Cost_Price_Proposal_Requirements.pdf

COST/PRICE PROPOSAL REQUIREMENTS

1. General:

a. A proposal is presumed to represent the offeror’s best efforts to respond to the solicitation. Any inconsistency, whether real or apparent, between promised performance and cost or price shall be explained in the proposal. For example, if the use of new and innovative techniques is intended, their impact on cost or price shall be explained. If a business policy decision has been made to absorb a portion of the estimated costs, that approach shall be stated in the proposal, including associated calculations showing the amount of the absorption. The burden of proof as to the cost/price credibility rests with the Offeror.

b. All costs/prices and expenditure profiles for this acquisition shall be stated in current U.S. dollars. Current dollars should be interpreted to include escalation where appropriate.

c. All cost data is considered to be data other than certified cost or pricing data.

d. The cost/price proposal and all exhibits/attachments, etc., shall be submitted in

Microsoft Office or compatible format. Electronic spreadsheets shall contain all working formulas and algorithms, shall be in the same format as the cost/price proposal, and shall calculate proposed costs. Values within spreadsheets and worksheets that are based upon values or calculations in another spreadsheet or worksheet should be linked to the other spreadsheet or worksheet to facilitate understanding how the values were calculated or where they were derived from.

Sufficient supporting details, formulas, calculations, documentation, explanations, etc., must be provided with the proposal to show how the costs in the Cost/Price proposal were developed. The proposal should be properly cross-referenced.

e. The offeror should ensure that all required data in its proposal is visible and accessible. The Government is not responsible for identifying hidden or inaccessible data.

f. The Government is under no obligation to correct proposal errors or omissions.

2. Proposal Format Requirements: The offeror is required to provide cost and pricing information as specified below for all years/periods of the proposal. Unless provided elsewhere in this solicitation, the offeror’s proposal shall include all costs and fees necessary to perform the work. This includes any applicable taxes, duties, etc. The following applies to the offeror’s pricing proposal:

a. For each task order proposal, the offeror shall provide a Grand Total Price

Summary of the offeror’s total proposed cost plus fee using the table in the tab labeled “Grand Total Price Summary” included in Attachment XX, Cost Reimbursable Pricing Proposal Format. Formatting changes to the table are permitted to accommodate automatic generation of the table by means of a pivot table as long as the resulting table is substantially similar in appearance, and all of the cost elements shown therein are included.

b. For each task order proposal, the offeror shall provide separate summaries identifying total costs, total fees, and total cost plus fee proposed for each Performance Work Statement (PWS) paragraph and site activated in Technical Exhibit A.1 by performance period. This shall be accomplished using the applicable “Pricing by PWS-Site – (name of task order)” tab included in Attachment XX – Cost Reimbursable Pricing Proposal Format. xx such tabs are provided, one for each task order. For each task order, the offeror will prepare three copies of the applicable “Pricing by PWS-Site – (name of task order)” format, with one copy identifying the proposed “Total Cost”, another copy identifying the proposed “Total Fee”, and the third copy identifying the proposed “Total Cost plus Fee” for each PWS and site by period, along with grand totals as shown at the bottom of the tabs. The following guidance is provided:

(1) The offeror shall not change, add, or delete any PWS numbers/descriptions and site codes, with the exception that the offeror may add additional site codes as appropriate to identify costs and fees proposed to be incurred at other locations such as a home office, field office, etc. If so, the additional site codes should be added to all three summaries under the appropriate PWS number at the bottom of the PWS number’s existing site list. The offeror should provide a table that cross-references offeror provided site codes to the actual location of the site.

(2) As used here, “cost” refers to all costs, including direct costs, indirect costs, and facilities capital cost of money (if any), but not including the offeror’s fee.

(3) A blank cell, or a cost/fee/price of $0 shown in the summaries for any given PWS number/site/period will be interpreted to mean that the offeror is proposing to perform the work for that PWS number/site/period at no direct cost to the Government.

(4) The “Grand Total” amounts shown in the “Total Cost Plus Fee” summary should be consistent with the grand total prices shown in the “Grand Total Price Summary” table.

(5) Formatting changes to the tables are permitted to accommodate automatic generation of the tables by pivot tables as long as the resulting tables are substantially similar in appearance, and all of the PWS numbers, descriptions, and sites shown therein are included.

c. For each task order proposal, the offeror shall provide a “Rates Table” in Microsoft Excel format that provides summary information on the offeror’s indirect rates (including fringes, direct labor overhead, General & Administrative, and cost of money rates (if any)), factors, and fee. This table should identify all rates proposed for all periods covered by the proposal. This table should provide the following information:

(1) Information on the offeror’s fiscal year. State whether the offeror’s fiscal year is on a calendar year basis, or another basis, and if so, identify the actual period of the fiscal year. Provide other information as appropriate.

(2) Provide the following information for each rate (for the fee rate, only the fee rate itself is required):

(a) Identification/description of the rate or factor.

(b) Year or period covered by the rate.

(c) The rate/factor itself.

(d) The allocation base the rate/factor is applied to.

(e) Brief summary of the basis for the rate/factor.

(f) For rates that are composite rates (e.g., a rate based on a blend of two or more fiscal year rates), provide information on how the rates were calculated. The rates table should contain calculations showing the development of the composite rates, with the composite rates linked to the calculations.

d. For each task order proposal, the offeror shall provide detailed supporting schedules (“schedules”) showing how the offeror calculated its proposed costs and fees shown in the “Pricing by PWS-Site – (name of task order)” tabs. These schedules shall be submitted in a format substantially similar to the “Labor Details” and “Non-Labor Details” tabs contained in Attachment XX – “Cost Reimbursable Pricing Proposal Format” tabs. The yellow highlighted columns in these tabs are mandatory unless the notes therein provide otherwise. The offeror’s schedules shall comply with the following:

(1) Only one schedule consisting of one table or list may be used for each of the four major direct charged elements of cost (labor, materials, equipment, and other direct costs (ODCs), for a maximum of four schedules. Each of these schedules shall be on one Microsoft Excel worksheet, and not spread out over two or more worksheets. The individual schedules may be combined if desired into fewer tables. If so, the tables should contain a column to identify whether the data contained in any row is labor, materials, equipment, or ODCs.

(2) Each PWS number/site combination is a separate requirement. Therefore the schedules must separately identify by PWS, period of performance, and site all resources required to perform the work required for each PWS and site by period. These schedules shall include detailed identification of subcontractor resources and costs. The Government’s cross-walk of resources between the Technical/Management volume and the cost proposal will be limited to the data contained on these four schedules. The Government will not refer to other supporting schedules. Therefore the resources included in the schedules must be detailed, and not merely summaries with links to separate document that provides a detailed breakout of resources by PWS/site.

(3) The PWS and site numbers used in the schedules shall be those identified in the applicable “Pricing by PWS-Site – (name of task order)” tab. The offeror shall not structure its proposal using its own work breakdown structure numbering scheme, or develop its own site codes. The only exception is that the offeror may add site codes as needed to capture costs and fees associated with performance at locations other than the Government sites.

Any such site codes must be assigned to an appropriate PWS number from the applicable “Pricing by PWS-Site – (name of task order)” tab. The offeror should provide a table that cross references the site code to the actual location.

(4) Each row of resources in the schedules shall be fully priced out to include the extended cost, all indirect costs, fee, and total price, with each distinct element of cost having its own column. The costs shown in the schedules shall be calculated using formulas that point to the data contained within the schedules, rather than merely being links to calculations shown on other spreadsheets or worksheets. This does not preclude the use of links or lookups to other tables or worksheets to obtain rates (direct or indirect), labor hours, quantities, or unit costs.

e. For each task order proposal, the offeror shall provide a “Subcontract Summary” in Microsoft Excel format utilizing the table shown in the tab labeled “Subcontract Summary” contained in Attachment XX – “Cost Reimbursable Pricing Proposal Format”. Instructions are contained therein. As noted above, the detailed supporting schedules are required to identify the resources being provided by subcontractors. The “Subcontract Summary” provides a means to identify total subcontract costs for each subcontractor. Note that this table does not require any further breakdown by PWS paragraph or site. Formatting changes to the table are permitted to accommodate automatic generation of the table as long as the resulting table is substantially similar in appearance,

3. This solicitation incorporates FAR 52.217-8, Option to Extend Services. In the event any resulting contract is extended in accordance with FAR 52.217-8, the price for such an extension shall be at the rate for the last period of performance, prorated for the length of the extension. The proposed cost and price for the extension period for each task order shall be based on prorating the Offeror’s proposed cost and price for the last period of performance to reflect a six (6) month extension period. The pricing included on the “Grand Total Price Summary” and the “Pricing by PWS-Site – (name of task order)” summaries shall also show these costs, fees, and pricing in the provided columns. It is not necessary to provide calculations, details, or support for the extension costs and fees in the detailed supporting schedules.

4. Subcontract Cost or Price Proposals:

a. As used herein, the term “subcontractor” also refers to the Offeror’s divisions and subsidiaries.

b. Those subcontractors whose total proposed price for a task order exceeds $XXX for all years of the task order (including the Transition and FAR 52.217-8 periods) shall submit a detailed cost or price proposal for that task order. The proposal shall be submitted in Microsoft Office format as required by Section LX.X.X of the solicitation. These detailed cost or price proposals are required whether the subcontractor is selected on a competitive or non-competitive basis. The Government requires this information in order to have visibility into the resources being proposed by the subcontractor, and to facilitate the cost realism evaluation.

The following addresses what information is required depending on the subcontract’s proposed contract type:

(1) Cost Type Subcontracts: The subcontractor shall provide a detailed cost proposal in accordance with the instructions of Section L.X.X.X of this solicitation and attachments referenced therein. References in the solicitation and attachments to “Offeror”, “Contractor”, etc., also refer to the subcontractor.

(2) Firm Fixed Price Type Subcontracts: The subcontractor shall provide a detailed price proposal broken out by PWS paragraph number, period, and site. The PWS paragraph numbers and sites identified in the proposal shall be those listed in the applicable “Pricing by PWS-Site – (name of task order)” tab of Attachment XX – Cost Reimbursable Pricing Proposal Format. The subcontractor may not add any PWS numbers not listed on the aforementioned tab. The subcontractor may use additional site codes to address its own sites; if so, the proposal should provide a table cross-referencing the site code to its actual location. The price proposal shall identify the following as appropriate:

(a) Labor: The proposed price for each WBS/period/site shall be broken out by labor category, with a further breakdown by labor type (i.e., Expat, FN, LN, US). For each labor category proposed, identify the proposed labor hours, proposed FTEs, proposed firm fixed rates or prices, and total proposed price.

(b) Material/Equipment/ODCs/Subcontracts/Services: The proposed price for each WBS/period/site shall contain a detailed price breakout. For each item in the breakout, provide its description, proposed quantity, unit of measure, proposed firm fixed rates or prices, and total proposed price. If unit of measures are abbreviated, provide an acronym list to cross-reference the unit of measure code to its description.

(3) Mixed Type Subcontracts: If a proposed subcontract is composed of both cost and firm fixed priced portions, each portion of the cost/price proposal should conform to the appropriate submission requirement above. The threshold identified above refers to the total price of the subcontract, not to the individual cost or firm fixed priced portions of the subcontract.

c. A subcontractor whose proposal does not exceed $XXX for all years of the task order (including the Transition and FAR 52.217-8 periods) may submit its proposal using its normal proposal methodology. The subcontractor must still provide some type of breakout identifying proposed labor categories and hours, and/or material/equipment/other direct cost descriptions and quantities. This breakout must be broken out by period, PWS paragraph, and site. The proposal shall be submitted in Microsoft Office format as required by Section LX.X.X of the solicitation.

d. The detailed cost or price proposals required above are not needed for the following service subcontracts: Hotel/motel/housing rentals, and waste hauling and disposal subcontracts, if the normal pricing practice is to propose a price per unit (e.g., hotel rate per night). The subcontractor’s normal proposal methodology is acceptable.

e. Those subcontractors performing in an OCONUS location shall provide an affirmative statement that the subcontractor understands and will fully comply with current host nation laws, including labor laws, throughout contract performance. Provide the basis for the offeror’s statement (e.g., consulted with licensed host nation attorney, in-country experience with no compliance issues, etc.).

f. If a subcontractor desires to submit its detailed proposal data directly to the Government rather than through the offeror due to proprietary concerns, the subcontractor may do so. All solicitation provisions pertaining to the timeliness of submission and receipt are applicable to subcontract proposals submitted directly to the Government. It is the Offeror’s responsibility to ensure that all subcontractor submissions are timely received by the Government.