Section L STARLite_08Oct2019_FINAL.DOCX

INSTRUCTIONS, CONDITIONS And NOTICES to OFFEROR – NG

Request for Cost Proposal W56JSR-18-R-0008– Instructions

1. The Offeror shall complete the checklist provided in DFARS 252.215-7009 Proposal Adequacy Checklist. Offeror is to provide the location of requested information or an explanation of why the requested information is not provided. In preparation of the Offeror’s checklist, Offeror may elect to have its prospective subcontractors use the same or similar checklist as appropriate.

2. Offeror shall propose to all CLINs. Additionally, all CLINs shall be rolled up into an Estimate-To-Complete (ETC) Summary Cost worksheet by cost element in the same format as the Sample Cost Element Summary by CLIN provided in Table 1A below; additionally, Offeror shall provide:

aa) Cost Element Summary that includes the Actuals-To-Date (as of a certain date agreed to by both the Offeror and Government) within the proposal submission as depicted in Table 1B below.

bb) The Estimate-To-Complete (see Table 1A).

cc) Estimate-At-Completion (EAC = (Actuals + ETC)) as depicted in Table 1B below.

All proposal requirements as described above in aa), bb), cc) and reflected in Tables 1A and 1B shall be contained within one Summary.xls submission. A separate submission may be required for the Consolidated Bills of Material (CBOM) and/or any Subcontractors providing a separate proposal to the Government but those separate submissions shall reconcile with the values represented in the Summary.xls proposal submission.

Table 1A

Sample Cost Element Summary by CLIN – Estimate To Complete (ETC)

Direct Labor

Fringe

O/H

Materials

MHC

Travel

ODC's

Subcontractor/IOT

SHC

Sub Total

G&A

Subtotal

Fixed Fee - Prime

Fixed Fee - Subcontractor

FCCOM

Total

Table 1B

COST ELEMENT SUMMARY - Estimate At Completion (EAC)

Actuals + ETC = EAC

Direct Labor

Fringe

O/H

Materials

MHC

Travel

ODC's

Subcontractor/IOT

SHC

Sub Total

G&A

Subtotal

Fixed Fee - Prime

Fixed Fee - Subcontractor

FCCOM

Total

Note that the Total column in Table 1A is the ETC at the Summary level which is the primary focus of the proposal construction, however, due to the Undefinitized Contract Action (UCA) status of the subject effort, the Actuals are required to be included in the proposal submission. The EAC is simply the addition of the Actuals and the ETC. What the two Summary Tables imply is that the Actuals plus the ETC must add up to the EAC. If and when values are adjusted during negotiations, i.e., direct labor rates, indirect rates, Material, Subcontractor, etc., the Summary Sheets must self-adjust and flow throughout the entire proposal submission through the referencing required and described throughout the balance of these instructions.

3. The Summary Cost Proposal (see Tables 1A and 1B above) shall be submitted in Microsoft Excel with the appropriate formulas included. Links to external worksheets or workbooks are NOT acceptable. Additionally, all values obtained from sourced cost element resources/worksheets such as Direct and Indirect Rate sheets, Materials, ODCs and any applicable Travel shall be referenced (linked) with a unique numeric identifier as appropriate (no leading 0s or special characters – see Table 2). If a Basis of Estimate (BOE) Matrix (or similar source document) is included within the workbook, those hours and other resources shall also be referenced (linked) as appropriate. **Note: The government is NOT requiring that BOEs be included within the Summary Cost Proposal workbook but is requiring that the cost element resources be referenced (linked) and/or be directly traceable to the BOEs if they are provided within the workbook.

Table 2

Sample Indirect Rates - Proposed AND Current FPRA/FPRR

4. If proposing subcontractors, the Offeror shall explicitly detail in its cost proposal the amount of work subcontracted in terms of dollars, percentage of dollars, hours, percentage of hours and contract type. Subcontractors/Service Vendors may submit information that is proprietary directly to the Government via email to the contract specialist, Matthew W. Casey, matthew.w.casey2.civ@mail.mil

5. FAR 52.215-23 Limitations on Pass-Through Charges (Oct 2009), is applicable by reference. FAR provision 52.215-22 Limitations on Pass-Through Charges Identification of Subcontract Effort (Oct 2009) are included in this solicitation. The Offeror shall, as required, identify the information set forth in paragraph (c) of FAR 52.215-22. Be advised that, if applicable, the description of the value-added will be evaluated as part of the technical evaluation.

6. As cited in FAR 15.403-4 Requiring Certified Cost or Pricing Data, the Truth in Negotiations Act (TINA) threshold is $2,000,000. Unless an exception applies, certified cost or pricing data will be required for this effort. This data shall be sufficient to determine a fair and reasonable price. Adherence to the TINA threshold and the requirement for Certified Cost or Pricing Data applies to both the prime contractor and subcontractor(s) under this effort.

7. Offeror’s Cost proposal shall consist of the following workbooks:

Table 3

a. The cost proposal Microsoft Excel workbook (summary.xls) shall consist of a detailed cost worksheet for each CLIN, labor rate worksheet, indirect worksheet, Material Worksheet, Travel Worksheet, and ODC Worksheet. The set of worksheets shall repeat for the Prime and each subcontractor/Interdivisional Organizational Transfer (IOT). Offeror shall include a summary (roll-up) worksheet both by CLIN and cost element(s) – See Summary Table 1A and 1B located in #2 above.

b. Each CLIN shall have a worksheet detailed by cost element (see location worksheet sample below). Instructions for Cost Elements are identified in following subparagraphs of this section.

IMPORTANT NOTE: The Offeror is required to propose to the total level of effort provided to meet the work described in the PWS per CLIN.

c. The Labor Rate worksheet shall list all applicable labor categories (LCAT) and provide the base labor rate per contractor fiscal year. Resource codes that relate to each applicable LCAT shall be included within the Labor Rate worksheet. A unique numeric identifier shall be assigned to each LCAT; the unique numeric identifier shall not contain any leading 0’s or special characters. Additionally, the resource codes and unique identifiers shall be located within separate columns from each other within the Labor Rate worksheet. There shall be a separate column for the proposed direct labor rate and a corresponding column that provides the most current Forward Pricing Rate Agreement rate (FPRA) rates. If an FPRA is not available, the most current Forward Pricing Rate Recommendation (FPRR) shall be provided in a column separate from the proposed rate. If an FPRR is not available, the most current Forward Pricing Rate Proposal (FPRP) shall be provided in lieu of the FPRA or FPRR (see Table 2).

d. The Indirect Rate worksheet shall list all applicable indirect rates proposed as well as the fee rate proposed for CPFF CLINs. Each applicable indirect rate shall be assigned a unique numeric identifier with no leading 0’s or special characters. These unique numeric identifiers shall be contained within a separate column within the Indirect Rate worksheet. There shall be a separate column for the proposed indirect rate and a corresponding column that provides the FPRA rates. If an FPRA is not available, the FPRR shall be provided in a column separate from the proposed rates. If an FPRR is not available, the FPRP shall be provided in lieu of the FPRA or FPRR (see Table 2).

e. Materials: As required under FAR 15.408 Table 15-2, Offeror shall provide a consolidated priced summary of individual material quantities included in the various CLINs being proposed and the basis for pricing (vendor quotes, invoice prices, etc.). Include raw materials, parts, components, assemblies, and services to be produced or performed by others. For all items proposed, identify the items with an item description to include national stock numbers (NSNs) when available, internal reference codes or part numbers; be sure to include the vendor source, quantities, unit costs, bulk costs, extended costs (scrap, shrinkage, etc. may be included as appropriate), with a total cost summary. This Consolidated Bill of Material (CBOM) shall be provided to accommodate the multiple CLINs under this contract with a break down suitable for analysis.

f. Travel: For purposes of evaluation, No Travel is authorized within the proposal submission. Fee shall not be applied.

g. ODC worksheet shall list all other direct costs and show the calculation of all proposed ODCs that are based on a Cost Estimating Relationship (CER). For example: Hazard Pay - Offeror must show the salary and the hazard pay percentage applied to result in the proposed ODC cost; Car Lease - Offeror must show Lease rate multiplied by the applicable POP of the Lease that results in the proposed cost for the proposed lease; Cost of Living Allowance (COLA) - must show calculation of proposed COLA; Living Quarter Allowance (LQA) - must show calculation of proposed LQA.

h. Offeror shall follow the general framework of the sample in Table 4 below providing its cost proposal excel workbook (Summary.xls) for submission. A sample worksheet is provided for the CPFF CLINs and the CR CLINs. Below the worksheet samples is a description of how each cost element shall be proposed within the workbook (see Table 4).

A. SUMMARY COST PROPOSAL: Offeror is required to provide certified cost or pricing data as defined in FAR 2.101. The summary cost proposal Microsoft Excel workbook (summary.xls) must consist of a CLIN rollup by cost element (see Table 1A and 1B under #2 above). The total cost element summary shall provide a detailed cost element worksheet for each CLIN, labor rate worksheet, indirect worksheet, Material worksheet, Travel worksheet and ODC worksheet. The set of worksheets should repeat for the Prime and each Subcontractor/Interdivisional Organizational Transfer (S/IOT).

Each CLIN should have a separate worksheet detailed by cost element (see worksheet samples in Table 4 below). Instructions for Cost Elements are identified in the following subparagraphs of this section.

Worksheets: See Sample CLIN Worksheets below:

Table 4

CPFF CLIN or System Worksheet Sample

Contractor Fiscal Year(s)

Direct Labor

(Hours * Rate) A

(Hours * Rate) B

(Hours * Rate) C

(Base * Rate) E

Total Direct labor

(Base *Rate) G

Subtotal Labor

S/IOT

S/IOT 1

S/IOT 2

S/IOT 3

Total S/IOT

(Base * Rate) O

(Base * Rate) P

Total Cost Input (TCI)

(Base * Rate) R

COM

(Base * Rate) S

(Base * Rate) T

Total COM

Total Proposed

Cost CLIN or System Worksheet Sample Prime Materials

AA

Prime Travel

Prime ODCs

S/IOT

S/IOT 1

S/IOT 2

S/IOT 3

Subtotal S&IOT

Subtotal

Subtotal

Total

Direct Labor: On each CLIN worksheet, provide a listing of each proposed Direct Labor category with its base labor rate, corresponding amount of hours, and extended cost by Contractor Fiscal Year. The three column details (base/rate/dollars) (as included in the above sample) must be proposed per Contractor Fiscal Year. Direct labor rates shall identify the baseline (takeoff point) plus projected escalation for each basic and option period, and the methodology for computing composite labor rates shall be shown. For example, three months of FY12 + 9 months of FY13 divided by 12 = the average labor rates for the contractual period of performance. The offeror and each subcontractor shall clearly state its fiscal year. Offerors are advised that projected escalation shall be applied to both exempt and non-exempt labor categories. Direct labor hours and rates shall be delineated by labor category by contract year for the offeror and each subcontractor. The labor hour delineation shall be directly traceable to the same information proposed in the Technical Volume. The applicable labor rate must be referenced (linked) to the Labor Rate worksheet within the Summary Excel file. The Labor Rate worksheet must list all applicable labor categories and provide the proposed base labor rate per Contractor Fiscal Year. If the proposed labor rates are derived from the most current Forward Pricing Rate Proposal (FPRP), the corresponding Forward Pricing Rate Agreement (FPRA) or Forward Pricing Rate Recommended (FPRR) rates, if available, shall also be provided within the same row of the proposed rates located on the Labor Rate worksheet. Similarly, the proposed labor categories shall correspond with those labor categories utilized within the FPRA and or FPRR (or FPRP if necessary).

Offeror and any subcontractor(s) are responsible for ensuring compliance with the Service Contract Act (SCA) for all applicable labor categories. If Offeror believes that labor categories are subject to the SCA, it must identify such labor categories as SCA Labor within its proposal. Offeror shall disclose the state and county in which the proposed SCA labor categories will be performing the effort, the Wage Determination Schedule used for the proposed SCA labor rates, and the Occupation Code and Title for each proposed SCA labor category.

Indirects: The proposed indirect cost rates (inclusive of Facilities Capital Cost of Money Rates as applicable) are to be listed on the Indirect Rate worksheet within the summary.xls or .xlsx file. The costs on the CLIN worksheets must be the result of calculations using the rates on the indirect rate worksheet. As described within the Direct Labor section above, if the proposed indirect rates are derived from the most current FPRP, the corresponding FPRA or FPRR indirect rates, if available, shall also be provided within the same row of the proposed indirect rates located on the Indirect Rate worksheet. Similarly, the proposed indirect rate categories shall correspond with those indirect rate categories utilized within the FPRA and or FPRR (see Table 2). Indirect expense rates shall be proposed in the same manner as direct labor rates, i.e., by contract year with the methodology used to derive any composite rates proposed.

The proposed fee percentage shall be listed in the “Indirect Rate” worksheet within the summary.xls file and applied accordingly.

Subcontractor/Interdivisional Organizational Transfer (S/IOT): Proposed S/IOT costs are to be listed on the CLIN worksheets. An S/IOT with a Cost Reimbursement arrangement with the Prime contractor is to be proposed to the same level of detail and in the same format as required of the Prime contractor. Each S/IOT teammate, irrespective of contract arrangement with the Prime contractor, is to provide sufficient information to evaluate the proposed costs (see Section D Supporting Documentation below). The proposed S/IOT effort must trace to the applicable supporting documents. S/IOT participants may submit proprietary information directly to the Government. The proposed Subcontracts/Interdivisional Organizational Transfer (IOT) shall be referenced (linked) to the applicable supporting documents. Cost and Price Analysis (CAPA) reports need to include any supporting analysis calculations, and the basis for choosing the proposed Subcontractor or IOT. Cost and Pricing Analysis (CAPA) shall be performed by the Prime contractor in accordance with Table 15-2 located in FAR 15.408. All S/IOT efforts greater than $2,000,000 shall provide the cost and pricing analysis (CAPA) completed by the Prime Offeror or higher level S/IOT offeror (to include competitive bids when applicable). For all non-competitive S/IOT efforts greater than $2,000,000 provide the sole source justification. If the total subcontract value is less than $2,000,000, each S/IOT teammate will provide the lowest level of subcontract cost detail that was available when developing the overall total price for the entire proposal. Offeror is reminded that subcontractor submissions that are not fully supported for the purposes of demonstrating fair and reasonable costs may cause a significant delay in negotiations and award. Subcontractor submissions may be applied a decrement factor of up to 100.0% during negotiations if not fully supported. Offeror is required to clearly demonstrate the competition between subcontractors or provide a clear and coherent sole source justification that will hold up to scrutiny by the government.

IOT efforts shall be distinguished separately from the lead contract entity and referenced (linked) when convenient to do so; if not, a separate workbook for the IOT is acceptable. If a separate workbook is provided by the IOT, the values provided within the separate workbook shall reconcile with the values provided within the Prime Offeror’s proposal. Subcontractor support as detailed in the FAR shall be provided at the time proposals are due. If proprietary information prevents the subcontractor from submitting the information directly to the Prime contractor, the subcontractor shall be directed by the Prime contractor to forward such information directly to the Government (see paragraph 4 above) at the time the proposal submission is due.

Materials: This Consolidated Bill of Material (CBOM) shall be provided to accommodate the multiple CLIN structure with a break down suitable for analysis. Additionally, complete supporting documentation (vendor quotes and/or purchase order history, etc.) shall be provided with the proposal submission for the top eighty percent (80%) of the Material dollars proposed. Additional information for a sampling of the remaining twenty percent (20%) of the Material dollars shall be provided to the government within five (5) business days of the request, post proposal submission, should the government make such a request. In order to demonstrate fair and reasonable pricing, supporting documentation shall include two or more competing quotes for each item proposed within the top eighty percent (80%). In the absence of two or more quotes, sole source justification shall be provided in a detailed narrative form. Failure to provide the competitive quotes and/or sole source justifications, when appropriate, will significantly delay negotiations and award. Unsupported submissions that do not demonstrate a fair and reasonable determination may result in significant decrements of up to 100.0% of the values proposed. Offeror is required to clearly demonstrate the competition between vendors or provide a clear and coherent sole source justification that will hold up to government scrutiny. Note: Fee/Profit is not allowable for Material, Travel or ODCs, however, fee may be applied to the direct labor component included within the Material submission; a clear and coherent carve out of the direct labor that includes the labor categories (LCATs) referenced to the Direct Labor Rate Sheet, extended by hours, and any related indirect rate charge shall be referenced to the Indirect Rate Sheet and clearly identified and supported within the Material submission.

Travel: No Travel is authorized for proposal evaluation purposes. Note: Fee/Profit is not allowable for Material (see direct labor exception above), Travel or ODCs.

Other Direct Costs (ODCs): The proposed ODCs are to be listed in the Other Direct Costs worksheet within the summary.xls or .xlsx file. The costs on the CLIN worksheets must be the result of calculations using the costs on this worksheet. Note: Fee/Profit is not allowable for Material (see direct labor exception above), Travel or ODCs.

Fee: The proposed fee shall be in accordance with FAR 15.404-4(c)(4)(c) and must not exceed ten percent (10.0%) of the proposed costs for CPFF type CLINS. Note: Fee/Profit is not allowable for Material, Travel or ODCs, however, fee may be applied to the direct labor component included within the Material submission; a clear and coherent carve out of the direct labor that includes the labor categories (LCATs) referenced to the Direct Labor Rate Sheet, extended by hours, and any related indirect rate charge shall be referenced to the Indirect Rate Sheet and clearly identified and supported within the Material submission. Fee shall not be applied to any Travel or ODCs.

B. PRICING METHODOLOGY: Provide applicable CAGE codes and cognizant DCAA and DCMA office contact information. Provide the basis for all proposed direct and indirect rates. If the most current Forward Pricing Rate Agreement (FPRA), Forward Pricing Rate Recommendation (FPRR) or Forward Pricing Rate Proposal (FPRP) is used, include the applicable document in the supporting documents as indicated. If there is no FPRA, FPRR, or FPRP, provide the basis of estimate for the direct labor rates to include salary survey data, payroll data, or employment agreement letters as applicable, and as indicated. If there is no FPRA, FPRR, or FPRP, provide the basis of estimate for the indirect pool components showing the calculation of the proposed rates and listing the general ledger accounts that make up each pool of expenses; this information may be provided in Supporting Documents. Include a listing of individual Subcontractor /Interdivisional Organizational Transfer identifying the company and its specific division or segment (including CAGE code) and provide the cognizant DCAA and DCMA office for each.

C. BASIS OF ESTIMATE: The Basis of Estimates (BOEs) shall provide the basis/approach used to estimate direct labor hours, and estimate quantities/ types of ODCs per CLIN; additionally, BOE(s) for S/IOT effort shall be provided. BOEs should be provided to a WBS level, or PWS paragraph level, as appropriate to the needs of Government Evaluators. Offeror must ensure the BOE information is traceable to the cost data in the proposal.

D. SUPPORTING DOCUMENTATION: For Direct Labor rates and Indirect rates, provide the supporting documentation employed in developing the proposed rates used in estimating the proposal. Examples of supporting documentation include: copies of existing FPRA, FPRR, or FPRP, copies of any recent Defense Contract Audit Agency (DCAA) reports, copies of any recent Defense Contract Management Agency (DCMA) reports, and documentation for the proposed direct labor rates, such as recent actual direct labor rates supported by payroll records and/or paystubs, Letters of Intent (LOIs), or salary survey data.

Documentation of indirect expense rates for an FPRP or other statement of current rates must include the proposed expense pool (by expense account) and allocation base detail, along with the last two years' actual pool and base information. The rates reflected in the FPRA, FPRR, FPRP, or DCAA/DCMA audit or review should directly match the proposed rates as detailed in the proposal; if the rates do not match, provide sufficient detail explaining how the proposed rates are reasonable for Offeror and/or its S/IOT. Include narrative on any changes of ownership, significant expansion or contraction of business base, or extraordinary events that have occurred within the past year, or are anticipated to occur prior to award or within the contract period of performance (POP) and any additional information on the selection or activities of the S/IOT.

Supporting Documentation for S/IOT proposed efforts is to include the following information: a breakout of costs for any S/IOT in the same level of detail required for the Prime Contractor when decision by the higher level is non-competitive; the Prime Contractor’s Cost and Price Analysis (CAPA Report) that supports the Offeror’s determination to propose the S/IOT and the basis by which the Prime Contractor or upper level S/IOT determined the vendor’s price reasonable; a statement that the S/IOT has an adequate accounting system, as determined by the Government in accordance with DFARS 242.75, under a cost-type contract or subcontract; and, all hours, labor categories, Materials, Travel and ODCs for FFP and T&M, S/IOT efforts. S/IOT(s) are to be identified at all tiers.

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