Attachment L9 - Cost and Price Narrative.docx

RFP # N68520-21-R-0005: ATTACHMENT (L9)

COST/PRICE NARRATIVE

VOLUME 3 – COST/PRICE & GENERAL INFORMATION

(Section L, Part B, Paragraphs 3.2 & 3.3)

Provide a narrative that addresses the preparation of the cost/price submission and discuss the basis for the cost elements listed below:

I. DIRECT LABOR RATES

Provide a narrative to describe the derivation of the proposed direct labor rates (current payroll, composite rates, industry averages, etc.) including use of uncompensated overtime. If composite or category averages are proposed, provide a breakdown of how rates are developed.

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If any of the rates utilized by the Offeror differ from payroll verification, a justification shall be provided for the difference below:

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II. ESCALATION

If the Offeror proposes an escalation factor that differs from the rate provided in Attachment (L10), provide a narrative to explain the derivation of the escalation percentage applied to the rates for each year and the index utilized as outlined in Section L, Part B, Paragraph 3.2b).

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III. INDIRECT COSTS

Provide a narrative to outline the basis for the proposed Indirect costs as outlined in Section L, Part B, Paragraph 3.2c).

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In order to substantiate the proposed indirect rates, provide historical indirect/provisional indirect billing rates for the last three years:

IV. PROFIT/FEE

Provide a narrative to describe the profit/fee rate and total amounts submitted and identify the various cost elements to which the profit/fee is being applied as outlined in Section L, Part B, Paragraph 3.2d).

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V. OTHER DIRECT COSTS

If it is the Offeror’s accounting practice to apply (and invoice for) burdens with regards to ODCs and the Offeror proposes burdens on the Government provided ODC estimates in Section L, Part B, Paragraph 3.4.1, the Offeror shall provide a percentage breakdown of the Offeror’s indirect costs and burdens added to the Government estimates. If not applicable, enter N/A.

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If the contractor chooses not to burden ODCs, then the contractor shall propose an H-clause to establish that burdens will be unallowable for ODCs. If not applicable, enter N/A.

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NOTE: If ODCs are not burdened and an H-Clause is not proposed, language similar to below will be incorporated into Section H of the resulting contract:

“Proposal did not include burdens on ODCs. No burdens will be added to ODCs during contract period of performance.”

VI. ESTIMATING PRACTICES AND OFFEROR ASSUMPTIONS

Provide a narrative that addresses the offeror’s estimating practices and any assumptions made during the preparation of the cost/price submission in accordance with Section L, Part B, Paragraph 3.2f).

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VII. PRICE REASONABLENESS DETERMINATION (To be completed by prime offerors only)

Provide a narrative to address the Offeror’s response meets the requirements of Section L, Part B, Paragraph 3.2g).

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VIII. TOTAL PROFESSIONAL COMPENSATION PLAN (To be completed by prime offerors only)

Provide a narrative to address the Offeror’s response meets the requirements of Section L, Part B, Paragraph 3.3 and explain the inputs provided in Attachment (L10).

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IX. CHANGES TO ATTACHMENT (L10)

Provide a narrative to address any changes made to the Attachment (L10) standard template that was provided with the final TOR/FON.

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X. AUTHORIZED SIGNATURE:

An authorized representative must sign below.

Type Name

Signature

Title

Date

SOURCE SELECTION INFORMATION – SEE FAR 2.101 AND 3.104