Budget_Narrative_Template.docx

Budget Narrative

RFP: SOL-674-16-000007 Events and Logistics Coordination Services

Prime Contractor: [Name]

Summary or Introduction

[This section is optional, and can provide an overview of the cost proposal.]

General Assumptions

[In this section, state what assumptions were utilized in composing the budget estimate; examples include an annual inflation rate, annual salary escalation rate, information in the organization’s recovery or accounting of specific cost items, foreign currency exchange rate, etc., as applicable. All costs budgeted must be directly allocable to this contract.]

Salaries and Wages

[In this section, discuss proposed staffing, how salaries were determined, how those salaries will be escalated, is applicable. If staff is grouped into subcategories, then explain those. Discuss any relevant organizational policies that affect the budgeting, accounting and tracking of salaries. This category should also include consultants hired under the contract, unless the organization has a policy that would indicate otherwise. Include all relevant information related to how recruitment, retention, management, and establishment of rates, as it affects the budget estimate for salaries and wages.]

Fringe Benefits

[In this section explain the basis for estimating proposed fringe benefit costs and for which positions they are budgeted. Indicate whether proposed costs are the result of local law, company policy or prevailing practice. Specify the basis for estimating the amount.]

Allowances

[In this section explain the basis for proposed allowances, for which positions they are budgeted, and specify the estimating methodology. Per diem may be included here or under the travel and transportation line, in accordance with the organization’s accounting practices.]

Travel and Transportation

[In this section explain the basis for proposed travel and transportation costs, for which positions they are budgeted, and specify the estimating methodology. Travel and transportation can include international and in-country travel, as well as local transportation costs. The purpose, destination and number of trips should be indicated, as well as the source of cost estimates.]

Equipment

[In this section, explain the basis for any items of equipment proposed for procurement. Explain the necessity of the items, and specify the estimating methodology for proposed costs. Pursuant to the U.S. Federal Acquisition Regulation, “Equipment” means a tangible item that is functionally complete for its intended purpose, durable, nonexpendable, and needed for the performance of a contract. Equipment is not intended for sale, and does not ordinarily lose its identity or become a component part of another article when put into use. Equipment does not include material, real property, special test equipment or special tooling.]

Materials and Supplies

[In this section, explain the basis for any proposed supplies and other items proposed for procurement. Explain the necessity of the items, and specify the estimating methodology for proposed costs. Pursuant to the U.S. Federal Acquisition Regulation, “Material” means property that may be consumed or expended during the performance of a contract, component parts of a higher assembly, or items that lose their individual identity through incorporation into an end item. Material does not include equipment, special tooling, special test equipment or real property.

Other Direct Costs (ODCs)

[In this section, include any other proposed direct cost items that do not fall under the direct cost categories that are described herein, i.e. Salaries and Wage, Fringe Benefits, Allowances, Travel and Transportation, Equipment, Materials and Supplies, Subcontracts. Explain the necessity of the items, and specify the estimating methodology for proposed costs.]

Subcontracts

[In this section, list separately each proposed subcontractor. For each, indicate the proposed subcontract type, state the proposed amount of the subcontract and its purpose in supporting contract implementation. Specifically and separately address each of the same elements discussed herein, as applicable, for each proposed subcontractor, i.e. General Assumptions, Salaries and Wages, Fringe Benefits, Allowances, Travel and Transportation, Equipment, Materials and Supplies, ODCs, Subcontracts, Indirect Costs, proposed Fixed Fee, as applicable. In order for consent to subcontract to be given at the time of the award, the Offeror must address each of the elements in FAR 44.202-2 in Part 5 of its cost proposal. In the absence of such, consent will not be provided at the time of award, but a request for consent to subcontract may be considered by the Contracting Officer after the award is made.]

Indirect Costs

[In this section, state whether the organization holds a current negotiated indirect cost rate or whether an indirect cost rate proposal is included with the submission. The Offeror must fully explain the categories of indirect costs proposed and how the indirect cost rate(s) are applied.]

Proposed Fixed Fee (If any)

[If an Offeror is proposing an amount of fee, then it should fully explain the basis of its fee estimated, elaborating on the factors that were taken into consideration in estimating the fee amount.]

Cancellation Ceilings

[This is a multi-year contract and Offerors may elect to propose cancellation dates and ceilings for this contract. If a cancellation ceiling is proposed, then the Offeror must provide the rationale explaining the basis for its proposal and indicate what items of unrecovered costs are anticipated in the event that a cancellation charge is envisioned. Pursuant to the U.S. Federal Acquisition Regulation, “Cancellation ceiling” means the maximum cancellation charge that the contractor can receive in the event of cancellation. “Cancellation charge” means the amount of unrecovered costs which would have been recouped through amortization over the full term of the contract, including the term canceled. The final dates and amounts will be negotiated with the apparent successful Offeror and will be included in Section B of the contract and will be subject to FAR 52.217-2. If an Offeror does not anticipate a cancellation charge under this contract, it should state that it does not envision a cancellation charge and its proposed cancellation ceiling is $0.]

(Not to Exceed) Cancellation Date: