OCCUPATIONAL MEDICINE AND OCCUPATIONAL HEALTH

CONTRACT(OMOHC)

COST VOLUMEINSTRUCTIONS

Joe Campbell (BD)February 16, 2005

Agenda

• SEB Pricing Process

• Cost Realism Probable Cost Adjustments

• Common Cost Volume Errors

• Completion Form Templates

• LOE Templates

The SEB Pricing Process

• What does the SEB do with your cost/price proposal:– Request a DCAA audit

• Prime offerors

• Major subcontractors

– Read all narrative portions of Cost Volume

– Validate all offeror’s Excel models

The SEB Pricing Process

– Integrate pricing models of prime and major subs

– Test model for errors

– Make probable cost adjustments/cost realism

• Only if Necessary

– Develop pricing presentation charts to SSA

• Proposed cost vs. Probable cost and Delta

• Rationale for Adjustments

• Mission Suitability Off-set

Common Cost Volume Errors

• Proposals with omissions:– Incumbent Retention Percentage

– Detail on Overhead, G&A and Other Indirect Rates

– Lack of narrative supporting rationale

• Logic Problems

– Non-incumbent who propose 100% Incumbent Retention for Program Managers and other Key Personnel

• Failure to follow template instructions:

– Loaded Labor Rates placed where Direct Labor Rates are Required

– Placing Hard Numbers Instead of links where appropriate

Common Cost Volume Errors

• Lack of reconciliation between different

areas of the proposal

– Technical

– Management

– Staffing

• Basis of any estimate needs to be explained

– Specific

– Objective

Completion Form Templates

TRSTFTEs DIRECT

LABOR$

DIRECTLABOR

$

DIRECTLABOR

$

RATES

RATES

RATES

PRIME

LPT & OPT

SUB 1

LPT & OPT

SUB 2

LPT & OPT

OHT

OHT

OHT

GAT

GAT

GAT

PRIME

PCST

SUB 1

SCST

SUB 2

SCST

TOTAL SUBCONTRACT $

TOTAL COST

FTEs

FTEs

MST

LOE Templates

POTENTIAL PROPRIETARY INFORMATION

LOE RATES DEVELOPMENT

TEMPLATECONTRACTSPECIFIC

(prime)

LOE RATES DEVELOPMENT

TEMPLATECONTRACTSPECIFIC

(MAJOR SUB)

LOE RATES DEVELOPMENT

TEMPLATECONTRACTSPECIFIC

(MAJOR SUB)

LOEPRIME BURDENS

TEMPLATE

LOETEAM

TEMPLATE

SFBR

SFBR

FBR LOEPRICING TEMPLATE