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PREPARING COST PROPOSALS

PREPARING COST PROPOSALS. Andrea O’Neill Cost/Price Analyst ACC-RSA. AGENDA. Elements of a Proposal; Proposal Example Indirect Rate Calculations Unallowable Costs; Preparing For Negotiations; and Common Deficiencies Found in Proposals . ELEMENTS OF A PROPOSAL.

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PREPARING COST PROPOSALS

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  1. PREPARING COST PROPOSALS

    Andrea O’NeillCost/Price AnalystACC-RSA
  2. AGENDA Elements of a Proposal; Proposal Example Indirect Rate Calculations Unallowable Costs; Preparing For Negotiations; and Common Deficiencies Found in Proposals.
  3. ELEMENTS OF A PROPOSAL Cover Sheet (FAR 15.408, Table 15-2 I.A.) Summary by Cost Element Direct Labor (Table 15-2 II.B.) Indirect Costs (Table 15-2 II.C.) Other Costs (Table 15-2 II.D.) Profit/Fixed Fee (FAR 15.404-4)
  4. ELEMENTS OF A PROPOSAL Basis of Estimate Indirect rate computation and application; Cost breakdowns and budgetary data Other information requested in RFP, Section L.
  5. SAMPLE PROPOSAL TECHNICAL SUPPORT CONTRACT
  6. PROPOSAL REQUIREMENTS XYZ Technologies, Inc. has just submitted a proposal to the Federal Government for the task of surveying an environmentally sensitive plot of land for the construction of a complex Government Building. XYZ Technologies, Inc. does not have the expertise to handle the suspected pollutants believed to be under the site. XYZ Technologies, Inc. subcontracted certain aspects of the environmental site work to Enviro, Inc. the only firm in the state that has the current technology to perform the necessary testing. Because the proposal is greater than the cost or pricing data threshold, a cost analysis will be performed on the proposal.
  7. PROPOSAL SUBMISSION See sample proposal in excel file.
  8. PROPOSAL EXERCISEDIRECT LABOR (Sch 1) Support the proposed labor cost of $338,000; Provide the basis for the hours and hourly rates. Example: Hours are based on Contract ABC which was performed in FY 2011 and was similar to this effort. The hourly rates are based on current average rates paid to those labor categories. Payroll records are available upon request.
  9. PROPOSAL EXERCISESUBCONTRACTOR COST (Sch 2b) Support the proposed subcontractor cost of $115,948; Provide a cost/price analysis on Enviro, Inc. (FAR 15.404-3). If subcontract is based on competition, then provide quotes from the other bidders and an explanation why this one was selected; Subcontractor generally provides unsanitized proposal directly to Government.
  10. PROPOSAL EXERCISEINDIRECT RATES (Sch 4) Provide budgetary data on how indirect rates were calculated; Provide basis of estimate.
  11. PROPOSAL EXERCISEBILL OF MATERIAL (Sch 3) Either provide quotes for items in BOM or have readily available for review; If sole source procurement, then provide justification.
  12. Determining Allowability (FAR 31.201-2); Reasonableness; Allocability; GAAP and practices appropriate to the particular circumstances; Terms of the Contract. UNALLOWABLE COSTS
  13. PREPARING FOR NEGOTIATIONS Personnel to bring to the negotiation table: Authorized personnel to bind the company Technical personnel familiar with estimates Cost estimator who prepared the proposal Data related to the proposed costs Updated information since original proposal developed.
  14. COMMON DEFICIENCIES Lack of supporting data No Basis of Estimate (BOE) Not complying with RFP instructions Math Errors Summary and supporting schedules not tying
  15. REFERENCES FAR PART 15 – Contracting By Negotiation FAR PART 31 – Contract Cost Principles DCAA’s Information for Contractors www.dcaa.mil Contract Pricing Reference Guide https://acc.dau.mil/cprg
  16. QUESTIONS
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