1. OCCUPATIONAL MEDICINE AND OCCUPATIONAL HEALTH CONTRACT(OMOHC) COST VOLUME INSTRUCTIONS Joe Campbell (BD) February 16, 2005

2. Agenda SEB Pricing Process Cost Realism Probable Cost Adjustments Common Cost Volume Errors Completion Form Templates LOE Templates

3. 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

4. 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

5. 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

6. 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

7. Completion Form Templates

8. TRST FTEs DIRECT LABOR $ DIRECT LABOR $ DIRECT LABOR $ RATES PRIME LPT & OPT SUB 1 LPT & OPT SUB 2 LPT & OPT OHT GAT PRIME PCST SUB 1 SCST SUB 2 SCST TOTALSUBCONTRACT $TOTALSUBCONTRACT $ TOTAL COST FTEs MST

9. LOE Templates

10. POTENTIAL PROPRIETARY INFORMATION LOE RATES DEVELOPMENT TEMPLATE CONTRACT SPECIFIC (prime) LOE RATES DEVELOPMENT TEMPLATE CONTRACT SPECIFIC (MAJOR SUB) LOE RATES DEVELOPMENT TEMPLATE CONTRACT SPECIFIC (MAJOR SUB) LOE PRIME BURDENS TEMPLATE LOE TEAM TEMPLATE SFBR FBR LOE PRICING TEMPLATE