CNTPO TORP Pricing Instructions

Introduction.Your cost proposal should be valid for a minimum of 60 days from the date of your proposal submittal. Your proposal must be priced as outlined in the Statement of Work (SOW) and traceable and consistent with the proposed program in your technical section. The price proposal shall include a narrative discussion of price, addressing the BOE/BOP (Basis of Estimate/Basis of Price), in addition to spreadsheets that discuss the price build-up, bill of materials detail and ODC detail. Price proposals submitted solely as spreadsheets without narrative BOE/BOP will be rejected without evaluation. Narratives that provide no details or are cursory in terms of the explanations provided will be rejected without evaluation.

The proposal shall consist of the following information.

1.0 Table of Contents. Your cost proposal must include a Table of Contents. You must provide traceability from the Table of Contents to your back-up data. A page numbering system is mandatory in providing this traceability.

2.0 Overview. Include your ground rules and assumptions, including a general description of the scope, limitation, and qualification of the proposal, and any RFP exceptions or deviations. The subcontractor shall clearly discuss each assumption included in the response to this TORP and the impact of the assumption on the price proposed. Areas of uncertainty/risk shall be clearly discussed. Discuss how the risk affected the basis of price.

3.0 Cost or Pricing Data. If your proposal exceeds $700K, detailed cost or pricing data must be submitted in accordance with FAR 15.403-4. The data must be accumulated in a format consistent with your estimating and accounting systems and be cross-referenced to your books and records.

4.0 Estimating Methodology. Cost estimating must be fully supported by cost data sufficient to establish the reasonableness, consistency, realism, and completeness of the proposed cost/price. You must include a complete description of the philosophy and methodology used in developing your cost estimates.

4.1 Man Loading. Costs must be reported by contract period for each task. Man loading by contract period and labor category is also required by each major PWS Section level. A major PWS section is defined as a two numbered section (e.g., 3.2) or higher (e.g., 3). Contract period cost and man-loading must be tiered up from the PWS Section to grand cost summary.

4.2 Task Description/Basis of Estimate.Written Basis of Estimates (BOE) at the lowest level of your task definition from Northrop Grumman are required in the format provided, “CNTPO TORP xx_Blank BOE Template1.docx” for inclusion in your cost narrative. In your proposal BOEs, clearly present your estimate thought process for allocating labor, materials, supplies, equipment, travel, and all other elements necessary to execute the proposed approach to satisfy each PWS area.

At a minimum, your Basis of Estimate shall clearly present:

· the labor categories proposed (shall map to Attachment 2 of the basic contract);

· the rationale for selection of the labor categories proposed;

· the level of effort proposed and the rationale for the level of effort proposed;

· justification of judgment factors used and their rationale;

· the materials proposed (in the form of a Bill of Materials listing each material item separately);

· the rationale for the materials proposed;

· the ODCs proposed (in the form of Bill of ODCs listing each ODC separately);

· the rationale for the ODCs proposed;

· the travel proposed (by trip and number of travelers per trip);

· the rationale for the travel and rationale for the number of travelers; and,

· all other effort proposed.

Provide information on any contingencies included in your estimates and any other fact having a significant bearing on the estimated cost provided.

4.3 Direct Labor. Time-phase direct labor hours and dollars by labor category, by contract period, by each major PWS section. All labor shall be proposed utilizing the labor categories set forth in Attachment 2 of the basic contract. Labor that does not fit within the labor categories set forth in Attachment 2 shall be included as an ODC and shall be fully explained, to include an explanation of how the labor fits within the scope of the basic contract. The basis of estimate shall reflect the SOW provided by NG. Labor rates are based on the established rate structure as defined in the Attachment B of the subcontract agreement. Discuss how the rates included in the Pricing Matrices (Attachment 6) incorporated into the basic contract were used to develop the prices proposed. Provide a table providing the crosswalk: proposed labor categories in Attachment 2 and Attachment 6; proposed labor rates to labor rates in Attachment 6, etc. When labor is proposed in terms other than the labor categories and rates set forth in the basic contract, the subcontractor shall include the following:

· Labor category and rationale for inclusion

· Labor hours per labor category

4.4 Material. Provide a consolidated priced Bill of Material for the tasks proposed that includes (a) individual part number, (b) description, (c) item application, (d) quantity, (e) unit price at cost, (f) extended price, and (g) the basis of pricing (i.e., P.O., invoice, vendor quote, engineering estimate, etc.), as formatted in the Pricing Template. Provide the P.O., invoice, or vendor quote as supporting documentation. If submitting commercial material items, provide the associated published price list.

4.4.1 Export Compliance Requirements.Subcontractors are to provide an evaluation of export compliance requirements for all materials that they are responsible to furnish under this contract. This evaluation should take place in the proposal phase and be submitted with Material Pricing. Specifically identify all items that are International Traffic in Arms (ITAR) regulated, as well as their United States Munitions List (USML) Category. Additionally identify any items that are controlled under the Department of Commerce, Export Administration Regulations (EAR) that require a license to export, specifically provide the Export Commodity Classification Number (ECCN).

4.5 Other Direct Cost. Provide supporting data to allow an adequate understanding and evaluation of your ODC items, including the following:

(a) Travel – Travel shall include a basis of estimate for each element of travel as formatted in the Pricing Template. Include (i) schedule, (ii) reason for trips, (iii) duration, (iv) number of trips, (v) per diem, (vi) airfare, and (vii) auto rental. Include supporting documentation such as quotes or web site screen shots as demonstrated in the Pricing Template. When travel is proposed in excess of the JTR or includes airfare that is other than non-refundable advance purchase tickets, an explanation shall be provided that includes a discussion of the impact to the task order execution.

(b) DBA – All personnel performing duties in hazardous areas OCONUS shall be included in and insured with a policy covering DBA requirements. Provide the basis to support DBA insurance including rate build-up and supporting documentation.

4.6 Cost of Money.Disclose in the cost narrative whether or not cost of money was proposed.If not deemed proprietary, provide DD1861s or alternative forms showing how cost of money factors were developed, including supporting data.

4.7 Profit/Fee.Disclose in the cost narrative how much profit/fee was proposed. If not deemed proprietary, indicate the considerations underlying the development of the proposed profit/fee in relation to the criteria set forth in FAR Subpart 15.404-4 – Profit.

Escalation.

If applicable, provide data to explain and support escalation factors used.

5.0 Required Cost Summary Reports and Formats. Your cost proposal shall consist of the excel Pricing Template, provided by NG, and a cost narrative in the format of a word document responding to the aforementioned requests of these pricing instructions.

6.0 Status of Systems, Disclosure Statement and CAS. Provide the status of your Accounting, Estimating, and Purchasing Systems. Provide the status of your Disclosure Statement and identify any outstanding Cost Accounting Standards (CAS) non-compliances.

Date: 2015-12-17; view: 895