Atch_12_Cost-Price_Instructions_Attachment.docx

L-5 VOLUME IV – PRICE/COST PROPOSAL

Offerors shall submit a cost/price narrative (MS Word or pdf) and Attach11 Pricing Template (MS Excel) with all formulas visible.

TO #1 Field Service Representative and Operational Planner Support (FSR & OPS) Pricing Instructions:

The cost/price narrative shall discuss the following:

1. Fiscal Year:

State the Offeror’s fiscal year.

2. Fully Burdened Labor Rate (FBLR):

Describe all the elements that were used to develop the FBLR as shown in “Attach11 Pricing Template”, tab “FBLR Development”.

3. Escalation Rates:

State the escalation rate/s used in the proposal and describe the basis for the proposed escalation.

4. Price Reasonableness:

Describe the rationale for considering the proposed price to be fair and reasonable IAW FAR 15.404-1(a).

5. Realism:

Describe the rationale for considering the proposed cost and price to be realistic IAW FAR 15.404-1(d)(1).

6. Subcontractor:

List the subcontractors that will perform work for this TO.

7. Compensation Plan IAW FAR 52.222-46, describe the total compensation plan which reflects a sound management approach and understanding of TO requirements. Describe how the offeror intends to recruit and retain professional employees who will provide uninterrupted high quality work.

Supporting Information shall be provided as follows:

The Direct Labor Rate used in Item #2 above shall be substantiated by data from national and regional compensation surveys.

TO #2 Net Equipment Training (NET) Pricing Instructions:

The cost/price narrative shall discuss the following:

1. Direct Labor Rate:

This section shall describe the basis for the proposed direct labor rates. It shall include documents that support the rates so that the government can determine the veracity of the rates.

If direct labor rates are based on the DCAA Forward Pricing Rate Agreement (FPRA) or DCMA (Forward Pricing Rate Recommendation (FPRR), a copy of this document shall be attached. The Offeror’s Forward Pricing Rate Proposal (FPRP) submitted to DCMA is NOT a valid supporting document. If the FPRP is submitted, additional supporting as described below shall be included.

If direct labor rates are based on actual salary paid to existing employees, a copy of the payroll run shall be attached. Any Personal Identifiable Information (PII) shall be redacted from the payroll run.

If direct labor rates are based on salary web-sites, screen shots of the appropriate pages shall be included.

If direct labor rates for specific military labor categories are based on occupational series from the department of labor statistics, the cost narrative shall map the military category to the occupational series and provide the basis.

2. Subcontractor:

The cost volume shall list the subcontractors that will perform work under the TO The cost volume shall include the price analysis conducted by the prime Offeror which supports the decision to select each subcontractor. Each subcontractors’ price proposal shall be submitted.

In addition, each subcontractor shall submit an un-sanitized cost proposal directly to the Government. This cost proposal shall include all the details and supporting documents that are described in TO #2 Net Equipment Training (NET) Pricing Instructions. Thus proposals for all tiers of subcontracting levels shall be submitted.

3. Indirect Costs:

This section shall describe the basis for the proposed indirect rates. It shall include documents that support the rates so that the government can determine the veracity of the rates.

If indirect rates are based on the DCAA FPRA or DCMA FPRR, a copy of this document shall be attached. The Offeror’s FPRP submitted to DCMA is NOT a valid supporting document. If the FPRP is submitted, additional supporting as described below shall be included.

If indirect rates are based on actual indirect expenses experienced by the Offeror, the following information shall be submitted:

a. Detailed pool and base costs for each indirect expense shall be provided.

b. The pool and base costs shall be provided for the last three years and budgeted expenses for the entire period of performance proposed. The budgeted expenses shall include the indirect costs being proposed.

4. Other Rates:

a. Escalation Rates:

The cost narrative shall state the escalation rate and provide the basis for the proposed escalation. Acceptable forms of support are rates derived from IHS Global Insight, rates based on historical experience.

b. Facilities Capital Cost of Money (FCCM) If FCCM rates are based on the DCAA FPRA or DCMA FPRR, a copy of this document shall be attached. The Offeror’s FPRP submitted to DCMA is NOT a valid supporting document. If the FPRA or FPRR is not available, detailed information which show how the FCCM rate was developed shall be included. In addition, form DD1861 shall be submitted.

c. Fee The cost narrative shall state the fee rate and describe the basis for the rate including a discussion on the risks associated with the proposed TO.