Information-PricingandBudgetNarrative02-18-10.pdf

QUESTIONS RESPONSES TO QUESTIONS

35. Article L.2.c.1 (page 95) and Article L.2.c.3 (page 97) of the RFP both detail specific information to be submitted to permit the government to determine price reasonableness or cost realism. This information includes Direct Labor, Subcontracted Items, Raw Materials, Purchased Parts, Fringe Benefits, Indirect Costs, Special Equipment, Travel, Shipping and other costs.

This information seems to be applicable to the “Final GMP” determination and not the “Target GMP” proposal when adequate competition exists. Please verify that this information is not required with the “Target GMP” proposal.

35. The government has identified below, the information to be contained in the Budget Narrative and the types of supporting documentation to allow the government to make a determination of price reasonableness.

36. Article L.2..c.4(b)(1) (page 99) states “The offeror shall prepare and submit cost or pricing data and supporting attachments in accordance with Table 15.2 of FAR 15.408.” Please clarify is this is required as part of the Target GMP proposal on March 8, 2010 or as part of the Final GMP proposal.

36. See the response to 35. above

The information submitted shall consist of data to permit the Contracting Officer and authorized representatives to determine price reasonableness or cost realism, e.g., information to support an analysis of material costs (when sufficient information on labor and overhead rates is already available), or information on prices and quantities at which the offeror has previously sold the same or similar items.

Any information submitted must support the price proposed. Include sufficient detail or cross references to clearly establish the relationship of the information provided to the price proposed.

Support any information provided by explanations or supporting rationale as needed to permit the Contracting Officer and authorized representative to evaluate the documentation.

Budget Narrative and Supporting Documentation

The Government has indicated below the information to be covered in the budget narrative and the types of documentation required for the Government to make a determination of price reasonableness.

The Offeror shall provide a Budget Narrative at the level of detail set forth in the Pricing Schedules. Consistent with the Pricing Schedule, the Offeror’s Budget Narrative should explain the prices by phase of services. For the construction divisions (a through p) of the Pricing Schedules, Offerors should state the assumptions used and reference the appropriate sections of the drawings and specifications on which these assumptions are based.

1. Labor: Indicate the positions, hourly rate, number of hours and the price for each position.

Identify any escalation for rate increases from one phase to another. Payroll registers and GSA schedules may be submitted to support proposed rates.

2. Labor Burdens: Identify all labor burdens applied to labor and provide the basis for the labor burdens. Provide a copy of the Offeror’s Negotiated Indirect Cost Rate Agreements (NICRAs) or results of other audits performed of labor, preferably by the federal government, or a certified public accounting firm may be submitted as support.

3. Construction Divisions (a through p) of Pricing Schedules: For the construction divisions (a through p) of the Pricing Schedules, Offerors should state the assumptions used and reference the appropriate sections of the drawings and specifications on which these assumptions are based.

4. CM Fees (Including bonds): Provide your assumptions for determining the CM Fees, and provide supporting documentation.

5. Liability Insurance: Please state the basis for liability insurance and providing supporting documentation such as premium rates.

6. Overhead (Base and %): Identify all burdens applied to non-labor and provide the basis for these burdens. Provide a copy of the Offeror’s Negotiated Indirect Cost Rate Agreements (NICRAs) or results of other audits performed, preferably by the federal government, or a certified public accounting firm as support.

7. General & Administration (Base and %): %): Identify the Offeror’s G&A burden and provide the basis for these burdens. Provide a copy of the Offeror’s Negotiated Indirect Cost Rate Agreements (NICRAs) or results of other audits performed, preferably by the federal government, or a certified public accounting firm as support.

8. Profit (Base and %): What is the basis for your proposed profit.

9. Buy-Out Contingency: Provide the rationale for the proposed buy-out contingency.

10. Construction Contingency: Provide the rationale for the proposed construction contingency.

11. Guaranteed Maximum Price: State the Offeror’s guaranteed maximum price (GMP). This will be the target GMP for award.

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