Cost_Proposal_Instructions.docx

ATTACHMENT #6

FAR 52.215-20 REQUIREMENTS FOR COST OR PRICING DATA OR INFORMATION OTHER THAN COST OR PRICING DATA (OCT 1997) ALTERNATE IV (OCT 1997)

(a) Submission of cost or pricing data is not required.

(b) Provide information described below:

The offeror shall submit an electronic copy via www.FedConnect.net (see Section L Provision EPA-L-15-104) of the cost proposal. Proposals not submitted via FedConnect will not be considered or evaluated. Submit this information in MICROSOFT EXCEL and identify which version of EXCEL is being used. The narrative portion of the cost proposal may be submitted in Microsoft Word or .pdf format.

(1) In developing the cost proposal include the following information:

• Clearly identify separate cost information associated with each contract year (e.g., base period and each option period);

• A summary of the cumulative cost of the contract for all periods; and

• An overall summary of the cumulative cost of the contract for all periods.

Whenever subcontractor effort is included in the proposed costs, the prime contractor shall include an additional supporting cost summary consolidating all costs (both contractor and subcontractor) by element for each contract period.

The realism of costs, including personnel compensation rates (including effective hourly rates due to uncompensated overtime) will be part of the proposal evaluation. Any reductions to proposed costs or differences between proposed and known EPA/Defense Contract Audit Agency (DCAA) recommended rates must be fully explained. If an offeror makes a reduction which makes its offer or portions of its offer below anticipated costs, the offeror shall identify where (i.e., which elements of costs) the proposed reductions will be made. Unsubstantiated rates may result in an upward or downward adjustment of the cost proposal to reflect more realistic costs. Based on this analysis, a projected cost for the offeror will be calculated to reflect the Government's estimate of the offeror's probable costs. Any inconsistency, whether real or apparent, between the promised performance and cost or price should be explained. The burden of proof for cost credibility rests with the offeror.

The offeror shall provide a summary description of its standard estimating, purchasing and accounting systems which cover (separately) each major cost element. Also, identify any deviations from the standard estimating, purchasing and accounting procedures in preparing this proposal. State whether you have Government approval of these systems and if so, provide evidence of such approval.

(2) Direct Labor

The direct technical labor hours (level-of-effort) identified in the solicitation are for professional and technical labor only. These hours do not include management at a level higher than project management, e.g., corporate and day-to-day management, nor do they include clerical and support staff at a level lower than technician. If it is the offeror's normal practice to charge these types of costs as direct costs, include these costs along with an estimate of the directly chargeable labor-hours for these personnel. These direct charges are to be shown separately from the technical (level-of-effort) effort. The hours for non-professional or non-technical labor are distinct from the professional and technical hours specified in the solicitation. If this type of effort is normally included in the offeror's indirect cost allocations, no estimate is required. However, direct charging of these on any resulting contract will not be allowed. Additionally the direct technical labor hours are the workable hours required by the Government and do not include release time (i.e., holidays, vacation, etc.) Submit the proposal with estimated labor categories and distribution of the level-of-effort based on the requirement SOW. The proposed distribution will be used to determine an offerors understanding of the requirement and cost realism.

Explain the basis of the proposed labor rates, including a complete justification for all judgmental factors used to develop weights applied to company's category or individual rates that comprise the rates for labor categories specified in the solicitation. This explanation should describe how the technical approach coincides with the proposed costs. If the proposed direct labor rates are based on an average of the individuals proposed to work on the contract, provide a list of the individuals proposed and the hours associated with each individual in deriving the rates. If the proposed direct labor rates are based on an average of company category rates, identify and describe the labor categories and the percentages associated with each category in deriving the rates, explaining in detail the basis for the percentages assigned.

Describe for each labor category proposed, the company's qualifications and experience requirements. If individual rates are used, provide the employee's name. If specific individuals are identified in the technical proposal, correlate these individuals with the labor categories specified in the solicitation.

Provide a matrix summarizing the effort proposed, including the subcontracts, by professional and technical level specified in the solicitation.

Indicate whether current rates or escalated rates are used. If escalation is included, state the degree (percent) and methodology. The methodology shall include the effective date of the base rates and the policy on salary reviews (e.g., anniversary date of employee or salary reviews for all employees on a specific date).

State whether any additional direct labor (new hire or temporary hires) will be required during the performance period of this acquisition. If so, state the number required, the professional or technical level and the methodology used to estimate proposed labor rates.

Uncompensated overtime. The decision to propose uncompensated overtime is the offeror's decision. Should the offeror, however, elect to propose uncompensated overtime, the offeror must propose a methodology that is consistent with their cost accounting practices and company policy. If proposed, provide an estimate of any uncompensated overtime proposed for exempt personnel working at the offeror's facilities. This estimate should identify the number of uncompensated labor hours and the percentage of compensated labor. Uncompensated labor hours are defined as hours for exempt personnel in excess of regular hours for a pay period which are actually worked and recorded in accordance with company policy. Provide a copy of the company policy on uncompensated overtime. Provide historical percentages of uncompensated overtime for the past three years. If proposed for subcontractors, provide separately with subcontractor information.

(3) Indirect Costs (fringe, overhead, general, and administrative expenses)

If the rates have been recently approved, include a copy of the rate agreement. If the agreement does not cover the projected performance period of the proposed effort, provide the rationale and any estimated rate calculations for the proposed performance period.

Submit supporting documentation for rates which have not been approved or audited. Indicate whether computations are based upon historical or projected data.

Offerors who propose indirect rates for new or substantially reorganized cost centers should consider offering to accept ceilings on the indirect rates at the proposed rates. Similarly, offerors whose subcontractors propose indirect rates for new or substantially reorganized cost centers should likewise consider offering to accept ceilings on the subcontractors' indirect rates at the proposed rates.

Note to paragraph above: The Government reserves the right to adjust an offeror's or its subcontractor's estimated indirect costs for evaluation purposes based on the Agency's judgment of the most probable costs up to the amount of any stated ceiling.

(4) Other Direct Costs (ODC)

If the solicitation specifies the amount of other direct costs, this amount is exclusive of any applicable indirect costs. Fee is inapplicable to ODCs.

If the amount is not specified in the solicitation, or an offeror believes additional ODCs are necessary to perform, attach a schedule detailing how ODCs were computed. Identify the major ODC items that under the accounting system would be a direct charge on any resulting contract.

If any of the cost elements identified as part of the specified other direct costs are recovered as an indirect cost, in accordance with the offeror's accounting system, those costs should not be included as a direct cost. A complete explanation of this adjustment and the contractor's practice should be provided.

(5) Team Subcontracts (subcontracts 5 percent of the total estimated contract dollar value or $100,000, whichever is less)

Provide details of subcontract costs in the same format as the prime contractor's costs. This detailed information may be provided separately to the EPA if the subcontractor does not wish to provide this data to the prime contractor. Cost data provided separately by a contractor must be received by the time, date and at the location specified for the receipt of proposals. The subcontractor's package should be clearly marked with the RFP number, the name of the prime offeror, and a statement that the package is subcontractor data relevant to the proposal from the prime offeror. If submitted with the prime contractor's proposal, identify the subcontractors. State the amount of service estimated to be required and the quoted daily or hourly rate. Offerors are encouraged to provide letters of intent, signed by subcontractors, agreeing to a specified rate for life of the contract. Include a cost or price analysis of the subcontractor cost showing the reasons why the costs are considered reasonable.

Describe how the prospective team subcontractors were chosen as part of the offeror's proposed team; and rationale for selection.

Describe the necessity for the subcontractor's effort as either a supplement or complement to the offeror's in-house expertise.

Identify the areas of the scope of work and the level of effort the subcontractors are anticipated to perform. Provide a reconciliation summary of the proposed hours and ODCs for the prime contractor and proposed subcontractor(s).

Describe the prime contractor's management structure and internal controls to ensure efficient and quality performance of team subcontractors.

(5) Facilities Capital Cost of Money (FCCM)

When an offeror elects to claim FCCM as an allowable cost, the offeror must submit Form CASB-CNF and show calculation of the proposed amount. FCCM will be an allowable cost under the contemplated contract, if the criteria for allowability at FAR 31.205-10(a)(2) are met.