1. Welcome to the Johnson Space Center International Space Station Mission and Program Integration (MAPI) Cost and Pricing Pre-Proposal Conference February 29, 2012 1:00 PM – 2:00 PM

2. Agenda 2 TopicPresenterTitle OrientationJ. KarrContracting Officer Cost/Pricing OverviewM. CraftCost/Price Analyst

3. 3 Orientation Julie Karr Contracting Officer

4. 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) 4

5. Purpose of 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 2, 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 MAPI procurement website as amendments to the RFP 5

6. Source Selection Authority and Source Evaluation Board (SEB) Members (Orientation) Source Selection Authority – Mike Suffredini, International Space Station Program Manager SEB Voting Members Rickey Cissom, Chair Julie Karr, Contracting Officer Gary Johnson Elizabeth Cooke Alan Guerra Darryl Gaines George Norris 6

7. Points of Contact (Orientation) Contracting Officer: – Julie K. Karr – Julie.k.karr@nasa.gov Julie.k.karr@nasa.gov MAPI web address: – http://procurement.jsc.nasa.gov/mapi/ http://procurement.jsc.nasa.gov/mapi/ – Click on the “Anonymous Questions to Contract Specialist” link to submit a question. 7

8. 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 …” Installation Ombudsman: Lauri Hansen, Chief of Staff, Office of the Director Address/Phone: Lyndon B. Johnson Space Center Mail Code: AC 2101 NASA Parkway Houston, TX 77058 Phone: 281-483-2823 Fax: 281-483-2200 Lauri.n.hansen@nasa.gov 8

9. 9 Section L, Cost/Pricing Information Monica Craft Cost/Price Analyst Cost/Price Proposal

10. 10 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

11. 11 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 $5M) DCAA Cognizant Audit Office Template (Section L) should be delivered with the Past Performance Volume (March 26, 2012) and Cost Volume (April 09, 2012)

12. 12 The SEB Pricing Process – Read all narrative portions of Cost 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 Direct Labor Rates, if needed (e.g. ensure probable cost is consistent with a proposal to hire incumbent personnel at current wages) Direct Labor and Indirect Rates Adjustment Technical Evaluation (Labor/Non-Labor Resources) Information from DCMA or DCAA

13. 13 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

14. 14 Government Resource Estimate (GRE) What is the GRE? – Government’s best estimate of resources (WYE and skill mix) to perform the current SOW – Grass roots estimate, not budgetary

15. 15 Best Estimated Quantity (BEQ) What is the BEQ? – The BEQ is the Government’s best estimate for the quantity of IDIQ (WYE and skill mix) that may be ordered on a task order. – For evaluation purposes of proposed IDIQ rates, the labor resources are provided for the first year by Standard Labor Category (SLC) The labor resources provided are straight-lined for the 8 years of the base contract and options The IDIQ Travel Cost of $250,000 is straight-lined for the 8 years of the base contract and options

16. 16 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 $5M)

17. 17 Completion Form Flowchart TRST WYEs DIRECT LABOR $ DIRECT LABOR $ DIRECT LABOR $ RATES PRIME LPT & OPT Major SUB 1 LPT & OPT Major SUB 2 LPT & OPT O/H G&A PRIME PCST SUB 1 MSCST SUB 2 MSCST TOTAL SUBCONTRACT $TOTAL SUBCONTRACT $ TOTAL COST WYEs MSPT

18. 18 Workbook Templates IDIQ Workbook Templates – *IDIQ Rates Development Template – Contractor Specific (ICST) – **Prime Burdens Template (PBT) – **IDIQ Rates Development - Team Template (ITT) – **IDIQ Task Order Pricing Template (TOPT-BEQ) *Required of Prime and Each Major Subcontractor **Required of Prime Only

19. IDIQ Flowchart 19 * FBR - Fully Burdened Rates **SFBR - Subcontractor Fully Burdened Rates

20. 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 $5M) 20

21. 21 Workbook Templates 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) – **Subcontractor Arrangement Information Template (SAIT) – *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

22. 22 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

23. 23 Lack of reconciliation between different areas of the proposal – Technical – Management – Cost Common Cost Volume Errors (Cont’d)

24. Questions? 24

25. 25 MAPI Schedule and Closing Remarks Julie Karr

26. Pre-Proposal Conference Remarks Topics covered today are not inclusive and potential Offerors should not place any added emphasis based on the content of this briefing. Information provided today is to assist in the development of proposals. Please continue to monitor the NASA Acquisition Internet Service (NAIS) and MAPI Website for information related to this procurement. Official responses to written (e-mailed) questions will be posted to the MAPI Website and NAIS via a future synopsis. 26

27. Procurement Schedule (Subject to Change – Changes will be posted via NAIS) 27 MilestoneDate Pre-Solicitation Synopsis July 29, 2011 Issue Request for Proposal February 8, 2012 Pre-Proposal Conference February 29, 2012 Industry Comments on RFP DueMarch 2, 2012 Past Performance Volume RequestedMarch 26, 2012 Proposals DueApril 9, 2012 Contract AwardJuly 30, 2012

28. Questions? Please let us know if you have any questions regarding the information provided today 28

29. Thank you for attending the Johnson Space Center Pre-Proposal Conference for MAPI