IDaC Profit Formula and Scenario Tool.xlsx
XLSX spreadsheet 20 KB Posted
- Attached to
- Draft RFP for Howard A. Hanson Dam Fish Passage Facility Federal contract opportunity
- Solicitation number
- W912DW24R0004
About this file
This announcement provides information for a draft request for proposal for the Howard A. Hanson Dam Fish Passage Facility project. The U.S. Army Corps of Engineers seeks industry feedback on draft documents and plans to use an Early Contractor Involvement-Integrated Design and Construction delivery method. A virtual industry day will take place on November 29th, 2023, from 10:00 AM to 12:00 PM Pacific Time, and an in-person site visit is scheduled for December 13th, 2023. Interested parties must register by November 28th. One-on-one sessions between contractors and the government will also occur in early 2024 to clarify questions. The agency aims to improve the draft documents before a final RFP and select a contractor to work collaboratively with the government during design and establish a firm fixed price for subsequent construction. No proposals are being requested at this time in response to the draft documents.
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Text version
Example Profit Scenario
THIS IS ONLY AN EXAMPLE OF HOW THE IDaC CLAUSE FORMULA WORKS USING THE INPUTS GIVEN BY THE GOVERNMENT IN THE SOLICITATION AND AN OFFEROR'S FICTITIOUS PROPOSAL
Step 1 - Initial Competed Price at Award
| Initial Target Cost (ITC) (Given as CCL) | $500,000,000.00 | |
| Initial Target Profit (ITPr) | $45,000,000.00 | 9% |
| Initial Target Price (ITP) | $545,000,000.00 | |
| Initial Share Ratio (Contractor's Share) | 50% | |
| Contract Ceiling Price (CCP) % above Target Cost | $575,000,000.00 | 115% |
| Firm Share Ratio Under | ||
| Firm Share Ratio Over | ||
| Minimum Firm Target Profit Floor | 3% | |
| Maximum Firm Target Profit Ceiling | 12% |
| FIRM TARGET PRICE CALCULATIONS |
| Step 2 - Production Point |
| Firm Target Cost | $500,000,000.00 | ||
| Delta | $0.00 | ||
| Contractor Share of Delta | $0.00 | ` | |
| Firm Target Profit | $45,000,000.00 | 9.00% | |
| Firm Profit No Less than Minimum Profit (Floor) | $15,000,000.00 | 3.00% | |
| Firm Profit No More than Maximum (Ceiling) | $60,000,000.00 | 12.00% | |
| Firm Target Price | $545,000,000.00 | ||
| Step 3 - Negotiate Final Construction Price (FFP) using the calculated Firm Target Price as basis |
| **In no circumstance may the Final Construction Price exceed the Construction Contract Ceiling Price established in the contract** | Final Construction Price (FFP) Negotiated: | |
| (CANNOT EXCEED THE ESTABLISHED CCP) | $ |
| FIRM TARGET PRICE CALCULATIONS (COST UNDERRUN SCENARIO) |
| Step 2 - Production Point |
| Firm Target Cost | $450,000,000.00 | |
| Delta | $50,000,000.00 | |
| Contractor Share of Delta | $25,000,000.00 | |
| Firm Target Profit | $70,000,000.00 | 15.56% |
| Firm Profit No Less than Minimum Profit (Floor) | $13,500,000.00 | 3.00% |
| Firm Profit No More than Maximum (Ceiling) | $54,000,000.00 | 12.00% |
| Firm Target Price | $504,000,000.00 | |
| Step 3 - Negotiate Final Construction Price (FFP) using the calculated Firm Target Price as basis |
| Final Construction Price (FFP) Negotiated: | ||
| (CANNOT EXCEED THE ESTABLISHED CCP) | $ |
| FIRM TARGET PRICE CALCULATIONS (COST OVERRUN SCENARIO) |
| Step 2 - Production Point |
| Firm Target Cost | $550,000,000.00 | |
| Delta | ($50,000,000.00) | |
| Contractor Share of Delta | ($25,000,000.00) | |
| Firm Target Profit | $20,000,000.00 | 3.64% |
| Firm Profit No Less than Minimum Profit (Floor) | $16,500,000.00 | 3.00% |
| Firm Profit No More than Maximum (Ceiling) | $66,000,000.00 | 12.00% |
| Firm Target Price | $570,000,000.00 | |
| Step 3 - Negotiate Final Construction Price (FFP) using the calculated Firm Target Price as basis |
| Final Construction Price (FFP) Negotiated: | ||
| (CANNOT EXCEED THE ESTABLISHED CCP) | $ |
Step 1 Initial Target Cost Step 2 Firm Target Cost Step 3 FFP or Off-Ramp Established by RFP Proposed By Contractor Proposed By Contractor Negotiated
FFP
Example Calculation of a Cost Underrun Example Calculation of a Cost Overrun
File details come from the government source that posted it. Updated .