R.S. Means Annual Update: The R.S. Means data is updated annually. Except as otherwise authorized herein, the R.S. Means annual update shall provide the only economic price adjustment under the contract.

The pricing coefficients are not subject to economic price adjustment and shall remain unchanged for the existing terms and conditions of the contract.

FA9301-14-R-0011

Section L – Attachment L-4