T34_44_6_Proposal_Dev_Guidance_-_Price_02_16_14.pdf

AIR-4.10E

PROPOSAL DEVELOPMENT GUIDANCE

Agenda

Price

Greg Veit

AIR-4.2

Proposal Instructions

Volume 4 – Price Overview

• Proposal instructions are structured to facilitate the evaluation by organizing the offeror's information

VOLUME 4 – PRICE PROPOSAL

4.1

Volume Content

4.2

Ground Rules &

Assumptions

4.4 Use of

Other Cost

Summary

Section 1

Proposed

Price

Section 5

CR

CLINs/SLINs

Section 3

FFP

4.5 Use of

Government

Property

4.3

Price Proposal

Instructions

Section 2

Contractor

Rates

Section 6

CSDR

(Cost and Software Data Report)

Section 4

LH

Section 1 – Proposed Price

Price Attachment L-7 Supplies Services Prices

Section 2 – Contractor Rates

Section 3 – FFP CLINs

Price Attachment L-8 Prime Contractor Cost Summary

Price Attachment L-9 Non-Prime Entity Cost Summary

Price Attachment L-11 Manning Supplement

Section 4 –LH CLINs/SLINs

Price Attachment L-8 Prime Contractor Cost Summary

Price Attachment L-9 Non-Prime Entity Cost Summary

Price Attachment L-11 Manning Supplement

Section 5 –CR CLINs/SLINs

Section 6 –Cost & Software Data Reporting (CSDR)

Price Attachment L-10 Draft CSDR Plan

Section 7 –Evaluated Price

Price - Proposal Format

Attachment # Name of File Title of Attachment

L-8 Vol 4 SuppSvcPr.xlsx Supplies Services Prices

L-9 Vol 4 Prime CCS.xlsx Prime Contractor Cost

Summary

L-10 Vol 4 Non-Prime Entity CS.xlsx Non-Prime Entity Cost

Summary

L-11 Vol 4 CSDR.xlsx Draft CSDR Plan

L-12 Vol 4 Manning Supplement.xlsx Manning Supplement

Price Attachments Provided to Offerors

• The offeror shall provide an explanation of all ground rules and assumptions that affect the price estimates. Any apparent imbalances in the pricing, high or low proposed prices as compared to historical data, or any other anomalies should be fully explained.

• Proper presentation and adequate supporting documentation will ensure the price proposal is efficiently evaluated and all assumptions are understood.

• If an external modeling tool or other externally referenced files are used to build data included in the Price Attachments, please ENSURE that the external tool or other externally referenced files are functioning properly when provided to the Government evaluation team. Improperly functioning external tools or externally referenced files will impede the evaluation team from completing the proposal evaluation!

– Verify no circular reference errors, improperly documented formulas, etc. exist within documents external to the Price Attachments.

– Verify any data copy/pasted from external documents is CORRECTLY documented within the Price Attachments.

Section L - Price

• Within all Excel spreadsheets, the offeror shall use formulas and functions to the maximum extent possible and avoid using output type, hard-coded, “value only” cells. If links are utilized, supply those referenced files.

Spreadsheets shall not be protected.

• Adequate substantiation is necessary for the Government to evaluate the price and scope of the offeror’s estimate for reasonableness and completeness, and to ensure all solicitation requirements are included in the price proposal.

• Detailed instructions have been included with the Price Attachments, please follow the instructions as provided. Fully explain any deviations.

• All price and price supporting information shall be contained in Volume 4

(Price) and Price Attachments. With the exception of Annex D (Table T-1

(Small Business Goals) and Small Business Subcontracting Plan); Volume 4

(Price); and Volume 5 (Contract Administration), no price should appear in any other volume.

Section L – Price (continued)

Section L – Price (cont’)

• DIRECT RATES: Provide the most current direct labor rates for the offeror and Non-

Prime entities used in the proposal.

– FPRA, CBA, AWD

• INDIRECT RATES: Identify and provide the indirect rates for the offeror and Non-

Prime entities used in the proposal.

– Provide the detailed buildup of individual elements used to calculate Total

Fringe Benefit Indirect Rates

• COST TO SELL EQUATIONS: Submit the methodology used to transfer the price data (i.e., direct labor hours) into a sell price to the Government (i.e., fully burdened with fee). This includes the sequence in which indirect rates, fee, etc. were applied to direct costs to determine the sell price. Include the base against which each of the overhead pools is applied in this description.

The burden of proof for cost/price credibility rests with the offeror!

THE INFORMATION ABOVE REGARDING DIRECT RATES, INDIRECT RATES AND COST TO

SELL EQUATIONS IS IN SUMMARY FORM AND IS FOR INFORMATIONAL PURPOSES ONLY.

MORE DETAILED INFORMATION IS CONTAINED IN THE FINAL RFP.

• Price

– The Total Evaluated Price is the sum of the Base Period

CLIN/SLIN amounts, all corresponding Option Period

CLIN/SLIN amounts, and FAR Clause 52.217-8 Option to

Extend Services CLIN/SLIN amounts as defined below:

• The Government will calculate and add the FAR 52.217-8 clause

(Option to Extended Services) price as well as any cost to the

Government to the offeror’s total proposed price to produce the Total

Evaluated Price.

Section M - Price

Price Attachment Details L-8 “Supplies Services Prices”

L-8 – Supplies Services Prices

– Populate all CLIN and SLIN Unit Price/Cost column cells with respective Unit Prices/Costs.

– Populate all Estimated Amount column cells by multiplying the Estimated Quantity (provided in the solicitation) by the respective Unit Price/Cost for each CLIN and SLIN.

– Use the “round down” function in excel and truncate all fractional dollars to two decimal places (e.g., $47.24).

– Input the CLIN and SLIN Unit Price/Cost directly on L-8 “Supplies Services Prices” worksheet and do not import or “link” the Unit Price/Cost from any other worksheet or workbook; however, Unit Price/Cost should be traceable to Prime Contractor Cost

Summary.

– Complete all CLIN and SLIN Extended Amount calculations directly on L-8 “Supplies

Services Prices” worksheet and do not import or “link” the Extended Amount calculation from any other worksheet or workbook.

CLIN DESCRIPTION

EST

QTY

UNIT UNIT PRICE

ESTIMATED

AMOUNT

T-34

T-34 Aircraft Maintenance, NAS Corpus Christi, TX

(scheduled and unscheduled) (A/C Range 1-32 (aircraft per month) 352 EA -$

0002 T-34 Flight Hour Generated Maintenance, NAS Corpus Christi, TX 5,278 FH -$

Unit of Each refers to an Aircraft Month as defined in Section B-2.3

Price Attachment Details L-8 “Supplies Services Prices [CR CLIN Tables tabs]”

L-8 – Supplies Services Prices [CR CLIN

Tables tabs]

– Populate the “Indirect Costs, Burdens & Markups” column with all applicable indirect costs, markups and burdens for the respective CLIN/SLIN on the

Base and Option Period tabs within Attachment L-8.

– The respective Base and Option

Period tabs within Attachment L-8 will automatically calculate the

“offeror-proposed Estimated

Amount” by adding the

Government-provided “Gov’t

Estimated Amount” to the offeror-proposed “Indirect Costs, Burdens

& Markups”.

PERIOD: BASE

ITEM SUPPLIES / SERVICES

Gov’t

Estimated

Amount

Indirect Costs, Burdens &

Markups

Offeror-proposed

Estimated

Amount

XX16 T-34 FRC Parts Transportation $ 400,000.00 $ 400,000.00

ITEM SUPPLIES / SERVICES

Gov’t

Estimated

Amount

Indirect Costs, Burdens &

Markups

Offeror-proposed

Estimated

Amount

XX32 T-44 FRC Parts Transportation $ 100,000.00 $ 100,000.00

CR CLIN TABLES

INSTRUCTIONS: The Offeror shall add its indirect costs and applicable burdens/markups to the Government Estimated Amount provided in the tables below for the CR CLINs. The individual tables will automatically calculate the Offeror-proposed Estimated Amount by adding the Offeror-proposed indirect costs and burdens/markups to the provided Government

Estimated Amount. Examples for completing each table can be found in the RFP, "4.0

Volume 4 - Price", Section 5 "Cost Reimbursable (CR) CLINs/SLINs", paragraph d, "Example

Evaluated Price and Calculation".

CLIN XX16 (T-34 FRC Parts Transportation - Base Period Only)

CLIN XX32 (T-44 FRC Parts Transportation)

Price Attachment Details L-9 – “Prime Contractor Cost Summary”

Option Period: EXAMPLE

Cost Elements Shift Source Company Category Title FTEs Hours Rate Direct Labor Cost

Prime Contractor Labor Cost

Prime Contractor Direct Labor

CLIN XXXX - T-34 Engine Repair Labor

SLIN XXXXAA - CNATRA (NAS Corpus Christi, NAS Whiting Field)

Work Center - Maintenance

Engine Inspection Specialist (NAS CC) 1 CBA Union Mechanic II 1 150 27.62$ 4,143$

Engine Repair Mechanic (NAS CC) 1 CBA Union Mechanic I 1 100 25.82$ 2,582$

Engine Technician (NAS CC) 1 CBA Union Tech I 1 100 25.82$ 2,582$

Etc.

Work Center - Maintenance

Engine Inspection Specialist (NAS WF) 1 CBA Union Organizational Aircraft Mechanic II 1 150 26.91$ 4,037$

Engine Repair Mechanic (NAS WF) 1 CBA Union Organizational Aircraft Mechanic I 1 150 25.49$ 3,824$

Etc.

SLIN Total 5 650 17,167.00$

SLIN Fixed Rate

SLIN 0515AB- Satellite Sites

Work Center - Maintenance

Mechanic I (Lemoore, CA) 1 CBA Union Aircraft Mechanic 1 150 25.66$ 3,849$

Mechanic I (MCAS Miramar) 1 CBA Union Aircraft Mechanic 1 150 25.78$ 3,867$

Mechanic I (El Centro) 1 CBA Union Aircraft Mechanic 1 150 25.78$ 3,867$

Etc.

SLIN Total 3 450 11,583.00$

SLIN Fixed Rate

Labor Rate Direct Labor

Overhead $ Fringe Benefits $ G&A $ Other (as req'd) Indirect Labor Cost

1.00$ 2.00$ 3.00$ 6.00$ 4,149.00$ 1.00$ 4,150.00$ 207.50$ 4,357.50$

1.00$ 2.00$ 3.00$ 6.00$ 2,588.00$ 1.00$ 2,589.00$ 129.45$ 2,718.45$

1.00$ 2.00$ 3.00$ 6.00$ 2,588.00$ 1.00$ 2,589.00$ 129.45$ 2,718.45$

1.00$ 2.00$ 3.00$ 6.00$ 4,042.50$ 1.00$ 4,043.50$ 202.18$ 4,245.68$

1.00$ 2.00$ 3.00$ 6.00$ 3,829.50$ 1.00$ 3,830.50$ 191.53$ 4,022.03$

5.00$ 10.00$ 15.00$ -$ 30.00$ 17,197.00$ 5.00$ 17,202.00$ 860.10$ 18,062.10$

27.79$

3.00$ 6.00$ 9.00$ 18.00$ 11,601.00$ 3.00$ 11,604.00$ 580.20$ 12,184.20$

27.08$

Fixed Fee $ Total Sell

Price/ Rate

Indirect Labor Other Direct

Costs Material

Non-Prime Entity

Handling Fee

COM $

Direct + Indirect

+ COM Cost

Non-Prime Entity

Cost $

Direct + Indirect

Labor Cost

• L-9 – Prime Contractor Cost Summary

– "Total Sell Price/Rate" for each CLIN/SLIN should match the proposed price submitted in Attachment L-8 “Supplies Services Prices”. Any differences need to be explained and justified.

– Labor Categories that are Non-Prime Entities should be included in Attachment L-10.

The "Total Sell Price/Rate" for the Non-Prime Entity labor from Attachment L-10 should match inputs in the “Non-Prime Entity $” column on Attachment L-9.

– Indirect Labor categories shall include at a minimum Overhead, Fringe Benefits and

G&A. Additional columns can be added to include additional Indirect categories at the discretion of the offeror.

Price Attachment Details L-9 – “Prime Contractor Cost Summary”

• L-9 – Prime Contractor Cost Summary [Total Price for each Non-Prime Entity]

– Provide a Total Price for each Non-Prime Entity to be utilized by the offeror.

– The Total Price for each Non-Prime Entity shall be reported at a summary level with a single dollar amount that includes prices for all work to be performed by that particular Non-Prime

Entity for the Base Period and all Option Periods.

– Additionally, the offeror shall provide the percentage (%) of the offeror’s Total Proposed Price that corresponds to each Non-Prime Entity’s Total Price dollar amount.

– The offeror shall provide this information for all Non-Prime Entities with the exception of those

Non-Prime Entities that choose to submit its rates directly to the Government for proprietary reasons.

Price Attachment Details L-9 – “Prime Contractor Cost Summary [Total Non-Prime Entity Cost]”

Non-Prime Entity

Non-Prime

Entity Total

Price

Offeror (Prime

Contractor) Total

Proposed Price

Non-Prime

Entity Price %

(Entity % of

Offeror's Total

Proposed Price)

Non-Prime Entity "A" (Name) $50,000 $2,000,000 2.50%

Non-Prime Entity "B" (Name) $300,000 $2,000,000 15.00%

Non-Prime Entity "C" (Name) $75,000 $2,000,000 3.75%

Etc. (Name)

Price Attachment Details L-10 “Non-Prime Entity Cost Summary”

L-10 – Non-Prime Entity Cost Summary

– See Attachment L-9 “Prime Contractor Cost Summary” Instructions - This information shall be provided for CLINs/SLINs with Labor Categories that are considered to be

Non-Prime Entities.

– Labor Categories that are Non-Prime Entities should be included in Attachment L-10.

The "Total Sell Price" for the Non-Prime Entity labor should match inputs in the “Non-

Prime Entity Cost $” column of Attachment L-9 "Prime Contractor Cost Summary" for the respective Base Year and Option Years.

Option Period: EXAMPLE

Cost Elements Shift Source Company Category Title FTEs Hours Rate Direct Labor Cost

Non-Prime Entity Labor Cost

Non-Prime Entity Direct Labor

CLIN XXXX - Satellite Site Support

SLIN XXXXAA - T-6(A) NAS Pensacola Add'l FH Generated Maintenance

Work Center - Management

Supervisor 1 FPRA

Non-Prime

Entity X Manager 1 200 35.00$ 7,000$

Etc.

Labor Rate Direct Labor

Overhead $ Fringe Benefits

G&A $

Other (As

Req'd)

Indirect Labor

Cost

1.00$ 2.00$ 3.00$ 6.00$ 7,006.00$ 1.00$ 7,007.00$ -$ -$ 280.28$ 7,287.28$

Direct +

Indirect + COM

Cost

Total Sell Price/

Rate

Indirect Labor Direct +

Indirect Labor

Cost

COM $ Fixed Fee $ Other Direct

Costs Material