Attachment_6_Instructions.doc

Attachment 6 - Supplement

Instructions for the Price Element Breakdown Template

Introduction This Price Element Breakdown Template is a Microsoft Excel based pricing tool that provides a standardized format for costing a PSO labor hour rate. The template was designed to assist contractors in pricing their proposal. Contractors should only complete those cost elements which apply to their proposal. The cost data provided in these worksheets are considered data other than certified cost pricing data as discussed under FAR 15.403-5(b)(2).

Instructions for Completion

1. The Price Element Breakdown file contains four worksheets entitled “Model for Price Realism”, “Breaks & Lunches”, “Non-PSO Positions”, and “FTEs, Nonproductive Hrs, & OT”.

2. Provide the name of your company and the solicitation number for your submission in the header section of the “Model for Price Realism” worksheet.

3. The “Model for Price Realism” worksheet contains for reference notes near the bottom of the spreadsheet: Note 1 – Rates; Note 2 – Cost for Premium Portion of Estimated Overtime Hours; Note 3 – Health and Welfare; and Note 4 – Fringe Benefits, Non-Productive Time, and Other Direct Element Pricing. These notes provide intructions on completing the “Model for Realism” and, for Notes 1 and 3, require narratives on the bases of estimate for the Rates and Health and Welfare Cost.

4. The offeror shall input the rates, hours, and cost amounts for those line items listed on the “Model for Price Realism” worksheet that apply to the current proposal. Note, the amounts for “Breaks & Lunches” (Row 30) and “Non-PSO Positions” (Row 72) are automatically populated when the applicable supporting worksheets are completed.

5. Row 10 of the “Model for Price Realism” worksheet automatically calculates Total Regular Wage Direct Labor. Total Regular Wage Direct Labor is calculated by multiplying the Regular Hourly Wage Rates Proposed inputted by the offeror in Row 5 by the Total Productive Hours Proposed inputted by the offeror in Row 8.

6. Rows 15, 33, 41, 70, 76, and 80 of the “Model for Price Realism” worksheet automatically calculate applicable totals, therefore data should not be inputted into these rows. Row 82 automatically calculates the labor hour rate applicable to the inputted data; therefore data should not be inputted into this row.

7. Rows 66-68 provide the option to insert “Other” price elements, which are not included in the standardized listed elements. If including “Other” price elements, insert a description of each element in the applicable worksheet cell. If additional “other” price elements are needed for the breakdown, please insert new rows under Row 72 and list the additional elements.

8. The purpose of the “Breaks & Lunches” worksheet is to provide specific cost data regarding breaks, lunches, and relief that was included in the offeror’s proposal. The “Breaks & Lunches” worksheet provides detailed instructions on completing the worksheet and required narrative on the offeror’s basis of estimate. Note that the narrative requires that the offeror identify which cost elements from the "Model for Price Realism" worksheet contain the break and relief costs included in each identified element. For example, if the Relief line item from the “Model for Price Realism” includes $1,000 for paid break costs and $200 for Relief Officer travel, the offeror would identify as such in their narrative. If the wages, taxes, and fringe cost elements include $1,200 for the PSO relief costs, such amounts shall be identified in the narrative. The narrative also requires that the offeror detail the basis of estimate for determining the paid break and/or lunch hours priced into the proposal. The “Breaks & Lunches” worksheet will automatically populate to the “Model for Price Realism” worksheet.

9. Cost data for the Non-PSO Positions shall be entered under the “Non-PSO Positions” worksheet as directed by the instructions found on the worksheet. Total costs for the Non-PSO positions identified under the “Non-PSO Positions” worksheet will automatically populate the “Model for Price Realism” worksheet under the Non-PSO Position line item.

10. The purpose of the “FTEs & Non-Productive Hours” worksheet is for contractors to provide the Government with additional information concerning the estimated number of Full Time Equivalent (FTE) PSOs and Non-Productive Hours per FTE proposed. The “FTEs & Non-Productive Hours” worksheet contains detailed instructions on inputting the required information. A narrative describing the basis of estimate for the proposed number of FTEs and Non-Productive Hours per FTE is required in the text box provided. This worksheet is only for informational purposes to assist the Government in understanding offerors’ proposals. The data inputted on the “FTEs & Non-Productive Hours” worksheet does not automatically populate any cells and is not referenced in any formulas in the other worksheets of the “Price Element Breakdown” workbook.

11. Additional worksheets may be provided to explain any calculations, bases of estimate, or other factors/judgments used to determine the pricing amounts in the template.

12. The worksheet is not locked and may be adjusted by the offeror as appropriate.