Common use of Cost/Price Proposal Clause in Contracts

Cost/Price Proposal. The Offeror shall submit a cost/price proposal with supporting information for each cost element consistent with Offeror's disclosed estimating system practices. The breakdown should include such elements as direct labor, materials, travel and indirect costs. The Offeror shall provide exhibits as necessary to substantiate each direct labor rate and indirect cost element. For any rates proposed that are not DCAA reviewed/approved, the Offeror shall provide complete documentation and the rationale for their use at time of proposal submission. The Offeror shall use the cost proposal spreadsheet format attached to this RFP, Attachment J-4, for the excel version of the submitted cost proposal. Each subcontractor may submit their own proposal utilizing the RFP Attachment J-4 template if the total proposed costs exceed the certified cost or pricing threshold (currently $2,000,000). Those subcontractors proposing $2,000,000+ may submit their complete, unsanitized proposal directly to the Government via electronic means only to ▇▇▇▇▇.▇▇▇▇▇▇▇▇▇▇@▇▇▇.▇▇▇▇.▇▇▇. If the subcontractor is submitting their unsanitized proposal directly to the Government, the prime Offeror need only to include those hours, rates, and values necessary to complete the prime Offeror’s proposal. Each prime Offeror is solely responsible for ensuring their chosen subcontractors exceeding the certified cost or pricing threshold, in accordance with FAR 15.403-4, submit their unsanitized proposal by the proposal due date specified on the Standard Form (SF) and here in Section L. In this procurement, the Government will perform a cost realism analysis of each Offeror’s proposed costs. The burden of cost credibility rests with the Offeror to demonstrate the realism of its proposed costs; as such, the Offeror must submit substantiating cost data for every cost element it proposes (e.g., direct labor, fringe rate, overhead rate, G&A rate, subcontract costs, etc.). Providing insufficient information to substantiate the realism of an Offeror’s proposed costs may result in a cost adjustment and/or the offer may no longer be considered for award. The Offeror’s proposal should represent its best efforts to respond to the solicitation. Any inconsistency between promised performance – i.e., the technical or management proposals and the identified personnel resources – and the proposed cost/price must be explained in the proposal. For example, if the intended use of new and innovative techniques is the basis for an abnormally low estimate, the nature of these techniques and the impact on cost or price shall be explained; or, if a corporate policy decision has been made to absorb a portion of the estimated cost/price, that must be stated in the proposal. Any inconsistency, if unexplained, may raise a fundamental question of the Offeror’s understanding of the nature and scope of the work required and may adversely impact the evaluation of the Offeror’s proposal. The burden of proof as to cost/price credibility rests with the Offeror. Unrealistically low costs/prices may indicate an inability to understand requirements and a high risk approach to contract performance. The Government encourages Offerors to provide additional substantiating information as necessary to demonstrate the cost realism of its proposed costs. Nevertheless, as with any substantiating cost data, merely providing the substantiating data, without sufficient analysis and explanation of the relevance and reliability of that data in the Cost Narrative, it alone will not be sufficient to demonstrate cost realism. The Cost Narrative must clearly explain the reliability of all of the substantiating cost information provided and its relevance to the Offerors cost analysis. Providing substantiating cost information, without demonstrating its relevance and reliability, may indicate that the Offeror lacks an understanding of the costs involved in performing the solicitation’s requirements, which would indicate performance risks.

Cost/Price Proposal. The Offeror shall prepare and submit a detailed cost/price proposal with supporting information for each cost element consistent with Offeror's disclosed estimating system practicesthe total effort to be conducted. The breakdown should include such elements as direct labor, materials, travel cost/price proposal shall be in sufficient detail to ensure that the proposed cost/price is realistic to complete the effort and indirect costsa clear determination can be made regarding price/cost reasonableness. The Government’s intent is to award an Indefinite Delivery Indefinite Quantity (IDIQ) contract to provide for an ordering vehicle upon which to issue Cost Plus Fixed Fee and Firm Fixed Price task/delivery orders. Section L.1.1 of this Instructions to Offerors will assist the Offeror in providing the Government the cost/price information required in order to evaluate the proposal.  The Offeror is responsible for providing adequate evidence to prove credibility of proposed costs/prices. The Offeror’s proposal shall provide exhibits as necessary be submitted with any and all information reasonably required to substantiate each direct labor rate explain the estimating process, including the judgmental factors applied and indirect cost elementthe mathematical or other methods used in the formulation of the proposed price, including those used in projecting from known data; and the nature and amount of any contingencies included in the proposed price. For any rates proposed that are not DCAA reviewed/approvedAdditionally, the Offeror shall provide complete documentation and the rationale for their use at time of proposal submission. The Offeror shall use the cost proposal spreadsheet format attached to this RFP, Attachment J-4, for the excel version of the submitted cost proposal. Each subcontractor any other general or specific information that may submit their own proposal utilizing the RFP Attachment J-4 template if the total proposed costs exceed the certified cost or pricing threshold (currently $2,000,000). Those subcontractors proposing $2,000,000+ may submit their complete, unsanitized proposal directly to the Government via electronic means only to ▇▇▇▇▇.▇▇▇▇▇▇▇▇▇▇@▇▇▇.▇▇▇▇.▇▇▇. If the subcontractor is submitting their unsanitized proposal directly to the Government, the prime Offeror need only to include those hours, rates, and values necessary to complete the prime Offeror’s proposal. Each prime Offeror is solely responsible for ensuring their chosen subcontractors exceeding the certified cost or pricing threshold, be beneficial in accordance with FAR 15.403-4, submit their unsanitized proposal by the proposal due date specified on the Standard Form (SF) and here in Section L. In this procurement, the Government will perform a cost realism analysis of each Offeror’s proposed costs. The burden of cost credibility rests with the Offeror to demonstrate the realism of its proposed costs; as such, the Offeror must submit substantiating cost data for every cost element it proposes (e.g., direct labor, fringe rate, overhead rate, G&A rate, subcontract costs, etc.). Providing insufficient information to substantiate the realism of an Offeror’s proposed costs may result in a cost adjustment and/or the offer may no longer be considered for award. The Offeror’s proposal should represent its best efforts to respond to the solicitation. Any inconsistency between promised performance – i.e., the technical or management proposals and the identified personnel resources – and the proposed cost/price must be explained in the proposal. For example, if the intended use of new and innovative techniques is the basis for an abnormally low estimate, the nature of these techniques and the impact on cost or price shall be explained; or, if a corporate policy decision has been made to absorb a portion of the estimated cost/price, that must be stated in the proposal. Any inconsistency, if unexplained, may raise a fundamental question of the Offeror’s understanding of the nature and scope of the work required and may adversely impact the evaluation of the Offeror’s proposalproposed prices.  The burden proposal shall consist of proof as electronic files; one in portable document format (PDF) and one in Excel Spreadsheet (with formulas). Technical information included within the Cost/Price Volume will not be evaluated or considered in the rating of technical merit. Failure to costcomply with the requirements set forth in this Solicitation/price credibility rests RFP may result in an adverse assessment of an Offeror’s proposal and reduce or eliminate its chance of being selected for award.  Disclose any known or anticipated conditions that may have significant cost impact. This type of information includes, but is not limited to, major teaming opportunities, company reorganizations or mergers, new acquisitions, labor union negotiations, and plant modernization programs.  If the proposed direct labor rates and indirect rates and factors are based on a current Forward Pricing Rate Agreement (FPRA), the Offeror shall provide a copy of the FPRA. If the proposed direct labor rates are based on something other than a FPRA, the Offeror shall provide the supporting documentation to show the proposed labor rates are realistic.  Travel – Number of trips, destinations, durations, etc.  Materials - Materials shall be specifically itemized with costs or estimated costs. Where possible, indicate purchasing method, (Competition, engineering estimate, market survey, etc.). Justification for TBD material costs should be provided along with estimates and basis for estimating projected costs.  Other Directs Costs (ODC) - Itemize ODCs, particularly any proposed items of equipment or facilities. Equipment and facilities generally shall be furnished by the Offeror. Unrealistically low costsJustifications shall be provided when Government funding for such items is sought. If applicable, provide consultant agreement(s) or other document(s) which verifies the proposed loaded daily/prices may indicate an inability to understand requirements hourly rate.  Pricing Matrix- Over and a high risk approach to contract performanceAbove Technical Tasking Directives. The Government encourages Offerors Offeror shall provide a pricing matrix for CLIN0004 containing labor categories and labor rates for any Over and Above Technical Tasking Directives. These will be issued as task orders. The fixed hourly rate per labor category for all TDD work requests under this CLIN shall be established at initial contract award by utilizing the Awardee's Forward Pricing Rate Agreement (FPRA), or if one does not exist then the current Forward Pricing Rate Recommendation (FPRR). If the Awardee has not established an FPRR or FPRA at Contract Award, rates shall be negotiated no later than 15 days prior to provide additional substantiating information as necessary to demonstrate the cost realism of its proposed costseach identified Over and Above TDD requirement. Nevertheless, as with any substantiating cost data, merely providing the substantiating data, without sufficient analysis and explanation This pricing matrix shall be provided for all five years of the relevance and reliability of that data in the Cost Narrative, it alone will not be sufficient to demonstrate cost realism. The Cost Narrative must clearly explain the reliability of all of the substantiating cost information provided and its relevance to the Offerors cost analysis. Providing substantiating cost information, without demonstrating its relevance and reliability, may indicate that the Offeror lacks an understanding of the costs involved in performing the solicitation’s requirements, which would indicate performance risksIDIQ ordering period.

Cost/Price Proposal. There is no page limitation for this section of the proposal. (a) The Offeror offeror shall insert the proposed price of each item and each stepladder identified in Section B. (b) For each CLIN in section B, the offeror shall include a Consolidated Bill of Material (CBOM) of individual material and services, to include the basis for pricing. The offeror’s consolidated summary shall include all labor required, raw materials, parts, components, assemblies, subcontracts and services to be produced or performed by others, identifying as a minimum the item, source, quantity, and price. (c) The offeror shall submit a cost/price proposal with supporting information inclusive of all calculations and a completed cost summary sheet in Microsoft Excel file format for each cost element consistent with Offeror's disclosed estimating system practicesCLIN. The breakdown should include such elements offeror shall propose all pricing, including supporting spreadsheets and backup in terms of US dollars as this is how the contract pricing will be awarded. The offeror shall trace cost data from the supporting data and calculations to contractor format cost summary sheet showing all summary costs. The offeror shall supply the most currently available rates for direct labor, materialsoverhead, travel general and indirect costsadministrative expense, and any other factors used in developing the proposal. The Offeror offeror shall provide exhibits as necessary submit all information reasonably required to substantiate each explain the estimating process and basis of the proposed rates and factors, including: (1) Direct Labor Costs: (A) Direct Labor Rates. Provide full justification for all proposed direct labor rates (unburdened) for any personnel involved with the production of the items required by this solicitation, including: (i) Proof of the current actual hourly direct labor rate for each actual person proposed and indirect cost elementidentify the date as of which the actual direct labor rate is current. For If proposed direct labor rates vary from actual direct labor rates of the personnel proposed, explain the basis for those rates; (ii) The offeror must specify if the proposed direct labor rates are based on Forward Pricing Rate Recommendations, Forward Pricing Rate Agreements, Provisional Billing Rates, or any rates proposed that are not other DCMA or DCAA reviewed/approvedapproved rates; and must provide documentation to support; including DCAA/DCMA audit materials, projections, or calculations that support the rates, or any other relevant substantiating information. (iii) The judgmental factors applied and the mathematical or other methods used in the estimate; (iv) Any contingencies used by the offeror in the proposal; and (v) Support for any proposed escalation with convincing rationale; factual data (including actual direct labor rates for at least three years) and complete supporting data and rationale for out-year escalation projections. In the absence of convincing rationale, the Offeror shall provide complete documentation and the rationale for their use at time of proposal submission. The Offeror shall Government will use the cost proposal spreadsheet format attached current Global Insight Rate (GIR) recommendation in evaluating the proposal. (B) Labor Hours and Categories. Provide a detailed breakdown of the labor hours for any personnel involved with the production of the items required by this solicitation, including the personnel’s corresponding labor categories. Labor categories referenced must be mapped to this RFP, Attachment J-4, the Naval Undersea Warfare Center’s (NUWCDIVNPT’s) labor categories for the excel version purposes of the submitted cost proposal. Each subcontractor may submit their own proposal utilizing the RFP Attachment J-4 template if the total proposed costs exceed the certified cost or pricing threshold evaluation (currently $2,000,000). Those subcontractors proposing $2,000,000+ may submit their complete, unsanitized proposal directly to the Government via electronic means only to see ▇▇▇▇://▇▇▇.▇▇▇▇▇▇▇▇▇▇@▇▇▇.▇▇▇▇.▇▇▇. If the subcontractor is submitting their unsanitized /home/WarfareCenters/nuwcnewport/partnerships (2) Indirect Costs: The proposal directly to the Governmentshall provide data on all indirect rates (i.e., the prime Offeror need only to include those hoursoverhead, ratesgeneral and administrative, and values necessary to complete the prime Offeror’s proposal. Each prime Offeror is solely responsible for ensuring their chosen subcontractors exceeding the certified cost or pricing threshold, in accordance with FAR 15.403-4, submit their unsanitized proposal by the proposal due date specified on the Standard Form (SF) and here in Section L. In this procurement, the Government will perform a cost realism analysis of each Offeror’s proposed costs. The burden of cost credibility rests with the Offeror to demonstrate the realism of its proposed costs; as such, the Offeror must submit substantiating cost data for every cost element it proposes (e.g., direct labor, fringe rate, overhead rate, G&A rate, subcontract costsmaterial handling, etc.). Providing insufficient information to substantiate ) proposed on labor and parts/material, if applicable, including beginning and end dates of the realism of an Offeror’s proposed costs may result in a cost adjustment and/or period covered by the offer may no longer be considered for awardrate(s) and composite rate calculations, if any. The Offeror’s proposal should represent its best efforts bases to respond to which the solicitationrates are applied shall be clearly identified. Any inconsistency between promised performance – i.e.In addition, the technical offeror shall submit with its proposal any supporting information including DCAA/DCMA audit materials, projections, or management proposals calculations that support the indirect rates, or any other relevant substantiating information. (3) Purchased Parts and Raw Material: Provide a parts and material breakdown that is supported by a Bill of Materials (BOM) including the identified personnel resources – types and quantities of parts and material. The offeror shall supply quotes or invoices for all items called out in the BOM including competitive quotes received or recent non- competitive quotes or invoices for the same item(s) to support the proposed cost/price must be explained in the proposal. For example, if the intended use of new and innovative techniques is the basis for an abnormally low estimate, the nature of these techniques and the impact on cost or price shall be explained; or, if a corporate policy decision has been made to absorb a portion of the estimated cost/price, that must be stated in the proposal. Any inconsistency, if unexplained, may raise a fundamental question of the Offeror’s understanding of the nature and scope of the work required and may adversely impact the evaluation of the Offeror’s proposal. The burden of proof as to cost/price credibility rests with the Offeror. Unrealistically low costs/prices may indicate an inability to understand requirements and a high risk approach to contract performance. The Government encourages Offerors to provide additional substantiating information as necessary to demonstrate the cost realism of its proposed costs. Nevertheless, as with any substantiating cost data, merely providing the substantiating data, without sufficient analysis and explanation of the relevance and reliability of that data in the Cost Narrative, it alone will not be sufficient to demonstrate cost realism. The Cost Narrative must clearly explain the reliability of all of the substantiating cost information provided and its relevance to the Offerors cost analysis. Providing substantiating cost information, without demonstrating its relevance and reliability, may indicate that the Offeror lacks an understanding of the costs involved in performing the solicitation’s requirements, which would indicate performance risksprice(s).