NACS_Draft_RFP_Cost_Price_Proposal_(Volume_III)_Sections_L_and_M.pdf

NNA17554082R SECTION L

Cost/Price Proposal (Volume III)

SECTION L

(c) Cost/Price Proposal (Volume III)

1. Introduction

The Offeror’s cost proposals shall consist of a proposed cost plus award fee for the Phase-in and estimated costs and proposed award fee for the NACS Core Contract Management and NACS

ARC Core Technical Services, as well as for the NACS ARC IDIQ Task Orders and NACS

GSFC IDIQ Task Orders requirements. Proposed costs will be analyzed to determine the cost/price and associated risks of doing business with the Offeror.

The Government assumes adequate price competition will exist thereby negating the need for the certification of cost and pricing data with this proposal submission (See FAR 15.403-1).

The Offeror’s cost proposal shall be submitted in one volume labeled “Volume III Cost

Proposal”. To ensure the Government is able to perform a fair assessment of the proposed pricing, a responsive submission shall:

(a) Explain in detail all pricing and estimating techniques;

(b) Disclose the basis of all projections, rates, ratios, percentages, and factors in sufficient detail to facilitate the Source Evaluation Board’s (SEB’s) understanding and ability to mathematically verify the results of these estimating tools;

(c) Comply with FAR Clause 52.222-41, Service Contract Labor Standards and FAR Clause

52.222-46, Evaluation of Compensation for Professional Employees;

(d) Comply with applicable Federal Acquisition Regulation (FAR) and NASA FAR

Supplement (NFS) requirements;

(e) Include a narrative portion that explains all judgment-based elements of cost/price projections and profit policies including any proposed price ceilings and team fee sharing arrangements. Submit the proposed award fee and fixed fee rates to be used on the contract; and

(f) Include a completed and signed Proposal Cover Sheet (Form JA 038), all Exhibits of the

Cost Template Workbook, a properly completed Table CP1 (Proposal Prime/Subcontractor

Information Summary), and all information specified in Sections 2 through 7, below.

The RFP-specified formats provided herein are structured on a Contract Year (CY) basis. In preparing the proposal, summary level information is required by the templates. However, the Offeror’s own format shall be used for submitting supporting information. Offerors are instructed to complete all applicable templates provided herein and provide supporting information to explain the basis of estimate for the proposed amounts.

For Cost Proposal purposes, Major Subcontractors are defined as those subcontractors providing a total value of $4,000,000.00 or more for the total ten-year period of performance.

In addition to the Prime Offeror submitting a Cost Proposal, any Major Subcontractor with a potential estimated total value in excess of $4,000,000 for the total ten-year period of performance shall also submit a Cost Proposal following the specified format.

Cost Proposals shall be submitted using Government provided cost templates described below. The templates are included as J.1(b) Attachment 3, “Cost Template Workbook.”

Prospective subcontractors shall submit their Cost Proposals through the Prime

Offeror. If a subcontractor does not wish to reveal proprietary data to the Prime

Offeror, it may provide its fully detailed Cost Proposal (both hard copy and electronic copy) in a sealed envelope and also provide a “sanitized” version to the Prime Offeror showing only a summary of proposed direct labor hours, proposed total estimated cost and proposed fee, but not the data leading to the development thereof. The Prime

Offeror is responsible for submitting a comprehensive proposal including all required subcontractor proposals no later than the date and time specified in this RFP.

A Work Year Equivalent (WYE) is a full time equivalent that is defined as follows: the proposed productive hours needed to comprise one average full time employee. A WYE may be composed of one employee or several part time employees. A productive WYE is defined as follows: the total available hours for productive work in a year, excluding overtime and paid time off (vacation, holiday, etc.).

All dollar amounts for proposed costs shall be rounded to the nearest whole dollar, $xxx,xxx.

All direct labor rates shall be rounded to the nearest penny, $xx.xx. All indirect cost rates

(percentages) shall be rounded to the second decimal place, xx.xx%. All Cost of Money Factors, if proposed, shall be rounded to the third decimal place if expressed as a percentage (xx.xxx%) or the fifth decimal place if expressed as a decimal (0.xxxxx). Offerors and subcontractors shall accomplish this by use of the ROUND function in Excel for all costs and rates computed by formula (such as Year 2 labor rate = Year 1 labor rates x [1 + escalation factor] or fringe benefits costs = direct labor cost x fringe benefits rate).

2. Cost Template Workbook

Format: In order to facilitate the Government’s evaluation of Offerors’ Cost Proposals, Offerors are required to complete and submit the Excel workbook file entitled Cost Template Workbook, provided as J.1(b) Attachment 3 of this solicitation. The worksheets located within the workbook contain the following:

Exhibit 1: Summary of Proposed Price

Exhibit 2: Summary of Elements of Cost – NACS Core Contract Management (Prime Offeror)

Exhibit 2a: Summary of Elements of Cost – NACS Core Contract Management (Major

Subcontractors)

Exhibit 3: Summary of Elements of Cost – NACS ARC Core Technical Services (Prime

Offeror)

Exhibit 3a: Summary of Elements of Cost – NACS ARC Core Technical Services (Major

Subcontractors)

Exhibit 4: Summary of Elements of Cost – NACS ARC IDIQ Task Orders (Prime Offeror)

Exhibit 4a: Summary of Elements of Cost – NACS ARC IDIQ Task Orders (Major

Subcontractors)

Exhibit 5: Summary of Elements of Cost – NACS GSFC IDIQ Task Orders (Prime Offeror)

Exhibit 5a: Summary of Elements of Cost – NACS GSFC IDIQ Task Orders (Major

Subcontractors)

Exhibit 6: Summary of Proposed Direct Labor Rates

Exhibit 7: Summary of Key Personnel Direct Labor Rates

Exhibit 8: Direct Labor Cost Summary – NACS Core Contract Management

Exhibit 9: Direct Labor Cost Summary – NACS ARC Core Technical Services

Exhibit 10: Direct Labor Cost Summary – NACS ARC IDIQ Task Orders

Exhibit 11: Direct Labor Cost Summary – NACS GSFC IDIQ Task Orders

Exhibit 12: Summary of Indirect Cost Rates

Exhibit 13: Overhead and/or Fringe Benefits (Composition of Burden Pool)

Exhibit 14: General and Administrative Expense (G&A)

Exhibit 15: Minor Subcontractors

Exhibit 16: Incumbency Assumptions

Exhibit 17: Phase-In

Exhibit 18: Schedule of Subcontracts

Formulas: All formulas used in the workbook must be clearly visible in the individual cells and verifiable. Whereas linking among the worksheets within the workbook may be necessary, the use of external links (source data not provided to NASA) of any kind is prohibited. The workbook must contain no macros or hidden cells.

Locks: The Cost Template Workbook shall not be locked/protected or secured by passwords.

3. Cost Proposal Organization

The Government intends to use personal computers with Microsoft Excel to aid in the evaluation of the cost proposal. In addition to the hardcopy requirements of the preceding section, each

Prime Offeror and Major Subcontractor is required to submit its Cost Template Workbook and any other electronic cost data, including formulas, on CD(s) or USB stick.

Cost Proposal Cover Sheet (Required of Prime and Major Subcontractors): A single page containing all the information specified in Section 1, General Instructions, Part A, Items 1 through 11 of Table 15-2 as shown in FAR 15.408 is required. JA Form 038, provided as J.1(b)

Attachment 2 in this solicitation, must be completed and used to satisfy this requirement. The proposal cover sheet shall be properly completed and signed by an official authorized to contractually bind your company. Proper completion includes identification of the Offeror’s or

Subcontractor’s Commercial and Government Entity (CAGE) Code, the cognizant Defense

Contract Audit Agency (DCAA) Office and, if applicable, the cognizant Defense Contract

Management Agency (DCMA) Office (Contract Management Office) in Section 8 of the form, as well as proposal page references in Section 7e of the form for the cost/price information submitted. The Line Item numbers and Prices listed in Section 7 should match the amounts from

Exhibit 1 of the Offeror’s or Subcontractor’s Cost Proposal. The Line Item prices shown in

Section B of the Offeror’s model contract should also match those shown in Exhibit 1 and JA

Form 038 for Phase-In, NACS Core Contract Management and NACS ARC Core Technical

Services. The prices shown in Exhibit 1 and JA Form 038 for NACS ARC IDIQ Task Orders and NACS GSFC IDIQ Task Orders are based on a costing model and are for proposal evaluation purposes only and thus are not to appear in Section B of the Offeror’s model contract.

The Offeror shall use the proposed award fee rate to complete the Cost Template

Workbook Exhibits, where applicable.

Exhibit 1, Summary of Proposed Price (Required of Prime Offeror and Major

Subcontractors): This exhibit summarizes the Offeror’s (or Major Subcontractor’s) overall proposed price. The amounts shown in Exhibit 1 are to be linked from Exhibit 2 (Exhibit 2a for

Major Subcontractors) for NACS Core Contract Management, from Exhibit 3 (Exhibit 3a for

Major Subcontractors) for NACS ARC Core Technical Services, from Exhibit 4 (Exhibit 4a for

Major Subcontractors) for NACS ARC IDIQ Task Orders, from Exhibit 5 (Exhibit 5a for Major

Subcontractors for NACS GSFC IDIQ Task Orders and from Exhibit 17 for Phase-in.

Exhibit 2, Summary of Elements of Cost – NACS Core Contract Management (Prime

Offeror) (Required of Prime Offeror only): This exhibit summarizes the elements of costs by contract year for the various periods in the contract (basic and options) for the NACS Core

Contract Management. Details of the various elements of cost are to be shown in the exhibit.

The Prime Offeror’s direct labor hours and dollars should be linked from Exhibit 8. Indirect costs (fringe benefits, overhead, material/subcontracting, G&A expense) for each Contract Year should be based on the rates shown in Exhibit 12 for the corresponding period.

This exhibit should also show the direct labor hours and total price (cost and fee/profit), by contract year, for each subcontractor from Exhibit 2a of the subcontractor’s proposal for Major

Subcontractors and from Exhibit 15 of the Offeror’s proposal for Minor Subcontractors.

Additionally, this exhibit should show any proposed Other Direct Costs (ODCs) such as travel, training, supplies/equipment and shipping. Only the total amounts for each proposed ODC type will be shown in this Exhibit, however Offeror’s should provide data in their own format, as well as narrative explanation, detailing how the estimated costs were determined

Exhibit 2a, Summary of Elements of Cost – NACS Core Contract Management (Major

Subcontractors) (Required of Major Subcontractors only and only if the subcontractor is proposing on the Contract Management portion of the contract): This exhibit is similar to

Exhibit 2, but has been modified for use by Major Subcontractors in lieu of Exhibit 2. This exhibit summarizes the elements of costs by contract year for the various periods in the contract

(basic and options) for the NACS Core Contract Management. Details of the various elements of cost are to be shown in the exhibit provided by the Subcontractor in the sealed envelope. The subcontractor’s direct labor hours and dollars should be linked from Exhibit 8 of its cost proposal. Indirect costs (fringe benefits, overhead, material/subcontracting, G&A expense) for each Contract Year should be based on the rates shown in Exhibit 12 of the subcontractor’s cost proposal for the corresponding period. In its “sanitized” version, provided to the Prime

Contractor, the Subcontractor may limit the information in this exhibit to the Productive

Labor Hours, Total Cost, Fee or Profit and Total Cost and Fee/Profit if it chooses.

Exhibit 3, Summary of Elements of Cost – NACS ARC Core Technical Services (Prime

Offeror) (Required of Prime Offeror only): This exhibit summarizes the elements of costs by contract year for the various periods in the contract (basic and options) for the NACS ARC Core

Technical Services. Details of the various elements of cost are to be shown in the exhibit. The

Prime Offeror’s direct labor hours and dollars should be linked from Exhibit 9. Indirect costs

(fringe benefits, overhead, material/subcontracting, G&A expense) for each Contract Year should be based on the rates shown in Exhibit 12 for the corresponding period.

contract year, for each subcontractor: from Exhibit 3a of the subcontractor’s proposal for Major

This exhibit does not include any amounts for Other Direct Costs (ODCs). All ODCs are included in the NACS ARC IDIQ Task Orders and NACS GSFC IDIQ Task Orders.

Exhibit 3a, Summary of Elements of Cost – NACS ARC Core Technical Services (Major proposing on the Technical Services portion of the contract): This exhibit is similar to

Exhibit 3, but has been modified for use by Major Subcontractors in lieu of Exhibit 3. This exhibit summarizes the elements of costs by contract year for the various periods in the contract

(basic and options) for the NACS ARC Core Technical Services. Details of the various elements of cost are to be shown in the exhibit provided by the Subcontractor in the sealed envelope. The subcontractor’s direct labor hours and dollars should be linked from Exhibit 8 of its cost proposal. Indirect costs (fringe benefits, overhead, material/subcontracting, G&A expense) for each Contract Year should be based on the rates shown in Exhibit 12 of the subcontractor’s cost proposal for the corresponding period. In its “sanitized” version, provided to the Prime

Exhibit 4, Summary of Elements of Cost – NACS ARC IDIQ Task Orders (Prime Offeror)

(Required of Prime Offeror only): This exhibit summarizes the elements of costs by contract year for the various periods in the contract (basic and options) for the NACS ARC IDIQ Task

Orders. Details of the various elements of cost are to be shown in the exhibit. The Prime

Offeror’s direct labor hours and dollars should be linked from Exhibit 10. Indirect costs (fringe benefits, overhead, material/subcontracting, G&A expense) for each Contract Year should be based on the rates shown in Exhibit 12 for the corresponding period. The Prime Offeror shall use the maximum award fee rate.

contract year, for each subcontractor: from Exhibit 4a of the subcontractor’s proposal for Major

For evaluation purposes, this exhibit includes the amounts shown in the table below for estimated Hardware/Software/Maintenance and Travel/Training Other Direct Costs (ODCs).

Offeror’s shall not deviate from the amounts in the exhibit, though the amounts may be divided among Offeror and subcontractors.

Hardware/Software/

Maintenance Travel/Training Total

Base Period $40,000,000 $200,000 $40,200,000

Option Period 1 $42,000,000 $210,000 $42,210,000

Option Period 2 $44,100,000 $220,500 $44,320,500

Option Period 3 $46,305,000 $231,525 $46,536,525

Option Period 4 $48,620,250 $243,101 $48,863,351

Option Period 5 $51,051,263 $255,256 $51,306,519

Option Period 6 $53,603,826 $268,019 $53,871,845

Option Period 7 $56,284,017 $281,420 $56,565,437

Option Period 8 $59,098,218 $295,491 $59,393,709

Option Period 9 $62,053,128 $310,266 $62,363,394

Total $503,115,702 $2,515,578 $505,631,280

All Hardware/Software/Maintenance and Travel/Training ODC amounts provided in the Exhibit are exclusive of any indirect expenses and profit. Therefore, unless it is not the Offeror’s normal accounting practice to do so, these costs should bear their applicable portion of G&A or material handling expense. Fee on these costs is at the option of the Offeror.

Exhibit 4a, Summary of Elements of Cost – NACS ARC IDIQ Task Orders (Major proposing on the IDIQ Task Orders portion of the contract): This exhibit is similar to

Exhibit 4, but has been modified for use by Major Subcontractors in lieu of Exhibit 4. This exhibit summarizes the elements of costs by contract year for the various periods in the contract

(basic and options) for the NACS ARC IDIQ Task Orders. Details of the various elements of cost are to be shown in the exhibit provided by the Subcontractor in the sealed envelope. The subcontractor’s direct labor hours and dollars should be linked from Exhibit 10 of its cost proposal. Indirect costs (fringe benefits, overhead, material/subcontracting, G&A expense) for each Contract Year should be based on the rates shown in Exhibit 12 of the subcontractor’s cost proposal for the corresponding period. In its “sanitized” version, provided to the Prime

Exhibit 5, Summary of Elements of Cost – NACS GSFC IDIQ Task Orders (Prime Offeror)

(Required of Prime Offeror only): This exhibit summarizes the elements of costs by contract year for the various periods in the contract (basic and options) for the NACS GSFC IDIQ Task

Orders. Details of the various elements of cost are to be shown in the exhibit. The Prime

Offeror’s direct labor hours and dollars should be linked from Exhibit 11. Indirect costs (fringe benefits, overhead, material/subcontracting, G&A expense) for each Contract Year should be based on the rates shown in Exhibit 12 for the corresponding period. The Prime Offeror shall use the maximum award fee rate.

contract year, for each subcontractor: from Exhibit 5a of the subcontractor’s proposal for Major

For evaluation purposes, this exhibit includes the amounts shown in the table below for estimated Hardware/Software/Maintenance and Travel/Training Other Direct Costs (ODCs).

Offeror’s shall not deviate from the amounts in the exhibit, though the amounts may be divided among Offeror and subcontractors.

Hardware/Software/

Maintenance Travel/Training Total

Base Period $1,000,000 $75,000 $1,075,000

Option Period 1 $1,050,000 $78,750 $1,128,750

Option Period 2 $1,102,500 $82,687 $1,185,187

Option Period 3 $1,157,625 $86,822 $1,244,447

Option Period 4 $1,215,506 $91,163 $1,306,669

Option Period 5 $1,276,282 $95,721 $1,372,003

Option Period 6 $1,340,095 $100,507 $1,440,602

Option Period 7 $1,407,100 $105,533 $1,512,633

Option Period 8 $1,477,455 $110,809 $1,588,264

Option Period 9 $1,551,328 $116,350 $1,667,678

Total $12,577,891 $943,342 $13,521,233

All Hardware/Software/Maintenance and Travel/Training ODC amounts provided in the Exhibit are exclusive of any indirect expenses and profit. Therefore, unless it is not the Offeror’s normal accounting practice to do so, these costs should bear their applicable portion of G&A or material handling expense. Fee on these costs is at the option of the Offeror.

Exhibit 5a, Summary of Elements of Cost – NACS GSFC IDIQ Task Orders (Major proposing on the IDIQ Task Orders portion of the contract): This exhibit is similar to

Exhibit 5, but has been modified for use by Major Subcontractors in lieu of Exhibit 5. This exhibit summarizes the elements of costs by contract year for the various periods in the contract

(basic and options) for the NACS GSFC IDIQ Task Orders. Details of the various elements of cost are to be shown in the exhibit provided by the Subcontractor in the sealed envelope. The subcontractor’s direct labor hours and dollars should be linked from Exhibit 11 of its cost proposal. Indirect costs (fringe benefits, overhead, material/subcontracting, G&A expense) for each Contract Year should be based on the rates shown in Exhibit 12 of the subcontractor’s cost proposal for the corresponding period. In its “sanitized” version, provided to the Prime

Exhibit 6, Summary of Proposed Direct Labor Rates (Required of Prime Offeror and

Major Subcontractors): This exhibit summarizes the Offeror‘s (or Subcontractor’s) proposed direct labor rates for the NACS contract.

Standard Labor Categories (SLCs): The Government has provided Standard Labor Categories in J.1(b) Attachment 1. The SLC’s are listed under ARC Core Technical Services & IDIQ and

GSFC IDIQ in Exhibit 6. The Offeror shall map its company labor categories (to be listed in

Column B, Offeror’s Category) for ARC Core Technical Services & IDIQ and GSFC IDIQ to the

SLCs in Column A (see example in the Exhibit).

For Contract Management there is to be no entry in Column A. The Offeror will enter its labor category titles in Column B.

In Column C the Offeror will enter its proposed direct labor rate for the first year of the contract.

The Offeror‘s proposed escalation rates for direct labor are to be shown in the row titled

”Proposed Escalation Percentage %” in the columns for proposed direct labor rates for Years 2 through 10 (Cells in exhibit are highlighted in yellow). The following annual rates of escalation are recommended by NASA Headquarters, but are not mandatory. Offerors shall provide adequate supporting rationale for proposed escalation rates if different from the Government

Rates of Change.

Calendar Year Rate of Change

2017 3.0%

2018 3.2%

2019 3.0%

2020 3.0%

2021 3.0%

2022 2.9%

2023 2.9%

2024 2.8%

2025 2.8%

2026 2.8%

2027 2.8%

Escalated rates for Contract Years 2-10 shall be computed (in Columns D through L), using the

ROUND function in Excel.

A “Source” column (Column M) has been provided on the template for the Offeror to use to identify the supporting data for each labor category, which shall include the source of the wage/salary data (actual, salary survey, wage determination, collective bargaining agreement, etc.). In the “Staffing” column (Column N) Offeror’s must indicate whether they expect to fill positions for each labor category through hiring incumbent employees, new hires or persons currently employed by the Offeror. An example is included on the template for illustration purposes only. The example should be removed from the Offeror’s submission.

Major Subcontractors must provide all data required by this exhibit in the copy submitted in the sealed envelope. For the “sanitized” version provided to the Prime, Major

Subcontractors may limit the information provided to the NASA Standard Labor Category and the Offeror’s Category.

Exhibit 7, Summary of Key Personnel Direct Labor Rates (Required of Prime Offeror, Required of Major Subcontractor only if Key Personnel are proposed): This exhibit identifies all key personnel with their actual hourly labor rates shown as of a current identified payroll date. For any individual not currently employed by the Offeror, show the hourly labor rate at which the individual has agreed to be hired should the Offeror be selected for contract award.

Exhibit 8, Direct Labor Cost Summary – NACS Core Contract Management (Required of

Prime Offeror, Required of Major Subcontractor only if Contract Management Personnel are proposed): This exhibit shows the direct labor cost for the contract management and administration for each contract year with the labor rates from Exhibit 6 used to compute the cost.

It is the Offeror‘s responsibility to acquire an understanding of the complexities of the work required to successfully meet NACS requirements. The NACS Core Contract Management requirement is for the resources necessary for management and administration of the overall contract and includes direct charge personnel (such as Program/Site Manager, Deputy

Program/Site Manager, Business Manager, Clerical, etc.). Accordingly, the Offeror must propose the resources necessary to successfully meet these requirements.

The hours shown in the exhibit for each labor category should be productive labor hours (hours spent actually working). In the narrative portion of the Offeror’s Cost Proposal, identify the number of nonproductive hours per WYE per year. Nonproductive hours are paid hours for non-work time such as vacation, holidays, sick leave, and other personal leave. State the number of hours for each of these elements. Explain how the nonproductive hours will be accumulated and charged. State the policies for treating accumulated vacation and unused sick leave hours, as well as for their treatment at contract completion. Explain policies for overtime eligibility, the amount of overtime premium, and charging of premium. This includes the application of benefits (full or partial) to be applied to the overtime premium. Also explain, if applicable, treatment, rates, and cost for shift differentials.

Subcontractors may limit the information provided to the Labor Category and Hours.

Exhibit 9, Direct Labor Cost Summary – NACS ARC Core Technical Services (Required of

Prime Offeror and Major Subcontractors): This exhibit shows the direct labor cost for the

Core Technical Services for each contract year with the labor rates from Exhibit 6 used to compute the cost.

The Offeror shall compute costs for the labor categories and hours provided in the template. The hours and labor categories for Exhibit 9 must not be changed though they may be divided among Offeror and subcontractors. The total hours for each labor category in the Exhibit for the Offeror and the subcontractors, when combined must equal the totals shown in the

Exhibit 9 template provided with this solicitation.

number of nonproductive hours per WYE per year. Nonproductive hours are paid hours for non-work time such as vacation, holidays, sick leave, and other personal leave. State the number of hours for each of these elements. Explain how the nonproductive hours will be accumulated and charged. State the policies for treating accumulated vacation and unused sick leave hours, as well as for their treatment at contract completion. Explain policies for overtime eligibility, the amount of overtime premium, and charging of premium. This includes the application of

Exhibit 10, Direct Labor Cost Summary – NACS ARC IDIQ Task Orders (Required of

IDIQ Task Orders for each contract year with the labor rates from Exhibit 6 used to compute the hours and labor categories for Exhibit 10 must not be changed though they may be divided among Offeror and subcontractors. The total hours for each labor category in the Exhibit

Exhibit 10 template provided with this solicitation.

number of nonproductive hours per WYE per year. Nonproductive hours are paid hours for non-work time such as vacation, holidays, sick leave, and other personal leave. State the number of hours for each of these elements. Explain how the nonproductive hours will be accumulated and charged. State the policies for treating accumulated vacation and unused sick leave hours, as well as for their treatment at contract completion. Explain policies for overtime eligibility, the amount of overtime premium, and charging of premium. This includes the application of

Exhibit 11, Direct Labor Cost Summary – NACS GSFC IDIQ Task Orders (Required of

IDIQ Task Orders for each contract year with the labor rates from Exhibit 6 used to compute the hours and labor categories for Exhibit 11 must not be changed though they may be divided among Offeror and subcontractors. The total hours for each labor category in the Exhibit

Exhibit 11 template provided with this solicitation.

number of nonproductive hours per WYE per year. Nonproductive hours are paid hours for non-work time such as vacation, holidays, sick leave, and other personal leave. State the number of hours for each of these elements. Explain how the nonproductive hours will be accumulated and charged. State the policies for treating accumulated vacation and unused sick leave hours, as well as for their treatment at contract completion. Explain policies for overtime eligibility, the amount of overtime premium, and charging of premium. This includes the application of

Exhibit 12, Summary of Indirect Cost Rates (Required of Prime Offeror and Major

Subcontractors): This exhibit reflects the overhead and/or fringe benefits and G&A rates by contract year and Offeror's fiscal year. Other burden rates (e.g., material overhead, subcontracts admin.) must be shown separately (Offerors may add columns if necessary). This exhibit summarizes the Offeror's fiscal year data from Exhibits 13 and 14. Identify the Offeror's fiscal year in the spaces provided (e.g., 12/31/17), and show the Offeror's rates for its applicable accounting periods for the various contract years. Provide explanations for deviations of the contract rate from the fiscal year rates. The exhibit includes an example showing how the

Offeror’s fiscal year rates convert to weighted average Contract Year rates. The example should be removed when the Offeror submits its proposal.

in the sealed envelope, however, they are not required to provide any data in the

“sanitized” version provided to the Prime.

Exhibit 13, Overhead and/or Fringe Benefits (Required of Prime Offeror and Major

Subcontractors): This exhibit shall provide insight into the composition of the burden pool for the proposed indirect cost rates. A separate template for each of the proposed burden pools is to be completed. In addition, provide indirect cost history for the prior three years and forecasts for the term of the contract. The basis for forecast of indirect costs shall also be provided and an explanation in support of any significant changes in either expenses or base of application that exist from one year to the next.

A few cost elements are included on the templates that represent the type of cost detail into which the Government requires visibility. If these cost elements are not applicable to any proposed indirect cost pool, leave blank.

If the Offeror or a Major Subcontractor has a negotiated Forward Pricing Rate Agreement

(FPRA) in effect, it may submit a copy of the signed agreement with the Government entity in lieu of submitting Exhibit 13.

Exhibit 14, G&A Expense (Required of Prime Offeror and Major Subcontractors): This exhibit shall provide insight into the composition of the burden pool for the proposed General and Administrative (G&A) expense rate. Identify the estimated G&A expense and explain the method for its calculation. Provide G&A cost history including the actual expense pool and application base amounts for the prior three years. The basis for projections of G&A shall also be provided and an explanation in support of any significant changes in either expenses or base of application that exist from one year to the next. The forecast distribution base forecast for

G&A should be broken down into existing business, the NACS contract and other forecast business as shown in the exhibit.

A few cost elements are included on the templates that represent the type of cost detail into which the Government requires visibility. If these cost elements are not applicable to your proposed G&A cost pool, leave blank.

If the Offeror or a Major Subcontractor has a negotiated Forward Pricing Rate Agreement

(FPRA) in effect, it may submit a copy of the signed agreement with the Government entity in lieu of submitting Exhibit 14.

Exhibit 15, Minor Subcontracts (Required of Prime Offeror only): This exhibit is intended to provide the Government a concise assessment of the substance of minor subcontracts. Minor subcontracts are those subcontracts that have an estimated total value of less than $1,000,000.00 for the 10 year inclusive effort. Two examples showing how this exhibit is to be completed are included on this exhibit. Examples should be removed from the exhibit when the Offeror’s proposal is submitted.

Exhibit 16, Incumbency Assumptions (Required of Prime and Major Subcontractors): This exhibit is required of the Offeror proposed as prime and all proposed Major Subcontractors. This exhibit provides visibility into the Offeror’s intentions regarding the hiring of incumbent contractor employees.

The Offeror shall indicate in the space provided, the percentage of the incumbent workforce it expects to retain.

In the two sections of the exhibit, titled “Labor Rates” and “Length of Service”, the Offeror shall select only one option in each category.

In the area entitled, “Labor Rates,” the Offeror is asked whether, notwithstanding the rates it estimated and proposed, it intends to pay retained incumbents at their current salaries/wages.

The Offeror shall select only one of the two options: Yes or No. The Government understands that a non-incumbent Offeror may only be able to estimate the salary cost of current incumbents;

however, the Government must evaluate the Offeror’s intentions regarding pay for these employees if retained. If the Offeror selects “Yes” no further response is required. If the Offeror selects “No”, then it is required to explain what salaries/wages it intends to offer to incumbents and how this will allow it to achieve the Offeror’s intended/expected incumbent retention percentage.

In the area entitled, “Length of Service”, the Offeror is asked if it intends to recognize incumbent employees’ service time under predecessor contracts, in the performance of similar work, for purposes of fringe benefits computations (such as the amount of paid-time-off received). The

Offeror shall select only one of the two options: Yes or No. The Government understands that a non-incumbent Offeror may be able only to estimate the current incumbent employees’ length of service; however, the Government must evaluate the Offeror’s intentions recognition of length of service for these employees if retained. If the Offeror selects “Yes” no further response is required. If the Offeror selects “No”, then it is required to explain its policy regarding the length of service of incumbent employees as it relates to fringe benefits computations (such as the amount of paid-time-off received) and how this will allow the Offeror to achieve its intended/expected incumbent retention percentage.

Exhibit 17, Phase-In (Required of Prime Offeror and required of Major Subcontractors only if the subcontractor is participating in Phase-in): The Phase-in CLIN is Cost Plus

Award Fee. The Phase-In exhibit is designed to show the total cost plus profit for the phase-in period. This exhibit must be supported by a narrative basis of estimate (BOE). Include all skills and hours on this template and add rows if needed to account for all labor required. Use the

SLCs for skill mix, if appropriate, or include the Offeror‘s labor mix on the template with a brief job description in the narrative. The BOE should include a discussion of labor skill mix and significant non-labor resources (materials/supplies, equipment, other, etc.) necessary for accomplishment of Phase-In requirements. The Phase-In exhibit is to include ALL Phase-In costs necessary for full contract implementation.

For subcontractors participating in phase-in, details of the various elements of cost are to be shown in the exhibit provided by the subcontractor in the sealed envelope. In its

“sanitized” version, provided to the Prime Contractor, the subcontractor may limit the information in this exhibit to the Productive Labor Hours, Total Cost, Fee or Profit and

Total Cost and Fee/Profit if it chooses.

Exhibit 18, Schedule of Subcontracts (Required of Prime Offeror only): This exhibit summarizes the activity proposed to be subcontracted. The following information is required in the exhibit:

A brief description of work to be subcontracted;

Number of quotes solicited and received;

Subcontractor selected and basis for selection;

Type of proposed subcontract (i.e., firm-fixed price, cost-plus-fixed-fee, labor hour, etc.);

Total proposed cost and fee or profit for the total five-year period of performance;

Affiliation with the Prime Offeror; and

Cost or price analysis performed by the Offeror. Note: FAR 15.404-3(b) requires that contractors conduct appropriate cost or price analyses to establish the reasonableness of proposed subcontract prices and include the results of these analyses in the price proposal.

4. Accounting System

The Offeror must provide a brief description of its accounting system. Award of a cost-reimbursement type contract requires an accounting system capable of accurately collecting, segregating and recording costs by contract [FAR 16.301-3(a)(3)]. If your system has previously been reviewed and approved by the Government, provide the name and telephone number of the cognizant Government office.

5. Facilities Capital Cost of Money

The amount for Facilities Capital Cost of Money must be separately identified and computed in accordance with Cost Accounting Standards (CAS) 414. To claim this cost, the amount must be calculated using Forms CASB-CMF and DD 1861 (See Section J.1(b) Attachments 4 and 5).

NOTE: When Facilities Capital Cost of Money is included in the Offeror’s proposal it shall not be included in the cost base for calculating profit/fee.

6. Award Fee/Fixed Fee

The proposed award fee rate will apply to Phase-in, the NACS Core Contract Management, and the NACS ARC Core Technical Services. The proposed award fee and fixed fee rate will apply to NACS ARC IDIQ Task Orders and NACS GSFC IDIQ Task Orders (Task Orders may be Cost

Plus Award Fee or Cost Plus Fixed Fee, as determined for each Task Order). In addition, the proposed award fee and fixed fee will apply to any associated changes under the contract. The award fee and fixed fee will be established by application of the proposed award fee and fixed fee rate to the estimated, not the actual, cost of the task for the elements of cost to which the

Offeror proposes to apply the fee rate. (For example, the Offeror may propose to apply the fee rate to all elements of cost except ODCs, or may propose a different fee rate or structure for

ODCs.) Submit the proposed award fee and fixed fee rates to be used on the contract.

NOTE: The Offeror shall use the proposed award fee rate to complete the Cost Template

Workbook Exhibits, where applicable.

7. Proposal Prime/Subcontractor Information Summary

All Offerors shall submit a completed TABLE CP1 for the Prime Offeror, each team member and all Major Subcontractors having a contract value of $4 million or greater to provide information for use by NASA in the public contract award notification. Major Subcontractors valued at $4 million or greater are to submit a completed TABLE CP1 below for all of their subcontractors with a value of $4 million or greater.

It is important that all information be complete and accurate to include the identification of the 9 digit United States Postal Service (USPS) Zip Code for all prime and Subcontractors.

TABLE CP1: PROPOSAL PRIME/SUBCONTRACTOR INFORMATION SUMMARY

Offerors and Subcontractors are to fill-in the italicized areas in column 2 with the required information

Prime/Subcontractor Identify name of the prime Offeror or a Major Subcontractor

Title: The title of the effort you have contracted or the program name subcontracted

Description: A brief non-technical description of the work, including identification of the program and project.

Period of Performance: The length from start date to completion date of the contracted effort.

Type of Action: Follow-on

Contract Type: [if Prime:] Cost Plus Award Fee (CPAF) and Cost Plus Fixed Fee

(CPFF)

[if Subcontractor, select the appropriate type:]: Firm Fixed Price, Cost Plus Award Fee, or Cost Plus Fixed Fee

Company: The name of the Prime, Team Member or Subcontractor

Address: Full USPS street address to include suite or apartment numbers

Performance Location: City and State of the principal work performance location(s)

USPS 9 digit Zip Code Enter the 9 digit USPS Zip Code XXXXX-XXXX for performance location.

The 9-digit Zip code is a Mandatory Requirement.

Estimated Price with Options

$ amount rounded to the nearest $1,000

Subcontractors:

(>$4M)

List all Subcontractors and their business size status for each first tier subcontract worth $4 million or more for the total contract performance.

Small Business

Subcontracting Goals:

Small business and small disadvantaged business subcontracting goals both in dollars and percentage of the value of the action

(including all options if any)- If ‘none” fill out box as “N/A”

NNA17554082R SECTION M

Cost Factor (Volume III)

SECTION M

(e) Cost Factor (Volume III)

(1) The cost evaluation will be conducted in accordance with FAR 15.305(a)(1) and NFS

1815.305(a)(1)(B).

(2) Offerors should refer to FAR 2.101(b) for a definition of “cost realism” and to FAR 15.404-

1(d) for a discussion of “cost realism analysis” and “probable cost”. The terms “proposed and probable cost” are exclusive of fee. Any proposed fee is not adjusted in the probable cost assessment.

(3) The Government will determine the Probable Cost of each Offeror’s proposal by evaluating the realism of each Offeror’s proposed costs to ensure the Offeror understands the magnitude and complexity of the effort. This will include an evaluation of the extent to which proposed costs indicate a clear understanding of solicitation requirements, and reflect a sound approach to satisfying those requirements. This assessment will consider technical/management risks identified during the evaluation of the proposal and associated costs. Cost information supporting a cost judged to be unrealistic and the technical/management risk associated with the proposal will be quantified by the Government evaluators and included in the assessment for each Offeror. Offeror’s proposed award fee will be used in computing the Probable Cost Plus

Award Fee.

(4) The overall value for selection purposes will be the sum of the cost plus award fee proposed for the NACS Core Contract Management (CLINs 01A, 02A, 03A, 04A, 05A, 06A, 07A, 08A, 09A, 10A), the NACS ARC Core Technical Services (CLINs 01B, 02B, 03B, 04B, 05B, 06B, 07B, 08B, 09B, 10B), NACS ARC IDIQ Task Orders (CLINs 01C, 02C, 03C, 04C, 05C, 06C, 07C, 08C, 09C, 10C), and NACS GSFC IDIQ Task Orders (01D, 02D, 03D, 04D, 05D, 06D, 07D, 08D, 09D, 10D). Phase-In (CLIN 01) will not be included in the evaluated total cost plus award fee for selection purposes, but it will be evaluated for reasonableness and realism.

If the SEB determines that a proposal does not adequately demonstrate that the Offeror will be able to perform the work, including the appropriateness of the Offeror’s proposed resources, the

SEB may determine this to be a Mission Suitability weakness, adversely affecting the Offeror’s

Mission Suitability scores as well as require an adjustment for probable cost. A lack of resource realism (and, in the case of Phase-In costs, a lack of reasonableness) may generate a Mission

Suitability weakness and adversely affect the Offeror’s Mission Suitability score.

Evaluation of options shall not obligate the Government to exercise such options.