Attachment_7_Cost_Proposal_Instructions.docx

SOL-CI-15-00017 Cost Proposal Instructions Attachment 7

Attachment 7

Cost Proposal Instructions

Cost Proposal Instructions

The following paragraphs supplement the instructions set forth in the Section L provision EPA-L-36-101 ‘Proposal Instructions.’

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 printed hard copy cost proposal in accordance with EPA-L-36-101(a)(4) and one electronic submission at the FedConnect web portal in accordance with EPA-L-36-101(a)(3).

The hard copy volume shall be an exact copy of the FedConnect submission. The electronic media copy shall be searchable. Electronic versions shall include the formulas used to arrive at the proposed amounts for the contract. In the event of a conflict between the hard copy and the FedConnect electronic version, the FedConnect electronic version shall take precedence over the hard copy materials.

(a) Offerors shall submit a total of 11 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 Period, Base Level of Effort (LOE)

2. Base Period, Optional LOE

3. Option Period 1, Base LOE

4. Option Period 1, Optional LOE

5. Option Period 2, Base LOE

6. Option Period 2, Optional LOE

7. Option Period 3, Base LOE

8. Option Period 3, Optional LOE

9. Option Period 4, Base LOE

10. Option Period 4, Optional LOE

11. Aggregate, All Years, All Periods, All LOE (including Optional)

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

Total Direct Labor

Fringe Benefits

Overhead

ODC

Consultants

Subcontract

X

Y

Z

Total Subcontract

Subtotal

G&A

Total Cost

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 paragraph (i) below. In addition to the level-of-effort hours for professional personnel, an estimate is shown for clerical hours. If it is your disclosed practice to include clerical as a direct cost, then 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 paragraph (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 offerors shall propose the amount specified in paragraph (i) for Other Direct Cost (ODC). The specified amount may be allocated between the prime contractor and subcontractors if applicable. The estimated distribution of the specified ODC appears under the level of effort chart. If you anticipate additional ODCs other than those listed in the distribution, your cost proposal must identify such costs as separate line items. Narrative explanations regarding the basis of the additional ODCs must also be included.

(g) When subcontract or consultant 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 and consultants. 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. Offerors submitting proposals are encouraged to submit a professional staff which demonstrates 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 costs 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 and consultants 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 reduced accordingly.

If the prime contractor or any subcontractor or consultant has any normal ODC items that are not included in the list shown below, the basis for the ODC shall be explained in the proposal and the appropriate amount shall be added to the specified ODC.

(i) The following format 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 37.115-2(a), use of uncompensated overtime is not encouraged.

If the indirect cost rates included in your proposal and/or your subcontractors’ or consultants’ 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 or consultant does not have an approved accounting system (one that is considered adequate for use on Government cost-type contracts), the Contracting Officer’s 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 or consultant on an as-needed basis. Please keep this in mind when negotiating the contract type with your subcontractors or consultants.

LEVEL OF EFFORT DISTRIBUTION TABLE

P-3

P-2

P-1

OTHER DIRECT COSTS DISTRIBUTION TABLE

Base Quantity

Optional Quantity

7-3