Replacement page 3 - 25 Aug 2010.doc

HQ0034-10-R-0046 / Amendment #0001

B.3

CEILING RATES/FEES – APPLICABLE TO ALL TASK ORDERS

(a) Refer to Attachment B-1 in Section J.

(b) The Fully-Burdened Fixed Labor Rates (FBFLRs) in Attachment B-1 shall remain fixed throughout the life of the contract, including options, and will serve as the basis of negotiating/awarding firm fixed price and fixed price level-of-effort type task orders applicable to CLIN X001.

(c) The fixed fee in Attachment B-1 shall remain fixed throughout the life of the contract, including all options, and will serve as the basis of negotiating/awarding cost plus fixed fee (CPFF) type task orders applicable to CLIN x002. Contractor compliance with the maximum fee rate is applicable at the time of task order award and is based on the ratio of fixed fee to the estimated cost. A proposed fee that is higher than the maximum fee rate shall render the contractor’s proposal unacceptable. Fee becomes a fixed dollar amount at the time of task order award and is subject to the provisions of the Level of Effort clause of the contract. The maximum fee rate shall flow down to all subcontractors/consultants included as part of your (the Prime) proposal. The maximum fee rate is not applicable to actual performance of the task order.

(d) The mark-up rates in Attachment B-1 shall remain fixed throughout the life of the contract, including options, for all orders, which are applicable to CLINs x003 and x004

(e) The maximum pass-through mark-up rate in Attachment B-1 that may be charged against any non-ODC CLIN where labor is proposed shall remain fixed throughout the life of the contract, including all options.

(1) For purposes of calculating the pass-through rate, the pass through rate is defined as the cumulative amount of the two elements listed below divided by the price paid to the subcontractor or the vendor:

· any and all indirect costs including, but not limited to, program management, subcontract management, invoice processing, Quality Assurance, overhead, material handling charges, G&A, burdens and mark-ups; and

· any and all prime contractor profit or fee* (*for purposes of this contract, “fee” means “fixed fee” in cost-plus-fixed-fee type task orders.)

(2) The Prime Contractor may not apply any additional fees or burdens on the elements of pass through. Other than the elements of pass-through, no additional costs, charges, indirect rates (such as overhead or G&A), profit or fees may be proposed or applied to subcontract costs.

(3) For purposes of the maximum pass-through, any effort provided by a division, subsidiary or any other entity of the prime contractor shall not be considered subcontracted effort and all fee/profit must be provided at the prime level subject to the limitations specified in the contract.

(4) For purposes of the maximum pass-through, any effort provided by a division, subsidiary or any other entity of the prime contractor shall not be considered subcontracted effort and all fee/profit must be provided at the prime level subject to the limitations specified in this contract.

(f) No fee is allowed on Other Direct Costs. Indirect cost elements such as G&A and material handling, not to exceed the specified rate, may be applied but may not include fee.