INFORMATIONAL - Rate Adjustment Example.xlsx

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Space Enterprise Consortium Other Transaction Agreement Competition Federal contract opportunity
Solicitation number
FA8814-20-9-0001
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Department of the Air Force Space Command Space and Missile Systems Center

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SpEC Section 5.3 Document.docx DOCX document
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Exponental Rate Sandbox

2d Lt George C Eberwine; 05 Mar 2020
IMPORTANT: All data in this spreadsheet represent an example only. No data on award size, throughput, or anything else should be taken as a forecast or projection of future awards. The intent of this spreadsheet is to allow for experimentation with an exponentially decaying rate structure only. The government does not guarantee that the contents of this document are error-free. Any use of this spreadsheet to calculate either estimates or values for proposal development is done at the Offeror's own risk.
Table 5.3.1A: Offeror’s Proposed Rate Adjustment Formula InputsDo not change this area, for calculation purposes only
DescriptionSymbolCM Proposed Value:The number e2.71828182845904
Initial CM-Rate %FI2.00%<-- Insert CM Proposed
Rate-Reduction Constant2.50E-09<-- Insert CM Proposed
These two columns for generating data labels onlyAward AmountRateMinimum Raten/a0.57%<-- Insert CM Proposed[DETERMINED BY OFFEROR]
02.00%02.00%Dollar Value at which Min Rate is reachedn/a$500,000,000<-- ENTER MANUALLY[DETERMINED BY INPUT VALUES AND MINIMUM RATE SELECTED, does not auto-calculate, to display on graph, one must edit Colulmn C and D accordingly]
10000002.00%In order to experiment with the function, simply alter the values of initial rate above and/or lambda to modify the equation. Throughout the spreadsheet, the green boxes are intended for your input. The orange boxes above do not automatically calcualte anything or affect the graph below.
20000001.99%
30000001.99%
40000001.98%
50000001.98%Calculator: Insert Award Amount
60000001.97%Award Amount$123,456,789<-- Insert exact amount for which rate is to be calculated
70000001.97%Rate Percentage1.47%
80000001.96%Rate Dollar Amount$1,813,441.15
90000001.96%
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530000001.75%Table 5.3.1B: EXAMPLE Year Awards
540000001.75%Number of ProjectsProject ValueRate %Per-Project RateTotals
550000001.74%(ProjValue)x(Rate%)(Per-Proj Rate)x(#Proj)Sum(Proj x # Proj)
560000001.74%1$1,000,000.002.00%$19,950.06$19,950.06$1,000,000.00
570000001.73%3$3,000,000.001.99%$59,551.68$178,655.05$9,000,000.00
580000001.73%4$10,000,000.001.95%$195,061.98$780,247.93$40,000,000.00
590000001.73%5$30,000,000.001.86%$556,646.09$2,783,230.46$150,000,000.00
600000001.72%2$100,000,000.001.56%$1,557,601.57$3,115,203.13$200,000,000.00
610000001.72%2$300,000,000.000.94%$2,834,199.32$5,668,398.63$600,000,000.00
620000001.71%0$500,000,000.000.57%$2,865,047.97$0.00$0.00
630000001.71%Project Sum $ = Sum((Value)x(#Proj))Effective Rate % =($Total)/($1,000,000,000.00)[Black out these cells because summing this column yields a meaningless number]RateTotal $ (TECG) =Sum((Per Proj Rate)x(#Proj))
640000001.70%$1,000,000,000.001.25%$12,545,685.27
650000001.70%# OF AWARDS REPRESENT AN EXAMPLE, NOT A FORECAST/PROJECTON OF FUTURE THROUGHPUT; The government does not guarantee that the contents of this document are error-free. Any use of this spreadsheet to calculate either estimates or values for proposal development is done at the Offeror's own risk.
660000001.70%
670000001.69%
680000001.69%The effective rate is not a proposed value, but is a value calculated back out of the total throughput and the total compensation. This is for comparison purposes and shows what the total compensation (in %) would have been if it had been a flat-rate across the entire throughput.
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Exponentially Decaying Rate Structure

Function= F(D)=FI·e- λD

FI = Initial Rate F(D) = Rate at any dollar amount e = the number e Lambda = "Rate-reduction-constant" D = The dollar amount at which the rate is to be calculated Exponentially Decaying Rate Based on Award Amount

010000002000000300000040000005000000600000070000008000000900000010000000110000001200000013000000140000001500000016000000170000001800000019000000200000002100000022000000230000002400000025000000260000002700000028000000290000003000000031000000320000003300000034000000350000003600000037000000380000003900000040000000410000004200000043000000440000004500000046000000470000004800000049000000
0500000001000000001500000002000000002500000003000000003500000004000000004500000005000000000.021.7649938051691912E-21.5576015661428105E-21.3745785575819455E-21.213061319425268E-21.0705228570379819E-29.4473310548203078E-38.3372403935701809E-37.3575888234288598E-36.4930493471670094E-35.7300959372038164E-3Prototype Award Value ($)

Rate % image1.png image2.jpeg

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