Attachment L-11 Cost Model Pricing Instructions.docx

Attachment L-11 Cost Model Pricing Instructions Instructions for Completing NSF Cost Model

NSF’s Work Breakdown Structure (WBS) to Functional Areas Identified in Section C

General Instructions - Purpose

Offerors shall use “Volume IV, Cost Price Proposal” to complete Amendment 007 NSF Cost Model for all years of the contract period per the following instructions. Generally, detail to WBS Level 5 is required for the first 5 ½ years of the contract (through 9/30/17 or the Base Period through Option Period 1 Year 1) and WBS Level 3 for the remainder of the contract period. The prime offeror shall complete two spreadsheet files: “Total Costs Prime Contractor” and “Cost Model Final Template.” Cost Model Final Template contains several intermediate spreadsheets or tabs. The prime offeror will require each subcontractor to either: a) include the subcontractor’s data in the prime contractor submission of Cost Model Final Template or b) in the case of proprietary data to provide a separate submission directly to NSF. Only the prime offeror will provide the “Total Costs Prime Contractor” file and subcontractor costs shall be classified as subcontracts and consultant costs in this presentation. NSF requires the prime offeror to ensure that all required files are completed by their subcontractors.

SPREADSHEET 1 - Total Costs Prime Contractor

The “Total Costs Prime Contractor” file is an overall summary of the prime contractor’s offer at the WBS Level 5 for the first 5 ½ years of the contract (through 9/30/17 or the Base Period through Option Period 1 Year 1) and WBS Level 3 for the remainder of the contract period. It includes the following data fields.

Column J – Staffing by Hours Column K – Normalized FTE Count (FTE based on 1880 hours) Column L – Direct Labor Costs Column M – Premium Pay Column N – Fringe Benefits Column O – Total Labor Costs Column P – Overhead Costs Column Q – Equipment & Accountable Property Column R – Materials & Supplies Column S – Consultants & Subcontractors In this spreadsheet, all subcontractor and consultant costs should be categorized as subcontractor and consultant costs and not be broken out into the major cost categories. Note; this is different from the treatment of subcontractor and consultant costs in the Summary of Total Costs IOSS spreadsheet discussed below.

Column T – Other Direct Costs Column U – General & Administrative (G&A) or Indirect Costs Column V – Other Costs This column is provided to present any other allocated costs, offeror proposed investments, or any other expense that is not included in the above major cost categories.

Column W – Total Costs The Total Cost column is a sum of rows across Columns M through T. The sum of all the rows inclusive of Columns M through T will provide the final total cost for the Integrated Operations and Science Support (IOSS) CLIN.

Column Y – Integrated Operations and Science Support CLIN costs (from W)

AA – Research Vessel Charter Costs CLIN (provided by NSF)

AB – Facilities Christchurch CLIN (provided by NSF)

AC – Major Construction and Special Projects

AD – Total Costs

AE – Award Fee

AF – Total Costs Plus Award Fee

SPREADSHEET 2 – COST MODEL FINAL TEMPLATE

The Cost Model entitled “COST MODEL FINAL TEMPLATE” has two key sections:

1) “SUMMARY TOTAL COSTS” which is a rollup (mapping) from all worksheets that succeed it; and,

2) Worksheets that provide detail data for the rollup to the Summary Total Costs.

There are 4 subsidiary worksheets, or tabs, in the second file. They are:

1) TOTAL LABOR STAFFING - The most detailed of all the worksheets providing information on individual Employee identifications; recurring and nonrecurring labor costs shall be separately identified, salary rates, hours worked, basis for salary rates, fringe benefits, premium pay, total salary costs, etc.; Detail is provided for each individual and position at WBS Level 5 for the first 5 ½ years of the contract (through 9/30/17 or the Base Period through Option Period 1 Year 1).

2) NONLABOR EQUIPMENT & ACCOUNTABLE PROPERTY, MATERIAL AND SUPPLIES, AND OTHER DIRECT COSTS AND SUBCONTRACTS AND CONSULTANTS - Costs for the Prime Offeror and Non-proprietary subcontracts for Equipment & Accountable Property, Materials and Supplies, and Other Direct Costs, and Subcontracts and Consultants. Detail is to be provided for each WBS at Level 5 and whether the costs are recurring or non-recurring for the first 5 ½ years of the contract (through 9/30/17 or the Base Period through Option Period 1 Year 1).

3) BURDENS - Offerors and non-proprietary subcontractors will provide fringe benefits, Overhead, G&A costs for each WBS Level 5 for the first 5 ½ years of the contract (through 9/30/17 or the Base Period through Option Period 1 Year 1). In addition, an Other Allocated Cost element has been included. If offerors utilize a different set of approved disclosed accounting system burden rates such as Materials Handing, Subcontract Rate, FCCOM, or any other type of % rate or cost allocation, then the costs should be combined in aggregate in amount in the Any Other Allocated Costs category. If additional spreadsheets are required to show the calculation of the various burdens or rates they may also be provided in a format based on the offerors accounting practices.

4) SUBCONTRACTOR FIRM-FIXED-PRICE (FFP) COSTS - The final spreadsheet tab is for a breakout of cost and pricing information, data other than certified cost or pricing data, as well as for breakouts of firm-fixed-price (FFP) or other subcontractor proposed contract types for the first 5 ½ years of the contract (through 9/30/17 or the Base Period through Option Period 1 Year 1). This may be used where information is not available or pricing is not determined in the standard format (e.g., fixed price commercial items).

This tab is designed to allow the offeror to provide information other than cost or pricing data for fixed price or time & materials offers to the greatest extent possible based on the offeror’s or subcontractor’s cost accounting system. For example, if the offeror’s cost accounting system allows for the offeror or subcontractor to provide full cost data (including direct labor costs, fringe benefits, overhead, G&A, etc.), NSF expects the offeror to provide those costs for cost and price reasonableness determination.

GENERAL INSTRUCTIONS

It is critical that all the prime and subcontractor files provided to NSF for cost & price analysis use the same format, even if the data provided by the prime and subcontractors require different conditions for presentation. For example, if additional spreadsheets are required to calculate the application of fringe benefits or premium pay they may be provided outside the cost model and included in the overall cost price volume submission.

Specific Instructions - Worksheets

In completing the worksheets offerors shall apply the following guidance:

Allocation – Offerors are required present their pricing using the WBS set forth in these worksheets. Offerors may maintain their own Organizational Breakdown Structure OBS.

If it is necessary to prorate or allocate the costs of one of the offeror’s OBS elements to NSF Amendment 07 worksheets, this may be accomplished in a manner that accurately reflects the resources the offeror proposes for a specific Employee ID number to accomplish the work under multiple NSF WBS numbers.

NSF will separately identify Project and Innovations from your initial technical proposal that we want to see specifically addressed. The Projects and Innovations are identified under separate cover.

Treatment of Prime and Subcontractor (Proprietary and Nonproprietary) Costs – For proposed subcontractors that were required to submit cost/price data to NSF please refer to RFP Section L.11.2.2. (Subcontractor Information Submittal Requirements)

If the WBS element is to be performed by a nonproprietary subcontractor that provides their cost pricing information through the prime contractor then the prime contractor should categorize these costs in the appropriate major cost categories under the Summary Total Costs and the four subsidiary spreadsheet tabs. In this case, the Prime Contractor shall refrain from also including these costs under the Subcontractor and Consultants sections of the Cost Model Final Template” file. This will avoid double counting.

Each proprietary subcontractor should complete the “Cost Model Final Template” in accordance with the same instructions as those provided to the prime contractor detailing the subcontractor’s costs including any lower tier subcontractors. If subcontractor proprietary information is involved, the subcontractor shall provide this information separately directly to NSF. However, the prime contractor is responsible for ensuring that the total cost amounts agree between all submittals.

The following instructions and descriptions of the worksheets are the same for the prime contractor or for proprietary submissions from a subcontractor which will also require major subcontractors of the prime subcontractor to disclose information in the same format as the prime subcontractor (e.g., the prime contractor or the next tier subcontractor must request lower tier major subcontractors to submit completed worksheets and roll ups).

SPREADSHEET 2 – “COST MODEL FINAL TEMPLATE” FILE INSTRUCTIONS

The five worksheets or tabs within the “Cost Model Template” file are designed for data input by Labor, Non-labor costs, and Burden Costs as well as a tab entitled – Transition In, FP and T&M requiring a breakout of Information Other Than Certified Cost or Pricing Data for fixed price and/or time & material offers as mentioned above. The following section provides instructions for the tabs identified below.

TAB 1- Summary Total Costs IOSS

Summary Total Costs Integrated Operations and Science Support – This tab is a roll up of costs at WBS Levels two and three for the entire contract period. This shall be completed for the entire period of performance for the Integrated Operations and Science Support CLIN # XXXX.01. It includes the following data fields:

Summary – Total WBS Levels 2 and 3 by Year and Major Categories Column H – Staffing by Hours Column I – Normalized FTE Count (staffing by FTE based on 1880 hours) Column J – Direct Labor Costs Column K– Premium Pay Column L – Fringe Benefits Column M – Total Labor Costs Column N – Overhead Costs Column O – Equipment & Accountable Property Column P – Materials & Supplies Column Q – Consultants & Subcontractors Offerors should only categorize as subcontractors those subcontractor costs which have not been broken out into the major cost categories either with the prime offeror submission or in separate proprietary submissions to NSF.

Column R – Other Direct Costs Column S – General & Administrative (G&A) or Indirect Costs Column T – Other Costs This column is provided to present any other allocated costs, offeror proposed investments, or any other expense that is not included in the above major cost categories.

Column U – Total Costs The Total Cost column is a sum of rows across Columns M through T. The sum of all the rows inclusive of Columns M through T will provide the final total cost for the Integrated Operations and Science Support CLIN.

TAB 2 - Labor Costs

Total Labor Staffing Tab. Data shall be provided at WBS Level 5 detail for the first 5 ½ years of the contract (through 9/30/17 or the Base Period and Option Period 1 Year 1). Labor costs will be summarized at WBS Level 3 for the remainder of the contract period under Tab 1.

Data Entry Column A – Reserved.

Employee ID Number Description (Column B) The offeror shall enter a unique Employee ID number # for each existing or future employee. The same Employee ID number may be listed for as many WBS’s at Level 5 as there are allocations for that particular employee. In addition, the same Employee ID number shall be used if that employee is working on recurring (O&M) and non-recurring (Projects and Innovations).

The offeror determines how many rows are required to adequately estimate the number of Employee IDs, the proper allocations for each Employee ID by WBS as well as whether the Employee ID requires a separate line for recurring and nonrecurring activities (e.g., nonrecurring activities result from projects or innovations). Definitions for recurring and nonrecurring labor are discussed later.

Offeror PWS # Provides an option for the offeror to insert their performance work statement number that coincides with the NSF WBS, if applicable.

NSF WBS Number (Column D - F) The offeror shall select the NSF WBS number for WBS Levels 2, 3 and 5 (Columns D through F) that corresponds to the work performed by the employee identified by a specific Employee ID number (Column B) and Employee ID description (Column K). As mentioned above, a specific Employee ID number and Employee ID description may correspond to multiple NSF WBS numbers where the employee’s work is allocated to more than one activity (e.g., WBS), recurring and nonrecurring work (projects and innovations) or performs different functions.

Location (Column H) The offeror shall enter the location where the Employee ID number/Employee ID description work will occur. Specifically, offerors shall use the following designations:

HQ – Headquarters operation in CONUS PORT – Departure point in United States for Cargo MCM – McMurdo Station SP - South Pole Station PAL – Palmer Station CC - Christchurch New Zealand SA – Punta Arenas or other South American Location FC - Field Camp or Remote On-Ice deployment OTH – Other location not listed above

If there is more than one location by Employee ID number/Employee ID description, then the offeror shall include the primary location where the majority of that employees work is to be performed. .

Offeror Specific Labor Code (Column I) The offeror may include the offeror’s internal labor category or code for audit purposes, etc. based on the offeror’s unique company structure.

Employee Status Code (Column J) The offeror shall note if the employee is:

SCA - subject to the 2010 SCA location code, EXP - Exempt Status or, ICE - Contract Employee outside CONUS

Note: A separate spreadsheet attachment L-13 is required to be completed including each SCA applicable employee.

Offeror Employee ID Description (Column K) An Employee ID Description is defined as a short reference describing the work the employee will perform. (Note: An Employee ID Description does not necessarily correlate to one Full-Time Equivalent, or FTE.) In addition, one Employee ID number may correspond to more than one Employee ID description where that employee is performing very different work – example Plumber during the day and Bartender at night.

BLS Employee Title and 2010 BLS Code (Column L & M) The offeror shall provide the Employee Title and 2010 BLS Code that most closely corresponds to the offeror’s Employee ID description.

2010 BLS Hourly Rate – Full-Time Private Industry Workers (Column N) The offeror shall provide the 2010 hourly rate that most closely corresponds to that BLS job title. In the case that a range of rates or multiple rates are provided for one BLS job title the Offeror may select the rate most closely corresponds to the Offerors categorization of that position.

Organizational Breakdown Structure (OBS) Code or Department (Column O) The offeror shall provide the hierarchy that corresponds to that employee’s work level or position within the offeror’s Organizational Breakout Structure (OBS) chart.

Company who is the Performing Entity (Column P) The offeror shall provide the name or an abbreviation of the prime contractor or subcontractor (e.g., nonproprietary in the case of the prime contractor’s completion of its worksheets) that will perform the work. Description codes may be explained in the Basis of Estimate or as a footnote to this schedule.

Fringe Benefit % (Column Q) The offeror may provide the fringe benefit rate (e.g., 25%, 30%, etc.) for each Employee ID when the same fringe benefit rate will be used for the entire contract period. Otherwise, the offeror may use different annual rates in columns BT through BY. Alternatively, offerors may choose to include a dollar amount for each employee. If a method other than a fringe benefit rate(s) is/are used additional calculations may be provided on a separate spreadsheet as another attachment.

Employee Status (Column R) The offeror shall note whether or not the employee is:

FT - Full-Time, PT - Part-Time, CON - Contract or Casual (seasonal hires), or OTH - Other

Recurring or Non-Recurring (Column S) For each row on each WBS Level 5 activity, the offeror shall note whether the cost is recurring or nonrecurring.

R – Recurring Cost NR – Non-recurring Cost

Note: Any nonrecurring cost requires a project code as identified by NSF in the Contracting Officer’s Amendment 007 cover letter.

Outline —Nonrecurring, Recurring and Total Costs The purpose of this information is to provide an understanding of the offeror’s estimate of non-recurring costs to enable NSF to evaluate the overall cost realism and/or cost reasonableness of the offerors unique technical approach. Non-Recurring costs may relate to projected savings of other contract costs over the contract period. Recurring costs refer to steady state of support and Operations and Maintenance costs. Total Costs are the sum of recurring and non-recurring costs.

Definitions

Recurring Costs Regular cost incurred repeatedly (typically operations & maintenance costs) for each item produced or each service performed. These costs also include operational charges that must be expensed but may occur on an irregular basis (e.g., fire department services, research vessel services, maintenance services, Accounting/Finance functions, dining hall services, recreational services, maintenance painting, etc.).

Nonrecurring Costs Unusual charges or expenses that may occur for a specified period of time but then are unlikely to occur again in the normal course of a business cycle (Business cycle in this case referring to the contract period). Examples of nonrecurring costs include projects or innovations (e.g., design and development of software systems, business system improvements, implementing initial supply chain improvements building an additional warehouse etc.)

PROJECT PROPOSAL FORMS

The offeror shall also complete a Project Proposal Form, Attachment L-15, for each project or innovation in the technical proposal.

Project Code (Column T) For each nonrecurring cost, the offeror shall insert the project code, as identified on the Contracting Officer’s Amendment 007 cover letter. The offeror shall reference a project, innovation, or set-up code for all nonrecurring work to be performed in the technical proposal and reference the same code in the cost proposal.

Season (Column U) The offeror shall provide an indication of whether or not seasonal workers are:

S - Astral Summer W - Astral Winter SW - Both

FTE Base (Column V) The offeror shall provide an FTE Basis based on the Proposed Annual Hours (Column V) divided by 1,880 hours.

Productive Weeks (Column W) The offeror shall provide the number of Direct Labor Weeks that exclude non-productive activities that the employee will work.

Annual Hours (Column X) The offeror shall provide the estimated number annual hours by employee row.

Offeror's Number of Hours as a Basis for Weekly Pay (Column Y) The offeror shall designate the number of hours that will be the basis for the weekly pay rate.

Number of Hours the Employee is Expected to Work (Column Z) The offeror shall provide the number of hours the employee is expected to work regardless of pay if there is a difference between the hours an employee is expected to work and the number of hours for which they are compensated at an hourly rate.

Offeror's Proposed Weekly Baseline Direct Labor Cost (Column AA) The offeror shall provide the weekly baseline direct labor costs number by multiplying the Offeror's Number of Hours as a Basis for Weekly Pay (Column Y) by the Offeror’s Proposed Hourly Labor Rate (Column AB).

Offeror’s Proposed Hourly Labor Rates (Column AB) The offeror shall provide hourly labor rates.

Basis for Hourly Rate Code (Column AC) The offeror shall provide a code for its basis for the hourly rate for each Employee ID #. The codes are as follows:

Ex – Existing Employee rate FPR – Direct Labor Forward Pricing Rate Agreement Bureau of Labor Statistics (BLS) data (Note: The offeror may devise a rate based on BLS that takes into account geographical regional escalation factors, etc. However, the offer shall discuss in its Basis of Estimate the reasons for any data or rate manipulation.)

MKT – Market (Note: Market rates shall be documented to provide NSF with facts to support cost reasonableness or realism.)

BLS – WA – Any individual rate that the offeror developed as a Weighted Average shall show a “WA” after the category (in this case based on two or more BLS labor rates.)

The offeror may offer additional codes as required for purposes of determining cost reasonableness. These codes may be explained in the Basis of Estimate or as a footnote to this spreadsheet.

Reserved (Column AD) The offeror may provide explanations for allocations, nonrecurring costs, etc.

Baseline 2010 Direct Labor Costs (Column AE) This is the baseline for annual direct labor costs based on 2010 rates. It should be used to escalate rates to 2012 in Column AG and following.

Baseline for Escalation (Column AF) This column provides a column for 2010 annual labor rates increased to 2012 annual labor cost estimates. As an example, if AF9 ($101,426) were escalated by 2.2% over a period of two years, the calculation would be =af9*1.022^2, or $105,938.

Escalation Factor & Escalated Annual Salaries (Columns AG to AL) The offeror shall escalate out-year costs using a multiplier (factor) based on a rate or rates as provided in its Basis of Estimate. The Basis of Estimate shall outline the criteria used to develop the escalation rate(s).

Estimated Labor Hours (Columns AN through AT) The offeror shall provide the annual number of labor that provides the basis for the compensation.

Estimated Labor Costs (AU to BB) The offeror shall multiple the hourly rate times the number of hours.

Premium Pay (Columns BC to BJ) The premium pay amount includes all bonuses, including uplift bonuses. The offeror may provide an additional worksheet to demonstrate how the offeror arrived at each percentage or amount.

Labor Costs + Premium Costs (Columns BK to BR) The offeror shall add the estimated labor costs and premium pay costs.

Fringe Benefits (Columns BS to BZ) The Fringe Benefit cost amount shall then be included. An additional spreadsheet may be provided if necessary to calculate fringe benefits.

Salary + Premium Pay + Fringe Benefits (Columns CA to CH) The total cost of the Salary + Premium + Fringe Benefits.

TAB 3 - Nonlabor Costs

Equipment, Materials & Supplies, and Other Direct Costs (ODCs) and Subcontracts and Consultants. The offeror shall provide amounts for Equipment, Materials & Supplies, and Other Direct Costs, and Subcontracts and Consultants categories for each WBS Level 5 activity for each year of the 5 ½ years period (through September 30, 2017 or the Base Period through Option Period 1 Year 1). Offerors shall also designate if the costs are recurring or non-recurring. For non-recurring costs a project code should be provided. Offerors should also designate the company Prime or specific subcontractor responsible for these costs. Additional rows may be inserted as needed.

TAB 4 – Burdens

Fringe Benefits Overhead, G&A and Other Allocated Costs. The offeror shall provide amounts for Equipment, Materials & Supplies, and Other Direct Costs, and Subcontracts and Consultants categories for each WBS Level 5 activity for each year of the 5 ½ year period (through September 30, 2017 or the Base Period through Option Period 1 Year 1). Offerors shall also designate if the costs recurring or non-recurring. For non-recurring costs a project code should be provided. Offerors should also designate the company Prime or specific subcontractor responsible for these costs. Additional rows may be inserted as needed.

TAB 5 – Subcontractor Firm-Fixed-Price (FFP) Costs

Subcontractor Firm-Fixed-Price (FFP) Costs. This tab requires the offeror to provide subcontractor “Data Other Than Certified Cost or Pricing Data” where the subcontractor’s cost accounting system accumulates this information in this format.