17-R-0009_Amended_Solicitation.doc

SECTION SF 30 BLOCK 14 CONTINUATION PAGE

SUMMARY OF CHANGES

SECTION L - INSTRUCTIONS, CONDITIONS AND NOTICES TO BIDDERS

The following have been modified:

L – ( 1 ) CONTENT OF PROPOSALS (Services) (1 November 2017)

PART A GENERAL INSTRUCTIONS

1.0 GENERAL

The Offeror must respond to all requirements of the solicitation and not alter or rearrange the solicitation. The Offeror is advised that the Government may incorporate any portions of the Offeror’s proposal into the resulting contract.

In presenting material in the proposal, the Offeror is advised that quality of information is more important than quantity. Clarity, brevity, and logical organization shall be emphasized during proposal preparation. Statements that the prospective Offeror understands, can comply with, or will comply with, the specifications, and paraphrasing the requirements or parts thereof without supporting information are considered inadequate by the Government, and may result in assessing weaknesses and/or deficiencies.

The Offeror must include any data that illustrates the adequacy of the various assumptions, approaches, and solutions to problems. Failure to address a specific factor or subfactor clearly may be considered a deficiency. Unnecessarily elaborate brochures or other presentation materials beyond that sufficient to present a complete and effective proposal is neither necessary nor desired.

The Government advises the Offeror that taking exception or deviating from any term or condition of the RFP may result in the assessment of a deficiency to the proposal.

Throughout these instructions, a “principal subcontractor” is defined as a subcontractor who provides at least 20% of the proposed total price/cost (excluding the Offeror’s profit/fee), for the contract or provides one or more Key Personnel. “JV Team member” is defined as one of the entities that make up a joint venture (JV) formed for the purpose of responding to this solicitation.

Questions: Offerors may submit questions requesting clarification of solicitation requirements by emailing the contract specialist at Christopher.Bigelow@navy.mil. It is required that all questions be received no later than June 7, 2018.

2.0 PROPOSAL FORMAT

Written proposals must be formatted using a Times New Roman 12 pt Normal font (no reduction permitted), single-spaced with 1-inch margins all around, and formatted for standard 8.5 x 11 inch paper. All pages should be numbered with volume and page numbers. When foldout pages are used they must not exceed 11 x 17 inches and will be counted as 1 page. Drawings may be provided separately and may be any size but should be folded to approximately 8.5 x 11 inch standard size and will count as 1 page. Graphs and tables shall be presented in no smaller than a 10 pt font and should contain a grid, which allows values to be read directly from the graph. Graphic resolution, including such data as tables or charts, should be consistent with the purpose of the data presented.

The Offeror will provide one complete copy of the proposal to the Procuring Contracting Officer (PCO) as electronic files fully compatible with Microsoft Office 2010 and for information not supported by MS Office products, with the latest Adobe Acrobat reader on a CD-ROM. The Offeror will ensure that the Price/Cost Volume is provided on a separate CD-ROM. Each CD-ROM is to be labeled for content and the Offeror’s name. If a discrepancy exists between the original paper copy of the proposal and the disk copy, the paper copy will take precedence.

Virus Free Electronic Submission

Offerors are responsible for ensuring that its electronic proposal is virus free. The Offeror shall ensure that all electronic proposal information delivered throughout the evaluation (e.g., original proposal submission, responses to evaluation notices, Final Proposal Revisions) has been or will be checked for viruses and that its files are/will be virus free. Offerors will submit all CD-ROMs in a finalized format.

3.0 PROPOSAL CONTENT AND VOLUMES

The Offeror must present proposal information in a manner that facilitates a one-to-one comparison between the information presented and this Proposal Instruction. Proposal information must be structured such that its Volume/paragraph number matches the Proposal Instructions Volume/paragraph number provided in section “Part B Specific Instructions” to which it is responding, although the Offeror may add lower tier subparagraphs. The Offeror must provide reasons it will not provide information for a particular paragraph. The proposal information instructions are structured by paragraph numbers where first, second, third, and fourth parts correspond to the volume, section, and element, etc., in the Offeror’s proposal.

Each volume of the proposal shall be submitted as one original and additional copies as specified in the table below. The table below supersedes the copies requested in Block 9 of the Standard Form (SF) 33. All volumes of the original proposal shall be delivered to the address provided in Section 4.0 prior to the closing date/time stated in this solicitation. Page limitations for each volume, if any, are also specified in the table below; title and table of contents pages do not count towards the page limit. Any pages submitted exceeding the page limit shall be disregarded and NOT evaluated.

Information submitted as an Annex to the proposal includes manuals, specifications, plans, procedures, and policies that exist as an official document of the company or facility, as well as other information requested in Part B Specific Instructions. Page limitations for Annexes, if any, are specified below. The authorized Annexes are summarized in the table below.

Each volume shall contain the following information:

-Cover and title page

-Title of proposal and proposal number as applicable

-Offeror’s name, address, and POC

-RFP number

-Proposal volume number

-Copy number

-Table of Contents (The table of contents must provide sufficient detail to enable easy location of important elements)

-Use tabs and dividers

The Offeror shall submit a Cross Reference Matrix (CRM) for the Technical Volume, similar to the example below, to help ensure that all solicitation requirements are addressed and to facilitate the evaluators’ review of the Offeror’s proposal. The CRM should be a single integrated matrix and cross-reference the proposal volumes and paragraphs to specific RFP requirements, as well as other parts of the proposal that contain relevant information. The Offeror’s CRM may be identical to the example below or revised such as to add columns to indicate the page number on which information may be found, identify where other relevant information in the proposal is located, or provide other comments. The CRM does not count against any of the proposal page limitations.

EXAMPLE OF A CROSS REFERENCE MATRIX (CRM)

Note: This column shall address all paragraphs in Sections xx and xy of the SOW/PWS.

Volume 1 Technical

Volume 1 Technical

The following is a list of Section L Attachments that the Offeror shall utilize to provide information for this volume:

Attachment L-1 Past Performance Information Form

Attachment L-2 Contractor Performance Assessment Questionnaire (CPAQ)

Attachment L-3 Cost Summary Spreadsheet

Attachment L-4 Fully Burdened Labor Rates Spreadsheet

4.0 PROPOSAL SUBMISSION:

Clearly mark all packages with the solicitation number. The submission date for all Volumes shall be no later than the date and time specified in Block 9 of the SF 33 of the RFP. It is requested that Volume 2 Past Performance information be submitted 10 days prior to the submission date specified in Block 9 of the SF 33of the RFP.

Offeror shall submit proposals via United States Postal Service or through a commercial carrier using the address provided below. Offeror shall not submit proposals by facsimile or electronically via email.

Naval Air Warfare Center Weapons Division

Code: 254410D (Chris Bigelow)

429 E. Bowen Rd. Mailstop 4015

China Lake, CA 93555-6108

Solicitation Number: N68936-17-R-0009 Hand carried proposals may be delivered to the address above, attention Chris Bigelow.

5.0 PROPOSAL PACKAGING:

The Offeror shall package the proposal volumes in cartons or equivalent packaging containers in the most efficient manner possible grouping like volumes to the maximum extent possible. Each container shall be single person portable. One container shall include all Original Proposal volumes including the original/signed documents submitted as part of Volume 3 Cost/Price.

Each box should include a packing slip detailing the contents to include the volume number, title, and copy number. Also, each box should be stamped or marked “For Official Use Only” and “Source Selection Information – See FAR 2.101 and 3.104.”

6.0 CLASSIFIED DATA

All proposals must be UNCLASSIFIED.

7.0 SOLICITATION CHANGES

For notice of any changes and additional information provided by the Government for the solicitation, please go to www.FedBizOpps.gov.

PART B SPECIFIC INSTRUCTIONS

Cost or pricing information shall only appear in the Price/Cost volume.

1.0 VOLUME 1: TECHNICAL

The Offeror shall provide all information and data required to conduct a thorough and complete technical evaluation. The Offeror shall address the following in the proposal:

- Key Personnel

- Management Plan

- Understanding of Work/Technical Approach

- Forecasting Future Capability

- Small Business Management including verification of the offeror’s process to meet the 25% mandatory requirement in accordance with the SOW paragraph 12.0.

Note: If the offeror does not meet the minimum requirements of the SOW paragraph 12.0, then the offeror will be ineligible for award.

1.1 Key Personnel

The Offeror shall provide all Key Personnel information in Volume 1 Technical Proposal, in accordance with the content defined in SOW paragraph 4.0 Personnel Qualifications and SOW paragraph 10.0 Location of Performance.

The Offeror’s Key Personnel shall include the following:

(a) Resumes. For all proposed current or contingent Key Personnel, provide a resume of the work assignments, training, etc., which demonstrates the experience and specialized qualifications of each key person proposed. Resumes shall contain, at a minimum, the following information:

Employee name

Years of employment experience in chronological order (most recent to least recent) including narrative descriptions of duties, responsibilities, and outcomes of work performed

Current position, title and employer

Educational history

Institution name, degree or certification earned, and year for all degrees or certifications earned

Current level of security clearance and status (final, interim, or pending)

The Government may check educational background to verify degrees or certifications received.

If the qualification (i.e. education, experience) does not readily or easily compare to the minimum qualification stated in the SOW the offeror shall provide an explanation as to the equality of the proposed qualification to meet the minimum qualification.

1.2 Management Plan

Offerors shall address the following:

(a) Management:

(1) The Offeror shall provide an overview of its proposed organization, including an organization chart showing interfaces, locations, and lines of communication among the Government, the Prime, and its subcontractors. Specifically show where the proposed Key Personnel are located in the organizational chart and their lines of reporting and authority.

(2) Procedures to be taken to ensure quality and cost control.

(b) Staffing: The Offeror shall address the following:

(1) Describe the processes used in hiring, recruiting, retaining, and training personnel throughout the life of the contract. Address if the Offeror intends to hire the incumbent personnel, percentage, and process for determining their rate of pay and benefits.

(2) Describe the approach to and timeframes for hiring personnel in order to take on new requirements within the contract.

Labor Categories

Accounting Clerk, Journeyman

Administrative Assistant, Junior

Computer Network Support Specialist, Junior

Computer Network Support Specialist, Journeyman

Computer Network Support Specialist, Senior

Computer Programmer, Senior

Computer Systems Analyst, Junior

Computer Systems Analyst, Journeyman

Computer Systems Analyst, Senior

Computer User Support Specialist, Junior

Computer User Support Specialist, Journeyman

Computer User Support Specialist, Senior

Engineering Technician, Journeyman

Financial Analyst, Senior

*Acquisition Specialist/Management Analyst, Senior

*Manager, Journeyman (Facility Security Officer)

*Manager, Senior

*Key Personnel

**Specify both labor category and subcontractor name (i.e., Senior Engineer, ABC, Inc.)

(c) Transition Plan: The Offeror shall address the following:

(1)The services under this solicitation are vital to the Government and must be continued without interruption. The Offeror is required to submit a written narrative delineating a transition plan that ensures a smooth workplace changeover from an incumbent with no loss of service as described in 3.5.2 labor hours and mix below and minimal loss of corporate knowledge. For proposal purposes, estimate a 30-day transition plan. The plan should take into consideration the following elements as well as any additional elements deemed necessary by the Offeror:

(a) Work Turnover

(b) Workforce Hiring

(c) Quality Assurance

(d) Training

(e) Risk Mitigation Strategies

(f) Security Requirement to include OPSEC, Facility Clearances, and Base Access

(g) Data Transfer

(d) Subcontract Management: The Offer shall address the following:

(1) Provide its subcontract management strategy for assembling teams, selecting subcontractors, maintaining subcontractor relationships, communicating information to the subcontractor, managing subcontractor performance, and resolving problems. Explain approach to selecting the best technical capability needed and the technical cost trade-off approach to ensure that the best value subcontractors are used for the effort.

(2) Discuss its approach to determining the work to be performed in-house and the work to be subcontracted.

(3) Describe how its subcontract management strategy supports its role as a lead system integrator. In describing its subcontract management strategy, the Offeror shall also address those aspects that will be accomplished through a subcontracting approach, including how the subcontract management strategy will be employed consistent with the processes.

a. The process that will be used to determine the complexity and variety of the work small businesses are to perform.

b. The process that will be used to ensure maximum practicable participation of small businesses for each task order.

(4) Demonstrate the ability to manage subcontractors working different task orders. Describe the value that will be added by proposing subcontractor(s) and how the use of subcontractor(s) will not add unnecessary levels of management, impede communication, or delay work completion.

(5) Describe the internal process to pay subcontractors and how that process ensures timely subcontractor payments with no loss of productivity to the Government.

(e) Location of Performance: The Offer shall address the following:

(1) Contractor performance will be principally at Government facilities at China Lake, CA, Pt. Mugu, CA, and contractor facilities (which shall be approximately no more than 25 miles from China Lake, CA and the facilities shall meet the security requirements as outlined in the DD254) in China Lake, CA.

(2) Prospective offerors are forewarned that a local office without key personnel will be considered as additional proposal risk.

1.3 Understanding of Work/Technical Approach

The Offeror shall provide a written narrative based on their understanding and proposed capability to perform the requirements of the tasks listed in section 3.5.5.

(a) The offeror shall provide a step-by-step procedure and methodology which would be used in in accomplishing the critical task listed above.

(b) The offeror shall identify any risks that may impact successful performance and actions required to mitigate these risks.

Note: Cost or pricing information shall not appear in this volume.

1.4 Forecasting Future Capability

The Offeror shall demonstrate its ability to continually enhance its capability to meet the administrative and technological challenges that will come with emerging threats, next generation training needs, and implementation of new cyber policy. The Offeror shall include the following:

(a) A capability assessment based on past efforts, current investments, and future plans; and forecast capability growth that will meet the needs over the life of the prospective contract.

(b) A description of past efforts and how the offeror maintained/enhanced its capability to meet emerging needs over the past three (3) years.

(1) Identify and describe past/current orders/contracts that are considered relevant under the Past Performance factor that would demonstrate the breadth and depth of the Offeror’s capability and how it evolved over the past three (3) years.

(2) Identify and describe the type of work, technological capabilities employed, the dates of performance, and the Offeror’s role and responsibility on that order/contract.

(c) A description of the extent to which the company has provided a commitment to current and future technological growth.

(1) Describe the Offeror’s current tactical plan to win and perform challenging technical contracts that are relevant to this solicitation or internally build capability that can be applied to this solicitation.

(d) For the future efforts, a strategic plan that enables technological forecasting and development of commensurate capabilities.

1.5 Small Business Management

All Offerors (Large and Small Businesses) shall address their strategies for utilizing SB Concerns in the performance of this contract, whether as a JV, teaming arrangement, or subcontractor. SB Offerors may meet this requirement using work they perform themselves. For purposes of this solicitation, the term SB Concern shall also include the subcategories of 8(a) business development participants, HUBZone small business concerns, service-disabled veteran-owned small business concerns (SDVOSB), and economically disadvantaged women-owned small business (EDWOSB) concerns and women-owned small business (WOSB) concerns eligible under the WOSB Program and SB. Each subcategory of SB shall be addressed. In describing its SB Utilization Strategy for this solicitation, the Offeror shall, as applicable:

(a) Describe its approach to identifying SB Concerns in accordance with SOW paragraph 12.0.

(b) Describe the extent of participation of SB Concerns on this contract, including a detailed description of the supplies and services for each SB Concern subcategory, and the complexity and variety of the work SB Concerns are to perform. For each SB Concern specifically identified in the proposal, provide the SB Concern's CAGE code, or, if the SB Concern is not registered in the System for Award Management (SAM), at a minimum provide evidence of self-certification in accordance with FAR 19.703(b) as a SB Concern. Where possible, provide documentation regarding enforceable commitments to utilize each SB Concern.

(c) Identify processes to meet the 25% mandatory requirement (in accordance with SOW paragraph 12.0) that will be used on this contract.

(d) Include a table which lists all proposed first tier subcontracts individually by name and NAICS code for work being subcontracted, subcontractor’s address and DUNS Number and/or Cage Code, their business types based on the NAICS for the specific work being subcontracted, the proposed hours and percentage of total level of effort to be performed, and SOW Paragraphs to be performed by each. A sample table is provided below:

DUNS 123456789

Acme Ltd. (541512)

Smith, Jones and Assoc.

ABC Comp.

SB – Small Business

8(a) – 8(a) SB

EDWOSB – Economically Disadvantaged Women-Owned SB HBZ – HUBZone SB

SDVOSB – Service-Disabled Veteran-Owned SB

WOSB – Women-Owned SB

The hours and percentages listed in the table above will be cross-checked with the cost proposal to ensure that they match the actual proposed effort by the Subcontractors named in relation to the overall proposed price of all CLINS. In addition, the System for Award Management (SAM) https://www.sam.gov/portal/SAM/#1 database will be viewed to verify the small business category or categories of the proposed small businesses in the table. The Offeror shall list all applicable business types for which each Subcontractor qualifies.

(e) If the contract is awarded to a small business, the awarded contract shall include FAR Clause 52.219-14 “Limitations on Subcontracting.”

(f) SB Subcontracting Plans: The Large Business Offeror shall provide its SB Subcontracting Plan conforming to the requirements of FAR 19.7 and DFARS 219.7 as Annex B, unless there is an already approved comprehensive SB Plan. The Subcontracting Plan of the successful Offeror(s) will be reviewed and approved by the PCO prior to contract award. See FAR 19.702(a) (1) Statutory Requirements, regarding failure of the apparent successful Offeror to negotiate and submit a Subcontracting Plan acceptable to the Contracting Officer. The successful Offeror’s approved Subcontracting Plan will be incorporated into the resultant contract.

(g) Prospective offerors are forewarned that utilization of excessive subcontracting will be considered as additional proposal risk. Excessive subcontracting is considered as any offeror whose team includes more than three subcontractor team members.

2.0 VOLUME 2: PAST PERFORMANCE

2.1 General

Sources of past performance evaluation information include information provided by the Offeror in response to the solicitation, information obtained from questionnaires, and any other sources available to the Government, to include, but not limited to, the Past Performance Information Retrieval System (PPIRS), Federal Awardee Performance and Integrity Information Systems, Electronic Subcontract Reporting System, or other databases; the Defense Contract Management Agency; and interviews with Program Managers, Contracting Officers, and Fee Determining Officials.

The Offeror shall complete the Past Performance Information Form, Attachment L-1, for each past performance reference performed within three years of the solicitation release date. The Offeror shall submit no more than five Past Performance Information Forms as the Prime Contractor, no more than two forms for each principal subcontractor, and/or no more than two forms for each JV team member. The Offeror shall submit written consent from its principal subcontractor(s) and JV team member(s) that will allow the Government to coordinate any past performance issues directly with the Offeror. If the Offeror does not submit the written consent, the Government will address any past performance issues directly with the principal subcontractor or JV Team member and the Offeror will forfeit the opportunity to participate in any related discussions. Consequently, for any principal subcontractor and JV team member that does not provide the written consent, the Offeror shall provide the name, address, phone number, and email address with whom the Government may address any past performance issues.

The Offeror shall provide a narrative on each Past Performance Information form in the “Contract Effort Description” area that clearly describes how each contract reference has relevant work effort that matches the relevancy definitions specified in Section M of the solicitation. Additionally, the Offeror shall provide one electronic copy of the Statement of Work/Performance Work Statement for each contract reference as Annex 1 to this Past Performance Volume.

The primary source of past performance information will be PPIRS. If a Contractor Performance Assessment Report (CPAR) exists for multiple years for the same contract/order, all periods of performance within the recency period specified above, for that contract/order, will be used for evaluation. In the event a CPAR does not exist for a past performance reference, the Offeror shall submit a Contractor Performance Assessment Questionnaire (CPAQ), Attachment L-2, to the Program Manager who is the Assessing Official. The Offeror shall include instructions for the Program Manager to send completed questionnaires within two weeks of its receipt via e-mail to Chris Bigelow, at Christopher.Bigelow@navy.mil, thereby allowing the customer approximately two weeks to complete their response. All CPAQs should be received by the Government concurrently with the Offeror’s proposal submission.

3.0 VOLUME 3: PRICE/COST PROPOSAL

Note: If subcontractors are proposed, they shall provide the same information required for the prime contractor, unless otherwise noted below.

3.1 Volume Content:

(a) This Volume shall contain the Contract Compliance information specified below as follows:

i. Offeror Summary Table: The Offeror shall complete the table below. The Offeror shall include all subcontractors and JV team members who will be involved with the performance of the contract and list all sites where the work will be performed. If a JV teaming or subcontracting arrangement is proposed, identify the work share, distribution elements, and ratios that each contractor will perform using the table below. Also provide a definition of the legal relationship between the entities if it is other than a Prime/subcontractor relationship.

Contractor Name

(Indicate Prime, JV Team Member, or Sub)

ii. Signed SF33 or SF1449 for basic solicitation and acknowledgment of each amendment, including completion of any RFP clause or provision that requires a fill-in or response.

iii. Signed Representations, Certifications, and Acknowledgements and/or System for Award Management (SAM).

iv. Guarantee the length of proposal validity (for at least 180 days after proposal submission).

(b) This Volume shall also contain a copy of Section B with the Contract Line Item (CLIN) and Sub-CLIN Unit Prices and, for evaluation purposes, the Total Prices filled in using the estimated quantities value in the solicitation and the instructions below. Section B prices shall be provided separately in one digital data copy in MS Office 2010 Excel format on CD-ROM media. Within all Excel spreadsheets, the Offeror shall use formulas and functions to the maximum extent possible and avoid using output type “value only” cells. If links are utilized, supply those referenced files. Spreadsheets shall not be protected.

(c) All price/cost and price/cost supporting information shall be contained in Section B and the price/cost proposal. No price or pricing information shall be included in any other technical volume including cover letters. Offeror are responsible for submitting sufficient information to enable the Government to fully evaluate their price/cost proposal.

3.2 Ground Rules and Assumptions:

(a) As this is a competitive acquisition with adequate price competition anticipated, certified cost or pricing data in accordance with FAR 15.403-1 is not required. However, in the event that adequate price competition does not exist after receipt of proposals, the Government reserves the right to request additional cost or pricing data as necessary from both the Offeror and subcontractors. Further, the Offeror may be required to provide a Certificate of Current Cost or Pricing Data prior to award, pursuant to FAR 15.406-2.

(b) The Offeror shall provide sufficient information to support its price/cost as well as an explanation of all ground rules and assumptions that affect the price/cost estimates.

(c) If subcontractors are proposed, they shall provide the same information required for the prime contractor, unless otherwise noted below.

3.3 Price/Cost Information:

Offerors shall submit their fully completed cost/price proposal utilizing the Cost Summary Format (Attachment L-3). The spreadsheet shall be formatted on letter size (8.5 X 11) paper and shall be unprotected and unlocked, with formulae intact to show mathematical operations. The Offeror shall use the CLIN Summary tab to breakout total proposed costs by CLIN.

Complete Attachment L-4, (Fully Burdened Labor Rates), detailing the fully burdened labor rates for all prime contractors and their subcontractor personnel. Fully burdened labor rates are defined as direct labor rates plus all applicable burdens, to include indirect rates, fee, and subcontractor pass-through costs where applicable. For subcontractor labor, the fully burdened labor rates shall be inclusive of any pass-through charges (e.g., subcontractor handling, fixed fee on subcontractor labor, etc.) applied by the prime contractor. Proposed fully burdened labor costs may be subject to the NAVAIR labor tripwire identified in Section M. Offerors that propose a fully burdened per employee labor cost exceeding the labor tripwire shall provide rationale in their cost proposal narrative section that justifies the reasonableness of the tripwire cost for the applicable employees.

(a) Reasonableness and Consistency between the Technical and Price/Cost Volumes. Demonstrate that the unit prices and the total proposed price/cost are reasonable, realistic, and commensurate with the work required by the solicitation and the technical and management approaches identified in the Technical Volume of the proposal. Show traceability with the CLINs, SubCLINs, PWS, proposed effort, proposed manning levels, and prices/costs. Refer to specific sections in the Technical Volume as needed to illustrate the consistency between the Price/Cost Volume and the Technical Volume. The Offeror shall explain any inconsistency between promised performance and price/cost, as well as any appearance of unbalanced pricing, in the proposal.

(b) Direct/Indirect Rates: The Offeror shall submit Forward Pricing Rate Agreements (FPRAs), Collective Bargaining Agreements (CBAs), and Area Wage Determinations (AWDs) as applicable for all proposed personnel. The Offeror shall identify whether the labor rates proposed are FPRAs, CBAs, AWDs, ACO/DCAA recommended rates (FPRRs), or Offeror proposed rates (FPRPs). The Offeror shall propose in compliance with the current hourly rate set forth in the Department of Labor Wage Determination as applicable. The Offeror shall provide Defense Contract Audit Agency (DCAA) Information/Payroll Verification information as follows: A DCAA point of contact, with a current e-mail address, must be provided for the prime and each subcontractor. The Offeror and proposed subcontractors shall provide the most current DCAA Provisional Billing Rate Approval Letter, DCAA Final Billing Rate Approval Letter, and/or DCAA Forward Pricing Rate Agreement recommendation, payroll verification for currently employed proposed personnel, and any other information necessary to substantiate the rates proposed. Payroll verification shall consist of a form containing the title, direct labor rate, and a signed certification by an authorized representative of the company that the information contained in the form is correct. For key personnel contingent hires, the offeror shall provide contingent offer letters outlining salary information for contingent hire employees. For any prospective hires for non-key personnel, provide information to substantiate the rates proposed. All contingent hires shall have a letter of intent submitted under the Cost Volume. The letter of intent is a separate written agreement signed by the potential employee(s) to work for the Offeror effective at contract award. Any proposed consultants shall have a consultant agreement substantiating the rates proposed. If a composite rate or other pricing methodology (e.g. cost estimating relationships) is utilized, the Offeror shall demonstrate how those rates were developed. Subcontractors and team members shall provide this information either separately or included in the Offeror’s submission of this document.

The following definition applies:

- A “contingent hire” is an individual who has committed, under a signed letter of intent, inclusive of salary information, to being employed by the Offeror if the Offeror is awarded the contract.

If any of the rates utilized by the Offeror or any subcontractors differ from the DCAA information and/or payroll verification, a justification shall be provided for the difference. If DCAA has not reviewed the rate information for an Offeror or one of its subcontractors, the Offeror must submit a detailed justification of the proposed direct and indirect rates. The Offeror shall also provide documentation verifying that it has a DCMA approved Accounting System in accordance with DFARS clause 252.242-7006, or state that its Accounting System has not been approved by DCMA. Offerors shall provide the last three (3) years of actual indirect information. The Government may compare a prospective Offeror’s labor category rate to the average labor rate from industry.

(c) Except for FFP type of CLINs (e.g., CPFF, CPIF, or CPAF) under the solicitation, the Offeror shall fully disclose the buildup of cost/price of each CLIN.

(d)When completing the Cost Summary Spreadsheet (Attachment (L-3)), the Offeror shall not utilize any fully burdened hourly rates when pricing the labor of its employees.

(e) Provide a narrative that addresses any assumptions made during the preparation of the cost/price proposal and discuss the basis for the cost elements listed below:

· Direct labor rates by category. The Offeror is required to submit labor rates for all proposed current, contingent, and prospective hire individuals. If composite or category averages are proposed, provide a breakdown of how rates are developed. If necessary provide a narrative to describe derivation of labor rates, use of uncompensated overtime, pools to which indirect rates are applied, historical /provisional billing rates for indirect rates for the last 3 years and description, and amount of proposed other direct costs. If the Offeror requires the use of consultants in performance of the effort, the consultant cost shall be captured under the appropriate labor CLIN not the ODCs CLIN.

· Escalation on labor. Offerors, including subcontractors, shall address escalation for all Non-SCA labor categories, and shall provide rationale for the specific escalation rate used. Escalation of 3% per year shall be applied successively to the proposed option years direct labor rates for employees. Offerors that do not include escalation, or an explanation as to why it is not included, may be considered unrealistically low and may have their proposals adjusted by the Government to include escalation in the ordering periods.

· Indirect costs (e.g., Overhead, Fringe Benefits, General & Administrative (G&A), etc.)

· Information needed to explain the offeror’s estimating practices

· Profit/Fee: Identify profit/fee rate and total amounts proposed and identify the various cost elements to which the profit/fee is being applied. Profit, Base, Award, and Incentive fee rates, as applicable in Section B, must be clearly distinguishable. Profit/Fee shall not be applied to ODCs.

· Other Direct Costs (ODCs) by specific cost element (e.g., Travel, Material, and NMCI). Reimbursement for Travel will be in accordance with FAR 31.205-46. If the Offeror proposes burdens on the Government provided ODC estimates, the Offeror shall provide a percentage breakdown of the Offeror’s indirect costs and burdens added to the Government estimates for any and all Cost Reimbursable CLINs in Section B.

· When the Offeror elects to claim Cost of Money (COM) as an allowable cost, the Offeror must submit a COM form and show the calculations of the proposed amount.

3.4 Total Professional Compensation Plan:

The Offeror shall provide a Total Compensation Plan in accordance with FAR 52.222-46 for each proposed professional employee. The Plan shall include, but not limited to, the following items:

(1) The proposed direct labor rate for each professional employee proposed;

(2) The total cost of the proposed fringe benefits package for each professional employee proposed, including:

(a) list and brief summary of the benefits that make up the fringe package (e.g. vacation time, sick leave, stock, incentive plans, family leave, life insurance, severance pay, bonus plans, health insurance, holidays, location allowance, retirement benefits); and

(b) an itemization of the benefits that require employee contributions, and the amount of that contribution as a percentage of the cost of the particular benefit; and

(c) Prospective offerors are forewarned that a benefits package that is less than the industry average will be considered as additional proposal risk.

(3) Data, such as recognized national and regional compensation surveys and studies of professional, public and private organizations, used by the Offeror in establishing the total compensation structure.

3.5 Government Furnished Information

3.5.1 ODCs

The Government's estimate for ODCs for the prime and all subcontract efforts, unburdened is listed below:

The values provided above are for proposal purposes only. The Offeror shall propose costs/prices for the ODC CLINs. If it is the Offeror’s accounting practice to apply (and invoice for) burdens with regards to ODCs, then the Offeror shall propose the ODC amount plus the addition of the applicable burdens. If the Offeror chooses not to burden ODCs, then the Offeror shall propose an H-clause to identify this special term and condition. (NO FEE SHALL BE APPLIED TO ODCs).

Estimated Travel. For informational purposes only the estimated yearly travel cost is approximately $799,290 and the following table of estimated travel is provided:

3.5.2 Labor Hours

The Government estimate is 872,300 hours for the entire work effort, inclusive of options. A work-year is defined as 1,920 hours exclusive of holidays and leave. For evaluation purposes, the Offeror shall propose the labor categories/hours as outlined below:

*Key Personnel

The Offeror shall provide a signed letter of intent for each individual proposed as Key Personnel, including current employees. Each signed letter of intent must, at a minimum, state the following:

My name is ______________ [insert proposed employee’s name]. I agree to work for _____________ [insert company’s name] as a _____________ [insert appropriate labor category title from paragraph 4.0 of the SOW] at an hourly rate of $____________ from _______to_________[insert current dates]. I can be reached at ____________ [insert current phone number].

Corporate Officer Signature Proposed Employee Signature

[Insert name of Corporate Officer] [Insert name of Proposed Employee]

Date: _____________________ Date: _______________________

3.5.3 Incumbent Information

The Prime Incumbent contractor is: Jacob’s Technology Inc.

The Subcontractor Incumbent Contractors are: NDTI and eLE.

(End of Summary of Changes)