Welcome HUMAN RESOURCES INTEGRATED PROFESSIONAL SERVICES CONTRACT (HRIPS) Price Factor Overview Herb Rocha Cost/Price Analyst October 30, 2015

Agenda  SLPT Pricing Process  Specified Resources  IDIQ Process Flowchart  Workbook Templates Overview  Common Price Volume Errors 2

The SLPT Pricing Process What does the SLPT do with your price proposal?  May request a DCAA audit for all prime and major subcontractor proposals  Read all narrative portions of Price Volume  Validate all offerors’ excel models  Integrate pricing models of prime and major subs  Test models  Identify risk where applicable Errors/Reconciliations – identify instances in which price may have been calculated incorrectly Labor and/or Indirect Rates 3

4 The SLPT Pricing Process (Continued) SOME EXAMPLES OF RISKS THAT COULD BE IDENTIFED BY THE SLPT: Error/Reconciliations  Identify math, linking or formula errors  Prime’s proposed major subcontractor FBRs do no match major subcontractor proposed FBRs

The SLPT Pricing Process (Continued) Example:  Incumbent Labor Rates  An incumbent is defined as the “current person performing same or similar function on current contract.”  Scenario 1: Offeror proposes to hire all incumbents and pay their prevailing wages, however proposal doesn’t reflect offeror’s intent. (Average composite labor rates will be available in technical library)  Scenario 2: Offeror’s proposed percentage of Incumbents to be paid at current wages [e.g. If Offeror is proposing to pay only 90% of the incumbents at their current wages and proposed rates don’t reflect actuals, the SLPT will identify that inconsistency to the SSA as a risk. The remaining 10% of proposed labor rate(s) will be considered if the SLPT determines rate(s) are reasonable based on current labor market data] 5

6 The SLPT Pricing Process (Continued) SOME EXAMPLES: Direct Labor Rates  Use latest Department of Labor (DOL) wage determination for non- exempt labor categories, other current labor market surveys and indices if applicable Indirect Rates  Use current audit reports, forward pricing indirect rates recommendations from DCMA, etc

7 The SLPT Pricing Process (Continued) SOME EXAMPLES: DCAA/DCMA input, as applicable  DCAA audit report of Offerors’ price proposals, if audits are requested  DCMA rates information, such as latest incurred cost audits, billing rates, etc Develop Pricing Charts for Presentation to the Streamlined Procurement Team (SLPT) & the Source Selection Authority (SSA) – Proposed Price vs Risk Assessment – Rationale for Risk Assessment

Specified Resources  What are Specified Resources? Specified Resources provided in the Excel Price Templates (TOPT-SR) Grass roots estimate, not budgetary Government’s best estimate of resources Assists in assessing the general overall scope of the statement of work All Standard Labor Categories listed in the Fully Burdened Rates Template (FBR) and Section B shall be completed by the offeror to allow for the possibility of utilizing labor categories not listed on the TOPT-SR  The Specified Resources is not intended to influence the offeror’s proposed estimates. Offerors shall develop their own estimates that are: Consistent with Management Approach Consistent with Technical Approach 8

9 IDIQ Flowchart

Workbook Templates  IDIQ Workbook Templates FBR - Fully Burdened Rates Template (P&MS) SAI – Subcontractor Arrangement Information (P) TOPT – SR - Task Order Pricing Template – Specified Resources (P) TC (a) through TC (e) - Total Compensation Templates (P&MS) (P) – Prime (MS) – Major subcontractor 10

Common Price Volume Errors  Proposals with omissions: Lack of narrative supporting rationale  Logic Issues: Inconsistent content within the price proposal  Failure to follow template instructions: Fully burdened rates in price proposal (FBR Template) do not match proposed Section B rates (Very, very common) Subcontract fully burdened rates do not reflect what was presented to the Prime offeror Fully Burdened Labor Rates placed where Straight Time Direct Labor Rates are Required Placing hard numbers instead of formulas/links where appropriate 11

 Lack of reconciliation between different areas of the proposal: Technical Management Price  Basis of any estimate needs to be explained: Specific Clear Detailed 12 Common Price Volume Errors (Cont.)

13 Questions and Answers

14 A copy of this presentation will be posted on the HRIPS website: Please visit: Thank you for attending!