1. Welcome to the Johnson Space Center Center Safety and Fire Operations (CSFO) Contract Cost and Pricing WebEx November 13, 2013 9:00 a.m. - 10:30 a.m. 1

2. 2 Agenda TopicPresenterTitle OrientationScott A. StephensContracting Officer Cost/Pricing OverviewMonica F. CraftCost/Price Analyst

3. 3 Orientation Scott A. Stephens Contracting Officer

4. 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

5. 5 Purpose of the Cost and Pricing WebEx The purpose of this Cost and Pricing 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 Request for Proposal (RFP): The deadline for questions regarding the RFP is 5:00 p.m. CST on Tuesday, November 19, 2013  Official responses to written questions received by the Contracting Officer will be posted to the NASA Acquisition Internet Service (NAIS) Web Portal and the CSFO procurement website

6. 6 Source Selection Authority − Jose C. Garcia, Deputy Director, Office of Procurement, Johnson Space Center Streamlined Procurement Team (SLPT) NS/ Kenneth I. Poast, Chair JM/ Stephen L. Candler NS/ Daniel L. Clem SD/ Penney M. Stanch BR/ Scott A. Stephens Source Selection Authority and Acquisition Team Members

7. 7  Contracting Officer: Scott A. Stephens scott.a.stephens@nasa.gov (281) 244-5621  CSFO Web Address: http://procurement.jsc.nasa.gov/csfo/ − Click on the “Feedback - Anonymous Questions to Contracting Officer” link to submit a question Point of Contact

8. 8  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: NASA JSC Ombudsman/AC 2101 NASA Parkway Houston, TX 77058 Phone: (281) 792-9318 http://ombuds.jsc.nasa.gov/ Ombudsman

9. 9  NASA Agency Ombudsman: NASA Headquarters Mail Code: LP011 Washington, DC 20546-0001 Phone: (202) 358-0445 Email: agency-procurementombudsman@nasa.gov Ombudsman, Cont.

10. 10 Cost/Pricing Overview Monica F. Craft Cost/Price Analyst

11. 11 Cost/Pricing Overview Streamlined Procurement Team (SLPT) Pricing Process Government Resource Estimate (GRE) Workbook Templates Overview –Technical Workbook Templates –IDIQ Workbook Templates IDIQ Process Flowchart –Other Workbook Templates Common Cost Volume Errors

12. 12 The SLPT Pricing Process What does the SLPT do with your cost/price proposal: –Prime and major subcontractor offerors proposals will be reviewed to determine adequacy of accounting system. (Major Subcontractor - annual contract value at or above $500,000) DCAA Cognizant Audit Office Template (Section L) Federal Acquisition Regulations(FAR) 16.301-3 Cost Reimbursable Contracts

13. 13 The SLPT Pricing Process (Continued) –Read all narrative portions of Cost/Price Volume –Validate all Offerors’ Excel models –Integrate pricing models of prime and major subs –Test models –Fixed Price Task Orders will not have resource adjustments (CSFO-RFP-1) –For Technically Acceptable proposals-Cost Reimbursement Task Orders (CSFO-RFP-2 and 3) will not result in technical resource adjustments to their most probable cost (Adjustments may be made for error corrections, incumbent labor rates, indirect rates adjustments, DCAA input, when applicable)

14. –For Potentially Acceptable proposals - Cost Reimbursement Task Orders (CSFO-RFP-2 and 3) may have technical resource adjustments to their most probable cost if applicable (adjustments may be made for error corrections/reconciliations, incumbent labor rates, indirect rates adjustments, technical/ management evaluation, non-labor resources, DCAA/DCMA input, as applicable) 14 The SLPT Pricing Process (Continued)

15. 15 SOME EXAMPLES: Error Corrections/Reconciliations  Correct for math, linking, or formula errors  Use Subcontractor Fully Burdened Rates (FBRs) from Sub’s cost templates if Prime’s proposed FBRs differ from the Subs 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 functions on current contract.” Adjustments based on Offeror’s proposed percentage (%) of incumbents at their current Direct Labor Rates (DL) rates. The SLPT Pricing Process (Continued)

16. 16 SOME EXAMPLES : Indirect Rates Adjustments  Use current audit reports; forward pricing indirect rates recommendations from DCMA, etc. DCAA/DCMA input, as applicable  DCAA audit report of Offeror’s accounting system  DCMA rates information, such as latest incurred cost audit, billing rates, etc. Develop Pricing Charts for Presentation to the Streamlined Procurement Team (SLPT) & the Source Selection Authority (SSA)  Proposed Cost/Price vs. Probable Cost/Price and Delta  Rationale for Probable Cost Adjustments, if any The SLPT Pricing Process (Continued)

17. 17 Government Resource Estimate (GRE) What is the GRE? –Government’s best estimate of resources (Work Year Equivalent and skill mix) and Non-Labor Resources (NLR) that may be required to perform all the Task Order (TO) requirements –Bottoms up estimate, not based on budget GRE has been provided to Offerors (Section L, Attach L-4) to assist in scoping the management and non-technical administrative support requirements of the contract –Cumulative Labor WYEs by Skill Mix for Calendar Year (CY) 1 –Non-Labor Resources for all TOs provided 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 Approach and Technical Approach

18. Workbook Templates  Technical Workbook Templates (Section L, Attachment L-2) is required* for CSFO-RFP- 1,CSFO-RFP-2 and CSFO-RFP-3 Technical Resources Summary Template (TRST) Technical Resources Template (TRT) * Required of Prime Only (Prime and all Subs Labor Resources combined) 18

19. 19 IDIQ Cost Workbook (Section L, Attachment L-3) –Fully Burdened Rates Template – (FBR)** –IDIQ Summary Cost Template - (ISCT)*** Task Order CSFO-RFP-1 Task Order CSFO-RFP-2 and CSFO-RFP-3 –IDIQ Task Order Pricing Template -(TOPT)*** Task Order Price Template CSFO-RFP-1,CSFO-RFP-2 and CSFO-RFP-3 ** Required of Prime and Each Major Subcontractor ***Required of Prime Only Workbook Templates

20. IDIQ Process Flowchart 20

21. 21 Other Workbook –Subcontractor Arrangement Information Template (SAI)*** –Minor Subcontractor Pricing Template (MSPT)*** –Cognizant Audit Office Template (CAOT)** –Phase-in Template (PIT) # –Overhead Template (OHT)** –G&A Template (GAT)** –Total Compensation Templates (TC(a), TC(b), TC(c), TC(d), TC(e)** ** Required of Prime and Each Major Subcontractor with annual contract value of $500K or more *** Required of Prime Only # Phase-In is Fixed Price Workbook Templates

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 ( Continued )

24. Questions and Answers 24

25. Thank you for attending the Cost and Pricing WebEx for the Johnson Space Center Center Safety and Fire Operations (CSFO) Contract 25