SOL-CI-15-00011_Attch_6_CPI.pdf

Attachment 6

Cost Proposal Instructions

COST PROPOSAL INSTRUCTIONS

The following paragraphs supplement the instructions set forth in the provision entitled "Instructions for Proposals". These instructions apply to the prime contractor, as well as subcontractors and consultants. It is the prime contractor's responsibility to ensure that all instructions are disseminated to subcontractors and consultants.

In the cost proposal, offerors shall demonstrate that the labor rates for the individuals identified in the technical proposal are included in the labor rate calculations in the cost proposal. Those individuals included in the technical proposal must be included in the cost proposal in a magnitude consistent with the significance of their role in the technical proposal. For example, an individual included in the technical proposal with significant expertise and credentials, who is being included to respond to technical criteria and earn a favorable technical review, should also proportionately be included in the cost proposal at a level of effort reflecting the potential anticipated usage of that individual, so that a crosswalk of expertise and cost is evident. The individual should not, logically, be included in the cost proposal for a very minimal level of effort (i.e., 5 hours) when the proposed individual has been a significant part of the technical expertise evaluation. If individuals in the technical proposal are included in an average labor cost center/pool, offerors shall demonstrate how those individuals are included in the respective cost center/pool for which they are proposed.

Offerors shall submit one (1) printed hard copy cost proposal, two (2)

CD submissions of the Cost Proposal, and one (1) electronic submission at the FedConnect® website.

The FedConnect volume shall be an exact copy of the hard copy submission. The electronic media versions provided shall be searchable.

The CD-ROMs are provided for evaluation convenience only. The Cost

Proposal FedConnect submission and on CD-ROM shall be provided in MS

Excel. These copies shall include formulas used to arrive at the proposed amounts for the contract. The hard copy and FedConnect materials constitutes the official offer and proposal. In the event of a conflict between the hard copy and FedConnect materials, the written hard copy material takes precedence over the FedConnect files.

(a) Offerors shall submit a total of 6 summary pages in their chosen format, each showing the total cost and fee proposed for each block of hours below. The offeror’s summary sheets shall be supplemented as necessary to provide thoroughness and clarity in the data presented.

1. Base Year, Level of Effort (LOE)

2. Year 2, LOE

3. Year 3, LOE

4. Year 4, LOE

5. Year 5, LOE

6. Aggregate, All Years, All LOE

(b) The cost breakdown supporting the above documents for the prime contractor and all subcontractors shall be prepared in the following format:

BASE LOE Total

Base OPT

OPT

OPT

OPT

Total Direct Labor

Fringe Benefits

Overhead

ODC

Consultants

Subcontract

X

Y

Z

Total Subcontract

Subtotal

G&A

Total Cost

Base Fee

Total Cost Plus Fee

(c) All pages in the cost proposal should be numbered. An index with appropriate page references should be included. A complete narrative explanation regarding the basis of each cost element should also be included. Totals should be rounded to the nearest dollar.

(d) The direct labor hours to be used to develop the cost proposal are detailed in Subparagraph (i) below. In addition to the direct hours for professional and technical personnel, an estimate is shown for clerical hours. If it is your disclosed practice to charge such effort as a direct cost, your proposal must include the appropriate costs for the estimated clerical hours. If clerical effort is recovered through an indirect cost pool, your proposal need not reflect the estimated clerical hours as a direct cost but should clearly indicate that such effort is recovered as an indirect cost. It is noted that no estimate has been included for company management or other support. If it is your disclosed practice to include company management or other support as a direct cost, then your proposal must include an estimate of the hours and associated costs that you believe will be necessary to support the specified level of effort. A narrative explanation of the basis of this estimate must also be included. If company management or other support is recovered through an indirect cost pool, no direct cost estimate is required. Your proposal must clearly indicate whether your disclosed practice is to recover company management and other support effort as a direct or indirect cost.

(e) The direct labor hours in Subparagraph (i) are the estimated workable hours required by the Government. These hours do not include release time such as holiday, vacation, and sick leave. The portion of release time allocable to the proposed direct labor hours shall be computed and shown separately from the direct labor rate. If these costs are normally included in a fringe benefit or other indirect cost rate, separate identification is not required. However, if release time or other labor-related costs are factored into your direct labor rates, these costs must be separately identified in your proposal.

Your proposal should clearly indicate your disclosed practice regarding recovery of release time or paid absence.

(f) For each contract period, the offeror shall propose the amount specified in Subparagraph (i) for Other Direct Cost (ODC). The specified amount may be allocated between the prime contractor and subcontractors if applicable.

(g) When subcontract effort is included in the cost proposal, the prime contractor shall submit charts for each period (base level of effort and optional level of effort as separate charts) and for the aggregate (all periods, all hours) which clearly indicate the exact allocation of the specified level of effort among the prime contractor and the proposed subcontractors. Specified labor categories as well as job titles within the labor categories should be identified. THIS

CHART SHOULD BE INCLUDED IN BOTH THE TECHNICAL PROPOSAL AND THE COST

PROPOSAL. HOWEVER, ONLY IN THE COST PROPOSAL SHOULD THE CHART ALSO

REFLECT THE ALLOCATION OF THE SPECIFIED ODC.

(h) Offerors shall prepare proposals utilizing the labor categories, level of effort, and ODC specified in the chart below. The level of effort is estimated to approximate the mix that will be required and is used primarily to provide a sound basis on which to compare competing cost proposals. The actual mix of hours incurred in performance of any resulting contract may vary greatly due to unknown factors that make the use of a level-of-effort contract necessary. Documents shall be submitted showing this data, one for each column in the chart below.

The cost must be broken down by discipline only if there are different labor rates for disciplines within a professional level. The disciplines identified under the professional categories are provided to reflect the professional titles commonly associated with the work to be performed under this contract. Those submitting proposals are encouraged to submit a professional staff which demonstrate the appropriate technical expertise and competence involved in these disciplines. The official titles of the proposed staff need not correlate with this list, which is provided merely to demonstrate the levels of expertise being sought. If the cost is not broken down by discipline, the proposal shall include a statement that rates are the same for all disciplines within a professional level.

The amounts shown for ODC do not include any indirect cost or fee. If it is your disclosed practice to apply an indirect rate to any of the categories of cost listed below, that indirect cost would be over and above the specified amounts. Your proposal should identify the applicable indirect cost as a separate line item.

The prime contractor and all subcontractors must include a statement that it is their normal accounting practice to charge the cost items specified below as direct costs. If any of the items are normally indirect costs, the proposal shall indicate the items and the allocated

ODC amount shall be reduce accordingly.

(i) The format of the following information is provided as a guideline in preparing the charts.

Note:

If it is your practice to propose uncompensated overtime, please indicate this information in your cost proposal. In accordance with Far

Part 37.115-2(a), use of uncompensated overtime is not encouraged.

If the indirect cost rates included in your proposal and/or your subcontractors’ proposals are lower than the current, approved forward-pricing rates or current, approved provisional billing rates, it shall be assumed that these are ceiling rates, and they shall be incorporated into any resultant contract as such if the award is made upon initial proposals. If there is any objection to this, an explanation to the approach taken must be included in the narrative section in your proposal.

If a proposed subcontractor does not have an approved accounting system

(one that is considered adequate for use on Government cost-type contracts), consent for a cost type (CPFF, etc.) subcontract will not be granted. Under this situation, a fixed-rate type subcontract would be more appropriate, and, for proposal purposes, the ODCs should remain with the prime contractor. During performance the ODCs must be managed by the prime contractor but may be allocated to the subcontractor on an as-needed basis. Please keep this in mind when negotiating the contract type with your subcontractors.

NOTE: PLEASE REFER TO THE ATTACHMENT ENTITLED “LABOR

CLASSIFICATION STANDARDS.”

LEVEL OF EFFORT DISTRIBUTION TABLE

Direct Labor

Year 1

Year 2

Year 3

Year 4

Year 5

Total

Category

Hours

Project Leader

P4

4,500

4,800

22,800

Contract Manager

5,200

26,000

Chief Engineer

4,700

22,700

Senior Scientist

22,500

Project Engineer

P3

8,900

44,500

Group Leader

8,600

43,000

Scientist

8,500

42,600

QA Officer P3 5,000 5,000 5,000 5,000 5,200 25,200

Engineer Analyst

P2

42,600

Scientist

8,000

40,000

QA Officer

7,300

7,600

36,800

Junior Associate

P1

19,000

95,000

Senior Technician

T3

22,500

Technician

T2

3,800

Junior Technician/Trainee

T1

1,200

6,000

Clerical

5,000

25,000

TOTAL DIRECT NON

CLERICAL LABOR

HOURS PER YEAR

102,000

103,200

511,200

OTHER DIRECT COSTS

Year 1

Year 2

Year 3

Year 4

Year 5

Total

TRAVEL

$250,000

$1,250,000

OTHER DIRECT COSTS

$750,000

$760,000

$770,000

$780,000

$790,000

$3,850,000

Offerors shall submit one original copy by means of electronic submission through FedConnect®, in accordance with

EPA-L-36-101(a)(3).