Attachment_2-_Cost_Proposal_Instructions_APC_BAAs-SBIRs(19_Oct_2016).pdf

Det 8 AFRL/RVK Cost Proposal Instructions

Revised: 19 Oct 2016 Page 1 of 6

COST PROPOSAL

INSTRUCTIONS

FAR R&D Requirement (APC) Competitive

BAA or SBIR Actions

DET 8 AFRL/RVK

3550 ABERDEEN AVE SE

KIRTLAND AFB, NM 87117

Revised: 19 Oct 2016 Page 2 of 6

1. GENERAL INSTRUCTIONS:

A. Provide complete responses to the attached Contractor Information document for the Prime and each Subcontractor. If preferred by the offeror, the responses to the information requested may be provided on a similar form or listed on the first page of the cost proposal. (Attachment 1)

B. Indicate whether Government approval of respective accounting, estimating, and purchasing systems have been obtained. If so, provide evidence of such approval.

C. Round all dollar amounts to the nearest dollar. Round all labor rates to the nearest penny.

D. Furnish Tables 1 thru 4 (sample tables are at paragraph 3 below), or in the contractor’s format containing the information outlined in these instructions, for the entire performance period (supported by rationale required by paragraph 2) in hard copy and on CD as IBM PC compatible, Microsoft Excel, to include all cell formulas. Include a separate Cost Element Summary by Offeror Fiscal Year (OFY), for each contract line item (CLIN), for the basic and each option or task order as proposed.

(For purposes of these instructions, CLIN refers to contract line items that are required to be priced separately.)

E. Provide all cost summaries by OFY.

2. PROPOSED COST ELEMENTS:

The detail required for each major cost element is described below. Address all cost elements applicable to the proposed effort and provide a narrative to support the basis of estimate. Explain the basis of estimate for each cost element to include the basis for proposed rates. As applicable, provide the following information for each cost element. If a portion of the required information is not applicable for a particular cost element, so state.

A. DIRECT COSTS:

(1) DIRECT LABOR:

(a) As part of Table 1, list the proposed hours, rates, and calculated amounts for each direct labor category by OFY, by CLIN. If separately priced CLINs apply, also include a roll-up to Total Program Summary.

(b) As part of the basis of estimate narrative, provide rationale for proposed hours and labor mix. Explain how the proposed labor hour skill mix has been derived. Explain why the cost element requires an average, higher, or lower than average skill mix. (Information such as historical cost information, judgment, analogy to other similar efforts, etc. is generally accepted as a method of projecting direct labor hours).

(c) Provide the base labor rates for each category. If composite or blended rates are used, provide the calculations used in deriving the composite rates. Identify the source of the proposed rates and explain the methodology used to project each rate for subsequent years. If applicable, identify the proposed escalation factors applied to future estimates and rationale for the proposed factors. Submit source data for proposed direct labor rates. If evidence of Forward Pricing Rate Agreement (FPRA), Forward Pricing Rate Recommendation (FRPR), or recent DCAA audited direct labor rates are not available for submission, submit the following source data listed in order of preference, current payroll data, or signed employee agreements, or salary survey, etc. to support proposed direct labor rates.

(2) SUBCONTRACTS/INTER-ORGANIZATIONAL TRANSFERS (IOTs):

NOTE: Highly recommend the offeror provide these cost proposal instructions to all subcontractors. Fully disclosed Subcontractor/IOT proposals are required for ALL subcontractors (including Tables 1 thru 4), and are due by the closing date identified in this solicitation.

It is especially important that adequate data on subcontractors be provided. Rates are particularly important. Note that the absence of adequate data on subcontractors is a frequent source of prime contractor inadequate proposals and avoidable delay in contract award.

(a) As part of Table 1, list each subcontractor/IOT cost separately by OFY by CLIN.

(b) Provide a list of anticipated subcontractors/IOTs using Table 2. Differences between the subcontractor/IOT proposed amounts and the prime contractor proposed amounts must be fully explained.

To ensure compliance with FAR 52.215-22, Limitations on Pass-Through Charges - Identification of Subcontract Effort: Use Table 2 to identify the cost of work to be performed by each subcontractor by contract or task order as applicable. If the offeror subcontracts more than 70 percent of the total cost of work to be performed, comply with the requirements of the provision.

(c) Provide the basis for establishing the source and reasonableness of proposed subcontracted effort. Provide an analysis of the proposed subcontract in accordance with FAR 15.404-3(b). Provide an analysis concerning the reasonableness of each subcontractor’s proposal. Explain the use of decrement factors if applied. If the analysis is based on comparison with prior prices, identify the basis on which the prior prices were determined to be reasonable. If the subcontract exceeds the TINA threshold and no exception applies, the cost analysis should include, but not be limited to, an analysis of: materials, labor, travel, other direct costs and proposed profit or fee rates. If the offeror obtained competitive quotes from potential subcontractors, provide evidence of competition.

(d) If the IOT proposed at other than cost, provide support in accordance with FAR 31.205-26(e).

Revised: 19 Oct 2016 Page 3 of 6

(3) CONSULTANTS:

(a) If the offeror proposes the use of consultants, provide the following FOR EACH NAMED CONSULTANT:

(1) The specific project or area in which such services are to be used.

(2) Identification of all cost elements included in the consultant's costs. (i.e.: number of hours, the consultant's rate per hour, plus a detailed explanation of any costs that would be charged over and above labor costs

(3) A signed consulting agreement between the offeror and the consultant

(b) In those cases where a consultant IS NOT NAMED but the offeror realizes a need will exist, support the proposed daily rate by supplying a basis of estimate.

(4) MATERIALS if not Baselined:

(a) As part of Table 1, list material/equipment costs by OFY by CLIN. Using Table 4, provide a consolidated priced summary of individual material/equipment quantities and the basis for pricing by OFY, by CLIN. As part of the basis of estimate narrative, provide information regarding the rationale/methodology used to derive the proposed material/equipment estimate.

(b) Include raw materials, parts, components, assemblies, special tooling or test equipment, and services to be produced or performed by others.

(c) If a purchase order exceeds the TINA threshold, provide an analysis in accordance with FAR 15.404-3(c).

(d) Provide copies of supporting documentation (Purchase Orders, Vendor Quotes, Invoice Prices, Catalog Prices, or

Historical Information) to substantiate a MINIMUM of 70% of the proposed material costs.

Specifically, provide supporting documentation for the highest unit prices.

(5) OTHER DIRECT COSTS (ODCs) if not Baselined:

As part of Table 1, list ODC costs by OFY by CLIN. As part of the basis of estimate narrative, separately identify other direct costs. Provide rationale for proposed other direct costs.

(a) ODCs - Travel

i. Identify the following information for each trip: location of origin and destination; number of travelers;

duration; airfare cost; rental car cost; per diem (meals and lodging) cost; any other costs.

ii. As part of Table 1, list travel costs by OFY by CLIN. Using Table 3, separately identify costs for travel.

Note that Table 3 is a summary format and may be expanded to include more detailed travel rate information and calculations.

(b) ODCs - Other

i. Using Table 4, identify and provide a detailed description of any other direct costs that do not fit into the ODC categories above, including the basis for determining those costs (e.g., vendor quotes, catalog pricing data, company estimating procedures, etc.).

ii. Provide an explanation/rationale for all other proposed ODCs.

B. INDIRECT COSTS

(1) As part of Table 1, list the proposed base, rate/factor and calculated amount for each indirect cost by OFY, by CLIN.

(2) As part of the basis of estimate narrative, identify all indirect cost rates/factors (such as Fringe Benefits, Labor Overhead, Subcontractor/Material Overhead, G&A, Facilities Capital Cost of Money (FCCOM), etc.) and the applicable allocation bases.

(3) Identify the basis of proposed rates (e.g., FPRA and date of agreement, bidding rates and submission date, actual rates and effective date, billing rates and approval date, etc.). Submit source data for all proposed indirect rates. If evidence of FPRA, FPRR, approved Provisional Billing Indirect Rates, or recent DCAA audited indirect rates are not available for submission, submit the following source data in order of preference, certified incurred cost submissions, or budgetary data to include details of the indirect rate cost pools, or supporting historical trend data.

(4) Address whether or not the proposed indirect rates consider a change in Business Base pending award of this effort.

Provide support data for the impact to indirect rates if applicable.

(5) If proposing FCCOM, submit a properly executed DD Form 1861. Provide the basis for proposed percentage of land buildings and equipment.

(6) Identify any other indirect cost element being proposed which has not been included above and identify the various cost elements for which the rate is applied.

C. NEW MEXICO GROSS RECEIPTS TAX (NMGRT):

(1) NMGRT costs may not apply to this effort. Effective 1 January 2016 and prior to 1 January 2021, the New Mexico Taxation and Revenue Department (TRD) has implemented a Gross Receipts Tax deduction for R&D efforts (reference Gross Receipts and Compensating Tax Act 3.2.218 NMAC page 385, http://www.tax.newmexico.gov/recent-regulation-changes.aspx).

Revised: 19 Oct 2016 Page 4 of 6

(2) For assistance in determining the extent to which NMGRT may or may not apply and applicable rates, contact the New Mexico Taxation and Revenue Department, 5301 Central Ave., NE, PO Box 8485, Albuquerque, NM 87198, (505) 841- 6200, http://www.tax.newmexico.gov/Businesses/gross-receipts.aspx.

E. BASELINED OTHER DIRECT COSTS (ODCS) if specified in the solicitation:

Acknowledge whether the offer complies with the CLIN description of baselined ODCs.

3. SAMPLE COST PROPOSAL TABLES (Revise to comply with established accounting practices.):

A. Table 1 (Sample): Cost Element Summary. If applicable, list each Subcontractor and IOT separately.

B. TABLE 2 (Sample): SUBCONTRACTORS/IOTs

C. TABLE 3 (Sample): TRAVEL

D. Table 4 (Sample): BILL OF MATERIALS & ODCs (other than Travel & Consultants)

COST ELEMENT BASE RATE AMOUNT BASE RATE AMOUNT BASE AMOUNT

Direct Labor Labor Category #1 1,200.0 $ 20.00 $ 24,000 1,200.0 $ 20.00 $ 24,000 2,400.0 $ 48,000 Labor Category #2 2,400.0 $ 30.00 $ 72,000 2,400.0 $ 30.00 $ 72,000 4,800.0 $ 144,000 Labor Category #3 600.0 $ 40.00 $ 24,000 600.0 $ 40.00 $ 24,000 1,200.0 $ 48,000

TOTAL DIRECT LABOR 4,200.0 $ 120,000 4,200.0 $ 120,000 8,400.0 $ 240,000

Labor Overhead $ 120,000 50.00% $ 60,000 $ 120,000 50.00% $ 60,000 $ 240,000 $ 120,000 Fringe $ 180,000 20.00% $ 36,000 $ 180,000 20.00% $ 36,000 $ 360,000 $ 72,000

SUBTOTAL LABOR $ 216,000 $ 216,000 $ 432,000

Subcontracts – IOTs $ 200,000 $ 200,000 $ 400,000 Material $ 100,000 $ 100,000 $ 200,000 Material Overhead $ 100,000 3.00% $ 3,000 $ 100,000 3.00% $ 3,000 $ 200,000 $ 6,000 ODC - Travel $ 8,000 $ 8,000 $ 16,000 ODC - Consultants 600.0 $ 100.00 $ 60,000 600.0 $ 100.00 $ 60,000 1,200.0 $ 120,000 ODC - Other $ 3,000 $ 3,000 $ 6,000

SUBTOTAL $ 590,000 $ 590,000 $ 1,180,000

G&A $ 590,000 10.00% $ 59,000 $ 590,000 10.00% $ 59,000 $ 1,180,000 $ 118,000

SUBTOTAL $ 649,000 $ 649,000 $ 1,298,000

FCCOM - Overhead $ 120,000 1.00% $ 1,200 $ 120,000 1.00% $ 1,200 $ 240,000 $ 2,400

FCCOM - G&A $ 590,000 0.10% $ 590 $ 590,000 0.10% $ 590 $ 1,180,000 $ 1,180

FEE $ 649,000 6.00% $ 38,940 $ 649,000 6.00% $ 38,940 $ 1,298,000 $ 77,880

TOTAL COST & FEE $ 689,730 $ 689,730 $ 1,379,460

NMGRT - Kirtland AFB $ 489,730 6.0625% $ 29,690 $ 489,730 6.0625% $ 29,690 $ 979,460 $ 59,380 NMGRT - Albuquerque $ - 7.0000% $ - $ - 7.0000% $ - $ - $ - NMGRT - Out-of-State $ 200,000 5.1250% $ 10,250 $ 200,000 5.1250% $ 10,250 $ 400,000 $ 20,500

TOTAL PRICE $ 719,420 $ 719,420 $ 1,438,840

TOTAL PROPOSED

SAMPLE Table 1 - COST ELEMENT SUMMARY

OFY YYYY

(DD MMM YYYY – DD MMM YYYY)

OFY YYYY

(DD MMM YYYY – DD MMM YYYY)

NAME TASKS

CONTRACT

TYPE

QUOTED

PRICE

s

EVALUATED

PRICE DIFFERENCE

% of

WORK

TOTALS -$ -$ 0.00%

SAMPLE Table 2 - PRICE SUMMARY for SUBCONTRACTORS/IOTs & CONSULTANTS

OFY From To Purpose No.

Trips No.

Tvlrs No.

Days Per

Diem Lodging Rental

Car Airfare Total

YYY1

YYY1

YYY2

YYY2

SAMPLE Table 3 - Travel

TOTAL TRAVEL:

YYY1 Subtotal:

YYY2 Subtotal:

Revised: 19 Oct 2016 Page 5 of 6

Item OFY Description Qty Unit Price Total Price Vendor/Source Basis of Estimate Totals

1 YYY1

3 YYY1

4 YYY1

5 YYY1

6 YYY1

7 YYY1

8 YYY2

9 YYY2

10 YYY2

11 YYY2

12 YYY2

Item OFY Description Qty Unit Price Total Price Vendor/Source Basis of Estimate Totals

1 YYY1

3 YYY1

4 YYY1

5 YYY1

6 YYY1

7 YYY1

8 YYY2

9 YYY2

10 YYY2

11 YYY2

12 YYY2

ODCs

OFY YYY1 Subtotal:

OFY YYY2 Subtotal:

Total ODCs Proposed:

SAMPLE Table 4 - MATERIALS & OTHER ODCs

OFY YYY1 Subtotal:

OFY YYY2 Subtotal:

Total MATERIALS Proposed:

MATERIALS

Revised October 19, 2016 Page 6 of 6

Attachment 1