Solicitation_Attachment_0019_-_Proposal_Instructions_for_Sole_Source.docx

Solicitation W58RGZ-17-R-0105 Attachment 0019 EX 15.5 Proposal Instructions for Sole Source (Revised 8 April 2016)

PROPOSAL INSTRUCTIONS

1.0 INTRODUCTION:

The contractor shall provide a written proposal consisting of a technical proposal and a cost proposal. The technical proposal shall contain the contractor’s approach to perform the work and the basis of the proposed effort, and the cost proposal shall contain a spreadsheet of estimated cost of performing the work and any associated fees along with a cost proposal narrative. The contractor shall ensure that there is consistency between the technical and cost proposal. The responsibility for providing a well-prepared and fully supported cost proposal lies solely with the contractor in order to preclude delays in negotiations and contract award. The basis and rationale for all proposed costs shall be provided as part of the proposal so that the contracting officer has the information necessary to evaluate the reasonableness of the proposed price. The contractor is advised that the contracting officer may find costs associated with revision/rework of inadequate cost proposals unreasonable, and will consider the nature and extent of any proposal inadequacies when assessing/negotiating profit/fee.

1.1 PREPARATION INSTRUCTIONS:

The contractor shall submit proposal information in the format as outlined in the below Table:

· Cost Proposal – 1 copy

· Both portions of the proposal shall contain a table of contents

· Fold-outs shall not exceed 11” x 17”

· Print type used in charts, graphics, figures and tables may be smaller than 10 point font, but must be clearly legible.

CD-ROM or DVD Requirements CD-ROMs or DVDs shall be clearly labeled with the contract number. Files submitted shall be readable using Microsoft® (MS) Word, or Excel® (Version 2013).

1.2 GENERAL INSTRUCTIONS: The contractor shall submit a fully substantiated Technical/Cost Proposal or Technical and Cost Proposals (Including CD), in accordance with Federal Acquisition Regulations (FAR) 15.408 to the following:

(a) Procuring contracting officer – 1 copy and

(b) Cognizant Defense Contract Management Agency (DCMA) and Defense Contract Audit Agency (DCAA) – 1 copy

1.3 PROPOSAL SUMMARY INFORMATION:

(a) The prime contractor proposal exceeding the Certified Cost or Pricing Data threshold of $750,000 shall include a cost element breakdown for the grand total, grand total by Contractor Fiscal Year (CFY), each Contract Line Item Number (CLIN) in total, and each CLIN by CFY (if cost is spread over more than one year). The proposal shall define the timeframe of the CFY (for example, 01 January – 31 December). The summaries shall be in an operational Microsoft Excel format with formulas, non-password protected. At the contracting officer’s direction, the breakout by year shall also be provided by Ordering Periods as outlined in Section A, paragraph 14.

The prime contractor with a proposed value exceeding the Certified Cost or Pricing Data threshold of $750,000 shall provide a Cost Narrative Volume to include:

1) The Commercial and Government Entity (CAGE) Code.

2) Data Universal Numbering System (DUNS) number.

3) Cognizant DCAA, DCMA and Administrative Contracting Officer (ACO) points of contact with name, address, email, and phone number.

4) Prime contractor and each applicable subcontractor (including inter-organizational transfers) proposal validity for a minimum of one year and, preferably, to contract award.

5) Information reasonably required to explain the estimating process (including the judgmental factors applied and the mathematical or other methods used in the estimate, including those used in projecting from known data, and the nature and amount of any contingencies included in the price). Provide justification for use of proposed Cost Estimating Relationships (CER) vs. discrete estimates. If a CER is used, provide estimating methodology and detailed substantiation of how the CER is derived (e.g., engineering experience, actuals, and source data). Please provide the prime contractor’s CER catalogue.

6) In order to ensure initial submission of a fully compliant and adequate proposal, and subsequently avoid any delays associated with proposal inadequacies and excessive proposal preparation costs, the “Proposal Adequacy Checklist” identified in Defense FAR Supplement (DFARS) 252.215-7009 Proposal Adequacy Checklist shall be completed and provided with the proposal. If there are major non-compliances with the checklist, the proposal will be considered inadequate and returned. As a result, an adequate proposal will be required within 30 days. Minor non-compliances will require immediate correction in order to proceed with proposal evaluation and negotiations. Completion of the checklist does not relieve the contractor from the responsibility to comply with all applicable regulations and any special requirements of the solicitation. The contractor shall flow down this provision to subcontractors and affiliates required to submit certified cost or pricing data in support of this Request for Proposal (RFP). If the contractor is unsure as to whether a checklist item is required in support of the proposal, or how to adequately comply with a checklist item, the contractor shall contact the contracting officer as soon as possible after receipt of the RFP, but in any case prior to proposal submittal, to resolve the questions.

1.4 HOURS:

(a) The prime contractor shall provide a breakdown of direct labor hours by direct labor category, CLIN, Work Breakdown Structure (WBS) and year. Also, provide any further breakdown information deemed useful for understanding and evaluating the proposed direct labor hours, labor category titles and descriptions. In the Basis of Estimate (BOE) for the direct labor hours, the contractor shall provide a complete description of the work to be accomplished, a calculation of the proposed hours, the period of performance in which the hours will be expended, and the basis for the calculations.

A BOE shall be provided that thoroughly documents all estimates. A BOE description shall be provided for each activity at the lowest level in the estimate. The detailed narrative description of the BOE shall be organized by WBS and include the following: how the proposed costs were derived; key assumptions and supporting rationales; source of existing verifiable data and judgment factors in projecting from known data to the estimate; estimating methods, parametric estimates, models, etc.; and other assumptions and related information to provide clarity and understanding of the contractor’s BOEs to demonstrate reasonableness.

For example: If the calculations are based on historical data, provide the data and a description of the context of the data to the current effort (i.e. similar quantities, production environment, etc.). Provide relevant concurrent research & development, production, test, etc. effort that will be occurring at the same time as the proposed effort. This shall include any and all programs that share resources such as, but not limited to, production tooling, test equipment, Government Furnished Property (GFP), touch and/or support personnel, etc. Ensure the written rationale clearly explains the historical data utilized, as well as rationale for exclusion and/or adjustment of any data.

(b) For any proposed factored hours, the prime contractor shall provide the basis of the derivation of the factor and the calculations for its use.

(c) For direct touch labor hours, the prime contractor shall provide the standard hours and a description of the task included in the standard along with historical actual hours incurred. This shall include quantitative data to justify any performance factors or learning curve factors used to adjust the standard hours used to calculate direct labor hours.

(d) For labor hours considered to be support or level-of-effort, the prime contractor shall provide a detailed description of the support activities and how it will be used to support all CLINs. The prime contractor shall also show how the contractual requirement is being addressed.

(e) The contractor shall provide a summary of all process improvements and cost reduction initiatives implemented and/or proposed that have resulted in a reduction of direct or indirect labor hours and the associated anticipated labor hours or cost savings.

(f) The contractor shall provide a listing of any known obsolescence or diminishing manufacturing sources issues that may impact this acquisition.

1.5 DIRECT AND INDIRECT RATES AND FACTORS:

(a) The prime contractor shall provide the basis for all proposed rates and/or factors included in the proposal(s). Copies of any applicable Forward Pricing Rate Agreements (FPRAs) shall be provided. RFPs which include Contract Labor Category Descriptions and Qualifications shall be supported with a crosswalk of the corporate labor category rates being utilized in the current proposal along with a comparison of the corporate category and contract category qualifications and experience (if applicable).

(b) Proposal Cost of Money (COM) must be submitted by asset type. Accordingly, the data required by Cost Accounting Standards Board Cost of Money Factors (CASB-CMF) must be delineated for each of the three previously stated asset types consistent with DD Form 1861, Contract Facilities Capital COM (FCCOM). The proposal must provide the percentage distribution of facilities capital employed by asset type (land, building, and equipment).

1.6 ESCALATION:

The prime contractor shall identify the escalation factors used for each GFY, CFY or CY (as applicable), how they are applied, the source of the proposed escalation rates, and the supporting documentation as to why the proposed escalation rates are reasonable.

1.7 FACTORS:

If a complexity (or any other cost estimating) factor is used to adjust the estimated cost of materials to be procured, the contractor shall include detailed justification explaining the need and basis for a complexity (or any other cost estimating) factor adjustment.

1.8 DIRECT MATERIAL/SUBCONTRACTS:

The term “Subcontracts” encompasses all supplier provided material or services in accordance with FAR 44.101. The definition of subcontractors for this effort means any companies (including inter-organizational transfers, inter-company transfers, subsidiaries, or any other affiliates of the prime contractor) supplying materials and/or services for use in this contract.

(a) IAW FAR 15.404-3 (c), the contractor shall (at a minimum) submit, or cause to be submitted by the applicable subcontractor(s), certified cost or pricing data to the Government as part of its own cost or pricing data. The detailed subcontract cost proposals shall include all the information stated in this RFP for the prime contractor for sufficient information to enable the Government to perform its own technical and cost evaluations. Applicable subcontracts are the lower of either—

(1) $13.5 million or more; or

(2) Both more than the pertinent certified cost or pricing data threshold and more than 10 percent of the prime contractor’s proposed price, unless the contracting officer believes such submission is unnecessary and a waiver is appropriate.

The prime contractor is responsible for the submission of the subcontractor’s cost or pricing data to the Government. Even in instances where the applicable subcontractor does not provide detailed data to the prime contractor due to concerns of proprietary data, it is still the responsibility of the prime contractor to ensure the unsanitized cost or pricing data is provided directly to the contracting officer no later than the date of the prime contractor’s proposal submission.

(b) For subcontracts over $750,000, include a completed cost or price analysis in accordance with FAR 15.404-3(b)(1) and include the results of these analyses in the price proposal in accordance with FAR 15.404-3(b)(2). Ensure that the completed cost analysis for each applicable subcontract includes documented rationale supporting the prime contractor’s position for profit/fee for each subcontractor exceeding $750,000 including, but not limited to, a discussion of the degree of risk in fulfilling the subcontract requirements.

(c) Provide a list of all subcontracts over $750,000 via a separate Microsoft Excel file that identifies the subcontractor, the subcontractor’s address and CAGE code, a description and itemized listing of the supplies/services provided by each of the subcontractors, the total proposed value of each subcontract, the status and planned submittal date of the prime contractor’s cost or price analysis (if not already included with the prime contractor’s proposal submission), and the planned subcontract negotiation schedule with anticipated award date. The Government reserves the right to request copies of executed subcontracts, as well as documentation from the prime contractor that addresses and supports the final negotiated prices.

(d) Include a Microsoft Excel version of the prime contractor’s Consolidated Bills of Material (CBOMs) that include the Supplier Name, Supplier CAGE code, material element code, pricing basis, CLIN, Lot, Part Number, Quantity, Unit Price and Extended Price. Include a cross-reference for each item in the CBOM to the applicable supporting documentation.

(e) Prime contractors shall ensure that suppliers over $13.5M provide the following to the Government:

(1) A complete proposal with cost or pricing data as stated above for the prime contractor.

(2) A cost model in Excel format (w/formulas enabled) that can be manipulated. The cost model should provide a detailed break-out of all costs/ rates/ hours.

(f) Provide any technical evaluations performed on the above subcontractor proposal(s) exceeding $750,000.

(g) Allow Government personnel to monitor the prime’s fact-finding discussions with any of the applicable subcontractors under certain specific conditions/guidelines.

(h) When the proposed subcontract amount is based on historical data which has been adjusted (for example, for differences in quantity), the data supporting the CBOM shall clearly identify the adjustments made to the historical data and the reason for each adjustment.

(i) If a complexity (or any other cost estimating) factor is used to adjust the estimated cost of materials to be procured, the contractor shall include detailed justification explaining the need and basis for a complexity (or any other cost estimating) factor adjustment.

(j) A CBOM (acronym not spelled out) for all subcontractor material proposed shall be supported by cost or pricing data documentation to substantiate the amounts proposed, such as, quotations (firm or negotiable and so identified), purchase history (basis of the purchase history), Long-term Pricing Agreements (LTPA), etc.

(k) If any of the subcontracts (including inter-organizational transfers) are based on existing Purchase Orders or LTPAs, the prime contractor shall provide:

(1) A copy of the agreement/order;

(2) When required by FAR 15.404-3(c), subcontractor cost or pricing data to the Government as part of its own cost or pricing data;

(3) Prime-completed adequate cost or price analysis (as applicable IAW FAR 15.404-1);

(4) Documentation demonstrating the continuing reasonableness of the LTPA prices included in the proposal;

(5) Negotiation memorandum documenting negotiations;

(6) Other required supporting documentation to include; (A) Evidence to determine that the purchase contract is Firm Fixed Price and approved; (B) Evidence to determine that proposed unit prices are firm and not ceiling, to be determined, or not to exceed, type unit prices;(C) Evidence to determine validity dates (period of performance) of strategic agreements; and (D) Evidence of certified cost or pricing data from supplier for future years not covered by LTPA.

(l) All contractor RFPs to subcontractors over the threshold for certified cost or pricing data shall include requests for:

(1) Historical actual costs incurred to-date for a minimum of five previous contracts/lots for each end-item supplied;

(2) Estimate to completion at cost (with identification of any management reserve costs) by each contract/lot for each end-item supplied;

(3) Percent complete by each contract/lot for each end-item supplied; and

(m) If any of the subcontracts are awarded based on competition, the prime contractor shall provide:

1) Documentation in accordance with FAR 15.403-1(c)(1), FAR15.404-1, and FAR 15.408 Table 15-2 II. A. (1) showing the degree of competition and the basis for establishing the source and reasonableness of price

2) Request for Quote submitted to suppliers to verify that the prime contractor solicited competitive pricing vs. cost or pricing data;

3) Bid analysis and statement of facts to support prime contractor’s selection of supplier and price analysis that demonstrates the proposed unit prices are reasonable. Statement of facts to support the contractor’s selection of a high bid supplier.

4) Incorporate Better Buying Power 1.0, 2.0 and 3.0 Initiatives as outlined in DFARS policy 215.371-1 through 215.371-3. In cases where “1-bid” proposals are received, cost or pricing data will be required as appropriate; and solicitations receiving only “1-bid”, and which were open to industry for less than 30 days, are to be re-advertised for a minimum period of an additional 30 days.

5) Other required supporting documentation - Recent purchase history for all proposed items priced based on competitive quotes.

(n) If any of the subcontracts are commercial items in accordance with FAR 15.403-1(c)(3) and FAR 2.101 (for definition of commercial item), the prime contractor shall provide:

1) Prime contractor justification and supporting documentation for the Commercial Item Determination (CID) of the subcontractor commerciality assertion;

2) Sales data for three (3) prior non-Government sales agreements to support CIDs to include price analysis (FAR 15.404-1(b)) or market analysis used to determine price reasonableness;

3) Sales data, market analysis, other documentation used to determine significant commercial (non-Government contract) sales; and

4) Other required supporting documentation to include:

i. Commercial supplier web sites, catalogue, quotes from which unit prices were determined;

ii. Recent (past two years) purchase history for all items priced based on commercial quotes;

iii. Identify commercial suppliers (with discount percentages) that offer a discount for preferred customers and/or on Government contracts;

iv. Identify commercial suppliers with whom the prime contractor anticipates negotiating commercial unit prices;

v. Negotiation history with commercial suppliers by supplier, and in summary.

1.9 TRAVEL:

For all proposed travel, the contractor shall provide at a minimum: (1) the origin and destination of each trip; (2) the number of trips per destination; (3) the number of travelers per trip; (4) the proposed timeframe for the travel; (5) all applicable rates (airfare, per diem, car rental, miscellaneous, mileage, escalation and any other rates used in the travel calculations) and data to support the rates; (6) the reason for the trip; and (7) an explanation of how the proposed travel supports this specific effort.

1.10 OTHER DIRECT COSTS (ODC):

The contractor shall provide a full explanation and substantiation of any proposed ODC to include the reason for the proposed cost, the calculation of the proposed cost, and supporting information for prices proposed.

1.11 ACTUAL COST HISTORY TO SUPPORT PRICE/COST ANALYSIS

Provide actual ‘cost’ information by part number for the five most recently completed end items and in total by Government prime contract for subcontractors with total proposed values that exceed the Truthful cost or Pricing Data threshold of $750,000. Actual costs for the purpose of this request are defined as all incurred costs-to-date verifiable within the contractor's accounting system. The actual cost data for each buy/lot/delivered quantity by part number and in total for Government prime contract should include the information shown at Enclosure 1, Solicitation Attachment 0020. This level of detail is required of the prime contractor, all inter-organizational transfers, and all subcontractors over the Certified Cost or Pricing Data threshold of $750,000 to the prime contractor. Data from each inter-organizational transfer and subcontractor must be clearly identifiable.

Provide actual ‘hour’ information by part number for the five most recently completed buys/lots/delivered quantities for the prime contractor and inter-organizational transfers. Actual hours for the purpose of this request are defined as all incurred hours to date verifiable within the contractor’s accounting system. The actual hour data for each end item by part number should include the information shown at Enclosure 1, Solicitation Attachment 0020. This level of detail is required of the prime contractor, all inter-organizational transfers, and all subcontractors over the Certified Cost or Pricing Data threshold of $750,000 to the prime contractor. Data from each inter-organizational transfer and subcontractor must be clearly identifiable.

Provide a summary matrix with the proposal that outlines all the subcontractors in excess of the certified cost or pricing data threshold and the status regarding actuals attainment (e.g. – enclosed, to be submitted directly to the Government point of contact (POC) by specific date (day, month, year), refusing to provide, etc.). The Government’s position is that the provision of actual cost or price information is essential in its efforts to establish a high-fidelity cost estimate and attain a fair and reasonable price. For ongoing contracts, the prime contractors will be required to submit updates to the actual costs incurred by CLIN (in the same format identified above) until negotiations are complete to the Contracting Officer.

2.0 DATA RIGHTS:

In accordance with DFARS 252.227-7017, the prime contractor shall provide any data rights assertions, including subcontractors, as part of the proposal package for items with less than Unlimited Data Rights to the U.S. Government.

3.0 GOVERNMENT FURNISHED PROPERTY (GFP):

The prime contractor shall submit the Government Furnished Property (GFP) List in accordance with DFARS (PGI) 245.201-71 entitled “Government Furnished Property attachments to Solicitations and Awards” in this electronic format. This GFP format, data scheme, the PDFS can be viewed and downloaded from the DPAP website at the following:

Requisitioned Government-furnished property (RGFP): This format is a listing of Government Property to be authorized for contractor requisition from DoD supply sources in accordance with the clause at FAR 52.251-1. The fillable PDF format for this attachment is available at the DoD Procurement Toolbox.

http://dodprocurementtoolbox.org/site/detail/id/26. In accordance with PGI 204.7105(b)(5), enter a numerical sequence number for the attachment.

Scheduled Government-furnished property (SGFP): This format is a listing of the Government property to be provided, including when major end items are being provided under a modification or upgrade contract; or when reparables are being provided under a repair, modification, or overhaul contract. The fillable PDF format for this attachment is available at the DoD Procurement Toolbox http://dodprocurementtoolbox.org/site/detail/id/26. In accordance with PGI 204.7105(b)(5), enter a numerical sequence number for the attachment.