Welcome to the Johnson Space Center

International Space Station Russian Language and Logistics Services (RLLS)

Cost and Pricing Pre-Proposal Conference

March 6, 20121:30 PM – 2:30 PM

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Agenda

Time Topic Presenter Title

1:35 PM Orientation L. Procknow Contract Specialist

1:45 PM Cost/Pricing Overview W. Khan Cost/Price Analyst

2:20 PM RLLS Schedule and Closing Remarks

L. Procknow Contract Specialist

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Orientation

Lara N. ProcknowContract Specialist

• These slides are not to be interpreted as a comprehensive description of the requirements in the Request for Proposal (RFP).

• If there is any discrepancy between the RFP and this written and oral presentation, the RFP takes precedence.

Disclaimer(Orientation)

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Purpose of Cost and Pricing Pre-Proposal Conference(Orientation)

• The primary purpose of this Pre-Proposal Conference is to help industry understand the Government’s cost and price proposal requirements.

• Questions: Any response to verbal questions during the conference shall not be

construed as an official answer Submit written questions to the Contracting Officer as described in the RFP:

- The deadline for questions regarding the RFP is March 13, 2012 Official responses to written questions received by the Contracting Officer will

be posted to the NASA Acquisition Internet Service (NAIS) Web Portal and the RLLS procurement website as amendments to the RFP

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Source Selection Authority and Source Evaluation Board (SEB) Members

(Orientation)

• Source Selection Authority – Kirk Shireman, International Space Station Deputy Program

Manager

• SEB Voting Members• Mark Thiessen, Chair• Lara Procknow• Mike Boggs

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Points of Contact(Orientation)

• Contract Specialist:– Lara N. Procknow at Lara.n.procknow@nasa.gov

• Contracting Officer:– Julie K. Karr at Julie.k.karr@nasa.gov

• RLLS web address: – http://procurement.jsc.nasa.gov/rlls/– The “Anonymous Questions to the Contracting Officer” link to submit a question

has been deactivated. All comments and questions should be directed to the Contracting Officer in accordance with Provision L.12, “Communications Regarding This Solicitation.” A subsequent amendment will be issued that will delete the option in Provision L.12, “Communications Regarding This Solicitation,” allowing Offerors to submit questions through the “Anonymous Questions to the Contracting Officer” link.

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Ombudsman(Orientation)

• Ombudsman (NFS 1852.215-84): “…before consulting with an ombudsman, interested parties must first address their concerns, issues, disagreements, and/or recommendations to the Contracting Officer for resolution … If resolution cannot be made by the Contracting Officer, interested parties may contact the installation ombudsman…”

• JSC Ombudsman for Procurement Matters:

Lauri Hansen, Chief of Staff, Office of the Director Address/Phone:

Lyndon B. Johnson Space CenterMail Code: AC2101 NASA ParkwayHouston, TX 77058Phone: 281-483-2823Fax: 281-483-2200Lauri.n.hansen@nasa.gov

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Section L, Cost/Pricing Information

Wally KhanCost/Price Analyst

Cost/Price Proposal

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Agenda

• SEB Pricing Process• Government Resource Estimate (GRE)• Workbook Templates Overview

– Completion Form Workbook Templates• Completion Form Process Flowchart

– IDIQ Workbook Templates• IDIQ Process Flowchart

– Technical Workbook Templates– Other Workbook Templates

• Common Cost Volume Errors

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The SEB Pricing Process• What does the SEB do with your cost/price proposal:

– Request a DCAA audit for all prime and major subcontractor proposals(Major Subcontractor - annual contract value at or above $1M)

• DCAA Cognizant Audit Office Template (Section L) is requested to be delivered early with the Past Performance Volume (April 16, 2012) and with the Cost/Price Volume (April 23, 2012)

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The SEB Pricing Process – Read all narrative portions of Cost/Price Volume– Validate all Offerors’ Excel models– Integrate pricing models of prime and major subs – Test models– Make probable cost adjustments/cost realism (only if

necessary)

• Error Corrections/Reconciliations• Incumbent Labor Rates• Direct Labor and Indirect Rates Adjustment• Technical Evaluation (Labor/Non-Labor Resources)• DCAA Audit Results

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The SEB Pricing Process

• Develop Pricing Charts for Presentation to the Source Evaluation Board (SEB) & the Source Selection Authority (SSA)

– Proposed Cost vs. Probable Cost and Delta– Rationale for Probable Cost Adjustments

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Government Resource Estimate (GRE)

• What is the GRE?– Government’s best estimate of resources (WYE) to perform

the current SOW– Grass roots estimate, not budgetary

• GRE is provided to Offerors in Section L– Completion Form GRE is provided for Contract Year 1 by

Statement of Work (SOW).– Non-labor Resources GRE is also provided for

Contract Year 1.

• The GRE is not intended to influence the Offeror’s proposed estimates nor be a plug number. Offerors shall develop their own estimates that are:– Consistent with Offeror’s Management Approach– Consistent with Offeror’s Technical Approach

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Workbook Templates

• Completion Form Workbook Templates*

– Labor Pricing Template (LPT)– Overtime Pricing Template (OPT)– Major Subcontractor Cost Summary Template (MSCST)– Prime Cost Summary Template (PCST)

*Not required of Minor Subcontractors(Annual contract value below $1M)

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Completion Form Flowchart

• TRST• WYEs

• DIRECT• LABOR

• $

• DIRECT• LABOR

• $

• DIRECT• LABOR

• $

• RATES

• RATES

• RATES

• PRIME

• LPT & OPT

• Major SUB 1

• LPT & OPT

• Major SUB 2

• LPT & OPT

• O/H

• O/H

• O/H

• G&A

• G&A

• G&A

• PRIME

• PCST

• SUB 1

• MSCST

• SUB 2

• MSCST

• TOTAL SUB

• CONTRACT

• $

• TOTAL COST

• WYEs

• WYEs

• MSPT

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• IDIQ Workbook Templates

– IDIQ Rates Development Template – Contractor Specific (ICST)*– Prime Burdens Template (PBT)**– IDIQ Rates Development - Team Template (ITT)**– IDIQ Summary Cost Template (ISCT)**

*Required of Prime and Each Major Subcontractor **Required of Prime Only

Workbook Templates

IDIQ Flowchart

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IDIQ RATES DEVELOPMENT

TEMPLATECONTRACTOR

SPECIFIC(PRIME) (ICST)

IDIQ RATES DEVELOPMENT

TEMPLATECONTRACTOR

SPECIFIC(MAJOR SUB 1)

(ICST)

IDIQ RATES DEVELOPMENT

TEMPLATECONTRACTOR

SPECIFIC(MAJOR SUB 2)

(ICST)

IDIQPRIME BURDENS

TEMPLATE(PBT)

IDIQTEAM

TEMPLATE(ITT)

SFBR**

SFBR*

FBR*IDIQ SUMMARY

COST TEMPLATE(ISCT)

*FBR - Fully Burdened Rates

**SFBR - Subcontractor Fully Burdened Rates

Workbook Templates

Technical Workbook Templates*

• Technical Resources Summary Template (TRST) Completion Form

• Technical Resources Template (TRT) Completion Form

*Not required of Minor Subcontractors (Annual contract value below $1M)

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• Other Workbook Templates– Minor Subcontractor Pricing Template (MSPT) **– Conversion Factor Template (CFT) **– Summary Pricing Template (SPT) **– Phase-in Template (PIT) **– Overhead Template (OHT)*– G&A Template (GAT)*– Cognizant Audit Office Template (CAOT)*– Total Compensation Templates (TC(a), TC(b), TC(c), TC(d), TC(e)*

*Required of Prime and Each Major Subcontractor **Required of Prime Only

Workbook Templates

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Common Cost Volume Errors

• Proposals with omissions:– Lack of detail on Overhead, G&A and Other Indirect Rates– Lack of narrative supporting rationale

• Logic Issues– Inconsistent content within the proposal

• Failure to follow template instructions:– Using hard numbers instead of formulas where

appropriate – Placing Fully Burdened Labor Rates where Direct Labor

Rates are Required

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• Lack of reconciliation between different areas of the proposal– Technical

• including Specific Technical Understanding and Resources section

– Management

– Small Business Subcontracting Plan

– Cost

Common Cost Volume Errors (Cont’d)

Questions?

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RLLS Schedule and Closing Remarks

Lara N. Procknow

Cost and Pricing Pre-Proposal Conference Remarks

• These slides are not to be interpreted as a comprehensive description of the requirements in the Request for Proposal (RFP).

• Information provided today is to assist in the development of proposals.

• Please continue to monitor the NASA Acquisition Internet Service (NAIS) and RLLS Website for information related to this procurement.

• Official responses to written (e-mailed) questions will be posted to the RLLS Website and NAIS via a future synopsis.

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Procurement Schedule*(Subject to Change)

Milestone Date

Pre-Solicitation Synopsis July 29, 2011

Issue Request for Proposal February 21, 2012

Cost and Pricing Pre-Proposal Conference March 6, 2012

Industry Questions on RFP Due March 13, 2012

Proposals Due April 23, 2012

Contract Award June 29, 2012

*Any changes to the schedule will be posted to the NASA Acquisition Internet Service (NAIS) Web Portal and the RLLS procurement website

Questions?• Please let us know if you have any questions regarding the

information provided today

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Thank you for attending the Johnson Space Center

Cost and Pricing Pre-Proposal Conference for RLLS

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