Contract_Facilities_Capital_and_Cost_of_Money_DHS-700-18.pdf

DEPARTMENT OF HOMELAND SECURITY

CONTRACT FACILITIES CAPITAL AND COST OF MONEY

(See Instructions on Reverse)

CONTRACTOR

BUSINESS UNIT

ADDRESS (Include city, state, and zip code)

RFP/CONTRACT PIID NO.

PERFORMANCE PERIOD

1. OVERHEAD POOLS

2. COST

ACCOUNTING

PERIOD

3. CONTRACT

OVERHEAD

ALLOCATION

BASE

FACILITIES CAPITAL COST OF MONEY

4. FACTORS 5. AMOUNT

6. CONTRACT FACILITIES CAPITAL COST OF MONEY

7. FACILITIES CAPITAL COST OF MONEY RATE

8. CONTRACT FACILITIES CAPITAL EMPLOYED

DHS Form 700-18 (12-03) AUTHORIZED FOR LOCAL REPRODUCTION

INSTRUCTIONS FOR DHS-700-18

CONTRACT FACILITIES CAPITAL AND COST OF MONEY

PURPOSE: The purpose of this form is to compute the estimated facilities capital to be employed for a specific contract proposal. An intermediate step is to compute the estimated facilities capital cost of money, using the Facilities Capital Cost of Money Factors developed on Forms CASB-CMF (See FAR 30.414 - Appedix A). This procedure is intended to be fully compatible with Cost Accounting Standard 414 "Cost of Money" as an element of the Cost of Facilities Capital, and extend those criteria and techniques to prospective periods for forward pricing purposes.

IDENTIFICATION: Identify the contractor, business unit and address. Identify the specific RFP or contract to which the computation pertains. Identify the estimated performance period of the contract.

OVERHEAD POOLS (Col. 1): List all business unit overhead pools and direct-charging service/support centers whose costs will be allocated to this contract. The structure must be compatible with the contractor's cost proposal and Forms CASB-CMF (See FAR 30.414 - Appendix A).

COST ACCOUNTING PERIOD (Col. 2): This column is used only for the "projected" method of estimating contract facilities capital employed and cost of money. Each Overhead Pool listed must be further broken down by each Cost Accounting Period impacted by the performance period of the contract. The yearly breakdown must also correspond to yearly overhead allocation bases in the contractor's cost proposal, and to separate Forms CASB-CMF for each listed.

If the "historical" method is used, the column should be ignored.

CONTRACT OVERHEAD ALLOCATION BASE (Col. 3): For each Overhead Pool and Cost Accounting Period listed, record the same Contract Overhead Allocation Base amounts used in the pricing report to derive the pre-negotiation cost objective. Such amounts should be the same as those used for burdening contract overhead or applying service/ support center use charges. The base units-of-measure must agree with those used on the Forms CASB-CMF.

FACILITIES CAPITAL COST OF MONEY FACTORS (Col. 4): Carry forward the appropriate estimated Facilities Capital Cost of Money Factors from the Forms CASB-CMF. Business units, overhead pools and cost accounting periods must agree.

FACILITIES CAPITAL COST OF MONEY AMOUNT (Col. 5): The product of each Contract Overhead Allocation Base (Col. 3) multiplied by its related Facilities Capital Cost of Money Factor (Col. 4).

CONTRACT FACILITIES CAPITAL COST OF MONEY (Line 6): The sum of Col. 5. This represents the contract's allocable share of the business unit's estimated cost of money for the cost accounting period(s) impacted by the contract performance period. Therefore, it represents a portion of the total(s) of Col. 5 of Forms CASB-CMF.

FACILITIES CAPITAL COST OF MONEY RATE (Line 7): The same Cost of Money Rate used in Col. 1 of the Forms CASB-CMF. Only one rate will be used in the facilities capital estimating process regardless of the length of the contract performance period.

CONTRACT FACILITIES CAPITAL EMPLOYED (Line 8): The quotient of Line 6 divided by Line 7. This represents the contract's allocable share of the business unit's estimated facilities value for the cost accounting period(s) impacted by the contract. Therefore, it represents a portion of the total(s) of Col. 4 of Forms CASB-CMF.