1. 1 Welcome to the Johnson Space Center Integrated Mission Operations Contract II (IMOC II) Cost and Pricing Preproposal WebEx August 14, 2013

2. 2 Agenda TopicPresenterTitle OrientationRosalie CarpentierContracting Officer Cost/Price OverviewRosa ArevaloPricing Analyst

3. 3 Orientation Rosalie Carpentier Contracting Officer

4. 4 These slides are not to be interpreted as a comprehensive description of the requirements in the Draft Request for Proposal (RFP). To the extent there are any inconsistencies between this briefing and any future RFP, the RFP will govern. Disclaimer

5. 5 Purpose of the Cost and Pricing Preproposal WebEx The purpose of this Preproposal WebEx 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 Draft Request for Proposal (DRFP) at provision L.18  Official responses to written questions received by the Contracting Officer will be posted to the Federal Business Opportunities (FedBizOpps) website, the NASA Acquisition Internet Service (NAIS) Web Portal, and the IMOC II procurement website

6. 6 IMOC II Source Selection Authority and Acquisition Team Members

7. 7 Points of Contact  Contracting Officer: Kathryn McLaurin jsc-imoc-ii@mail.nasa.gov 281-792-7859  Contracting Officer: Rosalie Carpentier jsc-imoc-ii@mail.nasa.gov 281-792-7856  IMOC II web address: http://procurement.jsc.nasa.gov/imocII/ Questions may be submitted by: Clicking on the “Anonymous Questions to the Contracting Officer and Feedback” link to submit an anonymous question Emailing kathryn.mclaurin@nasa.gov and jsc-imoc-ii@mail.nasa.govkathryn.mclaurin@nasa.govjsc-imoc-ii@mail.nasa.gov

8. 8 Ombudsman  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: Perri Fox/AC 2101 NASA Parkway Houston, TX 77058 Phone: (281) 483-3157 Email: perri.e.fox@nasa.gov The agency listing of Ombudsman for Acquisitions is located at http://prod.nais.nasa.gov/pub/pub_library/Omb.html

9. 9 Johnson Space Center RFP Pricing WebEX Cost/Price Overview Rosa Arevalo Pricing Analyst

10. 10 Agenda SEB Pricing Process Government Resource Estimate (GRE) Workbook Templates Overview –IDIQ Cost Template Workbook IDIQ Process Flowchart –Technical Workbook Common Cost Volume Errors Questions?

11. 11 The SEB Pricing Process What does the SEB do with your cost/price proposal: –May request a DCAA audit of all prime and major subcontractor proposals (Major Subcontractor – estimated annual contract value of $5M or more) Cognizant Federal Agency and Audit Office Template (Section L) requested with the Past Performance Volume (October 25, 2013) and Cost/Price Volume (due on November 12, 2013)

12. 12 The SEB Pricing Process (Continued) –Read all narrative portions of Cost/Price Volume –Validate all Offerors’ Excel models –Integrate pricing models of prime and major subs –Make probable cost adjustments/cost realism (only if necessary) Error Corrections/Reconciliations Labor Rates Adjustments Indirect Rates Adjustments Technical/Mgnt Evaluation (Labor/Non-Labor Resources) DCAA/DCMA input, as applicable

13. 13 The SEB Pricing Process (Continued) SOME EXAMPLES: Error Corrections/Reconciliations  Correct for math, linking or formula errors  Use Subcontractor Fully Burdened Rates (SFBRs) from Sub’s cost templates if Prime’s proposed SFBRs differ from the Sub’s SFBR Labor Rates Adjustments  Incumbent Labor Rates  Use average composite labor rates available to NASA for current effort (prime and all subcontractors), only when an Offeror proposes to hire incumbents and pay their prevailing wages  An incumbent is defined as the “current person performing same or similar function on current contract”  Adjustment based on Offeror’s proposed percentage (%) of Incumbents at their current Direct Labor (DL) rates

14. 14 The SEB Pricing Process (Continued) SOME EXAMPLES: Direct Labor Rates Adjustment  Use latest Department of Labor (DOL) wage determination for non-exempt labor categories, other current labor market surveys and indices Indirect Rates Adjustment  Use current audit reports, forward pricing indirect rates recommendations from DCMA, etc Technical/Management Evaluation [Labor and Non-Labor Resources (NLR) Adjustments)]  Based on all technical or management weaknesses related to resources (FTEs/Skill Mix or NLRs)

15. 15 The SEB Pricing Process (Continued) SOME EXAMPLES: DCAA/DCMA input, as applicable  DCAA audit report of Offerors’ cost proposals, if audits are requested  DCMA rates information, such as latest incurred cost audits, billing rates, etc 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

16. 16 Government Resource Estimate (GRE) What is the GRE? –Government’s best estimate of resources (FTE and skill mix) and Non-Labor Resources (NLR) that may be required to perform all the Task Order (TO) requirements –Grass roots estimate, not budgetary GRE are provided to Offerors (Section L, Attach L-5) to assist in scoping the management and non-technical administrative support requirements of the contract –Labor and Non-Labor GRE for all TOs are provided for Contract Year 1 –Cumulative Labor FTEs by Skill Mix for CY 1 The GRE is not intended to influence the Offeror’s proposed estimates. Offerors shall develop their own estimates that are: –Consistent with Offeror’s Management and Technical Approach

17. 17 Workbook Templates IDIQ Cost Workbook (Section L, Attach L-10) – *IDIQ Rates Development – Contractor Specific Template (ICST) – **Prime Burdens Template (PBT) – **IDIQ Rates Development Template - Team (ITT) – **Task Order Pricing Template (TOPT) – **IDIQ Summary Cost Template (ISCT) – **Subcontractor Pricing Template (SPT) – **Phase-in Template (PIT) *Required of Prime and all Subcontractors with annual contract value of $2M or more (inclusive of Major Subcontractors) **Required of Prime Only

18. 18 Workbook Templates IDIQ Cost Workbook Continued: – ^Overhead Template (OHT) – ^G&A Template (GAT) – ^Cognizant Federal Agency and Audit Office Template (CFAOT) – ^Total Compensation Templates TC(a) and TC(b) – *Total Compensation Templates TC(c), TC(d), TC(e) ^Required of Prime and each Major Subcontractor with annual contract value of $5M or more * Required of Prime and all Subcontractors with annual contract value of $2M or more (inclusive of Major Subcontractors)

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

20. Workbook Templates  *Technical Workbook Templates (Section L, Attach L-4) required for TO-DA-1; TO-DI-1; TO-DM-1 TO-DO-1 and TO-DX-1 listed in Section L, Table L-3a: IDIQ Task Orders Technical Resources Summary Template (TRST) Technical Resources Template (TRT) * Required of Prime Only (Prime and all Subs’ Labor and Non-Labor Resources Combined) 20

21. 21 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 cost 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

22. 22 Lack of consistency within the entire proposal: –Mission Suitability »Technical »Management –Cost Common Cost Volume Errors (Continued)

23. Cost/Price Overview Questions? 23