Attachment E Chart 1A revised 09-07-10 keb.docx

Solicitation W912DR-10-R-0107, Attachment E, Chart 1A revised 9-07-10

CHART 1A – DIRECT COST BREAKDOWN

PRIME CONTRACTOR LABOR

DIRECT

COST

LABOR

BURDEN

SUB

TOTAL

OVER

HEAD

SUB

TOTAL

TOTAL

Equipment

Material

Supplies

Travel

Subcontractor

NOTES FOR COMPLETION OF CHARTS 1A AND 1B

See also instructions, definition and notes given at the end of Section B. They are critical to a full understanding.

Definition of “Job Title” and “Job Classification”:

Job Title = Environmental Engineer Job Classifications are Senior Environmental Engineer, and Junior Environmental Engineer Charts 1a and 1b will be submitted in hard copy and provided in electronic form on CD in a format compatible with Microsoft EXCEL 2003.

The labor burden or labor overhead includes all payroll taxes, insurance, and fringe benefits, etc. If the labor burden is different for different people, or job titles/classifications, provide that information. It must be clear what the total multiplier is for each job title and job classification.

All the direct labor hourly rates and classification that are used to calculate an average hourly rate will be listed and the offeror will show the averaging technique applied (straight averaging or weighted averaging) to calculate the hourly labor rate proposed for each job title and job classification. The average rate, after it is fully burdened, will be the average rate used in Chart 2).

The above listed job titles are given as an example of the types of job titles the government anticipates will be used over the life of this contract. Each offeror must use the job titles listed above in their cost proposal; however, the breakdown of job titles into "senior", and "junior" may not apply. Each offeror will list categories of job titles (senior, junior or categories I, II, III, etc. in accordance with the offerors' standard classification practices. Each offeror is expected to add to the list any other job titles that the offeror anticipates using over the life of the contract, prime or subcontractor job titles. Each offeror will provide, as part of their cost proposal, a listing of the Government-provided job titles and the offeror's title for each job if the offeror's job title differs from that of the government's. Please use specific, descriptive job titles so that it is clear from the proposal what types of work the job titles are anticipated to perform. If a job title is listed above by the government which an offeror normally accounts for totally as an indirect cost, that offeror will not include the job title as a direct cost. That offeror will discuss the reason for not including that job title in the cost proposal.

Do not include, in the fully burdened rates above, any costs other than direct labor plus indirect costs (markups). If the offeror normally adds to hourly labor rates such add-ons as other direct costs calculated on labor hours, do not include those add-on costs in the fully burdened labor rates on this chart. Each offeror will thoroughly discuss, separately from the charts, any additional costs added to hourly labor rates as normal practice.

Total multiplier for each direct cost (labor and other direct cost) must be clearly evident to include all labor burden (to labor), indirect cost build-up, facilities capital cost of money, and any other markups consistent with the offerors' accounting system. However, no prime profit is to be included. The prime's profit will be negotiated for each task order. The prime will include the prime's markup to subcontractors' fully burdened rates if the markup is an indirect cost but will not include profit to the subcontractors’ fully burdened rates. The percentage of the prime's markup will be shown and the offeror will indicate what the markup consists of.

Each offeror and subcontractor will list all indirect costs to be applied to each direct cost. It will be clear from the cost proposal what the total multiplier is for each direct cost exclusive of the prime's profit. The prime's profit will be negotiated on each task order. All other markups must be included.

Show the percentage of each indirect cost rate in its % format. Example, use 25.0% instead of .250.

The above listed other direct costs (all costs that will be charged as direct costs other than labor) are examples that the government anticipates over the life of the contract. Each offeror's other direct costs will be listed according to each offeror's individual accounting system. Offerors will include other direct costs and list all ODCs that are normally charged as direct costs anticipated to be used and consistent with the offerors' accounting system. The government is interested in pre-pricing all the anticipated other direct costs to be charged over the life of the contract and the indirect cost build-up applied to those costs, the total multiplier.

The wage rates and indirect cost rates to be used for completing charts 1a and 1b will be the direct costs and indirect cost rates that will be in effect at the time of award of this contract (which is estimated to be fourth quarter, Calendar Year 2010). The direct costs used will be those in effect at the time of contract award and will be proposed for the base year 1, of the contract. Do not include any escalation. Escalation will be proposed separately as stated below.

Do not round to the next even dollar. Round only to the nearest cent. Round all percentages to the nearest three decimal places.

Attached to this chart each offeror will provide, for the prime contractor and each “team” subcontractor a complete breakdown of each indirect cost rate, all expenses in the indirect cost pool, the base used to calculate the indirect cost rate, and the percentage calculation (%)or each offeror will provide, for the prime and the “team” subcontractors, audit reports, forward pricing rate agreements, or other documents issued by the cognizant federal government audit agency supporting the indirect cost rates proposed for the prime contractor and all subcontractors. The audit or other documents submitted to support the indirect rates must be dated within the last year (e.g., a year from the proposal due date) or the offerors and “team” subcontractors must submit a statement certifying that no significant changes have occurred in their accounting system since the audit (or other documentation) that formed the basis of the approval of the indirect costs rates. However, in any event, the audit upon which the indirect cost rates are based must be no older than two years (based on the proposal due date) in order to be acceptable for meeting this requirement.

Each offeror will provide proposed escalation factors to be applied to all direct costs proposed, labor and other direct costs, and proposed escalation to indirect cost rates and other markup rates for all subsequent periods throughout the life of the contract. Provide the basis for the proposed escalation factors (indexes used, historical industry or company trends, etc).

PROPOSED ESCALATION RATES

* If the current (at time of proposal submittal) labor rates, ODC rates or indirect cost rates are escalated to calculate the base period’s, show the percentage of escalation used.

Within the prime’s proposed escalation rates, the prime must consider all the subcontractors’ proposed escalation rates but the prime will propose only one escalation rate for each of the above listed cost elements which will become the contract’s escalation rates if the offeror receives the award.

Attached to this chart each offeror will provide the number of hours in a year used to calculate the hourly labor rate for each salaried employee along with a discussion of the offeror's policy on calculating and proposing hourly rates when salaried personnel work uncompensated overtime (see further instructions on uncompensated overtime in Section l). Charts 1a and 1b and attachments are to be provided by each offeror for the prime and for each subcontractor that meets the definition of a “team subcontractor” which can be found in Section B.