supplier proposal adequacy guidelines - pacsci emc · abb and the nre. see the next slide for an...
TRANSCRIPT
PacSci EMCSeptember 2017
Strategic Affordability AnalysisSupplier Proposal Adequacy Guidelines
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Purpose of this Guidelinebull This guideline explains the basic requirements for proposals submitted to
PSEMC when cost or pricing data are required
bull This guideline does not apply to proposals that are
bull Valued at less than the cost or pricing threshold set in FAR 15403-4bull Based on competitionbull Based on commercial pricing
bull Questions regarding these requirements should be addressed to yourPSEMC Supply Chain contact
2
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Table of Contentsbull When cost or pricing data is required the supplierrsquos proposal needs to
include the following sections
3
Required Items Page FAR Reference
Supplier Proposal Adequacy Checklist Pg 5-6 PSEMC Policy
Cover Sheet - SF1411 or equivalent Pg 7-8 FAR 15408 Table 15-2 I A
Index Pg 9-10 FAR 15408 Table 15-2 I B
Cost Element Breakdown Pg 11-12 FAR 15408 Table 15-2 I D
Summary Cost Element Breakdown Pg 13-15 FAR 15408 Table 15-2 I E
Material (Including Consolidated BOM) Pg 16-23 FAR 15408 Table 15-2 II A
Labor Pg 24-29 FAR 15408 Table 15-2 II B
ODC Pg 30 FAR 15408 Table 15-2 II D
NRE Pg 31-32 FAR 15408 Table 15-2 II
Rates Pg 33-34 FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Table of Contentsbull Summary cost element breakdowns and consolidated Bills of Material
(BOM) are the two most frequently missed items in supplier proposals
bull Additional areas of proposal support which are not applicable to most proposals
4
Required Items Page FAR Reference
Commercial Justification Pg 38-40 FAR 2101 amp FAR 15403
Change Proposal Pg 41-46 FAR 15408 Table 15-2 III B
Additional Guidance Pg 47 PSEMC Support
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklistbull PSEMC Policy requires suppliers to complete a PSEMC Supplier Proposal
Adequacy Checklist (sent with the RFP) for all proposals that exceed theCost amp Pricing Thresholdbull Additionally PSEMC request the cost element breakdown bill of material and labor
detail in Excel format
bull The purpose of this form is as followsbull To provide the supplier with a checklist to help ensure that all the supporting
documentation has been included so the proposal will be deemed adequate byPSEMC our customer and the DCAA
bull To provide PSEMC with a tool to more quickly verify where the supportingdocumentation can be found in the proposal
bull An example is provided on the next slide and under the commercialjustification section of this module
5
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
6
Proposal Pricing Instructions
Supplier Proposal Adequacy Checklist
Completion of this checklist and supporting information is required for all single source proposals that exceed the TINA threshold where no valid exception (FAR 15403-1) applies If the supplier is claiming an exemption for commercial terms only the first line on the checklist is applicable Supplier
Supplier Proposal Number
Exemption to CampP Data Commercial Item (Section 3 of Instruction)
Support Included
Located in Section Page
Pricing Proposal Coversheet or Equivalent (21 of Instruction)
Included Located in Section Page
Point of Contact (21 of Instruction) Included Located in Section Page
DCMADCAA Points of Contact (Include Name Phone Address Cage Code and E-mail Address) (21 of Instruction)
Included Located in Section Page
Cost Element Detail and Cost Element Summary (24 of Instruction)
Included Located in Section Page
Individual Bill of Material and Consolidated Bill of Material (25 of Instruction)
Included Located in Section Page
Material Basis of Estimate (251 of Instruction) and Copies of POsQuotes
Included Located in Section Page
Sub-tier Cost Analysis (if required) (251 of Instruction)
Included Located in Section Page or ECDs
Labor History (26 amp 261 of Instruction) and Basis of Estimate
Included Located in Section Page
Support for ODC (27 of Instruction) Included Located in Section Page
Support for Rates (17 and 28 of Instruction) Included Located in Section Page
Nonrecurring Engineering (NRE) (14 and 15) Use of Government Property to Include Serial Tooling andor Special Test Equipment
Included Located in Section Page
Expenditure Plan (Required to Support Cost Type Proposals or Performance Based Progress Payments)
Included Located in Section Page
Supplier By Signing below you are confirming that required cost and pricing data is part of your proposal and meets the requirements of Pacific Scientificrsquos proposal pricing instructions Sellerrsquos Representative (type or Print)
Signature
Date (MMDDYYYY)
Pacific Scientific By Signing below the supplier manager is confirming receipt of the items required for this proposal and meets the requirements of Pacific Scientificrsquos proposal pricing instructions Buyer (Type or Print)
Signature
Date (MMDDYYYY)
Supplier Manager (Type or Print)
Signature
Date (MMDDYYYY)
Proposal Pricing Instructions
Supplier Proposal Adequacy Checklist
image1jpeg
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Cover Sheetbull Include a cover sheet that includes the following information
bull Solicitation Numberbull Name and Address of offerorbull Name and Telephone number of point of contactbull Name address phone number and email for your DCMA and DCAAbull Type of contract actionbull Proposed cost profit or fee and total price ndash maximum proposal valuebull If you will require the use of government propertybull Whether your organization is subject to cost accounting standards (CAS) ndash see
details in FAR 15-408 Table 15-2 I A (8)bull The statement designated in FAR 15408 Table 15-2 I A (9)bull Date of Submissionbull Name title and signature of authorized representative
bull Most contractors use the Government Form 1411 or equivalent
bull An example is provided on the next slide
7
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Cover Sheet Example ndashReference Form DI-SUP-105F02
8
Point of Contact
Proposed Cost
Period of Performance
DCAA Contact Information
Include Statement from FAR 15408 Table 15-2 IA (9)
DCMA Contact Information
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Indexbull Include an index that references where the supporting data for your
estimates is located in the proposalbull The Index should include the following information
bull Title of information being referenced (Summary cost element breakdown materiallabor etc
bull Location in the proposal (page number or file name and page if located in a separatefiledocument)
bull An example is provided in the next slide
9
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Index ExampleProposal No HLQxxxxxDate January xx xxxx ABC Company
Index1 Cover sheet Page xx
2 Business section Page xx
21 Assumptions and Conditions Page xx
3 Pricing Page xx
31 Unit Pricing Page xx
32 Cost Element by Part Number Page xx
33 Cost Element Summary Page xx
4 Material Page xx
41 Bill of Materials by Part Number Page xx
42 Consolidated Bill of Materials Page xx
43 Purchase Orders and Quotes (File PO-QuotesPDF) Page xx
5 Labor Page xx
6 Etc Page xx
10
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Cost Element Breakdown by Line Itembull A cost element breakdown is required for each proposed line item If the
proposal covers multiple price points or multiple years a cost elementbreakdown will be required for each price point for each year
bull For example assume your proposal includes the following three line items
bull You would need to provide separate cost element breakdowns for parts ABCABB and the NRE See the next slide for an example
Slight differences due to rounding
11
Part Number Quantity Unit Price Total PricePart ABC 50 $12500 $625000Part ABB 75 $10300 $772500NRE 1 $145000Total $1542500
FAR 15408 Table 15-2 I D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Cost Element Breakdown by Line Item Example
12FAR 15408 Table 15-2 I D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summary Cost Element Breakdownbull When more than one contract line item (Part Number NRE etc) is
proposed you must provide summary total amounts covering all items foreach element of cost If the proposal covers a high mid and low point thesummary needs to only be for those points not all the differentcombinations that can result from range pricing If the proposal is formultiple years there needs to be a summary for each of the yearsbull For example if your proposal included the following
bull You would need to provide a summary by cost element that includes the totalproposed value of $1542500 See the next slide for an example showing thethree individual cost elements being combined into a summary
Slight differences due to rounding
13
Part Number Quantity Unit Price Total PricePart ABC 50 $12500 $625000Part ABB 75 $10300 $772500NRE 1 $145000Total $1542500
FAR 15408 Table 15-2 I E
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summary Cost Element Breakdown - Example
14FAR 15408 Table 15-2 I E
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summary Cost Element Breakdown - Example
15
bull If the proposal is a base year plus option years there needs to be asummary Cost Element Breakdown for each of the years at the points in theRFP requiring Cost or Pricing data
FAR 15408 Table 15-2 I E
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Include a BOM for each individual part proposed A BOM is a list of the raw
materials subassemblies etc needed to manufacture a product
bull Provide your BOMs in Excel formatbull The consolidated and individual BOMs need to identify the following for each line
itembull Part Number and descriptionbull Supplierbull Quantitybull Unit Price ndash Unit pricing on the BOM should tie to the supportbull Total Pricebull Basis for pricing (vendor quotes purchase orders)
Source of pricing (purchase order quotes etc) must be referenced in the BOM
bull PSEMC will require copies of the support (ie quotes purchase orders) for asample of the items on the BOM during the cost analysis
16FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull If attritionyield or scrap are added to your material you will need to submit
adequate basis of estimates and support as appropriate
bull There are time when your BOM may be impacted by minimum buys or NREthat is passed along from your supplier If this happens make sure this isclearly identified on the BOM and the support quotes or purchase orders
bull In addition to the individual BOMs FAR requires a consolidated BOM inyour proposal A consolidated BOM is a listing of the material needed forthe proposal A consolidated BOM combines all the materials for each ofthe parts being procured as well as assemblies services or materialassociated with NRE
17FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Individual Bills of Material Example
18
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Consolidated Bill of Material Examplebull Below is an example of a consolidated BOM This BOM was developed by
taking the three individual BOMrsquos on the previous page and combining themtogetherbull In a consolidated BOM part numbers and quantities should be combined (or
subtotaled) if they are the same parts For example the BOMs for Part Nos ABCand ABB both require the same Connector and Screw In the consolidated BOMthe requirements have been combined and reflect the total number of Connectorsand Screws that will be needed for this proposal
19
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Consolidated Bill of Materialbull If the proposal is for a base year plus option years there needs to be a
consolidated BOM for each of the years at each of the points in the RFPrequiring cost or pricing
bull To determine if a subtier cost analysis is required you need to add togetherthe anticipated costs for each supplier for all years In the above examplethere are two suppliers that will require cost analysis (Ford and Motion)
20
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Supplier proposals
bull A cost analysis report is required if any of your suppliersrsquo proposals exceedthe Truth in Negotiations Act (TINA) threshold These need to be submittedwith your proposal
bull If the cost analysis for a supplier is not complete at the time of your proposalsubmittal a schedule listing the estimated completion dates for each supplierneeds to be provided in the proposal
bull If an exemption applies that eliminates the need for a cost analysis (commercial orcompetitively priced) documentation needs to be provided to support these claims
21FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull If you claim your supplier was competed and the value is over the TINA
threshold you will need to provide the following
bull Evidence that an RFP or solicitation to bid was sent to two or more supplierscapable of providing the goods or services requested
bull Copies of the quotes received from each of the suppliers who were competedbull Supplierrsquos analysis with basis of rationale for why the winning bid represents the best value
(lowest price technical considerations etc)
bull If you claim your supplierrsquos parts or services are commercial refer to thecommercial section in this document
22FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Refer to the detailed instructions in the RFP when your proposal supports a
base year plus options contract or a long term agreement Guidance shouldbe provided here on the consolidation and subtier requirements If youhave any questions regarding this contact your PSEMC Supply Chainrepresentative
bull Inter-organizational costs
bull Inter-organizational costs are defined as the costs of items transferred betweendivisions within the same company
bull If you have bid any inter-organizational costs in your proposal you will need toprovide a cost element breakdown for each inter-organizational transfer andsupport as appropriate
bull One more thing
bull If you have a supplier with a value in excess of $135 million or is greater than 10percent of your total proposal and exceeds the TINA threshold FAR 15408 Table15-2 requires that we submit the supplierrsquos proposal and cost or pricing data withour own proposal
23FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Provide a time-phased (eg monthly quarterly) breakdown of labor hours ratesand cost by appropriate category and furnish basis for estimates
24FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Proposed labor hours are generally a combination of direct and support laborhours
bull Direct Labor Hours ndash Hours that can be identified specifically to a final end itembull Support Labor Hours ndash Hours that cannot be specifically identified to one end item For
example a production manager may be in charge of overseeing the manufacturing ofmultiple parts
25FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull You need to provide a breakdown of the labor hours by labor category and
function along with a basis of estimate for the proposed labor hours
bull For example if you propose 500 hours for an end item you would need to providea breakdown by categoryfunction (assembly inspection supervisor engineeretc) You also will need to provide a detailed basis of estimate for eachcategoryfunction showing how your arrived at the hours for the proposed laborcategory
bull Generally the basis should be actual production history An alternative approach isthe use of engineering estimates if the item has not been manufactured before
bull Cost Accounting Standards (CAS) 401 requires that a company isconsistent between proposals and accounting practices The way acompany estimates its labor hours needs to also be the way it accumulatesits production history
26FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours ExampleProposal No HLQxxxxxDate January 1 20xx ABC Corporation
Labor HoursProposed Labor Hours ndash 8279 hrsunit for Part ABC
27
Direct Labor HrsUnitAssembly 3800 Machinist 350 QA 762 Engineer 1 238
Subtotal 5151
Production Support HrsUnitMfg Supervisor 920Eng Supervisor 368QA supervisor 920Production Mgr 920
Subtotal 3128
Total Hrs 8279
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Example ndash Actual Production History
28
ProposedDuration - Months 7 9 24 12 Qty 30 39 110 50 End Date 11152006 982007 912009
Direct Labor Total Hrs HrsUnit Total Hours HrsUnit Total Hrs HrsUnit Total Hrs HrsUnitAssembly 1836 6120 1675 4295 4338 3944 1900 3800 Machinist 169 564 154 396 400 363 175 350 QA 368 1238 336 862 870 791 381 762 Engineer 1 115 383 105 269 272 247 119 238
Production Support Total Hrs Total Hrs Total Hrs Total Hrs HrsUnitMFG Supervisor 268 345 920 460 920 Eng Supervisor 107 138 184 184 368 QA Supervisor 268 345 920 460 920 Production Mgr 268 345 920 460 920
HrsUnit 8279
Acutal Production History - Part ABC
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Examples ndash Basis of Estimatebull Basis of estimate for direct labor
bull Proposed direct labor hours were developed by apply a 90 percent learningcurve to the production labor history for part BBC You need to provide abasis for the 90 percent curve
bull Basis of estimate for the manufacturing supervisorbull The manufacturing supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 920 hours were used over a 24-month periodSince the current proposal has been estimated to cover 12 months 460hours were applied to the manufacturing supervisor (920 divided by 2)
bull Basis of estimate for engineering supervisorbull The engineering supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 184 hours were necessary to complete the taskThis task is similar and so we estimate 184 hours
29
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Direct Costs (ODC)bull List other expenses not otherwise included under material and labor (eg
travel freight) and provide basis for pricing
bull For example the basis for travel would include the location number of tripsnumber of people attending and the estimated expenses for the travel
30FAR 15408 Table 15-2 II D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Nonrecurring Expenses (NRE)bull NRE refers to one-time costs that you would not normally see from proposal
to proposal
bull Examples of NRE are as follows
bull Special Toolingbull New Equipmentbull Equipment Refurbishmentbull Hours and materials associated with increase throughput capacitybull Hours and materials to research develop design and test new processesbull One-Time review events
31FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
NREbull As mentioned earlier NRE charges must be broken out by cost element
This means the material and labor components associated with the NREare clearly broken out
bull Material ndash any material associated with NRE should be supported by supplierquotes or purchase orders
bull Labor ndash labor hours associated with NRE should have basis of estimates(BOE) that are broken down by labor category and include detaileddescriptions of the tasks that will be performed
32FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Rates include direct labor overhead general and administrative expenses
(GampA) and cost of money (COM)
bull PSEMC has the capability to perform rate audits on suppliers in lieu ofhaving the DCAA do this
bull If you allow PSEMC to perform this rate audit you need to provide thefollowing information
bull Explanation as to how the rates were calculatedbull Detailed documentation (financial statements labor pools listing of unallowable
expenses etc) that support the rate calculationsbull If the detailed documentation is based on budgetary numbers you will also need
to provide three years of your most current actuals to support you budgetarynumbers
bull If budgetary numbers differ significantly from the most recent actuals providedetailed explanations for these differences
33FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Facilities Capital COM
bull When you elect to claim COM submit a completed form CASB-CFM (FacilitiesCapital Cost of Money Factors Computation) in accordance with FAR 31205-10Also complete DD Form 1861 and include a copy in your proposal submissionBoth forms can be found on-line at various locations
34FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull In summary all noncompetitive noncommercial proposals valued at more
than the cost and pricing threshold (TINA) are required to include thefollowing information
35
Required Items Page FAR Reference
Supplier Proposal Adequacy Checklist Pg 5-6 PSEMC Policy
Cover Sheet - SF1411 or equivalent Pg 7-8 FAR 15408 Table 15-2 I A
Index Pg 9-10 FAR 15408 Table 15-2 I B
Cost Element Breakdown Pg 11-12 FAR 15408 Table 15-2 I D
Summary Cost Element Breakdown Pg 13-15 FAR 15408 Table 15-2 I E
Material (Including Consolidated BOM) Pg 16-23 FAR 15408 Table 15-2 II A
Labor Pg 24-29 FAR 15408 Table 15-2 II B
ODC Pg 30 FAR 15408 Table 15-2 II D
NRE Pg 31-32 FAR 15408 Table 15-2 II
Rates Pg 33-34 FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull Sufficient rationale and supporting documentation to support each of the
proposed cost elements is also required
bull Obtaining adequate supplier proposals is always on the critical path sincePSEMC cannot submit its proposal to the government until it has receivedadequate proposals from its subcontractors Therefore it is critical thatadequate supplier proposals are obtained as quickly as possible
36
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Types of Proposalsbull Commercial item proposals
bull Change proposals
bull The following slides are only applicable in certain situations
37
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you or one of your suppliers is providing a commercial part cost or pricing
data and a cost analysis is not required However you must demonstrate that the part is commercial and that the price is reasonable
bull A commercial item is any item other than real property that is a type customarily used by the general public or by a nongovernment entity
bull Has also been sold leased or licensed to the general public or has been offered for sale lease or license to the general public
bull A final commercial determination is made by the government contracting officer If the items is deemed to not be commercial the supplier is required to submit a complete proposal that includes cost and pricing data
38FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you claim one or more of your parts are commercial you need to support
your position by providing the following information
bull Copies of applicable portions of a company catalogue or website address that shows the item with a description and unit price
bull Show that these items can be purchased by the general public or nongovernmentalagency
bull If a website or catalogue is not available copies of invoices showing the sale of these items to nongovernment entities is sufficient
39FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull PSEMC policy requires suppliers to complete a PSEMC Supplier Proposal
Adequacy Checklist (sent with the RFP) for all proposals where the supplierclaims its parts are commercial
bull An example of the Supplier Proposal Adequacy Checklist for commercialitems is attached reference form DI-SUP-310F01
40PSEMC Policy
Pacific Scientific EMC ndash Commercial Item Status
If claiming an exemption offeror must provide the appropriate information to determine commerciality Refusal to provide the required information can result in an assist audit being requested from the Defense Contract Audit Agency or other cognizant Government Audit Agencies and or a determination that goods andor services offered do not constitute a ldquocommercial itemrdquo
Offeror hereby represents that to the best of its knowledge information and belief goods andor services offered constitute a ldquocommercial itemrdquo as defined by FAR 2101 because it constitutes
A Commercial Item or Component Justification (required for any claim)
Key Inquiries and Summary of your Supporting Information
What is the relevant ldquotyperdquo of item enspenspenspenspensp
What are the types of items uses by the general public or by non-governmental entities for other than governmental purposes enspenspenspenspensp
What indicates the type of itemrsquos use described above is customary enspenspenspenspensp
Has the offered item itself (as opposed to the type of item) been sold or offered for sale
|_| Yes|_| NO
Are the offered itemrsquos sales (or offers to sale) to the general public
|_| Yes|_| NO
Please provide data regarding sales leases or licenses of this item and identification of the non-government use entities
ValueNon-Government Use Entities
(date)(date)
In addition as an appendix to this commercial item determination provide supporting documentation in the form of
1that have not materialized into sales
2that have not materialized into leases
3that have not materialized into licenses
1 Verification of sales history to source documents
2 Identification of customarily offered discounts for the item
3 Verification of the item to an existing catalog or price list and
4 Verification of historical data for an item previously not determined commercial that the offeror is now trying to qualify as a commercial item
(check box(es) as appropriate)
|_| I Unmodified Commercial Items or Components (Complete Section A)
Any item other than real property that is a of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes and
(i) Has been sold leased or licensed to the general public or
(ii) Has been offered for sale lease or license to the general public
|_| II Item Evolved from Commercial Items or Components
Any item that evolved from an item described in Part I (which is required if claiming this exemption) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace but will be available in the commercial marketplace in time to satisfy the delivery requirements under a United States Government solicitation
If claiming the item Evolved from Commercial Items or Components exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use Part I)
|_| Yes|_| NO
If yes describe the relationship of the modifications to the Federal Government requirement enspenspenspenspensp
What are the advances in technology or performance between the offered item and the commercial item on which it is based enspenspenspenspensp
What is your support for such advances enspenspenspenspensp
What is your support for availability of the item in time to meet requirements Is the claim availability reasonable enspenspenspenspensp
Please provide data regarding
(a) Currently pending offers including
(b) Planned Offers Including
In all instances scheduled for delivery no later than the delivery requirements under the
(c) Data in the format of Part I for completed sales of the item from which the ldquocommercial itemrdquo evolved
|_| III Modified Commercial Items or Components
Any item that would satisfy a criterion expressed in Part I or II hereof but for -
|_| (i) Modifications of a type customarily available in the commercial marketplace
If claiming Modified Commercial Item or Components that are of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use part I or parts II and II)
|_| Yes|_| NO
What are the modifications that would be made to the commercial item enspenspenspenspensp
Are the modifications of a type customarily available in the commercial marketplace
|_| Yes|_| NO
Summarize your support for customary availability of the modification in the commercial marketplace enspenspenspenspensp
|_| (ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet federal government requirements ldquoMinor modificationsrdquo means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component or change the purpose of a process Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product Dollar values and percentages may be used as guideposts but are not conclusive evidence that a modification is minor
If claiming Modified Commercial Items or Components that are not of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Are the modifications made to satisfy Federal Government requirements
|_| Yes|_| NO
Do the modifications alter the nongovernmental function or essential physical characteristics of the item
|_| Yes|_| NO
If yes what are the alterations enspenspenspenspensp
Does the modified item retain a predominance of nongovernmental functions or physical characteristics
|_| Yes|_| NO
Summarize your support describing the value of the modifications in comparison to the value of the final product enspenspenspenspensp
Summarize your support for the magnitude or size of the modifications in relation to the magnitude or size of the final product enspenspenspenspensp
Are there any other factors which would allow you to conclude that the modifications are minor
|_| Yes|_| NO
If yes what are they enspenspenspenspensp
Based on the above does the modification qualify as a minor modification
|_| Yes|_| NO
Please provide data regarding the minor modification and the total price to PSEMC of Minor Modifications
Price to PSEMC of all Minor Modifications at quantities proposed in this pricing action enspenspenspenspensp
Minor modifications that exceed the thresholds in FAR 15403-1(c)(3)(iii)(B) are subject to the Certified Cost or Pricing Data requirements and must be proposed as described by FAR 15408 Table 152
|_| IV Commercial Items Support Services
Installation services maintenance services repair services training services and other services if -
(i) Such services are procured for support of an item referred to in Parts I II III or IV hereof regardless of whether such services are provided by the same source or at the same time as the item and
(ii) The source of such services provided similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government
If claiming Commercial Item Support Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services procured for the support of a commercial item which qualifies under a preceding part
|_| Yes|_| NO
Describe the nature of the services and how they support the commercial item enspenspenspenspensp
Are the services provided at the same time to the general public and the Federal Government
|_| Yes|_| NO
Are the terms and conditions for the services similar to those offered to the general public
|_| Yes|_| NO
Describe differences enspenspenspenspensp
Please provide data regarding
a Open and completed contracts including
b Pending offers including
|_| V Any Combination of Items
Meeting the requirements of Parts I II III or IV hereof that are of a type customarily combined and sold in combination to the general public
If you have checked the above box and are claiming the Any Combination of Items exemption please attach hereto information as requ3sted for Parts I II III and IV
|_| VI Other Commercial Services
Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions For purposes of these services -
(i) Catalog price means a price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor is either published or otherwise available for inspection by customers and states prices at which sales are currently or were last made to a significant number of buyers constituting the general public and
(ii) Market prices means current prices that are established in the course of ordinary trade between buyers and sellers free to bargain and that can be substantiated through competition or from source independent of the offerors
If claiming the Other Commercial Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services sold competitively in substantial quantities in the commercial marketplace
|_| Yes|_| NO
If no are the services of a type sold in substantial quantities in the commercial marketplace
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If yes what is the ldquotyperdquo of service enspenspenspenspensp
Summarize your support for same enspenspenspenspensp
Are the prices quoted for specific tasks performed or specific outcomes to be achieved
|_| Yes|_| NO
Are the services offered consistent with your standard terms and conditions
|_| Yes|_| NO
Are the services of a type sold at catalog or market prices
|_| Yes|_| NO
If sold at catalog price is the price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor
|_| Yes|_| NO
If sold at catalog price is the catalog or its equivalent either published or otherwise available for inspection by customers
|_| Yes|_| NO
Summarize your support for same (include a copy of the catalog or provide location) enspenspenspenspensp
If sold at a catalog price are the listed prices those at which sales are currently or were last made to a significant number of buyers in the general public
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If sold at a market price are the prices established in the course of ordinary trade between buyers and sellers free to bargain
|_| Yes|_| NO
Summarize you support for same enspenspenspenspensp
If sold at market price can the price be substantiated through competition or from sources independent of the offeror
|_| Yes|_| NO
Summarize your support for same
Please provide data regarding
(a) Open and completed contracts including
(b) Pending Offers including
|_| VII Any Item Combination of Items or Service
Referred to in Parts I through VI hereof notwithstanding the fact that the item combination of items or service is transferred between or among separate divisions subsidiaries or affiliates of the Offeror
If you have checked the above box and are claiming the ldquoAny item combination of items or Servicerdquo exemption please provide data regarding
|_| VIII Non-developmental Items
A non-developmental item as defined in FAR 2101 which has been developed exclusively at private expense and sold in substantial quantities on a competitive basis to multiple State and local governments
If claiming the Non-developmental Items exemption then the following must be provided
Key Inquiries and Summary of Supplierrsquos Supporting Information
Was the item previously developed
|_| Yes|_| NO
Was the item used exclusively for governmental purposes by a Federal agency a State or local government or a foreign government with which the United States has mutual defense cooperation agreement
|_| Yes|_| NO
If the item is to be modified do the modifications comply with Part III guidance on modifications
|_| Yes|_| NO
If the item is not yet in use does it otherwise qualify as a non-developmental item
|_| Yes|_| NO
Was the item developed exclusively at private expense
|_| Yes|_| NO
Is the item sold in substantial quantities on a competitive basis to multiple State and local governments
|_| Yes|_| NO
Please provide data regarding
|_| IX General Inquiries
Does the item qualify as a combination of items under Parts I II III and IV above
|_| Yes|_| NO
Has the item or services previously been determined to be commercial
|_| Yes|_| NO
If so by whom enspenspenspenspensp
|_| X Other Information
Is there other information of which you are aware that would supplement the information provided and would help substantiate whether the item or service is commercial
|_| Yes|_| NO
Have you provided such information
|_| Yes|_| NO
List such information enspenspenspenspensp
|_| XI Supplier Determination
Offeror hereby represents that the foregoing information is accurate and complete and that to the best of its knowledge information and belief goods and or services offered currently constitute ldquoa commercial itemrdquo as defined by FAR 2101
For PSEMC Internal Use Only
XII Supplier Determination
Supplier has claimed that the item component or service identified above is a commercial item under the definition at FAR 2101 I have reviewed and summarized the supplierrsquos support for that claim in the appropriate sections above Based on such review of such support information and any other information identified elsewhere herein I conclude that the supplier
|_| HAS |_| HAS NOT Supported its claim of commercial item status under the definition at FAR 2101
If the supplier HAS NOT supported its claim list reasons enspenspenspenspensp
Describe action plat to resolve enspenspenspenspensp
Comments enspenspenspenspensp
image1jpeg
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull This section of Table 15-2 describes the format an estimating approach we
are required to use when developing a proposal to modify an existingcontract In addition to the cost element breakdowns required as describedin the previous slides when there is a modification or change proposal FARalso requires the following table to be inserted into your proposal
41
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals
42FAR 15408 Table 15-2 III B
B Change Orders modifications and claims
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
Column 2 includes the cost of all work deleted This
includes cost of work deleted already performed (amount in Column 3) and
cost of work deleted not yet performed (Column 4)
Column 3 includes the cost of deleted work already
performed This amount will not be included in the credit (delete) adjustment amount (eg we will not give back costs already
incurred)
Column 4 includes cost for deleted work not yet performed ndash must be priced using current
estimates (but the current estimate may be the same as
the original estimate) ndash it is develed similar to a normal ldquoaddrdquo proposal with a few
exceptions
Column 5 includes the cost of the
new work and is developed as we do any
other proposal
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull Detail for columns listed on previous page
1 Enter appropriate cost element2 Enter current estimates of what it would take to complete the deleted work that
has not yet been performed3 Enter current cost of deleted work already performed This should be based on
actuals and copies to support these actuals should be included in the proposal4 Enter the net cost to be deleted (Column 2 minus Column 3)5 Enter your estimate for cost of work added by the change6 Enter the net cost of change (Column 5 minus Column 4)7 Identify where in your proposal the supporting documentation and basis of
estimate can be found for each of these sections
43FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull For purposes of determining if a proposal an cost or pricing data are
required from individual suppliers on a change proposal the absolute valueof the ldquodeleterdquo amount plus the ldquoaddrdquo amount is computed for each supplierthat exceeds the cost and pricing threshold (TINA)
bull Remember from FAR 15403-4(b) ndash if the absolute value for an individualsupplier exceeds the cost and pricing threshold (TINA) and the supplier iseither an actual supplier (will continue to provide partsservices on thiscontract) the supplier is required to provide a proposal and cost or pricingdata in support of the change proposal
bull Deleted amount is our current estimate (generally no the original contractvalue unless it is our current estimate)
44FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull If a supplierrsquos quantities are changing due to a modification the net delete
or add amount is used to determine if the supplier exceeds the cost andpricing threshold (TINA)
bull The estimator should not consider the old quantity as the delete and thenew quantity as the add (eg in computing absolute value) whendetermining if the supplier exceeds the threshold in cases where quantitiesare changing
bull The development of the appropriate deletion is not simply the estimatedcost of the deleted quantity ndash this will overstate the credit
45FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals Cost of WorkDeleted for a Partial Deleted Quantitybull In cases where part of a material quantity is being deleted (eg original
contract requires 100 widgets and the contract is modified to delete 30 ofthem) one method of estimating the amount of the delete is
1 Develop a current estimate of the extended cost for the item(s) given the originalquantity
2 Develop a current estimate of the extended cost for the items at the lower(remaining) quantity
3 The delta between these two values represents the amount of the delete
bull The same method can be used if the contract is modified to increase aquantity for a part
46FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklist
47
bull The Supplier Proposal Adequacy Checklist is accessed from the externalPSEMC supplier website
bull Additional supplier proposal guidance and resources are available(information templates and tools to assist in building a FAR compliantproposal
bull Supplier proposal guidance
bull Supplier Proposal Adequacy Guidelines
bull PSEMC document templates
bull Supplier proposal adequacy checklistbull Contract pricing proposal cover sheet
httpspsemccomsuppliers
- Strategic Affordability Analysis
- Purpose of this Guideline
- Table of Contents
- Table of Contents
- Supplier Proposal Adequacy Checklist
- Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
- Cover Sheet
- Cover Sheet Example ndash Reference Form DI-SUP-105F02
- Index
- Index Example
- Cost Element Breakdown by Line Item
- Cost Element Breakdown by Line Item Example
- Summary Cost Element Breakdown
- Summary Cost Element Breakdown - Example
- Summary Cost Element Breakdown - Example
- Material
- Material
- Individual Bills of Material Example
- Consolidated Bill of Material Example
- Consolidated Bill of Material
- Material
- Material
- Material
- Labor
- Labor
- Labor
- Labor Hours Example
- Labor Hours Example ndash Actual Production History
- Labor Hours Examples ndash Basis of Estimate
- Other Direct Costs (ODC)
- Nonrecurring Expenses (NRE)
- NRE
- Rates
- Rates
- Summary
- Summary
- Other Types of Proposals
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals Cost of WorkDeleted for a Partial Deleted Quantity
- Supplier Proposal Adequacy Checklist
-
| Buyer (Type or Print Name) | Date |
| Offeror | |||
| By | |||
| Title | |||
| Date |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp | ||
| (iii) Total number of customers involved in such sales | enspenspenspenspensp |
| (a) Transfer price(s) of such goods | $ enspenspenspenspensp | ||
| (b) Total units of such goods and or | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| Unmodified Items Identified in Part 1 | Modified Items Proposed to PSMEC | Unit Value of Modification | |||||||
| Unmodified Item | Unmodified Price | Modified Item | Modified Price to PSEMC | ||||||
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| To the general public in the time-frame beginning | enspenspenspenspensp | enspenspenspenspensp | and ending | enspenspenspenspensp |
| (a) Sales | |||||
| (b) Leases | |||||
| (c) Licenses | |||||
| (d) Offers to Sell 1 | |||||
| (e) Offers to Lease 2 | |||||
| (f) Offers to License 3 |
| Part Number | |||
| Description | |||
| Offeror |
| Completion of this checklist and supporting information is required for all single source proposals that exceed the TINA threshold where no valid exception (FAR 15403-1) applies If the supplier is claiming an exemption for commercial terms only the first line on the checklist is applicable | |||||
| Supplier enspenspenspenspensp | Supplier Proposal Number enspenspenspenspensp | ||||
| Exemption to CampP Data Commercial Item (Section 3 of Instruction) | |_| Support Included | Located in Section Page enspenspenspenspensp | |||
| Pricing Proposal Coversheet or Equivalent (21 of Instruction) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Point of Contact (21 of Instruction) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| DCMADCAA Points of Contact (Include Name Phone Address Cage Code and E-mail Address) (21 of Instruction) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Cost Element Detail and Cost Element Summary (24 of Instruction) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Individual Bill of Material and Consolidated Bill of Material (25 of Instruction) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Material Basis of Estimate (251 of Instruction) and Copies of POsQuotes | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Sub-tier Cost Analysis (if required) (251 of Instruction) | |_| Included | Located in Section Page or ECDs enspenspenspenspensp | |||
| Labor History (26 amp 261 of Instruction) and Basis of Estimate | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Support for ODC (27 of Instruction) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Support for Rates (17 and 28 of Instruction) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Nonrecurring Engineering (NRE) (14 and 15) Use of Government Property to Include Serial Tooling andor Special Test Equipment | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Expenditure Plan (Required to Support Cost Type Proposals or Performance Based Progress Payments) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Supplier | |||||
| By Signing below you are confirming that required cost and pricing data is part of your proposal and meets the requirements of Pacific Scientificrsquos proposal pricing instructions | |||||
| Sellerrsquos Representative (type or Print) enspenspenspenspensp | Signature enspenspenspenspensp | Date (MMDDYYYY) enspenspenspenspensp | |||
| Pacific Scientific | |||||
| By Signing below the supplier manager is confirming receipt of the items required for this proposal and meets the requirements of Pacific Scientificrsquos proposal pricing instructions | |||||
| Buyer (Type or Print) enspenspenspenspensp | Signature enspenspenspenspensp | Date (MMDDYYYY) enspenspenspenspensp | |||
| Supplier Manager (Type or Print) enspenspenspenspensp | Signature enspenspenspenspensp | Date (MMDDYYYY) enspenspenspenspensp |
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Purpose of this Guidelinebull This guideline explains the basic requirements for proposals submitted to
PSEMC when cost or pricing data are required
bull This guideline does not apply to proposals that are
bull Valued at less than the cost or pricing threshold set in FAR 15403-4bull Based on competitionbull Based on commercial pricing
bull Questions regarding these requirements should be addressed to yourPSEMC Supply Chain contact
2
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Table of Contentsbull When cost or pricing data is required the supplierrsquos proposal needs to
include the following sections
3
Required Items Page FAR Reference
Supplier Proposal Adequacy Checklist Pg 5-6 PSEMC Policy
Cover Sheet - SF1411 or equivalent Pg 7-8 FAR 15408 Table 15-2 I A
Index Pg 9-10 FAR 15408 Table 15-2 I B
Cost Element Breakdown Pg 11-12 FAR 15408 Table 15-2 I D
Summary Cost Element Breakdown Pg 13-15 FAR 15408 Table 15-2 I E
Material (Including Consolidated BOM) Pg 16-23 FAR 15408 Table 15-2 II A
Labor Pg 24-29 FAR 15408 Table 15-2 II B
ODC Pg 30 FAR 15408 Table 15-2 II D
NRE Pg 31-32 FAR 15408 Table 15-2 II
Rates Pg 33-34 FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Table of Contentsbull Summary cost element breakdowns and consolidated Bills of Material
(BOM) are the two most frequently missed items in supplier proposals
bull Additional areas of proposal support which are not applicable to most proposals
4
Required Items Page FAR Reference
Commercial Justification Pg 38-40 FAR 2101 amp FAR 15403
Change Proposal Pg 41-46 FAR 15408 Table 15-2 III B
Additional Guidance Pg 47 PSEMC Support
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklistbull PSEMC Policy requires suppliers to complete a PSEMC Supplier Proposal
Adequacy Checklist (sent with the RFP) for all proposals that exceed theCost amp Pricing Thresholdbull Additionally PSEMC request the cost element breakdown bill of material and labor
detail in Excel format
bull The purpose of this form is as followsbull To provide the supplier with a checklist to help ensure that all the supporting
documentation has been included so the proposal will be deemed adequate byPSEMC our customer and the DCAA
bull To provide PSEMC with a tool to more quickly verify where the supportingdocumentation can be found in the proposal
bull An example is provided on the next slide and under the commercialjustification section of this module
5
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
6
Proposal Pricing Instructions
Supplier Proposal Adequacy Checklist
Completion of this checklist and supporting information is required for all single source proposals that exceed the TINA threshold where no valid exception (FAR 15403-1) applies If the supplier is claiming an exemption for commercial terms only the first line on the checklist is applicable Supplier
Supplier Proposal Number
Exemption to CampP Data Commercial Item (Section 3 of Instruction)
Support Included
Located in Section Page
Pricing Proposal Coversheet or Equivalent (21 of Instruction)
Included Located in Section Page
Point of Contact (21 of Instruction) Included Located in Section Page
DCMADCAA Points of Contact (Include Name Phone Address Cage Code and E-mail Address) (21 of Instruction)
Included Located in Section Page
Cost Element Detail and Cost Element Summary (24 of Instruction)
Included Located in Section Page
Individual Bill of Material and Consolidated Bill of Material (25 of Instruction)
Included Located in Section Page
Material Basis of Estimate (251 of Instruction) and Copies of POsQuotes
Included Located in Section Page
Sub-tier Cost Analysis (if required) (251 of Instruction)
Included Located in Section Page or ECDs
Labor History (26 amp 261 of Instruction) and Basis of Estimate
Included Located in Section Page
Support for ODC (27 of Instruction) Included Located in Section Page
Support for Rates (17 and 28 of Instruction) Included Located in Section Page
Nonrecurring Engineering (NRE) (14 and 15) Use of Government Property to Include Serial Tooling andor Special Test Equipment
Included Located in Section Page
Expenditure Plan (Required to Support Cost Type Proposals or Performance Based Progress Payments)
Included Located in Section Page
Supplier By Signing below you are confirming that required cost and pricing data is part of your proposal and meets the requirements of Pacific Scientificrsquos proposal pricing instructions Sellerrsquos Representative (type or Print)
Signature
Date (MMDDYYYY)
Pacific Scientific By Signing below the supplier manager is confirming receipt of the items required for this proposal and meets the requirements of Pacific Scientificrsquos proposal pricing instructions Buyer (Type or Print)
Signature
Date (MMDDYYYY)
Supplier Manager (Type or Print)
Signature
Date (MMDDYYYY)
Proposal Pricing Instructions
Supplier Proposal Adequacy Checklist
image1jpeg
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Cover Sheetbull Include a cover sheet that includes the following information
bull Solicitation Numberbull Name and Address of offerorbull Name and Telephone number of point of contactbull Name address phone number and email for your DCMA and DCAAbull Type of contract actionbull Proposed cost profit or fee and total price ndash maximum proposal valuebull If you will require the use of government propertybull Whether your organization is subject to cost accounting standards (CAS) ndash see
details in FAR 15-408 Table 15-2 I A (8)bull The statement designated in FAR 15408 Table 15-2 I A (9)bull Date of Submissionbull Name title and signature of authorized representative
bull Most contractors use the Government Form 1411 or equivalent
bull An example is provided on the next slide
7
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Cover Sheet Example ndashReference Form DI-SUP-105F02
8
Point of Contact
Proposed Cost
Period of Performance
DCAA Contact Information
Include Statement from FAR 15408 Table 15-2 IA (9)
DCMA Contact Information
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Indexbull Include an index that references where the supporting data for your
estimates is located in the proposalbull The Index should include the following information
bull Title of information being referenced (Summary cost element breakdown materiallabor etc
bull Location in the proposal (page number or file name and page if located in a separatefiledocument)
bull An example is provided in the next slide
9
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Index ExampleProposal No HLQxxxxxDate January xx xxxx ABC Company
Index1 Cover sheet Page xx
2 Business section Page xx
21 Assumptions and Conditions Page xx
3 Pricing Page xx
31 Unit Pricing Page xx
32 Cost Element by Part Number Page xx
33 Cost Element Summary Page xx
4 Material Page xx
41 Bill of Materials by Part Number Page xx
42 Consolidated Bill of Materials Page xx
43 Purchase Orders and Quotes (File PO-QuotesPDF) Page xx
5 Labor Page xx
6 Etc Page xx
10
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Cost Element Breakdown by Line Itembull A cost element breakdown is required for each proposed line item If the
proposal covers multiple price points or multiple years a cost elementbreakdown will be required for each price point for each year
bull For example assume your proposal includes the following three line items
bull You would need to provide separate cost element breakdowns for parts ABCABB and the NRE See the next slide for an example
Slight differences due to rounding
11
Part Number Quantity Unit Price Total PricePart ABC 50 $12500 $625000Part ABB 75 $10300 $772500NRE 1 $145000Total $1542500
FAR 15408 Table 15-2 I D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Cost Element Breakdown by Line Item Example
12FAR 15408 Table 15-2 I D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summary Cost Element Breakdownbull When more than one contract line item (Part Number NRE etc) is
proposed you must provide summary total amounts covering all items foreach element of cost If the proposal covers a high mid and low point thesummary needs to only be for those points not all the differentcombinations that can result from range pricing If the proposal is formultiple years there needs to be a summary for each of the yearsbull For example if your proposal included the following
bull You would need to provide a summary by cost element that includes the totalproposed value of $1542500 See the next slide for an example showing thethree individual cost elements being combined into a summary
Slight differences due to rounding
13
Part Number Quantity Unit Price Total PricePart ABC 50 $12500 $625000Part ABB 75 $10300 $772500NRE 1 $145000Total $1542500
FAR 15408 Table 15-2 I E
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summary Cost Element Breakdown - Example
14FAR 15408 Table 15-2 I E
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summary Cost Element Breakdown - Example
15
bull If the proposal is a base year plus option years there needs to be asummary Cost Element Breakdown for each of the years at the points in theRFP requiring Cost or Pricing data
FAR 15408 Table 15-2 I E
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Include a BOM for each individual part proposed A BOM is a list of the raw
materials subassemblies etc needed to manufacture a product
bull Provide your BOMs in Excel formatbull The consolidated and individual BOMs need to identify the following for each line
itembull Part Number and descriptionbull Supplierbull Quantitybull Unit Price ndash Unit pricing on the BOM should tie to the supportbull Total Pricebull Basis for pricing (vendor quotes purchase orders)
Source of pricing (purchase order quotes etc) must be referenced in the BOM
bull PSEMC will require copies of the support (ie quotes purchase orders) for asample of the items on the BOM during the cost analysis
16FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull If attritionyield or scrap are added to your material you will need to submit
adequate basis of estimates and support as appropriate
bull There are time when your BOM may be impacted by minimum buys or NREthat is passed along from your supplier If this happens make sure this isclearly identified on the BOM and the support quotes or purchase orders
bull In addition to the individual BOMs FAR requires a consolidated BOM inyour proposal A consolidated BOM is a listing of the material needed forthe proposal A consolidated BOM combines all the materials for each ofthe parts being procured as well as assemblies services or materialassociated with NRE
17FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Individual Bills of Material Example
18
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Consolidated Bill of Material Examplebull Below is an example of a consolidated BOM This BOM was developed by
taking the three individual BOMrsquos on the previous page and combining themtogetherbull In a consolidated BOM part numbers and quantities should be combined (or
subtotaled) if they are the same parts For example the BOMs for Part Nos ABCand ABB both require the same Connector and Screw In the consolidated BOMthe requirements have been combined and reflect the total number of Connectorsand Screws that will be needed for this proposal
19
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Consolidated Bill of Materialbull If the proposal is for a base year plus option years there needs to be a
consolidated BOM for each of the years at each of the points in the RFPrequiring cost or pricing
bull To determine if a subtier cost analysis is required you need to add togetherthe anticipated costs for each supplier for all years In the above examplethere are two suppliers that will require cost analysis (Ford and Motion)
20
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Supplier proposals
bull A cost analysis report is required if any of your suppliersrsquo proposals exceedthe Truth in Negotiations Act (TINA) threshold These need to be submittedwith your proposal
bull If the cost analysis for a supplier is not complete at the time of your proposalsubmittal a schedule listing the estimated completion dates for each supplierneeds to be provided in the proposal
bull If an exemption applies that eliminates the need for a cost analysis (commercial orcompetitively priced) documentation needs to be provided to support these claims
21FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull If you claim your supplier was competed and the value is over the TINA
threshold you will need to provide the following
bull Evidence that an RFP or solicitation to bid was sent to two or more supplierscapable of providing the goods or services requested
bull Copies of the quotes received from each of the suppliers who were competedbull Supplierrsquos analysis with basis of rationale for why the winning bid represents the best value
(lowest price technical considerations etc)
bull If you claim your supplierrsquos parts or services are commercial refer to thecommercial section in this document
22FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Refer to the detailed instructions in the RFP when your proposal supports a
base year plus options contract or a long term agreement Guidance shouldbe provided here on the consolidation and subtier requirements If youhave any questions regarding this contact your PSEMC Supply Chainrepresentative
bull Inter-organizational costs
bull Inter-organizational costs are defined as the costs of items transferred betweendivisions within the same company
bull If you have bid any inter-organizational costs in your proposal you will need toprovide a cost element breakdown for each inter-organizational transfer andsupport as appropriate
bull One more thing
bull If you have a supplier with a value in excess of $135 million or is greater than 10percent of your total proposal and exceeds the TINA threshold FAR 15408 Table15-2 requires that we submit the supplierrsquos proposal and cost or pricing data withour own proposal
23FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Provide a time-phased (eg monthly quarterly) breakdown of labor hours ratesand cost by appropriate category and furnish basis for estimates
24FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Proposed labor hours are generally a combination of direct and support laborhours
bull Direct Labor Hours ndash Hours that can be identified specifically to a final end itembull Support Labor Hours ndash Hours that cannot be specifically identified to one end item For
example a production manager may be in charge of overseeing the manufacturing ofmultiple parts
25FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull You need to provide a breakdown of the labor hours by labor category and
function along with a basis of estimate for the proposed labor hours
bull For example if you propose 500 hours for an end item you would need to providea breakdown by categoryfunction (assembly inspection supervisor engineeretc) You also will need to provide a detailed basis of estimate for eachcategoryfunction showing how your arrived at the hours for the proposed laborcategory
bull Generally the basis should be actual production history An alternative approach isthe use of engineering estimates if the item has not been manufactured before
bull Cost Accounting Standards (CAS) 401 requires that a company isconsistent between proposals and accounting practices The way acompany estimates its labor hours needs to also be the way it accumulatesits production history
26FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours ExampleProposal No HLQxxxxxDate January 1 20xx ABC Corporation
Labor HoursProposed Labor Hours ndash 8279 hrsunit for Part ABC
27
Direct Labor HrsUnitAssembly 3800 Machinist 350 QA 762 Engineer 1 238
Subtotal 5151
Production Support HrsUnitMfg Supervisor 920Eng Supervisor 368QA supervisor 920Production Mgr 920
Subtotal 3128
Total Hrs 8279
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Example ndash Actual Production History
28
ProposedDuration - Months 7 9 24 12 Qty 30 39 110 50 End Date 11152006 982007 912009
Direct Labor Total Hrs HrsUnit Total Hours HrsUnit Total Hrs HrsUnit Total Hrs HrsUnitAssembly 1836 6120 1675 4295 4338 3944 1900 3800 Machinist 169 564 154 396 400 363 175 350 QA 368 1238 336 862 870 791 381 762 Engineer 1 115 383 105 269 272 247 119 238
Production Support Total Hrs Total Hrs Total Hrs Total Hrs HrsUnitMFG Supervisor 268 345 920 460 920 Eng Supervisor 107 138 184 184 368 QA Supervisor 268 345 920 460 920 Production Mgr 268 345 920 460 920
HrsUnit 8279
Acutal Production History - Part ABC
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Examples ndash Basis of Estimatebull Basis of estimate for direct labor
bull Proposed direct labor hours were developed by apply a 90 percent learningcurve to the production labor history for part BBC You need to provide abasis for the 90 percent curve
bull Basis of estimate for the manufacturing supervisorbull The manufacturing supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 920 hours were used over a 24-month periodSince the current proposal has been estimated to cover 12 months 460hours were applied to the manufacturing supervisor (920 divided by 2)
bull Basis of estimate for engineering supervisorbull The engineering supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 184 hours were necessary to complete the taskThis task is similar and so we estimate 184 hours
29
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Direct Costs (ODC)bull List other expenses not otherwise included under material and labor (eg
travel freight) and provide basis for pricing
bull For example the basis for travel would include the location number of tripsnumber of people attending and the estimated expenses for the travel
30FAR 15408 Table 15-2 II D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Nonrecurring Expenses (NRE)bull NRE refers to one-time costs that you would not normally see from proposal
to proposal
bull Examples of NRE are as follows
bull Special Toolingbull New Equipmentbull Equipment Refurbishmentbull Hours and materials associated with increase throughput capacitybull Hours and materials to research develop design and test new processesbull One-Time review events
31FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
NREbull As mentioned earlier NRE charges must be broken out by cost element
This means the material and labor components associated with the NREare clearly broken out
bull Material ndash any material associated with NRE should be supported by supplierquotes or purchase orders
bull Labor ndash labor hours associated with NRE should have basis of estimates(BOE) that are broken down by labor category and include detaileddescriptions of the tasks that will be performed
32FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Rates include direct labor overhead general and administrative expenses
(GampA) and cost of money (COM)
bull PSEMC has the capability to perform rate audits on suppliers in lieu ofhaving the DCAA do this
bull If you allow PSEMC to perform this rate audit you need to provide thefollowing information
bull Explanation as to how the rates were calculatedbull Detailed documentation (financial statements labor pools listing of unallowable
expenses etc) that support the rate calculationsbull If the detailed documentation is based on budgetary numbers you will also need
to provide three years of your most current actuals to support you budgetarynumbers
bull If budgetary numbers differ significantly from the most recent actuals providedetailed explanations for these differences
33FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Facilities Capital COM
bull When you elect to claim COM submit a completed form CASB-CFM (FacilitiesCapital Cost of Money Factors Computation) in accordance with FAR 31205-10Also complete DD Form 1861 and include a copy in your proposal submissionBoth forms can be found on-line at various locations
34FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull In summary all noncompetitive noncommercial proposals valued at more
than the cost and pricing threshold (TINA) are required to include thefollowing information
35
Required Items Page FAR Reference
Supplier Proposal Adequacy Checklist Pg 5-6 PSEMC Policy
Cover Sheet - SF1411 or equivalent Pg 7-8 FAR 15408 Table 15-2 I A
Index Pg 9-10 FAR 15408 Table 15-2 I B
Cost Element Breakdown Pg 11-12 FAR 15408 Table 15-2 I D
Summary Cost Element Breakdown Pg 13-15 FAR 15408 Table 15-2 I E
Material (Including Consolidated BOM) Pg 16-23 FAR 15408 Table 15-2 II A
Labor Pg 24-29 FAR 15408 Table 15-2 II B
ODC Pg 30 FAR 15408 Table 15-2 II D
NRE Pg 31-32 FAR 15408 Table 15-2 II
Rates Pg 33-34 FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull Sufficient rationale and supporting documentation to support each of the
proposed cost elements is also required
bull Obtaining adequate supplier proposals is always on the critical path sincePSEMC cannot submit its proposal to the government until it has receivedadequate proposals from its subcontractors Therefore it is critical thatadequate supplier proposals are obtained as quickly as possible
36
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Types of Proposalsbull Commercial item proposals
bull Change proposals
bull The following slides are only applicable in certain situations
37
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you or one of your suppliers is providing a commercial part cost or pricing
data and a cost analysis is not required However you must demonstrate that the part is commercial and that the price is reasonable
bull A commercial item is any item other than real property that is a type customarily used by the general public or by a nongovernment entity
bull Has also been sold leased or licensed to the general public or has been offered for sale lease or license to the general public
bull A final commercial determination is made by the government contracting officer If the items is deemed to not be commercial the supplier is required to submit a complete proposal that includes cost and pricing data
38FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you claim one or more of your parts are commercial you need to support
your position by providing the following information
bull Copies of applicable portions of a company catalogue or website address that shows the item with a description and unit price
bull Show that these items can be purchased by the general public or nongovernmentalagency
bull If a website or catalogue is not available copies of invoices showing the sale of these items to nongovernment entities is sufficient
39FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull PSEMC policy requires suppliers to complete a PSEMC Supplier Proposal
Adequacy Checklist (sent with the RFP) for all proposals where the supplierclaims its parts are commercial
bull An example of the Supplier Proposal Adequacy Checklist for commercialitems is attached reference form DI-SUP-310F01
40PSEMC Policy
Pacific Scientific EMC ndash Commercial Item Status
If claiming an exemption offeror must provide the appropriate information to determine commerciality Refusal to provide the required information can result in an assist audit being requested from the Defense Contract Audit Agency or other cognizant Government Audit Agencies and or a determination that goods andor services offered do not constitute a ldquocommercial itemrdquo
Offeror hereby represents that to the best of its knowledge information and belief goods andor services offered constitute a ldquocommercial itemrdquo as defined by FAR 2101 because it constitutes
A Commercial Item or Component Justification (required for any claim)
Key Inquiries and Summary of your Supporting Information
What is the relevant ldquotyperdquo of item enspenspenspenspensp
What are the types of items uses by the general public or by non-governmental entities for other than governmental purposes enspenspenspenspensp
What indicates the type of itemrsquos use described above is customary enspenspenspenspensp
Has the offered item itself (as opposed to the type of item) been sold or offered for sale
|_| Yes|_| NO
Are the offered itemrsquos sales (or offers to sale) to the general public
|_| Yes|_| NO
Please provide data regarding sales leases or licenses of this item and identification of the non-government use entities
ValueNon-Government Use Entities
(date)(date)
In addition as an appendix to this commercial item determination provide supporting documentation in the form of
1that have not materialized into sales
2that have not materialized into leases
3that have not materialized into licenses
1 Verification of sales history to source documents
2 Identification of customarily offered discounts for the item
3 Verification of the item to an existing catalog or price list and
4 Verification of historical data for an item previously not determined commercial that the offeror is now trying to qualify as a commercial item
(check box(es) as appropriate)
|_| I Unmodified Commercial Items or Components (Complete Section A)
Any item other than real property that is a of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes and
(i) Has been sold leased or licensed to the general public or
(ii) Has been offered for sale lease or license to the general public
|_| II Item Evolved from Commercial Items or Components
Any item that evolved from an item described in Part I (which is required if claiming this exemption) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace but will be available in the commercial marketplace in time to satisfy the delivery requirements under a United States Government solicitation
If claiming the item Evolved from Commercial Items or Components exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use Part I)
|_| Yes|_| NO
If yes describe the relationship of the modifications to the Federal Government requirement enspenspenspenspensp
What are the advances in technology or performance between the offered item and the commercial item on which it is based enspenspenspenspensp
What is your support for such advances enspenspenspenspensp
What is your support for availability of the item in time to meet requirements Is the claim availability reasonable enspenspenspenspensp
Please provide data regarding
(a) Currently pending offers including
(b) Planned Offers Including
In all instances scheduled for delivery no later than the delivery requirements under the
(c) Data in the format of Part I for completed sales of the item from which the ldquocommercial itemrdquo evolved
|_| III Modified Commercial Items or Components
Any item that would satisfy a criterion expressed in Part I or II hereof but for -
|_| (i) Modifications of a type customarily available in the commercial marketplace
If claiming Modified Commercial Item or Components that are of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use part I or parts II and II)
|_| Yes|_| NO
What are the modifications that would be made to the commercial item enspenspenspenspensp
Are the modifications of a type customarily available in the commercial marketplace
|_| Yes|_| NO
Summarize your support for customary availability of the modification in the commercial marketplace enspenspenspenspensp
|_| (ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet federal government requirements ldquoMinor modificationsrdquo means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component or change the purpose of a process Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product Dollar values and percentages may be used as guideposts but are not conclusive evidence that a modification is minor
If claiming Modified Commercial Items or Components that are not of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Are the modifications made to satisfy Federal Government requirements
|_| Yes|_| NO
Do the modifications alter the nongovernmental function or essential physical characteristics of the item
|_| Yes|_| NO
If yes what are the alterations enspenspenspenspensp
Does the modified item retain a predominance of nongovernmental functions or physical characteristics
|_| Yes|_| NO
Summarize your support describing the value of the modifications in comparison to the value of the final product enspenspenspenspensp
Summarize your support for the magnitude or size of the modifications in relation to the magnitude or size of the final product enspenspenspenspensp
Are there any other factors which would allow you to conclude that the modifications are minor
|_| Yes|_| NO
If yes what are they enspenspenspenspensp
Based on the above does the modification qualify as a minor modification
|_| Yes|_| NO
Please provide data regarding the minor modification and the total price to PSEMC of Minor Modifications
Price to PSEMC of all Minor Modifications at quantities proposed in this pricing action enspenspenspenspensp
Minor modifications that exceed the thresholds in FAR 15403-1(c)(3)(iii)(B) are subject to the Certified Cost or Pricing Data requirements and must be proposed as described by FAR 15408 Table 152
|_| IV Commercial Items Support Services
Installation services maintenance services repair services training services and other services if -
(i) Such services are procured for support of an item referred to in Parts I II III or IV hereof regardless of whether such services are provided by the same source or at the same time as the item and
(ii) The source of such services provided similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government
If claiming Commercial Item Support Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services procured for the support of a commercial item which qualifies under a preceding part
|_| Yes|_| NO
Describe the nature of the services and how they support the commercial item enspenspenspenspensp
Are the services provided at the same time to the general public and the Federal Government
|_| Yes|_| NO
Are the terms and conditions for the services similar to those offered to the general public
|_| Yes|_| NO
Describe differences enspenspenspenspensp
Please provide data regarding
a Open and completed contracts including
b Pending offers including
|_| V Any Combination of Items
Meeting the requirements of Parts I II III or IV hereof that are of a type customarily combined and sold in combination to the general public
If you have checked the above box and are claiming the Any Combination of Items exemption please attach hereto information as requ3sted for Parts I II III and IV
|_| VI Other Commercial Services
Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions For purposes of these services -
(i) Catalog price means a price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor is either published or otherwise available for inspection by customers and states prices at which sales are currently or were last made to a significant number of buyers constituting the general public and
(ii) Market prices means current prices that are established in the course of ordinary trade between buyers and sellers free to bargain and that can be substantiated through competition or from source independent of the offerors
If claiming the Other Commercial Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services sold competitively in substantial quantities in the commercial marketplace
|_| Yes|_| NO
If no are the services of a type sold in substantial quantities in the commercial marketplace
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If yes what is the ldquotyperdquo of service enspenspenspenspensp
Summarize your support for same enspenspenspenspensp
Are the prices quoted for specific tasks performed or specific outcomes to be achieved
|_| Yes|_| NO
Are the services offered consistent with your standard terms and conditions
|_| Yes|_| NO
Are the services of a type sold at catalog or market prices
|_| Yes|_| NO
If sold at catalog price is the price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor
|_| Yes|_| NO
If sold at catalog price is the catalog or its equivalent either published or otherwise available for inspection by customers
|_| Yes|_| NO
Summarize your support for same (include a copy of the catalog or provide location) enspenspenspenspensp
If sold at a catalog price are the listed prices those at which sales are currently or were last made to a significant number of buyers in the general public
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If sold at a market price are the prices established in the course of ordinary trade between buyers and sellers free to bargain
|_| Yes|_| NO
Summarize you support for same enspenspenspenspensp
If sold at market price can the price be substantiated through competition or from sources independent of the offeror
|_| Yes|_| NO
Summarize your support for same
Please provide data regarding
(a) Open and completed contracts including
(b) Pending Offers including
|_| VII Any Item Combination of Items or Service
Referred to in Parts I through VI hereof notwithstanding the fact that the item combination of items or service is transferred between or among separate divisions subsidiaries or affiliates of the Offeror
If you have checked the above box and are claiming the ldquoAny item combination of items or Servicerdquo exemption please provide data regarding
|_| VIII Non-developmental Items
A non-developmental item as defined in FAR 2101 which has been developed exclusively at private expense and sold in substantial quantities on a competitive basis to multiple State and local governments
If claiming the Non-developmental Items exemption then the following must be provided
Key Inquiries and Summary of Supplierrsquos Supporting Information
Was the item previously developed
|_| Yes|_| NO
Was the item used exclusively for governmental purposes by a Federal agency a State or local government or a foreign government with which the United States has mutual defense cooperation agreement
|_| Yes|_| NO
If the item is to be modified do the modifications comply with Part III guidance on modifications
|_| Yes|_| NO
If the item is not yet in use does it otherwise qualify as a non-developmental item
|_| Yes|_| NO
Was the item developed exclusively at private expense
|_| Yes|_| NO
Is the item sold in substantial quantities on a competitive basis to multiple State and local governments
|_| Yes|_| NO
Please provide data regarding
|_| IX General Inquiries
Does the item qualify as a combination of items under Parts I II III and IV above
|_| Yes|_| NO
Has the item or services previously been determined to be commercial
|_| Yes|_| NO
If so by whom enspenspenspenspensp
|_| X Other Information
Is there other information of which you are aware that would supplement the information provided and would help substantiate whether the item or service is commercial
|_| Yes|_| NO
Have you provided such information
|_| Yes|_| NO
List such information enspenspenspenspensp
|_| XI Supplier Determination
Offeror hereby represents that the foregoing information is accurate and complete and that to the best of its knowledge information and belief goods and or services offered currently constitute ldquoa commercial itemrdquo as defined by FAR 2101
For PSEMC Internal Use Only
XII Supplier Determination
Supplier has claimed that the item component or service identified above is a commercial item under the definition at FAR 2101 I have reviewed and summarized the supplierrsquos support for that claim in the appropriate sections above Based on such review of such support information and any other information identified elsewhere herein I conclude that the supplier
|_| HAS |_| HAS NOT Supported its claim of commercial item status under the definition at FAR 2101
If the supplier HAS NOT supported its claim list reasons enspenspenspenspensp
Describe action plat to resolve enspenspenspenspensp
Comments enspenspenspenspensp
image1jpeg
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull This section of Table 15-2 describes the format an estimating approach we
are required to use when developing a proposal to modify an existingcontract In addition to the cost element breakdowns required as describedin the previous slides when there is a modification or change proposal FARalso requires the following table to be inserted into your proposal
41
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals
42FAR 15408 Table 15-2 III B
B Change Orders modifications and claims
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
Column 2 includes the cost of all work deleted This
includes cost of work deleted already performed (amount in Column 3) and
cost of work deleted not yet performed (Column 4)
Column 3 includes the cost of deleted work already
performed This amount will not be included in the credit (delete) adjustment amount (eg we will not give back costs already
incurred)
Column 4 includes cost for deleted work not yet performed ndash must be priced using current
estimates (but the current estimate may be the same as
the original estimate) ndash it is develed similar to a normal ldquoaddrdquo proposal with a few
exceptions
Column 5 includes the cost of the
new work and is developed as we do any
other proposal
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull Detail for columns listed on previous page
1 Enter appropriate cost element2 Enter current estimates of what it would take to complete the deleted work that
has not yet been performed3 Enter current cost of deleted work already performed This should be based on
actuals and copies to support these actuals should be included in the proposal4 Enter the net cost to be deleted (Column 2 minus Column 3)5 Enter your estimate for cost of work added by the change6 Enter the net cost of change (Column 5 minus Column 4)7 Identify where in your proposal the supporting documentation and basis of
estimate can be found for each of these sections
43FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull For purposes of determining if a proposal an cost or pricing data are
required from individual suppliers on a change proposal the absolute valueof the ldquodeleterdquo amount plus the ldquoaddrdquo amount is computed for each supplierthat exceeds the cost and pricing threshold (TINA)
bull Remember from FAR 15403-4(b) ndash if the absolute value for an individualsupplier exceeds the cost and pricing threshold (TINA) and the supplier iseither an actual supplier (will continue to provide partsservices on thiscontract) the supplier is required to provide a proposal and cost or pricingdata in support of the change proposal
bull Deleted amount is our current estimate (generally no the original contractvalue unless it is our current estimate)
44FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull If a supplierrsquos quantities are changing due to a modification the net delete
or add amount is used to determine if the supplier exceeds the cost andpricing threshold (TINA)
bull The estimator should not consider the old quantity as the delete and thenew quantity as the add (eg in computing absolute value) whendetermining if the supplier exceeds the threshold in cases where quantitiesare changing
bull The development of the appropriate deletion is not simply the estimatedcost of the deleted quantity ndash this will overstate the credit
45FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals Cost of WorkDeleted for a Partial Deleted Quantitybull In cases where part of a material quantity is being deleted (eg original
contract requires 100 widgets and the contract is modified to delete 30 ofthem) one method of estimating the amount of the delete is
1 Develop a current estimate of the extended cost for the item(s) given the originalquantity
2 Develop a current estimate of the extended cost for the items at the lower(remaining) quantity
3 The delta between these two values represents the amount of the delete
bull The same method can be used if the contract is modified to increase aquantity for a part
46FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklist
47
bull The Supplier Proposal Adequacy Checklist is accessed from the externalPSEMC supplier website
bull Additional supplier proposal guidance and resources are available(information templates and tools to assist in building a FAR compliantproposal
bull Supplier proposal guidance
bull Supplier Proposal Adequacy Guidelines
bull PSEMC document templates
bull Supplier proposal adequacy checklistbull Contract pricing proposal cover sheet
httpspsemccomsuppliers
- Strategic Affordability Analysis
- Purpose of this Guideline
- Table of Contents
- Table of Contents
- Supplier Proposal Adequacy Checklist
- Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
- Cover Sheet
- Cover Sheet Example ndash Reference Form DI-SUP-105F02
- Index
- Index Example
- Cost Element Breakdown by Line Item
- Cost Element Breakdown by Line Item Example
- Summary Cost Element Breakdown
- Summary Cost Element Breakdown - Example
- Summary Cost Element Breakdown - Example
- Material
- Material
- Individual Bills of Material Example
- Consolidated Bill of Material Example
- Consolidated Bill of Material
- Material
- Material
- Material
- Labor
- Labor
- Labor
- Labor Hours Example
- Labor Hours Example ndash Actual Production History
- Labor Hours Examples ndash Basis of Estimate
- Other Direct Costs (ODC)
- Nonrecurring Expenses (NRE)
- NRE
- Rates
- Rates
- Summary
- Summary
- Other Types of Proposals
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals Cost of WorkDeleted for a Partial Deleted Quantity
- Supplier Proposal Adequacy Checklist
-
| Buyer (Type or Print Name) | Date |
| Offeror | |||
| By | |||
| Title | |||
| Date |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp | ||
| (iii) Total number of customers involved in such sales | enspenspenspenspensp |
| (a) Transfer price(s) of such goods | $ enspenspenspenspensp | ||
| (b) Total units of such goods and or | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| Unmodified Items Identified in Part 1 | Modified Items Proposed to PSMEC | Unit Value of Modification | |||||||
| Unmodified Item | Unmodified Price | Modified Item | Modified Price to PSEMC | ||||||
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| To the general public in the time-frame beginning | enspenspenspenspensp | enspenspenspenspensp | and ending | enspenspenspenspensp |
| (a) Sales | |||||
| (b) Leases | |||||
| (c) Licenses | |||||
| (d) Offers to Sell 1 | |||||
| (e) Offers to Lease 2 | |||||
| (f) Offers to License 3 |
| Part Number | |||
| Description | |||
| Offeror |
| Completion of this checklist and supporting information is required for all single source proposals that exceed the TINA threshold where no valid exception (FAR 15403-1) applies If the supplier is claiming an exemption for commercial terms only the first line on the checklist is applicable | |||||
| Supplier enspenspenspenspensp | Supplier Proposal Number enspenspenspenspensp | ||||
| Exemption to CampP Data Commercial Item (Section 3 of Instruction) | |_| Support Included | Located in Section Page enspenspenspenspensp | |||
| Pricing Proposal Coversheet or Equivalent (21 of Instruction) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Point of Contact (21 of Instruction) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| DCMADCAA Points of Contact (Include Name Phone Address Cage Code and E-mail Address) (21 of Instruction) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Cost Element Detail and Cost Element Summary (24 of Instruction) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Individual Bill of Material and Consolidated Bill of Material (25 of Instruction) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Material Basis of Estimate (251 of Instruction) and Copies of POsQuotes | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Sub-tier Cost Analysis (if required) (251 of Instruction) | |_| Included | Located in Section Page or ECDs enspenspenspenspensp | |||
| Labor History (26 amp 261 of Instruction) and Basis of Estimate | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Support for ODC (27 of Instruction) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Support for Rates (17 and 28 of Instruction) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Nonrecurring Engineering (NRE) (14 and 15) Use of Government Property to Include Serial Tooling andor Special Test Equipment | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Expenditure Plan (Required to Support Cost Type Proposals or Performance Based Progress Payments) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Supplier | |||||
| By Signing below you are confirming that required cost and pricing data is part of your proposal and meets the requirements of Pacific Scientificrsquos proposal pricing instructions | |||||
| Sellerrsquos Representative (type or Print) enspenspenspenspensp | Signature enspenspenspenspensp | Date (MMDDYYYY) enspenspenspenspensp | |||
| Pacific Scientific | |||||
| By Signing below the supplier manager is confirming receipt of the items required for this proposal and meets the requirements of Pacific Scientificrsquos proposal pricing instructions | |||||
| Buyer (Type or Print) enspenspenspenspensp | Signature enspenspenspenspensp | Date (MMDDYYYY) enspenspenspenspensp | |||
| Supplier Manager (Type or Print) enspenspenspenspensp | Signature enspenspenspenspensp | Date (MMDDYYYY) enspenspenspenspensp |
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Table of Contentsbull When cost or pricing data is required the supplierrsquos proposal needs to
include the following sections
3
Required Items Page FAR Reference
Supplier Proposal Adequacy Checklist Pg 5-6 PSEMC Policy
Cover Sheet - SF1411 or equivalent Pg 7-8 FAR 15408 Table 15-2 I A
Index Pg 9-10 FAR 15408 Table 15-2 I B
Cost Element Breakdown Pg 11-12 FAR 15408 Table 15-2 I D
Summary Cost Element Breakdown Pg 13-15 FAR 15408 Table 15-2 I E
Material (Including Consolidated BOM) Pg 16-23 FAR 15408 Table 15-2 II A
Labor Pg 24-29 FAR 15408 Table 15-2 II B
ODC Pg 30 FAR 15408 Table 15-2 II D
NRE Pg 31-32 FAR 15408 Table 15-2 II
Rates Pg 33-34 FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Table of Contentsbull Summary cost element breakdowns and consolidated Bills of Material
(BOM) are the two most frequently missed items in supplier proposals
bull Additional areas of proposal support which are not applicable to most proposals
4
Required Items Page FAR Reference
Commercial Justification Pg 38-40 FAR 2101 amp FAR 15403
Change Proposal Pg 41-46 FAR 15408 Table 15-2 III B
Additional Guidance Pg 47 PSEMC Support
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklistbull PSEMC Policy requires suppliers to complete a PSEMC Supplier Proposal
Adequacy Checklist (sent with the RFP) for all proposals that exceed theCost amp Pricing Thresholdbull Additionally PSEMC request the cost element breakdown bill of material and labor
detail in Excel format
bull The purpose of this form is as followsbull To provide the supplier with a checklist to help ensure that all the supporting
documentation has been included so the proposal will be deemed adequate byPSEMC our customer and the DCAA
bull To provide PSEMC with a tool to more quickly verify where the supportingdocumentation can be found in the proposal
bull An example is provided on the next slide and under the commercialjustification section of this module
5
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
6
Proposal Pricing Instructions
Supplier Proposal Adequacy Checklist
Completion of this checklist and supporting information is required for all single source proposals that exceed the TINA threshold where no valid exception (FAR 15403-1) applies If the supplier is claiming an exemption for commercial terms only the first line on the checklist is applicable Supplier
Supplier Proposal Number
Exemption to CampP Data Commercial Item (Section 3 of Instruction)
Support Included
Located in Section Page
Pricing Proposal Coversheet or Equivalent (21 of Instruction)
Included Located in Section Page
Point of Contact (21 of Instruction) Included Located in Section Page
DCMADCAA Points of Contact (Include Name Phone Address Cage Code and E-mail Address) (21 of Instruction)
Included Located in Section Page
Cost Element Detail and Cost Element Summary (24 of Instruction)
Included Located in Section Page
Individual Bill of Material and Consolidated Bill of Material (25 of Instruction)
Included Located in Section Page
Material Basis of Estimate (251 of Instruction) and Copies of POsQuotes
Included Located in Section Page
Sub-tier Cost Analysis (if required) (251 of Instruction)
Included Located in Section Page or ECDs
Labor History (26 amp 261 of Instruction) and Basis of Estimate
Included Located in Section Page
Support for ODC (27 of Instruction) Included Located in Section Page
Support for Rates (17 and 28 of Instruction) Included Located in Section Page
Nonrecurring Engineering (NRE) (14 and 15) Use of Government Property to Include Serial Tooling andor Special Test Equipment
Included Located in Section Page
Expenditure Plan (Required to Support Cost Type Proposals or Performance Based Progress Payments)
Included Located in Section Page
Supplier By Signing below you are confirming that required cost and pricing data is part of your proposal and meets the requirements of Pacific Scientificrsquos proposal pricing instructions Sellerrsquos Representative (type or Print)
Signature
Date (MMDDYYYY)
Pacific Scientific By Signing below the supplier manager is confirming receipt of the items required for this proposal and meets the requirements of Pacific Scientificrsquos proposal pricing instructions Buyer (Type or Print)
Signature
Date (MMDDYYYY)
Supplier Manager (Type or Print)
Signature
Date (MMDDYYYY)
Proposal Pricing Instructions
Supplier Proposal Adequacy Checklist
image1jpeg
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Cover Sheetbull Include a cover sheet that includes the following information
bull Solicitation Numberbull Name and Address of offerorbull Name and Telephone number of point of contactbull Name address phone number and email for your DCMA and DCAAbull Type of contract actionbull Proposed cost profit or fee and total price ndash maximum proposal valuebull If you will require the use of government propertybull Whether your organization is subject to cost accounting standards (CAS) ndash see
details in FAR 15-408 Table 15-2 I A (8)bull The statement designated in FAR 15408 Table 15-2 I A (9)bull Date of Submissionbull Name title and signature of authorized representative
bull Most contractors use the Government Form 1411 or equivalent
bull An example is provided on the next slide
7
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Cover Sheet Example ndashReference Form DI-SUP-105F02
8
Point of Contact
Proposed Cost
Period of Performance
DCAA Contact Information
Include Statement from FAR 15408 Table 15-2 IA (9)
DCMA Contact Information
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Indexbull Include an index that references where the supporting data for your
estimates is located in the proposalbull The Index should include the following information
bull Title of information being referenced (Summary cost element breakdown materiallabor etc
bull Location in the proposal (page number or file name and page if located in a separatefiledocument)
bull An example is provided in the next slide
9
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Index ExampleProposal No HLQxxxxxDate January xx xxxx ABC Company
Index1 Cover sheet Page xx
2 Business section Page xx
21 Assumptions and Conditions Page xx
3 Pricing Page xx
31 Unit Pricing Page xx
32 Cost Element by Part Number Page xx
33 Cost Element Summary Page xx
4 Material Page xx
41 Bill of Materials by Part Number Page xx
42 Consolidated Bill of Materials Page xx
43 Purchase Orders and Quotes (File PO-QuotesPDF) Page xx
5 Labor Page xx
6 Etc Page xx
10
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Cost Element Breakdown by Line Itembull A cost element breakdown is required for each proposed line item If the
proposal covers multiple price points or multiple years a cost elementbreakdown will be required for each price point for each year
bull For example assume your proposal includes the following three line items
bull You would need to provide separate cost element breakdowns for parts ABCABB and the NRE See the next slide for an example
Slight differences due to rounding
11
Part Number Quantity Unit Price Total PricePart ABC 50 $12500 $625000Part ABB 75 $10300 $772500NRE 1 $145000Total $1542500
FAR 15408 Table 15-2 I D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Cost Element Breakdown by Line Item Example
12FAR 15408 Table 15-2 I D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summary Cost Element Breakdownbull When more than one contract line item (Part Number NRE etc) is
proposed you must provide summary total amounts covering all items foreach element of cost If the proposal covers a high mid and low point thesummary needs to only be for those points not all the differentcombinations that can result from range pricing If the proposal is formultiple years there needs to be a summary for each of the yearsbull For example if your proposal included the following
bull You would need to provide a summary by cost element that includes the totalproposed value of $1542500 See the next slide for an example showing thethree individual cost elements being combined into a summary
Slight differences due to rounding
13
Part Number Quantity Unit Price Total PricePart ABC 50 $12500 $625000Part ABB 75 $10300 $772500NRE 1 $145000Total $1542500
FAR 15408 Table 15-2 I E
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summary Cost Element Breakdown - Example
14FAR 15408 Table 15-2 I E
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summary Cost Element Breakdown - Example
15
bull If the proposal is a base year plus option years there needs to be asummary Cost Element Breakdown for each of the years at the points in theRFP requiring Cost or Pricing data
FAR 15408 Table 15-2 I E
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Include a BOM for each individual part proposed A BOM is a list of the raw
materials subassemblies etc needed to manufacture a product
bull Provide your BOMs in Excel formatbull The consolidated and individual BOMs need to identify the following for each line
itembull Part Number and descriptionbull Supplierbull Quantitybull Unit Price ndash Unit pricing on the BOM should tie to the supportbull Total Pricebull Basis for pricing (vendor quotes purchase orders)
Source of pricing (purchase order quotes etc) must be referenced in the BOM
bull PSEMC will require copies of the support (ie quotes purchase orders) for asample of the items on the BOM during the cost analysis
16FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull If attritionyield or scrap are added to your material you will need to submit
adequate basis of estimates and support as appropriate
bull There are time when your BOM may be impacted by minimum buys or NREthat is passed along from your supplier If this happens make sure this isclearly identified on the BOM and the support quotes or purchase orders
bull In addition to the individual BOMs FAR requires a consolidated BOM inyour proposal A consolidated BOM is a listing of the material needed forthe proposal A consolidated BOM combines all the materials for each ofthe parts being procured as well as assemblies services or materialassociated with NRE
17FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Individual Bills of Material Example
18
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Consolidated Bill of Material Examplebull Below is an example of a consolidated BOM This BOM was developed by
taking the three individual BOMrsquos on the previous page and combining themtogetherbull In a consolidated BOM part numbers and quantities should be combined (or
subtotaled) if they are the same parts For example the BOMs for Part Nos ABCand ABB both require the same Connector and Screw In the consolidated BOMthe requirements have been combined and reflect the total number of Connectorsand Screws that will be needed for this proposal
19
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Consolidated Bill of Materialbull If the proposal is for a base year plus option years there needs to be a
consolidated BOM for each of the years at each of the points in the RFPrequiring cost or pricing
bull To determine if a subtier cost analysis is required you need to add togetherthe anticipated costs for each supplier for all years In the above examplethere are two suppliers that will require cost analysis (Ford and Motion)
20
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Supplier proposals
bull A cost analysis report is required if any of your suppliersrsquo proposals exceedthe Truth in Negotiations Act (TINA) threshold These need to be submittedwith your proposal
bull If the cost analysis for a supplier is not complete at the time of your proposalsubmittal a schedule listing the estimated completion dates for each supplierneeds to be provided in the proposal
bull If an exemption applies that eliminates the need for a cost analysis (commercial orcompetitively priced) documentation needs to be provided to support these claims
21FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull If you claim your supplier was competed and the value is over the TINA
threshold you will need to provide the following
bull Evidence that an RFP or solicitation to bid was sent to two or more supplierscapable of providing the goods or services requested
bull Copies of the quotes received from each of the suppliers who were competedbull Supplierrsquos analysis with basis of rationale for why the winning bid represents the best value
(lowest price technical considerations etc)
bull If you claim your supplierrsquos parts or services are commercial refer to thecommercial section in this document
22FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Refer to the detailed instructions in the RFP when your proposal supports a
base year plus options contract or a long term agreement Guidance shouldbe provided here on the consolidation and subtier requirements If youhave any questions regarding this contact your PSEMC Supply Chainrepresentative
bull Inter-organizational costs
bull Inter-organizational costs are defined as the costs of items transferred betweendivisions within the same company
bull If you have bid any inter-organizational costs in your proposal you will need toprovide a cost element breakdown for each inter-organizational transfer andsupport as appropriate
bull One more thing
bull If you have a supplier with a value in excess of $135 million or is greater than 10percent of your total proposal and exceeds the TINA threshold FAR 15408 Table15-2 requires that we submit the supplierrsquos proposal and cost or pricing data withour own proposal
23FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Provide a time-phased (eg monthly quarterly) breakdown of labor hours ratesand cost by appropriate category and furnish basis for estimates
24FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Proposed labor hours are generally a combination of direct and support laborhours
bull Direct Labor Hours ndash Hours that can be identified specifically to a final end itembull Support Labor Hours ndash Hours that cannot be specifically identified to one end item For
example a production manager may be in charge of overseeing the manufacturing ofmultiple parts
25FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull You need to provide a breakdown of the labor hours by labor category and
function along with a basis of estimate for the proposed labor hours
bull For example if you propose 500 hours for an end item you would need to providea breakdown by categoryfunction (assembly inspection supervisor engineeretc) You also will need to provide a detailed basis of estimate for eachcategoryfunction showing how your arrived at the hours for the proposed laborcategory
bull Generally the basis should be actual production history An alternative approach isthe use of engineering estimates if the item has not been manufactured before
bull Cost Accounting Standards (CAS) 401 requires that a company isconsistent between proposals and accounting practices The way acompany estimates its labor hours needs to also be the way it accumulatesits production history
26FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours ExampleProposal No HLQxxxxxDate January 1 20xx ABC Corporation
Labor HoursProposed Labor Hours ndash 8279 hrsunit for Part ABC
27
Direct Labor HrsUnitAssembly 3800 Machinist 350 QA 762 Engineer 1 238
Subtotal 5151
Production Support HrsUnitMfg Supervisor 920Eng Supervisor 368QA supervisor 920Production Mgr 920
Subtotal 3128
Total Hrs 8279
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Example ndash Actual Production History
28
ProposedDuration - Months 7 9 24 12 Qty 30 39 110 50 End Date 11152006 982007 912009
Direct Labor Total Hrs HrsUnit Total Hours HrsUnit Total Hrs HrsUnit Total Hrs HrsUnitAssembly 1836 6120 1675 4295 4338 3944 1900 3800 Machinist 169 564 154 396 400 363 175 350 QA 368 1238 336 862 870 791 381 762 Engineer 1 115 383 105 269 272 247 119 238
Production Support Total Hrs Total Hrs Total Hrs Total Hrs HrsUnitMFG Supervisor 268 345 920 460 920 Eng Supervisor 107 138 184 184 368 QA Supervisor 268 345 920 460 920 Production Mgr 268 345 920 460 920
HrsUnit 8279
Acutal Production History - Part ABC
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Examples ndash Basis of Estimatebull Basis of estimate for direct labor
bull Proposed direct labor hours were developed by apply a 90 percent learningcurve to the production labor history for part BBC You need to provide abasis for the 90 percent curve
bull Basis of estimate for the manufacturing supervisorbull The manufacturing supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 920 hours were used over a 24-month periodSince the current proposal has been estimated to cover 12 months 460hours were applied to the manufacturing supervisor (920 divided by 2)
bull Basis of estimate for engineering supervisorbull The engineering supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 184 hours were necessary to complete the taskThis task is similar and so we estimate 184 hours
29
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Direct Costs (ODC)bull List other expenses not otherwise included under material and labor (eg
travel freight) and provide basis for pricing
bull For example the basis for travel would include the location number of tripsnumber of people attending and the estimated expenses for the travel
30FAR 15408 Table 15-2 II D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Nonrecurring Expenses (NRE)bull NRE refers to one-time costs that you would not normally see from proposal
to proposal
bull Examples of NRE are as follows
bull Special Toolingbull New Equipmentbull Equipment Refurbishmentbull Hours and materials associated with increase throughput capacitybull Hours and materials to research develop design and test new processesbull One-Time review events
31FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
NREbull As mentioned earlier NRE charges must be broken out by cost element
This means the material and labor components associated with the NREare clearly broken out
bull Material ndash any material associated with NRE should be supported by supplierquotes or purchase orders
bull Labor ndash labor hours associated with NRE should have basis of estimates(BOE) that are broken down by labor category and include detaileddescriptions of the tasks that will be performed
32FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Rates include direct labor overhead general and administrative expenses
(GampA) and cost of money (COM)
bull PSEMC has the capability to perform rate audits on suppliers in lieu ofhaving the DCAA do this
bull If you allow PSEMC to perform this rate audit you need to provide thefollowing information
bull Explanation as to how the rates were calculatedbull Detailed documentation (financial statements labor pools listing of unallowable
expenses etc) that support the rate calculationsbull If the detailed documentation is based on budgetary numbers you will also need
to provide three years of your most current actuals to support you budgetarynumbers
bull If budgetary numbers differ significantly from the most recent actuals providedetailed explanations for these differences
33FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Facilities Capital COM
bull When you elect to claim COM submit a completed form CASB-CFM (FacilitiesCapital Cost of Money Factors Computation) in accordance with FAR 31205-10Also complete DD Form 1861 and include a copy in your proposal submissionBoth forms can be found on-line at various locations
34FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull In summary all noncompetitive noncommercial proposals valued at more
than the cost and pricing threshold (TINA) are required to include thefollowing information
35
Required Items Page FAR Reference
Supplier Proposal Adequacy Checklist Pg 5-6 PSEMC Policy
Cover Sheet - SF1411 or equivalent Pg 7-8 FAR 15408 Table 15-2 I A
Index Pg 9-10 FAR 15408 Table 15-2 I B
Cost Element Breakdown Pg 11-12 FAR 15408 Table 15-2 I D
Summary Cost Element Breakdown Pg 13-15 FAR 15408 Table 15-2 I E
Material (Including Consolidated BOM) Pg 16-23 FAR 15408 Table 15-2 II A
Labor Pg 24-29 FAR 15408 Table 15-2 II B
ODC Pg 30 FAR 15408 Table 15-2 II D
NRE Pg 31-32 FAR 15408 Table 15-2 II
Rates Pg 33-34 FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull Sufficient rationale and supporting documentation to support each of the
proposed cost elements is also required
bull Obtaining adequate supplier proposals is always on the critical path sincePSEMC cannot submit its proposal to the government until it has receivedadequate proposals from its subcontractors Therefore it is critical thatadequate supplier proposals are obtained as quickly as possible
36
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Types of Proposalsbull Commercial item proposals
bull Change proposals
bull The following slides are only applicable in certain situations
37
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you or one of your suppliers is providing a commercial part cost or pricing
data and a cost analysis is not required However you must demonstrate that the part is commercial and that the price is reasonable
bull A commercial item is any item other than real property that is a type customarily used by the general public or by a nongovernment entity
bull Has also been sold leased or licensed to the general public or has been offered for sale lease or license to the general public
bull A final commercial determination is made by the government contracting officer If the items is deemed to not be commercial the supplier is required to submit a complete proposal that includes cost and pricing data
38FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you claim one or more of your parts are commercial you need to support
your position by providing the following information
bull Copies of applicable portions of a company catalogue or website address that shows the item with a description and unit price
bull Show that these items can be purchased by the general public or nongovernmentalagency
bull If a website or catalogue is not available copies of invoices showing the sale of these items to nongovernment entities is sufficient
39FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull PSEMC policy requires suppliers to complete a PSEMC Supplier Proposal
Adequacy Checklist (sent with the RFP) for all proposals where the supplierclaims its parts are commercial
bull An example of the Supplier Proposal Adequacy Checklist for commercialitems is attached reference form DI-SUP-310F01
40PSEMC Policy
Pacific Scientific EMC ndash Commercial Item Status
If claiming an exemption offeror must provide the appropriate information to determine commerciality Refusal to provide the required information can result in an assist audit being requested from the Defense Contract Audit Agency or other cognizant Government Audit Agencies and or a determination that goods andor services offered do not constitute a ldquocommercial itemrdquo
Offeror hereby represents that to the best of its knowledge information and belief goods andor services offered constitute a ldquocommercial itemrdquo as defined by FAR 2101 because it constitutes
A Commercial Item or Component Justification (required for any claim)
Key Inquiries and Summary of your Supporting Information
What is the relevant ldquotyperdquo of item enspenspenspenspensp
What are the types of items uses by the general public or by non-governmental entities for other than governmental purposes enspenspenspenspensp
What indicates the type of itemrsquos use described above is customary enspenspenspenspensp
Has the offered item itself (as opposed to the type of item) been sold or offered for sale
|_| Yes|_| NO
Are the offered itemrsquos sales (or offers to sale) to the general public
|_| Yes|_| NO
Please provide data regarding sales leases or licenses of this item and identification of the non-government use entities
ValueNon-Government Use Entities
(date)(date)
In addition as an appendix to this commercial item determination provide supporting documentation in the form of
1that have not materialized into sales
2that have not materialized into leases
3that have not materialized into licenses
1 Verification of sales history to source documents
2 Identification of customarily offered discounts for the item
3 Verification of the item to an existing catalog or price list and
4 Verification of historical data for an item previously not determined commercial that the offeror is now trying to qualify as a commercial item
(check box(es) as appropriate)
|_| I Unmodified Commercial Items or Components (Complete Section A)
Any item other than real property that is a of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes and
(i) Has been sold leased or licensed to the general public or
(ii) Has been offered for sale lease or license to the general public
|_| II Item Evolved from Commercial Items or Components
Any item that evolved from an item described in Part I (which is required if claiming this exemption) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace but will be available in the commercial marketplace in time to satisfy the delivery requirements under a United States Government solicitation
If claiming the item Evolved from Commercial Items or Components exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use Part I)
|_| Yes|_| NO
If yes describe the relationship of the modifications to the Federal Government requirement enspenspenspenspensp
What are the advances in technology or performance between the offered item and the commercial item on which it is based enspenspenspenspensp
What is your support for such advances enspenspenspenspensp
What is your support for availability of the item in time to meet requirements Is the claim availability reasonable enspenspenspenspensp
Please provide data regarding
(a) Currently pending offers including
(b) Planned Offers Including
In all instances scheduled for delivery no later than the delivery requirements under the
(c) Data in the format of Part I for completed sales of the item from which the ldquocommercial itemrdquo evolved
|_| III Modified Commercial Items or Components
Any item that would satisfy a criterion expressed in Part I or II hereof but for -
|_| (i) Modifications of a type customarily available in the commercial marketplace
If claiming Modified Commercial Item or Components that are of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use part I or parts II and II)
|_| Yes|_| NO
What are the modifications that would be made to the commercial item enspenspenspenspensp
Are the modifications of a type customarily available in the commercial marketplace
|_| Yes|_| NO
Summarize your support for customary availability of the modification in the commercial marketplace enspenspenspenspensp
|_| (ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet federal government requirements ldquoMinor modificationsrdquo means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component or change the purpose of a process Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product Dollar values and percentages may be used as guideposts but are not conclusive evidence that a modification is minor
If claiming Modified Commercial Items or Components that are not of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Are the modifications made to satisfy Federal Government requirements
|_| Yes|_| NO
Do the modifications alter the nongovernmental function or essential physical characteristics of the item
|_| Yes|_| NO
If yes what are the alterations enspenspenspenspensp
Does the modified item retain a predominance of nongovernmental functions or physical characteristics
|_| Yes|_| NO
Summarize your support describing the value of the modifications in comparison to the value of the final product enspenspenspenspensp
Summarize your support for the magnitude or size of the modifications in relation to the magnitude or size of the final product enspenspenspenspensp
Are there any other factors which would allow you to conclude that the modifications are minor
|_| Yes|_| NO
If yes what are they enspenspenspenspensp
Based on the above does the modification qualify as a minor modification
|_| Yes|_| NO
Please provide data regarding the minor modification and the total price to PSEMC of Minor Modifications
Price to PSEMC of all Minor Modifications at quantities proposed in this pricing action enspenspenspenspensp
Minor modifications that exceed the thresholds in FAR 15403-1(c)(3)(iii)(B) are subject to the Certified Cost or Pricing Data requirements and must be proposed as described by FAR 15408 Table 152
|_| IV Commercial Items Support Services
Installation services maintenance services repair services training services and other services if -
(i) Such services are procured for support of an item referred to in Parts I II III or IV hereof regardless of whether such services are provided by the same source or at the same time as the item and
(ii) The source of such services provided similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government
If claiming Commercial Item Support Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services procured for the support of a commercial item which qualifies under a preceding part
|_| Yes|_| NO
Describe the nature of the services and how they support the commercial item enspenspenspenspensp
Are the services provided at the same time to the general public and the Federal Government
|_| Yes|_| NO
Are the terms and conditions for the services similar to those offered to the general public
|_| Yes|_| NO
Describe differences enspenspenspenspensp
Please provide data regarding
a Open and completed contracts including
b Pending offers including
|_| V Any Combination of Items
Meeting the requirements of Parts I II III or IV hereof that are of a type customarily combined and sold in combination to the general public
If you have checked the above box and are claiming the Any Combination of Items exemption please attach hereto information as requ3sted for Parts I II III and IV
|_| VI Other Commercial Services
Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions For purposes of these services -
(i) Catalog price means a price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor is either published or otherwise available for inspection by customers and states prices at which sales are currently or were last made to a significant number of buyers constituting the general public and
(ii) Market prices means current prices that are established in the course of ordinary trade between buyers and sellers free to bargain and that can be substantiated through competition or from source independent of the offerors
If claiming the Other Commercial Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services sold competitively in substantial quantities in the commercial marketplace
|_| Yes|_| NO
If no are the services of a type sold in substantial quantities in the commercial marketplace
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If yes what is the ldquotyperdquo of service enspenspenspenspensp
Summarize your support for same enspenspenspenspensp
Are the prices quoted for specific tasks performed or specific outcomes to be achieved
|_| Yes|_| NO
Are the services offered consistent with your standard terms and conditions
|_| Yes|_| NO
Are the services of a type sold at catalog or market prices
|_| Yes|_| NO
If sold at catalog price is the price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor
|_| Yes|_| NO
If sold at catalog price is the catalog or its equivalent either published or otherwise available for inspection by customers
|_| Yes|_| NO
Summarize your support for same (include a copy of the catalog or provide location) enspenspenspenspensp
If sold at a catalog price are the listed prices those at which sales are currently or were last made to a significant number of buyers in the general public
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If sold at a market price are the prices established in the course of ordinary trade between buyers and sellers free to bargain
|_| Yes|_| NO
Summarize you support for same enspenspenspenspensp
If sold at market price can the price be substantiated through competition or from sources independent of the offeror
|_| Yes|_| NO
Summarize your support for same
Please provide data regarding
(a) Open and completed contracts including
(b) Pending Offers including
|_| VII Any Item Combination of Items or Service
Referred to in Parts I through VI hereof notwithstanding the fact that the item combination of items or service is transferred between or among separate divisions subsidiaries or affiliates of the Offeror
If you have checked the above box and are claiming the ldquoAny item combination of items or Servicerdquo exemption please provide data regarding
|_| VIII Non-developmental Items
A non-developmental item as defined in FAR 2101 which has been developed exclusively at private expense and sold in substantial quantities on a competitive basis to multiple State and local governments
If claiming the Non-developmental Items exemption then the following must be provided
Key Inquiries and Summary of Supplierrsquos Supporting Information
Was the item previously developed
|_| Yes|_| NO
Was the item used exclusively for governmental purposes by a Federal agency a State or local government or a foreign government with which the United States has mutual defense cooperation agreement
|_| Yes|_| NO
If the item is to be modified do the modifications comply with Part III guidance on modifications
|_| Yes|_| NO
If the item is not yet in use does it otherwise qualify as a non-developmental item
|_| Yes|_| NO
Was the item developed exclusively at private expense
|_| Yes|_| NO
Is the item sold in substantial quantities on a competitive basis to multiple State and local governments
|_| Yes|_| NO
Please provide data regarding
|_| IX General Inquiries
Does the item qualify as a combination of items under Parts I II III and IV above
|_| Yes|_| NO
Has the item or services previously been determined to be commercial
|_| Yes|_| NO
If so by whom enspenspenspenspensp
|_| X Other Information
Is there other information of which you are aware that would supplement the information provided and would help substantiate whether the item or service is commercial
|_| Yes|_| NO
Have you provided such information
|_| Yes|_| NO
List such information enspenspenspenspensp
|_| XI Supplier Determination
Offeror hereby represents that the foregoing information is accurate and complete and that to the best of its knowledge information and belief goods and or services offered currently constitute ldquoa commercial itemrdquo as defined by FAR 2101
For PSEMC Internal Use Only
XII Supplier Determination
Supplier has claimed that the item component or service identified above is a commercial item under the definition at FAR 2101 I have reviewed and summarized the supplierrsquos support for that claim in the appropriate sections above Based on such review of such support information and any other information identified elsewhere herein I conclude that the supplier
|_| HAS |_| HAS NOT Supported its claim of commercial item status under the definition at FAR 2101
If the supplier HAS NOT supported its claim list reasons enspenspenspenspensp
Describe action plat to resolve enspenspenspenspensp
Comments enspenspenspenspensp
image1jpeg
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull This section of Table 15-2 describes the format an estimating approach we
are required to use when developing a proposal to modify an existingcontract In addition to the cost element breakdowns required as describedin the previous slides when there is a modification or change proposal FARalso requires the following table to be inserted into your proposal
41
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals
42FAR 15408 Table 15-2 III B
B Change Orders modifications and claims
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
Column 2 includes the cost of all work deleted This
includes cost of work deleted already performed (amount in Column 3) and
cost of work deleted not yet performed (Column 4)
Column 3 includes the cost of deleted work already
performed This amount will not be included in the credit (delete) adjustment amount (eg we will not give back costs already
incurred)
Column 4 includes cost for deleted work not yet performed ndash must be priced using current
estimates (but the current estimate may be the same as
the original estimate) ndash it is develed similar to a normal ldquoaddrdquo proposal with a few
exceptions
Column 5 includes the cost of the
new work and is developed as we do any
other proposal
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull Detail for columns listed on previous page
1 Enter appropriate cost element2 Enter current estimates of what it would take to complete the deleted work that
has not yet been performed3 Enter current cost of deleted work already performed This should be based on
actuals and copies to support these actuals should be included in the proposal4 Enter the net cost to be deleted (Column 2 minus Column 3)5 Enter your estimate for cost of work added by the change6 Enter the net cost of change (Column 5 minus Column 4)7 Identify where in your proposal the supporting documentation and basis of
estimate can be found for each of these sections
43FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull For purposes of determining if a proposal an cost or pricing data are
required from individual suppliers on a change proposal the absolute valueof the ldquodeleterdquo amount plus the ldquoaddrdquo amount is computed for each supplierthat exceeds the cost and pricing threshold (TINA)
bull Remember from FAR 15403-4(b) ndash if the absolute value for an individualsupplier exceeds the cost and pricing threshold (TINA) and the supplier iseither an actual supplier (will continue to provide partsservices on thiscontract) the supplier is required to provide a proposal and cost or pricingdata in support of the change proposal
bull Deleted amount is our current estimate (generally no the original contractvalue unless it is our current estimate)
44FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull If a supplierrsquos quantities are changing due to a modification the net delete
or add amount is used to determine if the supplier exceeds the cost andpricing threshold (TINA)
bull The estimator should not consider the old quantity as the delete and thenew quantity as the add (eg in computing absolute value) whendetermining if the supplier exceeds the threshold in cases where quantitiesare changing
bull The development of the appropriate deletion is not simply the estimatedcost of the deleted quantity ndash this will overstate the credit
45FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals Cost of WorkDeleted for a Partial Deleted Quantitybull In cases where part of a material quantity is being deleted (eg original
contract requires 100 widgets and the contract is modified to delete 30 ofthem) one method of estimating the amount of the delete is
1 Develop a current estimate of the extended cost for the item(s) given the originalquantity
2 Develop a current estimate of the extended cost for the items at the lower(remaining) quantity
3 The delta between these two values represents the amount of the delete
bull The same method can be used if the contract is modified to increase aquantity for a part
46FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklist
47
bull The Supplier Proposal Adequacy Checklist is accessed from the externalPSEMC supplier website
bull Additional supplier proposal guidance and resources are available(information templates and tools to assist in building a FAR compliantproposal
bull Supplier proposal guidance
bull Supplier Proposal Adequacy Guidelines
bull PSEMC document templates
bull Supplier proposal adequacy checklistbull Contract pricing proposal cover sheet
httpspsemccomsuppliers
- Strategic Affordability Analysis
- Purpose of this Guideline
- Table of Contents
- Table of Contents
- Supplier Proposal Adequacy Checklist
- Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
- Cover Sheet
- Cover Sheet Example ndash Reference Form DI-SUP-105F02
- Index
- Index Example
- Cost Element Breakdown by Line Item
- Cost Element Breakdown by Line Item Example
- Summary Cost Element Breakdown
- Summary Cost Element Breakdown - Example
- Summary Cost Element Breakdown - Example
- Material
- Material
- Individual Bills of Material Example
- Consolidated Bill of Material Example
- Consolidated Bill of Material
- Material
- Material
- Material
- Labor
- Labor
- Labor
- Labor Hours Example
- Labor Hours Example ndash Actual Production History
- Labor Hours Examples ndash Basis of Estimate
- Other Direct Costs (ODC)
- Nonrecurring Expenses (NRE)
- NRE
- Rates
- Rates
- Summary
- Summary
- Other Types of Proposals
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals Cost of WorkDeleted for a Partial Deleted Quantity
- Supplier Proposal Adequacy Checklist
-
| Buyer (Type or Print Name) | Date |
| Offeror | |||
| By | |||
| Title | |||
| Date |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp | ||
| (iii) Total number of customers involved in such sales | enspenspenspenspensp |
| (a) Transfer price(s) of such goods | $ enspenspenspenspensp | ||
| (b) Total units of such goods and or | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| Unmodified Items Identified in Part 1 | Modified Items Proposed to PSMEC | Unit Value of Modification | |||||||
| Unmodified Item | Unmodified Price | Modified Item | Modified Price to PSEMC | ||||||
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| To the general public in the time-frame beginning | enspenspenspenspensp | enspenspenspenspensp | and ending | enspenspenspenspensp |
| (a) Sales | |||||
| (b) Leases | |||||
| (c) Licenses | |||||
| (d) Offers to Sell 1 | |||||
| (e) Offers to Lease 2 | |||||
| (f) Offers to License 3 |
| Part Number | |||
| Description | |||
| Offeror |
| Completion of this checklist and supporting information is required for all single source proposals that exceed the TINA threshold where no valid exception (FAR 15403-1) applies If the supplier is claiming an exemption for commercial terms only the first line on the checklist is applicable | |||||
| Supplier enspenspenspenspensp | Supplier Proposal Number enspenspenspenspensp | ||||
| Exemption to CampP Data Commercial Item (Section 3 of Instruction) | |_| Support Included | Located in Section Page enspenspenspenspensp | |||
| Pricing Proposal Coversheet or Equivalent (21 of Instruction) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Point of Contact (21 of Instruction) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| DCMADCAA Points of Contact (Include Name Phone Address Cage Code and E-mail Address) (21 of Instruction) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Cost Element Detail and Cost Element Summary (24 of Instruction) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Individual Bill of Material and Consolidated Bill of Material (25 of Instruction) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Material Basis of Estimate (251 of Instruction) and Copies of POsQuotes | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Sub-tier Cost Analysis (if required) (251 of Instruction) | |_| Included | Located in Section Page or ECDs enspenspenspenspensp | |||
| Labor History (26 amp 261 of Instruction) and Basis of Estimate | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Support for ODC (27 of Instruction) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Support for Rates (17 and 28 of Instruction) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Nonrecurring Engineering (NRE) (14 and 15) Use of Government Property to Include Serial Tooling andor Special Test Equipment | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Expenditure Plan (Required to Support Cost Type Proposals or Performance Based Progress Payments) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Supplier | |||||
| By Signing below you are confirming that required cost and pricing data is part of your proposal and meets the requirements of Pacific Scientificrsquos proposal pricing instructions | |||||
| Sellerrsquos Representative (type or Print) enspenspenspenspensp | Signature enspenspenspenspensp | Date (MMDDYYYY) enspenspenspenspensp | |||
| Pacific Scientific | |||||
| By Signing below the supplier manager is confirming receipt of the items required for this proposal and meets the requirements of Pacific Scientificrsquos proposal pricing instructions | |||||
| Buyer (Type or Print) enspenspenspenspensp | Signature enspenspenspenspensp | Date (MMDDYYYY) enspenspenspenspensp | |||
| Supplier Manager (Type or Print) enspenspenspenspensp | Signature enspenspenspenspensp | Date (MMDDYYYY) enspenspenspenspensp |
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Table of Contentsbull Summary cost element breakdowns and consolidated Bills of Material
(BOM) are the two most frequently missed items in supplier proposals
bull Additional areas of proposal support which are not applicable to most proposals
4
Required Items Page FAR Reference
Commercial Justification Pg 38-40 FAR 2101 amp FAR 15403
Change Proposal Pg 41-46 FAR 15408 Table 15-2 III B
Additional Guidance Pg 47 PSEMC Support
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklistbull PSEMC Policy requires suppliers to complete a PSEMC Supplier Proposal
Adequacy Checklist (sent with the RFP) for all proposals that exceed theCost amp Pricing Thresholdbull Additionally PSEMC request the cost element breakdown bill of material and labor
detail in Excel format
bull The purpose of this form is as followsbull To provide the supplier with a checklist to help ensure that all the supporting
documentation has been included so the proposal will be deemed adequate byPSEMC our customer and the DCAA
bull To provide PSEMC with a tool to more quickly verify where the supportingdocumentation can be found in the proposal
bull An example is provided on the next slide and under the commercialjustification section of this module
5
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
6
Proposal Pricing Instructions
Supplier Proposal Adequacy Checklist
Completion of this checklist and supporting information is required for all single source proposals that exceed the TINA threshold where no valid exception (FAR 15403-1) applies If the supplier is claiming an exemption for commercial terms only the first line on the checklist is applicable Supplier
Supplier Proposal Number
Exemption to CampP Data Commercial Item (Section 3 of Instruction)
Support Included
Located in Section Page
Pricing Proposal Coversheet or Equivalent (21 of Instruction)
Included Located in Section Page
Point of Contact (21 of Instruction) Included Located in Section Page
DCMADCAA Points of Contact (Include Name Phone Address Cage Code and E-mail Address) (21 of Instruction)
Included Located in Section Page
Cost Element Detail and Cost Element Summary (24 of Instruction)
Included Located in Section Page
Individual Bill of Material and Consolidated Bill of Material (25 of Instruction)
Included Located in Section Page
Material Basis of Estimate (251 of Instruction) and Copies of POsQuotes
Included Located in Section Page
Sub-tier Cost Analysis (if required) (251 of Instruction)
Included Located in Section Page or ECDs
Labor History (26 amp 261 of Instruction) and Basis of Estimate
Included Located in Section Page
Support for ODC (27 of Instruction) Included Located in Section Page
Support for Rates (17 and 28 of Instruction) Included Located in Section Page
Nonrecurring Engineering (NRE) (14 and 15) Use of Government Property to Include Serial Tooling andor Special Test Equipment
Included Located in Section Page
Expenditure Plan (Required to Support Cost Type Proposals or Performance Based Progress Payments)
Included Located in Section Page
Supplier By Signing below you are confirming that required cost and pricing data is part of your proposal and meets the requirements of Pacific Scientificrsquos proposal pricing instructions Sellerrsquos Representative (type or Print)
Signature
Date (MMDDYYYY)
Pacific Scientific By Signing below the supplier manager is confirming receipt of the items required for this proposal and meets the requirements of Pacific Scientificrsquos proposal pricing instructions Buyer (Type or Print)
Signature
Date (MMDDYYYY)
Supplier Manager (Type or Print)
Signature
Date (MMDDYYYY)
Proposal Pricing Instructions
Supplier Proposal Adequacy Checklist
image1jpeg
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Cover Sheetbull Include a cover sheet that includes the following information
bull Solicitation Numberbull Name and Address of offerorbull Name and Telephone number of point of contactbull Name address phone number and email for your DCMA and DCAAbull Type of contract actionbull Proposed cost profit or fee and total price ndash maximum proposal valuebull If you will require the use of government propertybull Whether your organization is subject to cost accounting standards (CAS) ndash see
details in FAR 15-408 Table 15-2 I A (8)bull The statement designated in FAR 15408 Table 15-2 I A (9)bull Date of Submissionbull Name title and signature of authorized representative
bull Most contractors use the Government Form 1411 or equivalent
bull An example is provided on the next slide
7
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Cover Sheet Example ndashReference Form DI-SUP-105F02
8
Point of Contact
Proposed Cost
Period of Performance
DCAA Contact Information
Include Statement from FAR 15408 Table 15-2 IA (9)
DCMA Contact Information
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Indexbull Include an index that references where the supporting data for your
estimates is located in the proposalbull The Index should include the following information
bull Title of information being referenced (Summary cost element breakdown materiallabor etc
bull Location in the proposal (page number or file name and page if located in a separatefiledocument)
bull An example is provided in the next slide
9
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Index ExampleProposal No HLQxxxxxDate January xx xxxx ABC Company
Index1 Cover sheet Page xx
2 Business section Page xx
21 Assumptions and Conditions Page xx
3 Pricing Page xx
31 Unit Pricing Page xx
32 Cost Element by Part Number Page xx
33 Cost Element Summary Page xx
4 Material Page xx
41 Bill of Materials by Part Number Page xx
42 Consolidated Bill of Materials Page xx
43 Purchase Orders and Quotes (File PO-QuotesPDF) Page xx
5 Labor Page xx
6 Etc Page xx
10
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Cost Element Breakdown by Line Itembull A cost element breakdown is required for each proposed line item If the
proposal covers multiple price points or multiple years a cost elementbreakdown will be required for each price point for each year
bull For example assume your proposal includes the following three line items
bull You would need to provide separate cost element breakdowns for parts ABCABB and the NRE See the next slide for an example
Slight differences due to rounding
11
Part Number Quantity Unit Price Total PricePart ABC 50 $12500 $625000Part ABB 75 $10300 $772500NRE 1 $145000Total $1542500
FAR 15408 Table 15-2 I D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Cost Element Breakdown by Line Item Example
12FAR 15408 Table 15-2 I D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summary Cost Element Breakdownbull When more than one contract line item (Part Number NRE etc) is
proposed you must provide summary total amounts covering all items foreach element of cost If the proposal covers a high mid and low point thesummary needs to only be for those points not all the differentcombinations that can result from range pricing If the proposal is formultiple years there needs to be a summary for each of the yearsbull For example if your proposal included the following
bull You would need to provide a summary by cost element that includes the totalproposed value of $1542500 See the next slide for an example showing thethree individual cost elements being combined into a summary
Slight differences due to rounding
13
Part Number Quantity Unit Price Total PricePart ABC 50 $12500 $625000Part ABB 75 $10300 $772500NRE 1 $145000Total $1542500
FAR 15408 Table 15-2 I E
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summary Cost Element Breakdown - Example
14FAR 15408 Table 15-2 I E
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summary Cost Element Breakdown - Example
15
bull If the proposal is a base year plus option years there needs to be asummary Cost Element Breakdown for each of the years at the points in theRFP requiring Cost or Pricing data
FAR 15408 Table 15-2 I E
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Include a BOM for each individual part proposed A BOM is a list of the raw
materials subassemblies etc needed to manufacture a product
bull Provide your BOMs in Excel formatbull The consolidated and individual BOMs need to identify the following for each line
itembull Part Number and descriptionbull Supplierbull Quantitybull Unit Price ndash Unit pricing on the BOM should tie to the supportbull Total Pricebull Basis for pricing (vendor quotes purchase orders)
Source of pricing (purchase order quotes etc) must be referenced in the BOM
bull PSEMC will require copies of the support (ie quotes purchase orders) for asample of the items on the BOM during the cost analysis
16FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull If attritionyield or scrap are added to your material you will need to submit
adequate basis of estimates and support as appropriate
bull There are time when your BOM may be impacted by minimum buys or NREthat is passed along from your supplier If this happens make sure this isclearly identified on the BOM and the support quotes or purchase orders
bull In addition to the individual BOMs FAR requires a consolidated BOM inyour proposal A consolidated BOM is a listing of the material needed forthe proposal A consolidated BOM combines all the materials for each ofthe parts being procured as well as assemblies services or materialassociated with NRE
17FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Individual Bills of Material Example
18
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Consolidated Bill of Material Examplebull Below is an example of a consolidated BOM This BOM was developed by
taking the three individual BOMrsquos on the previous page and combining themtogetherbull In a consolidated BOM part numbers and quantities should be combined (or
subtotaled) if they are the same parts For example the BOMs for Part Nos ABCand ABB both require the same Connector and Screw In the consolidated BOMthe requirements have been combined and reflect the total number of Connectorsand Screws that will be needed for this proposal
19
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Consolidated Bill of Materialbull If the proposal is for a base year plus option years there needs to be a
consolidated BOM for each of the years at each of the points in the RFPrequiring cost or pricing
bull To determine if a subtier cost analysis is required you need to add togetherthe anticipated costs for each supplier for all years In the above examplethere are two suppliers that will require cost analysis (Ford and Motion)
20
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Supplier proposals
bull A cost analysis report is required if any of your suppliersrsquo proposals exceedthe Truth in Negotiations Act (TINA) threshold These need to be submittedwith your proposal
bull If the cost analysis for a supplier is not complete at the time of your proposalsubmittal a schedule listing the estimated completion dates for each supplierneeds to be provided in the proposal
bull If an exemption applies that eliminates the need for a cost analysis (commercial orcompetitively priced) documentation needs to be provided to support these claims
21FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull If you claim your supplier was competed and the value is over the TINA
threshold you will need to provide the following
bull Evidence that an RFP or solicitation to bid was sent to two or more supplierscapable of providing the goods or services requested
bull Copies of the quotes received from each of the suppliers who were competedbull Supplierrsquos analysis with basis of rationale for why the winning bid represents the best value
(lowest price technical considerations etc)
bull If you claim your supplierrsquos parts or services are commercial refer to thecommercial section in this document
22FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Refer to the detailed instructions in the RFP when your proposal supports a
base year plus options contract or a long term agreement Guidance shouldbe provided here on the consolidation and subtier requirements If youhave any questions regarding this contact your PSEMC Supply Chainrepresentative
bull Inter-organizational costs
bull Inter-organizational costs are defined as the costs of items transferred betweendivisions within the same company
bull If you have bid any inter-organizational costs in your proposal you will need toprovide a cost element breakdown for each inter-organizational transfer andsupport as appropriate
bull One more thing
bull If you have a supplier with a value in excess of $135 million or is greater than 10percent of your total proposal and exceeds the TINA threshold FAR 15408 Table15-2 requires that we submit the supplierrsquos proposal and cost or pricing data withour own proposal
23FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Provide a time-phased (eg monthly quarterly) breakdown of labor hours ratesand cost by appropriate category and furnish basis for estimates
24FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Proposed labor hours are generally a combination of direct and support laborhours
bull Direct Labor Hours ndash Hours that can be identified specifically to a final end itembull Support Labor Hours ndash Hours that cannot be specifically identified to one end item For
example a production manager may be in charge of overseeing the manufacturing ofmultiple parts
25FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull You need to provide a breakdown of the labor hours by labor category and
function along with a basis of estimate for the proposed labor hours
bull For example if you propose 500 hours for an end item you would need to providea breakdown by categoryfunction (assembly inspection supervisor engineeretc) You also will need to provide a detailed basis of estimate for eachcategoryfunction showing how your arrived at the hours for the proposed laborcategory
bull Generally the basis should be actual production history An alternative approach isthe use of engineering estimates if the item has not been manufactured before
bull Cost Accounting Standards (CAS) 401 requires that a company isconsistent between proposals and accounting practices The way acompany estimates its labor hours needs to also be the way it accumulatesits production history
26FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours ExampleProposal No HLQxxxxxDate January 1 20xx ABC Corporation
Labor HoursProposed Labor Hours ndash 8279 hrsunit for Part ABC
27
Direct Labor HrsUnitAssembly 3800 Machinist 350 QA 762 Engineer 1 238
Subtotal 5151
Production Support HrsUnitMfg Supervisor 920Eng Supervisor 368QA supervisor 920Production Mgr 920
Subtotal 3128
Total Hrs 8279
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Example ndash Actual Production History
28
ProposedDuration - Months 7 9 24 12 Qty 30 39 110 50 End Date 11152006 982007 912009
Direct Labor Total Hrs HrsUnit Total Hours HrsUnit Total Hrs HrsUnit Total Hrs HrsUnitAssembly 1836 6120 1675 4295 4338 3944 1900 3800 Machinist 169 564 154 396 400 363 175 350 QA 368 1238 336 862 870 791 381 762 Engineer 1 115 383 105 269 272 247 119 238
Production Support Total Hrs Total Hrs Total Hrs Total Hrs HrsUnitMFG Supervisor 268 345 920 460 920 Eng Supervisor 107 138 184 184 368 QA Supervisor 268 345 920 460 920 Production Mgr 268 345 920 460 920
HrsUnit 8279
Acutal Production History - Part ABC
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Examples ndash Basis of Estimatebull Basis of estimate for direct labor
bull Proposed direct labor hours were developed by apply a 90 percent learningcurve to the production labor history for part BBC You need to provide abasis for the 90 percent curve
bull Basis of estimate for the manufacturing supervisorbull The manufacturing supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 920 hours were used over a 24-month periodSince the current proposal has been estimated to cover 12 months 460hours were applied to the manufacturing supervisor (920 divided by 2)
bull Basis of estimate for engineering supervisorbull The engineering supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 184 hours were necessary to complete the taskThis task is similar and so we estimate 184 hours
29
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Direct Costs (ODC)bull List other expenses not otherwise included under material and labor (eg
travel freight) and provide basis for pricing
bull For example the basis for travel would include the location number of tripsnumber of people attending and the estimated expenses for the travel
30FAR 15408 Table 15-2 II D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Nonrecurring Expenses (NRE)bull NRE refers to one-time costs that you would not normally see from proposal
to proposal
bull Examples of NRE are as follows
bull Special Toolingbull New Equipmentbull Equipment Refurbishmentbull Hours and materials associated with increase throughput capacitybull Hours and materials to research develop design and test new processesbull One-Time review events
31FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
NREbull As mentioned earlier NRE charges must be broken out by cost element
This means the material and labor components associated with the NREare clearly broken out
bull Material ndash any material associated with NRE should be supported by supplierquotes or purchase orders
bull Labor ndash labor hours associated with NRE should have basis of estimates(BOE) that are broken down by labor category and include detaileddescriptions of the tasks that will be performed
32FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Rates include direct labor overhead general and administrative expenses
(GampA) and cost of money (COM)
bull PSEMC has the capability to perform rate audits on suppliers in lieu ofhaving the DCAA do this
bull If you allow PSEMC to perform this rate audit you need to provide thefollowing information
bull Explanation as to how the rates were calculatedbull Detailed documentation (financial statements labor pools listing of unallowable
expenses etc) that support the rate calculationsbull If the detailed documentation is based on budgetary numbers you will also need
to provide three years of your most current actuals to support you budgetarynumbers
bull If budgetary numbers differ significantly from the most recent actuals providedetailed explanations for these differences
33FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Facilities Capital COM
bull When you elect to claim COM submit a completed form CASB-CFM (FacilitiesCapital Cost of Money Factors Computation) in accordance with FAR 31205-10Also complete DD Form 1861 and include a copy in your proposal submissionBoth forms can be found on-line at various locations
34FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull In summary all noncompetitive noncommercial proposals valued at more
than the cost and pricing threshold (TINA) are required to include thefollowing information
35
Required Items Page FAR Reference
Supplier Proposal Adequacy Checklist Pg 5-6 PSEMC Policy
Cover Sheet - SF1411 or equivalent Pg 7-8 FAR 15408 Table 15-2 I A
Index Pg 9-10 FAR 15408 Table 15-2 I B
Cost Element Breakdown Pg 11-12 FAR 15408 Table 15-2 I D
Summary Cost Element Breakdown Pg 13-15 FAR 15408 Table 15-2 I E
Material (Including Consolidated BOM) Pg 16-23 FAR 15408 Table 15-2 II A
Labor Pg 24-29 FAR 15408 Table 15-2 II B
ODC Pg 30 FAR 15408 Table 15-2 II D
NRE Pg 31-32 FAR 15408 Table 15-2 II
Rates Pg 33-34 FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull Sufficient rationale and supporting documentation to support each of the
proposed cost elements is also required
bull Obtaining adequate supplier proposals is always on the critical path sincePSEMC cannot submit its proposal to the government until it has receivedadequate proposals from its subcontractors Therefore it is critical thatadequate supplier proposals are obtained as quickly as possible
36
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Types of Proposalsbull Commercial item proposals
bull Change proposals
bull The following slides are only applicable in certain situations
37
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you or one of your suppliers is providing a commercial part cost or pricing
data and a cost analysis is not required However you must demonstrate that the part is commercial and that the price is reasonable
bull A commercial item is any item other than real property that is a type customarily used by the general public or by a nongovernment entity
bull Has also been sold leased or licensed to the general public or has been offered for sale lease or license to the general public
bull A final commercial determination is made by the government contracting officer If the items is deemed to not be commercial the supplier is required to submit a complete proposal that includes cost and pricing data
38FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you claim one or more of your parts are commercial you need to support
your position by providing the following information
bull Copies of applicable portions of a company catalogue or website address that shows the item with a description and unit price
bull Show that these items can be purchased by the general public or nongovernmentalagency
bull If a website or catalogue is not available copies of invoices showing the sale of these items to nongovernment entities is sufficient
39FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull PSEMC policy requires suppliers to complete a PSEMC Supplier Proposal
Adequacy Checklist (sent with the RFP) for all proposals where the supplierclaims its parts are commercial
bull An example of the Supplier Proposal Adequacy Checklist for commercialitems is attached reference form DI-SUP-310F01
40PSEMC Policy
Pacific Scientific EMC ndash Commercial Item Status
If claiming an exemption offeror must provide the appropriate information to determine commerciality Refusal to provide the required information can result in an assist audit being requested from the Defense Contract Audit Agency or other cognizant Government Audit Agencies and or a determination that goods andor services offered do not constitute a ldquocommercial itemrdquo
Offeror hereby represents that to the best of its knowledge information and belief goods andor services offered constitute a ldquocommercial itemrdquo as defined by FAR 2101 because it constitutes
A Commercial Item or Component Justification (required for any claim)
Key Inquiries and Summary of your Supporting Information
What is the relevant ldquotyperdquo of item enspenspenspenspensp
What are the types of items uses by the general public or by non-governmental entities for other than governmental purposes enspenspenspenspensp
What indicates the type of itemrsquos use described above is customary enspenspenspenspensp
Has the offered item itself (as opposed to the type of item) been sold or offered for sale
|_| Yes|_| NO
Are the offered itemrsquos sales (or offers to sale) to the general public
|_| Yes|_| NO
Please provide data regarding sales leases or licenses of this item and identification of the non-government use entities
ValueNon-Government Use Entities
(date)(date)
In addition as an appendix to this commercial item determination provide supporting documentation in the form of
1that have not materialized into sales
2that have not materialized into leases
3that have not materialized into licenses
1 Verification of sales history to source documents
2 Identification of customarily offered discounts for the item
3 Verification of the item to an existing catalog or price list and
4 Verification of historical data for an item previously not determined commercial that the offeror is now trying to qualify as a commercial item
(check box(es) as appropriate)
|_| I Unmodified Commercial Items or Components (Complete Section A)
Any item other than real property that is a of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes and
(i) Has been sold leased or licensed to the general public or
(ii) Has been offered for sale lease or license to the general public
|_| II Item Evolved from Commercial Items or Components
Any item that evolved from an item described in Part I (which is required if claiming this exemption) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace but will be available in the commercial marketplace in time to satisfy the delivery requirements under a United States Government solicitation
If claiming the item Evolved from Commercial Items or Components exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use Part I)
|_| Yes|_| NO
If yes describe the relationship of the modifications to the Federal Government requirement enspenspenspenspensp
What are the advances in technology or performance between the offered item and the commercial item on which it is based enspenspenspenspensp
What is your support for such advances enspenspenspenspensp
What is your support for availability of the item in time to meet requirements Is the claim availability reasonable enspenspenspenspensp
Please provide data regarding
(a) Currently pending offers including
(b) Planned Offers Including
In all instances scheduled for delivery no later than the delivery requirements under the
(c) Data in the format of Part I for completed sales of the item from which the ldquocommercial itemrdquo evolved
|_| III Modified Commercial Items or Components
Any item that would satisfy a criterion expressed in Part I or II hereof but for -
|_| (i) Modifications of a type customarily available in the commercial marketplace
If claiming Modified Commercial Item or Components that are of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use part I or parts II and II)
|_| Yes|_| NO
What are the modifications that would be made to the commercial item enspenspenspenspensp
Are the modifications of a type customarily available in the commercial marketplace
|_| Yes|_| NO
Summarize your support for customary availability of the modification in the commercial marketplace enspenspenspenspensp
|_| (ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet federal government requirements ldquoMinor modificationsrdquo means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component or change the purpose of a process Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product Dollar values and percentages may be used as guideposts but are not conclusive evidence that a modification is minor
If claiming Modified Commercial Items or Components that are not of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Are the modifications made to satisfy Federal Government requirements
|_| Yes|_| NO
Do the modifications alter the nongovernmental function or essential physical characteristics of the item
|_| Yes|_| NO
If yes what are the alterations enspenspenspenspensp
Does the modified item retain a predominance of nongovernmental functions or physical characteristics
|_| Yes|_| NO
Summarize your support describing the value of the modifications in comparison to the value of the final product enspenspenspenspensp
Summarize your support for the magnitude or size of the modifications in relation to the magnitude or size of the final product enspenspenspenspensp
Are there any other factors which would allow you to conclude that the modifications are minor
|_| Yes|_| NO
If yes what are they enspenspenspenspensp
Based on the above does the modification qualify as a minor modification
|_| Yes|_| NO
Please provide data regarding the minor modification and the total price to PSEMC of Minor Modifications
Price to PSEMC of all Minor Modifications at quantities proposed in this pricing action enspenspenspenspensp
Minor modifications that exceed the thresholds in FAR 15403-1(c)(3)(iii)(B) are subject to the Certified Cost or Pricing Data requirements and must be proposed as described by FAR 15408 Table 152
|_| IV Commercial Items Support Services
Installation services maintenance services repair services training services and other services if -
(i) Such services are procured for support of an item referred to in Parts I II III or IV hereof regardless of whether such services are provided by the same source or at the same time as the item and
(ii) The source of such services provided similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government
If claiming Commercial Item Support Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services procured for the support of a commercial item which qualifies under a preceding part
|_| Yes|_| NO
Describe the nature of the services and how they support the commercial item enspenspenspenspensp
Are the services provided at the same time to the general public and the Federal Government
|_| Yes|_| NO
Are the terms and conditions for the services similar to those offered to the general public
|_| Yes|_| NO
Describe differences enspenspenspenspensp
Please provide data regarding
a Open and completed contracts including
b Pending offers including
|_| V Any Combination of Items
Meeting the requirements of Parts I II III or IV hereof that are of a type customarily combined and sold in combination to the general public
If you have checked the above box and are claiming the Any Combination of Items exemption please attach hereto information as requ3sted for Parts I II III and IV
|_| VI Other Commercial Services
Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions For purposes of these services -
(i) Catalog price means a price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor is either published or otherwise available for inspection by customers and states prices at which sales are currently or were last made to a significant number of buyers constituting the general public and
(ii) Market prices means current prices that are established in the course of ordinary trade between buyers and sellers free to bargain and that can be substantiated through competition or from source independent of the offerors
If claiming the Other Commercial Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services sold competitively in substantial quantities in the commercial marketplace
|_| Yes|_| NO
If no are the services of a type sold in substantial quantities in the commercial marketplace
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If yes what is the ldquotyperdquo of service enspenspenspenspensp
Summarize your support for same enspenspenspenspensp
Are the prices quoted for specific tasks performed or specific outcomes to be achieved
|_| Yes|_| NO
Are the services offered consistent with your standard terms and conditions
|_| Yes|_| NO
Are the services of a type sold at catalog or market prices
|_| Yes|_| NO
If sold at catalog price is the price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor
|_| Yes|_| NO
If sold at catalog price is the catalog or its equivalent either published or otherwise available for inspection by customers
|_| Yes|_| NO
Summarize your support for same (include a copy of the catalog or provide location) enspenspenspenspensp
If sold at a catalog price are the listed prices those at which sales are currently or were last made to a significant number of buyers in the general public
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If sold at a market price are the prices established in the course of ordinary trade between buyers and sellers free to bargain
|_| Yes|_| NO
Summarize you support for same enspenspenspenspensp
If sold at market price can the price be substantiated through competition or from sources independent of the offeror
|_| Yes|_| NO
Summarize your support for same
Please provide data regarding
(a) Open and completed contracts including
(b) Pending Offers including
|_| VII Any Item Combination of Items or Service
Referred to in Parts I through VI hereof notwithstanding the fact that the item combination of items or service is transferred between or among separate divisions subsidiaries or affiliates of the Offeror
If you have checked the above box and are claiming the ldquoAny item combination of items or Servicerdquo exemption please provide data regarding
|_| VIII Non-developmental Items
A non-developmental item as defined in FAR 2101 which has been developed exclusively at private expense and sold in substantial quantities on a competitive basis to multiple State and local governments
If claiming the Non-developmental Items exemption then the following must be provided
Key Inquiries and Summary of Supplierrsquos Supporting Information
Was the item previously developed
|_| Yes|_| NO
Was the item used exclusively for governmental purposes by a Federal agency a State or local government or a foreign government with which the United States has mutual defense cooperation agreement
|_| Yes|_| NO
If the item is to be modified do the modifications comply with Part III guidance on modifications
|_| Yes|_| NO
If the item is not yet in use does it otherwise qualify as a non-developmental item
|_| Yes|_| NO
Was the item developed exclusively at private expense
|_| Yes|_| NO
Is the item sold in substantial quantities on a competitive basis to multiple State and local governments
|_| Yes|_| NO
Please provide data regarding
|_| IX General Inquiries
Does the item qualify as a combination of items under Parts I II III and IV above
|_| Yes|_| NO
Has the item or services previously been determined to be commercial
|_| Yes|_| NO
If so by whom enspenspenspenspensp
|_| X Other Information
Is there other information of which you are aware that would supplement the information provided and would help substantiate whether the item or service is commercial
|_| Yes|_| NO
Have you provided such information
|_| Yes|_| NO
List such information enspenspenspenspensp
|_| XI Supplier Determination
Offeror hereby represents that the foregoing information is accurate and complete and that to the best of its knowledge information and belief goods and or services offered currently constitute ldquoa commercial itemrdquo as defined by FAR 2101
For PSEMC Internal Use Only
XII Supplier Determination
Supplier has claimed that the item component or service identified above is a commercial item under the definition at FAR 2101 I have reviewed and summarized the supplierrsquos support for that claim in the appropriate sections above Based on such review of such support information and any other information identified elsewhere herein I conclude that the supplier
|_| HAS |_| HAS NOT Supported its claim of commercial item status under the definition at FAR 2101
If the supplier HAS NOT supported its claim list reasons enspenspenspenspensp
Describe action plat to resolve enspenspenspenspensp
Comments enspenspenspenspensp
image1jpeg
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull This section of Table 15-2 describes the format an estimating approach we
are required to use when developing a proposal to modify an existingcontract In addition to the cost element breakdowns required as describedin the previous slides when there is a modification or change proposal FARalso requires the following table to be inserted into your proposal
41
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals
42FAR 15408 Table 15-2 III B
B Change Orders modifications and claims
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
Column 2 includes the cost of all work deleted This
includes cost of work deleted already performed (amount in Column 3) and
cost of work deleted not yet performed (Column 4)
Column 3 includes the cost of deleted work already
performed This amount will not be included in the credit (delete) adjustment amount (eg we will not give back costs already
incurred)
Column 4 includes cost for deleted work not yet performed ndash must be priced using current
estimates (but the current estimate may be the same as
the original estimate) ndash it is develed similar to a normal ldquoaddrdquo proposal with a few
exceptions
Column 5 includes the cost of the
new work and is developed as we do any
other proposal
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull Detail for columns listed on previous page
1 Enter appropriate cost element2 Enter current estimates of what it would take to complete the deleted work that
has not yet been performed3 Enter current cost of deleted work already performed This should be based on
actuals and copies to support these actuals should be included in the proposal4 Enter the net cost to be deleted (Column 2 minus Column 3)5 Enter your estimate for cost of work added by the change6 Enter the net cost of change (Column 5 minus Column 4)7 Identify where in your proposal the supporting documentation and basis of
estimate can be found for each of these sections
43FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull For purposes of determining if a proposal an cost or pricing data are
required from individual suppliers on a change proposal the absolute valueof the ldquodeleterdquo amount plus the ldquoaddrdquo amount is computed for each supplierthat exceeds the cost and pricing threshold (TINA)
bull Remember from FAR 15403-4(b) ndash if the absolute value for an individualsupplier exceeds the cost and pricing threshold (TINA) and the supplier iseither an actual supplier (will continue to provide partsservices on thiscontract) the supplier is required to provide a proposal and cost or pricingdata in support of the change proposal
bull Deleted amount is our current estimate (generally no the original contractvalue unless it is our current estimate)
44FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull If a supplierrsquos quantities are changing due to a modification the net delete
or add amount is used to determine if the supplier exceeds the cost andpricing threshold (TINA)
bull The estimator should not consider the old quantity as the delete and thenew quantity as the add (eg in computing absolute value) whendetermining if the supplier exceeds the threshold in cases where quantitiesare changing
bull The development of the appropriate deletion is not simply the estimatedcost of the deleted quantity ndash this will overstate the credit
45FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals Cost of WorkDeleted for a Partial Deleted Quantitybull In cases where part of a material quantity is being deleted (eg original
contract requires 100 widgets and the contract is modified to delete 30 ofthem) one method of estimating the amount of the delete is
1 Develop a current estimate of the extended cost for the item(s) given the originalquantity
2 Develop a current estimate of the extended cost for the items at the lower(remaining) quantity
3 The delta between these two values represents the amount of the delete
bull The same method can be used if the contract is modified to increase aquantity for a part
46FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklist
47
bull The Supplier Proposal Adequacy Checklist is accessed from the externalPSEMC supplier website
bull Additional supplier proposal guidance and resources are available(information templates and tools to assist in building a FAR compliantproposal
bull Supplier proposal guidance
bull Supplier Proposal Adequacy Guidelines
bull PSEMC document templates
bull Supplier proposal adequacy checklistbull Contract pricing proposal cover sheet
httpspsemccomsuppliers
- Strategic Affordability Analysis
- Purpose of this Guideline
- Table of Contents
- Table of Contents
- Supplier Proposal Adequacy Checklist
- Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
- Cover Sheet
- Cover Sheet Example ndash Reference Form DI-SUP-105F02
- Index
- Index Example
- Cost Element Breakdown by Line Item
- Cost Element Breakdown by Line Item Example
- Summary Cost Element Breakdown
- Summary Cost Element Breakdown - Example
- Summary Cost Element Breakdown - Example
- Material
- Material
- Individual Bills of Material Example
- Consolidated Bill of Material Example
- Consolidated Bill of Material
- Material
- Material
- Material
- Labor
- Labor
- Labor
- Labor Hours Example
- Labor Hours Example ndash Actual Production History
- Labor Hours Examples ndash Basis of Estimate
- Other Direct Costs (ODC)
- Nonrecurring Expenses (NRE)
- NRE
- Rates
- Rates
- Summary
- Summary
- Other Types of Proposals
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals Cost of WorkDeleted for a Partial Deleted Quantity
- Supplier Proposal Adequacy Checklist
-
| Buyer (Type or Print Name) | Date |
| Offeror | |||
| By | |||
| Title | |||
| Date |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp | ||
| (iii) Total number of customers involved in such sales | enspenspenspenspensp |
| (a) Transfer price(s) of such goods | $ enspenspenspenspensp | ||
| (b) Total units of such goods and or | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| Unmodified Items Identified in Part 1 | Modified Items Proposed to PSMEC | Unit Value of Modification | |||||||
| Unmodified Item | Unmodified Price | Modified Item | Modified Price to PSEMC | ||||||
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| To the general public in the time-frame beginning | enspenspenspenspensp | enspenspenspenspensp | and ending | enspenspenspenspensp |
| (a) Sales | |||||
| (b) Leases | |||||
| (c) Licenses | |||||
| (d) Offers to Sell 1 | |||||
| (e) Offers to Lease 2 | |||||
| (f) Offers to License 3 |
| Part Number | |||
| Description | |||
| Offeror |
| Completion of this checklist and supporting information is required for all single source proposals that exceed the TINA threshold where no valid exception (FAR 15403-1) applies If the supplier is claiming an exemption for commercial terms only the first line on the checklist is applicable | |||||
| Supplier enspenspenspenspensp | Supplier Proposal Number enspenspenspenspensp | ||||
| Exemption to CampP Data Commercial Item (Section 3 of Instruction) | |_| Support Included | Located in Section Page enspenspenspenspensp | |||
| Pricing Proposal Coversheet or Equivalent (21 of Instruction) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Point of Contact (21 of Instruction) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| DCMADCAA Points of Contact (Include Name Phone Address Cage Code and E-mail Address) (21 of Instruction) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Cost Element Detail and Cost Element Summary (24 of Instruction) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Individual Bill of Material and Consolidated Bill of Material (25 of Instruction) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Material Basis of Estimate (251 of Instruction) and Copies of POsQuotes | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Sub-tier Cost Analysis (if required) (251 of Instruction) | |_| Included | Located in Section Page or ECDs enspenspenspenspensp | |||
| Labor History (26 amp 261 of Instruction) and Basis of Estimate | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Support for ODC (27 of Instruction) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Support for Rates (17 and 28 of Instruction) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Nonrecurring Engineering (NRE) (14 and 15) Use of Government Property to Include Serial Tooling andor Special Test Equipment | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Expenditure Plan (Required to Support Cost Type Proposals or Performance Based Progress Payments) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Supplier | |||||
| By Signing below you are confirming that required cost and pricing data is part of your proposal and meets the requirements of Pacific Scientificrsquos proposal pricing instructions | |||||
| Sellerrsquos Representative (type or Print) enspenspenspenspensp | Signature enspenspenspenspensp | Date (MMDDYYYY) enspenspenspenspensp | |||
| Pacific Scientific | |||||
| By Signing below the supplier manager is confirming receipt of the items required for this proposal and meets the requirements of Pacific Scientificrsquos proposal pricing instructions | |||||
| Buyer (Type or Print) enspenspenspenspensp | Signature enspenspenspenspensp | Date (MMDDYYYY) enspenspenspenspensp | |||
| Supplier Manager (Type or Print) enspenspenspenspensp | Signature enspenspenspenspensp | Date (MMDDYYYY) enspenspenspenspensp |
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklistbull PSEMC Policy requires suppliers to complete a PSEMC Supplier Proposal
Adequacy Checklist (sent with the RFP) for all proposals that exceed theCost amp Pricing Thresholdbull Additionally PSEMC request the cost element breakdown bill of material and labor
detail in Excel format
bull The purpose of this form is as followsbull To provide the supplier with a checklist to help ensure that all the supporting
documentation has been included so the proposal will be deemed adequate byPSEMC our customer and the DCAA
bull To provide PSEMC with a tool to more quickly verify where the supportingdocumentation can be found in the proposal
bull An example is provided on the next slide and under the commercialjustification section of this module
5
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
6
Proposal Pricing Instructions
Supplier Proposal Adequacy Checklist
Completion of this checklist and supporting information is required for all single source proposals that exceed the TINA threshold where no valid exception (FAR 15403-1) applies If the supplier is claiming an exemption for commercial terms only the first line on the checklist is applicable Supplier
Supplier Proposal Number
Exemption to CampP Data Commercial Item (Section 3 of Instruction)
Support Included
Located in Section Page
Pricing Proposal Coversheet or Equivalent (21 of Instruction)
Included Located in Section Page
Point of Contact (21 of Instruction) Included Located in Section Page
DCMADCAA Points of Contact (Include Name Phone Address Cage Code and E-mail Address) (21 of Instruction)
Included Located in Section Page
Cost Element Detail and Cost Element Summary (24 of Instruction)
Included Located in Section Page
Individual Bill of Material and Consolidated Bill of Material (25 of Instruction)
Included Located in Section Page
Material Basis of Estimate (251 of Instruction) and Copies of POsQuotes
Included Located in Section Page
Sub-tier Cost Analysis (if required) (251 of Instruction)
Included Located in Section Page or ECDs
Labor History (26 amp 261 of Instruction) and Basis of Estimate
Included Located in Section Page
Support for ODC (27 of Instruction) Included Located in Section Page
Support for Rates (17 and 28 of Instruction) Included Located in Section Page
Nonrecurring Engineering (NRE) (14 and 15) Use of Government Property to Include Serial Tooling andor Special Test Equipment
Included Located in Section Page
Expenditure Plan (Required to Support Cost Type Proposals or Performance Based Progress Payments)
Included Located in Section Page
Supplier By Signing below you are confirming that required cost and pricing data is part of your proposal and meets the requirements of Pacific Scientificrsquos proposal pricing instructions Sellerrsquos Representative (type or Print)
Signature
Date (MMDDYYYY)
Pacific Scientific By Signing below the supplier manager is confirming receipt of the items required for this proposal and meets the requirements of Pacific Scientificrsquos proposal pricing instructions Buyer (Type or Print)
Signature
Date (MMDDYYYY)
Supplier Manager (Type or Print)
Signature
Date (MMDDYYYY)
Proposal Pricing Instructions
Supplier Proposal Adequacy Checklist
image1jpeg
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Cover Sheetbull Include a cover sheet that includes the following information
bull Solicitation Numberbull Name and Address of offerorbull Name and Telephone number of point of contactbull Name address phone number and email for your DCMA and DCAAbull Type of contract actionbull Proposed cost profit or fee and total price ndash maximum proposal valuebull If you will require the use of government propertybull Whether your organization is subject to cost accounting standards (CAS) ndash see
details in FAR 15-408 Table 15-2 I A (8)bull The statement designated in FAR 15408 Table 15-2 I A (9)bull Date of Submissionbull Name title and signature of authorized representative
bull Most contractors use the Government Form 1411 or equivalent
bull An example is provided on the next slide
7
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Cover Sheet Example ndashReference Form DI-SUP-105F02
8
Point of Contact
Proposed Cost
Period of Performance
DCAA Contact Information
Include Statement from FAR 15408 Table 15-2 IA (9)
DCMA Contact Information
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Indexbull Include an index that references where the supporting data for your
estimates is located in the proposalbull The Index should include the following information
bull Title of information being referenced (Summary cost element breakdown materiallabor etc
bull Location in the proposal (page number or file name and page if located in a separatefiledocument)
bull An example is provided in the next slide
9
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Index ExampleProposal No HLQxxxxxDate January xx xxxx ABC Company
Index1 Cover sheet Page xx
2 Business section Page xx
21 Assumptions and Conditions Page xx
3 Pricing Page xx
31 Unit Pricing Page xx
32 Cost Element by Part Number Page xx
33 Cost Element Summary Page xx
4 Material Page xx
41 Bill of Materials by Part Number Page xx
42 Consolidated Bill of Materials Page xx
43 Purchase Orders and Quotes (File PO-QuotesPDF) Page xx
5 Labor Page xx
6 Etc Page xx
10
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Cost Element Breakdown by Line Itembull A cost element breakdown is required for each proposed line item If the
proposal covers multiple price points or multiple years a cost elementbreakdown will be required for each price point for each year
bull For example assume your proposal includes the following three line items
bull You would need to provide separate cost element breakdowns for parts ABCABB and the NRE See the next slide for an example
Slight differences due to rounding
11
Part Number Quantity Unit Price Total PricePart ABC 50 $12500 $625000Part ABB 75 $10300 $772500NRE 1 $145000Total $1542500
FAR 15408 Table 15-2 I D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Cost Element Breakdown by Line Item Example
12FAR 15408 Table 15-2 I D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summary Cost Element Breakdownbull When more than one contract line item (Part Number NRE etc) is
proposed you must provide summary total amounts covering all items foreach element of cost If the proposal covers a high mid and low point thesummary needs to only be for those points not all the differentcombinations that can result from range pricing If the proposal is formultiple years there needs to be a summary for each of the yearsbull For example if your proposal included the following
bull You would need to provide a summary by cost element that includes the totalproposed value of $1542500 See the next slide for an example showing thethree individual cost elements being combined into a summary
Slight differences due to rounding
13
Part Number Quantity Unit Price Total PricePart ABC 50 $12500 $625000Part ABB 75 $10300 $772500NRE 1 $145000Total $1542500
FAR 15408 Table 15-2 I E
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summary Cost Element Breakdown - Example
14FAR 15408 Table 15-2 I E
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summary Cost Element Breakdown - Example
15
bull If the proposal is a base year plus option years there needs to be asummary Cost Element Breakdown for each of the years at the points in theRFP requiring Cost or Pricing data
FAR 15408 Table 15-2 I E
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Include a BOM for each individual part proposed A BOM is a list of the raw
materials subassemblies etc needed to manufacture a product
bull Provide your BOMs in Excel formatbull The consolidated and individual BOMs need to identify the following for each line
itembull Part Number and descriptionbull Supplierbull Quantitybull Unit Price ndash Unit pricing on the BOM should tie to the supportbull Total Pricebull Basis for pricing (vendor quotes purchase orders)
Source of pricing (purchase order quotes etc) must be referenced in the BOM
bull PSEMC will require copies of the support (ie quotes purchase orders) for asample of the items on the BOM during the cost analysis
16FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull If attritionyield or scrap are added to your material you will need to submit
adequate basis of estimates and support as appropriate
bull There are time when your BOM may be impacted by minimum buys or NREthat is passed along from your supplier If this happens make sure this isclearly identified on the BOM and the support quotes or purchase orders
bull In addition to the individual BOMs FAR requires a consolidated BOM inyour proposal A consolidated BOM is a listing of the material needed forthe proposal A consolidated BOM combines all the materials for each ofthe parts being procured as well as assemblies services or materialassociated with NRE
17FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Individual Bills of Material Example
18
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Consolidated Bill of Material Examplebull Below is an example of a consolidated BOM This BOM was developed by
taking the three individual BOMrsquos on the previous page and combining themtogetherbull In a consolidated BOM part numbers and quantities should be combined (or
subtotaled) if they are the same parts For example the BOMs for Part Nos ABCand ABB both require the same Connector and Screw In the consolidated BOMthe requirements have been combined and reflect the total number of Connectorsand Screws that will be needed for this proposal
19
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Consolidated Bill of Materialbull If the proposal is for a base year plus option years there needs to be a
consolidated BOM for each of the years at each of the points in the RFPrequiring cost or pricing
bull To determine if a subtier cost analysis is required you need to add togetherthe anticipated costs for each supplier for all years In the above examplethere are two suppliers that will require cost analysis (Ford and Motion)
20
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Supplier proposals
bull A cost analysis report is required if any of your suppliersrsquo proposals exceedthe Truth in Negotiations Act (TINA) threshold These need to be submittedwith your proposal
bull If the cost analysis for a supplier is not complete at the time of your proposalsubmittal a schedule listing the estimated completion dates for each supplierneeds to be provided in the proposal
bull If an exemption applies that eliminates the need for a cost analysis (commercial orcompetitively priced) documentation needs to be provided to support these claims
21FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull If you claim your supplier was competed and the value is over the TINA
threshold you will need to provide the following
bull Evidence that an RFP or solicitation to bid was sent to two or more supplierscapable of providing the goods or services requested
bull Copies of the quotes received from each of the suppliers who were competedbull Supplierrsquos analysis with basis of rationale for why the winning bid represents the best value
(lowest price technical considerations etc)
bull If you claim your supplierrsquos parts or services are commercial refer to thecommercial section in this document
22FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Refer to the detailed instructions in the RFP when your proposal supports a
base year plus options contract or a long term agreement Guidance shouldbe provided here on the consolidation and subtier requirements If youhave any questions regarding this contact your PSEMC Supply Chainrepresentative
bull Inter-organizational costs
bull Inter-organizational costs are defined as the costs of items transferred betweendivisions within the same company
bull If you have bid any inter-organizational costs in your proposal you will need toprovide a cost element breakdown for each inter-organizational transfer andsupport as appropriate
bull One more thing
bull If you have a supplier with a value in excess of $135 million or is greater than 10percent of your total proposal and exceeds the TINA threshold FAR 15408 Table15-2 requires that we submit the supplierrsquos proposal and cost or pricing data withour own proposal
23FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Provide a time-phased (eg monthly quarterly) breakdown of labor hours ratesand cost by appropriate category and furnish basis for estimates
24FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Proposed labor hours are generally a combination of direct and support laborhours
bull Direct Labor Hours ndash Hours that can be identified specifically to a final end itembull Support Labor Hours ndash Hours that cannot be specifically identified to one end item For
example a production manager may be in charge of overseeing the manufacturing ofmultiple parts
25FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull You need to provide a breakdown of the labor hours by labor category and
function along with a basis of estimate for the proposed labor hours
bull For example if you propose 500 hours for an end item you would need to providea breakdown by categoryfunction (assembly inspection supervisor engineeretc) You also will need to provide a detailed basis of estimate for eachcategoryfunction showing how your arrived at the hours for the proposed laborcategory
bull Generally the basis should be actual production history An alternative approach isthe use of engineering estimates if the item has not been manufactured before
bull Cost Accounting Standards (CAS) 401 requires that a company isconsistent between proposals and accounting practices The way acompany estimates its labor hours needs to also be the way it accumulatesits production history
26FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours ExampleProposal No HLQxxxxxDate January 1 20xx ABC Corporation
Labor HoursProposed Labor Hours ndash 8279 hrsunit for Part ABC
27
Direct Labor HrsUnitAssembly 3800 Machinist 350 QA 762 Engineer 1 238
Subtotal 5151
Production Support HrsUnitMfg Supervisor 920Eng Supervisor 368QA supervisor 920Production Mgr 920
Subtotal 3128
Total Hrs 8279
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Example ndash Actual Production History
28
ProposedDuration - Months 7 9 24 12 Qty 30 39 110 50 End Date 11152006 982007 912009
Direct Labor Total Hrs HrsUnit Total Hours HrsUnit Total Hrs HrsUnit Total Hrs HrsUnitAssembly 1836 6120 1675 4295 4338 3944 1900 3800 Machinist 169 564 154 396 400 363 175 350 QA 368 1238 336 862 870 791 381 762 Engineer 1 115 383 105 269 272 247 119 238
Production Support Total Hrs Total Hrs Total Hrs Total Hrs HrsUnitMFG Supervisor 268 345 920 460 920 Eng Supervisor 107 138 184 184 368 QA Supervisor 268 345 920 460 920 Production Mgr 268 345 920 460 920
HrsUnit 8279
Acutal Production History - Part ABC
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Examples ndash Basis of Estimatebull Basis of estimate for direct labor
bull Proposed direct labor hours were developed by apply a 90 percent learningcurve to the production labor history for part BBC You need to provide abasis for the 90 percent curve
bull Basis of estimate for the manufacturing supervisorbull The manufacturing supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 920 hours were used over a 24-month periodSince the current proposal has been estimated to cover 12 months 460hours were applied to the manufacturing supervisor (920 divided by 2)
bull Basis of estimate for engineering supervisorbull The engineering supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 184 hours were necessary to complete the taskThis task is similar and so we estimate 184 hours
29
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Direct Costs (ODC)bull List other expenses not otherwise included under material and labor (eg
travel freight) and provide basis for pricing
bull For example the basis for travel would include the location number of tripsnumber of people attending and the estimated expenses for the travel
30FAR 15408 Table 15-2 II D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Nonrecurring Expenses (NRE)bull NRE refers to one-time costs that you would not normally see from proposal
to proposal
bull Examples of NRE are as follows
bull Special Toolingbull New Equipmentbull Equipment Refurbishmentbull Hours and materials associated with increase throughput capacitybull Hours and materials to research develop design and test new processesbull One-Time review events
31FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
NREbull As mentioned earlier NRE charges must be broken out by cost element
This means the material and labor components associated with the NREare clearly broken out
bull Material ndash any material associated with NRE should be supported by supplierquotes or purchase orders
bull Labor ndash labor hours associated with NRE should have basis of estimates(BOE) that are broken down by labor category and include detaileddescriptions of the tasks that will be performed
32FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Rates include direct labor overhead general and administrative expenses
(GampA) and cost of money (COM)
bull PSEMC has the capability to perform rate audits on suppliers in lieu ofhaving the DCAA do this
bull If you allow PSEMC to perform this rate audit you need to provide thefollowing information
bull Explanation as to how the rates were calculatedbull Detailed documentation (financial statements labor pools listing of unallowable
expenses etc) that support the rate calculationsbull If the detailed documentation is based on budgetary numbers you will also need
to provide three years of your most current actuals to support you budgetarynumbers
bull If budgetary numbers differ significantly from the most recent actuals providedetailed explanations for these differences
33FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Facilities Capital COM
bull When you elect to claim COM submit a completed form CASB-CFM (FacilitiesCapital Cost of Money Factors Computation) in accordance with FAR 31205-10Also complete DD Form 1861 and include a copy in your proposal submissionBoth forms can be found on-line at various locations
34FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull In summary all noncompetitive noncommercial proposals valued at more
than the cost and pricing threshold (TINA) are required to include thefollowing information
35
Required Items Page FAR Reference
Supplier Proposal Adequacy Checklist Pg 5-6 PSEMC Policy
Cover Sheet - SF1411 or equivalent Pg 7-8 FAR 15408 Table 15-2 I A
Index Pg 9-10 FAR 15408 Table 15-2 I B
Cost Element Breakdown Pg 11-12 FAR 15408 Table 15-2 I D
Summary Cost Element Breakdown Pg 13-15 FAR 15408 Table 15-2 I E
Material (Including Consolidated BOM) Pg 16-23 FAR 15408 Table 15-2 II A
Labor Pg 24-29 FAR 15408 Table 15-2 II B
ODC Pg 30 FAR 15408 Table 15-2 II D
NRE Pg 31-32 FAR 15408 Table 15-2 II
Rates Pg 33-34 FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull Sufficient rationale and supporting documentation to support each of the
proposed cost elements is also required
bull Obtaining adequate supplier proposals is always on the critical path sincePSEMC cannot submit its proposal to the government until it has receivedadequate proposals from its subcontractors Therefore it is critical thatadequate supplier proposals are obtained as quickly as possible
36
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Types of Proposalsbull Commercial item proposals
bull Change proposals
bull The following slides are only applicable in certain situations
37
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you or one of your suppliers is providing a commercial part cost or pricing
data and a cost analysis is not required However you must demonstrate that the part is commercial and that the price is reasonable
bull A commercial item is any item other than real property that is a type customarily used by the general public or by a nongovernment entity
bull Has also been sold leased or licensed to the general public or has been offered for sale lease or license to the general public
bull A final commercial determination is made by the government contracting officer If the items is deemed to not be commercial the supplier is required to submit a complete proposal that includes cost and pricing data
38FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you claim one or more of your parts are commercial you need to support
your position by providing the following information
bull Copies of applicable portions of a company catalogue or website address that shows the item with a description and unit price
bull Show that these items can be purchased by the general public or nongovernmentalagency
bull If a website or catalogue is not available copies of invoices showing the sale of these items to nongovernment entities is sufficient
39FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull PSEMC policy requires suppliers to complete a PSEMC Supplier Proposal
Adequacy Checklist (sent with the RFP) for all proposals where the supplierclaims its parts are commercial
bull An example of the Supplier Proposal Adequacy Checklist for commercialitems is attached reference form DI-SUP-310F01
40PSEMC Policy
Pacific Scientific EMC ndash Commercial Item Status
If claiming an exemption offeror must provide the appropriate information to determine commerciality Refusal to provide the required information can result in an assist audit being requested from the Defense Contract Audit Agency or other cognizant Government Audit Agencies and or a determination that goods andor services offered do not constitute a ldquocommercial itemrdquo
Offeror hereby represents that to the best of its knowledge information and belief goods andor services offered constitute a ldquocommercial itemrdquo as defined by FAR 2101 because it constitutes
A Commercial Item or Component Justification (required for any claim)
Key Inquiries and Summary of your Supporting Information
What is the relevant ldquotyperdquo of item enspenspenspenspensp
What are the types of items uses by the general public or by non-governmental entities for other than governmental purposes enspenspenspenspensp
What indicates the type of itemrsquos use described above is customary enspenspenspenspensp
Has the offered item itself (as opposed to the type of item) been sold or offered for sale
|_| Yes|_| NO
Are the offered itemrsquos sales (or offers to sale) to the general public
|_| Yes|_| NO
Please provide data regarding sales leases or licenses of this item and identification of the non-government use entities
ValueNon-Government Use Entities
(date)(date)
In addition as an appendix to this commercial item determination provide supporting documentation in the form of
1that have not materialized into sales
2that have not materialized into leases
3that have not materialized into licenses
1 Verification of sales history to source documents
2 Identification of customarily offered discounts for the item
3 Verification of the item to an existing catalog or price list and
4 Verification of historical data for an item previously not determined commercial that the offeror is now trying to qualify as a commercial item
(check box(es) as appropriate)
|_| I Unmodified Commercial Items or Components (Complete Section A)
Any item other than real property that is a of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes and
(i) Has been sold leased or licensed to the general public or
(ii) Has been offered for sale lease or license to the general public
|_| II Item Evolved from Commercial Items or Components
Any item that evolved from an item described in Part I (which is required if claiming this exemption) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace but will be available in the commercial marketplace in time to satisfy the delivery requirements under a United States Government solicitation
If claiming the item Evolved from Commercial Items or Components exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use Part I)
|_| Yes|_| NO
If yes describe the relationship of the modifications to the Federal Government requirement enspenspenspenspensp
What are the advances in technology or performance between the offered item and the commercial item on which it is based enspenspenspenspensp
What is your support for such advances enspenspenspenspensp
What is your support for availability of the item in time to meet requirements Is the claim availability reasonable enspenspenspenspensp
Please provide data regarding
(a) Currently pending offers including
(b) Planned Offers Including
In all instances scheduled for delivery no later than the delivery requirements under the
(c) Data in the format of Part I for completed sales of the item from which the ldquocommercial itemrdquo evolved
|_| III Modified Commercial Items or Components
Any item that would satisfy a criterion expressed in Part I or II hereof but for -
|_| (i) Modifications of a type customarily available in the commercial marketplace
If claiming Modified Commercial Item or Components that are of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use part I or parts II and II)
|_| Yes|_| NO
What are the modifications that would be made to the commercial item enspenspenspenspensp
Are the modifications of a type customarily available in the commercial marketplace
|_| Yes|_| NO
Summarize your support for customary availability of the modification in the commercial marketplace enspenspenspenspensp
|_| (ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet federal government requirements ldquoMinor modificationsrdquo means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component or change the purpose of a process Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product Dollar values and percentages may be used as guideposts but are not conclusive evidence that a modification is minor
If claiming Modified Commercial Items or Components that are not of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Are the modifications made to satisfy Federal Government requirements
|_| Yes|_| NO
Do the modifications alter the nongovernmental function or essential physical characteristics of the item
|_| Yes|_| NO
If yes what are the alterations enspenspenspenspensp
Does the modified item retain a predominance of nongovernmental functions or physical characteristics
|_| Yes|_| NO
Summarize your support describing the value of the modifications in comparison to the value of the final product enspenspenspenspensp
Summarize your support for the magnitude or size of the modifications in relation to the magnitude or size of the final product enspenspenspenspensp
Are there any other factors which would allow you to conclude that the modifications are minor
|_| Yes|_| NO
If yes what are they enspenspenspenspensp
Based on the above does the modification qualify as a minor modification
|_| Yes|_| NO
Please provide data regarding the minor modification and the total price to PSEMC of Minor Modifications
Price to PSEMC of all Minor Modifications at quantities proposed in this pricing action enspenspenspenspensp
Minor modifications that exceed the thresholds in FAR 15403-1(c)(3)(iii)(B) are subject to the Certified Cost or Pricing Data requirements and must be proposed as described by FAR 15408 Table 152
|_| IV Commercial Items Support Services
Installation services maintenance services repair services training services and other services if -
(i) Such services are procured for support of an item referred to in Parts I II III or IV hereof regardless of whether such services are provided by the same source or at the same time as the item and
(ii) The source of such services provided similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government
If claiming Commercial Item Support Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services procured for the support of a commercial item which qualifies under a preceding part
|_| Yes|_| NO
Describe the nature of the services and how they support the commercial item enspenspenspenspensp
Are the services provided at the same time to the general public and the Federal Government
|_| Yes|_| NO
Are the terms and conditions for the services similar to those offered to the general public
|_| Yes|_| NO
Describe differences enspenspenspenspensp
Please provide data regarding
a Open and completed contracts including
b Pending offers including
|_| V Any Combination of Items
Meeting the requirements of Parts I II III or IV hereof that are of a type customarily combined and sold in combination to the general public
If you have checked the above box and are claiming the Any Combination of Items exemption please attach hereto information as requ3sted for Parts I II III and IV
|_| VI Other Commercial Services
Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions For purposes of these services -
(i) Catalog price means a price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor is either published or otherwise available for inspection by customers and states prices at which sales are currently or were last made to a significant number of buyers constituting the general public and
(ii) Market prices means current prices that are established in the course of ordinary trade between buyers and sellers free to bargain and that can be substantiated through competition or from source independent of the offerors
If claiming the Other Commercial Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services sold competitively in substantial quantities in the commercial marketplace
|_| Yes|_| NO
If no are the services of a type sold in substantial quantities in the commercial marketplace
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If yes what is the ldquotyperdquo of service enspenspenspenspensp
Summarize your support for same enspenspenspenspensp
Are the prices quoted for specific tasks performed or specific outcomes to be achieved
|_| Yes|_| NO
Are the services offered consistent with your standard terms and conditions
|_| Yes|_| NO
Are the services of a type sold at catalog or market prices
|_| Yes|_| NO
If sold at catalog price is the price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor
|_| Yes|_| NO
If sold at catalog price is the catalog or its equivalent either published or otherwise available for inspection by customers
|_| Yes|_| NO
Summarize your support for same (include a copy of the catalog or provide location) enspenspenspenspensp
If sold at a catalog price are the listed prices those at which sales are currently or were last made to a significant number of buyers in the general public
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If sold at a market price are the prices established in the course of ordinary trade between buyers and sellers free to bargain
|_| Yes|_| NO
Summarize you support for same enspenspenspenspensp
If sold at market price can the price be substantiated through competition or from sources independent of the offeror
|_| Yes|_| NO
Summarize your support for same
Please provide data regarding
(a) Open and completed contracts including
(b) Pending Offers including
|_| VII Any Item Combination of Items or Service
Referred to in Parts I through VI hereof notwithstanding the fact that the item combination of items or service is transferred between or among separate divisions subsidiaries or affiliates of the Offeror
If you have checked the above box and are claiming the ldquoAny item combination of items or Servicerdquo exemption please provide data regarding
|_| VIII Non-developmental Items
A non-developmental item as defined in FAR 2101 which has been developed exclusively at private expense and sold in substantial quantities on a competitive basis to multiple State and local governments
If claiming the Non-developmental Items exemption then the following must be provided
Key Inquiries and Summary of Supplierrsquos Supporting Information
Was the item previously developed
|_| Yes|_| NO
Was the item used exclusively for governmental purposes by a Federal agency a State or local government or a foreign government with which the United States has mutual defense cooperation agreement
|_| Yes|_| NO
If the item is to be modified do the modifications comply with Part III guidance on modifications
|_| Yes|_| NO
If the item is not yet in use does it otherwise qualify as a non-developmental item
|_| Yes|_| NO
Was the item developed exclusively at private expense
|_| Yes|_| NO
Is the item sold in substantial quantities on a competitive basis to multiple State and local governments
|_| Yes|_| NO
Please provide data regarding
|_| IX General Inquiries
Does the item qualify as a combination of items under Parts I II III and IV above
|_| Yes|_| NO
Has the item or services previously been determined to be commercial
|_| Yes|_| NO
If so by whom enspenspenspenspensp
|_| X Other Information
Is there other information of which you are aware that would supplement the information provided and would help substantiate whether the item or service is commercial
|_| Yes|_| NO
Have you provided such information
|_| Yes|_| NO
List such information enspenspenspenspensp
|_| XI Supplier Determination
Offeror hereby represents that the foregoing information is accurate and complete and that to the best of its knowledge information and belief goods and or services offered currently constitute ldquoa commercial itemrdquo as defined by FAR 2101
For PSEMC Internal Use Only
XII Supplier Determination
Supplier has claimed that the item component or service identified above is a commercial item under the definition at FAR 2101 I have reviewed and summarized the supplierrsquos support for that claim in the appropriate sections above Based on such review of such support information and any other information identified elsewhere herein I conclude that the supplier
|_| HAS |_| HAS NOT Supported its claim of commercial item status under the definition at FAR 2101
If the supplier HAS NOT supported its claim list reasons enspenspenspenspensp
Describe action plat to resolve enspenspenspenspensp
Comments enspenspenspenspensp
image1jpeg
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull This section of Table 15-2 describes the format an estimating approach we
are required to use when developing a proposal to modify an existingcontract In addition to the cost element breakdowns required as describedin the previous slides when there is a modification or change proposal FARalso requires the following table to be inserted into your proposal
41
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals
42FAR 15408 Table 15-2 III B
B Change Orders modifications and claims
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
Column 2 includes the cost of all work deleted This
includes cost of work deleted already performed (amount in Column 3) and
cost of work deleted not yet performed (Column 4)
Column 3 includes the cost of deleted work already
performed This amount will not be included in the credit (delete) adjustment amount (eg we will not give back costs already
incurred)
Column 4 includes cost for deleted work not yet performed ndash must be priced using current
estimates (but the current estimate may be the same as
the original estimate) ndash it is develed similar to a normal ldquoaddrdquo proposal with a few
exceptions
Column 5 includes the cost of the
new work and is developed as we do any
other proposal
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull Detail for columns listed on previous page
1 Enter appropriate cost element2 Enter current estimates of what it would take to complete the deleted work that
has not yet been performed3 Enter current cost of deleted work already performed This should be based on
actuals and copies to support these actuals should be included in the proposal4 Enter the net cost to be deleted (Column 2 minus Column 3)5 Enter your estimate for cost of work added by the change6 Enter the net cost of change (Column 5 minus Column 4)7 Identify where in your proposal the supporting documentation and basis of
estimate can be found for each of these sections
43FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull For purposes of determining if a proposal an cost or pricing data are
required from individual suppliers on a change proposal the absolute valueof the ldquodeleterdquo amount plus the ldquoaddrdquo amount is computed for each supplierthat exceeds the cost and pricing threshold (TINA)
bull Remember from FAR 15403-4(b) ndash if the absolute value for an individualsupplier exceeds the cost and pricing threshold (TINA) and the supplier iseither an actual supplier (will continue to provide partsservices on thiscontract) the supplier is required to provide a proposal and cost or pricingdata in support of the change proposal
bull Deleted amount is our current estimate (generally no the original contractvalue unless it is our current estimate)
44FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull If a supplierrsquos quantities are changing due to a modification the net delete
or add amount is used to determine if the supplier exceeds the cost andpricing threshold (TINA)
bull The estimator should not consider the old quantity as the delete and thenew quantity as the add (eg in computing absolute value) whendetermining if the supplier exceeds the threshold in cases where quantitiesare changing
bull The development of the appropriate deletion is not simply the estimatedcost of the deleted quantity ndash this will overstate the credit
45FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals Cost of WorkDeleted for a Partial Deleted Quantitybull In cases where part of a material quantity is being deleted (eg original
contract requires 100 widgets and the contract is modified to delete 30 ofthem) one method of estimating the amount of the delete is
1 Develop a current estimate of the extended cost for the item(s) given the originalquantity
2 Develop a current estimate of the extended cost for the items at the lower(remaining) quantity
3 The delta between these two values represents the amount of the delete
bull The same method can be used if the contract is modified to increase aquantity for a part
46FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklist
47
bull The Supplier Proposal Adequacy Checklist is accessed from the externalPSEMC supplier website
bull Additional supplier proposal guidance and resources are available(information templates and tools to assist in building a FAR compliantproposal
bull Supplier proposal guidance
bull Supplier Proposal Adequacy Guidelines
bull PSEMC document templates
bull Supplier proposal adequacy checklistbull Contract pricing proposal cover sheet
httpspsemccomsuppliers
- Strategic Affordability Analysis
- Purpose of this Guideline
- Table of Contents
- Table of Contents
- Supplier Proposal Adequacy Checklist
- Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
- Cover Sheet
- Cover Sheet Example ndash Reference Form DI-SUP-105F02
- Index
- Index Example
- Cost Element Breakdown by Line Item
- Cost Element Breakdown by Line Item Example
- Summary Cost Element Breakdown
- Summary Cost Element Breakdown - Example
- Summary Cost Element Breakdown - Example
- Material
- Material
- Individual Bills of Material Example
- Consolidated Bill of Material Example
- Consolidated Bill of Material
- Material
- Material
- Material
- Labor
- Labor
- Labor
- Labor Hours Example
- Labor Hours Example ndash Actual Production History
- Labor Hours Examples ndash Basis of Estimate
- Other Direct Costs (ODC)
- Nonrecurring Expenses (NRE)
- NRE
- Rates
- Rates
- Summary
- Summary
- Other Types of Proposals
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals Cost of WorkDeleted for a Partial Deleted Quantity
- Supplier Proposal Adequacy Checklist
-
| Buyer (Type or Print Name) | Date |
| Offeror | |||
| By | |||
| Title | |||
| Date |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp | ||
| (iii) Total number of customers involved in such sales | enspenspenspenspensp |
| (a) Transfer price(s) of such goods | $ enspenspenspenspensp | ||
| (b) Total units of such goods and or | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| Unmodified Items Identified in Part 1 | Modified Items Proposed to PSMEC | Unit Value of Modification | |||||||
| Unmodified Item | Unmodified Price | Modified Item | Modified Price to PSEMC | ||||||
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| To the general public in the time-frame beginning | enspenspenspenspensp | enspenspenspenspensp | and ending | enspenspenspenspensp |
| (a) Sales | |||||
| (b) Leases | |||||
| (c) Licenses | |||||
| (d) Offers to Sell 1 | |||||
| (e) Offers to Lease 2 | |||||
| (f) Offers to License 3 |
| Part Number | |||
| Description | |||
| Offeror |
| Completion of this checklist and supporting information is required for all single source proposals that exceed the TINA threshold where no valid exception (FAR 15403-1) applies If the supplier is claiming an exemption for commercial terms only the first line on the checklist is applicable | |||||
| Supplier enspenspenspenspensp | Supplier Proposal Number enspenspenspenspensp | ||||
| Exemption to CampP Data Commercial Item (Section 3 of Instruction) | |_| Support Included | Located in Section Page enspenspenspenspensp | |||
| Pricing Proposal Coversheet or Equivalent (21 of Instruction) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Point of Contact (21 of Instruction) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| DCMADCAA Points of Contact (Include Name Phone Address Cage Code and E-mail Address) (21 of Instruction) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Cost Element Detail and Cost Element Summary (24 of Instruction) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Individual Bill of Material and Consolidated Bill of Material (25 of Instruction) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Material Basis of Estimate (251 of Instruction) and Copies of POsQuotes | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Sub-tier Cost Analysis (if required) (251 of Instruction) | |_| Included | Located in Section Page or ECDs enspenspenspenspensp | |||
| Labor History (26 amp 261 of Instruction) and Basis of Estimate | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Support for ODC (27 of Instruction) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Support for Rates (17 and 28 of Instruction) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Nonrecurring Engineering (NRE) (14 and 15) Use of Government Property to Include Serial Tooling andor Special Test Equipment | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Expenditure Plan (Required to Support Cost Type Proposals or Performance Based Progress Payments) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Supplier | |||||
| By Signing below you are confirming that required cost and pricing data is part of your proposal and meets the requirements of Pacific Scientificrsquos proposal pricing instructions | |||||
| Sellerrsquos Representative (type or Print) enspenspenspenspensp | Signature enspenspenspenspensp | Date (MMDDYYYY) enspenspenspenspensp | |||
| Pacific Scientific | |||||
| By Signing below the supplier manager is confirming receipt of the items required for this proposal and meets the requirements of Pacific Scientificrsquos proposal pricing instructions | |||||
| Buyer (Type or Print) enspenspenspenspensp | Signature enspenspenspenspensp | Date (MMDDYYYY) enspenspenspenspensp | |||
| Supplier Manager (Type or Print) enspenspenspenspensp | Signature enspenspenspenspensp | Date (MMDDYYYY) enspenspenspenspensp |
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
6
Proposal Pricing Instructions
Supplier Proposal Adequacy Checklist
Completion of this checklist and supporting information is required for all single source proposals that exceed the TINA threshold where no valid exception (FAR 15403-1) applies If the supplier is claiming an exemption for commercial terms only the first line on the checklist is applicable Supplier
Supplier Proposal Number
Exemption to CampP Data Commercial Item (Section 3 of Instruction)
Support Included
Located in Section Page
Pricing Proposal Coversheet or Equivalent (21 of Instruction)
Included Located in Section Page
Point of Contact (21 of Instruction) Included Located in Section Page
DCMADCAA Points of Contact (Include Name Phone Address Cage Code and E-mail Address) (21 of Instruction)
Included Located in Section Page
Cost Element Detail and Cost Element Summary (24 of Instruction)
Included Located in Section Page
Individual Bill of Material and Consolidated Bill of Material (25 of Instruction)
Included Located in Section Page
Material Basis of Estimate (251 of Instruction) and Copies of POsQuotes
Included Located in Section Page
Sub-tier Cost Analysis (if required) (251 of Instruction)
Included Located in Section Page or ECDs
Labor History (26 amp 261 of Instruction) and Basis of Estimate
Included Located in Section Page
Support for ODC (27 of Instruction) Included Located in Section Page
Support for Rates (17 and 28 of Instruction) Included Located in Section Page
Nonrecurring Engineering (NRE) (14 and 15) Use of Government Property to Include Serial Tooling andor Special Test Equipment
Included Located in Section Page
Expenditure Plan (Required to Support Cost Type Proposals or Performance Based Progress Payments)
Included Located in Section Page
Supplier By Signing below you are confirming that required cost and pricing data is part of your proposal and meets the requirements of Pacific Scientificrsquos proposal pricing instructions Sellerrsquos Representative (type or Print)
Signature
Date (MMDDYYYY)
Pacific Scientific By Signing below the supplier manager is confirming receipt of the items required for this proposal and meets the requirements of Pacific Scientificrsquos proposal pricing instructions Buyer (Type or Print)
Signature
Date (MMDDYYYY)
Supplier Manager (Type or Print)
Signature
Date (MMDDYYYY)
Proposal Pricing Instructions
Supplier Proposal Adequacy Checklist
image1jpeg
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Cover Sheetbull Include a cover sheet that includes the following information
bull Solicitation Numberbull Name and Address of offerorbull Name and Telephone number of point of contactbull Name address phone number and email for your DCMA and DCAAbull Type of contract actionbull Proposed cost profit or fee and total price ndash maximum proposal valuebull If you will require the use of government propertybull Whether your organization is subject to cost accounting standards (CAS) ndash see
details in FAR 15-408 Table 15-2 I A (8)bull The statement designated in FAR 15408 Table 15-2 I A (9)bull Date of Submissionbull Name title and signature of authorized representative
bull Most contractors use the Government Form 1411 or equivalent
bull An example is provided on the next slide
7
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Cover Sheet Example ndashReference Form DI-SUP-105F02
8
Point of Contact
Proposed Cost
Period of Performance
DCAA Contact Information
Include Statement from FAR 15408 Table 15-2 IA (9)
DCMA Contact Information
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Indexbull Include an index that references where the supporting data for your
estimates is located in the proposalbull The Index should include the following information
bull Title of information being referenced (Summary cost element breakdown materiallabor etc
bull Location in the proposal (page number or file name and page if located in a separatefiledocument)
bull An example is provided in the next slide
9
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Index ExampleProposal No HLQxxxxxDate January xx xxxx ABC Company
Index1 Cover sheet Page xx
2 Business section Page xx
21 Assumptions and Conditions Page xx
3 Pricing Page xx
31 Unit Pricing Page xx
32 Cost Element by Part Number Page xx
33 Cost Element Summary Page xx
4 Material Page xx
41 Bill of Materials by Part Number Page xx
42 Consolidated Bill of Materials Page xx
43 Purchase Orders and Quotes (File PO-QuotesPDF) Page xx
5 Labor Page xx
6 Etc Page xx
10
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Cost Element Breakdown by Line Itembull A cost element breakdown is required for each proposed line item If the
proposal covers multiple price points or multiple years a cost elementbreakdown will be required for each price point for each year
bull For example assume your proposal includes the following three line items
bull You would need to provide separate cost element breakdowns for parts ABCABB and the NRE See the next slide for an example
Slight differences due to rounding
11
Part Number Quantity Unit Price Total PricePart ABC 50 $12500 $625000Part ABB 75 $10300 $772500NRE 1 $145000Total $1542500
FAR 15408 Table 15-2 I D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Cost Element Breakdown by Line Item Example
12FAR 15408 Table 15-2 I D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summary Cost Element Breakdownbull When more than one contract line item (Part Number NRE etc) is
proposed you must provide summary total amounts covering all items foreach element of cost If the proposal covers a high mid and low point thesummary needs to only be for those points not all the differentcombinations that can result from range pricing If the proposal is formultiple years there needs to be a summary for each of the yearsbull For example if your proposal included the following
bull You would need to provide a summary by cost element that includes the totalproposed value of $1542500 See the next slide for an example showing thethree individual cost elements being combined into a summary
Slight differences due to rounding
13
Part Number Quantity Unit Price Total PricePart ABC 50 $12500 $625000Part ABB 75 $10300 $772500NRE 1 $145000Total $1542500
FAR 15408 Table 15-2 I E
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summary Cost Element Breakdown - Example
14FAR 15408 Table 15-2 I E
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summary Cost Element Breakdown - Example
15
bull If the proposal is a base year plus option years there needs to be asummary Cost Element Breakdown for each of the years at the points in theRFP requiring Cost or Pricing data
FAR 15408 Table 15-2 I E
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Include a BOM for each individual part proposed A BOM is a list of the raw
materials subassemblies etc needed to manufacture a product
bull Provide your BOMs in Excel formatbull The consolidated and individual BOMs need to identify the following for each line
itembull Part Number and descriptionbull Supplierbull Quantitybull Unit Price ndash Unit pricing on the BOM should tie to the supportbull Total Pricebull Basis for pricing (vendor quotes purchase orders)
Source of pricing (purchase order quotes etc) must be referenced in the BOM
bull PSEMC will require copies of the support (ie quotes purchase orders) for asample of the items on the BOM during the cost analysis
16FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull If attritionyield or scrap are added to your material you will need to submit
adequate basis of estimates and support as appropriate
bull There are time when your BOM may be impacted by minimum buys or NREthat is passed along from your supplier If this happens make sure this isclearly identified on the BOM and the support quotes or purchase orders
bull In addition to the individual BOMs FAR requires a consolidated BOM inyour proposal A consolidated BOM is a listing of the material needed forthe proposal A consolidated BOM combines all the materials for each ofthe parts being procured as well as assemblies services or materialassociated with NRE
17FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Individual Bills of Material Example
18
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Consolidated Bill of Material Examplebull Below is an example of a consolidated BOM This BOM was developed by
taking the three individual BOMrsquos on the previous page and combining themtogetherbull In a consolidated BOM part numbers and quantities should be combined (or
subtotaled) if they are the same parts For example the BOMs for Part Nos ABCand ABB both require the same Connector and Screw In the consolidated BOMthe requirements have been combined and reflect the total number of Connectorsand Screws that will be needed for this proposal
19
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Consolidated Bill of Materialbull If the proposal is for a base year plus option years there needs to be a
consolidated BOM for each of the years at each of the points in the RFPrequiring cost or pricing
bull To determine if a subtier cost analysis is required you need to add togetherthe anticipated costs for each supplier for all years In the above examplethere are two suppliers that will require cost analysis (Ford and Motion)
20
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Supplier proposals
bull A cost analysis report is required if any of your suppliersrsquo proposals exceedthe Truth in Negotiations Act (TINA) threshold These need to be submittedwith your proposal
bull If the cost analysis for a supplier is not complete at the time of your proposalsubmittal a schedule listing the estimated completion dates for each supplierneeds to be provided in the proposal
bull If an exemption applies that eliminates the need for a cost analysis (commercial orcompetitively priced) documentation needs to be provided to support these claims
21FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull If you claim your supplier was competed and the value is over the TINA
threshold you will need to provide the following
bull Evidence that an RFP or solicitation to bid was sent to two or more supplierscapable of providing the goods or services requested
bull Copies of the quotes received from each of the suppliers who were competedbull Supplierrsquos analysis with basis of rationale for why the winning bid represents the best value
(lowest price technical considerations etc)
bull If you claim your supplierrsquos parts or services are commercial refer to thecommercial section in this document
22FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Refer to the detailed instructions in the RFP when your proposal supports a
base year plus options contract or a long term agreement Guidance shouldbe provided here on the consolidation and subtier requirements If youhave any questions regarding this contact your PSEMC Supply Chainrepresentative
bull Inter-organizational costs
bull Inter-organizational costs are defined as the costs of items transferred betweendivisions within the same company
bull If you have bid any inter-organizational costs in your proposal you will need toprovide a cost element breakdown for each inter-organizational transfer andsupport as appropriate
bull One more thing
bull If you have a supplier with a value in excess of $135 million or is greater than 10percent of your total proposal and exceeds the TINA threshold FAR 15408 Table15-2 requires that we submit the supplierrsquos proposal and cost or pricing data withour own proposal
23FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Provide a time-phased (eg monthly quarterly) breakdown of labor hours ratesand cost by appropriate category and furnish basis for estimates
24FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Proposed labor hours are generally a combination of direct and support laborhours
bull Direct Labor Hours ndash Hours that can be identified specifically to a final end itembull Support Labor Hours ndash Hours that cannot be specifically identified to one end item For
example a production manager may be in charge of overseeing the manufacturing ofmultiple parts
25FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull You need to provide a breakdown of the labor hours by labor category and
function along with a basis of estimate for the proposed labor hours
bull For example if you propose 500 hours for an end item you would need to providea breakdown by categoryfunction (assembly inspection supervisor engineeretc) You also will need to provide a detailed basis of estimate for eachcategoryfunction showing how your arrived at the hours for the proposed laborcategory
bull Generally the basis should be actual production history An alternative approach isthe use of engineering estimates if the item has not been manufactured before
bull Cost Accounting Standards (CAS) 401 requires that a company isconsistent between proposals and accounting practices The way acompany estimates its labor hours needs to also be the way it accumulatesits production history
26FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours ExampleProposal No HLQxxxxxDate January 1 20xx ABC Corporation
Labor HoursProposed Labor Hours ndash 8279 hrsunit for Part ABC
27
Direct Labor HrsUnitAssembly 3800 Machinist 350 QA 762 Engineer 1 238
Subtotal 5151
Production Support HrsUnitMfg Supervisor 920Eng Supervisor 368QA supervisor 920Production Mgr 920
Subtotal 3128
Total Hrs 8279
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Example ndash Actual Production History
28
ProposedDuration - Months 7 9 24 12 Qty 30 39 110 50 End Date 11152006 982007 912009
Direct Labor Total Hrs HrsUnit Total Hours HrsUnit Total Hrs HrsUnit Total Hrs HrsUnitAssembly 1836 6120 1675 4295 4338 3944 1900 3800 Machinist 169 564 154 396 400 363 175 350 QA 368 1238 336 862 870 791 381 762 Engineer 1 115 383 105 269 272 247 119 238
Production Support Total Hrs Total Hrs Total Hrs Total Hrs HrsUnitMFG Supervisor 268 345 920 460 920 Eng Supervisor 107 138 184 184 368 QA Supervisor 268 345 920 460 920 Production Mgr 268 345 920 460 920
HrsUnit 8279
Acutal Production History - Part ABC
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Examples ndash Basis of Estimatebull Basis of estimate for direct labor
bull Proposed direct labor hours were developed by apply a 90 percent learningcurve to the production labor history for part BBC You need to provide abasis for the 90 percent curve
bull Basis of estimate for the manufacturing supervisorbull The manufacturing supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 920 hours were used over a 24-month periodSince the current proposal has been estimated to cover 12 months 460hours were applied to the manufacturing supervisor (920 divided by 2)
bull Basis of estimate for engineering supervisorbull The engineering supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 184 hours were necessary to complete the taskThis task is similar and so we estimate 184 hours
29
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Direct Costs (ODC)bull List other expenses not otherwise included under material and labor (eg
travel freight) and provide basis for pricing
bull For example the basis for travel would include the location number of tripsnumber of people attending and the estimated expenses for the travel
30FAR 15408 Table 15-2 II D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Nonrecurring Expenses (NRE)bull NRE refers to one-time costs that you would not normally see from proposal
to proposal
bull Examples of NRE are as follows
bull Special Toolingbull New Equipmentbull Equipment Refurbishmentbull Hours and materials associated with increase throughput capacitybull Hours and materials to research develop design and test new processesbull One-Time review events
31FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
NREbull As mentioned earlier NRE charges must be broken out by cost element
This means the material and labor components associated with the NREare clearly broken out
bull Material ndash any material associated with NRE should be supported by supplierquotes or purchase orders
bull Labor ndash labor hours associated with NRE should have basis of estimates(BOE) that are broken down by labor category and include detaileddescriptions of the tasks that will be performed
32FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Rates include direct labor overhead general and administrative expenses
(GampA) and cost of money (COM)
bull PSEMC has the capability to perform rate audits on suppliers in lieu ofhaving the DCAA do this
bull If you allow PSEMC to perform this rate audit you need to provide thefollowing information
bull Explanation as to how the rates were calculatedbull Detailed documentation (financial statements labor pools listing of unallowable
expenses etc) that support the rate calculationsbull If the detailed documentation is based on budgetary numbers you will also need
to provide three years of your most current actuals to support you budgetarynumbers
bull If budgetary numbers differ significantly from the most recent actuals providedetailed explanations for these differences
33FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Facilities Capital COM
bull When you elect to claim COM submit a completed form CASB-CFM (FacilitiesCapital Cost of Money Factors Computation) in accordance with FAR 31205-10Also complete DD Form 1861 and include a copy in your proposal submissionBoth forms can be found on-line at various locations
34FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull In summary all noncompetitive noncommercial proposals valued at more
than the cost and pricing threshold (TINA) are required to include thefollowing information
35
Required Items Page FAR Reference
Supplier Proposal Adequacy Checklist Pg 5-6 PSEMC Policy
Cover Sheet - SF1411 or equivalent Pg 7-8 FAR 15408 Table 15-2 I A
Index Pg 9-10 FAR 15408 Table 15-2 I B
Cost Element Breakdown Pg 11-12 FAR 15408 Table 15-2 I D
Summary Cost Element Breakdown Pg 13-15 FAR 15408 Table 15-2 I E
Material (Including Consolidated BOM) Pg 16-23 FAR 15408 Table 15-2 II A
Labor Pg 24-29 FAR 15408 Table 15-2 II B
ODC Pg 30 FAR 15408 Table 15-2 II D
NRE Pg 31-32 FAR 15408 Table 15-2 II
Rates Pg 33-34 FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull Sufficient rationale and supporting documentation to support each of the
proposed cost elements is also required
bull Obtaining adequate supplier proposals is always on the critical path sincePSEMC cannot submit its proposal to the government until it has receivedadequate proposals from its subcontractors Therefore it is critical thatadequate supplier proposals are obtained as quickly as possible
36
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Types of Proposalsbull Commercial item proposals
bull Change proposals
bull The following slides are only applicable in certain situations
37
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you or one of your suppliers is providing a commercial part cost or pricing
data and a cost analysis is not required However you must demonstrate that the part is commercial and that the price is reasonable
bull A commercial item is any item other than real property that is a type customarily used by the general public or by a nongovernment entity
bull Has also been sold leased or licensed to the general public or has been offered for sale lease or license to the general public
bull A final commercial determination is made by the government contracting officer If the items is deemed to not be commercial the supplier is required to submit a complete proposal that includes cost and pricing data
38FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you claim one or more of your parts are commercial you need to support
your position by providing the following information
bull Copies of applicable portions of a company catalogue or website address that shows the item with a description and unit price
bull Show that these items can be purchased by the general public or nongovernmentalagency
bull If a website or catalogue is not available copies of invoices showing the sale of these items to nongovernment entities is sufficient
39FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull PSEMC policy requires suppliers to complete a PSEMC Supplier Proposal
Adequacy Checklist (sent with the RFP) for all proposals where the supplierclaims its parts are commercial
bull An example of the Supplier Proposal Adequacy Checklist for commercialitems is attached reference form DI-SUP-310F01
40PSEMC Policy
Pacific Scientific EMC ndash Commercial Item Status
If claiming an exemption offeror must provide the appropriate information to determine commerciality Refusal to provide the required information can result in an assist audit being requested from the Defense Contract Audit Agency or other cognizant Government Audit Agencies and or a determination that goods andor services offered do not constitute a ldquocommercial itemrdquo
Offeror hereby represents that to the best of its knowledge information and belief goods andor services offered constitute a ldquocommercial itemrdquo as defined by FAR 2101 because it constitutes
A Commercial Item or Component Justification (required for any claim)
Key Inquiries and Summary of your Supporting Information
What is the relevant ldquotyperdquo of item enspenspenspenspensp
What are the types of items uses by the general public or by non-governmental entities for other than governmental purposes enspenspenspenspensp
What indicates the type of itemrsquos use described above is customary enspenspenspenspensp
Has the offered item itself (as opposed to the type of item) been sold or offered for sale
|_| Yes|_| NO
Are the offered itemrsquos sales (or offers to sale) to the general public
|_| Yes|_| NO
Please provide data regarding sales leases or licenses of this item and identification of the non-government use entities
ValueNon-Government Use Entities
(date)(date)
In addition as an appendix to this commercial item determination provide supporting documentation in the form of
1that have not materialized into sales
2that have not materialized into leases
3that have not materialized into licenses
1 Verification of sales history to source documents
2 Identification of customarily offered discounts for the item
3 Verification of the item to an existing catalog or price list and
4 Verification of historical data for an item previously not determined commercial that the offeror is now trying to qualify as a commercial item
(check box(es) as appropriate)
|_| I Unmodified Commercial Items or Components (Complete Section A)
Any item other than real property that is a of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes and
(i) Has been sold leased or licensed to the general public or
(ii) Has been offered for sale lease or license to the general public
|_| II Item Evolved from Commercial Items or Components
Any item that evolved from an item described in Part I (which is required if claiming this exemption) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace but will be available in the commercial marketplace in time to satisfy the delivery requirements under a United States Government solicitation
If claiming the item Evolved from Commercial Items or Components exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use Part I)
|_| Yes|_| NO
If yes describe the relationship of the modifications to the Federal Government requirement enspenspenspenspensp
What are the advances in technology or performance between the offered item and the commercial item on which it is based enspenspenspenspensp
What is your support for such advances enspenspenspenspensp
What is your support for availability of the item in time to meet requirements Is the claim availability reasonable enspenspenspenspensp
Please provide data regarding
(a) Currently pending offers including
(b) Planned Offers Including
In all instances scheduled for delivery no later than the delivery requirements under the
(c) Data in the format of Part I for completed sales of the item from which the ldquocommercial itemrdquo evolved
|_| III Modified Commercial Items or Components
Any item that would satisfy a criterion expressed in Part I or II hereof but for -
|_| (i) Modifications of a type customarily available in the commercial marketplace
If claiming Modified Commercial Item or Components that are of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use part I or parts II and II)
|_| Yes|_| NO
What are the modifications that would be made to the commercial item enspenspenspenspensp
Are the modifications of a type customarily available in the commercial marketplace
|_| Yes|_| NO
Summarize your support for customary availability of the modification in the commercial marketplace enspenspenspenspensp
|_| (ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet federal government requirements ldquoMinor modificationsrdquo means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component or change the purpose of a process Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product Dollar values and percentages may be used as guideposts but are not conclusive evidence that a modification is minor
If claiming Modified Commercial Items or Components that are not of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Are the modifications made to satisfy Federal Government requirements
|_| Yes|_| NO
Do the modifications alter the nongovernmental function or essential physical characteristics of the item
|_| Yes|_| NO
If yes what are the alterations enspenspenspenspensp
Does the modified item retain a predominance of nongovernmental functions or physical characteristics
|_| Yes|_| NO
Summarize your support describing the value of the modifications in comparison to the value of the final product enspenspenspenspensp
Summarize your support for the magnitude or size of the modifications in relation to the magnitude or size of the final product enspenspenspenspensp
Are there any other factors which would allow you to conclude that the modifications are minor
|_| Yes|_| NO
If yes what are they enspenspenspenspensp
Based on the above does the modification qualify as a minor modification
|_| Yes|_| NO
Please provide data regarding the minor modification and the total price to PSEMC of Minor Modifications
Price to PSEMC of all Minor Modifications at quantities proposed in this pricing action enspenspenspenspensp
Minor modifications that exceed the thresholds in FAR 15403-1(c)(3)(iii)(B) are subject to the Certified Cost or Pricing Data requirements and must be proposed as described by FAR 15408 Table 152
|_| IV Commercial Items Support Services
Installation services maintenance services repair services training services and other services if -
(i) Such services are procured for support of an item referred to in Parts I II III or IV hereof regardless of whether such services are provided by the same source or at the same time as the item and
(ii) The source of such services provided similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government
If claiming Commercial Item Support Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services procured for the support of a commercial item which qualifies under a preceding part
|_| Yes|_| NO
Describe the nature of the services and how they support the commercial item enspenspenspenspensp
Are the services provided at the same time to the general public and the Federal Government
|_| Yes|_| NO
Are the terms and conditions for the services similar to those offered to the general public
|_| Yes|_| NO
Describe differences enspenspenspenspensp
Please provide data regarding
a Open and completed contracts including
b Pending offers including
|_| V Any Combination of Items
Meeting the requirements of Parts I II III or IV hereof that are of a type customarily combined and sold in combination to the general public
If you have checked the above box and are claiming the Any Combination of Items exemption please attach hereto information as requ3sted for Parts I II III and IV
|_| VI Other Commercial Services
Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions For purposes of these services -
(i) Catalog price means a price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor is either published or otherwise available for inspection by customers and states prices at which sales are currently or were last made to a significant number of buyers constituting the general public and
(ii) Market prices means current prices that are established in the course of ordinary trade between buyers and sellers free to bargain and that can be substantiated through competition or from source independent of the offerors
If claiming the Other Commercial Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services sold competitively in substantial quantities in the commercial marketplace
|_| Yes|_| NO
If no are the services of a type sold in substantial quantities in the commercial marketplace
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If yes what is the ldquotyperdquo of service enspenspenspenspensp
Summarize your support for same enspenspenspenspensp
Are the prices quoted for specific tasks performed or specific outcomes to be achieved
|_| Yes|_| NO
Are the services offered consistent with your standard terms and conditions
|_| Yes|_| NO
Are the services of a type sold at catalog or market prices
|_| Yes|_| NO
If sold at catalog price is the price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor
|_| Yes|_| NO
If sold at catalog price is the catalog or its equivalent either published or otherwise available for inspection by customers
|_| Yes|_| NO
Summarize your support for same (include a copy of the catalog or provide location) enspenspenspenspensp
If sold at a catalog price are the listed prices those at which sales are currently or were last made to a significant number of buyers in the general public
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If sold at a market price are the prices established in the course of ordinary trade between buyers and sellers free to bargain
|_| Yes|_| NO
Summarize you support for same enspenspenspenspensp
If sold at market price can the price be substantiated through competition or from sources independent of the offeror
|_| Yes|_| NO
Summarize your support for same
Please provide data regarding
(a) Open and completed contracts including
(b) Pending Offers including
|_| VII Any Item Combination of Items or Service
Referred to in Parts I through VI hereof notwithstanding the fact that the item combination of items or service is transferred between or among separate divisions subsidiaries or affiliates of the Offeror
If you have checked the above box and are claiming the ldquoAny item combination of items or Servicerdquo exemption please provide data regarding
|_| VIII Non-developmental Items
A non-developmental item as defined in FAR 2101 which has been developed exclusively at private expense and sold in substantial quantities on a competitive basis to multiple State and local governments
If claiming the Non-developmental Items exemption then the following must be provided
Key Inquiries and Summary of Supplierrsquos Supporting Information
Was the item previously developed
|_| Yes|_| NO
Was the item used exclusively for governmental purposes by a Federal agency a State or local government or a foreign government with which the United States has mutual defense cooperation agreement
|_| Yes|_| NO
If the item is to be modified do the modifications comply with Part III guidance on modifications
|_| Yes|_| NO
If the item is not yet in use does it otherwise qualify as a non-developmental item
|_| Yes|_| NO
Was the item developed exclusively at private expense
|_| Yes|_| NO
Is the item sold in substantial quantities on a competitive basis to multiple State and local governments
|_| Yes|_| NO
Please provide data regarding
|_| IX General Inquiries
Does the item qualify as a combination of items under Parts I II III and IV above
|_| Yes|_| NO
Has the item or services previously been determined to be commercial
|_| Yes|_| NO
If so by whom enspenspenspenspensp
|_| X Other Information
Is there other information of which you are aware that would supplement the information provided and would help substantiate whether the item or service is commercial
|_| Yes|_| NO
Have you provided such information
|_| Yes|_| NO
List such information enspenspenspenspensp
|_| XI Supplier Determination
Offeror hereby represents that the foregoing information is accurate and complete and that to the best of its knowledge information and belief goods and or services offered currently constitute ldquoa commercial itemrdquo as defined by FAR 2101
For PSEMC Internal Use Only
XII Supplier Determination
Supplier has claimed that the item component or service identified above is a commercial item under the definition at FAR 2101 I have reviewed and summarized the supplierrsquos support for that claim in the appropriate sections above Based on such review of such support information and any other information identified elsewhere herein I conclude that the supplier
|_| HAS |_| HAS NOT Supported its claim of commercial item status under the definition at FAR 2101
If the supplier HAS NOT supported its claim list reasons enspenspenspenspensp
Describe action plat to resolve enspenspenspenspensp
Comments enspenspenspenspensp
image1jpeg
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull This section of Table 15-2 describes the format an estimating approach we
are required to use when developing a proposal to modify an existingcontract In addition to the cost element breakdowns required as describedin the previous slides when there is a modification or change proposal FARalso requires the following table to be inserted into your proposal
41
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals
42FAR 15408 Table 15-2 III B
B Change Orders modifications and claims
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
Column 2 includes the cost of all work deleted This
includes cost of work deleted already performed (amount in Column 3) and
cost of work deleted not yet performed (Column 4)
Column 3 includes the cost of deleted work already
performed This amount will not be included in the credit (delete) adjustment amount (eg we will not give back costs already
incurred)
Column 4 includes cost for deleted work not yet performed ndash must be priced using current
estimates (but the current estimate may be the same as
the original estimate) ndash it is develed similar to a normal ldquoaddrdquo proposal with a few
exceptions
Column 5 includes the cost of the
new work and is developed as we do any
other proposal
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull Detail for columns listed on previous page
1 Enter appropriate cost element2 Enter current estimates of what it would take to complete the deleted work that
has not yet been performed3 Enter current cost of deleted work already performed This should be based on
actuals and copies to support these actuals should be included in the proposal4 Enter the net cost to be deleted (Column 2 minus Column 3)5 Enter your estimate for cost of work added by the change6 Enter the net cost of change (Column 5 minus Column 4)7 Identify where in your proposal the supporting documentation and basis of
estimate can be found for each of these sections
43FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull For purposes of determining if a proposal an cost or pricing data are
required from individual suppliers on a change proposal the absolute valueof the ldquodeleterdquo amount plus the ldquoaddrdquo amount is computed for each supplierthat exceeds the cost and pricing threshold (TINA)
bull Remember from FAR 15403-4(b) ndash if the absolute value for an individualsupplier exceeds the cost and pricing threshold (TINA) and the supplier iseither an actual supplier (will continue to provide partsservices on thiscontract) the supplier is required to provide a proposal and cost or pricingdata in support of the change proposal
bull Deleted amount is our current estimate (generally no the original contractvalue unless it is our current estimate)
44FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull If a supplierrsquos quantities are changing due to a modification the net delete
or add amount is used to determine if the supplier exceeds the cost andpricing threshold (TINA)
bull The estimator should not consider the old quantity as the delete and thenew quantity as the add (eg in computing absolute value) whendetermining if the supplier exceeds the threshold in cases where quantitiesare changing
bull The development of the appropriate deletion is not simply the estimatedcost of the deleted quantity ndash this will overstate the credit
45FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals Cost of WorkDeleted for a Partial Deleted Quantitybull In cases where part of a material quantity is being deleted (eg original
contract requires 100 widgets and the contract is modified to delete 30 ofthem) one method of estimating the amount of the delete is
1 Develop a current estimate of the extended cost for the item(s) given the originalquantity
2 Develop a current estimate of the extended cost for the items at the lower(remaining) quantity
3 The delta between these two values represents the amount of the delete
bull The same method can be used if the contract is modified to increase aquantity for a part
46FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklist
47
bull The Supplier Proposal Adequacy Checklist is accessed from the externalPSEMC supplier website
bull Additional supplier proposal guidance and resources are available(information templates and tools to assist in building a FAR compliantproposal
bull Supplier proposal guidance
bull Supplier Proposal Adequacy Guidelines
bull PSEMC document templates
bull Supplier proposal adequacy checklistbull Contract pricing proposal cover sheet
httpspsemccomsuppliers
- Strategic Affordability Analysis
- Purpose of this Guideline
- Table of Contents
- Table of Contents
- Supplier Proposal Adequacy Checklist
- Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
- Cover Sheet
- Cover Sheet Example ndash Reference Form DI-SUP-105F02
- Index
- Index Example
- Cost Element Breakdown by Line Item
- Cost Element Breakdown by Line Item Example
- Summary Cost Element Breakdown
- Summary Cost Element Breakdown - Example
- Summary Cost Element Breakdown - Example
- Material
- Material
- Individual Bills of Material Example
- Consolidated Bill of Material Example
- Consolidated Bill of Material
- Material
- Material
- Material
- Labor
- Labor
- Labor
- Labor Hours Example
- Labor Hours Example ndash Actual Production History
- Labor Hours Examples ndash Basis of Estimate
- Other Direct Costs (ODC)
- Nonrecurring Expenses (NRE)
- NRE
- Rates
- Rates
- Summary
- Summary
- Other Types of Proposals
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals Cost of WorkDeleted for a Partial Deleted Quantity
- Supplier Proposal Adequacy Checklist
-
| Buyer (Type or Print Name) | Date |
| Offeror | |||
| By | |||
| Title | |||
| Date |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp | ||
| (iii) Total number of customers involved in such sales | enspenspenspenspensp |
| (a) Transfer price(s) of such goods | $ enspenspenspenspensp | ||
| (b) Total units of such goods and or | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| Unmodified Items Identified in Part 1 | Modified Items Proposed to PSMEC | Unit Value of Modification | |||||||
| Unmodified Item | Unmodified Price | Modified Item | Modified Price to PSEMC | ||||||
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| To the general public in the time-frame beginning | enspenspenspenspensp | enspenspenspenspensp | and ending | enspenspenspenspensp |
| (a) Sales | |||||
| (b) Leases | |||||
| (c) Licenses | |||||
| (d) Offers to Sell 1 | |||||
| (e) Offers to Lease 2 | |||||
| (f) Offers to License 3 |
| Part Number | |||
| Description | |||
| Offeror |
| Completion of this checklist and supporting information is required for all single source proposals that exceed the TINA threshold where no valid exception (FAR 15403-1) applies If the supplier is claiming an exemption for commercial terms only the first line on the checklist is applicable | |||||
| Supplier enspenspenspenspensp | Supplier Proposal Number enspenspenspenspensp | ||||
| Exemption to CampP Data Commercial Item (Section 3 of Instruction) | |_| Support Included | Located in Section Page enspenspenspenspensp | |||
| Pricing Proposal Coversheet or Equivalent (21 of Instruction) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Point of Contact (21 of Instruction) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| DCMADCAA Points of Contact (Include Name Phone Address Cage Code and E-mail Address) (21 of Instruction) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Cost Element Detail and Cost Element Summary (24 of Instruction) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Individual Bill of Material and Consolidated Bill of Material (25 of Instruction) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Material Basis of Estimate (251 of Instruction) and Copies of POsQuotes | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Sub-tier Cost Analysis (if required) (251 of Instruction) | |_| Included | Located in Section Page or ECDs enspenspenspenspensp | |||
| Labor History (26 amp 261 of Instruction) and Basis of Estimate | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Support for ODC (27 of Instruction) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Support for Rates (17 and 28 of Instruction) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Nonrecurring Engineering (NRE) (14 and 15) Use of Government Property to Include Serial Tooling andor Special Test Equipment | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Expenditure Plan (Required to Support Cost Type Proposals or Performance Based Progress Payments) | |_| Included | Located in Section Page enspenspenspenspensp | |||
| Supplier | |||||
| By Signing below you are confirming that required cost and pricing data is part of your proposal and meets the requirements of Pacific Scientificrsquos proposal pricing instructions | |||||
| Sellerrsquos Representative (type or Print) enspenspenspenspensp | Signature enspenspenspenspensp | Date (MMDDYYYY) enspenspenspenspensp | |||
| Pacific Scientific | |||||
| By Signing below the supplier manager is confirming receipt of the items required for this proposal and meets the requirements of Pacific Scientificrsquos proposal pricing instructions | |||||
| Buyer (Type or Print) enspenspenspenspensp | Signature enspenspenspenspensp | Date (MMDDYYYY) enspenspenspenspensp | |||
| Supplier Manager (Type or Print) enspenspenspenspensp | Signature enspenspenspenspensp | Date (MMDDYYYY) enspenspenspenspensp |
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Cover Sheetbull Include a cover sheet that includes the following information
bull Solicitation Numberbull Name and Address of offerorbull Name and Telephone number of point of contactbull Name address phone number and email for your DCMA and DCAAbull Type of contract actionbull Proposed cost profit or fee and total price ndash maximum proposal valuebull If you will require the use of government propertybull Whether your organization is subject to cost accounting standards (CAS) ndash see
details in FAR 15-408 Table 15-2 I A (8)bull The statement designated in FAR 15408 Table 15-2 I A (9)bull Date of Submissionbull Name title and signature of authorized representative
bull Most contractors use the Government Form 1411 or equivalent
bull An example is provided on the next slide
7
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Cover Sheet Example ndashReference Form DI-SUP-105F02
8
Point of Contact
Proposed Cost
Period of Performance
DCAA Contact Information
Include Statement from FAR 15408 Table 15-2 IA (9)
DCMA Contact Information
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Indexbull Include an index that references where the supporting data for your
estimates is located in the proposalbull The Index should include the following information
bull Title of information being referenced (Summary cost element breakdown materiallabor etc
bull Location in the proposal (page number or file name and page if located in a separatefiledocument)
bull An example is provided in the next slide
9
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Index ExampleProposal No HLQxxxxxDate January xx xxxx ABC Company
Index1 Cover sheet Page xx
2 Business section Page xx
21 Assumptions and Conditions Page xx
3 Pricing Page xx
31 Unit Pricing Page xx
32 Cost Element by Part Number Page xx
33 Cost Element Summary Page xx
4 Material Page xx
41 Bill of Materials by Part Number Page xx
42 Consolidated Bill of Materials Page xx
43 Purchase Orders and Quotes (File PO-QuotesPDF) Page xx
5 Labor Page xx
6 Etc Page xx
10
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Cost Element Breakdown by Line Itembull A cost element breakdown is required for each proposed line item If the
proposal covers multiple price points or multiple years a cost elementbreakdown will be required for each price point for each year
bull For example assume your proposal includes the following three line items
bull You would need to provide separate cost element breakdowns for parts ABCABB and the NRE See the next slide for an example
Slight differences due to rounding
11
Part Number Quantity Unit Price Total PricePart ABC 50 $12500 $625000Part ABB 75 $10300 $772500NRE 1 $145000Total $1542500
FAR 15408 Table 15-2 I D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Cost Element Breakdown by Line Item Example
12FAR 15408 Table 15-2 I D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summary Cost Element Breakdownbull When more than one contract line item (Part Number NRE etc) is
proposed you must provide summary total amounts covering all items foreach element of cost If the proposal covers a high mid and low point thesummary needs to only be for those points not all the differentcombinations that can result from range pricing If the proposal is formultiple years there needs to be a summary for each of the yearsbull For example if your proposal included the following
bull You would need to provide a summary by cost element that includes the totalproposed value of $1542500 See the next slide for an example showing thethree individual cost elements being combined into a summary
Slight differences due to rounding
13
Part Number Quantity Unit Price Total PricePart ABC 50 $12500 $625000Part ABB 75 $10300 $772500NRE 1 $145000Total $1542500
FAR 15408 Table 15-2 I E
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summary Cost Element Breakdown - Example
14FAR 15408 Table 15-2 I E
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summary Cost Element Breakdown - Example
15
bull If the proposal is a base year plus option years there needs to be asummary Cost Element Breakdown for each of the years at the points in theRFP requiring Cost or Pricing data
FAR 15408 Table 15-2 I E
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Include a BOM for each individual part proposed A BOM is a list of the raw
materials subassemblies etc needed to manufacture a product
bull Provide your BOMs in Excel formatbull The consolidated and individual BOMs need to identify the following for each line
itembull Part Number and descriptionbull Supplierbull Quantitybull Unit Price ndash Unit pricing on the BOM should tie to the supportbull Total Pricebull Basis for pricing (vendor quotes purchase orders)
Source of pricing (purchase order quotes etc) must be referenced in the BOM
bull PSEMC will require copies of the support (ie quotes purchase orders) for asample of the items on the BOM during the cost analysis
16FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull If attritionyield or scrap are added to your material you will need to submit
adequate basis of estimates and support as appropriate
bull There are time when your BOM may be impacted by minimum buys or NREthat is passed along from your supplier If this happens make sure this isclearly identified on the BOM and the support quotes or purchase orders
bull In addition to the individual BOMs FAR requires a consolidated BOM inyour proposal A consolidated BOM is a listing of the material needed forthe proposal A consolidated BOM combines all the materials for each ofthe parts being procured as well as assemblies services or materialassociated with NRE
17FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Individual Bills of Material Example
18
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Consolidated Bill of Material Examplebull Below is an example of a consolidated BOM This BOM was developed by
taking the three individual BOMrsquos on the previous page and combining themtogetherbull In a consolidated BOM part numbers and quantities should be combined (or
subtotaled) if they are the same parts For example the BOMs for Part Nos ABCand ABB both require the same Connector and Screw In the consolidated BOMthe requirements have been combined and reflect the total number of Connectorsand Screws that will be needed for this proposal
19
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Consolidated Bill of Materialbull If the proposal is for a base year plus option years there needs to be a
consolidated BOM for each of the years at each of the points in the RFPrequiring cost or pricing
bull To determine if a subtier cost analysis is required you need to add togetherthe anticipated costs for each supplier for all years In the above examplethere are two suppliers that will require cost analysis (Ford and Motion)
20
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Supplier proposals
bull A cost analysis report is required if any of your suppliersrsquo proposals exceedthe Truth in Negotiations Act (TINA) threshold These need to be submittedwith your proposal
bull If the cost analysis for a supplier is not complete at the time of your proposalsubmittal a schedule listing the estimated completion dates for each supplierneeds to be provided in the proposal
bull If an exemption applies that eliminates the need for a cost analysis (commercial orcompetitively priced) documentation needs to be provided to support these claims
21FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull If you claim your supplier was competed and the value is over the TINA
threshold you will need to provide the following
bull Evidence that an RFP or solicitation to bid was sent to two or more supplierscapable of providing the goods or services requested
bull Copies of the quotes received from each of the suppliers who were competedbull Supplierrsquos analysis with basis of rationale for why the winning bid represents the best value
(lowest price technical considerations etc)
bull If you claim your supplierrsquos parts or services are commercial refer to thecommercial section in this document
22FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Refer to the detailed instructions in the RFP when your proposal supports a
base year plus options contract or a long term agreement Guidance shouldbe provided here on the consolidation and subtier requirements If youhave any questions regarding this contact your PSEMC Supply Chainrepresentative
bull Inter-organizational costs
bull Inter-organizational costs are defined as the costs of items transferred betweendivisions within the same company
bull If you have bid any inter-organizational costs in your proposal you will need toprovide a cost element breakdown for each inter-organizational transfer andsupport as appropriate
bull One more thing
bull If you have a supplier with a value in excess of $135 million or is greater than 10percent of your total proposal and exceeds the TINA threshold FAR 15408 Table15-2 requires that we submit the supplierrsquos proposal and cost or pricing data withour own proposal
23FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Provide a time-phased (eg monthly quarterly) breakdown of labor hours ratesand cost by appropriate category and furnish basis for estimates
24FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Proposed labor hours are generally a combination of direct and support laborhours
bull Direct Labor Hours ndash Hours that can be identified specifically to a final end itembull Support Labor Hours ndash Hours that cannot be specifically identified to one end item For
example a production manager may be in charge of overseeing the manufacturing ofmultiple parts
25FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull You need to provide a breakdown of the labor hours by labor category and
function along with a basis of estimate for the proposed labor hours
bull For example if you propose 500 hours for an end item you would need to providea breakdown by categoryfunction (assembly inspection supervisor engineeretc) You also will need to provide a detailed basis of estimate for eachcategoryfunction showing how your arrived at the hours for the proposed laborcategory
bull Generally the basis should be actual production history An alternative approach isthe use of engineering estimates if the item has not been manufactured before
bull Cost Accounting Standards (CAS) 401 requires that a company isconsistent between proposals and accounting practices The way acompany estimates its labor hours needs to also be the way it accumulatesits production history
26FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours ExampleProposal No HLQxxxxxDate January 1 20xx ABC Corporation
Labor HoursProposed Labor Hours ndash 8279 hrsunit for Part ABC
27
Direct Labor HrsUnitAssembly 3800 Machinist 350 QA 762 Engineer 1 238
Subtotal 5151
Production Support HrsUnitMfg Supervisor 920Eng Supervisor 368QA supervisor 920Production Mgr 920
Subtotal 3128
Total Hrs 8279
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Example ndash Actual Production History
28
ProposedDuration - Months 7 9 24 12 Qty 30 39 110 50 End Date 11152006 982007 912009
Direct Labor Total Hrs HrsUnit Total Hours HrsUnit Total Hrs HrsUnit Total Hrs HrsUnitAssembly 1836 6120 1675 4295 4338 3944 1900 3800 Machinist 169 564 154 396 400 363 175 350 QA 368 1238 336 862 870 791 381 762 Engineer 1 115 383 105 269 272 247 119 238
Production Support Total Hrs Total Hrs Total Hrs Total Hrs HrsUnitMFG Supervisor 268 345 920 460 920 Eng Supervisor 107 138 184 184 368 QA Supervisor 268 345 920 460 920 Production Mgr 268 345 920 460 920
HrsUnit 8279
Acutal Production History - Part ABC
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Examples ndash Basis of Estimatebull Basis of estimate for direct labor
bull Proposed direct labor hours were developed by apply a 90 percent learningcurve to the production labor history for part BBC You need to provide abasis for the 90 percent curve
bull Basis of estimate for the manufacturing supervisorbull The manufacturing supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 920 hours were used over a 24-month periodSince the current proposal has been estimated to cover 12 months 460hours were applied to the manufacturing supervisor (920 divided by 2)
bull Basis of estimate for engineering supervisorbull The engineering supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 184 hours were necessary to complete the taskThis task is similar and so we estimate 184 hours
29
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Direct Costs (ODC)bull List other expenses not otherwise included under material and labor (eg
travel freight) and provide basis for pricing
bull For example the basis for travel would include the location number of tripsnumber of people attending and the estimated expenses for the travel
30FAR 15408 Table 15-2 II D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Nonrecurring Expenses (NRE)bull NRE refers to one-time costs that you would not normally see from proposal
to proposal
bull Examples of NRE are as follows
bull Special Toolingbull New Equipmentbull Equipment Refurbishmentbull Hours and materials associated with increase throughput capacitybull Hours and materials to research develop design and test new processesbull One-Time review events
31FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
NREbull As mentioned earlier NRE charges must be broken out by cost element
This means the material and labor components associated with the NREare clearly broken out
bull Material ndash any material associated with NRE should be supported by supplierquotes or purchase orders
bull Labor ndash labor hours associated with NRE should have basis of estimates(BOE) that are broken down by labor category and include detaileddescriptions of the tasks that will be performed
32FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Rates include direct labor overhead general and administrative expenses
(GampA) and cost of money (COM)
bull PSEMC has the capability to perform rate audits on suppliers in lieu ofhaving the DCAA do this
bull If you allow PSEMC to perform this rate audit you need to provide thefollowing information
bull Explanation as to how the rates were calculatedbull Detailed documentation (financial statements labor pools listing of unallowable
expenses etc) that support the rate calculationsbull If the detailed documentation is based on budgetary numbers you will also need
to provide three years of your most current actuals to support you budgetarynumbers
bull If budgetary numbers differ significantly from the most recent actuals providedetailed explanations for these differences
33FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Facilities Capital COM
bull When you elect to claim COM submit a completed form CASB-CFM (FacilitiesCapital Cost of Money Factors Computation) in accordance with FAR 31205-10Also complete DD Form 1861 and include a copy in your proposal submissionBoth forms can be found on-line at various locations
34FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull In summary all noncompetitive noncommercial proposals valued at more
than the cost and pricing threshold (TINA) are required to include thefollowing information
35
Required Items Page FAR Reference
Supplier Proposal Adequacy Checklist Pg 5-6 PSEMC Policy
Cover Sheet - SF1411 or equivalent Pg 7-8 FAR 15408 Table 15-2 I A
Index Pg 9-10 FAR 15408 Table 15-2 I B
Cost Element Breakdown Pg 11-12 FAR 15408 Table 15-2 I D
Summary Cost Element Breakdown Pg 13-15 FAR 15408 Table 15-2 I E
Material (Including Consolidated BOM) Pg 16-23 FAR 15408 Table 15-2 II A
Labor Pg 24-29 FAR 15408 Table 15-2 II B
ODC Pg 30 FAR 15408 Table 15-2 II D
NRE Pg 31-32 FAR 15408 Table 15-2 II
Rates Pg 33-34 FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull Sufficient rationale and supporting documentation to support each of the
proposed cost elements is also required
bull Obtaining adequate supplier proposals is always on the critical path sincePSEMC cannot submit its proposal to the government until it has receivedadequate proposals from its subcontractors Therefore it is critical thatadequate supplier proposals are obtained as quickly as possible
36
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Types of Proposalsbull Commercial item proposals
bull Change proposals
bull The following slides are only applicable in certain situations
37
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you or one of your suppliers is providing a commercial part cost or pricing
data and a cost analysis is not required However you must demonstrate that the part is commercial and that the price is reasonable
bull A commercial item is any item other than real property that is a type customarily used by the general public or by a nongovernment entity
bull Has also been sold leased or licensed to the general public or has been offered for sale lease or license to the general public
bull A final commercial determination is made by the government contracting officer If the items is deemed to not be commercial the supplier is required to submit a complete proposal that includes cost and pricing data
38FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you claim one or more of your parts are commercial you need to support
your position by providing the following information
bull Copies of applicable portions of a company catalogue or website address that shows the item with a description and unit price
bull Show that these items can be purchased by the general public or nongovernmentalagency
bull If a website or catalogue is not available copies of invoices showing the sale of these items to nongovernment entities is sufficient
39FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull PSEMC policy requires suppliers to complete a PSEMC Supplier Proposal
Adequacy Checklist (sent with the RFP) for all proposals where the supplierclaims its parts are commercial
bull An example of the Supplier Proposal Adequacy Checklist for commercialitems is attached reference form DI-SUP-310F01
40PSEMC Policy
Pacific Scientific EMC ndash Commercial Item Status
If claiming an exemption offeror must provide the appropriate information to determine commerciality Refusal to provide the required information can result in an assist audit being requested from the Defense Contract Audit Agency or other cognizant Government Audit Agencies and or a determination that goods andor services offered do not constitute a ldquocommercial itemrdquo
Offeror hereby represents that to the best of its knowledge information and belief goods andor services offered constitute a ldquocommercial itemrdquo as defined by FAR 2101 because it constitutes
A Commercial Item or Component Justification (required for any claim)
Key Inquiries and Summary of your Supporting Information
What is the relevant ldquotyperdquo of item enspenspenspenspensp
What are the types of items uses by the general public or by non-governmental entities for other than governmental purposes enspenspenspenspensp
What indicates the type of itemrsquos use described above is customary enspenspenspenspensp
Has the offered item itself (as opposed to the type of item) been sold or offered for sale
|_| Yes|_| NO
Are the offered itemrsquos sales (or offers to sale) to the general public
|_| Yes|_| NO
Please provide data regarding sales leases or licenses of this item and identification of the non-government use entities
ValueNon-Government Use Entities
(date)(date)
In addition as an appendix to this commercial item determination provide supporting documentation in the form of
1that have not materialized into sales
2that have not materialized into leases
3that have not materialized into licenses
1 Verification of sales history to source documents
2 Identification of customarily offered discounts for the item
3 Verification of the item to an existing catalog or price list and
4 Verification of historical data for an item previously not determined commercial that the offeror is now trying to qualify as a commercial item
(check box(es) as appropriate)
|_| I Unmodified Commercial Items or Components (Complete Section A)
Any item other than real property that is a of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes and
(i) Has been sold leased or licensed to the general public or
(ii) Has been offered for sale lease or license to the general public
|_| II Item Evolved from Commercial Items or Components
Any item that evolved from an item described in Part I (which is required if claiming this exemption) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace but will be available in the commercial marketplace in time to satisfy the delivery requirements under a United States Government solicitation
If claiming the item Evolved from Commercial Items or Components exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use Part I)
|_| Yes|_| NO
If yes describe the relationship of the modifications to the Federal Government requirement enspenspenspenspensp
What are the advances in technology or performance between the offered item and the commercial item on which it is based enspenspenspenspensp
What is your support for such advances enspenspenspenspensp
What is your support for availability of the item in time to meet requirements Is the claim availability reasonable enspenspenspenspensp
Please provide data regarding
(a) Currently pending offers including
(b) Planned Offers Including
In all instances scheduled for delivery no later than the delivery requirements under the
(c) Data in the format of Part I for completed sales of the item from which the ldquocommercial itemrdquo evolved
|_| III Modified Commercial Items or Components
Any item that would satisfy a criterion expressed in Part I or II hereof but for -
|_| (i) Modifications of a type customarily available in the commercial marketplace
If claiming Modified Commercial Item or Components that are of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use part I or parts II and II)
|_| Yes|_| NO
What are the modifications that would be made to the commercial item enspenspenspenspensp
Are the modifications of a type customarily available in the commercial marketplace
|_| Yes|_| NO
Summarize your support for customary availability of the modification in the commercial marketplace enspenspenspenspensp
|_| (ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet federal government requirements ldquoMinor modificationsrdquo means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component or change the purpose of a process Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product Dollar values and percentages may be used as guideposts but are not conclusive evidence that a modification is minor
If claiming Modified Commercial Items or Components that are not of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Are the modifications made to satisfy Federal Government requirements
|_| Yes|_| NO
Do the modifications alter the nongovernmental function or essential physical characteristics of the item
|_| Yes|_| NO
If yes what are the alterations enspenspenspenspensp
Does the modified item retain a predominance of nongovernmental functions or physical characteristics
|_| Yes|_| NO
Summarize your support describing the value of the modifications in comparison to the value of the final product enspenspenspenspensp
Summarize your support for the magnitude or size of the modifications in relation to the magnitude or size of the final product enspenspenspenspensp
Are there any other factors which would allow you to conclude that the modifications are minor
|_| Yes|_| NO
If yes what are they enspenspenspenspensp
Based on the above does the modification qualify as a minor modification
|_| Yes|_| NO
Please provide data regarding the minor modification and the total price to PSEMC of Minor Modifications
Price to PSEMC of all Minor Modifications at quantities proposed in this pricing action enspenspenspenspensp
Minor modifications that exceed the thresholds in FAR 15403-1(c)(3)(iii)(B) are subject to the Certified Cost or Pricing Data requirements and must be proposed as described by FAR 15408 Table 152
|_| IV Commercial Items Support Services
Installation services maintenance services repair services training services and other services if -
(i) Such services are procured for support of an item referred to in Parts I II III or IV hereof regardless of whether such services are provided by the same source or at the same time as the item and
(ii) The source of such services provided similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government
If claiming Commercial Item Support Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services procured for the support of a commercial item which qualifies under a preceding part
|_| Yes|_| NO
Describe the nature of the services and how they support the commercial item enspenspenspenspensp
Are the services provided at the same time to the general public and the Federal Government
|_| Yes|_| NO
Are the terms and conditions for the services similar to those offered to the general public
|_| Yes|_| NO
Describe differences enspenspenspenspensp
Please provide data regarding
a Open and completed contracts including
b Pending offers including
|_| V Any Combination of Items
Meeting the requirements of Parts I II III or IV hereof that are of a type customarily combined and sold in combination to the general public
If you have checked the above box and are claiming the Any Combination of Items exemption please attach hereto information as requ3sted for Parts I II III and IV
|_| VI Other Commercial Services
Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions For purposes of these services -
(i) Catalog price means a price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor is either published or otherwise available for inspection by customers and states prices at which sales are currently or were last made to a significant number of buyers constituting the general public and
(ii) Market prices means current prices that are established in the course of ordinary trade between buyers and sellers free to bargain and that can be substantiated through competition or from source independent of the offerors
If claiming the Other Commercial Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services sold competitively in substantial quantities in the commercial marketplace
|_| Yes|_| NO
If no are the services of a type sold in substantial quantities in the commercial marketplace
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If yes what is the ldquotyperdquo of service enspenspenspenspensp
Summarize your support for same enspenspenspenspensp
Are the prices quoted for specific tasks performed or specific outcomes to be achieved
|_| Yes|_| NO
Are the services offered consistent with your standard terms and conditions
|_| Yes|_| NO
Are the services of a type sold at catalog or market prices
|_| Yes|_| NO
If sold at catalog price is the price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor
|_| Yes|_| NO
If sold at catalog price is the catalog or its equivalent either published or otherwise available for inspection by customers
|_| Yes|_| NO
Summarize your support for same (include a copy of the catalog or provide location) enspenspenspenspensp
If sold at a catalog price are the listed prices those at which sales are currently or were last made to a significant number of buyers in the general public
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If sold at a market price are the prices established in the course of ordinary trade between buyers and sellers free to bargain
|_| Yes|_| NO
Summarize you support for same enspenspenspenspensp
If sold at market price can the price be substantiated through competition or from sources independent of the offeror
|_| Yes|_| NO
Summarize your support for same
Please provide data regarding
(a) Open and completed contracts including
(b) Pending Offers including
|_| VII Any Item Combination of Items or Service
Referred to in Parts I through VI hereof notwithstanding the fact that the item combination of items or service is transferred between or among separate divisions subsidiaries or affiliates of the Offeror
If you have checked the above box and are claiming the ldquoAny item combination of items or Servicerdquo exemption please provide data regarding
|_| VIII Non-developmental Items
A non-developmental item as defined in FAR 2101 which has been developed exclusively at private expense and sold in substantial quantities on a competitive basis to multiple State and local governments
If claiming the Non-developmental Items exemption then the following must be provided
Key Inquiries and Summary of Supplierrsquos Supporting Information
Was the item previously developed
|_| Yes|_| NO
Was the item used exclusively for governmental purposes by a Federal agency a State or local government or a foreign government with which the United States has mutual defense cooperation agreement
|_| Yes|_| NO
If the item is to be modified do the modifications comply with Part III guidance on modifications
|_| Yes|_| NO
If the item is not yet in use does it otherwise qualify as a non-developmental item
|_| Yes|_| NO
Was the item developed exclusively at private expense
|_| Yes|_| NO
Is the item sold in substantial quantities on a competitive basis to multiple State and local governments
|_| Yes|_| NO
Please provide data regarding
|_| IX General Inquiries
Does the item qualify as a combination of items under Parts I II III and IV above
|_| Yes|_| NO
Has the item or services previously been determined to be commercial
|_| Yes|_| NO
If so by whom enspenspenspenspensp
|_| X Other Information
Is there other information of which you are aware that would supplement the information provided and would help substantiate whether the item or service is commercial
|_| Yes|_| NO
Have you provided such information
|_| Yes|_| NO
List such information enspenspenspenspensp
|_| XI Supplier Determination
Offeror hereby represents that the foregoing information is accurate and complete and that to the best of its knowledge information and belief goods and or services offered currently constitute ldquoa commercial itemrdquo as defined by FAR 2101
For PSEMC Internal Use Only
XII Supplier Determination
Supplier has claimed that the item component or service identified above is a commercial item under the definition at FAR 2101 I have reviewed and summarized the supplierrsquos support for that claim in the appropriate sections above Based on such review of such support information and any other information identified elsewhere herein I conclude that the supplier
|_| HAS |_| HAS NOT Supported its claim of commercial item status under the definition at FAR 2101
If the supplier HAS NOT supported its claim list reasons enspenspenspenspensp
Describe action plat to resolve enspenspenspenspensp
Comments enspenspenspenspensp
image1jpeg
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull This section of Table 15-2 describes the format an estimating approach we
are required to use when developing a proposal to modify an existingcontract In addition to the cost element breakdowns required as describedin the previous slides when there is a modification or change proposal FARalso requires the following table to be inserted into your proposal
41
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals
42FAR 15408 Table 15-2 III B
B Change Orders modifications and claims
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
Column 2 includes the cost of all work deleted This
includes cost of work deleted already performed (amount in Column 3) and
cost of work deleted not yet performed (Column 4)
Column 3 includes the cost of deleted work already
performed This amount will not be included in the credit (delete) adjustment amount (eg we will not give back costs already
incurred)
Column 4 includes cost for deleted work not yet performed ndash must be priced using current
estimates (but the current estimate may be the same as
the original estimate) ndash it is develed similar to a normal ldquoaddrdquo proposal with a few
exceptions
Column 5 includes the cost of the
new work and is developed as we do any
other proposal
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull Detail for columns listed on previous page
1 Enter appropriate cost element2 Enter current estimates of what it would take to complete the deleted work that
has not yet been performed3 Enter current cost of deleted work already performed This should be based on
actuals and copies to support these actuals should be included in the proposal4 Enter the net cost to be deleted (Column 2 minus Column 3)5 Enter your estimate for cost of work added by the change6 Enter the net cost of change (Column 5 minus Column 4)7 Identify where in your proposal the supporting documentation and basis of
estimate can be found for each of these sections
43FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull For purposes of determining if a proposal an cost or pricing data are
required from individual suppliers on a change proposal the absolute valueof the ldquodeleterdquo amount plus the ldquoaddrdquo amount is computed for each supplierthat exceeds the cost and pricing threshold (TINA)
bull Remember from FAR 15403-4(b) ndash if the absolute value for an individualsupplier exceeds the cost and pricing threshold (TINA) and the supplier iseither an actual supplier (will continue to provide partsservices on thiscontract) the supplier is required to provide a proposal and cost or pricingdata in support of the change proposal
bull Deleted amount is our current estimate (generally no the original contractvalue unless it is our current estimate)
44FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull If a supplierrsquos quantities are changing due to a modification the net delete
or add amount is used to determine if the supplier exceeds the cost andpricing threshold (TINA)
bull The estimator should not consider the old quantity as the delete and thenew quantity as the add (eg in computing absolute value) whendetermining if the supplier exceeds the threshold in cases where quantitiesare changing
bull The development of the appropriate deletion is not simply the estimatedcost of the deleted quantity ndash this will overstate the credit
45FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals Cost of WorkDeleted for a Partial Deleted Quantitybull In cases where part of a material quantity is being deleted (eg original
contract requires 100 widgets and the contract is modified to delete 30 ofthem) one method of estimating the amount of the delete is
1 Develop a current estimate of the extended cost for the item(s) given the originalquantity
2 Develop a current estimate of the extended cost for the items at the lower(remaining) quantity
3 The delta between these two values represents the amount of the delete
bull The same method can be used if the contract is modified to increase aquantity for a part
46FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklist
47
bull The Supplier Proposal Adequacy Checklist is accessed from the externalPSEMC supplier website
bull Additional supplier proposal guidance and resources are available(information templates and tools to assist in building a FAR compliantproposal
bull Supplier proposal guidance
bull Supplier Proposal Adequacy Guidelines
bull PSEMC document templates
bull Supplier proposal adequacy checklistbull Contract pricing proposal cover sheet
httpspsemccomsuppliers
- Strategic Affordability Analysis
- Purpose of this Guideline
- Table of Contents
- Table of Contents
- Supplier Proposal Adequacy Checklist
- Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
- Cover Sheet
- Cover Sheet Example ndash Reference Form DI-SUP-105F02
- Index
- Index Example
- Cost Element Breakdown by Line Item
- Cost Element Breakdown by Line Item Example
- Summary Cost Element Breakdown
- Summary Cost Element Breakdown - Example
- Summary Cost Element Breakdown - Example
- Material
- Material
- Individual Bills of Material Example
- Consolidated Bill of Material Example
- Consolidated Bill of Material
- Material
- Material
- Material
- Labor
- Labor
- Labor
- Labor Hours Example
- Labor Hours Example ndash Actual Production History
- Labor Hours Examples ndash Basis of Estimate
- Other Direct Costs (ODC)
- Nonrecurring Expenses (NRE)
- NRE
- Rates
- Rates
- Summary
- Summary
- Other Types of Proposals
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals Cost of WorkDeleted for a Partial Deleted Quantity
- Supplier Proposal Adequacy Checklist
-
| Buyer (Type or Print Name) | Date |
| Offeror | |||
| By | |||
| Title | |||
| Date |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp | ||
| (iii) Total number of customers involved in such sales | enspenspenspenspensp |
| (a) Transfer price(s) of such goods | $ enspenspenspenspensp | ||
| (b) Total units of such goods and or | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| Unmodified Items Identified in Part 1 | Modified Items Proposed to PSMEC | Unit Value of Modification | |||||||
| Unmodified Item | Unmodified Price | Modified Item | Modified Price to PSEMC | ||||||
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| To the general public in the time-frame beginning | enspenspenspenspensp | enspenspenspenspensp | and ending | enspenspenspenspensp |
| (a) Sales | |||||
| (b) Leases | |||||
| (c) Licenses | |||||
| (d) Offers to Sell 1 | |||||
| (e) Offers to Lease 2 | |||||
| (f) Offers to License 3 |
| Part Number | |||
| Description | |||
| Offeror |
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Cover Sheet Example ndashReference Form DI-SUP-105F02
8
Point of Contact
Proposed Cost
Period of Performance
DCAA Contact Information
Include Statement from FAR 15408 Table 15-2 IA (9)
DCMA Contact Information
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Indexbull Include an index that references where the supporting data for your
estimates is located in the proposalbull The Index should include the following information
bull Title of information being referenced (Summary cost element breakdown materiallabor etc
bull Location in the proposal (page number or file name and page if located in a separatefiledocument)
bull An example is provided in the next slide
9
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Index ExampleProposal No HLQxxxxxDate January xx xxxx ABC Company
Index1 Cover sheet Page xx
2 Business section Page xx
21 Assumptions and Conditions Page xx
3 Pricing Page xx
31 Unit Pricing Page xx
32 Cost Element by Part Number Page xx
33 Cost Element Summary Page xx
4 Material Page xx
41 Bill of Materials by Part Number Page xx
42 Consolidated Bill of Materials Page xx
43 Purchase Orders and Quotes (File PO-QuotesPDF) Page xx
5 Labor Page xx
6 Etc Page xx
10
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Cost Element Breakdown by Line Itembull A cost element breakdown is required for each proposed line item If the
proposal covers multiple price points or multiple years a cost elementbreakdown will be required for each price point for each year
bull For example assume your proposal includes the following three line items
bull You would need to provide separate cost element breakdowns for parts ABCABB and the NRE See the next slide for an example
Slight differences due to rounding
11
Part Number Quantity Unit Price Total PricePart ABC 50 $12500 $625000Part ABB 75 $10300 $772500NRE 1 $145000Total $1542500
FAR 15408 Table 15-2 I D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Cost Element Breakdown by Line Item Example
12FAR 15408 Table 15-2 I D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summary Cost Element Breakdownbull When more than one contract line item (Part Number NRE etc) is
proposed you must provide summary total amounts covering all items foreach element of cost If the proposal covers a high mid and low point thesummary needs to only be for those points not all the differentcombinations that can result from range pricing If the proposal is formultiple years there needs to be a summary for each of the yearsbull For example if your proposal included the following
bull You would need to provide a summary by cost element that includes the totalproposed value of $1542500 See the next slide for an example showing thethree individual cost elements being combined into a summary
Slight differences due to rounding
13
Part Number Quantity Unit Price Total PricePart ABC 50 $12500 $625000Part ABB 75 $10300 $772500NRE 1 $145000Total $1542500
FAR 15408 Table 15-2 I E
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summary Cost Element Breakdown - Example
14FAR 15408 Table 15-2 I E
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summary Cost Element Breakdown - Example
15
bull If the proposal is a base year plus option years there needs to be asummary Cost Element Breakdown for each of the years at the points in theRFP requiring Cost or Pricing data
FAR 15408 Table 15-2 I E
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Include a BOM for each individual part proposed A BOM is a list of the raw
materials subassemblies etc needed to manufacture a product
bull Provide your BOMs in Excel formatbull The consolidated and individual BOMs need to identify the following for each line
itembull Part Number and descriptionbull Supplierbull Quantitybull Unit Price ndash Unit pricing on the BOM should tie to the supportbull Total Pricebull Basis for pricing (vendor quotes purchase orders)
Source of pricing (purchase order quotes etc) must be referenced in the BOM
bull PSEMC will require copies of the support (ie quotes purchase orders) for asample of the items on the BOM during the cost analysis
16FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull If attritionyield or scrap are added to your material you will need to submit
adequate basis of estimates and support as appropriate
bull There are time when your BOM may be impacted by minimum buys or NREthat is passed along from your supplier If this happens make sure this isclearly identified on the BOM and the support quotes or purchase orders
bull In addition to the individual BOMs FAR requires a consolidated BOM inyour proposal A consolidated BOM is a listing of the material needed forthe proposal A consolidated BOM combines all the materials for each ofthe parts being procured as well as assemblies services or materialassociated with NRE
17FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Individual Bills of Material Example
18
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Consolidated Bill of Material Examplebull Below is an example of a consolidated BOM This BOM was developed by
taking the three individual BOMrsquos on the previous page and combining themtogetherbull In a consolidated BOM part numbers and quantities should be combined (or
subtotaled) if they are the same parts For example the BOMs for Part Nos ABCand ABB both require the same Connector and Screw In the consolidated BOMthe requirements have been combined and reflect the total number of Connectorsand Screws that will be needed for this proposal
19
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Consolidated Bill of Materialbull If the proposal is for a base year plus option years there needs to be a
consolidated BOM for each of the years at each of the points in the RFPrequiring cost or pricing
bull To determine if a subtier cost analysis is required you need to add togetherthe anticipated costs for each supplier for all years In the above examplethere are two suppliers that will require cost analysis (Ford and Motion)
20
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Supplier proposals
bull A cost analysis report is required if any of your suppliersrsquo proposals exceedthe Truth in Negotiations Act (TINA) threshold These need to be submittedwith your proposal
bull If the cost analysis for a supplier is not complete at the time of your proposalsubmittal a schedule listing the estimated completion dates for each supplierneeds to be provided in the proposal
bull If an exemption applies that eliminates the need for a cost analysis (commercial orcompetitively priced) documentation needs to be provided to support these claims
21FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull If you claim your supplier was competed and the value is over the TINA
threshold you will need to provide the following
bull Evidence that an RFP or solicitation to bid was sent to two or more supplierscapable of providing the goods or services requested
bull Copies of the quotes received from each of the suppliers who were competedbull Supplierrsquos analysis with basis of rationale for why the winning bid represents the best value
(lowest price technical considerations etc)
bull If you claim your supplierrsquos parts or services are commercial refer to thecommercial section in this document
22FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Refer to the detailed instructions in the RFP when your proposal supports a
base year plus options contract or a long term agreement Guidance shouldbe provided here on the consolidation and subtier requirements If youhave any questions regarding this contact your PSEMC Supply Chainrepresentative
bull Inter-organizational costs
bull Inter-organizational costs are defined as the costs of items transferred betweendivisions within the same company
bull If you have bid any inter-organizational costs in your proposal you will need toprovide a cost element breakdown for each inter-organizational transfer andsupport as appropriate
bull One more thing
bull If you have a supplier with a value in excess of $135 million or is greater than 10percent of your total proposal and exceeds the TINA threshold FAR 15408 Table15-2 requires that we submit the supplierrsquos proposal and cost or pricing data withour own proposal
23FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Provide a time-phased (eg monthly quarterly) breakdown of labor hours ratesand cost by appropriate category and furnish basis for estimates
24FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Proposed labor hours are generally a combination of direct and support laborhours
bull Direct Labor Hours ndash Hours that can be identified specifically to a final end itembull Support Labor Hours ndash Hours that cannot be specifically identified to one end item For
example a production manager may be in charge of overseeing the manufacturing ofmultiple parts
25FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull You need to provide a breakdown of the labor hours by labor category and
function along with a basis of estimate for the proposed labor hours
bull For example if you propose 500 hours for an end item you would need to providea breakdown by categoryfunction (assembly inspection supervisor engineeretc) You also will need to provide a detailed basis of estimate for eachcategoryfunction showing how your arrived at the hours for the proposed laborcategory
bull Generally the basis should be actual production history An alternative approach isthe use of engineering estimates if the item has not been manufactured before
bull Cost Accounting Standards (CAS) 401 requires that a company isconsistent between proposals and accounting practices The way acompany estimates its labor hours needs to also be the way it accumulatesits production history
26FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours ExampleProposal No HLQxxxxxDate January 1 20xx ABC Corporation
Labor HoursProposed Labor Hours ndash 8279 hrsunit for Part ABC
27
Direct Labor HrsUnitAssembly 3800 Machinist 350 QA 762 Engineer 1 238
Subtotal 5151
Production Support HrsUnitMfg Supervisor 920Eng Supervisor 368QA supervisor 920Production Mgr 920
Subtotal 3128
Total Hrs 8279
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Example ndash Actual Production History
28
ProposedDuration - Months 7 9 24 12 Qty 30 39 110 50 End Date 11152006 982007 912009
Direct Labor Total Hrs HrsUnit Total Hours HrsUnit Total Hrs HrsUnit Total Hrs HrsUnitAssembly 1836 6120 1675 4295 4338 3944 1900 3800 Machinist 169 564 154 396 400 363 175 350 QA 368 1238 336 862 870 791 381 762 Engineer 1 115 383 105 269 272 247 119 238
Production Support Total Hrs Total Hrs Total Hrs Total Hrs HrsUnitMFG Supervisor 268 345 920 460 920 Eng Supervisor 107 138 184 184 368 QA Supervisor 268 345 920 460 920 Production Mgr 268 345 920 460 920
HrsUnit 8279
Acutal Production History - Part ABC
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Examples ndash Basis of Estimatebull Basis of estimate for direct labor
bull Proposed direct labor hours were developed by apply a 90 percent learningcurve to the production labor history for part BBC You need to provide abasis for the 90 percent curve
bull Basis of estimate for the manufacturing supervisorbull The manufacturing supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 920 hours were used over a 24-month periodSince the current proposal has been estimated to cover 12 months 460hours were applied to the manufacturing supervisor (920 divided by 2)
bull Basis of estimate for engineering supervisorbull The engineering supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 184 hours were necessary to complete the taskThis task is similar and so we estimate 184 hours
29
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Direct Costs (ODC)bull List other expenses not otherwise included under material and labor (eg
travel freight) and provide basis for pricing
bull For example the basis for travel would include the location number of tripsnumber of people attending and the estimated expenses for the travel
30FAR 15408 Table 15-2 II D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Nonrecurring Expenses (NRE)bull NRE refers to one-time costs that you would not normally see from proposal
to proposal
bull Examples of NRE are as follows
bull Special Toolingbull New Equipmentbull Equipment Refurbishmentbull Hours and materials associated with increase throughput capacitybull Hours and materials to research develop design and test new processesbull One-Time review events
31FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
NREbull As mentioned earlier NRE charges must be broken out by cost element
This means the material and labor components associated with the NREare clearly broken out
bull Material ndash any material associated with NRE should be supported by supplierquotes or purchase orders
bull Labor ndash labor hours associated with NRE should have basis of estimates(BOE) that are broken down by labor category and include detaileddescriptions of the tasks that will be performed
32FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Rates include direct labor overhead general and administrative expenses
(GampA) and cost of money (COM)
bull PSEMC has the capability to perform rate audits on suppliers in lieu ofhaving the DCAA do this
bull If you allow PSEMC to perform this rate audit you need to provide thefollowing information
bull Explanation as to how the rates were calculatedbull Detailed documentation (financial statements labor pools listing of unallowable
expenses etc) that support the rate calculationsbull If the detailed documentation is based on budgetary numbers you will also need
to provide three years of your most current actuals to support you budgetarynumbers
bull If budgetary numbers differ significantly from the most recent actuals providedetailed explanations for these differences
33FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Facilities Capital COM
bull When you elect to claim COM submit a completed form CASB-CFM (FacilitiesCapital Cost of Money Factors Computation) in accordance with FAR 31205-10Also complete DD Form 1861 and include a copy in your proposal submissionBoth forms can be found on-line at various locations
34FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull In summary all noncompetitive noncommercial proposals valued at more
than the cost and pricing threshold (TINA) are required to include thefollowing information
35
Required Items Page FAR Reference
Supplier Proposal Adequacy Checklist Pg 5-6 PSEMC Policy
Cover Sheet - SF1411 or equivalent Pg 7-8 FAR 15408 Table 15-2 I A
Index Pg 9-10 FAR 15408 Table 15-2 I B
Cost Element Breakdown Pg 11-12 FAR 15408 Table 15-2 I D
Summary Cost Element Breakdown Pg 13-15 FAR 15408 Table 15-2 I E
Material (Including Consolidated BOM) Pg 16-23 FAR 15408 Table 15-2 II A
Labor Pg 24-29 FAR 15408 Table 15-2 II B
ODC Pg 30 FAR 15408 Table 15-2 II D
NRE Pg 31-32 FAR 15408 Table 15-2 II
Rates Pg 33-34 FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull Sufficient rationale and supporting documentation to support each of the
proposed cost elements is also required
bull Obtaining adequate supplier proposals is always on the critical path sincePSEMC cannot submit its proposal to the government until it has receivedadequate proposals from its subcontractors Therefore it is critical thatadequate supplier proposals are obtained as quickly as possible
36
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Types of Proposalsbull Commercial item proposals
bull Change proposals
bull The following slides are only applicable in certain situations
37
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you or one of your suppliers is providing a commercial part cost or pricing
data and a cost analysis is not required However you must demonstrate that the part is commercial and that the price is reasonable
bull A commercial item is any item other than real property that is a type customarily used by the general public or by a nongovernment entity
bull Has also been sold leased or licensed to the general public or has been offered for sale lease or license to the general public
bull A final commercial determination is made by the government contracting officer If the items is deemed to not be commercial the supplier is required to submit a complete proposal that includes cost and pricing data
38FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you claim one or more of your parts are commercial you need to support
your position by providing the following information
bull Copies of applicable portions of a company catalogue or website address that shows the item with a description and unit price
bull Show that these items can be purchased by the general public or nongovernmentalagency
bull If a website or catalogue is not available copies of invoices showing the sale of these items to nongovernment entities is sufficient
39FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull PSEMC policy requires suppliers to complete a PSEMC Supplier Proposal
Adequacy Checklist (sent with the RFP) for all proposals where the supplierclaims its parts are commercial
bull An example of the Supplier Proposal Adequacy Checklist for commercialitems is attached reference form DI-SUP-310F01
40PSEMC Policy
Pacific Scientific EMC ndash Commercial Item Status
If claiming an exemption offeror must provide the appropriate information to determine commerciality Refusal to provide the required information can result in an assist audit being requested from the Defense Contract Audit Agency or other cognizant Government Audit Agencies and or a determination that goods andor services offered do not constitute a ldquocommercial itemrdquo
Offeror hereby represents that to the best of its knowledge information and belief goods andor services offered constitute a ldquocommercial itemrdquo as defined by FAR 2101 because it constitutes
A Commercial Item or Component Justification (required for any claim)
Key Inquiries and Summary of your Supporting Information
What is the relevant ldquotyperdquo of item enspenspenspenspensp
What are the types of items uses by the general public or by non-governmental entities for other than governmental purposes enspenspenspenspensp
What indicates the type of itemrsquos use described above is customary enspenspenspenspensp
Has the offered item itself (as opposed to the type of item) been sold or offered for sale
|_| Yes|_| NO
Are the offered itemrsquos sales (or offers to sale) to the general public
|_| Yes|_| NO
Please provide data regarding sales leases or licenses of this item and identification of the non-government use entities
ValueNon-Government Use Entities
(date)(date)
In addition as an appendix to this commercial item determination provide supporting documentation in the form of
1that have not materialized into sales
2that have not materialized into leases
3that have not materialized into licenses
1 Verification of sales history to source documents
2 Identification of customarily offered discounts for the item
3 Verification of the item to an existing catalog or price list and
4 Verification of historical data for an item previously not determined commercial that the offeror is now trying to qualify as a commercial item
(check box(es) as appropriate)
|_| I Unmodified Commercial Items or Components (Complete Section A)
Any item other than real property that is a of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes and
(i) Has been sold leased or licensed to the general public or
(ii) Has been offered for sale lease or license to the general public
|_| II Item Evolved from Commercial Items or Components
Any item that evolved from an item described in Part I (which is required if claiming this exemption) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace but will be available in the commercial marketplace in time to satisfy the delivery requirements under a United States Government solicitation
If claiming the item Evolved from Commercial Items or Components exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use Part I)
|_| Yes|_| NO
If yes describe the relationship of the modifications to the Federal Government requirement enspenspenspenspensp
What are the advances in technology or performance between the offered item and the commercial item on which it is based enspenspenspenspensp
What is your support for such advances enspenspenspenspensp
What is your support for availability of the item in time to meet requirements Is the claim availability reasonable enspenspenspenspensp
Please provide data regarding
(a) Currently pending offers including
(b) Planned Offers Including
In all instances scheduled for delivery no later than the delivery requirements under the
(c) Data in the format of Part I for completed sales of the item from which the ldquocommercial itemrdquo evolved
|_| III Modified Commercial Items or Components
Any item that would satisfy a criterion expressed in Part I or II hereof but for -
|_| (i) Modifications of a type customarily available in the commercial marketplace
If claiming Modified Commercial Item or Components that are of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use part I or parts II and II)
|_| Yes|_| NO
What are the modifications that would be made to the commercial item enspenspenspenspensp
Are the modifications of a type customarily available in the commercial marketplace
|_| Yes|_| NO
Summarize your support for customary availability of the modification in the commercial marketplace enspenspenspenspensp
|_| (ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet federal government requirements ldquoMinor modificationsrdquo means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component or change the purpose of a process Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product Dollar values and percentages may be used as guideposts but are not conclusive evidence that a modification is minor
If claiming Modified Commercial Items or Components that are not of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Are the modifications made to satisfy Federal Government requirements
|_| Yes|_| NO
Do the modifications alter the nongovernmental function or essential physical characteristics of the item
|_| Yes|_| NO
If yes what are the alterations enspenspenspenspensp
Does the modified item retain a predominance of nongovernmental functions or physical characteristics
|_| Yes|_| NO
Summarize your support describing the value of the modifications in comparison to the value of the final product enspenspenspenspensp
Summarize your support for the magnitude or size of the modifications in relation to the magnitude or size of the final product enspenspenspenspensp
Are there any other factors which would allow you to conclude that the modifications are minor
|_| Yes|_| NO
If yes what are they enspenspenspenspensp
Based on the above does the modification qualify as a minor modification
|_| Yes|_| NO
Please provide data regarding the minor modification and the total price to PSEMC of Minor Modifications
Price to PSEMC of all Minor Modifications at quantities proposed in this pricing action enspenspenspenspensp
Minor modifications that exceed the thresholds in FAR 15403-1(c)(3)(iii)(B) are subject to the Certified Cost or Pricing Data requirements and must be proposed as described by FAR 15408 Table 152
|_| IV Commercial Items Support Services
Installation services maintenance services repair services training services and other services if -
(i) Such services are procured for support of an item referred to in Parts I II III or IV hereof regardless of whether such services are provided by the same source or at the same time as the item and
(ii) The source of such services provided similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government
If claiming Commercial Item Support Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services procured for the support of a commercial item which qualifies under a preceding part
|_| Yes|_| NO
Describe the nature of the services and how they support the commercial item enspenspenspenspensp
Are the services provided at the same time to the general public and the Federal Government
|_| Yes|_| NO
Are the terms and conditions for the services similar to those offered to the general public
|_| Yes|_| NO
Describe differences enspenspenspenspensp
Please provide data regarding
a Open and completed contracts including
b Pending offers including
|_| V Any Combination of Items
Meeting the requirements of Parts I II III or IV hereof that are of a type customarily combined and sold in combination to the general public
If you have checked the above box and are claiming the Any Combination of Items exemption please attach hereto information as requ3sted for Parts I II III and IV
|_| VI Other Commercial Services
Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions For purposes of these services -
(i) Catalog price means a price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor is either published or otherwise available for inspection by customers and states prices at which sales are currently or were last made to a significant number of buyers constituting the general public and
(ii) Market prices means current prices that are established in the course of ordinary trade between buyers and sellers free to bargain and that can be substantiated through competition or from source independent of the offerors
If claiming the Other Commercial Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services sold competitively in substantial quantities in the commercial marketplace
|_| Yes|_| NO
If no are the services of a type sold in substantial quantities in the commercial marketplace
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If yes what is the ldquotyperdquo of service enspenspenspenspensp
Summarize your support for same enspenspenspenspensp
Are the prices quoted for specific tasks performed or specific outcomes to be achieved
|_| Yes|_| NO
Are the services offered consistent with your standard terms and conditions
|_| Yes|_| NO
Are the services of a type sold at catalog or market prices
|_| Yes|_| NO
If sold at catalog price is the price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor
|_| Yes|_| NO
If sold at catalog price is the catalog or its equivalent either published or otherwise available for inspection by customers
|_| Yes|_| NO
Summarize your support for same (include a copy of the catalog or provide location) enspenspenspenspensp
If sold at a catalog price are the listed prices those at which sales are currently or were last made to a significant number of buyers in the general public
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If sold at a market price are the prices established in the course of ordinary trade between buyers and sellers free to bargain
|_| Yes|_| NO
Summarize you support for same enspenspenspenspensp
If sold at market price can the price be substantiated through competition or from sources independent of the offeror
|_| Yes|_| NO
Summarize your support for same
Please provide data regarding
(a) Open and completed contracts including
(b) Pending Offers including
|_| VII Any Item Combination of Items or Service
Referred to in Parts I through VI hereof notwithstanding the fact that the item combination of items or service is transferred between or among separate divisions subsidiaries or affiliates of the Offeror
If you have checked the above box and are claiming the ldquoAny item combination of items or Servicerdquo exemption please provide data regarding
|_| VIII Non-developmental Items
A non-developmental item as defined in FAR 2101 which has been developed exclusively at private expense and sold in substantial quantities on a competitive basis to multiple State and local governments
If claiming the Non-developmental Items exemption then the following must be provided
Key Inquiries and Summary of Supplierrsquos Supporting Information
Was the item previously developed
|_| Yes|_| NO
Was the item used exclusively for governmental purposes by a Federal agency a State or local government or a foreign government with which the United States has mutual defense cooperation agreement
|_| Yes|_| NO
If the item is to be modified do the modifications comply with Part III guidance on modifications
|_| Yes|_| NO
If the item is not yet in use does it otherwise qualify as a non-developmental item
|_| Yes|_| NO
Was the item developed exclusively at private expense
|_| Yes|_| NO
Is the item sold in substantial quantities on a competitive basis to multiple State and local governments
|_| Yes|_| NO
Please provide data regarding
|_| IX General Inquiries
Does the item qualify as a combination of items under Parts I II III and IV above
|_| Yes|_| NO
Has the item or services previously been determined to be commercial
|_| Yes|_| NO
If so by whom enspenspenspenspensp
|_| X Other Information
Is there other information of which you are aware that would supplement the information provided and would help substantiate whether the item or service is commercial
|_| Yes|_| NO
Have you provided such information
|_| Yes|_| NO
List such information enspenspenspenspensp
|_| XI Supplier Determination
Offeror hereby represents that the foregoing information is accurate and complete and that to the best of its knowledge information and belief goods and or services offered currently constitute ldquoa commercial itemrdquo as defined by FAR 2101
For PSEMC Internal Use Only
XII Supplier Determination
Supplier has claimed that the item component or service identified above is a commercial item under the definition at FAR 2101 I have reviewed and summarized the supplierrsquos support for that claim in the appropriate sections above Based on such review of such support information and any other information identified elsewhere herein I conclude that the supplier
|_| HAS |_| HAS NOT Supported its claim of commercial item status under the definition at FAR 2101
If the supplier HAS NOT supported its claim list reasons enspenspenspenspensp
Describe action plat to resolve enspenspenspenspensp
Comments enspenspenspenspensp
image1jpeg
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull This section of Table 15-2 describes the format an estimating approach we
are required to use when developing a proposal to modify an existingcontract In addition to the cost element breakdowns required as describedin the previous slides when there is a modification or change proposal FARalso requires the following table to be inserted into your proposal
41
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals
42FAR 15408 Table 15-2 III B
B Change Orders modifications and claims
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
Column 2 includes the cost of all work deleted This
includes cost of work deleted already performed (amount in Column 3) and
cost of work deleted not yet performed (Column 4)
Column 3 includes the cost of deleted work already
performed This amount will not be included in the credit (delete) adjustment amount (eg we will not give back costs already
incurred)
Column 4 includes cost for deleted work not yet performed ndash must be priced using current
estimates (but the current estimate may be the same as
the original estimate) ndash it is develed similar to a normal ldquoaddrdquo proposal with a few
exceptions
Column 5 includes the cost of the
new work and is developed as we do any
other proposal
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull Detail for columns listed on previous page
1 Enter appropriate cost element2 Enter current estimates of what it would take to complete the deleted work that
has not yet been performed3 Enter current cost of deleted work already performed This should be based on
actuals and copies to support these actuals should be included in the proposal4 Enter the net cost to be deleted (Column 2 minus Column 3)5 Enter your estimate for cost of work added by the change6 Enter the net cost of change (Column 5 minus Column 4)7 Identify where in your proposal the supporting documentation and basis of
estimate can be found for each of these sections
43FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull For purposes of determining if a proposal an cost or pricing data are
required from individual suppliers on a change proposal the absolute valueof the ldquodeleterdquo amount plus the ldquoaddrdquo amount is computed for each supplierthat exceeds the cost and pricing threshold (TINA)
bull Remember from FAR 15403-4(b) ndash if the absolute value for an individualsupplier exceeds the cost and pricing threshold (TINA) and the supplier iseither an actual supplier (will continue to provide partsservices on thiscontract) the supplier is required to provide a proposal and cost or pricingdata in support of the change proposal
bull Deleted amount is our current estimate (generally no the original contractvalue unless it is our current estimate)
44FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull If a supplierrsquos quantities are changing due to a modification the net delete
or add amount is used to determine if the supplier exceeds the cost andpricing threshold (TINA)
bull The estimator should not consider the old quantity as the delete and thenew quantity as the add (eg in computing absolute value) whendetermining if the supplier exceeds the threshold in cases where quantitiesare changing
bull The development of the appropriate deletion is not simply the estimatedcost of the deleted quantity ndash this will overstate the credit
45FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals Cost of WorkDeleted for a Partial Deleted Quantitybull In cases where part of a material quantity is being deleted (eg original
contract requires 100 widgets and the contract is modified to delete 30 ofthem) one method of estimating the amount of the delete is
1 Develop a current estimate of the extended cost for the item(s) given the originalquantity
2 Develop a current estimate of the extended cost for the items at the lower(remaining) quantity
3 The delta between these two values represents the amount of the delete
bull The same method can be used if the contract is modified to increase aquantity for a part
46FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklist
47
bull The Supplier Proposal Adequacy Checklist is accessed from the externalPSEMC supplier website
bull Additional supplier proposal guidance and resources are available(information templates and tools to assist in building a FAR compliantproposal
bull Supplier proposal guidance
bull Supplier Proposal Adequacy Guidelines
bull PSEMC document templates
bull Supplier proposal adequacy checklistbull Contract pricing proposal cover sheet
httpspsemccomsuppliers
- Strategic Affordability Analysis
- Purpose of this Guideline
- Table of Contents
- Table of Contents
- Supplier Proposal Adequacy Checklist
- Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
- Cover Sheet
- Cover Sheet Example ndash Reference Form DI-SUP-105F02
- Index
- Index Example
- Cost Element Breakdown by Line Item
- Cost Element Breakdown by Line Item Example
- Summary Cost Element Breakdown
- Summary Cost Element Breakdown - Example
- Summary Cost Element Breakdown - Example
- Material
- Material
- Individual Bills of Material Example
- Consolidated Bill of Material Example
- Consolidated Bill of Material
- Material
- Material
- Material
- Labor
- Labor
- Labor
- Labor Hours Example
- Labor Hours Example ndash Actual Production History
- Labor Hours Examples ndash Basis of Estimate
- Other Direct Costs (ODC)
- Nonrecurring Expenses (NRE)
- NRE
- Rates
- Rates
- Summary
- Summary
- Other Types of Proposals
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals Cost of WorkDeleted for a Partial Deleted Quantity
- Supplier Proposal Adequacy Checklist
-
| Buyer (Type or Print Name) | Date |
| Offeror | |||
| By | |||
| Title | |||
| Date |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp | ||
| (iii) Total number of customers involved in such sales | enspenspenspenspensp |
| (a) Transfer price(s) of such goods | $ enspenspenspenspensp | ||
| (b) Total units of such goods and or | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| Unmodified Items Identified in Part 1 | Modified Items Proposed to PSMEC | Unit Value of Modification | |||||||
| Unmodified Item | Unmodified Price | Modified Item | Modified Price to PSEMC | ||||||
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| To the general public in the time-frame beginning | enspenspenspenspensp | enspenspenspenspensp | and ending | enspenspenspenspensp |
| (a) Sales | |||||
| (b) Leases | |||||
| (c) Licenses | |||||
| (d) Offers to Sell 1 | |||||
| (e) Offers to Lease 2 | |||||
| (f) Offers to License 3 |
| Part Number | |||
| Description | |||
| Offeror |
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Indexbull Include an index that references where the supporting data for your
estimates is located in the proposalbull The Index should include the following information
bull Title of information being referenced (Summary cost element breakdown materiallabor etc
bull Location in the proposal (page number or file name and page if located in a separatefiledocument)
bull An example is provided in the next slide
9
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Index ExampleProposal No HLQxxxxxDate January xx xxxx ABC Company
Index1 Cover sheet Page xx
2 Business section Page xx
21 Assumptions and Conditions Page xx
3 Pricing Page xx
31 Unit Pricing Page xx
32 Cost Element by Part Number Page xx
33 Cost Element Summary Page xx
4 Material Page xx
41 Bill of Materials by Part Number Page xx
42 Consolidated Bill of Materials Page xx
43 Purchase Orders and Quotes (File PO-QuotesPDF) Page xx
5 Labor Page xx
6 Etc Page xx
10
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Cost Element Breakdown by Line Itembull A cost element breakdown is required for each proposed line item If the
proposal covers multiple price points or multiple years a cost elementbreakdown will be required for each price point for each year
bull For example assume your proposal includes the following three line items
bull You would need to provide separate cost element breakdowns for parts ABCABB and the NRE See the next slide for an example
Slight differences due to rounding
11
Part Number Quantity Unit Price Total PricePart ABC 50 $12500 $625000Part ABB 75 $10300 $772500NRE 1 $145000Total $1542500
FAR 15408 Table 15-2 I D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Cost Element Breakdown by Line Item Example
12FAR 15408 Table 15-2 I D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summary Cost Element Breakdownbull When more than one contract line item (Part Number NRE etc) is
proposed you must provide summary total amounts covering all items foreach element of cost If the proposal covers a high mid and low point thesummary needs to only be for those points not all the differentcombinations that can result from range pricing If the proposal is formultiple years there needs to be a summary for each of the yearsbull For example if your proposal included the following
bull You would need to provide a summary by cost element that includes the totalproposed value of $1542500 See the next slide for an example showing thethree individual cost elements being combined into a summary
Slight differences due to rounding
13
Part Number Quantity Unit Price Total PricePart ABC 50 $12500 $625000Part ABB 75 $10300 $772500NRE 1 $145000Total $1542500
FAR 15408 Table 15-2 I E
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summary Cost Element Breakdown - Example
14FAR 15408 Table 15-2 I E
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summary Cost Element Breakdown - Example
15
bull If the proposal is a base year plus option years there needs to be asummary Cost Element Breakdown for each of the years at the points in theRFP requiring Cost or Pricing data
FAR 15408 Table 15-2 I E
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Include a BOM for each individual part proposed A BOM is a list of the raw
materials subassemblies etc needed to manufacture a product
bull Provide your BOMs in Excel formatbull The consolidated and individual BOMs need to identify the following for each line
itembull Part Number and descriptionbull Supplierbull Quantitybull Unit Price ndash Unit pricing on the BOM should tie to the supportbull Total Pricebull Basis for pricing (vendor quotes purchase orders)
Source of pricing (purchase order quotes etc) must be referenced in the BOM
bull PSEMC will require copies of the support (ie quotes purchase orders) for asample of the items on the BOM during the cost analysis
16FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull If attritionyield or scrap are added to your material you will need to submit
adequate basis of estimates and support as appropriate
bull There are time when your BOM may be impacted by minimum buys or NREthat is passed along from your supplier If this happens make sure this isclearly identified on the BOM and the support quotes or purchase orders
bull In addition to the individual BOMs FAR requires a consolidated BOM inyour proposal A consolidated BOM is a listing of the material needed forthe proposal A consolidated BOM combines all the materials for each ofthe parts being procured as well as assemblies services or materialassociated with NRE
17FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Individual Bills of Material Example
18
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Consolidated Bill of Material Examplebull Below is an example of a consolidated BOM This BOM was developed by
taking the three individual BOMrsquos on the previous page and combining themtogetherbull In a consolidated BOM part numbers and quantities should be combined (or
subtotaled) if they are the same parts For example the BOMs for Part Nos ABCand ABB both require the same Connector and Screw In the consolidated BOMthe requirements have been combined and reflect the total number of Connectorsand Screws that will be needed for this proposal
19
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Consolidated Bill of Materialbull If the proposal is for a base year plus option years there needs to be a
consolidated BOM for each of the years at each of the points in the RFPrequiring cost or pricing
bull To determine if a subtier cost analysis is required you need to add togetherthe anticipated costs for each supplier for all years In the above examplethere are two suppliers that will require cost analysis (Ford and Motion)
20
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Supplier proposals
bull A cost analysis report is required if any of your suppliersrsquo proposals exceedthe Truth in Negotiations Act (TINA) threshold These need to be submittedwith your proposal
bull If the cost analysis for a supplier is not complete at the time of your proposalsubmittal a schedule listing the estimated completion dates for each supplierneeds to be provided in the proposal
bull If an exemption applies that eliminates the need for a cost analysis (commercial orcompetitively priced) documentation needs to be provided to support these claims
21FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull If you claim your supplier was competed and the value is over the TINA
threshold you will need to provide the following
bull Evidence that an RFP or solicitation to bid was sent to two or more supplierscapable of providing the goods or services requested
bull Copies of the quotes received from each of the suppliers who were competedbull Supplierrsquos analysis with basis of rationale for why the winning bid represents the best value
(lowest price technical considerations etc)
bull If you claim your supplierrsquos parts or services are commercial refer to thecommercial section in this document
22FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Refer to the detailed instructions in the RFP when your proposal supports a
base year plus options contract or a long term agreement Guidance shouldbe provided here on the consolidation and subtier requirements If youhave any questions regarding this contact your PSEMC Supply Chainrepresentative
bull Inter-organizational costs
bull Inter-organizational costs are defined as the costs of items transferred betweendivisions within the same company
bull If you have bid any inter-organizational costs in your proposal you will need toprovide a cost element breakdown for each inter-organizational transfer andsupport as appropriate
bull One more thing
bull If you have a supplier with a value in excess of $135 million or is greater than 10percent of your total proposal and exceeds the TINA threshold FAR 15408 Table15-2 requires that we submit the supplierrsquos proposal and cost or pricing data withour own proposal
23FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Provide a time-phased (eg monthly quarterly) breakdown of labor hours ratesand cost by appropriate category and furnish basis for estimates
24FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Proposed labor hours are generally a combination of direct and support laborhours
bull Direct Labor Hours ndash Hours that can be identified specifically to a final end itembull Support Labor Hours ndash Hours that cannot be specifically identified to one end item For
example a production manager may be in charge of overseeing the manufacturing ofmultiple parts
25FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull You need to provide a breakdown of the labor hours by labor category and
function along with a basis of estimate for the proposed labor hours
bull For example if you propose 500 hours for an end item you would need to providea breakdown by categoryfunction (assembly inspection supervisor engineeretc) You also will need to provide a detailed basis of estimate for eachcategoryfunction showing how your arrived at the hours for the proposed laborcategory
bull Generally the basis should be actual production history An alternative approach isthe use of engineering estimates if the item has not been manufactured before
bull Cost Accounting Standards (CAS) 401 requires that a company isconsistent between proposals and accounting practices The way acompany estimates its labor hours needs to also be the way it accumulatesits production history
26FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours ExampleProposal No HLQxxxxxDate January 1 20xx ABC Corporation
Labor HoursProposed Labor Hours ndash 8279 hrsunit for Part ABC
27
Direct Labor HrsUnitAssembly 3800 Machinist 350 QA 762 Engineer 1 238
Subtotal 5151
Production Support HrsUnitMfg Supervisor 920Eng Supervisor 368QA supervisor 920Production Mgr 920
Subtotal 3128
Total Hrs 8279
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Example ndash Actual Production History
28
ProposedDuration - Months 7 9 24 12 Qty 30 39 110 50 End Date 11152006 982007 912009
Direct Labor Total Hrs HrsUnit Total Hours HrsUnit Total Hrs HrsUnit Total Hrs HrsUnitAssembly 1836 6120 1675 4295 4338 3944 1900 3800 Machinist 169 564 154 396 400 363 175 350 QA 368 1238 336 862 870 791 381 762 Engineer 1 115 383 105 269 272 247 119 238
Production Support Total Hrs Total Hrs Total Hrs Total Hrs HrsUnitMFG Supervisor 268 345 920 460 920 Eng Supervisor 107 138 184 184 368 QA Supervisor 268 345 920 460 920 Production Mgr 268 345 920 460 920
HrsUnit 8279
Acutal Production History - Part ABC
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Examples ndash Basis of Estimatebull Basis of estimate for direct labor
bull Proposed direct labor hours were developed by apply a 90 percent learningcurve to the production labor history for part BBC You need to provide abasis for the 90 percent curve
bull Basis of estimate for the manufacturing supervisorbull The manufacturing supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 920 hours were used over a 24-month periodSince the current proposal has been estimated to cover 12 months 460hours were applied to the manufacturing supervisor (920 divided by 2)
bull Basis of estimate for engineering supervisorbull The engineering supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 184 hours were necessary to complete the taskThis task is similar and so we estimate 184 hours
29
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Direct Costs (ODC)bull List other expenses not otherwise included under material and labor (eg
travel freight) and provide basis for pricing
bull For example the basis for travel would include the location number of tripsnumber of people attending and the estimated expenses for the travel
30FAR 15408 Table 15-2 II D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Nonrecurring Expenses (NRE)bull NRE refers to one-time costs that you would not normally see from proposal
to proposal
bull Examples of NRE are as follows
bull Special Toolingbull New Equipmentbull Equipment Refurbishmentbull Hours and materials associated with increase throughput capacitybull Hours and materials to research develop design and test new processesbull One-Time review events
31FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
NREbull As mentioned earlier NRE charges must be broken out by cost element
This means the material and labor components associated with the NREare clearly broken out
bull Material ndash any material associated with NRE should be supported by supplierquotes or purchase orders
bull Labor ndash labor hours associated with NRE should have basis of estimates(BOE) that are broken down by labor category and include detaileddescriptions of the tasks that will be performed
32FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Rates include direct labor overhead general and administrative expenses
(GampA) and cost of money (COM)
bull PSEMC has the capability to perform rate audits on suppliers in lieu ofhaving the DCAA do this
bull If you allow PSEMC to perform this rate audit you need to provide thefollowing information
bull Explanation as to how the rates were calculatedbull Detailed documentation (financial statements labor pools listing of unallowable
expenses etc) that support the rate calculationsbull If the detailed documentation is based on budgetary numbers you will also need
to provide three years of your most current actuals to support you budgetarynumbers
bull If budgetary numbers differ significantly from the most recent actuals providedetailed explanations for these differences
33FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Facilities Capital COM
bull When you elect to claim COM submit a completed form CASB-CFM (FacilitiesCapital Cost of Money Factors Computation) in accordance with FAR 31205-10Also complete DD Form 1861 and include a copy in your proposal submissionBoth forms can be found on-line at various locations
34FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull In summary all noncompetitive noncommercial proposals valued at more
than the cost and pricing threshold (TINA) are required to include thefollowing information
35
Required Items Page FAR Reference
Supplier Proposal Adequacy Checklist Pg 5-6 PSEMC Policy
Cover Sheet - SF1411 or equivalent Pg 7-8 FAR 15408 Table 15-2 I A
Index Pg 9-10 FAR 15408 Table 15-2 I B
Cost Element Breakdown Pg 11-12 FAR 15408 Table 15-2 I D
Summary Cost Element Breakdown Pg 13-15 FAR 15408 Table 15-2 I E
Material (Including Consolidated BOM) Pg 16-23 FAR 15408 Table 15-2 II A
Labor Pg 24-29 FAR 15408 Table 15-2 II B
ODC Pg 30 FAR 15408 Table 15-2 II D
NRE Pg 31-32 FAR 15408 Table 15-2 II
Rates Pg 33-34 FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull Sufficient rationale and supporting documentation to support each of the
proposed cost elements is also required
bull Obtaining adequate supplier proposals is always on the critical path sincePSEMC cannot submit its proposal to the government until it has receivedadequate proposals from its subcontractors Therefore it is critical thatadequate supplier proposals are obtained as quickly as possible
36
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Types of Proposalsbull Commercial item proposals
bull Change proposals
bull The following slides are only applicable in certain situations
37
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you or one of your suppliers is providing a commercial part cost or pricing
data and a cost analysis is not required However you must demonstrate that the part is commercial and that the price is reasonable
bull A commercial item is any item other than real property that is a type customarily used by the general public or by a nongovernment entity
bull Has also been sold leased or licensed to the general public or has been offered for sale lease or license to the general public
bull A final commercial determination is made by the government contracting officer If the items is deemed to not be commercial the supplier is required to submit a complete proposal that includes cost and pricing data
38FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you claim one or more of your parts are commercial you need to support
your position by providing the following information
bull Copies of applicable portions of a company catalogue or website address that shows the item with a description and unit price
bull Show that these items can be purchased by the general public or nongovernmentalagency
bull If a website or catalogue is not available copies of invoices showing the sale of these items to nongovernment entities is sufficient
39FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull PSEMC policy requires suppliers to complete a PSEMC Supplier Proposal
Adequacy Checklist (sent with the RFP) for all proposals where the supplierclaims its parts are commercial
bull An example of the Supplier Proposal Adequacy Checklist for commercialitems is attached reference form DI-SUP-310F01
40PSEMC Policy
Pacific Scientific EMC ndash Commercial Item Status
If claiming an exemption offeror must provide the appropriate information to determine commerciality Refusal to provide the required information can result in an assist audit being requested from the Defense Contract Audit Agency or other cognizant Government Audit Agencies and or a determination that goods andor services offered do not constitute a ldquocommercial itemrdquo
Offeror hereby represents that to the best of its knowledge information and belief goods andor services offered constitute a ldquocommercial itemrdquo as defined by FAR 2101 because it constitutes
A Commercial Item or Component Justification (required for any claim)
Key Inquiries and Summary of your Supporting Information
What is the relevant ldquotyperdquo of item enspenspenspenspensp
What are the types of items uses by the general public or by non-governmental entities for other than governmental purposes enspenspenspenspensp
What indicates the type of itemrsquos use described above is customary enspenspenspenspensp
Has the offered item itself (as opposed to the type of item) been sold or offered for sale
|_| Yes|_| NO
Are the offered itemrsquos sales (or offers to sale) to the general public
|_| Yes|_| NO
Please provide data regarding sales leases or licenses of this item and identification of the non-government use entities
ValueNon-Government Use Entities
(date)(date)
In addition as an appendix to this commercial item determination provide supporting documentation in the form of
1that have not materialized into sales
2that have not materialized into leases
3that have not materialized into licenses
1 Verification of sales history to source documents
2 Identification of customarily offered discounts for the item
3 Verification of the item to an existing catalog or price list and
4 Verification of historical data for an item previously not determined commercial that the offeror is now trying to qualify as a commercial item
(check box(es) as appropriate)
|_| I Unmodified Commercial Items or Components (Complete Section A)
Any item other than real property that is a of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes and
(i) Has been sold leased or licensed to the general public or
(ii) Has been offered for sale lease or license to the general public
|_| II Item Evolved from Commercial Items or Components
Any item that evolved from an item described in Part I (which is required if claiming this exemption) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace but will be available in the commercial marketplace in time to satisfy the delivery requirements under a United States Government solicitation
If claiming the item Evolved from Commercial Items or Components exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use Part I)
|_| Yes|_| NO
If yes describe the relationship of the modifications to the Federal Government requirement enspenspenspenspensp
What are the advances in technology or performance between the offered item and the commercial item on which it is based enspenspenspenspensp
What is your support for such advances enspenspenspenspensp
What is your support for availability of the item in time to meet requirements Is the claim availability reasonable enspenspenspenspensp
Please provide data regarding
(a) Currently pending offers including
(b) Planned Offers Including
In all instances scheduled for delivery no later than the delivery requirements under the
(c) Data in the format of Part I for completed sales of the item from which the ldquocommercial itemrdquo evolved
|_| III Modified Commercial Items or Components
Any item that would satisfy a criterion expressed in Part I or II hereof but for -
|_| (i) Modifications of a type customarily available in the commercial marketplace
If claiming Modified Commercial Item or Components that are of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use part I or parts II and II)
|_| Yes|_| NO
What are the modifications that would be made to the commercial item enspenspenspenspensp
Are the modifications of a type customarily available in the commercial marketplace
|_| Yes|_| NO
Summarize your support for customary availability of the modification in the commercial marketplace enspenspenspenspensp
|_| (ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet federal government requirements ldquoMinor modificationsrdquo means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component or change the purpose of a process Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product Dollar values and percentages may be used as guideposts but are not conclusive evidence that a modification is minor
If claiming Modified Commercial Items or Components that are not of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Are the modifications made to satisfy Federal Government requirements
|_| Yes|_| NO
Do the modifications alter the nongovernmental function or essential physical characteristics of the item
|_| Yes|_| NO
If yes what are the alterations enspenspenspenspensp
Does the modified item retain a predominance of nongovernmental functions or physical characteristics
|_| Yes|_| NO
Summarize your support describing the value of the modifications in comparison to the value of the final product enspenspenspenspensp
Summarize your support for the magnitude or size of the modifications in relation to the magnitude or size of the final product enspenspenspenspensp
Are there any other factors which would allow you to conclude that the modifications are minor
|_| Yes|_| NO
If yes what are they enspenspenspenspensp
Based on the above does the modification qualify as a minor modification
|_| Yes|_| NO
Please provide data regarding the minor modification and the total price to PSEMC of Minor Modifications
Price to PSEMC of all Minor Modifications at quantities proposed in this pricing action enspenspenspenspensp
Minor modifications that exceed the thresholds in FAR 15403-1(c)(3)(iii)(B) are subject to the Certified Cost or Pricing Data requirements and must be proposed as described by FAR 15408 Table 152
|_| IV Commercial Items Support Services
Installation services maintenance services repair services training services and other services if -
(i) Such services are procured for support of an item referred to in Parts I II III or IV hereof regardless of whether such services are provided by the same source or at the same time as the item and
(ii) The source of such services provided similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government
If claiming Commercial Item Support Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services procured for the support of a commercial item which qualifies under a preceding part
|_| Yes|_| NO
Describe the nature of the services and how they support the commercial item enspenspenspenspensp
Are the services provided at the same time to the general public and the Federal Government
|_| Yes|_| NO
Are the terms and conditions for the services similar to those offered to the general public
|_| Yes|_| NO
Describe differences enspenspenspenspensp
Please provide data regarding
a Open and completed contracts including
b Pending offers including
|_| V Any Combination of Items
Meeting the requirements of Parts I II III or IV hereof that are of a type customarily combined and sold in combination to the general public
If you have checked the above box and are claiming the Any Combination of Items exemption please attach hereto information as requ3sted for Parts I II III and IV
|_| VI Other Commercial Services
Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions For purposes of these services -
(i) Catalog price means a price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor is either published or otherwise available for inspection by customers and states prices at which sales are currently or were last made to a significant number of buyers constituting the general public and
(ii) Market prices means current prices that are established in the course of ordinary trade between buyers and sellers free to bargain and that can be substantiated through competition or from source independent of the offerors
If claiming the Other Commercial Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services sold competitively in substantial quantities in the commercial marketplace
|_| Yes|_| NO
If no are the services of a type sold in substantial quantities in the commercial marketplace
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If yes what is the ldquotyperdquo of service enspenspenspenspensp
Summarize your support for same enspenspenspenspensp
Are the prices quoted for specific tasks performed or specific outcomes to be achieved
|_| Yes|_| NO
Are the services offered consistent with your standard terms and conditions
|_| Yes|_| NO
Are the services of a type sold at catalog or market prices
|_| Yes|_| NO
If sold at catalog price is the price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor
|_| Yes|_| NO
If sold at catalog price is the catalog or its equivalent either published or otherwise available for inspection by customers
|_| Yes|_| NO
Summarize your support for same (include a copy of the catalog or provide location) enspenspenspenspensp
If sold at a catalog price are the listed prices those at which sales are currently or were last made to a significant number of buyers in the general public
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If sold at a market price are the prices established in the course of ordinary trade between buyers and sellers free to bargain
|_| Yes|_| NO
Summarize you support for same enspenspenspenspensp
If sold at market price can the price be substantiated through competition or from sources independent of the offeror
|_| Yes|_| NO
Summarize your support for same
Please provide data regarding
(a) Open and completed contracts including
(b) Pending Offers including
|_| VII Any Item Combination of Items or Service
Referred to in Parts I through VI hereof notwithstanding the fact that the item combination of items or service is transferred between or among separate divisions subsidiaries or affiliates of the Offeror
If you have checked the above box and are claiming the ldquoAny item combination of items or Servicerdquo exemption please provide data regarding
|_| VIII Non-developmental Items
A non-developmental item as defined in FAR 2101 which has been developed exclusively at private expense and sold in substantial quantities on a competitive basis to multiple State and local governments
If claiming the Non-developmental Items exemption then the following must be provided
Key Inquiries and Summary of Supplierrsquos Supporting Information
Was the item previously developed
|_| Yes|_| NO
Was the item used exclusively for governmental purposes by a Federal agency a State or local government or a foreign government with which the United States has mutual defense cooperation agreement
|_| Yes|_| NO
If the item is to be modified do the modifications comply with Part III guidance on modifications
|_| Yes|_| NO
If the item is not yet in use does it otherwise qualify as a non-developmental item
|_| Yes|_| NO
Was the item developed exclusively at private expense
|_| Yes|_| NO
Is the item sold in substantial quantities on a competitive basis to multiple State and local governments
|_| Yes|_| NO
Please provide data regarding
|_| IX General Inquiries
Does the item qualify as a combination of items under Parts I II III and IV above
|_| Yes|_| NO
Has the item or services previously been determined to be commercial
|_| Yes|_| NO
If so by whom enspenspenspenspensp
|_| X Other Information
Is there other information of which you are aware that would supplement the information provided and would help substantiate whether the item or service is commercial
|_| Yes|_| NO
Have you provided such information
|_| Yes|_| NO
List such information enspenspenspenspensp
|_| XI Supplier Determination
Offeror hereby represents that the foregoing information is accurate and complete and that to the best of its knowledge information and belief goods and or services offered currently constitute ldquoa commercial itemrdquo as defined by FAR 2101
For PSEMC Internal Use Only
XII Supplier Determination
Supplier has claimed that the item component or service identified above is a commercial item under the definition at FAR 2101 I have reviewed and summarized the supplierrsquos support for that claim in the appropriate sections above Based on such review of such support information and any other information identified elsewhere herein I conclude that the supplier
|_| HAS |_| HAS NOT Supported its claim of commercial item status under the definition at FAR 2101
If the supplier HAS NOT supported its claim list reasons enspenspenspenspensp
Describe action plat to resolve enspenspenspenspensp
Comments enspenspenspenspensp
image1jpeg
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull This section of Table 15-2 describes the format an estimating approach we
are required to use when developing a proposal to modify an existingcontract In addition to the cost element breakdowns required as describedin the previous slides when there is a modification or change proposal FARalso requires the following table to be inserted into your proposal
41
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals
42FAR 15408 Table 15-2 III B
B Change Orders modifications and claims
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
Column 2 includes the cost of all work deleted This
includes cost of work deleted already performed (amount in Column 3) and
cost of work deleted not yet performed (Column 4)
Column 3 includes the cost of deleted work already
performed This amount will not be included in the credit (delete) adjustment amount (eg we will not give back costs already
incurred)
Column 4 includes cost for deleted work not yet performed ndash must be priced using current
estimates (but the current estimate may be the same as
the original estimate) ndash it is develed similar to a normal ldquoaddrdquo proposal with a few
exceptions
Column 5 includes the cost of the
new work and is developed as we do any
other proposal
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull Detail for columns listed on previous page
1 Enter appropriate cost element2 Enter current estimates of what it would take to complete the deleted work that
has not yet been performed3 Enter current cost of deleted work already performed This should be based on
actuals and copies to support these actuals should be included in the proposal4 Enter the net cost to be deleted (Column 2 minus Column 3)5 Enter your estimate for cost of work added by the change6 Enter the net cost of change (Column 5 minus Column 4)7 Identify where in your proposal the supporting documentation and basis of
estimate can be found for each of these sections
43FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull For purposes of determining if a proposal an cost or pricing data are
required from individual suppliers on a change proposal the absolute valueof the ldquodeleterdquo amount plus the ldquoaddrdquo amount is computed for each supplierthat exceeds the cost and pricing threshold (TINA)
bull Remember from FAR 15403-4(b) ndash if the absolute value for an individualsupplier exceeds the cost and pricing threshold (TINA) and the supplier iseither an actual supplier (will continue to provide partsservices on thiscontract) the supplier is required to provide a proposal and cost or pricingdata in support of the change proposal
bull Deleted amount is our current estimate (generally no the original contractvalue unless it is our current estimate)
44FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull If a supplierrsquos quantities are changing due to a modification the net delete
or add amount is used to determine if the supplier exceeds the cost andpricing threshold (TINA)
bull The estimator should not consider the old quantity as the delete and thenew quantity as the add (eg in computing absolute value) whendetermining if the supplier exceeds the threshold in cases where quantitiesare changing
bull The development of the appropriate deletion is not simply the estimatedcost of the deleted quantity ndash this will overstate the credit
45FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals Cost of WorkDeleted for a Partial Deleted Quantitybull In cases where part of a material quantity is being deleted (eg original
contract requires 100 widgets and the contract is modified to delete 30 ofthem) one method of estimating the amount of the delete is
1 Develop a current estimate of the extended cost for the item(s) given the originalquantity
2 Develop a current estimate of the extended cost for the items at the lower(remaining) quantity
3 The delta between these two values represents the amount of the delete
bull The same method can be used if the contract is modified to increase aquantity for a part
46FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklist
47
bull The Supplier Proposal Adequacy Checklist is accessed from the externalPSEMC supplier website
bull Additional supplier proposal guidance and resources are available(information templates and tools to assist in building a FAR compliantproposal
bull Supplier proposal guidance
bull Supplier Proposal Adequacy Guidelines
bull PSEMC document templates
bull Supplier proposal adequacy checklistbull Contract pricing proposal cover sheet
httpspsemccomsuppliers
- Strategic Affordability Analysis
- Purpose of this Guideline
- Table of Contents
- Table of Contents
- Supplier Proposal Adequacy Checklist
- Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
- Cover Sheet
- Cover Sheet Example ndash Reference Form DI-SUP-105F02
- Index
- Index Example
- Cost Element Breakdown by Line Item
- Cost Element Breakdown by Line Item Example
- Summary Cost Element Breakdown
- Summary Cost Element Breakdown - Example
- Summary Cost Element Breakdown - Example
- Material
- Material
- Individual Bills of Material Example
- Consolidated Bill of Material Example
- Consolidated Bill of Material
- Material
- Material
- Material
- Labor
- Labor
- Labor
- Labor Hours Example
- Labor Hours Example ndash Actual Production History
- Labor Hours Examples ndash Basis of Estimate
- Other Direct Costs (ODC)
- Nonrecurring Expenses (NRE)
- NRE
- Rates
- Rates
- Summary
- Summary
- Other Types of Proposals
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals Cost of WorkDeleted for a Partial Deleted Quantity
- Supplier Proposal Adequacy Checklist
-
| Buyer (Type or Print Name) | Date |
| Offeror | |||
| By | |||
| Title | |||
| Date |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp | ||
| (iii) Total number of customers involved in such sales | enspenspenspenspensp |
| (a) Transfer price(s) of such goods | $ enspenspenspenspensp | ||
| (b) Total units of such goods and or | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| Unmodified Items Identified in Part 1 | Modified Items Proposed to PSMEC | Unit Value of Modification | |||||||
| Unmodified Item | Unmodified Price | Modified Item | Modified Price to PSEMC | ||||||
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| To the general public in the time-frame beginning | enspenspenspenspensp | enspenspenspenspensp | and ending | enspenspenspenspensp |
| (a) Sales | |||||
| (b) Leases | |||||
| (c) Licenses | |||||
| (d) Offers to Sell 1 | |||||
| (e) Offers to Lease 2 | |||||
| (f) Offers to License 3 |
| Part Number | |||
| Description | |||
| Offeror |
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Index ExampleProposal No HLQxxxxxDate January xx xxxx ABC Company
Index1 Cover sheet Page xx
2 Business section Page xx
21 Assumptions and Conditions Page xx
3 Pricing Page xx
31 Unit Pricing Page xx
32 Cost Element by Part Number Page xx
33 Cost Element Summary Page xx
4 Material Page xx
41 Bill of Materials by Part Number Page xx
42 Consolidated Bill of Materials Page xx
43 Purchase Orders and Quotes (File PO-QuotesPDF) Page xx
5 Labor Page xx
6 Etc Page xx
10
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Cost Element Breakdown by Line Itembull A cost element breakdown is required for each proposed line item If the
proposal covers multiple price points or multiple years a cost elementbreakdown will be required for each price point for each year
bull For example assume your proposal includes the following three line items
bull You would need to provide separate cost element breakdowns for parts ABCABB and the NRE See the next slide for an example
Slight differences due to rounding
11
Part Number Quantity Unit Price Total PricePart ABC 50 $12500 $625000Part ABB 75 $10300 $772500NRE 1 $145000Total $1542500
FAR 15408 Table 15-2 I D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Cost Element Breakdown by Line Item Example
12FAR 15408 Table 15-2 I D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summary Cost Element Breakdownbull When more than one contract line item (Part Number NRE etc) is
proposed you must provide summary total amounts covering all items foreach element of cost If the proposal covers a high mid and low point thesummary needs to only be for those points not all the differentcombinations that can result from range pricing If the proposal is formultiple years there needs to be a summary for each of the yearsbull For example if your proposal included the following
bull You would need to provide a summary by cost element that includes the totalproposed value of $1542500 See the next slide for an example showing thethree individual cost elements being combined into a summary
Slight differences due to rounding
13
Part Number Quantity Unit Price Total PricePart ABC 50 $12500 $625000Part ABB 75 $10300 $772500NRE 1 $145000Total $1542500
FAR 15408 Table 15-2 I E
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summary Cost Element Breakdown - Example
14FAR 15408 Table 15-2 I E
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summary Cost Element Breakdown - Example
15
bull If the proposal is a base year plus option years there needs to be asummary Cost Element Breakdown for each of the years at the points in theRFP requiring Cost or Pricing data
FAR 15408 Table 15-2 I E
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Include a BOM for each individual part proposed A BOM is a list of the raw
materials subassemblies etc needed to manufacture a product
bull Provide your BOMs in Excel formatbull The consolidated and individual BOMs need to identify the following for each line
itembull Part Number and descriptionbull Supplierbull Quantitybull Unit Price ndash Unit pricing on the BOM should tie to the supportbull Total Pricebull Basis for pricing (vendor quotes purchase orders)
Source of pricing (purchase order quotes etc) must be referenced in the BOM
bull PSEMC will require copies of the support (ie quotes purchase orders) for asample of the items on the BOM during the cost analysis
16FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull If attritionyield or scrap are added to your material you will need to submit
adequate basis of estimates and support as appropriate
bull There are time when your BOM may be impacted by minimum buys or NREthat is passed along from your supplier If this happens make sure this isclearly identified on the BOM and the support quotes or purchase orders
bull In addition to the individual BOMs FAR requires a consolidated BOM inyour proposal A consolidated BOM is a listing of the material needed forthe proposal A consolidated BOM combines all the materials for each ofthe parts being procured as well as assemblies services or materialassociated with NRE
17FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Individual Bills of Material Example
18
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Consolidated Bill of Material Examplebull Below is an example of a consolidated BOM This BOM was developed by
taking the three individual BOMrsquos on the previous page and combining themtogetherbull In a consolidated BOM part numbers and quantities should be combined (or
subtotaled) if they are the same parts For example the BOMs for Part Nos ABCand ABB both require the same Connector and Screw In the consolidated BOMthe requirements have been combined and reflect the total number of Connectorsand Screws that will be needed for this proposal
19
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Consolidated Bill of Materialbull If the proposal is for a base year plus option years there needs to be a
consolidated BOM for each of the years at each of the points in the RFPrequiring cost or pricing
bull To determine if a subtier cost analysis is required you need to add togetherthe anticipated costs for each supplier for all years In the above examplethere are two suppliers that will require cost analysis (Ford and Motion)
20
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Supplier proposals
bull A cost analysis report is required if any of your suppliersrsquo proposals exceedthe Truth in Negotiations Act (TINA) threshold These need to be submittedwith your proposal
bull If the cost analysis for a supplier is not complete at the time of your proposalsubmittal a schedule listing the estimated completion dates for each supplierneeds to be provided in the proposal
bull If an exemption applies that eliminates the need for a cost analysis (commercial orcompetitively priced) documentation needs to be provided to support these claims
21FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull If you claim your supplier was competed and the value is over the TINA
threshold you will need to provide the following
bull Evidence that an RFP or solicitation to bid was sent to two or more supplierscapable of providing the goods or services requested
bull Copies of the quotes received from each of the suppliers who were competedbull Supplierrsquos analysis with basis of rationale for why the winning bid represents the best value
(lowest price technical considerations etc)
bull If you claim your supplierrsquos parts or services are commercial refer to thecommercial section in this document
22FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Refer to the detailed instructions in the RFP when your proposal supports a
base year plus options contract or a long term agreement Guidance shouldbe provided here on the consolidation and subtier requirements If youhave any questions regarding this contact your PSEMC Supply Chainrepresentative
bull Inter-organizational costs
bull Inter-organizational costs are defined as the costs of items transferred betweendivisions within the same company
bull If you have bid any inter-organizational costs in your proposal you will need toprovide a cost element breakdown for each inter-organizational transfer andsupport as appropriate
bull One more thing
bull If you have a supplier with a value in excess of $135 million or is greater than 10percent of your total proposal and exceeds the TINA threshold FAR 15408 Table15-2 requires that we submit the supplierrsquos proposal and cost or pricing data withour own proposal
23FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Provide a time-phased (eg monthly quarterly) breakdown of labor hours ratesand cost by appropriate category and furnish basis for estimates
24FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Proposed labor hours are generally a combination of direct and support laborhours
bull Direct Labor Hours ndash Hours that can be identified specifically to a final end itembull Support Labor Hours ndash Hours that cannot be specifically identified to one end item For
example a production manager may be in charge of overseeing the manufacturing ofmultiple parts
25FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull You need to provide a breakdown of the labor hours by labor category and
function along with a basis of estimate for the proposed labor hours
bull For example if you propose 500 hours for an end item you would need to providea breakdown by categoryfunction (assembly inspection supervisor engineeretc) You also will need to provide a detailed basis of estimate for eachcategoryfunction showing how your arrived at the hours for the proposed laborcategory
bull Generally the basis should be actual production history An alternative approach isthe use of engineering estimates if the item has not been manufactured before
bull Cost Accounting Standards (CAS) 401 requires that a company isconsistent between proposals and accounting practices The way acompany estimates its labor hours needs to also be the way it accumulatesits production history
26FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours ExampleProposal No HLQxxxxxDate January 1 20xx ABC Corporation
Labor HoursProposed Labor Hours ndash 8279 hrsunit for Part ABC
27
Direct Labor HrsUnitAssembly 3800 Machinist 350 QA 762 Engineer 1 238
Subtotal 5151
Production Support HrsUnitMfg Supervisor 920Eng Supervisor 368QA supervisor 920Production Mgr 920
Subtotal 3128
Total Hrs 8279
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Example ndash Actual Production History
28
ProposedDuration - Months 7 9 24 12 Qty 30 39 110 50 End Date 11152006 982007 912009
Direct Labor Total Hrs HrsUnit Total Hours HrsUnit Total Hrs HrsUnit Total Hrs HrsUnitAssembly 1836 6120 1675 4295 4338 3944 1900 3800 Machinist 169 564 154 396 400 363 175 350 QA 368 1238 336 862 870 791 381 762 Engineer 1 115 383 105 269 272 247 119 238
Production Support Total Hrs Total Hrs Total Hrs Total Hrs HrsUnitMFG Supervisor 268 345 920 460 920 Eng Supervisor 107 138 184 184 368 QA Supervisor 268 345 920 460 920 Production Mgr 268 345 920 460 920
HrsUnit 8279
Acutal Production History - Part ABC
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Examples ndash Basis of Estimatebull Basis of estimate for direct labor
bull Proposed direct labor hours were developed by apply a 90 percent learningcurve to the production labor history for part BBC You need to provide abasis for the 90 percent curve
bull Basis of estimate for the manufacturing supervisorbull The manufacturing supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 920 hours were used over a 24-month periodSince the current proposal has been estimated to cover 12 months 460hours were applied to the manufacturing supervisor (920 divided by 2)
bull Basis of estimate for engineering supervisorbull The engineering supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 184 hours were necessary to complete the taskThis task is similar and so we estimate 184 hours
29
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Direct Costs (ODC)bull List other expenses not otherwise included under material and labor (eg
travel freight) and provide basis for pricing
bull For example the basis for travel would include the location number of tripsnumber of people attending and the estimated expenses for the travel
30FAR 15408 Table 15-2 II D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Nonrecurring Expenses (NRE)bull NRE refers to one-time costs that you would not normally see from proposal
to proposal
bull Examples of NRE are as follows
bull Special Toolingbull New Equipmentbull Equipment Refurbishmentbull Hours and materials associated with increase throughput capacitybull Hours and materials to research develop design and test new processesbull One-Time review events
31FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
NREbull As mentioned earlier NRE charges must be broken out by cost element
This means the material and labor components associated with the NREare clearly broken out
bull Material ndash any material associated with NRE should be supported by supplierquotes or purchase orders
bull Labor ndash labor hours associated with NRE should have basis of estimates(BOE) that are broken down by labor category and include detaileddescriptions of the tasks that will be performed
32FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Rates include direct labor overhead general and administrative expenses
(GampA) and cost of money (COM)
bull PSEMC has the capability to perform rate audits on suppliers in lieu ofhaving the DCAA do this
bull If you allow PSEMC to perform this rate audit you need to provide thefollowing information
bull Explanation as to how the rates were calculatedbull Detailed documentation (financial statements labor pools listing of unallowable
expenses etc) that support the rate calculationsbull If the detailed documentation is based on budgetary numbers you will also need
to provide three years of your most current actuals to support you budgetarynumbers
bull If budgetary numbers differ significantly from the most recent actuals providedetailed explanations for these differences
33FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Facilities Capital COM
bull When you elect to claim COM submit a completed form CASB-CFM (FacilitiesCapital Cost of Money Factors Computation) in accordance with FAR 31205-10Also complete DD Form 1861 and include a copy in your proposal submissionBoth forms can be found on-line at various locations
34FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull In summary all noncompetitive noncommercial proposals valued at more
than the cost and pricing threshold (TINA) are required to include thefollowing information
35
Required Items Page FAR Reference
Supplier Proposal Adequacy Checklist Pg 5-6 PSEMC Policy
Cover Sheet - SF1411 or equivalent Pg 7-8 FAR 15408 Table 15-2 I A
Index Pg 9-10 FAR 15408 Table 15-2 I B
Cost Element Breakdown Pg 11-12 FAR 15408 Table 15-2 I D
Summary Cost Element Breakdown Pg 13-15 FAR 15408 Table 15-2 I E
Material (Including Consolidated BOM) Pg 16-23 FAR 15408 Table 15-2 II A
Labor Pg 24-29 FAR 15408 Table 15-2 II B
ODC Pg 30 FAR 15408 Table 15-2 II D
NRE Pg 31-32 FAR 15408 Table 15-2 II
Rates Pg 33-34 FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull Sufficient rationale and supporting documentation to support each of the
proposed cost elements is also required
bull Obtaining adequate supplier proposals is always on the critical path sincePSEMC cannot submit its proposal to the government until it has receivedadequate proposals from its subcontractors Therefore it is critical thatadequate supplier proposals are obtained as quickly as possible
36
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Types of Proposalsbull Commercial item proposals
bull Change proposals
bull The following slides are only applicable in certain situations
37
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you or one of your suppliers is providing a commercial part cost or pricing
data and a cost analysis is not required However you must demonstrate that the part is commercial and that the price is reasonable
bull A commercial item is any item other than real property that is a type customarily used by the general public or by a nongovernment entity
bull Has also been sold leased or licensed to the general public or has been offered for sale lease or license to the general public
bull A final commercial determination is made by the government contracting officer If the items is deemed to not be commercial the supplier is required to submit a complete proposal that includes cost and pricing data
38FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you claim one or more of your parts are commercial you need to support
your position by providing the following information
bull Copies of applicable portions of a company catalogue or website address that shows the item with a description and unit price
bull Show that these items can be purchased by the general public or nongovernmentalagency
bull If a website or catalogue is not available copies of invoices showing the sale of these items to nongovernment entities is sufficient
39FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull PSEMC policy requires suppliers to complete a PSEMC Supplier Proposal
Adequacy Checklist (sent with the RFP) for all proposals where the supplierclaims its parts are commercial
bull An example of the Supplier Proposal Adequacy Checklist for commercialitems is attached reference form DI-SUP-310F01
40PSEMC Policy
Pacific Scientific EMC ndash Commercial Item Status
If claiming an exemption offeror must provide the appropriate information to determine commerciality Refusal to provide the required information can result in an assist audit being requested from the Defense Contract Audit Agency or other cognizant Government Audit Agencies and or a determination that goods andor services offered do not constitute a ldquocommercial itemrdquo
Offeror hereby represents that to the best of its knowledge information and belief goods andor services offered constitute a ldquocommercial itemrdquo as defined by FAR 2101 because it constitutes
A Commercial Item or Component Justification (required for any claim)
Key Inquiries and Summary of your Supporting Information
What is the relevant ldquotyperdquo of item enspenspenspenspensp
What are the types of items uses by the general public or by non-governmental entities for other than governmental purposes enspenspenspenspensp
What indicates the type of itemrsquos use described above is customary enspenspenspenspensp
Has the offered item itself (as opposed to the type of item) been sold or offered for sale
|_| Yes|_| NO
Are the offered itemrsquos sales (or offers to sale) to the general public
|_| Yes|_| NO
Please provide data regarding sales leases or licenses of this item and identification of the non-government use entities
ValueNon-Government Use Entities
(date)(date)
In addition as an appendix to this commercial item determination provide supporting documentation in the form of
1that have not materialized into sales
2that have not materialized into leases
3that have not materialized into licenses
1 Verification of sales history to source documents
2 Identification of customarily offered discounts for the item
3 Verification of the item to an existing catalog or price list and
4 Verification of historical data for an item previously not determined commercial that the offeror is now trying to qualify as a commercial item
(check box(es) as appropriate)
|_| I Unmodified Commercial Items or Components (Complete Section A)
Any item other than real property that is a of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes and
(i) Has been sold leased or licensed to the general public or
(ii) Has been offered for sale lease or license to the general public
|_| II Item Evolved from Commercial Items or Components
Any item that evolved from an item described in Part I (which is required if claiming this exemption) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace but will be available in the commercial marketplace in time to satisfy the delivery requirements under a United States Government solicitation
If claiming the item Evolved from Commercial Items or Components exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use Part I)
|_| Yes|_| NO
If yes describe the relationship of the modifications to the Federal Government requirement enspenspenspenspensp
What are the advances in technology or performance between the offered item and the commercial item on which it is based enspenspenspenspensp
What is your support for such advances enspenspenspenspensp
What is your support for availability of the item in time to meet requirements Is the claim availability reasonable enspenspenspenspensp
Please provide data regarding
(a) Currently pending offers including
(b) Planned Offers Including
In all instances scheduled for delivery no later than the delivery requirements under the
(c) Data in the format of Part I for completed sales of the item from which the ldquocommercial itemrdquo evolved
|_| III Modified Commercial Items or Components
Any item that would satisfy a criterion expressed in Part I or II hereof but for -
|_| (i) Modifications of a type customarily available in the commercial marketplace
If claiming Modified Commercial Item or Components that are of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use part I or parts II and II)
|_| Yes|_| NO
What are the modifications that would be made to the commercial item enspenspenspenspensp
Are the modifications of a type customarily available in the commercial marketplace
|_| Yes|_| NO
Summarize your support for customary availability of the modification in the commercial marketplace enspenspenspenspensp
|_| (ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet federal government requirements ldquoMinor modificationsrdquo means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component or change the purpose of a process Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product Dollar values and percentages may be used as guideposts but are not conclusive evidence that a modification is minor
If claiming Modified Commercial Items or Components that are not of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Are the modifications made to satisfy Federal Government requirements
|_| Yes|_| NO
Do the modifications alter the nongovernmental function or essential physical characteristics of the item
|_| Yes|_| NO
If yes what are the alterations enspenspenspenspensp
Does the modified item retain a predominance of nongovernmental functions or physical characteristics
|_| Yes|_| NO
Summarize your support describing the value of the modifications in comparison to the value of the final product enspenspenspenspensp
Summarize your support for the magnitude or size of the modifications in relation to the magnitude or size of the final product enspenspenspenspensp
Are there any other factors which would allow you to conclude that the modifications are minor
|_| Yes|_| NO
If yes what are they enspenspenspenspensp
Based on the above does the modification qualify as a minor modification
|_| Yes|_| NO
Please provide data regarding the minor modification and the total price to PSEMC of Minor Modifications
Price to PSEMC of all Minor Modifications at quantities proposed in this pricing action enspenspenspenspensp
Minor modifications that exceed the thresholds in FAR 15403-1(c)(3)(iii)(B) are subject to the Certified Cost or Pricing Data requirements and must be proposed as described by FAR 15408 Table 152
|_| IV Commercial Items Support Services
Installation services maintenance services repair services training services and other services if -
(i) Such services are procured for support of an item referred to in Parts I II III or IV hereof regardless of whether such services are provided by the same source or at the same time as the item and
(ii) The source of such services provided similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government
If claiming Commercial Item Support Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services procured for the support of a commercial item which qualifies under a preceding part
|_| Yes|_| NO
Describe the nature of the services and how they support the commercial item enspenspenspenspensp
Are the services provided at the same time to the general public and the Federal Government
|_| Yes|_| NO
Are the terms and conditions for the services similar to those offered to the general public
|_| Yes|_| NO
Describe differences enspenspenspenspensp
Please provide data regarding
a Open and completed contracts including
b Pending offers including
|_| V Any Combination of Items
Meeting the requirements of Parts I II III or IV hereof that are of a type customarily combined and sold in combination to the general public
If you have checked the above box and are claiming the Any Combination of Items exemption please attach hereto information as requ3sted for Parts I II III and IV
|_| VI Other Commercial Services
Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions For purposes of these services -
(i) Catalog price means a price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor is either published or otherwise available for inspection by customers and states prices at which sales are currently or were last made to a significant number of buyers constituting the general public and
(ii) Market prices means current prices that are established in the course of ordinary trade between buyers and sellers free to bargain and that can be substantiated through competition or from source independent of the offerors
If claiming the Other Commercial Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services sold competitively in substantial quantities in the commercial marketplace
|_| Yes|_| NO
If no are the services of a type sold in substantial quantities in the commercial marketplace
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If yes what is the ldquotyperdquo of service enspenspenspenspensp
Summarize your support for same enspenspenspenspensp
Are the prices quoted for specific tasks performed or specific outcomes to be achieved
|_| Yes|_| NO
Are the services offered consistent with your standard terms and conditions
|_| Yes|_| NO
Are the services of a type sold at catalog or market prices
|_| Yes|_| NO
If sold at catalog price is the price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor
|_| Yes|_| NO
If sold at catalog price is the catalog or its equivalent either published or otherwise available for inspection by customers
|_| Yes|_| NO
Summarize your support for same (include a copy of the catalog or provide location) enspenspenspenspensp
If sold at a catalog price are the listed prices those at which sales are currently or were last made to a significant number of buyers in the general public
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If sold at a market price are the prices established in the course of ordinary trade between buyers and sellers free to bargain
|_| Yes|_| NO
Summarize you support for same enspenspenspenspensp
If sold at market price can the price be substantiated through competition or from sources independent of the offeror
|_| Yes|_| NO
Summarize your support for same
Please provide data regarding
(a) Open and completed contracts including
(b) Pending Offers including
|_| VII Any Item Combination of Items or Service
Referred to in Parts I through VI hereof notwithstanding the fact that the item combination of items or service is transferred between or among separate divisions subsidiaries or affiliates of the Offeror
If you have checked the above box and are claiming the ldquoAny item combination of items or Servicerdquo exemption please provide data regarding
|_| VIII Non-developmental Items
A non-developmental item as defined in FAR 2101 which has been developed exclusively at private expense and sold in substantial quantities on a competitive basis to multiple State and local governments
If claiming the Non-developmental Items exemption then the following must be provided
Key Inquiries and Summary of Supplierrsquos Supporting Information
Was the item previously developed
|_| Yes|_| NO
Was the item used exclusively for governmental purposes by a Federal agency a State or local government or a foreign government with which the United States has mutual defense cooperation agreement
|_| Yes|_| NO
If the item is to be modified do the modifications comply with Part III guidance on modifications
|_| Yes|_| NO
If the item is not yet in use does it otherwise qualify as a non-developmental item
|_| Yes|_| NO
Was the item developed exclusively at private expense
|_| Yes|_| NO
Is the item sold in substantial quantities on a competitive basis to multiple State and local governments
|_| Yes|_| NO
Please provide data regarding
|_| IX General Inquiries
Does the item qualify as a combination of items under Parts I II III and IV above
|_| Yes|_| NO
Has the item or services previously been determined to be commercial
|_| Yes|_| NO
If so by whom enspenspenspenspensp
|_| X Other Information
Is there other information of which you are aware that would supplement the information provided and would help substantiate whether the item or service is commercial
|_| Yes|_| NO
Have you provided such information
|_| Yes|_| NO
List such information enspenspenspenspensp
|_| XI Supplier Determination
Offeror hereby represents that the foregoing information is accurate and complete and that to the best of its knowledge information and belief goods and or services offered currently constitute ldquoa commercial itemrdquo as defined by FAR 2101
For PSEMC Internal Use Only
XII Supplier Determination
Supplier has claimed that the item component or service identified above is a commercial item under the definition at FAR 2101 I have reviewed and summarized the supplierrsquos support for that claim in the appropriate sections above Based on such review of such support information and any other information identified elsewhere herein I conclude that the supplier
|_| HAS |_| HAS NOT Supported its claim of commercial item status under the definition at FAR 2101
If the supplier HAS NOT supported its claim list reasons enspenspenspenspensp
Describe action plat to resolve enspenspenspenspensp
Comments enspenspenspenspensp
image1jpeg
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull This section of Table 15-2 describes the format an estimating approach we
are required to use when developing a proposal to modify an existingcontract In addition to the cost element breakdowns required as describedin the previous slides when there is a modification or change proposal FARalso requires the following table to be inserted into your proposal
41
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals
42FAR 15408 Table 15-2 III B
B Change Orders modifications and claims
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
Column 2 includes the cost of all work deleted This
includes cost of work deleted already performed (amount in Column 3) and
cost of work deleted not yet performed (Column 4)
Column 3 includes the cost of deleted work already
performed This amount will not be included in the credit (delete) adjustment amount (eg we will not give back costs already
incurred)
Column 4 includes cost for deleted work not yet performed ndash must be priced using current
estimates (but the current estimate may be the same as
the original estimate) ndash it is develed similar to a normal ldquoaddrdquo proposal with a few
exceptions
Column 5 includes the cost of the
new work and is developed as we do any
other proposal
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull Detail for columns listed on previous page
1 Enter appropriate cost element2 Enter current estimates of what it would take to complete the deleted work that
has not yet been performed3 Enter current cost of deleted work already performed This should be based on
actuals and copies to support these actuals should be included in the proposal4 Enter the net cost to be deleted (Column 2 minus Column 3)5 Enter your estimate for cost of work added by the change6 Enter the net cost of change (Column 5 minus Column 4)7 Identify where in your proposal the supporting documentation and basis of
estimate can be found for each of these sections
43FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull For purposes of determining if a proposal an cost or pricing data are
required from individual suppliers on a change proposal the absolute valueof the ldquodeleterdquo amount plus the ldquoaddrdquo amount is computed for each supplierthat exceeds the cost and pricing threshold (TINA)
bull Remember from FAR 15403-4(b) ndash if the absolute value for an individualsupplier exceeds the cost and pricing threshold (TINA) and the supplier iseither an actual supplier (will continue to provide partsservices on thiscontract) the supplier is required to provide a proposal and cost or pricingdata in support of the change proposal
bull Deleted amount is our current estimate (generally no the original contractvalue unless it is our current estimate)
44FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull If a supplierrsquos quantities are changing due to a modification the net delete
or add amount is used to determine if the supplier exceeds the cost andpricing threshold (TINA)
bull The estimator should not consider the old quantity as the delete and thenew quantity as the add (eg in computing absolute value) whendetermining if the supplier exceeds the threshold in cases where quantitiesare changing
bull The development of the appropriate deletion is not simply the estimatedcost of the deleted quantity ndash this will overstate the credit
45FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals Cost of WorkDeleted for a Partial Deleted Quantitybull In cases where part of a material quantity is being deleted (eg original
contract requires 100 widgets and the contract is modified to delete 30 ofthem) one method of estimating the amount of the delete is
1 Develop a current estimate of the extended cost for the item(s) given the originalquantity
2 Develop a current estimate of the extended cost for the items at the lower(remaining) quantity
3 The delta between these two values represents the amount of the delete
bull The same method can be used if the contract is modified to increase aquantity for a part
46FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklist
47
bull The Supplier Proposal Adequacy Checklist is accessed from the externalPSEMC supplier website
bull Additional supplier proposal guidance and resources are available(information templates and tools to assist in building a FAR compliantproposal
bull Supplier proposal guidance
bull Supplier Proposal Adequacy Guidelines
bull PSEMC document templates
bull Supplier proposal adequacy checklistbull Contract pricing proposal cover sheet
httpspsemccomsuppliers
- Strategic Affordability Analysis
- Purpose of this Guideline
- Table of Contents
- Table of Contents
- Supplier Proposal Adequacy Checklist
- Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
- Cover Sheet
- Cover Sheet Example ndash Reference Form DI-SUP-105F02
- Index
- Index Example
- Cost Element Breakdown by Line Item
- Cost Element Breakdown by Line Item Example
- Summary Cost Element Breakdown
- Summary Cost Element Breakdown - Example
- Summary Cost Element Breakdown - Example
- Material
- Material
- Individual Bills of Material Example
- Consolidated Bill of Material Example
- Consolidated Bill of Material
- Material
- Material
- Material
- Labor
- Labor
- Labor
- Labor Hours Example
- Labor Hours Example ndash Actual Production History
- Labor Hours Examples ndash Basis of Estimate
- Other Direct Costs (ODC)
- Nonrecurring Expenses (NRE)
- NRE
- Rates
- Rates
- Summary
- Summary
- Other Types of Proposals
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals Cost of WorkDeleted for a Partial Deleted Quantity
- Supplier Proposal Adequacy Checklist
-
| Buyer (Type or Print Name) | Date |
| Offeror | |||
| By | |||
| Title | |||
| Date |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp | ||
| (iii) Total number of customers involved in such sales | enspenspenspenspensp |
| (a) Transfer price(s) of such goods | $ enspenspenspenspensp | ||
| (b) Total units of such goods and or | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| Unmodified Items Identified in Part 1 | Modified Items Proposed to PSMEC | Unit Value of Modification | |||||||
| Unmodified Item | Unmodified Price | Modified Item | Modified Price to PSEMC | ||||||
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| To the general public in the time-frame beginning | enspenspenspenspensp | enspenspenspenspensp | and ending | enspenspenspenspensp |
| (a) Sales | |||||
| (b) Leases | |||||
| (c) Licenses | |||||
| (d) Offers to Sell 1 | |||||
| (e) Offers to Lease 2 | |||||
| (f) Offers to License 3 |
| Part Number | |||
| Description | |||
| Offeror |
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Cost Element Breakdown by Line Itembull A cost element breakdown is required for each proposed line item If the
proposal covers multiple price points or multiple years a cost elementbreakdown will be required for each price point for each year
bull For example assume your proposal includes the following three line items
bull You would need to provide separate cost element breakdowns for parts ABCABB and the NRE See the next slide for an example
Slight differences due to rounding
11
Part Number Quantity Unit Price Total PricePart ABC 50 $12500 $625000Part ABB 75 $10300 $772500NRE 1 $145000Total $1542500
FAR 15408 Table 15-2 I D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Cost Element Breakdown by Line Item Example
12FAR 15408 Table 15-2 I D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summary Cost Element Breakdownbull When more than one contract line item (Part Number NRE etc) is
proposed you must provide summary total amounts covering all items foreach element of cost If the proposal covers a high mid and low point thesummary needs to only be for those points not all the differentcombinations that can result from range pricing If the proposal is formultiple years there needs to be a summary for each of the yearsbull For example if your proposal included the following
bull You would need to provide a summary by cost element that includes the totalproposed value of $1542500 See the next slide for an example showing thethree individual cost elements being combined into a summary
Slight differences due to rounding
13
Part Number Quantity Unit Price Total PricePart ABC 50 $12500 $625000Part ABB 75 $10300 $772500NRE 1 $145000Total $1542500
FAR 15408 Table 15-2 I E
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summary Cost Element Breakdown - Example
14FAR 15408 Table 15-2 I E
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summary Cost Element Breakdown - Example
15
bull If the proposal is a base year plus option years there needs to be asummary Cost Element Breakdown for each of the years at the points in theRFP requiring Cost or Pricing data
FAR 15408 Table 15-2 I E
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Include a BOM for each individual part proposed A BOM is a list of the raw
materials subassemblies etc needed to manufacture a product
bull Provide your BOMs in Excel formatbull The consolidated and individual BOMs need to identify the following for each line
itembull Part Number and descriptionbull Supplierbull Quantitybull Unit Price ndash Unit pricing on the BOM should tie to the supportbull Total Pricebull Basis for pricing (vendor quotes purchase orders)
Source of pricing (purchase order quotes etc) must be referenced in the BOM
bull PSEMC will require copies of the support (ie quotes purchase orders) for asample of the items on the BOM during the cost analysis
16FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull If attritionyield or scrap are added to your material you will need to submit
adequate basis of estimates and support as appropriate
bull There are time when your BOM may be impacted by minimum buys or NREthat is passed along from your supplier If this happens make sure this isclearly identified on the BOM and the support quotes or purchase orders
bull In addition to the individual BOMs FAR requires a consolidated BOM inyour proposal A consolidated BOM is a listing of the material needed forthe proposal A consolidated BOM combines all the materials for each ofthe parts being procured as well as assemblies services or materialassociated with NRE
17FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Individual Bills of Material Example
18
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Consolidated Bill of Material Examplebull Below is an example of a consolidated BOM This BOM was developed by
taking the three individual BOMrsquos on the previous page and combining themtogetherbull In a consolidated BOM part numbers and quantities should be combined (or
subtotaled) if they are the same parts For example the BOMs for Part Nos ABCand ABB both require the same Connector and Screw In the consolidated BOMthe requirements have been combined and reflect the total number of Connectorsand Screws that will be needed for this proposal
19
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Consolidated Bill of Materialbull If the proposal is for a base year plus option years there needs to be a
consolidated BOM for each of the years at each of the points in the RFPrequiring cost or pricing
bull To determine if a subtier cost analysis is required you need to add togetherthe anticipated costs for each supplier for all years In the above examplethere are two suppliers that will require cost analysis (Ford and Motion)
20
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Supplier proposals
bull A cost analysis report is required if any of your suppliersrsquo proposals exceedthe Truth in Negotiations Act (TINA) threshold These need to be submittedwith your proposal
bull If the cost analysis for a supplier is not complete at the time of your proposalsubmittal a schedule listing the estimated completion dates for each supplierneeds to be provided in the proposal
bull If an exemption applies that eliminates the need for a cost analysis (commercial orcompetitively priced) documentation needs to be provided to support these claims
21FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull If you claim your supplier was competed and the value is over the TINA
threshold you will need to provide the following
bull Evidence that an RFP or solicitation to bid was sent to two or more supplierscapable of providing the goods or services requested
bull Copies of the quotes received from each of the suppliers who were competedbull Supplierrsquos analysis with basis of rationale for why the winning bid represents the best value
(lowest price technical considerations etc)
bull If you claim your supplierrsquos parts or services are commercial refer to thecommercial section in this document
22FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Refer to the detailed instructions in the RFP when your proposal supports a
base year plus options contract or a long term agreement Guidance shouldbe provided here on the consolidation and subtier requirements If youhave any questions regarding this contact your PSEMC Supply Chainrepresentative
bull Inter-organizational costs
bull Inter-organizational costs are defined as the costs of items transferred betweendivisions within the same company
bull If you have bid any inter-organizational costs in your proposal you will need toprovide a cost element breakdown for each inter-organizational transfer andsupport as appropriate
bull One more thing
bull If you have a supplier with a value in excess of $135 million or is greater than 10percent of your total proposal and exceeds the TINA threshold FAR 15408 Table15-2 requires that we submit the supplierrsquos proposal and cost or pricing data withour own proposal
23FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Provide a time-phased (eg monthly quarterly) breakdown of labor hours ratesand cost by appropriate category and furnish basis for estimates
24FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Proposed labor hours are generally a combination of direct and support laborhours
bull Direct Labor Hours ndash Hours that can be identified specifically to a final end itembull Support Labor Hours ndash Hours that cannot be specifically identified to one end item For
example a production manager may be in charge of overseeing the manufacturing ofmultiple parts
25FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull You need to provide a breakdown of the labor hours by labor category and
function along with a basis of estimate for the proposed labor hours
bull For example if you propose 500 hours for an end item you would need to providea breakdown by categoryfunction (assembly inspection supervisor engineeretc) You also will need to provide a detailed basis of estimate for eachcategoryfunction showing how your arrived at the hours for the proposed laborcategory
bull Generally the basis should be actual production history An alternative approach isthe use of engineering estimates if the item has not been manufactured before
bull Cost Accounting Standards (CAS) 401 requires that a company isconsistent between proposals and accounting practices The way acompany estimates its labor hours needs to also be the way it accumulatesits production history
26FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours ExampleProposal No HLQxxxxxDate January 1 20xx ABC Corporation
Labor HoursProposed Labor Hours ndash 8279 hrsunit for Part ABC
27
Direct Labor HrsUnitAssembly 3800 Machinist 350 QA 762 Engineer 1 238
Subtotal 5151
Production Support HrsUnitMfg Supervisor 920Eng Supervisor 368QA supervisor 920Production Mgr 920
Subtotal 3128
Total Hrs 8279
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Example ndash Actual Production History
28
ProposedDuration - Months 7 9 24 12 Qty 30 39 110 50 End Date 11152006 982007 912009
Direct Labor Total Hrs HrsUnit Total Hours HrsUnit Total Hrs HrsUnit Total Hrs HrsUnitAssembly 1836 6120 1675 4295 4338 3944 1900 3800 Machinist 169 564 154 396 400 363 175 350 QA 368 1238 336 862 870 791 381 762 Engineer 1 115 383 105 269 272 247 119 238
Production Support Total Hrs Total Hrs Total Hrs Total Hrs HrsUnitMFG Supervisor 268 345 920 460 920 Eng Supervisor 107 138 184 184 368 QA Supervisor 268 345 920 460 920 Production Mgr 268 345 920 460 920
HrsUnit 8279
Acutal Production History - Part ABC
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Examples ndash Basis of Estimatebull Basis of estimate for direct labor
bull Proposed direct labor hours were developed by apply a 90 percent learningcurve to the production labor history for part BBC You need to provide abasis for the 90 percent curve
bull Basis of estimate for the manufacturing supervisorbull The manufacturing supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 920 hours were used over a 24-month periodSince the current proposal has been estimated to cover 12 months 460hours were applied to the manufacturing supervisor (920 divided by 2)
bull Basis of estimate for engineering supervisorbull The engineering supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 184 hours were necessary to complete the taskThis task is similar and so we estimate 184 hours
29
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Direct Costs (ODC)bull List other expenses not otherwise included under material and labor (eg
travel freight) and provide basis for pricing
bull For example the basis for travel would include the location number of tripsnumber of people attending and the estimated expenses for the travel
30FAR 15408 Table 15-2 II D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Nonrecurring Expenses (NRE)bull NRE refers to one-time costs that you would not normally see from proposal
to proposal
bull Examples of NRE are as follows
bull Special Toolingbull New Equipmentbull Equipment Refurbishmentbull Hours and materials associated with increase throughput capacitybull Hours and materials to research develop design and test new processesbull One-Time review events
31FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
NREbull As mentioned earlier NRE charges must be broken out by cost element
This means the material and labor components associated with the NREare clearly broken out
bull Material ndash any material associated with NRE should be supported by supplierquotes or purchase orders
bull Labor ndash labor hours associated with NRE should have basis of estimates(BOE) that are broken down by labor category and include detaileddescriptions of the tasks that will be performed
32FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Rates include direct labor overhead general and administrative expenses
(GampA) and cost of money (COM)
bull PSEMC has the capability to perform rate audits on suppliers in lieu ofhaving the DCAA do this
bull If you allow PSEMC to perform this rate audit you need to provide thefollowing information
bull Explanation as to how the rates were calculatedbull Detailed documentation (financial statements labor pools listing of unallowable
expenses etc) that support the rate calculationsbull If the detailed documentation is based on budgetary numbers you will also need
to provide three years of your most current actuals to support you budgetarynumbers
bull If budgetary numbers differ significantly from the most recent actuals providedetailed explanations for these differences
33FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Facilities Capital COM
bull When you elect to claim COM submit a completed form CASB-CFM (FacilitiesCapital Cost of Money Factors Computation) in accordance with FAR 31205-10Also complete DD Form 1861 and include a copy in your proposal submissionBoth forms can be found on-line at various locations
34FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull In summary all noncompetitive noncommercial proposals valued at more
than the cost and pricing threshold (TINA) are required to include thefollowing information
35
Required Items Page FAR Reference
Supplier Proposal Adequacy Checklist Pg 5-6 PSEMC Policy
Cover Sheet - SF1411 or equivalent Pg 7-8 FAR 15408 Table 15-2 I A
Index Pg 9-10 FAR 15408 Table 15-2 I B
Cost Element Breakdown Pg 11-12 FAR 15408 Table 15-2 I D
Summary Cost Element Breakdown Pg 13-15 FAR 15408 Table 15-2 I E
Material (Including Consolidated BOM) Pg 16-23 FAR 15408 Table 15-2 II A
Labor Pg 24-29 FAR 15408 Table 15-2 II B
ODC Pg 30 FAR 15408 Table 15-2 II D
NRE Pg 31-32 FAR 15408 Table 15-2 II
Rates Pg 33-34 FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull Sufficient rationale and supporting documentation to support each of the
proposed cost elements is also required
bull Obtaining adequate supplier proposals is always on the critical path sincePSEMC cannot submit its proposal to the government until it has receivedadequate proposals from its subcontractors Therefore it is critical thatadequate supplier proposals are obtained as quickly as possible
36
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Types of Proposalsbull Commercial item proposals
bull Change proposals
bull The following slides are only applicable in certain situations
37
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you or one of your suppliers is providing a commercial part cost or pricing
data and a cost analysis is not required However you must demonstrate that the part is commercial and that the price is reasonable
bull A commercial item is any item other than real property that is a type customarily used by the general public or by a nongovernment entity
bull Has also been sold leased or licensed to the general public or has been offered for sale lease or license to the general public
bull A final commercial determination is made by the government contracting officer If the items is deemed to not be commercial the supplier is required to submit a complete proposal that includes cost and pricing data
38FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you claim one or more of your parts are commercial you need to support
your position by providing the following information
bull Copies of applicable portions of a company catalogue or website address that shows the item with a description and unit price
bull Show that these items can be purchased by the general public or nongovernmentalagency
bull If a website or catalogue is not available copies of invoices showing the sale of these items to nongovernment entities is sufficient
39FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull PSEMC policy requires suppliers to complete a PSEMC Supplier Proposal
Adequacy Checklist (sent with the RFP) for all proposals where the supplierclaims its parts are commercial
bull An example of the Supplier Proposal Adequacy Checklist for commercialitems is attached reference form DI-SUP-310F01
40PSEMC Policy
Pacific Scientific EMC ndash Commercial Item Status
If claiming an exemption offeror must provide the appropriate information to determine commerciality Refusal to provide the required information can result in an assist audit being requested from the Defense Contract Audit Agency or other cognizant Government Audit Agencies and or a determination that goods andor services offered do not constitute a ldquocommercial itemrdquo
Offeror hereby represents that to the best of its knowledge information and belief goods andor services offered constitute a ldquocommercial itemrdquo as defined by FAR 2101 because it constitutes
A Commercial Item or Component Justification (required for any claim)
Key Inquiries and Summary of your Supporting Information
What is the relevant ldquotyperdquo of item enspenspenspenspensp
What are the types of items uses by the general public or by non-governmental entities for other than governmental purposes enspenspenspenspensp
What indicates the type of itemrsquos use described above is customary enspenspenspenspensp
Has the offered item itself (as opposed to the type of item) been sold or offered for sale
|_| Yes|_| NO
Are the offered itemrsquos sales (or offers to sale) to the general public
|_| Yes|_| NO
Please provide data regarding sales leases or licenses of this item and identification of the non-government use entities
ValueNon-Government Use Entities
(date)(date)
In addition as an appendix to this commercial item determination provide supporting documentation in the form of
1that have not materialized into sales
2that have not materialized into leases
3that have not materialized into licenses
1 Verification of sales history to source documents
2 Identification of customarily offered discounts for the item
3 Verification of the item to an existing catalog or price list and
4 Verification of historical data for an item previously not determined commercial that the offeror is now trying to qualify as a commercial item
(check box(es) as appropriate)
|_| I Unmodified Commercial Items or Components (Complete Section A)
Any item other than real property that is a of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes and
(i) Has been sold leased or licensed to the general public or
(ii) Has been offered for sale lease or license to the general public
|_| II Item Evolved from Commercial Items or Components
Any item that evolved from an item described in Part I (which is required if claiming this exemption) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace but will be available in the commercial marketplace in time to satisfy the delivery requirements under a United States Government solicitation
If claiming the item Evolved from Commercial Items or Components exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use Part I)
|_| Yes|_| NO
If yes describe the relationship of the modifications to the Federal Government requirement enspenspenspenspensp
What are the advances in technology or performance between the offered item and the commercial item on which it is based enspenspenspenspensp
What is your support for such advances enspenspenspenspensp
What is your support for availability of the item in time to meet requirements Is the claim availability reasonable enspenspenspenspensp
Please provide data regarding
(a) Currently pending offers including
(b) Planned Offers Including
In all instances scheduled for delivery no later than the delivery requirements under the
(c) Data in the format of Part I for completed sales of the item from which the ldquocommercial itemrdquo evolved
|_| III Modified Commercial Items or Components
Any item that would satisfy a criterion expressed in Part I or II hereof but for -
|_| (i) Modifications of a type customarily available in the commercial marketplace
If claiming Modified Commercial Item or Components that are of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use part I or parts II and II)
|_| Yes|_| NO
What are the modifications that would be made to the commercial item enspenspenspenspensp
Are the modifications of a type customarily available in the commercial marketplace
|_| Yes|_| NO
Summarize your support for customary availability of the modification in the commercial marketplace enspenspenspenspensp
|_| (ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet federal government requirements ldquoMinor modificationsrdquo means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component or change the purpose of a process Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product Dollar values and percentages may be used as guideposts but are not conclusive evidence that a modification is minor
If claiming Modified Commercial Items or Components that are not of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Are the modifications made to satisfy Federal Government requirements
|_| Yes|_| NO
Do the modifications alter the nongovernmental function or essential physical characteristics of the item
|_| Yes|_| NO
If yes what are the alterations enspenspenspenspensp
Does the modified item retain a predominance of nongovernmental functions or physical characteristics
|_| Yes|_| NO
Summarize your support describing the value of the modifications in comparison to the value of the final product enspenspenspenspensp
Summarize your support for the magnitude or size of the modifications in relation to the magnitude or size of the final product enspenspenspenspensp
Are there any other factors which would allow you to conclude that the modifications are minor
|_| Yes|_| NO
If yes what are they enspenspenspenspensp
Based on the above does the modification qualify as a minor modification
|_| Yes|_| NO
Please provide data regarding the minor modification and the total price to PSEMC of Minor Modifications
Price to PSEMC of all Minor Modifications at quantities proposed in this pricing action enspenspenspenspensp
Minor modifications that exceed the thresholds in FAR 15403-1(c)(3)(iii)(B) are subject to the Certified Cost or Pricing Data requirements and must be proposed as described by FAR 15408 Table 152
|_| IV Commercial Items Support Services
Installation services maintenance services repair services training services and other services if -
(i) Such services are procured for support of an item referred to in Parts I II III or IV hereof regardless of whether such services are provided by the same source or at the same time as the item and
(ii) The source of such services provided similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government
If claiming Commercial Item Support Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services procured for the support of a commercial item which qualifies under a preceding part
|_| Yes|_| NO
Describe the nature of the services and how they support the commercial item enspenspenspenspensp
Are the services provided at the same time to the general public and the Federal Government
|_| Yes|_| NO
Are the terms and conditions for the services similar to those offered to the general public
|_| Yes|_| NO
Describe differences enspenspenspenspensp
Please provide data regarding
a Open and completed contracts including
b Pending offers including
|_| V Any Combination of Items
Meeting the requirements of Parts I II III or IV hereof that are of a type customarily combined and sold in combination to the general public
If you have checked the above box and are claiming the Any Combination of Items exemption please attach hereto information as requ3sted for Parts I II III and IV
|_| VI Other Commercial Services
Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions For purposes of these services -
(i) Catalog price means a price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor is either published or otherwise available for inspection by customers and states prices at which sales are currently or were last made to a significant number of buyers constituting the general public and
(ii) Market prices means current prices that are established in the course of ordinary trade between buyers and sellers free to bargain and that can be substantiated through competition or from source independent of the offerors
If claiming the Other Commercial Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services sold competitively in substantial quantities in the commercial marketplace
|_| Yes|_| NO
If no are the services of a type sold in substantial quantities in the commercial marketplace
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If yes what is the ldquotyperdquo of service enspenspenspenspensp
Summarize your support for same enspenspenspenspensp
Are the prices quoted for specific tasks performed or specific outcomes to be achieved
|_| Yes|_| NO
Are the services offered consistent with your standard terms and conditions
|_| Yes|_| NO
Are the services of a type sold at catalog or market prices
|_| Yes|_| NO
If sold at catalog price is the price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor
|_| Yes|_| NO
If sold at catalog price is the catalog or its equivalent either published or otherwise available for inspection by customers
|_| Yes|_| NO
Summarize your support for same (include a copy of the catalog or provide location) enspenspenspenspensp
If sold at a catalog price are the listed prices those at which sales are currently or were last made to a significant number of buyers in the general public
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If sold at a market price are the prices established in the course of ordinary trade between buyers and sellers free to bargain
|_| Yes|_| NO
Summarize you support for same enspenspenspenspensp
If sold at market price can the price be substantiated through competition or from sources independent of the offeror
|_| Yes|_| NO
Summarize your support for same
Please provide data regarding
(a) Open and completed contracts including
(b) Pending Offers including
|_| VII Any Item Combination of Items or Service
Referred to in Parts I through VI hereof notwithstanding the fact that the item combination of items or service is transferred between or among separate divisions subsidiaries or affiliates of the Offeror
If you have checked the above box and are claiming the ldquoAny item combination of items or Servicerdquo exemption please provide data regarding
|_| VIII Non-developmental Items
A non-developmental item as defined in FAR 2101 which has been developed exclusively at private expense and sold in substantial quantities on a competitive basis to multiple State and local governments
If claiming the Non-developmental Items exemption then the following must be provided
Key Inquiries and Summary of Supplierrsquos Supporting Information
Was the item previously developed
|_| Yes|_| NO
Was the item used exclusively for governmental purposes by a Federal agency a State or local government or a foreign government with which the United States has mutual defense cooperation agreement
|_| Yes|_| NO
If the item is to be modified do the modifications comply with Part III guidance on modifications
|_| Yes|_| NO
If the item is not yet in use does it otherwise qualify as a non-developmental item
|_| Yes|_| NO
Was the item developed exclusively at private expense
|_| Yes|_| NO
Is the item sold in substantial quantities on a competitive basis to multiple State and local governments
|_| Yes|_| NO
Please provide data regarding
|_| IX General Inquiries
Does the item qualify as a combination of items under Parts I II III and IV above
|_| Yes|_| NO
Has the item or services previously been determined to be commercial
|_| Yes|_| NO
If so by whom enspenspenspenspensp
|_| X Other Information
Is there other information of which you are aware that would supplement the information provided and would help substantiate whether the item or service is commercial
|_| Yes|_| NO
Have you provided such information
|_| Yes|_| NO
List such information enspenspenspenspensp
|_| XI Supplier Determination
Offeror hereby represents that the foregoing information is accurate and complete and that to the best of its knowledge information and belief goods and or services offered currently constitute ldquoa commercial itemrdquo as defined by FAR 2101
For PSEMC Internal Use Only
XII Supplier Determination
Supplier has claimed that the item component or service identified above is a commercial item under the definition at FAR 2101 I have reviewed and summarized the supplierrsquos support for that claim in the appropriate sections above Based on such review of such support information and any other information identified elsewhere herein I conclude that the supplier
|_| HAS |_| HAS NOT Supported its claim of commercial item status under the definition at FAR 2101
If the supplier HAS NOT supported its claim list reasons enspenspenspenspensp
Describe action plat to resolve enspenspenspenspensp
Comments enspenspenspenspensp
image1jpeg
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull This section of Table 15-2 describes the format an estimating approach we
are required to use when developing a proposal to modify an existingcontract In addition to the cost element breakdowns required as describedin the previous slides when there is a modification or change proposal FARalso requires the following table to be inserted into your proposal
41
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals
42FAR 15408 Table 15-2 III B
B Change Orders modifications and claims
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
Column 2 includes the cost of all work deleted This
includes cost of work deleted already performed (amount in Column 3) and
cost of work deleted not yet performed (Column 4)
Column 3 includes the cost of deleted work already
performed This amount will not be included in the credit (delete) adjustment amount (eg we will not give back costs already
incurred)
Column 4 includes cost for deleted work not yet performed ndash must be priced using current
estimates (but the current estimate may be the same as
the original estimate) ndash it is develed similar to a normal ldquoaddrdquo proposal with a few
exceptions
Column 5 includes the cost of the
new work and is developed as we do any
other proposal
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull Detail for columns listed on previous page
1 Enter appropriate cost element2 Enter current estimates of what it would take to complete the deleted work that
has not yet been performed3 Enter current cost of deleted work already performed This should be based on
actuals and copies to support these actuals should be included in the proposal4 Enter the net cost to be deleted (Column 2 minus Column 3)5 Enter your estimate for cost of work added by the change6 Enter the net cost of change (Column 5 minus Column 4)7 Identify where in your proposal the supporting documentation and basis of
estimate can be found for each of these sections
43FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull For purposes of determining if a proposal an cost or pricing data are
required from individual suppliers on a change proposal the absolute valueof the ldquodeleterdquo amount plus the ldquoaddrdquo amount is computed for each supplierthat exceeds the cost and pricing threshold (TINA)
bull Remember from FAR 15403-4(b) ndash if the absolute value for an individualsupplier exceeds the cost and pricing threshold (TINA) and the supplier iseither an actual supplier (will continue to provide partsservices on thiscontract) the supplier is required to provide a proposal and cost or pricingdata in support of the change proposal
bull Deleted amount is our current estimate (generally no the original contractvalue unless it is our current estimate)
44FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull If a supplierrsquos quantities are changing due to a modification the net delete
or add amount is used to determine if the supplier exceeds the cost andpricing threshold (TINA)
bull The estimator should not consider the old quantity as the delete and thenew quantity as the add (eg in computing absolute value) whendetermining if the supplier exceeds the threshold in cases where quantitiesare changing
bull The development of the appropriate deletion is not simply the estimatedcost of the deleted quantity ndash this will overstate the credit
45FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals Cost of WorkDeleted for a Partial Deleted Quantitybull In cases where part of a material quantity is being deleted (eg original
contract requires 100 widgets and the contract is modified to delete 30 ofthem) one method of estimating the amount of the delete is
1 Develop a current estimate of the extended cost for the item(s) given the originalquantity
2 Develop a current estimate of the extended cost for the items at the lower(remaining) quantity
3 The delta between these two values represents the amount of the delete
bull The same method can be used if the contract is modified to increase aquantity for a part
46FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklist
47
bull The Supplier Proposal Adequacy Checklist is accessed from the externalPSEMC supplier website
bull Additional supplier proposal guidance and resources are available(information templates and tools to assist in building a FAR compliantproposal
bull Supplier proposal guidance
bull Supplier Proposal Adequacy Guidelines
bull PSEMC document templates
bull Supplier proposal adequacy checklistbull Contract pricing proposal cover sheet
httpspsemccomsuppliers
- Strategic Affordability Analysis
- Purpose of this Guideline
- Table of Contents
- Table of Contents
- Supplier Proposal Adequacy Checklist
- Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
- Cover Sheet
- Cover Sheet Example ndash Reference Form DI-SUP-105F02
- Index
- Index Example
- Cost Element Breakdown by Line Item
- Cost Element Breakdown by Line Item Example
- Summary Cost Element Breakdown
- Summary Cost Element Breakdown - Example
- Summary Cost Element Breakdown - Example
- Material
- Material
- Individual Bills of Material Example
- Consolidated Bill of Material Example
- Consolidated Bill of Material
- Material
- Material
- Material
- Labor
- Labor
- Labor
- Labor Hours Example
- Labor Hours Example ndash Actual Production History
- Labor Hours Examples ndash Basis of Estimate
- Other Direct Costs (ODC)
- Nonrecurring Expenses (NRE)
- NRE
- Rates
- Rates
- Summary
- Summary
- Other Types of Proposals
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals Cost of WorkDeleted for a Partial Deleted Quantity
- Supplier Proposal Adequacy Checklist
-
| Buyer (Type or Print Name) | Date |
| Offeror | |||
| By | |||
| Title | |||
| Date |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp | ||
| (iii) Total number of customers involved in such sales | enspenspenspenspensp |
| (a) Transfer price(s) of such goods | $ enspenspenspenspensp | ||
| (b) Total units of such goods and or | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| Unmodified Items Identified in Part 1 | Modified Items Proposed to PSMEC | Unit Value of Modification | |||||||
| Unmodified Item | Unmodified Price | Modified Item | Modified Price to PSEMC | ||||||
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| To the general public in the time-frame beginning | enspenspenspenspensp | enspenspenspenspensp | and ending | enspenspenspenspensp |
| (a) Sales | |||||
| (b) Leases | |||||
| (c) Licenses | |||||
| (d) Offers to Sell 1 | |||||
| (e) Offers to Lease 2 | |||||
| (f) Offers to License 3 |
| Part Number | |||
| Description | |||
| Offeror |
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Cost Element Breakdown by Line Item Example
12FAR 15408 Table 15-2 I D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summary Cost Element Breakdownbull When more than one contract line item (Part Number NRE etc) is
proposed you must provide summary total amounts covering all items foreach element of cost If the proposal covers a high mid and low point thesummary needs to only be for those points not all the differentcombinations that can result from range pricing If the proposal is formultiple years there needs to be a summary for each of the yearsbull For example if your proposal included the following
bull You would need to provide a summary by cost element that includes the totalproposed value of $1542500 See the next slide for an example showing thethree individual cost elements being combined into a summary
Slight differences due to rounding
13
Part Number Quantity Unit Price Total PricePart ABC 50 $12500 $625000Part ABB 75 $10300 $772500NRE 1 $145000Total $1542500
FAR 15408 Table 15-2 I E
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summary Cost Element Breakdown - Example
14FAR 15408 Table 15-2 I E
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summary Cost Element Breakdown - Example
15
bull If the proposal is a base year plus option years there needs to be asummary Cost Element Breakdown for each of the years at the points in theRFP requiring Cost or Pricing data
FAR 15408 Table 15-2 I E
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Include a BOM for each individual part proposed A BOM is a list of the raw
materials subassemblies etc needed to manufacture a product
bull Provide your BOMs in Excel formatbull The consolidated and individual BOMs need to identify the following for each line
itembull Part Number and descriptionbull Supplierbull Quantitybull Unit Price ndash Unit pricing on the BOM should tie to the supportbull Total Pricebull Basis for pricing (vendor quotes purchase orders)
Source of pricing (purchase order quotes etc) must be referenced in the BOM
bull PSEMC will require copies of the support (ie quotes purchase orders) for asample of the items on the BOM during the cost analysis
16FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull If attritionyield or scrap are added to your material you will need to submit
adequate basis of estimates and support as appropriate
bull There are time when your BOM may be impacted by minimum buys or NREthat is passed along from your supplier If this happens make sure this isclearly identified on the BOM and the support quotes or purchase orders
bull In addition to the individual BOMs FAR requires a consolidated BOM inyour proposal A consolidated BOM is a listing of the material needed forthe proposal A consolidated BOM combines all the materials for each ofthe parts being procured as well as assemblies services or materialassociated with NRE
17FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Individual Bills of Material Example
18
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Consolidated Bill of Material Examplebull Below is an example of a consolidated BOM This BOM was developed by
taking the three individual BOMrsquos on the previous page and combining themtogetherbull In a consolidated BOM part numbers and quantities should be combined (or
subtotaled) if they are the same parts For example the BOMs for Part Nos ABCand ABB both require the same Connector and Screw In the consolidated BOMthe requirements have been combined and reflect the total number of Connectorsand Screws that will be needed for this proposal
19
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Consolidated Bill of Materialbull If the proposal is for a base year plus option years there needs to be a
consolidated BOM for each of the years at each of the points in the RFPrequiring cost or pricing
bull To determine if a subtier cost analysis is required you need to add togetherthe anticipated costs for each supplier for all years In the above examplethere are two suppliers that will require cost analysis (Ford and Motion)
20
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Supplier proposals
bull A cost analysis report is required if any of your suppliersrsquo proposals exceedthe Truth in Negotiations Act (TINA) threshold These need to be submittedwith your proposal
bull If the cost analysis for a supplier is not complete at the time of your proposalsubmittal a schedule listing the estimated completion dates for each supplierneeds to be provided in the proposal
bull If an exemption applies that eliminates the need for a cost analysis (commercial orcompetitively priced) documentation needs to be provided to support these claims
21FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull If you claim your supplier was competed and the value is over the TINA
threshold you will need to provide the following
bull Evidence that an RFP or solicitation to bid was sent to two or more supplierscapable of providing the goods or services requested
bull Copies of the quotes received from each of the suppliers who were competedbull Supplierrsquos analysis with basis of rationale for why the winning bid represents the best value
(lowest price technical considerations etc)
bull If you claim your supplierrsquos parts or services are commercial refer to thecommercial section in this document
22FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Refer to the detailed instructions in the RFP when your proposal supports a
base year plus options contract or a long term agreement Guidance shouldbe provided here on the consolidation and subtier requirements If youhave any questions regarding this contact your PSEMC Supply Chainrepresentative
bull Inter-organizational costs
bull Inter-organizational costs are defined as the costs of items transferred betweendivisions within the same company
bull If you have bid any inter-organizational costs in your proposal you will need toprovide a cost element breakdown for each inter-organizational transfer andsupport as appropriate
bull One more thing
bull If you have a supplier with a value in excess of $135 million or is greater than 10percent of your total proposal and exceeds the TINA threshold FAR 15408 Table15-2 requires that we submit the supplierrsquos proposal and cost or pricing data withour own proposal
23FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Provide a time-phased (eg monthly quarterly) breakdown of labor hours ratesand cost by appropriate category and furnish basis for estimates
24FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Proposed labor hours are generally a combination of direct and support laborhours
bull Direct Labor Hours ndash Hours that can be identified specifically to a final end itembull Support Labor Hours ndash Hours that cannot be specifically identified to one end item For
example a production manager may be in charge of overseeing the manufacturing ofmultiple parts
25FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull You need to provide a breakdown of the labor hours by labor category and
function along with a basis of estimate for the proposed labor hours
bull For example if you propose 500 hours for an end item you would need to providea breakdown by categoryfunction (assembly inspection supervisor engineeretc) You also will need to provide a detailed basis of estimate for eachcategoryfunction showing how your arrived at the hours for the proposed laborcategory
bull Generally the basis should be actual production history An alternative approach isthe use of engineering estimates if the item has not been manufactured before
bull Cost Accounting Standards (CAS) 401 requires that a company isconsistent between proposals and accounting practices The way acompany estimates its labor hours needs to also be the way it accumulatesits production history
26FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours ExampleProposal No HLQxxxxxDate January 1 20xx ABC Corporation
Labor HoursProposed Labor Hours ndash 8279 hrsunit for Part ABC
27
Direct Labor HrsUnitAssembly 3800 Machinist 350 QA 762 Engineer 1 238
Subtotal 5151
Production Support HrsUnitMfg Supervisor 920Eng Supervisor 368QA supervisor 920Production Mgr 920
Subtotal 3128
Total Hrs 8279
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Example ndash Actual Production History
28
ProposedDuration - Months 7 9 24 12 Qty 30 39 110 50 End Date 11152006 982007 912009
Direct Labor Total Hrs HrsUnit Total Hours HrsUnit Total Hrs HrsUnit Total Hrs HrsUnitAssembly 1836 6120 1675 4295 4338 3944 1900 3800 Machinist 169 564 154 396 400 363 175 350 QA 368 1238 336 862 870 791 381 762 Engineer 1 115 383 105 269 272 247 119 238
Production Support Total Hrs Total Hrs Total Hrs Total Hrs HrsUnitMFG Supervisor 268 345 920 460 920 Eng Supervisor 107 138 184 184 368 QA Supervisor 268 345 920 460 920 Production Mgr 268 345 920 460 920
HrsUnit 8279
Acutal Production History - Part ABC
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Examples ndash Basis of Estimatebull Basis of estimate for direct labor
bull Proposed direct labor hours were developed by apply a 90 percent learningcurve to the production labor history for part BBC You need to provide abasis for the 90 percent curve
bull Basis of estimate for the manufacturing supervisorbull The manufacturing supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 920 hours were used over a 24-month periodSince the current proposal has been estimated to cover 12 months 460hours were applied to the manufacturing supervisor (920 divided by 2)
bull Basis of estimate for engineering supervisorbull The engineering supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 184 hours were necessary to complete the taskThis task is similar and so we estimate 184 hours
29
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Direct Costs (ODC)bull List other expenses not otherwise included under material and labor (eg
travel freight) and provide basis for pricing
bull For example the basis for travel would include the location number of tripsnumber of people attending and the estimated expenses for the travel
30FAR 15408 Table 15-2 II D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Nonrecurring Expenses (NRE)bull NRE refers to one-time costs that you would not normally see from proposal
to proposal
bull Examples of NRE are as follows
bull Special Toolingbull New Equipmentbull Equipment Refurbishmentbull Hours and materials associated with increase throughput capacitybull Hours and materials to research develop design and test new processesbull One-Time review events
31FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
NREbull As mentioned earlier NRE charges must be broken out by cost element
This means the material and labor components associated with the NREare clearly broken out
bull Material ndash any material associated with NRE should be supported by supplierquotes or purchase orders
bull Labor ndash labor hours associated with NRE should have basis of estimates(BOE) that are broken down by labor category and include detaileddescriptions of the tasks that will be performed
32FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Rates include direct labor overhead general and administrative expenses
(GampA) and cost of money (COM)
bull PSEMC has the capability to perform rate audits on suppliers in lieu ofhaving the DCAA do this
bull If you allow PSEMC to perform this rate audit you need to provide thefollowing information
bull Explanation as to how the rates were calculatedbull Detailed documentation (financial statements labor pools listing of unallowable
expenses etc) that support the rate calculationsbull If the detailed documentation is based on budgetary numbers you will also need
to provide three years of your most current actuals to support you budgetarynumbers
bull If budgetary numbers differ significantly from the most recent actuals providedetailed explanations for these differences
33FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Facilities Capital COM
bull When you elect to claim COM submit a completed form CASB-CFM (FacilitiesCapital Cost of Money Factors Computation) in accordance with FAR 31205-10Also complete DD Form 1861 and include a copy in your proposal submissionBoth forms can be found on-line at various locations
34FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull In summary all noncompetitive noncommercial proposals valued at more
than the cost and pricing threshold (TINA) are required to include thefollowing information
35
Required Items Page FAR Reference
Supplier Proposal Adequacy Checklist Pg 5-6 PSEMC Policy
Cover Sheet - SF1411 or equivalent Pg 7-8 FAR 15408 Table 15-2 I A
Index Pg 9-10 FAR 15408 Table 15-2 I B
Cost Element Breakdown Pg 11-12 FAR 15408 Table 15-2 I D
Summary Cost Element Breakdown Pg 13-15 FAR 15408 Table 15-2 I E
Material (Including Consolidated BOM) Pg 16-23 FAR 15408 Table 15-2 II A
Labor Pg 24-29 FAR 15408 Table 15-2 II B
ODC Pg 30 FAR 15408 Table 15-2 II D
NRE Pg 31-32 FAR 15408 Table 15-2 II
Rates Pg 33-34 FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull Sufficient rationale and supporting documentation to support each of the
proposed cost elements is also required
bull Obtaining adequate supplier proposals is always on the critical path sincePSEMC cannot submit its proposal to the government until it has receivedadequate proposals from its subcontractors Therefore it is critical thatadequate supplier proposals are obtained as quickly as possible
36
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Types of Proposalsbull Commercial item proposals
bull Change proposals
bull The following slides are only applicable in certain situations
37
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you or one of your suppliers is providing a commercial part cost or pricing
data and a cost analysis is not required However you must demonstrate that the part is commercial and that the price is reasonable
bull A commercial item is any item other than real property that is a type customarily used by the general public or by a nongovernment entity
bull Has also been sold leased or licensed to the general public or has been offered for sale lease or license to the general public
bull A final commercial determination is made by the government contracting officer If the items is deemed to not be commercial the supplier is required to submit a complete proposal that includes cost and pricing data
38FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you claim one or more of your parts are commercial you need to support
your position by providing the following information
bull Copies of applicable portions of a company catalogue or website address that shows the item with a description and unit price
bull Show that these items can be purchased by the general public or nongovernmentalagency
bull If a website or catalogue is not available copies of invoices showing the sale of these items to nongovernment entities is sufficient
39FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull PSEMC policy requires suppliers to complete a PSEMC Supplier Proposal
Adequacy Checklist (sent with the RFP) for all proposals where the supplierclaims its parts are commercial
bull An example of the Supplier Proposal Adequacy Checklist for commercialitems is attached reference form DI-SUP-310F01
40PSEMC Policy
Pacific Scientific EMC ndash Commercial Item Status
If claiming an exemption offeror must provide the appropriate information to determine commerciality Refusal to provide the required information can result in an assist audit being requested from the Defense Contract Audit Agency or other cognizant Government Audit Agencies and or a determination that goods andor services offered do not constitute a ldquocommercial itemrdquo
Offeror hereby represents that to the best of its knowledge information and belief goods andor services offered constitute a ldquocommercial itemrdquo as defined by FAR 2101 because it constitutes
A Commercial Item or Component Justification (required for any claim)
Key Inquiries and Summary of your Supporting Information
What is the relevant ldquotyperdquo of item enspenspenspenspensp
What are the types of items uses by the general public or by non-governmental entities for other than governmental purposes enspenspenspenspensp
What indicates the type of itemrsquos use described above is customary enspenspenspenspensp
Has the offered item itself (as opposed to the type of item) been sold or offered for sale
|_| Yes|_| NO
Are the offered itemrsquos sales (or offers to sale) to the general public
|_| Yes|_| NO
Please provide data regarding sales leases or licenses of this item and identification of the non-government use entities
ValueNon-Government Use Entities
(date)(date)
In addition as an appendix to this commercial item determination provide supporting documentation in the form of
1that have not materialized into sales
2that have not materialized into leases
3that have not materialized into licenses
1 Verification of sales history to source documents
2 Identification of customarily offered discounts for the item
3 Verification of the item to an existing catalog or price list and
4 Verification of historical data for an item previously not determined commercial that the offeror is now trying to qualify as a commercial item
(check box(es) as appropriate)
|_| I Unmodified Commercial Items or Components (Complete Section A)
Any item other than real property that is a of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes and
(i) Has been sold leased or licensed to the general public or
(ii) Has been offered for sale lease or license to the general public
|_| II Item Evolved from Commercial Items or Components
Any item that evolved from an item described in Part I (which is required if claiming this exemption) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace but will be available in the commercial marketplace in time to satisfy the delivery requirements under a United States Government solicitation
If claiming the item Evolved from Commercial Items or Components exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use Part I)
|_| Yes|_| NO
If yes describe the relationship of the modifications to the Federal Government requirement enspenspenspenspensp
What are the advances in technology or performance between the offered item and the commercial item on which it is based enspenspenspenspensp
What is your support for such advances enspenspenspenspensp
What is your support for availability of the item in time to meet requirements Is the claim availability reasonable enspenspenspenspensp
Please provide data regarding
(a) Currently pending offers including
(b) Planned Offers Including
In all instances scheduled for delivery no later than the delivery requirements under the
(c) Data in the format of Part I for completed sales of the item from which the ldquocommercial itemrdquo evolved
|_| III Modified Commercial Items or Components
Any item that would satisfy a criterion expressed in Part I or II hereof but for -
|_| (i) Modifications of a type customarily available in the commercial marketplace
If claiming Modified Commercial Item or Components that are of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use part I or parts II and II)
|_| Yes|_| NO
What are the modifications that would be made to the commercial item enspenspenspenspensp
Are the modifications of a type customarily available in the commercial marketplace
|_| Yes|_| NO
Summarize your support for customary availability of the modification in the commercial marketplace enspenspenspenspensp
|_| (ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet federal government requirements ldquoMinor modificationsrdquo means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component or change the purpose of a process Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product Dollar values and percentages may be used as guideposts but are not conclusive evidence that a modification is minor
If claiming Modified Commercial Items or Components that are not of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Are the modifications made to satisfy Federal Government requirements
|_| Yes|_| NO
Do the modifications alter the nongovernmental function or essential physical characteristics of the item
|_| Yes|_| NO
If yes what are the alterations enspenspenspenspensp
Does the modified item retain a predominance of nongovernmental functions or physical characteristics
|_| Yes|_| NO
Summarize your support describing the value of the modifications in comparison to the value of the final product enspenspenspenspensp
Summarize your support for the magnitude or size of the modifications in relation to the magnitude or size of the final product enspenspenspenspensp
Are there any other factors which would allow you to conclude that the modifications are minor
|_| Yes|_| NO
If yes what are they enspenspenspenspensp
Based on the above does the modification qualify as a minor modification
|_| Yes|_| NO
Please provide data regarding the minor modification and the total price to PSEMC of Minor Modifications
Price to PSEMC of all Minor Modifications at quantities proposed in this pricing action enspenspenspenspensp
Minor modifications that exceed the thresholds in FAR 15403-1(c)(3)(iii)(B) are subject to the Certified Cost or Pricing Data requirements and must be proposed as described by FAR 15408 Table 152
|_| IV Commercial Items Support Services
Installation services maintenance services repair services training services and other services if -
(i) Such services are procured for support of an item referred to in Parts I II III or IV hereof regardless of whether such services are provided by the same source or at the same time as the item and
(ii) The source of such services provided similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government
If claiming Commercial Item Support Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services procured for the support of a commercial item which qualifies under a preceding part
|_| Yes|_| NO
Describe the nature of the services and how they support the commercial item enspenspenspenspensp
Are the services provided at the same time to the general public and the Federal Government
|_| Yes|_| NO
Are the terms and conditions for the services similar to those offered to the general public
|_| Yes|_| NO
Describe differences enspenspenspenspensp
Please provide data regarding
a Open and completed contracts including
b Pending offers including
|_| V Any Combination of Items
Meeting the requirements of Parts I II III or IV hereof that are of a type customarily combined and sold in combination to the general public
If you have checked the above box and are claiming the Any Combination of Items exemption please attach hereto information as requ3sted for Parts I II III and IV
|_| VI Other Commercial Services
Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions For purposes of these services -
(i) Catalog price means a price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor is either published or otherwise available for inspection by customers and states prices at which sales are currently or were last made to a significant number of buyers constituting the general public and
(ii) Market prices means current prices that are established in the course of ordinary trade between buyers and sellers free to bargain and that can be substantiated through competition or from source independent of the offerors
If claiming the Other Commercial Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services sold competitively in substantial quantities in the commercial marketplace
|_| Yes|_| NO
If no are the services of a type sold in substantial quantities in the commercial marketplace
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If yes what is the ldquotyperdquo of service enspenspenspenspensp
Summarize your support for same enspenspenspenspensp
Are the prices quoted for specific tasks performed or specific outcomes to be achieved
|_| Yes|_| NO
Are the services offered consistent with your standard terms and conditions
|_| Yes|_| NO
Are the services of a type sold at catalog or market prices
|_| Yes|_| NO
If sold at catalog price is the price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor
|_| Yes|_| NO
If sold at catalog price is the catalog or its equivalent either published or otherwise available for inspection by customers
|_| Yes|_| NO
Summarize your support for same (include a copy of the catalog or provide location) enspenspenspenspensp
If sold at a catalog price are the listed prices those at which sales are currently or were last made to a significant number of buyers in the general public
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If sold at a market price are the prices established in the course of ordinary trade between buyers and sellers free to bargain
|_| Yes|_| NO
Summarize you support for same enspenspenspenspensp
If sold at market price can the price be substantiated through competition or from sources independent of the offeror
|_| Yes|_| NO
Summarize your support for same
Please provide data regarding
(a) Open and completed contracts including
(b) Pending Offers including
|_| VII Any Item Combination of Items or Service
Referred to in Parts I through VI hereof notwithstanding the fact that the item combination of items or service is transferred between or among separate divisions subsidiaries or affiliates of the Offeror
If you have checked the above box and are claiming the ldquoAny item combination of items or Servicerdquo exemption please provide data regarding
|_| VIII Non-developmental Items
A non-developmental item as defined in FAR 2101 which has been developed exclusively at private expense and sold in substantial quantities on a competitive basis to multiple State and local governments
If claiming the Non-developmental Items exemption then the following must be provided
Key Inquiries and Summary of Supplierrsquos Supporting Information
Was the item previously developed
|_| Yes|_| NO
Was the item used exclusively for governmental purposes by a Federal agency a State or local government or a foreign government with which the United States has mutual defense cooperation agreement
|_| Yes|_| NO
If the item is to be modified do the modifications comply with Part III guidance on modifications
|_| Yes|_| NO
If the item is not yet in use does it otherwise qualify as a non-developmental item
|_| Yes|_| NO
Was the item developed exclusively at private expense
|_| Yes|_| NO
Is the item sold in substantial quantities on a competitive basis to multiple State and local governments
|_| Yes|_| NO
Please provide data regarding
|_| IX General Inquiries
Does the item qualify as a combination of items under Parts I II III and IV above
|_| Yes|_| NO
Has the item or services previously been determined to be commercial
|_| Yes|_| NO
If so by whom enspenspenspenspensp
|_| X Other Information
Is there other information of which you are aware that would supplement the information provided and would help substantiate whether the item or service is commercial
|_| Yes|_| NO
Have you provided such information
|_| Yes|_| NO
List such information enspenspenspenspensp
|_| XI Supplier Determination
Offeror hereby represents that the foregoing information is accurate and complete and that to the best of its knowledge information and belief goods and or services offered currently constitute ldquoa commercial itemrdquo as defined by FAR 2101
For PSEMC Internal Use Only
XII Supplier Determination
Supplier has claimed that the item component or service identified above is a commercial item under the definition at FAR 2101 I have reviewed and summarized the supplierrsquos support for that claim in the appropriate sections above Based on such review of such support information and any other information identified elsewhere herein I conclude that the supplier
|_| HAS |_| HAS NOT Supported its claim of commercial item status under the definition at FAR 2101
If the supplier HAS NOT supported its claim list reasons enspenspenspenspensp
Describe action plat to resolve enspenspenspenspensp
Comments enspenspenspenspensp
image1jpeg
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull This section of Table 15-2 describes the format an estimating approach we
are required to use when developing a proposal to modify an existingcontract In addition to the cost element breakdowns required as describedin the previous slides when there is a modification or change proposal FARalso requires the following table to be inserted into your proposal
41
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals
42FAR 15408 Table 15-2 III B
B Change Orders modifications and claims
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
Column 2 includes the cost of all work deleted This
includes cost of work deleted already performed (amount in Column 3) and
cost of work deleted not yet performed (Column 4)
Column 3 includes the cost of deleted work already
performed This amount will not be included in the credit (delete) adjustment amount (eg we will not give back costs already
incurred)
Column 4 includes cost for deleted work not yet performed ndash must be priced using current
estimates (but the current estimate may be the same as
the original estimate) ndash it is develed similar to a normal ldquoaddrdquo proposal with a few
exceptions
Column 5 includes the cost of the
new work and is developed as we do any
other proposal
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull Detail for columns listed on previous page
1 Enter appropriate cost element2 Enter current estimates of what it would take to complete the deleted work that
has not yet been performed3 Enter current cost of deleted work already performed This should be based on
actuals and copies to support these actuals should be included in the proposal4 Enter the net cost to be deleted (Column 2 minus Column 3)5 Enter your estimate for cost of work added by the change6 Enter the net cost of change (Column 5 minus Column 4)7 Identify where in your proposal the supporting documentation and basis of
estimate can be found for each of these sections
43FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull For purposes of determining if a proposal an cost or pricing data are
required from individual suppliers on a change proposal the absolute valueof the ldquodeleterdquo amount plus the ldquoaddrdquo amount is computed for each supplierthat exceeds the cost and pricing threshold (TINA)
bull Remember from FAR 15403-4(b) ndash if the absolute value for an individualsupplier exceeds the cost and pricing threshold (TINA) and the supplier iseither an actual supplier (will continue to provide partsservices on thiscontract) the supplier is required to provide a proposal and cost or pricingdata in support of the change proposal
bull Deleted amount is our current estimate (generally no the original contractvalue unless it is our current estimate)
44FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull If a supplierrsquos quantities are changing due to a modification the net delete
or add amount is used to determine if the supplier exceeds the cost andpricing threshold (TINA)
bull The estimator should not consider the old quantity as the delete and thenew quantity as the add (eg in computing absolute value) whendetermining if the supplier exceeds the threshold in cases where quantitiesare changing
bull The development of the appropriate deletion is not simply the estimatedcost of the deleted quantity ndash this will overstate the credit
45FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals Cost of WorkDeleted for a Partial Deleted Quantitybull In cases where part of a material quantity is being deleted (eg original
contract requires 100 widgets and the contract is modified to delete 30 ofthem) one method of estimating the amount of the delete is
1 Develop a current estimate of the extended cost for the item(s) given the originalquantity
2 Develop a current estimate of the extended cost for the items at the lower(remaining) quantity
3 The delta between these two values represents the amount of the delete
bull The same method can be used if the contract is modified to increase aquantity for a part
46FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklist
47
bull The Supplier Proposal Adequacy Checklist is accessed from the externalPSEMC supplier website
bull Additional supplier proposal guidance and resources are available(information templates and tools to assist in building a FAR compliantproposal
bull Supplier proposal guidance
bull Supplier Proposal Adequacy Guidelines
bull PSEMC document templates
bull Supplier proposal adequacy checklistbull Contract pricing proposal cover sheet
httpspsemccomsuppliers
- Strategic Affordability Analysis
- Purpose of this Guideline
- Table of Contents
- Table of Contents
- Supplier Proposal Adequacy Checklist
- Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
- Cover Sheet
- Cover Sheet Example ndash Reference Form DI-SUP-105F02
- Index
- Index Example
- Cost Element Breakdown by Line Item
- Cost Element Breakdown by Line Item Example
- Summary Cost Element Breakdown
- Summary Cost Element Breakdown - Example
- Summary Cost Element Breakdown - Example
- Material
- Material
- Individual Bills of Material Example
- Consolidated Bill of Material Example
- Consolidated Bill of Material
- Material
- Material
- Material
- Labor
- Labor
- Labor
- Labor Hours Example
- Labor Hours Example ndash Actual Production History
- Labor Hours Examples ndash Basis of Estimate
- Other Direct Costs (ODC)
- Nonrecurring Expenses (NRE)
- NRE
- Rates
- Rates
- Summary
- Summary
- Other Types of Proposals
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals Cost of WorkDeleted for a Partial Deleted Quantity
- Supplier Proposal Adequacy Checklist
-
| Buyer (Type or Print Name) | Date |
| Offeror | |||
| By | |||
| Title | |||
| Date |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp | ||
| (iii) Total number of customers involved in such sales | enspenspenspenspensp |
| (a) Transfer price(s) of such goods | $ enspenspenspenspensp | ||
| (b) Total units of such goods and or | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| Unmodified Items Identified in Part 1 | Modified Items Proposed to PSMEC | Unit Value of Modification | |||||||
| Unmodified Item | Unmodified Price | Modified Item | Modified Price to PSEMC | ||||||
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| To the general public in the time-frame beginning | enspenspenspenspensp | enspenspenspenspensp | and ending | enspenspenspenspensp |
| (a) Sales | |||||
| (b) Leases | |||||
| (c) Licenses | |||||
| (d) Offers to Sell 1 | |||||
| (e) Offers to Lease 2 | |||||
| (f) Offers to License 3 |
| Part Number | |||
| Description | |||
| Offeror |
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summary Cost Element Breakdownbull When more than one contract line item (Part Number NRE etc) is
proposed you must provide summary total amounts covering all items foreach element of cost If the proposal covers a high mid and low point thesummary needs to only be for those points not all the differentcombinations that can result from range pricing If the proposal is formultiple years there needs to be a summary for each of the yearsbull For example if your proposal included the following
bull You would need to provide a summary by cost element that includes the totalproposed value of $1542500 See the next slide for an example showing thethree individual cost elements being combined into a summary
Slight differences due to rounding
13
Part Number Quantity Unit Price Total PricePart ABC 50 $12500 $625000Part ABB 75 $10300 $772500NRE 1 $145000Total $1542500
FAR 15408 Table 15-2 I E
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summary Cost Element Breakdown - Example
14FAR 15408 Table 15-2 I E
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summary Cost Element Breakdown - Example
15
bull If the proposal is a base year plus option years there needs to be asummary Cost Element Breakdown for each of the years at the points in theRFP requiring Cost or Pricing data
FAR 15408 Table 15-2 I E
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Include a BOM for each individual part proposed A BOM is a list of the raw
materials subassemblies etc needed to manufacture a product
bull Provide your BOMs in Excel formatbull The consolidated and individual BOMs need to identify the following for each line
itembull Part Number and descriptionbull Supplierbull Quantitybull Unit Price ndash Unit pricing on the BOM should tie to the supportbull Total Pricebull Basis for pricing (vendor quotes purchase orders)
Source of pricing (purchase order quotes etc) must be referenced in the BOM
bull PSEMC will require copies of the support (ie quotes purchase orders) for asample of the items on the BOM during the cost analysis
16FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull If attritionyield or scrap are added to your material you will need to submit
adequate basis of estimates and support as appropriate
bull There are time when your BOM may be impacted by minimum buys or NREthat is passed along from your supplier If this happens make sure this isclearly identified on the BOM and the support quotes or purchase orders
bull In addition to the individual BOMs FAR requires a consolidated BOM inyour proposal A consolidated BOM is a listing of the material needed forthe proposal A consolidated BOM combines all the materials for each ofthe parts being procured as well as assemblies services or materialassociated with NRE
17FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Individual Bills of Material Example
18
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Consolidated Bill of Material Examplebull Below is an example of a consolidated BOM This BOM was developed by
taking the three individual BOMrsquos on the previous page and combining themtogetherbull In a consolidated BOM part numbers and quantities should be combined (or
subtotaled) if they are the same parts For example the BOMs for Part Nos ABCand ABB both require the same Connector and Screw In the consolidated BOMthe requirements have been combined and reflect the total number of Connectorsand Screws that will be needed for this proposal
19
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Consolidated Bill of Materialbull If the proposal is for a base year plus option years there needs to be a
consolidated BOM for each of the years at each of the points in the RFPrequiring cost or pricing
bull To determine if a subtier cost analysis is required you need to add togetherthe anticipated costs for each supplier for all years In the above examplethere are two suppliers that will require cost analysis (Ford and Motion)
20
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Supplier proposals
bull A cost analysis report is required if any of your suppliersrsquo proposals exceedthe Truth in Negotiations Act (TINA) threshold These need to be submittedwith your proposal
bull If the cost analysis for a supplier is not complete at the time of your proposalsubmittal a schedule listing the estimated completion dates for each supplierneeds to be provided in the proposal
bull If an exemption applies that eliminates the need for a cost analysis (commercial orcompetitively priced) documentation needs to be provided to support these claims
21FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull If you claim your supplier was competed and the value is over the TINA
threshold you will need to provide the following
bull Evidence that an RFP or solicitation to bid was sent to two or more supplierscapable of providing the goods or services requested
bull Copies of the quotes received from each of the suppliers who were competedbull Supplierrsquos analysis with basis of rationale for why the winning bid represents the best value
(lowest price technical considerations etc)
bull If you claim your supplierrsquos parts or services are commercial refer to thecommercial section in this document
22FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Refer to the detailed instructions in the RFP when your proposal supports a
base year plus options contract or a long term agreement Guidance shouldbe provided here on the consolidation and subtier requirements If youhave any questions regarding this contact your PSEMC Supply Chainrepresentative
bull Inter-organizational costs
bull Inter-organizational costs are defined as the costs of items transferred betweendivisions within the same company
bull If you have bid any inter-organizational costs in your proposal you will need toprovide a cost element breakdown for each inter-organizational transfer andsupport as appropriate
bull One more thing
bull If you have a supplier with a value in excess of $135 million or is greater than 10percent of your total proposal and exceeds the TINA threshold FAR 15408 Table15-2 requires that we submit the supplierrsquos proposal and cost or pricing data withour own proposal
23FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Provide a time-phased (eg monthly quarterly) breakdown of labor hours ratesand cost by appropriate category and furnish basis for estimates
24FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Proposed labor hours are generally a combination of direct and support laborhours
bull Direct Labor Hours ndash Hours that can be identified specifically to a final end itembull Support Labor Hours ndash Hours that cannot be specifically identified to one end item For
example a production manager may be in charge of overseeing the manufacturing ofmultiple parts
25FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull You need to provide a breakdown of the labor hours by labor category and
function along with a basis of estimate for the proposed labor hours
bull For example if you propose 500 hours for an end item you would need to providea breakdown by categoryfunction (assembly inspection supervisor engineeretc) You also will need to provide a detailed basis of estimate for eachcategoryfunction showing how your arrived at the hours for the proposed laborcategory
bull Generally the basis should be actual production history An alternative approach isthe use of engineering estimates if the item has not been manufactured before
bull Cost Accounting Standards (CAS) 401 requires that a company isconsistent between proposals and accounting practices The way acompany estimates its labor hours needs to also be the way it accumulatesits production history
26FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours ExampleProposal No HLQxxxxxDate January 1 20xx ABC Corporation
Labor HoursProposed Labor Hours ndash 8279 hrsunit for Part ABC
27
Direct Labor HrsUnitAssembly 3800 Machinist 350 QA 762 Engineer 1 238
Subtotal 5151
Production Support HrsUnitMfg Supervisor 920Eng Supervisor 368QA supervisor 920Production Mgr 920
Subtotal 3128
Total Hrs 8279
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Example ndash Actual Production History
28
ProposedDuration - Months 7 9 24 12 Qty 30 39 110 50 End Date 11152006 982007 912009
Direct Labor Total Hrs HrsUnit Total Hours HrsUnit Total Hrs HrsUnit Total Hrs HrsUnitAssembly 1836 6120 1675 4295 4338 3944 1900 3800 Machinist 169 564 154 396 400 363 175 350 QA 368 1238 336 862 870 791 381 762 Engineer 1 115 383 105 269 272 247 119 238
Production Support Total Hrs Total Hrs Total Hrs Total Hrs HrsUnitMFG Supervisor 268 345 920 460 920 Eng Supervisor 107 138 184 184 368 QA Supervisor 268 345 920 460 920 Production Mgr 268 345 920 460 920
HrsUnit 8279
Acutal Production History - Part ABC
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Examples ndash Basis of Estimatebull Basis of estimate for direct labor
bull Proposed direct labor hours were developed by apply a 90 percent learningcurve to the production labor history for part BBC You need to provide abasis for the 90 percent curve
bull Basis of estimate for the manufacturing supervisorbull The manufacturing supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 920 hours were used over a 24-month periodSince the current proposal has been estimated to cover 12 months 460hours were applied to the manufacturing supervisor (920 divided by 2)
bull Basis of estimate for engineering supervisorbull The engineering supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 184 hours were necessary to complete the taskThis task is similar and so we estimate 184 hours
29
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Direct Costs (ODC)bull List other expenses not otherwise included under material and labor (eg
travel freight) and provide basis for pricing
bull For example the basis for travel would include the location number of tripsnumber of people attending and the estimated expenses for the travel
30FAR 15408 Table 15-2 II D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Nonrecurring Expenses (NRE)bull NRE refers to one-time costs that you would not normally see from proposal
to proposal
bull Examples of NRE are as follows
bull Special Toolingbull New Equipmentbull Equipment Refurbishmentbull Hours and materials associated with increase throughput capacitybull Hours and materials to research develop design and test new processesbull One-Time review events
31FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
NREbull As mentioned earlier NRE charges must be broken out by cost element
This means the material and labor components associated with the NREare clearly broken out
bull Material ndash any material associated with NRE should be supported by supplierquotes or purchase orders
bull Labor ndash labor hours associated with NRE should have basis of estimates(BOE) that are broken down by labor category and include detaileddescriptions of the tasks that will be performed
32FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Rates include direct labor overhead general and administrative expenses
(GampA) and cost of money (COM)
bull PSEMC has the capability to perform rate audits on suppliers in lieu ofhaving the DCAA do this
bull If you allow PSEMC to perform this rate audit you need to provide thefollowing information
bull Explanation as to how the rates were calculatedbull Detailed documentation (financial statements labor pools listing of unallowable
expenses etc) that support the rate calculationsbull If the detailed documentation is based on budgetary numbers you will also need
to provide three years of your most current actuals to support you budgetarynumbers
bull If budgetary numbers differ significantly from the most recent actuals providedetailed explanations for these differences
33FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Facilities Capital COM
bull When you elect to claim COM submit a completed form CASB-CFM (FacilitiesCapital Cost of Money Factors Computation) in accordance with FAR 31205-10Also complete DD Form 1861 and include a copy in your proposal submissionBoth forms can be found on-line at various locations
34FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull In summary all noncompetitive noncommercial proposals valued at more
than the cost and pricing threshold (TINA) are required to include thefollowing information
35
Required Items Page FAR Reference
Supplier Proposal Adequacy Checklist Pg 5-6 PSEMC Policy
Cover Sheet - SF1411 or equivalent Pg 7-8 FAR 15408 Table 15-2 I A
Index Pg 9-10 FAR 15408 Table 15-2 I B
Cost Element Breakdown Pg 11-12 FAR 15408 Table 15-2 I D
Summary Cost Element Breakdown Pg 13-15 FAR 15408 Table 15-2 I E
Material (Including Consolidated BOM) Pg 16-23 FAR 15408 Table 15-2 II A
Labor Pg 24-29 FAR 15408 Table 15-2 II B
ODC Pg 30 FAR 15408 Table 15-2 II D
NRE Pg 31-32 FAR 15408 Table 15-2 II
Rates Pg 33-34 FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull Sufficient rationale and supporting documentation to support each of the
proposed cost elements is also required
bull Obtaining adequate supplier proposals is always on the critical path sincePSEMC cannot submit its proposal to the government until it has receivedadequate proposals from its subcontractors Therefore it is critical thatadequate supplier proposals are obtained as quickly as possible
36
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Types of Proposalsbull Commercial item proposals
bull Change proposals
bull The following slides are only applicable in certain situations
37
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you or one of your suppliers is providing a commercial part cost or pricing
data and a cost analysis is not required However you must demonstrate that the part is commercial and that the price is reasonable
bull A commercial item is any item other than real property that is a type customarily used by the general public or by a nongovernment entity
bull Has also been sold leased or licensed to the general public or has been offered for sale lease or license to the general public
bull A final commercial determination is made by the government contracting officer If the items is deemed to not be commercial the supplier is required to submit a complete proposal that includes cost and pricing data
38FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you claim one or more of your parts are commercial you need to support
your position by providing the following information
bull Copies of applicable portions of a company catalogue or website address that shows the item with a description and unit price
bull Show that these items can be purchased by the general public or nongovernmentalagency
bull If a website or catalogue is not available copies of invoices showing the sale of these items to nongovernment entities is sufficient
39FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull PSEMC policy requires suppliers to complete a PSEMC Supplier Proposal
Adequacy Checklist (sent with the RFP) for all proposals where the supplierclaims its parts are commercial
bull An example of the Supplier Proposal Adequacy Checklist for commercialitems is attached reference form DI-SUP-310F01
40PSEMC Policy
Pacific Scientific EMC ndash Commercial Item Status
If claiming an exemption offeror must provide the appropriate information to determine commerciality Refusal to provide the required information can result in an assist audit being requested from the Defense Contract Audit Agency or other cognizant Government Audit Agencies and or a determination that goods andor services offered do not constitute a ldquocommercial itemrdquo
Offeror hereby represents that to the best of its knowledge information and belief goods andor services offered constitute a ldquocommercial itemrdquo as defined by FAR 2101 because it constitutes
A Commercial Item or Component Justification (required for any claim)
Key Inquiries and Summary of your Supporting Information
What is the relevant ldquotyperdquo of item enspenspenspenspensp
What are the types of items uses by the general public or by non-governmental entities for other than governmental purposes enspenspenspenspensp
What indicates the type of itemrsquos use described above is customary enspenspenspenspensp
Has the offered item itself (as opposed to the type of item) been sold or offered for sale
|_| Yes|_| NO
Are the offered itemrsquos sales (or offers to sale) to the general public
|_| Yes|_| NO
Please provide data regarding sales leases or licenses of this item and identification of the non-government use entities
ValueNon-Government Use Entities
(date)(date)
In addition as an appendix to this commercial item determination provide supporting documentation in the form of
1that have not materialized into sales
2that have not materialized into leases
3that have not materialized into licenses
1 Verification of sales history to source documents
2 Identification of customarily offered discounts for the item
3 Verification of the item to an existing catalog or price list and
4 Verification of historical data for an item previously not determined commercial that the offeror is now trying to qualify as a commercial item
(check box(es) as appropriate)
|_| I Unmodified Commercial Items or Components (Complete Section A)
Any item other than real property that is a of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes and
(i) Has been sold leased or licensed to the general public or
(ii) Has been offered for sale lease or license to the general public
|_| II Item Evolved from Commercial Items or Components
Any item that evolved from an item described in Part I (which is required if claiming this exemption) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace but will be available in the commercial marketplace in time to satisfy the delivery requirements under a United States Government solicitation
If claiming the item Evolved from Commercial Items or Components exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use Part I)
|_| Yes|_| NO
If yes describe the relationship of the modifications to the Federal Government requirement enspenspenspenspensp
What are the advances in technology or performance between the offered item and the commercial item on which it is based enspenspenspenspensp
What is your support for such advances enspenspenspenspensp
What is your support for availability of the item in time to meet requirements Is the claim availability reasonable enspenspenspenspensp
Please provide data regarding
(a) Currently pending offers including
(b) Planned Offers Including
In all instances scheduled for delivery no later than the delivery requirements under the
(c) Data in the format of Part I for completed sales of the item from which the ldquocommercial itemrdquo evolved
|_| III Modified Commercial Items or Components
Any item that would satisfy a criterion expressed in Part I or II hereof but for -
|_| (i) Modifications of a type customarily available in the commercial marketplace
If claiming Modified Commercial Item or Components that are of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use part I or parts II and II)
|_| Yes|_| NO
What are the modifications that would be made to the commercial item enspenspenspenspensp
Are the modifications of a type customarily available in the commercial marketplace
|_| Yes|_| NO
Summarize your support for customary availability of the modification in the commercial marketplace enspenspenspenspensp
|_| (ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet federal government requirements ldquoMinor modificationsrdquo means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component or change the purpose of a process Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product Dollar values and percentages may be used as guideposts but are not conclusive evidence that a modification is minor
If claiming Modified Commercial Items or Components that are not of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Are the modifications made to satisfy Federal Government requirements
|_| Yes|_| NO
Do the modifications alter the nongovernmental function or essential physical characteristics of the item
|_| Yes|_| NO
If yes what are the alterations enspenspenspenspensp
Does the modified item retain a predominance of nongovernmental functions or physical characteristics
|_| Yes|_| NO
Summarize your support describing the value of the modifications in comparison to the value of the final product enspenspenspenspensp
Summarize your support for the magnitude or size of the modifications in relation to the magnitude or size of the final product enspenspenspenspensp
Are there any other factors which would allow you to conclude that the modifications are minor
|_| Yes|_| NO
If yes what are they enspenspenspenspensp
Based on the above does the modification qualify as a minor modification
|_| Yes|_| NO
Please provide data regarding the minor modification and the total price to PSEMC of Minor Modifications
Price to PSEMC of all Minor Modifications at quantities proposed in this pricing action enspenspenspenspensp
Minor modifications that exceed the thresholds in FAR 15403-1(c)(3)(iii)(B) are subject to the Certified Cost or Pricing Data requirements and must be proposed as described by FAR 15408 Table 152
|_| IV Commercial Items Support Services
Installation services maintenance services repair services training services and other services if -
(i) Such services are procured for support of an item referred to in Parts I II III or IV hereof regardless of whether such services are provided by the same source or at the same time as the item and
(ii) The source of such services provided similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government
If claiming Commercial Item Support Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services procured for the support of a commercial item which qualifies under a preceding part
|_| Yes|_| NO
Describe the nature of the services and how they support the commercial item enspenspenspenspensp
Are the services provided at the same time to the general public and the Federal Government
|_| Yes|_| NO
Are the terms and conditions for the services similar to those offered to the general public
|_| Yes|_| NO
Describe differences enspenspenspenspensp
Please provide data regarding
a Open and completed contracts including
b Pending offers including
|_| V Any Combination of Items
Meeting the requirements of Parts I II III or IV hereof that are of a type customarily combined and sold in combination to the general public
If you have checked the above box and are claiming the Any Combination of Items exemption please attach hereto information as requ3sted for Parts I II III and IV
|_| VI Other Commercial Services
Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions For purposes of these services -
(i) Catalog price means a price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor is either published or otherwise available for inspection by customers and states prices at which sales are currently or were last made to a significant number of buyers constituting the general public and
(ii) Market prices means current prices that are established in the course of ordinary trade between buyers and sellers free to bargain and that can be substantiated through competition or from source independent of the offerors
If claiming the Other Commercial Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services sold competitively in substantial quantities in the commercial marketplace
|_| Yes|_| NO
If no are the services of a type sold in substantial quantities in the commercial marketplace
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If yes what is the ldquotyperdquo of service enspenspenspenspensp
Summarize your support for same enspenspenspenspensp
Are the prices quoted for specific tasks performed or specific outcomes to be achieved
|_| Yes|_| NO
Are the services offered consistent with your standard terms and conditions
|_| Yes|_| NO
Are the services of a type sold at catalog or market prices
|_| Yes|_| NO
If sold at catalog price is the price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor
|_| Yes|_| NO
If sold at catalog price is the catalog or its equivalent either published or otherwise available for inspection by customers
|_| Yes|_| NO
Summarize your support for same (include a copy of the catalog or provide location) enspenspenspenspensp
If sold at a catalog price are the listed prices those at which sales are currently or were last made to a significant number of buyers in the general public
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If sold at a market price are the prices established in the course of ordinary trade between buyers and sellers free to bargain
|_| Yes|_| NO
Summarize you support for same enspenspenspenspensp
If sold at market price can the price be substantiated through competition or from sources independent of the offeror
|_| Yes|_| NO
Summarize your support for same
Please provide data regarding
(a) Open and completed contracts including
(b) Pending Offers including
|_| VII Any Item Combination of Items or Service
Referred to in Parts I through VI hereof notwithstanding the fact that the item combination of items or service is transferred between or among separate divisions subsidiaries or affiliates of the Offeror
If you have checked the above box and are claiming the ldquoAny item combination of items or Servicerdquo exemption please provide data regarding
|_| VIII Non-developmental Items
A non-developmental item as defined in FAR 2101 which has been developed exclusively at private expense and sold in substantial quantities on a competitive basis to multiple State and local governments
If claiming the Non-developmental Items exemption then the following must be provided
Key Inquiries and Summary of Supplierrsquos Supporting Information
Was the item previously developed
|_| Yes|_| NO
Was the item used exclusively for governmental purposes by a Federal agency a State or local government or a foreign government with which the United States has mutual defense cooperation agreement
|_| Yes|_| NO
If the item is to be modified do the modifications comply with Part III guidance on modifications
|_| Yes|_| NO
If the item is not yet in use does it otherwise qualify as a non-developmental item
|_| Yes|_| NO
Was the item developed exclusively at private expense
|_| Yes|_| NO
Is the item sold in substantial quantities on a competitive basis to multiple State and local governments
|_| Yes|_| NO
Please provide data regarding
|_| IX General Inquiries
Does the item qualify as a combination of items under Parts I II III and IV above
|_| Yes|_| NO
Has the item or services previously been determined to be commercial
|_| Yes|_| NO
If so by whom enspenspenspenspensp
|_| X Other Information
Is there other information of which you are aware that would supplement the information provided and would help substantiate whether the item or service is commercial
|_| Yes|_| NO
Have you provided such information
|_| Yes|_| NO
List such information enspenspenspenspensp
|_| XI Supplier Determination
Offeror hereby represents that the foregoing information is accurate and complete and that to the best of its knowledge information and belief goods and or services offered currently constitute ldquoa commercial itemrdquo as defined by FAR 2101
For PSEMC Internal Use Only
XII Supplier Determination
Supplier has claimed that the item component or service identified above is a commercial item under the definition at FAR 2101 I have reviewed and summarized the supplierrsquos support for that claim in the appropriate sections above Based on such review of such support information and any other information identified elsewhere herein I conclude that the supplier
|_| HAS |_| HAS NOT Supported its claim of commercial item status under the definition at FAR 2101
If the supplier HAS NOT supported its claim list reasons enspenspenspenspensp
Describe action plat to resolve enspenspenspenspensp
Comments enspenspenspenspensp
image1jpeg
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull This section of Table 15-2 describes the format an estimating approach we
are required to use when developing a proposal to modify an existingcontract In addition to the cost element breakdowns required as describedin the previous slides when there is a modification or change proposal FARalso requires the following table to be inserted into your proposal
41
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals
42FAR 15408 Table 15-2 III B
B Change Orders modifications and claims
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
Column 2 includes the cost of all work deleted This
includes cost of work deleted already performed (amount in Column 3) and
cost of work deleted not yet performed (Column 4)
Column 3 includes the cost of deleted work already
performed This amount will not be included in the credit (delete) adjustment amount (eg we will not give back costs already
incurred)
Column 4 includes cost for deleted work not yet performed ndash must be priced using current
estimates (but the current estimate may be the same as
the original estimate) ndash it is develed similar to a normal ldquoaddrdquo proposal with a few
exceptions
Column 5 includes the cost of the
new work and is developed as we do any
other proposal
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull Detail for columns listed on previous page
1 Enter appropriate cost element2 Enter current estimates of what it would take to complete the deleted work that
has not yet been performed3 Enter current cost of deleted work already performed This should be based on
actuals and copies to support these actuals should be included in the proposal4 Enter the net cost to be deleted (Column 2 minus Column 3)5 Enter your estimate for cost of work added by the change6 Enter the net cost of change (Column 5 minus Column 4)7 Identify where in your proposal the supporting documentation and basis of
estimate can be found for each of these sections
43FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull For purposes of determining if a proposal an cost or pricing data are
required from individual suppliers on a change proposal the absolute valueof the ldquodeleterdquo amount plus the ldquoaddrdquo amount is computed for each supplierthat exceeds the cost and pricing threshold (TINA)
bull Remember from FAR 15403-4(b) ndash if the absolute value for an individualsupplier exceeds the cost and pricing threshold (TINA) and the supplier iseither an actual supplier (will continue to provide partsservices on thiscontract) the supplier is required to provide a proposal and cost or pricingdata in support of the change proposal
bull Deleted amount is our current estimate (generally no the original contractvalue unless it is our current estimate)
44FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull If a supplierrsquos quantities are changing due to a modification the net delete
or add amount is used to determine if the supplier exceeds the cost andpricing threshold (TINA)
bull The estimator should not consider the old quantity as the delete and thenew quantity as the add (eg in computing absolute value) whendetermining if the supplier exceeds the threshold in cases where quantitiesare changing
bull The development of the appropriate deletion is not simply the estimatedcost of the deleted quantity ndash this will overstate the credit
45FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals Cost of WorkDeleted for a Partial Deleted Quantitybull In cases where part of a material quantity is being deleted (eg original
contract requires 100 widgets and the contract is modified to delete 30 ofthem) one method of estimating the amount of the delete is
1 Develop a current estimate of the extended cost for the item(s) given the originalquantity
2 Develop a current estimate of the extended cost for the items at the lower(remaining) quantity
3 The delta between these two values represents the amount of the delete
bull The same method can be used if the contract is modified to increase aquantity for a part
46FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklist
47
bull The Supplier Proposal Adequacy Checklist is accessed from the externalPSEMC supplier website
bull Additional supplier proposal guidance and resources are available(information templates and tools to assist in building a FAR compliantproposal
bull Supplier proposal guidance
bull Supplier Proposal Adequacy Guidelines
bull PSEMC document templates
bull Supplier proposal adequacy checklistbull Contract pricing proposal cover sheet
httpspsemccomsuppliers
- Strategic Affordability Analysis
- Purpose of this Guideline
- Table of Contents
- Table of Contents
- Supplier Proposal Adequacy Checklist
- Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
- Cover Sheet
- Cover Sheet Example ndash Reference Form DI-SUP-105F02
- Index
- Index Example
- Cost Element Breakdown by Line Item
- Cost Element Breakdown by Line Item Example
- Summary Cost Element Breakdown
- Summary Cost Element Breakdown - Example
- Summary Cost Element Breakdown - Example
- Material
- Material
- Individual Bills of Material Example
- Consolidated Bill of Material Example
- Consolidated Bill of Material
- Material
- Material
- Material
- Labor
- Labor
- Labor
- Labor Hours Example
- Labor Hours Example ndash Actual Production History
- Labor Hours Examples ndash Basis of Estimate
- Other Direct Costs (ODC)
- Nonrecurring Expenses (NRE)
- NRE
- Rates
- Rates
- Summary
- Summary
- Other Types of Proposals
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals Cost of WorkDeleted for a Partial Deleted Quantity
- Supplier Proposal Adequacy Checklist
-
| Buyer (Type or Print Name) | Date |
| Offeror | |||
| By | |||
| Title | |||
| Date |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp | ||
| (iii) Total number of customers involved in such sales | enspenspenspenspensp |
| (a) Transfer price(s) of such goods | $ enspenspenspenspensp | ||
| (b) Total units of such goods and or | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| Unmodified Items Identified in Part 1 | Modified Items Proposed to PSMEC | Unit Value of Modification | |||||||
| Unmodified Item | Unmodified Price | Modified Item | Modified Price to PSEMC | ||||||
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| To the general public in the time-frame beginning | enspenspenspenspensp | enspenspenspenspensp | and ending | enspenspenspenspensp |
| (a) Sales | |||||
| (b) Leases | |||||
| (c) Licenses | |||||
| (d) Offers to Sell 1 | |||||
| (e) Offers to Lease 2 | |||||
| (f) Offers to License 3 |
| Part Number | |||
| Description | |||
| Offeror |
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summary Cost Element Breakdown - Example
14FAR 15408 Table 15-2 I E
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summary Cost Element Breakdown - Example
15
bull If the proposal is a base year plus option years there needs to be asummary Cost Element Breakdown for each of the years at the points in theRFP requiring Cost or Pricing data
FAR 15408 Table 15-2 I E
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Include a BOM for each individual part proposed A BOM is a list of the raw
materials subassemblies etc needed to manufacture a product
bull Provide your BOMs in Excel formatbull The consolidated and individual BOMs need to identify the following for each line
itembull Part Number and descriptionbull Supplierbull Quantitybull Unit Price ndash Unit pricing on the BOM should tie to the supportbull Total Pricebull Basis for pricing (vendor quotes purchase orders)
Source of pricing (purchase order quotes etc) must be referenced in the BOM
bull PSEMC will require copies of the support (ie quotes purchase orders) for asample of the items on the BOM during the cost analysis
16FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull If attritionyield or scrap are added to your material you will need to submit
adequate basis of estimates and support as appropriate
bull There are time when your BOM may be impacted by minimum buys or NREthat is passed along from your supplier If this happens make sure this isclearly identified on the BOM and the support quotes or purchase orders
bull In addition to the individual BOMs FAR requires a consolidated BOM inyour proposal A consolidated BOM is a listing of the material needed forthe proposal A consolidated BOM combines all the materials for each ofthe parts being procured as well as assemblies services or materialassociated with NRE
17FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Individual Bills of Material Example
18
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Consolidated Bill of Material Examplebull Below is an example of a consolidated BOM This BOM was developed by
taking the three individual BOMrsquos on the previous page and combining themtogetherbull In a consolidated BOM part numbers and quantities should be combined (or
subtotaled) if they are the same parts For example the BOMs for Part Nos ABCand ABB both require the same Connector and Screw In the consolidated BOMthe requirements have been combined and reflect the total number of Connectorsand Screws that will be needed for this proposal
19
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Consolidated Bill of Materialbull If the proposal is for a base year plus option years there needs to be a
consolidated BOM for each of the years at each of the points in the RFPrequiring cost or pricing
bull To determine if a subtier cost analysis is required you need to add togetherthe anticipated costs for each supplier for all years In the above examplethere are two suppliers that will require cost analysis (Ford and Motion)
20
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Supplier proposals
bull A cost analysis report is required if any of your suppliersrsquo proposals exceedthe Truth in Negotiations Act (TINA) threshold These need to be submittedwith your proposal
bull If the cost analysis for a supplier is not complete at the time of your proposalsubmittal a schedule listing the estimated completion dates for each supplierneeds to be provided in the proposal
bull If an exemption applies that eliminates the need for a cost analysis (commercial orcompetitively priced) documentation needs to be provided to support these claims
21FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull If you claim your supplier was competed and the value is over the TINA
threshold you will need to provide the following
bull Evidence that an RFP or solicitation to bid was sent to two or more supplierscapable of providing the goods or services requested
bull Copies of the quotes received from each of the suppliers who were competedbull Supplierrsquos analysis with basis of rationale for why the winning bid represents the best value
(lowest price technical considerations etc)
bull If you claim your supplierrsquos parts or services are commercial refer to thecommercial section in this document
22FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Refer to the detailed instructions in the RFP when your proposal supports a
base year plus options contract or a long term agreement Guidance shouldbe provided here on the consolidation and subtier requirements If youhave any questions regarding this contact your PSEMC Supply Chainrepresentative
bull Inter-organizational costs
bull Inter-organizational costs are defined as the costs of items transferred betweendivisions within the same company
bull If you have bid any inter-organizational costs in your proposal you will need toprovide a cost element breakdown for each inter-organizational transfer andsupport as appropriate
bull One more thing
bull If you have a supplier with a value in excess of $135 million or is greater than 10percent of your total proposal and exceeds the TINA threshold FAR 15408 Table15-2 requires that we submit the supplierrsquos proposal and cost or pricing data withour own proposal
23FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Provide a time-phased (eg monthly quarterly) breakdown of labor hours ratesand cost by appropriate category and furnish basis for estimates
24FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Proposed labor hours are generally a combination of direct and support laborhours
bull Direct Labor Hours ndash Hours that can be identified specifically to a final end itembull Support Labor Hours ndash Hours that cannot be specifically identified to one end item For
example a production manager may be in charge of overseeing the manufacturing ofmultiple parts
25FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull You need to provide a breakdown of the labor hours by labor category and
function along with a basis of estimate for the proposed labor hours
bull For example if you propose 500 hours for an end item you would need to providea breakdown by categoryfunction (assembly inspection supervisor engineeretc) You also will need to provide a detailed basis of estimate for eachcategoryfunction showing how your arrived at the hours for the proposed laborcategory
bull Generally the basis should be actual production history An alternative approach isthe use of engineering estimates if the item has not been manufactured before
bull Cost Accounting Standards (CAS) 401 requires that a company isconsistent between proposals and accounting practices The way acompany estimates its labor hours needs to also be the way it accumulatesits production history
26FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours ExampleProposal No HLQxxxxxDate January 1 20xx ABC Corporation
Labor HoursProposed Labor Hours ndash 8279 hrsunit for Part ABC
27
Direct Labor HrsUnitAssembly 3800 Machinist 350 QA 762 Engineer 1 238
Subtotal 5151
Production Support HrsUnitMfg Supervisor 920Eng Supervisor 368QA supervisor 920Production Mgr 920
Subtotal 3128
Total Hrs 8279
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Example ndash Actual Production History
28
ProposedDuration - Months 7 9 24 12 Qty 30 39 110 50 End Date 11152006 982007 912009
Direct Labor Total Hrs HrsUnit Total Hours HrsUnit Total Hrs HrsUnit Total Hrs HrsUnitAssembly 1836 6120 1675 4295 4338 3944 1900 3800 Machinist 169 564 154 396 400 363 175 350 QA 368 1238 336 862 870 791 381 762 Engineer 1 115 383 105 269 272 247 119 238
Production Support Total Hrs Total Hrs Total Hrs Total Hrs HrsUnitMFG Supervisor 268 345 920 460 920 Eng Supervisor 107 138 184 184 368 QA Supervisor 268 345 920 460 920 Production Mgr 268 345 920 460 920
HrsUnit 8279
Acutal Production History - Part ABC
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Examples ndash Basis of Estimatebull Basis of estimate for direct labor
bull Proposed direct labor hours were developed by apply a 90 percent learningcurve to the production labor history for part BBC You need to provide abasis for the 90 percent curve
bull Basis of estimate for the manufacturing supervisorbull The manufacturing supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 920 hours were used over a 24-month periodSince the current proposal has been estimated to cover 12 months 460hours were applied to the manufacturing supervisor (920 divided by 2)
bull Basis of estimate for engineering supervisorbull The engineering supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 184 hours were necessary to complete the taskThis task is similar and so we estimate 184 hours
29
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Direct Costs (ODC)bull List other expenses not otherwise included under material and labor (eg
travel freight) and provide basis for pricing
bull For example the basis for travel would include the location number of tripsnumber of people attending and the estimated expenses for the travel
30FAR 15408 Table 15-2 II D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Nonrecurring Expenses (NRE)bull NRE refers to one-time costs that you would not normally see from proposal
to proposal
bull Examples of NRE are as follows
bull Special Toolingbull New Equipmentbull Equipment Refurbishmentbull Hours and materials associated with increase throughput capacitybull Hours and materials to research develop design and test new processesbull One-Time review events
31FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
NREbull As mentioned earlier NRE charges must be broken out by cost element
This means the material and labor components associated with the NREare clearly broken out
bull Material ndash any material associated with NRE should be supported by supplierquotes or purchase orders
bull Labor ndash labor hours associated with NRE should have basis of estimates(BOE) that are broken down by labor category and include detaileddescriptions of the tasks that will be performed
32FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Rates include direct labor overhead general and administrative expenses
(GampA) and cost of money (COM)
bull PSEMC has the capability to perform rate audits on suppliers in lieu ofhaving the DCAA do this
bull If you allow PSEMC to perform this rate audit you need to provide thefollowing information
bull Explanation as to how the rates were calculatedbull Detailed documentation (financial statements labor pools listing of unallowable
expenses etc) that support the rate calculationsbull If the detailed documentation is based on budgetary numbers you will also need
to provide three years of your most current actuals to support you budgetarynumbers
bull If budgetary numbers differ significantly from the most recent actuals providedetailed explanations for these differences
33FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Facilities Capital COM
bull When you elect to claim COM submit a completed form CASB-CFM (FacilitiesCapital Cost of Money Factors Computation) in accordance with FAR 31205-10Also complete DD Form 1861 and include a copy in your proposal submissionBoth forms can be found on-line at various locations
34FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull In summary all noncompetitive noncommercial proposals valued at more
than the cost and pricing threshold (TINA) are required to include thefollowing information
35
Required Items Page FAR Reference
Supplier Proposal Adequacy Checklist Pg 5-6 PSEMC Policy
Cover Sheet - SF1411 or equivalent Pg 7-8 FAR 15408 Table 15-2 I A
Index Pg 9-10 FAR 15408 Table 15-2 I B
Cost Element Breakdown Pg 11-12 FAR 15408 Table 15-2 I D
Summary Cost Element Breakdown Pg 13-15 FAR 15408 Table 15-2 I E
Material (Including Consolidated BOM) Pg 16-23 FAR 15408 Table 15-2 II A
Labor Pg 24-29 FAR 15408 Table 15-2 II B
ODC Pg 30 FAR 15408 Table 15-2 II D
NRE Pg 31-32 FAR 15408 Table 15-2 II
Rates Pg 33-34 FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull Sufficient rationale and supporting documentation to support each of the
proposed cost elements is also required
bull Obtaining adequate supplier proposals is always on the critical path sincePSEMC cannot submit its proposal to the government until it has receivedadequate proposals from its subcontractors Therefore it is critical thatadequate supplier proposals are obtained as quickly as possible
36
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Types of Proposalsbull Commercial item proposals
bull Change proposals
bull The following slides are only applicable in certain situations
37
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you or one of your suppliers is providing a commercial part cost or pricing
data and a cost analysis is not required However you must demonstrate that the part is commercial and that the price is reasonable
bull A commercial item is any item other than real property that is a type customarily used by the general public or by a nongovernment entity
bull Has also been sold leased or licensed to the general public or has been offered for sale lease or license to the general public
bull A final commercial determination is made by the government contracting officer If the items is deemed to not be commercial the supplier is required to submit a complete proposal that includes cost and pricing data
38FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you claim one or more of your parts are commercial you need to support
your position by providing the following information
bull Copies of applicable portions of a company catalogue or website address that shows the item with a description and unit price
bull Show that these items can be purchased by the general public or nongovernmentalagency
bull If a website or catalogue is not available copies of invoices showing the sale of these items to nongovernment entities is sufficient
39FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull PSEMC policy requires suppliers to complete a PSEMC Supplier Proposal
Adequacy Checklist (sent with the RFP) for all proposals where the supplierclaims its parts are commercial
bull An example of the Supplier Proposal Adequacy Checklist for commercialitems is attached reference form DI-SUP-310F01
40PSEMC Policy
Pacific Scientific EMC ndash Commercial Item Status
If claiming an exemption offeror must provide the appropriate information to determine commerciality Refusal to provide the required information can result in an assist audit being requested from the Defense Contract Audit Agency or other cognizant Government Audit Agencies and or a determination that goods andor services offered do not constitute a ldquocommercial itemrdquo
Offeror hereby represents that to the best of its knowledge information and belief goods andor services offered constitute a ldquocommercial itemrdquo as defined by FAR 2101 because it constitutes
A Commercial Item or Component Justification (required for any claim)
Key Inquiries and Summary of your Supporting Information
What is the relevant ldquotyperdquo of item enspenspenspenspensp
What are the types of items uses by the general public or by non-governmental entities for other than governmental purposes enspenspenspenspensp
What indicates the type of itemrsquos use described above is customary enspenspenspenspensp
Has the offered item itself (as opposed to the type of item) been sold or offered for sale
|_| Yes|_| NO
Are the offered itemrsquos sales (or offers to sale) to the general public
|_| Yes|_| NO
Please provide data regarding sales leases or licenses of this item and identification of the non-government use entities
ValueNon-Government Use Entities
(date)(date)
In addition as an appendix to this commercial item determination provide supporting documentation in the form of
1that have not materialized into sales
2that have not materialized into leases
3that have not materialized into licenses
1 Verification of sales history to source documents
2 Identification of customarily offered discounts for the item
3 Verification of the item to an existing catalog or price list and
4 Verification of historical data for an item previously not determined commercial that the offeror is now trying to qualify as a commercial item
(check box(es) as appropriate)
|_| I Unmodified Commercial Items or Components (Complete Section A)
Any item other than real property that is a of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes and
(i) Has been sold leased or licensed to the general public or
(ii) Has been offered for sale lease or license to the general public
|_| II Item Evolved from Commercial Items or Components
Any item that evolved from an item described in Part I (which is required if claiming this exemption) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace but will be available in the commercial marketplace in time to satisfy the delivery requirements under a United States Government solicitation
If claiming the item Evolved from Commercial Items or Components exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use Part I)
|_| Yes|_| NO
If yes describe the relationship of the modifications to the Federal Government requirement enspenspenspenspensp
What are the advances in technology or performance between the offered item and the commercial item on which it is based enspenspenspenspensp
What is your support for such advances enspenspenspenspensp
What is your support for availability of the item in time to meet requirements Is the claim availability reasonable enspenspenspenspensp
Please provide data regarding
(a) Currently pending offers including
(b) Planned Offers Including
In all instances scheduled for delivery no later than the delivery requirements under the
(c) Data in the format of Part I for completed sales of the item from which the ldquocommercial itemrdquo evolved
|_| III Modified Commercial Items or Components
Any item that would satisfy a criterion expressed in Part I or II hereof but for -
|_| (i) Modifications of a type customarily available in the commercial marketplace
If claiming Modified Commercial Item or Components that are of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use part I or parts II and II)
|_| Yes|_| NO
What are the modifications that would be made to the commercial item enspenspenspenspensp
Are the modifications of a type customarily available in the commercial marketplace
|_| Yes|_| NO
Summarize your support for customary availability of the modification in the commercial marketplace enspenspenspenspensp
|_| (ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet federal government requirements ldquoMinor modificationsrdquo means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component or change the purpose of a process Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product Dollar values and percentages may be used as guideposts but are not conclusive evidence that a modification is minor
If claiming Modified Commercial Items or Components that are not of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Are the modifications made to satisfy Federal Government requirements
|_| Yes|_| NO
Do the modifications alter the nongovernmental function or essential physical characteristics of the item
|_| Yes|_| NO
If yes what are the alterations enspenspenspenspensp
Does the modified item retain a predominance of nongovernmental functions or physical characteristics
|_| Yes|_| NO
Summarize your support describing the value of the modifications in comparison to the value of the final product enspenspenspenspensp
Summarize your support for the magnitude or size of the modifications in relation to the magnitude or size of the final product enspenspenspenspensp
Are there any other factors which would allow you to conclude that the modifications are minor
|_| Yes|_| NO
If yes what are they enspenspenspenspensp
Based on the above does the modification qualify as a minor modification
|_| Yes|_| NO
Please provide data regarding the minor modification and the total price to PSEMC of Minor Modifications
Price to PSEMC of all Minor Modifications at quantities proposed in this pricing action enspenspenspenspensp
Minor modifications that exceed the thresholds in FAR 15403-1(c)(3)(iii)(B) are subject to the Certified Cost or Pricing Data requirements and must be proposed as described by FAR 15408 Table 152
|_| IV Commercial Items Support Services
Installation services maintenance services repair services training services and other services if -
(i) Such services are procured for support of an item referred to in Parts I II III or IV hereof regardless of whether such services are provided by the same source or at the same time as the item and
(ii) The source of such services provided similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government
If claiming Commercial Item Support Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services procured for the support of a commercial item which qualifies under a preceding part
|_| Yes|_| NO
Describe the nature of the services and how they support the commercial item enspenspenspenspensp
Are the services provided at the same time to the general public and the Federal Government
|_| Yes|_| NO
Are the terms and conditions for the services similar to those offered to the general public
|_| Yes|_| NO
Describe differences enspenspenspenspensp
Please provide data regarding
a Open and completed contracts including
b Pending offers including
|_| V Any Combination of Items
Meeting the requirements of Parts I II III or IV hereof that are of a type customarily combined and sold in combination to the general public
If you have checked the above box and are claiming the Any Combination of Items exemption please attach hereto information as requ3sted for Parts I II III and IV
|_| VI Other Commercial Services
Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions For purposes of these services -
(i) Catalog price means a price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor is either published or otherwise available for inspection by customers and states prices at which sales are currently or were last made to a significant number of buyers constituting the general public and
(ii) Market prices means current prices that are established in the course of ordinary trade between buyers and sellers free to bargain and that can be substantiated through competition or from source independent of the offerors
If claiming the Other Commercial Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services sold competitively in substantial quantities in the commercial marketplace
|_| Yes|_| NO
If no are the services of a type sold in substantial quantities in the commercial marketplace
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If yes what is the ldquotyperdquo of service enspenspenspenspensp
Summarize your support for same enspenspenspenspensp
Are the prices quoted for specific tasks performed or specific outcomes to be achieved
|_| Yes|_| NO
Are the services offered consistent with your standard terms and conditions
|_| Yes|_| NO
Are the services of a type sold at catalog or market prices
|_| Yes|_| NO
If sold at catalog price is the price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor
|_| Yes|_| NO
If sold at catalog price is the catalog or its equivalent either published or otherwise available for inspection by customers
|_| Yes|_| NO
Summarize your support for same (include a copy of the catalog or provide location) enspenspenspenspensp
If sold at a catalog price are the listed prices those at which sales are currently or were last made to a significant number of buyers in the general public
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If sold at a market price are the prices established in the course of ordinary trade between buyers and sellers free to bargain
|_| Yes|_| NO
Summarize you support for same enspenspenspenspensp
If sold at market price can the price be substantiated through competition or from sources independent of the offeror
|_| Yes|_| NO
Summarize your support for same
Please provide data regarding
(a) Open and completed contracts including
(b) Pending Offers including
|_| VII Any Item Combination of Items or Service
Referred to in Parts I through VI hereof notwithstanding the fact that the item combination of items or service is transferred between or among separate divisions subsidiaries or affiliates of the Offeror
If you have checked the above box and are claiming the ldquoAny item combination of items or Servicerdquo exemption please provide data regarding
|_| VIII Non-developmental Items
A non-developmental item as defined in FAR 2101 which has been developed exclusively at private expense and sold in substantial quantities on a competitive basis to multiple State and local governments
If claiming the Non-developmental Items exemption then the following must be provided
Key Inquiries and Summary of Supplierrsquos Supporting Information
Was the item previously developed
|_| Yes|_| NO
Was the item used exclusively for governmental purposes by a Federal agency a State or local government or a foreign government with which the United States has mutual defense cooperation agreement
|_| Yes|_| NO
If the item is to be modified do the modifications comply with Part III guidance on modifications
|_| Yes|_| NO
If the item is not yet in use does it otherwise qualify as a non-developmental item
|_| Yes|_| NO
Was the item developed exclusively at private expense
|_| Yes|_| NO
Is the item sold in substantial quantities on a competitive basis to multiple State and local governments
|_| Yes|_| NO
Please provide data regarding
|_| IX General Inquiries
Does the item qualify as a combination of items under Parts I II III and IV above
|_| Yes|_| NO
Has the item or services previously been determined to be commercial
|_| Yes|_| NO
If so by whom enspenspenspenspensp
|_| X Other Information
Is there other information of which you are aware that would supplement the information provided and would help substantiate whether the item or service is commercial
|_| Yes|_| NO
Have you provided such information
|_| Yes|_| NO
List such information enspenspenspenspensp
|_| XI Supplier Determination
Offeror hereby represents that the foregoing information is accurate and complete and that to the best of its knowledge information and belief goods and or services offered currently constitute ldquoa commercial itemrdquo as defined by FAR 2101
For PSEMC Internal Use Only
XII Supplier Determination
Supplier has claimed that the item component or service identified above is a commercial item under the definition at FAR 2101 I have reviewed and summarized the supplierrsquos support for that claim in the appropriate sections above Based on such review of such support information and any other information identified elsewhere herein I conclude that the supplier
|_| HAS |_| HAS NOT Supported its claim of commercial item status under the definition at FAR 2101
If the supplier HAS NOT supported its claim list reasons enspenspenspenspensp
Describe action plat to resolve enspenspenspenspensp
Comments enspenspenspenspensp
image1jpeg
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull This section of Table 15-2 describes the format an estimating approach we
are required to use when developing a proposal to modify an existingcontract In addition to the cost element breakdowns required as describedin the previous slides when there is a modification or change proposal FARalso requires the following table to be inserted into your proposal
41
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals
42FAR 15408 Table 15-2 III B
B Change Orders modifications and claims
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
Column 2 includes the cost of all work deleted This
includes cost of work deleted already performed (amount in Column 3) and
cost of work deleted not yet performed (Column 4)
Column 3 includes the cost of deleted work already
performed This amount will not be included in the credit (delete) adjustment amount (eg we will not give back costs already
incurred)
Column 4 includes cost for deleted work not yet performed ndash must be priced using current
estimates (but the current estimate may be the same as
the original estimate) ndash it is develed similar to a normal ldquoaddrdquo proposal with a few
exceptions
Column 5 includes the cost of the
new work and is developed as we do any
other proposal
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull Detail for columns listed on previous page
1 Enter appropriate cost element2 Enter current estimates of what it would take to complete the deleted work that
has not yet been performed3 Enter current cost of deleted work already performed This should be based on
actuals and copies to support these actuals should be included in the proposal4 Enter the net cost to be deleted (Column 2 minus Column 3)5 Enter your estimate for cost of work added by the change6 Enter the net cost of change (Column 5 minus Column 4)7 Identify where in your proposal the supporting documentation and basis of
estimate can be found for each of these sections
43FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull For purposes of determining if a proposal an cost or pricing data are
required from individual suppliers on a change proposal the absolute valueof the ldquodeleterdquo amount plus the ldquoaddrdquo amount is computed for each supplierthat exceeds the cost and pricing threshold (TINA)
bull Remember from FAR 15403-4(b) ndash if the absolute value for an individualsupplier exceeds the cost and pricing threshold (TINA) and the supplier iseither an actual supplier (will continue to provide partsservices on thiscontract) the supplier is required to provide a proposal and cost or pricingdata in support of the change proposal
bull Deleted amount is our current estimate (generally no the original contractvalue unless it is our current estimate)
44FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull If a supplierrsquos quantities are changing due to a modification the net delete
or add amount is used to determine if the supplier exceeds the cost andpricing threshold (TINA)
bull The estimator should not consider the old quantity as the delete and thenew quantity as the add (eg in computing absolute value) whendetermining if the supplier exceeds the threshold in cases where quantitiesare changing
bull The development of the appropriate deletion is not simply the estimatedcost of the deleted quantity ndash this will overstate the credit
45FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals Cost of WorkDeleted for a Partial Deleted Quantitybull In cases where part of a material quantity is being deleted (eg original
contract requires 100 widgets and the contract is modified to delete 30 ofthem) one method of estimating the amount of the delete is
1 Develop a current estimate of the extended cost for the item(s) given the originalquantity
2 Develop a current estimate of the extended cost for the items at the lower(remaining) quantity
3 The delta between these two values represents the amount of the delete
bull The same method can be used if the contract is modified to increase aquantity for a part
46FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklist
47
bull The Supplier Proposal Adequacy Checklist is accessed from the externalPSEMC supplier website
bull Additional supplier proposal guidance and resources are available(information templates and tools to assist in building a FAR compliantproposal
bull Supplier proposal guidance
bull Supplier Proposal Adequacy Guidelines
bull PSEMC document templates
bull Supplier proposal adequacy checklistbull Contract pricing proposal cover sheet
httpspsemccomsuppliers
- Strategic Affordability Analysis
- Purpose of this Guideline
- Table of Contents
- Table of Contents
- Supplier Proposal Adequacy Checklist
- Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
- Cover Sheet
- Cover Sheet Example ndash Reference Form DI-SUP-105F02
- Index
- Index Example
- Cost Element Breakdown by Line Item
- Cost Element Breakdown by Line Item Example
- Summary Cost Element Breakdown
- Summary Cost Element Breakdown - Example
- Summary Cost Element Breakdown - Example
- Material
- Material
- Individual Bills of Material Example
- Consolidated Bill of Material Example
- Consolidated Bill of Material
- Material
- Material
- Material
- Labor
- Labor
- Labor
- Labor Hours Example
- Labor Hours Example ndash Actual Production History
- Labor Hours Examples ndash Basis of Estimate
- Other Direct Costs (ODC)
- Nonrecurring Expenses (NRE)
- NRE
- Rates
- Rates
- Summary
- Summary
- Other Types of Proposals
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals Cost of WorkDeleted for a Partial Deleted Quantity
- Supplier Proposal Adequacy Checklist
-
| Buyer (Type or Print Name) | Date |
| Offeror | |||
| By | |||
| Title | |||
| Date |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp | ||
| (iii) Total number of customers involved in such sales | enspenspenspenspensp |
| (a) Transfer price(s) of such goods | $ enspenspenspenspensp | ||
| (b) Total units of such goods and or | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| Unmodified Items Identified in Part 1 | Modified Items Proposed to PSMEC | Unit Value of Modification | |||||||
| Unmodified Item | Unmodified Price | Modified Item | Modified Price to PSEMC | ||||||
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| To the general public in the time-frame beginning | enspenspenspenspensp | enspenspenspenspensp | and ending | enspenspenspenspensp |
| (a) Sales | |||||
| (b) Leases | |||||
| (c) Licenses | |||||
| (d) Offers to Sell 1 | |||||
| (e) Offers to Lease 2 | |||||
| (f) Offers to License 3 |
| Part Number | |||
| Description | |||
| Offeror |
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summary Cost Element Breakdown - Example
15
bull If the proposal is a base year plus option years there needs to be asummary Cost Element Breakdown for each of the years at the points in theRFP requiring Cost or Pricing data
FAR 15408 Table 15-2 I E
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Include a BOM for each individual part proposed A BOM is a list of the raw
materials subassemblies etc needed to manufacture a product
bull Provide your BOMs in Excel formatbull The consolidated and individual BOMs need to identify the following for each line
itembull Part Number and descriptionbull Supplierbull Quantitybull Unit Price ndash Unit pricing on the BOM should tie to the supportbull Total Pricebull Basis for pricing (vendor quotes purchase orders)
Source of pricing (purchase order quotes etc) must be referenced in the BOM
bull PSEMC will require copies of the support (ie quotes purchase orders) for asample of the items on the BOM during the cost analysis
16FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull If attritionyield or scrap are added to your material you will need to submit
adequate basis of estimates and support as appropriate
bull There are time when your BOM may be impacted by minimum buys or NREthat is passed along from your supplier If this happens make sure this isclearly identified on the BOM and the support quotes or purchase orders
bull In addition to the individual BOMs FAR requires a consolidated BOM inyour proposal A consolidated BOM is a listing of the material needed forthe proposal A consolidated BOM combines all the materials for each ofthe parts being procured as well as assemblies services or materialassociated with NRE
17FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Individual Bills of Material Example
18
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Consolidated Bill of Material Examplebull Below is an example of a consolidated BOM This BOM was developed by
taking the three individual BOMrsquos on the previous page and combining themtogetherbull In a consolidated BOM part numbers and quantities should be combined (or
subtotaled) if they are the same parts For example the BOMs for Part Nos ABCand ABB both require the same Connector and Screw In the consolidated BOMthe requirements have been combined and reflect the total number of Connectorsand Screws that will be needed for this proposal
19
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Consolidated Bill of Materialbull If the proposal is for a base year plus option years there needs to be a
consolidated BOM for each of the years at each of the points in the RFPrequiring cost or pricing
bull To determine if a subtier cost analysis is required you need to add togetherthe anticipated costs for each supplier for all years In the above examplethere are two suppliers that will require cost analysis (Ford and Motion)
20
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Supplier proposals
bull A cost analysis report is required if any of your suppliersrsquo proposals exceedthe Truth in Negotiations Act (TINA) threshold These need to be submittedwith your proposal
bull If the cost analysis for a supplier is not complete at the time of your proposalsubmittal a schedule listing the estimated completion dates for each supplierneeds to be provided in the proposal
bull If an exemption applies that eliminates the need for a cost analysis (commercial orcompetitively priced) documentation needs to be provided to support these claims
21FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull If you claim your supplier was competed and the value is over the TINA
threshold you will need to provide the following
bull Evidence that an RFP or solicitation to bid was sent to two or more supplierscapable of providing the goods or services requested
bull Copies of the quotes received from each of the suppliers who were competedbull Supplierrsquos analysis with basis of rationale for why the winning bid represents the best value
(lowest price technical considerations etc)
bull If you claim your supplierrsquos parts or services are commercial refer to thecommercial section in this document
22FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Refer to the detailed instructions in the RFP when your proposal supports a
base year plus options contract or a long term agreement Guidance shouldbe provided here on the consolidation and subtier requirements If youhave any questions regarding this contact your PSEMC Supply Chainrepresentative
bull Inter-organizational costs
bull Inter-organizational costs are defined as the costs of items transferred betweendivisions within the same company
bull If you have bid any inter-organizational costs in your proposal you will need toprovide a cost element breakdown for each inter-organizational transfer andsupport as appropriate
bull One more thing
bull If you have a supplier with a value in excess of $135 million or is greater than 10percent of your total proposal and exceeds the TINA threshold FAR 15408 Table15-2 requires that we submit the supplierrsquos proposal and cost or pricing data withour own proposal
23FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Provide a time-phased (eg monthly quarterly) breakdown of labor hours ratesand cost by appropriate category and furnish basis for estimates
24FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Proposed labor hours are generally a combination of direct and support laborhours
bull Direct Labor Hours ndash Hours that can be identified specifically to a final end itembull Support Labor Hours ndash Hours that cannot be specifically identified to one end item For
example a production manager may be in charge of overseeing the manufacturing ofmultiple parts
25FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull You need to provide a breakdown of the labor hours by labor category and
function along with a basis of estimate for the proposed labor hours
bull For example if you propose 500 hours for an end item you would need to providea breakdown by categoryfunction (assembly inspection supervisor engineeretc) You also will need to provide a detailed basis of estimate for eachcategoryfunction showing how your arrived at the hours for the proposed laborcategory
bull Generally the basis should be actual production history An alternative approach isthe use of engineering estimates if the item has not been manufactured before
bull Cost Accounting Standards (CAS) 401 requires that a company isconsistent between proposals and accounting practices The way acompany estimates its labor hours needs to also be the way it accumulatesits production history
26FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours ExampleProposal No HLQxxxxxDate January 1 20xx ABC Corporation
Labor HoursProposed Labor Hours ndash 8279 hrsunit for Part ABC
27
Direct Labor HrsUnitAssembly 3800 Machinist 350 QA 762 Engineer 1 238
Subtotal 5151
Production Support HrsUnitMfg Supervisor 920Eng Supervisor 368QA supervisor 920Production Mgr 920
Subtotal 3128
Total Hrs 8279
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Example ndash Actual Production History
28
ProposedDuration - Months 7 9 24 12 Qty 30 39 110 50 End Date 11152006 982007 912009
Direct Labor Total Hrs HrsUnit Total Hours HrsUnit Total Hrs HrsUnit Total Hrs HrsUnitAssembly 1836 6120 1675 4295 4338 3944 1900 3800 Machinist 169 564 154 396 400 363 175 350 QA 368 1238 336 862 870 791 381 762 Engineer 1 115 383 105 269 272 247 119 238
Production Support Total Hrs Total Hrs Total Hrs Total Hrs HrsUnitMFG Supervisor 268 345 920 460 920 Eng Supervisor 107 138 184 184 368 QA Supervisor 268 345 920 460 920 Production Mgr 268 345 920 460 920
HrsUnit 8279
Acutal Production History - Part ABC
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Examples ndash Basis of Estimatebull Basis of estimate for direct labor
bull Proposed direct labor hours were developed by apply a 90 percent learningcurve to the production labor history for part BBC You need to provide abasis for the 90 percent curve
bull Basis of estimate for the manufacturing supervisorbull The manufacturing supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 920 hours were used over a 24-month periodSince the current proposal has been estimated to cover 12 months 460hours were applied to the manufacturing supervisor (920 divided by 2)
bull Basis of estimate for engineering supervisorbull The engineering supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 184 hours were necessary to complete the taskThis task is similar and so we estimate 184 hours
29
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Direct Costs (ODC)bull List other expenses not otherwise included under material and labor (eg
travel freight) and provide basis for pricing
bull For example the basis for travel would include the location number of tripsnumber of people attending and the estimated expenses for the travel
30FAR 15408 Table 15-2 II D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Nonrecurring Expenses (NRE)bull NRE refers to one-time costs that you would not normally see from proposal
to proposal
bull Examples of NRE are as follows
bull Special Toolingbull New Equipmentbull Equipment Refurbishmentbull Hours and materials associated with increase throughput capacitybull Hours and materials to research develop design and test new processesbull One-Time review events
31FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
NREbull As mentioned earlier NRE charges must be broken out by cost element
This means the material and labor components associated with the NREare clearly broken out
bull Material ndash any material associated with NRE should be supported by supplierquotes or purchase orders
bull Labor ndash labor hours associated with NRE should have basis of estimates(BOE) that are broken down by labor category and include detaileddescriptions of the tasks that will be performed
32FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Rates include direct labor overhead general and administrative expenses
(GampA) and cost of money (COM)
bull PSEMC has the capability to perform rate audits on suppliers in lieu ofhaving the DCAA do this
bull If you allow PSEMC to perform this rate audit you need to provide thefollowing information
bull Explanation as to how the rates were calculatedbull Detailed documentation (financial statements labor pools listing of unallowable
expenses etc) that support the rate calculationsbull If the detailed documentation is based on budgetary numbers you will also need
to provide three years of your most current actuals to support you budgetarynumbers
bull If budgetary numbers differ significantly from the most recent actuals providedetailed explanations for these differences
33FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Facilities Capital COM
bull When you elect to claim COM submit a completed form CASB-CFM (FacilitiesCapital Cost of Money Factors Computation) in accordance with FAR 31205-10Also complete DD Form 1861 and include a copy in your proposal submissionBoth forms can be found on-line at various locations
34FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull In summary all noncompetitive noncommercial proposals valued at more
than the cost and pricing threshold (TINA) are required to include thefollowing information
35
Required Items Page FAR Reference
Supplier Proposal Adequacy Checklist Pg 5-6 PSEMC Policy
Cover Sheet - SF1411 or equivalent Pg 7-8 FAR 15408 Table 15-2 I A
Index Pg 9-10 FAR 15408 Table 15-2 I B
Cost Element Breakdown Pg 11-12 FAR 15408 Table 15-2 I D
Summary Cost Element Breakdown Pg 13-15 FAR 15408 Table 15-2 I E
Material (Including Consolidated BOM) Pg 16-23 FAR 15408 Table 15-2 II A
Labor Pg 24-29 FAR 15408 Table 15-2 II B
ODC Pg 30 FAR 15408 Table 15-2 II D
NRE Pg 31-32 FAR 15408 Table 15-2 II
Rates Pg 33-34 FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull Sufficient rationale and supporting documentation to support each of the
proposed cost elements is also required
bull Obtaining adequate supplier proposals is always on the critical path sincePSEMC cannot submit its proposal to the government until it has receivedadequate proposals from its subcontractors Therefore it is critical thatadequate supplier proposals are obtained as quickly as possible
36
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Types of Proposalsbull Commercial item proposals
bull Change proposals
bull The following slides are only applicable in certain situations
37
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you or one of your suppliers is providing a commercial part cost or pricing
data and a cost analysis is not required However you must demonstrate that the part is commercial and that the price is reasonable
bull A commercial item is any item other than real property that is a type customarily used by the general public or by a nongovernment entity
bull Has also been sold leased or licensed to the general public or has been offered for sale lease or license to the general public
bull A final commercial determination is made by the government contracting officer If the items is deemed to not be commercial the supplier is required to submit a complete proposal that includes cost and pricing data
38FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you claim one or more of your parts are commercial you need to support
your position by providing the following information
bull Copies of applicable portions of a company catalogue or website address that shows the item with a description and unit price
bull Show that these items can be purchased by the general public or nongovernmentalagency
bull If a website or catalogue is not available copies of invoices showing the sale of these items to nongovernment entities is sufficient
39FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull PSEMC policy requires suppliers to complete a PSEMC Supplier Proposal
Adequacy Checklist (sent with the RFP) for all proposals where the supplierclaims its parts are commercial
bull An example of the Supplier Proposal Adequacy Checklist for commercialitems is attached reference form DI-SUP-310F01
40PSEMC Policy
Pacific Scientific EMC ndash Commercial Item Status
If claiming an exemption offeror must provide the appropriate information to determine commerciality Refusal to provide the required information can result in an assist audit being requested from the Defense Contract Audit Agency or other cognizant Government Audit Agencies and or a determination that goods andor services offered do not constitute a ldquocommercial itemrdquo
Offeror hereby represents that to the best of its knowledge information and belief goods andor services offered constitute a ldquocommercial itemrdquo as defined by FAR 2101 because it constitutes
A Commercial Item or Component Justification (required for any claim)
Key Inquiries and Summary of your Supporting Information
What is the relevant ldquotyperdquo of item enspenspenspenspensp
What are the types of items uses by the general public or by non-governmental entities for other than governmental purposes enspenspenspenspensp
What indicates the type of itemrsquos use described above is customary enspenspenspenspensp
Has the offered item itself (as opposed to the type of item) been sold or offered for sale
|_| Yes|_| NO
Are the offered itemrsquos sales (or offers to sale) to the general public
|_| Yes|_| NO
Please provide data regarding sales leases or licenses of this item and identification of the non-government use entities
ValueNon-Government Use Entities
(date)(date)
In addition as an appendix to this commercial item determination provide supporting documentation in the form of
1that have not materialized into sales
2that have not materialized into leases
3that have not materialized into licenses
1 Verification of sales history to source documents
2 Identification of customarily offered discounts for the item
3 Verification of the item to an existing catalog or price list and
4 Verification of historical data for an item previously not determined commercial that the offeror is now trying to qualify as a commercial item
(check box(es) as appropriate)
|_| I Unmodified Commercial Items or Components (Complete Section A)
Any item other than real property that is a of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes and
(i) Has been sold leased or licensed to the general public or
(ii) Has been offered for sale lease or license to the general public
|_| II Item Evolved from Commercial Items or Components
Any item that evolved from an item described in Part I (which is required if claiming this exemption) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace but will be available in the commercial marketplace in time to satisfy the delivery requirements under a United States Government solicitation
If claiming the item Evolved from Commercial Items or Components exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use Part I)
|_| Yes|_| NO
If yes describe the relationship of the modifications to the Federal Government requirement enspenspenspenspensp
What are the advances in technology or performance between the offered item and the commercial item on which it is based enspenspenspenspensp
What is your support for such advances enspenspenspenspensp
What is your support for availability of the item in time to meet requirements Is the claim availability reasonable enspenspenspenspensp
Please provide data regarding
(a) Currently pending offers including
(b) Planned Offers Including
In all instances scheduled for delivery no later than the delivery requirements under the
(c) Data in the format of Part I for completed sales of the item from which the ldquocommercial itemrdquo evolved
|_| III Modified Commercial Items or Components
Any item that would satisfy a criterion expressed in Part I or II hereof but for -
|_| (i) Modifications of a type customarily available in the commercial marketplace
If claiming Modified Commercial Item or Components that are of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use part I or parts II and II)
|_| Yes|_| NO
What are the modifications that would be made to the commercial item enspenspenspenspensp
Are the modifications of a type customarily available in the commercial marketplace
|_| Yes|_| NO
Summarize your support for customary availability of the modification in the commercial marketplace enspenspenspenspensp
|_| (ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet federal government requirements ldquoMinor modificationsrdquo means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component or change the purpose of a process Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product Dollar values and percentages may be used as guideposts but are not conclusive evidence that a modification is minor
If claiming Modified Commercial Items or Components that are not of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Are the modifications made to satisfy Federal Government requirements
|_| Yes|_| NO
Do the modifications alter the nongovernmental function or essential physical characteristics of the item
|_| Yes|_| NO
If yes what are the alterations enspenspenspenspensp
Does the modified item retain a predominance of nongovernmental functions or physical characteristics
|_| Yes|_| NO
Summarize your support describing the value of the modifications in comparison to the value of the final product enspenspenspenspensp
Summarize your support for the magnitude or size of the modifications in relation to the magnitude or size of the final product enspenspenspenspensp
Are there any other factors which would allow you to conclude that the modifications are minor
|_| Yes|_| NO
If yes what are they enspenspenspenspensp
Based on the above does the modification qualify as a minor modification
|_| Yes|_| NO
Please provide data regarding the minor modification and the total price to PSEMC of Minor Modifications
Price to PSEMC of all Minor Modifications at quantities proposed in this pricing action enspenspenspenspensp
Minor modifications that exceed the thresholds in FAR 15403-1(c)(3)(iii)(B) are subject to the Certified Cost or Pricing Data requirements and must be proposed as described by FAR 15408 Table 152
|_| IV Commercial Items Support Services
Installation services maintenance services repair services training services and other services if -
(i) Such services are procured for support of an item referred to in Parts I II III or IV hereof regardless of whether such services are provided by the same source or at the same time as the item and
(ii) The source of such services provided similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government
If claiming Commercial Item Support Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services procured for the support of a commercial item which qualifies under a preceding part
|_| Yes|_| NO
Describe the nature of the services and how they support the commercial item enspenspenspenspensp
Are the services provided at the same time to the general public and the Federal Government
|_| Yes|_| NO
Are the terms and conditions for the services similar to those offered to the general public
|_| Yes|_| NO
Describe differences enspenspenspenspensp
Please provide data regarding
a Open and completed contracts including
b Pending offers including
|_| V Any Combination of Items
Meeting the requirements of Parts I II III or IV hereof that are of a type customarily combined and sold in combination to the general public
If you have checked the above box and are claiming the Any Combination of Items exemption please attach hereto information as requ3sted for Parts I II III and IV
|_| VI Other Commercial Services
Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions For purposes of these services -
(i) Catalog price means a price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor is either published or otherwise available for inspection by customers and states prices at which sales are currently or were last made to a significant number of buyers constituting the general public and
(ii) Market prices means current prices that are established in the course of ordinary trade between buyers and sellers free to bargain and that can be substantiated through competition or from source independent of the offerors
If claiming the Other Commercial Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services sold competitively in substantial quantities in the commercial marketplace
|_| Yes|_| NO
If no are the services of a type sold in substantial quantities in the commercial marketplace
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If yes what is the ldquotyperdquo of service enspenspenspenspensp
Summarize your support for same enspenspenspenspensp
Are the prices quoted for specific tasks performed or specific outcomes to be achieved
|_| Yes|_| NO
Are the services offered consistent with your standard terms and conditions
|_| Yes|_| NO
Are the services of a type sold at catalog or market prices
|_| Yes|_| NO
If sold at catalog price is the price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor
|_| Yes|_| NO
If sold at catalog price is the catalog or its equivalent either published or otherwise available for inspection by customers
|_| Yes|_| NO
Summarize your support for same (include a copy of the catalog or provide location) enspenspenspenspensp
If sold at a catalog price are the listed prices those at which sales are currently or were last made to a significant number of buyers in the general public
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If sold at a market price are the prices established in the course of ordinary trade between buyers and sellers free to bargain
|_| Yes|_| NO
Summarize you support for same enspenspenspenspensp
If sold at market price can the price be substantiated through competition or from sources independent of the offeror
|_| Yes|_| NO
Summarize your support for same
Please provide data regarding
(a) Open and completed contracts including
(b) Pending Offers including
|_| VII Any Item Combination of Items or Service
Referred to in Parts I through VI hereof notwithstanding the fact that the item combination of items or service is transferred between or among separate divisions subsidiaries or affiliates of the Offeror
If you have checked the above box and are claiming the ldquoAny item combination of items or Servicerdquo exemption please provide data regarding
|_| VIII Non-developmental Items
A non-developmental item as defined in FAR 2101 which has been developed exclusively at private expense and sold in substantial quantities on a competitive basis to multiple State and local governments
If claiming the Non-developmental Items exemption then the following must be provided
Key Inquiries and Summary of Supplierrsquos Supporting Information
Was the item previously developed
|_| Yes|_| NO
Was the item used exclusively for governmental purposes by a Federal agency a State or local government or a foreign government with which the United States has mutual defense cooperation agreement
|_| Yes|_| NO
If the item is to be modified do the modifications comply with Part III guidance on modifications
|_| Yes|_| NO
If the item is not yet in use does it otherwise qualify as a non-developmental item
|_| Yes|_| NO
Was the item developed exclusively at private expense
|_| Yes|_| NO
Is the item sold in substantial quantities on a competitive basis to multiple State and local governments
|_| Yes|_| NO
Please provide data regarding
|_| IX General Inquiries
Does the item qualify as a combination of items under Parts I II III and IV above
|_| Yes|_| NO
Has the item or services previously been determined to be commercial
|_| Yes|_| NO
If so by whom enspenspenspenspensp
|_| X Other Information
Is there other information of which you are aware that would supplement the information provided and would help substantiate whether the item or service is commercial
|_| Yes|_| NO
Have you provided such information
|_| Yes|_| NO
List such information enspenspenspenspensp
|_| XI Supplier Determination
Offeror hereby represents that the foregoing information is accurate and complete and that to the best of its knowledge information and belief goods and or services offered currently constitute ldquoa commercial itemrdquo as defined by FAR 2101
For PSEMC Internal Use Only
XII Supplier Determination
Supplier has claimed that the item component or service identified above is a commercial item under the definition at FAR 2101 I have reviewed and summarized the supplierrsquos support for that claim in the appropriate sections above Based on such review of such support information and any other information identified elsewhere herein I conclude that the supplier
|_| HAS |_| HAS NOT Supported its claim of commercial item status under the definition at FAR 2101
If the supplier HAS NOT supported its claim list reasons enspenspenspenspensp
Describe action plat to resolve enspenspenspenspensp
Comments enspenspenspenspensp
image1jpeg
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull This section of Table 15-2 describes the format an estimating approach we
are required to use when developing a proposal to modify an existingcontract In addition to the cost element breakdowns required as describedin the previous slides when there is a modification or change proposal FARalso requires the following table to be inserted into your proposal
41
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals
42FAR 15408 Table 15-2 III B
B Change Orders modifications and claims
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
Column 2 includes the cost of all work deleted This
includes cost of work deleted already performed (amount in Column 3) and
cost of work deleted not yet performed (Column 4)
Column 3 includes the cost of deleted work already
performed This amount will not be included in the credit (delete) adjustment amount (eg we will not give back costs already
incurred)
Column 4 includes cost for deleted work not yet performed ndash must be priced using current
estimates (but the current estimate may be the same as
the original estimate) ndash it is develed similar to a normal ldquoaddrdquo proposal with a few
exceptions
Column 5 includes the cost of the
new work and is developed as we do any
other proposal
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull Detail for columns listed on previous page
1 Enter appropriate cost element2 Enter current estimates of what it would take to complete the deleted work that
has not yet been performed3 Enter current cost of deleted work already performed This should be based on
actuals and copies to support these actuals should be included in the proposal4 Enter the net cost to be deleted (Column 2 minus Column 3)5 Enter your estimate for cost of work added by the change6 Enter the net cost of change (Column 5 minus Column 4)7 Identify where in your proposal the supporting documentation and basis of
estimate can be found for each of these sections
43FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull For purposes of determining if a proposal an cost or pricing data are
required from individual suppliers on a change proposal the absolute valueof the ldquodeleterdquo amount plus the ldquoaddrdquo amount is computed for each supplierthat exceeds the cost and pricing threshold (TINA)
bull Remember from FAR 15403-4(b) ndash if the absolute value for an individualsupplier exceeds the cost and pricing threshold (TINA) and the supplier iseither an actual supplier (will continue to provide partsservices on thiscontract) the supplier is required to provide a proposal and cost or pricingdata in support of the change proposal
bull Deleted amount is our current estimate (generally no the original contractvalue unless it is our current estimate)
44FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull If a supplierrsquos quantities are changing due to a modification the net delete
or add amount is used to determine if the supplier exceeds the cost andpricing threshold (TINA)
bull The estimator should not consider the old quantity as the delete and thenew quantity as the add (eg in computing absolute value) whendetermining if the supplier exceeds the threshold in cases where quantitiesare changing
bull The development of the appropriate deletion is not simply the estimatedcost of the deleted quantity ndash this will overstate the credit
45FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals Cost of WorkDeleted for a Partial Deleted Quantitybull In cases where part of a material quantity is being deleted (eg original
contract requires 100 widgets and the contract is modified to delete 30 ofthem) one method of estimating the amount of the delete is
1 Develop a current estimate of the extended cost for the item(s) given the originalquantity
2 Develop a current estimate of the extended cost for the items at the lower(remaining) quantity
3 The delta between these two values represents the amount of the delete
bull The same method can be used if the contract is modified to increase aquantity for a part
46FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklist
47
bull The Supplier Proposal Adequacy Checklist is accessed from the externalPSEMC supplier website
bull Additional supplier proposal guidance and resources are available(information templates and tools to assist in building a FAR compliantproposal
bull Supplier proposal guidance
bull Supplier Proposal Adequacy Guidelines
bull PSEMC document templates
bull Supplier proposal adequacy checklistbull Contract pricing proposal cover sheet
httpspsemccomsuppliers
- Strategic Affordability Analysis
- Purpose of this Guideline
- Table of Contents
- Table of Contents
- Supplier Proposal Adequacy Checklist
- Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
- Cover Sheet
- Cover Sheet Example ndash Reference Form DI-SUP-105F02
- Index
- Index Example
- Cost Element Breakdown by Line Item
- Cost Element Breakdown by Line Item Example
- Summary Cost Element Breakdown
- Summary Cost Element Breakdown - Example
- Summary Cost Element Breakdown - Example
- Material
- Material
- Individual Bills of Material Example
- Consolidated Bill of Material Example
- Consolidated Bill of Material
- Material
- Material
- Material
- Labor
- Labor
- Labor
- Labor Hours Example
- Labor Hours Example ndash Actual Production History
- Labor Hours Examples ndash Basis of Estimate
- Other Direct Costs (ODC)
- Nonrecurring Expenses (NRE)
- NRE
- Rates
- Rates
- Summary
- Summary
- Other Types of Proposals
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals Cost of WorkDeleted for a Partial Deleted Quantity
- Supplier Proposal Adequacy Checklist
-
| Buyer (Type or Print Name) | Date |
| Offeror | |||
| By | |||
| Title | |||
| Date |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp | ||
| (iii) Total number of customers involved in such sales | enspenspenspenspensp |
| (a) Transfer price(s) of such goods | $ enspenspenspenspensp | ||
| (b) Total units of such goods and or | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| Unmodified Items Identified in Part 1 | Modified Items Proposed to PSMEC | Unit Value of Modification | |||||||
| Unmodified Item | Unmodified Price | Modified Item | Modified Price to PSEMC | ||||||
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| To the general public in the time-frame beginning | enspenspenspenspensp | enspenspenspenspensp | and ending | enspenspenspenspensp |
| (a) Sales | |||||
| (b) Leases | |||||
| (c) Licenses | |||||
| (d) Offers to Sell 1 | |||||
| (e) Offers to Lease 2 | |||||
| (f) Offers to License 3 |
| Part Number | |||
| Description | |||
| Offeror |
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Include a BOM for each individual part proposed A BOM is a list of the raw
materials subassemblies etc needed to manufacture a product
bull Provide your BOMs in Excel formatbull The consolidated and individual BOMs need to identify the following for each line
itembull Part Number and descriptionbull Supplierbull Quantitybull Unit Price ndash Unit pricing on the BOM should tie to the supportbull Total Pricebull Basis for pricing (vendor quotes purchase orders)
Source of pricing (purchase order quotes etc) must be referenced in the BOM
bull PSEMC will require copies of the support (ie quotes purchase orders) for asample of the items on the BOM during the cost analysis
16FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull If attritionyield or scrap are added to your material you will need to submit
adequate basis of estimates and support as appropriate
bull There are time when your BOM may be impacted by minimum buys or NREthat is passed along from your supplier If this happens make sure this isclearly identified on the BOM and the support quotes or purchase orders
bull In addition to the individual BOMs FAR requires a consolidated BOM inyour proposal A consolidated BOM is a listing of the material needed forthe proposal A consolidated BOM combines all the materials for each ofthe parts being procured as well as assemblies services or materialassociated with NRE
17FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Individual Bills of Material Example
18
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Consolidated Bill of Material Examplebull Below is an example of a consolidated BOM This BOM was developed by
taking the three individual BOMrsquos on the previous page and combining themtogetherbull In a consolidated BOM part numbers and quantities should be combined (or
subtotaled) if they are the same parts For example the BOMs for Part Nos ABCand ABB both require the same Connector and Screw In the consolidated BOMthe requirements have been combined and reflect the total number of Connectorsand Screws that will be needed for this proposal
19
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Consolidated Bill of Materialbull If the proposal is for a base year plus option years there needs to be a
consolidated BOM for each of the years at each of the points in the RFPrequiring cost or pricing
bull To determine if a subtier cost analysis is required you need to add togetherthe anticipated costs for each supplier for all years In the above examplethere are two suppliers that will require cost analysis (Ford and Motion)
20
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Supplier proposals
bull A cost analysis report is required if any of your suppliersrsquo proposals exceedthe Truth in Negotiations Act (TINA) threshold These need to be submittedwith your proposal
bull If the cost analysis for a supplier is not complete at the time of your proposalsubmittal a schedule listing the estimated completion dates for each supplierneeds to be provided in the proposal
bull If an exemption applies that eliminates the need for a cost analysis (commercial orcompetitively priced) documentation needs to be provided to support these claims
21FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull If you claim your supplier was competed and the value is over the TINA
threshold you will need to provide the following
bull Evidence that an RFP or solicitation to bid was sent to two or more supplierscapable of providing the goods or services requested
bull Copies of the quotes received from each of the suppliers who were competedbull Supplierrsquos analysis with basis of rationale for why the winning bid represents the best value
(lowest price technical considerations etc)
bull If you claim your supplierrsquos parts or services are commercial refer to thecommercial section in this document
22FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Refer to the detailed instructions in the RFP when your proposal supports a
base year plus options contract or a long term agreement Guidance shouldbe provided here on the consolidation and subtier requirements If youhave any questions regarding this contact your PSEMC Supply Chainrepresentative
bull Inter-organizational costs
bull Inter-organizational costs are defined as the costs of items transferred betweendivisions within the same company
bull If you have bid any inter-organizational costs in your proposal you will need toprovide a cost element breakdown for each inter-organizational transfer andsupport as appropriate
bull One more thing
bull If you have a supplier with a value in excess of $135 million or is greater than 10percent of your total proposal and exceeds the TINA threshold FAR 15408 Table15-2 requires that we submit the supplierrsquos proposal and cost or pricing data withour own proposal
23FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Provide a time-phased (eg monthly quarterly) breakdown of labor hours ratesand cost by appropriate category and furnish basis for estimates
24FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Proposed labor hours are generally a combination of direct and support laborhours
bull Direct Labor Hours ndash Hours that can be identified specifically to a final end itembull Support Labor Hours ndash Hours that cannot be specifically identified to one end item For
example a production manager may be in charge of overseeing the manufacturing ofmultiple parts
25FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull You need to provide a breakdown of the labor hours by labor category and
function along with a basis of estimate for the proposed labor hours
bull For example if you propose 500 hours for an end item you would need to providea breakdown by categoryfunction (assembly inspection supervisor engineeretc) You also will need to provide a detailed basis of estimate for eachcategoryfunction showing how your arrived at the hours for the proposed laborcategory
bull Generally the basis should be actual production history An alternative approach isthe use of engineering estimates if the item has not been manufactured before
bull Cost Accounting Standards (CAS) 401 requires that a company isconsistent between proposals and accounting practices The way acompany estimates its labor hours needs to also be the way it accumulatesits production history
26FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours ExampleProposal No HLQxxxxxDate January 1 20xx ABC Corporation
Labor HoursProposed Labor Hours ndash 8279 hrsunit for Part ABC
27
Direct Labor HrsUnitAssembly 3800 Machinist 350 QA 762 Engineer 1 238
Subtotal 5151
Production Support HrsUnitMfg Supervisor 920Eng Supervisor 368QA supervisor 920Production Mgr 920
Subtotal 3128
Total Hrs 8279
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Example ndash Actual Production History
28
ProposedDuration - Months 7 9 24 12 Qty 30 39 110 50 End Date 11152006 982007 912009
Direct Labor Total Hrs HrsUnit Total Hours HrsUnit Total Hrs HrsUnit Total Hrs HrsUnitAssembly 1836 6120 1675 4295 4338 3944 1900 3800 Machinist 169 564 154 396 400 363 175 350 QA 368 1238 336 862 870 791 381 762 Engineer 1 115 383 105 269 272 247 119 238
Production Support Total Hrs Total Hrs Total Hrs Total Hrs HrsUnitMFG Supervisor 268 345 920 460 920 Eng Supervisor 107 138 184 184 368 QA Supervisor 268 345 920 460 920 Production Mgr 268 345 920 460 920
HrsUnit 8279
Acutal Production History - Part ABC
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Examples ndash Basis of Estimatebull Basis of estimate for direct labor
bull Proposed direct labor hours were developed by apply a 90 percent learningcurve to the production labor history for part BBC You need to provide abasis for the 90 percent curve
bull Basis of estimate for the manufacturing supervisorbull The manufacturing supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 920 hours were used over a 24-month periodSince the current proposal has been estimated to cover 12 months 460hours were applied to the manufacturing supervisor (920 divided by 2)
bull Basis of estimate for engineering supervisorbull The engineering supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 184 hours were necessary to complete the taskThis task is similar and so we estimate 184 hours
29
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Direct Costs (ODC)bull List other expenses not otherwise included under material and labor (eg
travel freight) and provide basis for pricing
bull For example the basis for travel would include the location number of tripsnumber of people attending and the estimated expenses for the travel
30FAR 15408 Table 15-2 II D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Nonrecurring Expenses (NRE)bull NRE refers to one-time costs that you would not normally see from proposal
to proposal
bull Examples of NRE are as follows
bull Special Toolingbull New Equipmentbull Equipment Refurbishmentbull Hours and materials associated with increase throughput capacitybull Hours and materials to research develop design and test new processesbull One-Time review events
31FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
NREbull As mentioned earlier NRE charges must be broken out by cost element
This means the material and labor components associated with the NREare clearly broken out
bull Material ndash any material associated with NRE should be supported by supplierquotes or purchase orders
bull Labor ndash labor hours associated with NRE should have basis of estimates(BOE) that are broken down by labor category and include detaileddescriptions of the tasks that will be performed
32FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Rates include direct labor overhead general and administrative expenses
(GampA) and cost of money (COM)
bull PSEMC has the capability to perform rate audits on suppliers in lieu ofhaving the DCAA do this
bull If you allow PSEMC to perform this rate audit you need to provide thefollowing information
bull Explanation as to how the rates were calculatedbull Detailed documentation (financial statements labor pools listing of unallowable
expenses etc) that support the rate calculationsbull If the detailed documentation is based on budgetary numbers you will also need
to provide three years of your most current actuals to support you budgetarynumbers
bull If budgetary numbers differ significantly from the most recent actuals providedetailed explanations for these differences
33FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Facilities Capital COM
bull When you elect to claim COM submit a completed form CASB-CFM (FacilitiesCapital Cost of Money Factors Computation) in accordance with FAR 31205-10Also complete DD Form 1861 and include a copy in your proposal submissionBoth forms can be found on-line at various locations
34FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull In summary all noncompetitive noncommercial proposals valued at more
than the cost and pricing threshold (TINA) are required to include thefollowing information
35
Required Items Page FAR Reference
Supplier Proposal Adequacy Checklist Pg 5-6 PSEMC Policy
Cover Sheet - SF1411 or equivalent Pg 7-8 FAR 15408 Table 15-2 I A
Index Pg 9-10 FAR 15408 Table 15-2 I B
Cost Element Breakdown Pg 11-12 FAR 15408 Table 15-2 I D
Summary Cost Element Breakdown Pg 13-15 FAR 15408 Table 15-2 I E
Material (Including Consolidated BOM) Pg 16-23 FAR 15408 Table 15-2 II A
Labor Pg 24-29 FAR 15408 Table 15-2 II B
ODC Pg 30 FAR 15408 Table 15-2 II D
NRE Pg 31-32 FAR 15408 Table 15-2 II
Rates Pg 33-34 FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull Sufficient rationale and supporting documentation to support each of the
proposed cost elements is also required
bull Obtaining adequate supplier proposals is always on the critical path sincePSEMC cannot submit its proposal to the government until it has receivedadequate proposals from its subcontractors Therefore it is critical thatadequate supplier proposals are obtained as quickly as possible
36
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Types of Proposalsbull Commercial item proposals
bull Change proposals
bull The following slides are only applicable in certain situations
37
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you or one of your suppliers is providing a commercial part cost or pricing
data and a cost analysis is not required However you must demonstrate that the part is commercial and that the price is reasonable
bull A commercial item is any item other than real property that is a type customarily used by the general public or by a nongovernment entity
bull Has also been sold leased or licensed to the general public or has been offered for sale lease or license to the general public
bull A final commercial determination is made by the government contracting officer If the items is deemed to not be commercial the supplier is required to submit a complete proposal that includes cost and pricing data
38FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you claim one or more of your parts are commercial you need to support
your position by providing the following information
bull Copies of applicable portions of a company catalogue or website address that shows the item with a description and unit price
bull Show that these items can be purchased by the general public or nongovernmentalagency
bull If a website or catalogue is not available copies of invoices showing the sale of these items to nongovernment entities is sufficient
39FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull PSEMC policy requires suppliers to complete a PSEMC Supplier Proposal
Adequacy Checklist (sent with the RFP) for all proposals where the supplierclaims its parts are commercial
bull An example of the Supplier Proposal Adequacy Checklist for commercialitems is attached reference form DI-SUP-310F01
40PSEMC Policy
Pacific Scientific EMC ndash Commercial Item Status
If claiming an exemption offeror must provide the appropriate information to determine commerciality Refusal to provide the required information can result in an assist audit being requested from the Defense Contract Audit Agency or other cognizant Government Audit Agencies and or a determination that goods andor services offered do not constitute a ldquocommercial itemrdquo
Offeror hereby represents that to the best of its knowledge information and belief goods andor services offered constitute a ldquocommercial itemrdquo as defined by FAR 2101 because it constitutes
A Commercial Item or Component Justification (required for any claim)
Key Inquiries and Summary of your Supporting Information
What is the relevant ldquotyperdquo of item enspenspenspenspensp
What are the types of items uses by the general public or by non-governmental entities for other than governmental purposes enspenspenspenspensp
What indicates the type of itemrsquos use described above is customary enspenspenspenspensp
Has the offered item itself (as opposed to the type of item) been sold or offered for sale
|_| Yes|_| NO
Are the offered itemrsquos sales (or offers to sale) to the general public
|_| Yes|_| NO
Please provide data regarding sales leases or licenses of this item and identification of the non-government use entities
ValueNon-Government Use Entities
(date)(date)
In addition as an appendix to this commercial item determination provide supporting documentation in the form of
1that have not materialized into sales
2that have not materialized into leases
3that have not materialized into licenses
1 Verification of sales history to source documents
2 Identification of customarily offered discounts for the item
3 Verification of the item to an existing catalog or price list and
4 Verification of historical data for an item previously not determined commercial that the offeror is now trying to qualify as a commercial item
(check box(es) as appropriate)
|_| I Unmodified Commercial Items or Components (Complete Section A)
Any item other than real property that is a of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes and
(i) Has been sold leased or licensed to the general public or
(ii) Has been offered for sale lease or license to the general public
|_| II Item Evolved from Commercial Items or Components
Any item that evolved from an item described in Part I (which is required if claiming this exemption) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace but will be available in the commercial marketplace in time to satisfy the delivery requirements under a United States Government solicitation
If claiming the item Evolved from Commercial Items or Components exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use Part I)
|_| Yes|_| NO
If yes describe the relationship of the modifications to the Federal Government requirement enspenspenspenspensp
What are the advances in technology or performance between the offered item and the commercial item on which it is based enspenspenspenspensp
What is your support for such advances enspenspenspenspensp
What is your support for availability of the item in time to meet requirements Is the claim availability reasonable enspenspenspenspensp
Please provide data regarding
(a) Currently pending offers including
(b) Planned Offers Including
In all instances scheduled for delivery no later than the delivery requirements under the
(c) Data in the format of Part I for completed sales of the item from which the ldquocommercial itemrdquo evolved
|_| III Modified Commercial Items or Components
Any item that would satisfy a criterion expressed in Part I or II hereof but for -
|_| (i) Modifications of a type customarily available in the commercial marketplace
If claiming Modified Commercial Item or Components that are of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use part I or parts II and II)
|_| Yes|_| NO
What are the modifications that would be made to the commercial item enspenspenspenspensp
Are the modifications of a type customarily available in the commercial marketplace
|_| Yes|_| NO
Summarize your support for customary availability of the modification in the commercial marketplace enspenspenspenspensp
|_| (ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet federal government requirements ldquoMinor modificationsrdquo means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component or change the purpose of a process Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product Dollar values and percentages may be used as guideposts but are not conclusive evidence that a modification is minor
If claiming Modified Commercial Items or Components that are not of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Are the modifications made to satisfy Federal Government requirements
|_| Yes|_| NO
Do the modifications alter the nongovernmental function or essential physical characteristics of the item
|_| Yes|_| NO
If yes what are the alterations enspenspenspenspensp
Does the modified item retain a predominance of nongovernmental functions or physical characteristics
|_| Yes|_| NO
Summarize your support describing the value of the modifications in comparison to the value of the final product enspenspenspenspensp
Summarize your support for the magnitude or size of the modifications in relation to the magnitude or size of the final product enspenspenspenspensp
Are there any other factors which would allow you to conclude that the modifications are minor
|_| Yes|_| NO
If yes what are they enspenspenspenspensp
Based on the above does the modification qualify as a minor modification
|_| Yes|_| NO
Please provide data regarding the minor modification and the total price to PSEMC of Minor Modifications
Price to PSEMC of all Minor Modifications at quantities proposed in this pricing action enspenspenspenspensp
Minor modifications that exceed the thresholds in FAR 15403-1(c)(3)(iii)(B) are subject to the Certified Cost or Pricing Data requirements and must be proposed as described by FAR 15408 Table 152
|_| IV Commercial Items Support Services
Installation services maintenance services repair services training services and other services if -
(i) Such services are procured for support of an item referred to in Parts I II III or IV hereof regardless of whether such services are provided by the same source or at the same time as the item and
(ii) The source of such services provided similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government
If claiming Commercial Item Support Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services procured for the support of a commercial item which qualifies under a preceding part
|_| Yes|_| NO
Describe the nature of the services and how they support the commercial item enspenspenspenspensp
Are the services provided at the same time to the general public and the Federal Government
|_| Yes|_| NO
Are the terms and conditions for the services similar to those offered to the general public
|_| Yes|_| NO
Describe differences enspenspenspenspensp
Please provide data regarding
a Open and completed contracts including
b Pending offers including
|_| V Any Combination of Items
Meeting the requirements of Parts I II III or IV hereof that are of a type customarily combined and sold in combination to the general public
If you have checked the above box and are claiming the Any Combination of Items exemption please attach hereto information as requ3sted for Parts I II III and IV
|_| VI Other Commercial Services
Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions For purposes of these services -
(i) Catalog price means a price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor is either published or otherwise available for inspection by customers and states prices at which sales are currently or were last made to a significant number of buyers constituting the general public and
(ii) Market prices means current prices that are established in the course of ordinary trade between buyers and sellers free to bargain and that can be substantiated through competition or from source independent of the offerors
If claiming the Other Commercial Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services sold competitively in substantial quantities in the commercial marketplace
|_| Yes|_| NO
If no are the services of a type sold in substantial quantities in the commercial marketplace
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If yes what is the ldquotyperdquo of service enspenspenspenspensp
Summarize your support for same enspenspenspenspensp
Are the prices quoted for specific tasks performed or specific outcomes to be achieved
|_| Yes|_| NO
Are the services offered consistent with your standard terms and conditions
|_| Yes|_| NO
Are the services of a type sold at catalog or market prices
|_| Yes|_| NO
If sold at catalog price is the price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor
|_| Yes|_| NO
If sold at catalog price is the catalog or its equivalent either published or otherwise available for inspection by customers
|_| Yes|_| NO
Summarize your support for same (include a copy of the catalog or provide location) enspenspenspenspensp
If sold at a catalog price are the listed prices those at which sales are currently or were last made to a significant number of buyers in the general public
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If sold at a market price are the prices established in the course of ordinary trade between buyers and sellers free to bargain
|_| Yes|_| NO
Summarize you support for same enspenspenspenspensp
If sold at market price can the price be substantiated through competition or from sources independent of the offeror
|_| Yes|_| NO
Summarize your support for same
Please provide data regarding
(a) Open and completed contracts including
(b) Pending Offers including
|_| VII Any Item Combination of Items or Service
Referred to in Parts I through VI hereof notwithstanding the fact that the item combination of items or service is transferred between or among separate divisions subsidiaries or affiliates of the Offeror
If you have checked the above box and are claiming the ldquoAny item combination of items or Servicerdquo exemption please provide data regarding
|_| VIII Non-developmental Items
A non-developmental item as defined in FAR 2101 which has been developed exclusively at private expense and sold in substantial quantities on a competitive basis to multiple State and local governments
If claiming the Non-developmental Items exemption then the following must be provided
Key Inquiries and Summary of Supplierrsquos Supporting Information
Was the item previously developed
|_| Yes|_| NO
Was the item used exclusively for governmental purposes by a Federal agency a State or local government or a foreign government with which the United States has mutual defense cooperation agreement
|_| Yes|_| NO
If the item is to be modified do the modifications comply with Part III guidance on modifications
|_| Yes|_| NO
If the item is not yet in use does it otherwise qualify as a non-developmental item
|_| Yes|_| NO
Was the item developed exclusively at private expense
|_| Yes|_| NO
Is the item sold in substantial quantities on a competitive basis to multiple State and local governments
|_| Yes|_| NO
Please provide data regarding
|_| IX General Inquiries
Does the item qualify as a combination of items under Parts I II III and IV above
|_| Yes|_| NO
Has the item or services previously been determined to be commercial
|_| Yes|_| NO
If so by whom enspenspenspenspensp
|_| X Other Information
Is there other information of which you are aware that would supplement the information provided and would help substantiate whether the item or service is commercial
|_| Yes|_| NO
Have you provided such information
|_| Yes|_| NO
List such information enspenspenspenspensp
|_| XI Supplier Determination
Offeror hereby represents that the foregoing information is accurate and complete and that to the best of its knowledge information and belief goods and or services offered currently constitute ldquoa commercial itemrdquo as defined by FAR 2101
For PSEMC Internal Use Only
XII Supplier Determination
Supplier has claimed that the item component or service identified above is a commercial item under the definition at FAR 2101 I have reviewed and summarized the supplierrsquos support for that claim in the appropriate sections above Based on such review of such support information and any other information identified elsewhere herein I conclude that the supplier
|_| HAS |_| HAS NOT Supported its claim of commercial item status under the definition at FAR 2101
If the supplier HAS NOT supported its claim list reasons enspenspenspenspensp
Describe action plat to resolve enspenspenspenspensp
Comments enspenspenspenspensp
image1jpeg
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull This section of Table 15-2 describes the format an estimating approach we
are required to use when developing a proposal to modify an existingcontract In addition to the cost element breakdowns required as describedin the previous slides when there is a modification or change proposal FARalso requires the following table to be inserted into your proposal
41
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals
42FAR 15408 Table 15-2 III B
B Change Orders modifications and claims
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
Column 2 includes the cost of all work deleted This
includes cost of work deleted already performed (amount in Column 3) and
cost of work deleted not yet performed (Column 4)
Column 3 includes the cost of deleted work already
performed This amount will not be included in the credit (delete) adjustment amount (eg we will not give back costs already
incurred)
Column 4 includes cost for deleted work not yet performed ndash must be priced using current
estimates (but the current estimate may be the same as
the original estimate) ndash it is develed similar to a normal ldquoaddrdquo proposal with a few
exceptions
Column 5 includes the cost of the
new work and is developed as we do any
other proposal
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull Detail for columns listed on previous page
1 Enter appropriate cost element2 Enter current estimates of what it would take to complete the deleted work that
has not yet been performed3 Enter current cost of deleted work already performed This should be based on
actuals and copies to support these actuals should be included in the proposal4 Enter the net cost to be deleted (Column 2 minus Column 3)5 Enter your estimate for cost of work added by the change6 Enter the net cost of change (Column 5 minus Column 4)7 Identify where in your proposal the supporting documentation and basis of
estimate can be found for each of these sections
43FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull For purposes of determining if a proposal an cost or pricing data are
required from individual suppliers on a change proposal the absolute valueof the ldquodeleterdquo amount plus the ldquoaddrdquo amount is computed for each supplierthat exceeds the cost and pricing threshold (TINA)
bull Remember from FAR 15403-4(b) ndash if the absolute value for an individualsupplier exceeds the cost and pricing threshold (TINA) and the supplier iseither an actual supplier (will continue to provide partsservices on thiscontract) the supplier is required to provide a proposal and cost or pricingdata in support of the change proposal
bull Deleted amount is our current estimate (generally no the original contractvalue unless it is our current estimate)
44FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull If a supplierrsquos quantities are changing due to a modification the net delete
or add amount is used to determine if the supplier exceeds the cost andpricing threshold (TINA)
bull The estimator should not consider the old quantity as the delete and thenew quantity as the add (eg in computing absolute value) whendetermining if the supplier exceeds the threshold in cases where quantitiesare changing
bull The development of the appropriate deletion is not simply the estimatedcost of the deleted quantity ndash this will overstate the credit
45FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals Cost of WorkDeleted for a Partial Deleted Quantitybull In cases where part of a material quantity is being deleted (eg original
contract requires 100 widgets and the contract is modified to delete 30 ofthem) one method of estimating the amount of the delete is
1 Develop a current estimate of the extended cost for the item(s) given the originalquantity
2 Develop a current estimate of the extended cost for the items at the lower(remaining) quantity
3 The delta between these two values represents the amount of the delete
bull The same method can be used if the contract is modified to increase aquantity for a part
46FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklist
47
bull The Supplier Proposal Adequacy Checklist is accessed from the externalPSEMC supplier website
bull Additional supplier proposal guidance and resources are available(information templates and tools to assist in building a FAR compliantproposal
bull Supplier proposal guidance
bull Supplier Proposal Adequacy Guidelines
bull PSEMC document templates
bull Supplier proposal adequacy checklistbull Contract pricing proposal cover sheet
httpspsemccomsuppliers
- Strategic Affordability Analysis
- Purpose of this Guideline
- Table of Contents
- Table of Contents
- Supplier Proposal Adequacy Checklist
- Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
- Cover Sheet
- Cover Sheet Example ndash Reference Form DI-SUP-105F02
- Index
- Index Example
- Cost Element Breakdown by Line Item
- Cost Element Breakdown by Line Item Example
- Summary Cost Element Breakdown
- Summary Cost Element Breakdown - Example
- Summary Cost Element Breakdown - Example
- Material
- Material
- Individual Bills of Material Example
- Consolidated Bill of Material Example
- Consolidated Bill of Material
- Material
- Material
- Material
- Labor
- Labor
- Labor
- Labor Hours Example
- Labor Hours Example ndash Actual Production History
- Labor Hours Examples ndash Basis of Estimate
- Other Direct Costs (ODC)
- Nonrecurring Expenses (NRE)
- NRE
- Rates
- Rates
- Summary
- Summary
- Other Types of Proposals
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals Cost of WorkDeleted for a Partial Deleted Quantity
- Supplier Proposal Adequacy Checklist
-
| Buyer (Type or Print Name) | Date |
| Offeror | |||
| By | |||
| Title | |||
| Date |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp | ||
| (iii) Total number of customers involved in such sales | enspenspenspenspensp |
| (a) Transfer price(s) of such goods | $ enspenspenspenspensp | ||
| (b) Total units of such goods and or | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| Unmodified Items Identified in Part 1 | Modified Items Proposed to PSMEC | Unit Value of Modification | |||||||
| Unmodified Item | Unmodified Price | Modified Item | Modified Price to PSEMC | ||||||
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| To the general public in the time-frame beginning | enspenspenspenspensp | enspenspenspenspensp | and ending | enspenspenspenspensp |
| (a) Sales | |||||
| (b) Leases | |||||
| (c) Licenses | |||||
| (d) Offers to Sell 1 | |||||
| (e) Offers to Lease 2 | |||||
| (f) Offers to License 3 |
| Part Number | |||
| Description | |||
| Offeror |
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull If attritionyield or scrap are added to your material you will need to submit
adequate basis of estimates and support as appropriate
bull There are time when your BOM may be impacted by minimum buys or NREthat is passed along from your supplier If this happens make sure this isclearly identified on the BOM and the support quotes or purchase orders
bull In addition to the individual BOMs FAR requires a consolidated BOM inyour proposal A consolidated BOM is a listing of the material needed forthe proposal A consolidated BOM combines all the materials for each ofthe parts being procured as well as assemblies services or materialassociated with NRE
17FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Individual Bills of Material Example
18
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Consolidated Bill of Material Examplebull Below is an example of a consolidated BOM This BOM was developed by
taking the three individual BOMrsquos on the previous page and combining themtogetherbull In a consolidated BOM part numbers and quantities should be combined (or
subtotaled) if they are the same parts For example the BOMs for Part Nos ABCand ABB both require the same Connector and Screw In the consolidated BOMthe requirements have been combined and reflect the total number of Connectorsand Screws that will be needed for this proposal
19
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Consolidated Bill of Materialbull If the proposal is for a base year plus option years there needs to be a
consolidated BOM for each of the years at each of the points in the RFPrequiring cost or pricing
bull To determine if a subtier cost analysis is required you need to add togetherthe anticipated costs for each supplier for all years In the above examplethere are two suppliers that will require cost analysis (Ford and Motion)
20
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Supplier proposals
bull A cost analysis report is required if any of your suppliersrsquo proposals exceedthe Truth in Negotiations Act (TINA) threshold These need to be submittedwith your proposal
bull If the cost analysis for a supplier is not complete at the time of your proposalsubmittal a schedule listing the estimated completion dates for each supplierneeds to be provided in the proposal
bull If an exemption applies that eliminates the need for a cost analysis (commercial orcompetitively priced) documentation needs to be provided to support these claims
21FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull If you claim your supplier was competed and the value is over the TINA
threshold you will need to provide the following
bull Evidence that an RFP or solicitation to bid was sent to two or more supplierscapable of providing the goods or services requested
bull Copies of the quotes received from each of the suppliers who were competedbull Supplierrsquos analysis with basis of rationale for why the winning bid represents the best value
(lowest price technical considerations etc)
bull If you claim your supplierrsquos parts or services are commercial refer to thecommercial section in this document
22FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Refer to the detailed instructions in the RFP when your proposal supports a
base year plus options contract or a long term agreement Guidance shouldbe provided here on the consolidation and subtier requirements If youhave any questions regarding this contact your PSEMC Supply Chainrepresentative
bull Inter-organizational costs
bull Inter-organizational costs are defined as the costs of items transferred betweendivisions within the same company
bull If you have bid any inter-organizational costs in your proposal you will need toprovide a cost element breakdown for each inter-organizational transfer andsupport as appropriate
bull One more thing
bull If you have a supplier with a value in excess of $135 million or is greater than 10percent of your total proposal and exceeds the TINA threshold FAR 15408 Table15-2 requires that we submit the supplierrsquos proposal and cost or pricing data withour own proposal
23FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Provide a time-phased (eg monthly quarterly) breakdown of labor hours ratesand cost by appropriate category and furnish basis for estimates
24FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Proposed labor hours are generally a combination of direct and support laborhours
bull Direct Labor Hours ndash Hours that can be identified specifically to a final end itembull Support Labor Hours ndash Hours that cannot be specifically identified to one end item For
example a production manager may be in charge of overseeing the manufacturing ofmultiple parts
25FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull You need to provide a breakdown of the labor hours by labor category and
function along with a basis of estimate for the proposed labor hours
bull For example if you propose 500 hours for an end item you would need to providea breakdown by categoryfunction (assembly inspection supervisor engineeretc) You also will need to provide a detailed basis of estimate for eachcategoryfunction showing how your arrived at the hours for the proposed laborcategory
bull Generally the basis should be actual production history An alternative approach isthe use of engineering estimates if the item has not been manufactured before
bull Cost Accounting Standards (CAS) 401 requires that a company isconsistent between proposals and accounting practices The way acompany estimates its labor hours needs to also be the way it accumulatesits production history
26FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours ExampleProposal No HLQxxxxxDate January 1 20xx ABC Corporation
Labor HoursProposed Labor Hours ndash 8279 hrsunit for Part ABC
27
Direct Labor HrsUnitAssembly 3800 Machinist 350 QA 762 Engineer 1 238
Subtotal 5151
Production Support HrsUnitMfg Supervisor 920Eng Supervisor 368QA supervisor 920Production Mgr 920
Subtotal 3128
Total Hrs 8279
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Example ndash Actual Production History
28
ProposedDuration - Months 7 9 24 12 Qty 30 39 110 50 End Date 11152006 982007 912009
Direct Labor Total Hrs HrsUnit Total Hours HrsUnit Total Hrs HrsUnit Total Hrs HrsUnitAssembly 1836 6120 1675 4295 4338 3944 1900 3800 Machinist 169 564 154 396 400 363 175 350 QA 368 1238 336 862 870 791 381 762 Engineer 1 115 383 105 269 272 247 119 238
Production Support Total Hrs Total Hrs Total Hrs Total Hrs HrsUnitMFG Supervisor 268 345 920 460 920 Eng Supervisor 107 138 184 184 368 QA Supervisor 268 345 920 460 920 Production Mgr 268 345 920 460 920
HrsUnit 8279
Acutal Production History - Part ABC
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Examples ndash Basis of Estimatebull Basis of estimate for direct labor
bull Proposed direct labor hours were developed by apply a 90 percent learningcurve to the production labor history for part BBC You need to provide abasis for the 90 percent curve
bull Basis of estimate for the manufacturing supervisorbull The manufacturing supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 920 hours were used over a 24-month periodSince the current proposal has been estimated to cover 12 months 460hours were applied to the manufacturing supervisor (920 divided by 2)
bull Basis of estimate for engineering supervisorbull The engineering supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 184 hours were necessary to complete the taskThis task is similar and so we estimate 184 hours
29
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Direct Costs (ODC)bull List other expenses not otherwise included under material and labor (eg
travel freight) and provide basis for pricing
bull For example the basis for travel would include the location number of tripsnumber of people attending and the estimated expenses for the travel
30FAR 15408 Table 15-2 II D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Nonrecurring Expenses (NRE)bull NRE refers to one-time costs that you would not normally see from proposal
to proposal
bull Examples of NRE are as follows
bull Special Toolingbull New Equipmentbull Equipment Refurbishmentbull Hours and materials associated with increase throughput capacitybull Hours and materials to research develop design and test new processesbull One-Time review events
31FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
NREbull As mentioned earlier NRE charges must be broken out by cost element
This means the material and labor components associated with the NREare clearly broken out
bull Material ndash any material associated with NRE should be supported by supplierquotes or purchase orders
bull Labor ndash labor hours associated with NRE should have basis of estimates(BOE) that are broken down by labor category and include detaileddescriptions of the tasks that will be performed
32FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Rates include direct labor overhead general and administrative expenses
(GampA) and cost of money (COM)
bull PSEMC has the capability to perform rate audits on suppliers in lieu ofhaving the DCAA do this
bull If you allow PSEMC to perform this rate audit you need to provide thefollowing information
bull Explanation as to how the rates were calculatedbull Detailed documentation (financial statements labor pools listing of unallowable
expenses etc) that support the rate calculationsbull If the detailed documentation is based on budgetary numbers you will also need
to provide three years of your most current actuals to support you budgetarynumbers
bull If budgetary numbers differ significantly from the most recent actuals providedetailed explanations for these differences
33FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Facilities Capital COM
bull When you elect to claim COM submit a completed form CASB-CFM (FacilitiesCapital Cost of Money Factors Computation) in accordance with FAR 31205-10Also complete DD Form 1861 and include a copy in your proposal submissionBoth forms can be found on-line at various locations
34FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull In summary all noncompetitive noncommercial proposals valued at more
than the cost and pricing threshold (TINA) are required to include thefollowing information
35
Required Items Page FAR Reference
Supplier Proposal Adequacy Checklist Pg 5-6 PSEMC Policy
Cover Sheet - SF1411 or equivalent Pg 7-8 FAR 15408 Table 15-2 I A
Index Pg 9-10 FAR 15408 Table 15-2 I B
Cost Element Breakdown Pg 11-12 FAR 15408 Table 15-2 I D
Summary Cost Element Breakdown Pg 13-15 FAR 15408 Table 15-2 I E
Material (Including Consolidated BOM) Pg 16-23 FAR 15408 Table 15-2 II A
Labor Pg 24-29 FAR 15408 Table 15-2 II B
ODC Pg 30 FAR 15408 Table 15-2 II D
NRE Pg 31-32 FAR 15408 Table 15-2 II
Rates Pg 33-34 FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull Sufficient rationale and supporting documentation to support each of the
proposed cost elements is also required
bull Obtaining adequate supplier proposals is always on the critical path sincePSEMC cannot submit its proposal to the government until it has receivedadequate proposals from its subcontractors Therefore it is critical thatadequate supplier proposals are obtained as quickly as possible
36
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Types of Proposalsbull Commercial item proposals
bull Change proposals
bull The following slides are only applicable in certain situations
37
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you or one of your suppliers is providing a commercial part cost or pricing
data and a cost analysis is not required However you must demonstrate that the part is commercial and that the price is reasonable
bull A commercial item is any item other than real property that is a type customarily used by the general public or by a nongovernment entity
bull Has also been sold leased or licensed to the general public or has been offered for sale lease or license to the general public
bull A final commercial determination is made by the government contracting officer If the items is deemed to not be commercial the supplier is required to submit a complete proposal that includes cost and pricing data
38FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you claim one or more of your parts are commercial you need to support
your position by providing the following information
bull Copies of applicable portions of a company catalogue or website address that shows the item with a description and unit price
bull Show that these items can be purchased by the general public or nongovernmentalagency
bull If a website or catalogue is not available copies of invoices showing the sale of these items to nongovernment entities is sufficient
39FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull PSEMC policy requires suppliers to complete a PSEMC Supplier Proposal
Adequacy Checklist (sent with the RFP) for all proposals where the supplierclaims its parts are commercial
bull An example of the Supplier Proposal Adequacy Checklist for commercialitems is attached reference form DI-SUP-310F01
40PSEMC Policy
Pacific Scientific EMC ndash Commercial Item Status
If claiming an exemption offeror must provide the appropriate information to determine commerciality Refusal to provide the required information can result in an assist audit being requested from the Defense Contract Audit Agency or other cognizant Government Audit Agencies and or a determination that goods andor services offered do not constitute a ldquocommercial itemrdquo
Offeror hereby represents that to the best of its knowledge information and belief goods andor services offered constitute a ldquocommercial itemrdquo as defined by FAR 2101 because it constitutes
A Commercial Item or Component Justification (required for any claim)
Key Inquiries and Summary of your Supporting Information
What is the relevant ldquotyperdquo of item enspenspenspenspensp
What are the types of items uses by the general public or by non-governmental entities for other than governmental purposes enspenspenspenspensp
What indicates the type of itemrsquos use described above is customary enspenspenspenspensp
Has the offered item itself (as opposed to the type of item) been sold or offered for sale
|_| Yes|_| NO
Are the offered itemrsquos sales (or offers to sale) to the general public
|_| Yes|_| NO
Please provide data regarding sales leases or licenses of this item and identification of the non-government use entities
ValueNon-Government Use Entities
(date)(date)
In addition as an appendix to this commercial item determination provide supporting documentation in the form of
1that have not materialized into sales
2that have not materialized into leases
3that have not materialized into licenses
1 Verification of sales history to source documents
2 Identification of customarily offered discounts for the item
3 Verification of the item to an existing catalog or price list and
4 Verification of historical data for an item previously not determined commercial that the offeror is now trying to qualify as a commercial item
(check box(es) as appropriate)
|_| I Unmodified Commercial Items or Components (Complete Section A)
Any item other than real property that is a of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes and
(i) Has been sold leased or licensed to the general public or
(ii) Has been offered for sale lease or license to the general public
|_| II Item Evolved from Commercial Items or Components
Any item that evolved from an item described in Part I (which is required if claiming this exemption) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace but will be available in the commercial marketplace in time to satisfy the delivery requirements under a United States Government solicitation
If claiming the item Evolved from Commercial Items or Components exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use Part I)
|_| Yes|_| NO
If yes describe the relationship of the modifications to the Federal Government requirement enspenspenspenspensp
What are the advances in technology or performance between the offered item and the commercial item on which it is based enspenspenspenspensp
What is your support for such advances enspenspenspenspensp
What is your support for availability of the item in time to meet requirements Is the claim availability reasonable enspenspenspenspensp
Please provide data regarding
(a) Currently pending offers including
(b) Planned Offers Including
In all instances scheduled for delivery no later than the delivery requirements under the
(c) Data in the format of Part I for completed sales of the item from which the ldquocommercial itemrdquo evolved
|_| III Modified Commercial Items or Components
Any item that would satisfy a criterion expressed in Part I or II hereof but for -
|_| (i) Modifications of a type customarily available in the commercial marketplace
If claiming Modified Commercial Item or Components that are of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use part I or parts II and II)
|_| Yes|_| NO
What are the modifications that would be made to the commercial item enspenspenspenspensp
Are the modifications of a type customarily available in the commercial marketplace
|_| Yes|_| NO
Summarize your support for customary availability of the modification in the commercial marketplace enspenspenspenspensp
|_| (ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet federal government requirements ldquoMinor modificationsrdquo means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component or change the purpose of a process Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product Dollar values and percentages may be used as guideposts but are not conclusive evidence that a modification is minor
If claiming Modified Commercial Items or Components that are not of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Are the modifications made to satisfy Federal Government requirements
|_| Yes|_| NO
Do the modifications alter the nongovernmental function or essential physical characteristics of the item
|_| Yes|_| NO
If yes what are the alterations enspenspenspenspensp
Does the modified item retain a predominance of nongovernmental functions or physical characteristics
|_| Yes|_| NO
Summarize your support describing the value of the modifications in comparison to the value of the final product enspenspenspenspensp
Summarize your support for the magnitude or size of the modifications in relation to the magnitude or size of the final product enspenspenspenspensp
Are there any other factors which would allow you to conclude that the modifications are minor
|_| Yes|_| NO
If yes what are they enspenspenspenspensp
Based on the above does the modification qualify as a minor modification
|_| Yes|_| NO
Please provide data regarding the minor modification and the total price to PSEMC of Minor Modifications
Price to PSEMC of all Minor Modifications at quantities proposed in this pricing action enspenspenspenspensp
Minor modifications that exceed the thresholds in FAR 15403-1(c)(3)(iii)(B) are subject to the Certified Cost or Pricing Data requirements and must be proposed as described by FAR 15408 Table 152
|_| IV Commercial Items Support Services
Installation services maintenance services repair services training services and other services if -
(i) Such services are procured for support of an item referred to in Parts I II III or IV hereof regardless of whether such services are provided by the same source or at the same time as the item and
(ii) The source of such services provided similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government
If claiming Commercial Item Support Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services procured for the support of a commercial item which qualifies under a preceding part
|_| Yes|_| NO
Describe the nature of the services and how they support the commercial item enspenspenspenspensp
Are the services provided at the same time to the general public and the Federal Government
|_| Yes|_| NO
Are the terms and conditions for the services similar to those offered to the general public
|_| Yes|_| NO
Describe differences enspenspenspenspensp
Please provide data regarding
a Open and completed contracts including
b Pending offers including
|_| V Any Combination of Items
Meeting the requirements of Parts I II III or IV hereof that are of a type customarily combined and sold in combination to the general public
If you have checked the above box and are claiming the Any Combination of Items exemption please attach hereto information as requ3sted for Parts I II III and IV
|_| VI Other Commercial Services
Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions For purposes of these services -
(i) Catalog price means a price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor is either published or otherwise available for inspection by customers and states prices at which sales are currently or were last made to a significant number of buyers constituting the general public and
(ii) Market prices means current prices that are established in the course of ordinary trade between buyers and sellers free to bargain and that can be substantiated through competition or from source independent of the offerors
If claiming the Other Commercial Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services sold competitively in substantial quantities in the commercial marketplace
|_| Yes|_| NO
If no are the services of a type sold in substantial quantities in the commercial marketplace
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If yes what is the ldquotyperdquo of service enspenspenspenspensp
Summarize your support for same enspenspenspenspensp
Are the prices quoted for specific tasks performed or specific outcomes to be achieved
|_| Yes|_| NO
Are the services offered consistent with your standard terms and conditions
|_| Yes|_| NO
Are the services of a type sold at catalog or market prices
|_| Yes|_| NO
If sold at catalog price is the price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor
|_| Yes|_| NO
If sold at catalog price is the catalog or its equivalent either published or otherwise available for inspection by customers
|_| Yes|_| NO
Summarize your support for same (include a copy of the catalog or provide location) enspenspenspenspensp
If sold at a catalog price are the listed prices those at which sales are currently or were last made to a significant number of buyers in the general public
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If sold at a market price are the prices established in the course of ordinary trade between buyers and sellers free to bargain
|_| Yes|_| NO
Summarize you support for same enspenspenspenspensp
If sold at market price can the price be substantiated through competition or from sources independent of the offeror
|_| Yes|_| NO
Summarize your support for same
Please provide data regarding
(a) Open and completed contracts including
(b) Pending Offers including
|_| VII Any Item Combination of Items or Service
Referred to in Parts I through VI hereof notwithstanding the fact that the item combination of items or service is transferred between or among separate divisions subsidiaries or affiliates of the Offeror
If you have checked the above box and are claiming the ldquoAny item combination of items or Servicerdquo exemption please provide data regarding
|_| VIII Non-developmental Items
A non-developmental item as defined in FAR 2101 which has been developed exclusively at private expense and sold in substantial quantities on a competitive basis to multiple State and local governments
If claiming the Non-developmental Items exemption then the following must be provided
Key Inquiries and Summary of Supplierrsquos Supporting Information
Was the item previously developed
|_| Yes|_| NO
Was the item used exclusively for governmental purposes by a Federal agency a State or local government or a foreign government with which the United States has mutual defense cooperation agreement
|_| Yes|_| NO
If the item is to be modified do the modifications comply with Part III guidance on modifications
|_| Yes|_| NO
If the item is not yet in use does it otherwise qualify as a non-developmental item
|_| Yes|_| NO
Was the item developed exclusively at private expense
|_| Yes|_| NO
Is the item sold in substantial quantities on a competitive basis to multiple State and local governments
|_| Yes|_| NO
Please provide data regarding
|_| IX General Inquiries
Does the item qualify as a combination of items under Parts I II III and IV above
|_| Yes|_| NO
Has the item or services previously been determined to be commercial
|_| Yes|_| NO
If so by whom enspenspenspenspensp
|_| X Other Information
Is there other information of which you are aware that would supplement the information provided and would help substantiate whether the item or service is commercial
|_| Yes|_| NO
Have you provided such information
|_| Yes|_| NO
List such information enspenspenspenspensp
|_| XI Supplier Determination
Offeror hereby represents that the foregoing information is accurate and complete and that to the best of its knowledge information and belief goods and or services offered currently constitute ldquoa commercial itemrdquo as defined by FAR 2101
For PSEMC Internal Use Only
XII Supplier Determination
Supplier has claimed that the item component or service identified above is a commercial item under the definition at FAR 2101 I have reviewed and summarized the supplierrsquos support for that claim in the appropriate sections above Based on such review of such support information and any other information identified elsewhere herein I conclude that the supplier
|_| HAS |_| HAS NOT Supported its claim of commercial item status under the definition at FAR 2101
If the supplier HAS NOT supported its claim list reasons enspenspenspenspensp
Describe action plat to resolve enspenspenspenspensp
Comments enspenspenspenspensp
image1jpeg
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull This section of Table 15-2 describes the format an estimating approach we
are required to use when developing a proposal to modify an existingcontract In addition to the cost element breakdowns required as describedin the previous slides when there is a modification or change proposal FARalso requires the following table to be inserted into your proposal
41
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals
42FAR 15408 Table 15-2 III B
B Change Orders modifications and claims
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
Column 2 includes the cost of all work deleted This
includes cost of work deleted already performed (amount in Column 3) and
cost of work deleted not yet performed (Column 4)
Column 3 includes the cost of deleted work already
performed This amount will not be included in the credit (delete) adjustment amount (eg we will not give back costs already
incurred)
Column 4 includes cost for deleted work not yet performed ndash must be priced using current
estimates (but the current estimate may be the same as
the original estimate) ndash it is develed similar to a normal ldquoaddrdquo proposal with a few
exceptions
Column 5 includes the cost of the
new work and is developed as we do any
other proposal
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull Detail for columns listed on previous page
1 Enter appropriate cost element2 Enter current estimates of what it would take to complete the deleted work that
has not yet been performed3 Enter current cost of deleted work already performed This should be based on
actuals and copies to support these actuals should be included in the proposal4 Enter the net cost to be deleted (Column 2 minus Column 3)5 Enter your estimate for cost of work added by the change6 Enter the net cost of change (Column 5 minus Column 4)7 Identify where in your proposal the supporting documentation and basis of
estimate can be found for each of these sections
43FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull For purposes of determining if a proposal an cost or pricing data are
required from individual suppliers on a change proposal the absolute valueof the ldquodeleterdquo amount plus the ldquoaddrdquo amount is computed for each supplierthat exceeds the cost and pricing threshold (TINA)
bull Remember from FAR 15403-4(b) ndash if the absolute value for an individualsupplier exceeds the cost and pricing threshold (TINA) and the supplier iseither an actual supplier (will continue to provide partsservices on thiscontract) the supplier is required to provide a proposal and cost or pricingdata in support of the change proposal
bull Deleted amount is our current estimate (generally no the original contractvalue unless it is our current estimate)
44FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull If a supplierrsquos quantities are changing due to a modification the net delete
or add amount is used to determine if the supplier exceeds the cost andpricing threshold (TINA)
bull The estimator should not consider the old quantity as the delete and thenew quantity as the add (eg in computing absolute value) whendetermining if the supplier exceeds the threshold in cases where quantitiesare changing
bull The development of the appropriate deletion is not simply the estimatedcost of the deleted quantity ndash this will overstate the credit
45FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals Cost of WorkDeleted for a Partial Deleted Quantitybull In cases where part of a material quantity is being deleted (eg original
contract requires 100 widgets and the contract is modified to delete 30 ofthem) one method of estimating the amount of the delete is
1 Develop a current estimate of the extended cost for the item(s) given the originalquantity
2 Develop a current estimate of the extended cost for the items at the lower(remaining) quantity
3 The delta between these two values represents the amount of the delete
bull The same method can be used if the contract is modified to increase aquantity for a part
46FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklist
47
bull The Supplier Proposal Adequacy Checklist is accessed from the externalPSEMC supplier website
bull Additional supplier proposal guidance and resources are available(information templates and tools to assist in building a FAR compliantproposal
bull Supplier proposal guidance
bull Supplier Proposal Adequacy Guidelines
bull PSEMC document templates
bull Supplier proposal adequacy checklistbull Contract pricing proposal cover sheet
httpspsemccomsuppliers
- Strategic Affordability Analysis
- Purpose of this Guideline
- Table of Contents
- Table of Contents
- Supplier Proposal Adequacy Checklist
- Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
- Cover Sheet
- Cover Sheet Example ndash Reference Form DI-SUP-105F02
- Index
- Index Example
- Cost Element Breakdown by Line Item
- Cost Element Breakdown by Line Item Example
- Summary Cost Element Breakdown
- Summary Cost Element Breakdown - Example
- Summary Cost Element Breakdown - Example
- Material
- Material
- Individual Bills of Material Example
- Consolidated Bill of Material Example
- Consolidated Bill of Material
- Material
- Material
- Material
- Labor
- Labor
- Labor
- Labor Hours Example
- Labor Hours Example ndash Actual Production History
- Labor Hours Examples ndash Basis of Estimate
- Other Direct Costs (ODC)
- Nonrecurring Expenses (NRE)
- NRE
- Rates
- Rates
- Summary
- Summary
- Other Types of Proposals
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals Cost of WorkDeleted for a Partial Deleted Quantity
- Supplier Proposal Adequacy Checklist
-
| Buyer (Type or Print Name) | Date |
| Offeror | |||
| By | |||
| Title | |||
| Date |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp | ||
| (iii) Total number of customers involved in such sales | enspenspenspenspensp |
| (a) Transfer price(s) of such goods | $ enspenspenspenspensp | ||
| (b) Total units of such goods and or | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| Unmodified Items Identified in Part 1 | Modified Items Proposed to PSMEC | Unit Value of Modification | |||||||
| Unmodified Item | Unmodified Price | Modified Item | Modified Price to PSEMC | ||||||
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| To the general public in the time-frame beginning | enspenspenspenspensp | enspenspenspenspensp | and ending | enspenspenspenspensp |
| (a) Sales | |||||
| (b) Leases | |||||
| (c) Licenses | |||||
| (d) Offers to Sell 1 | |||||
| (e) Offers to Lease 2 | |||||
| (f) Offers to License 3 |
| Part Number | |||
| Description | |||
| Offeror |
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Individual Bills of Material Example
18
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Consolidated Bill of Material Examplebull Below is an example of a consolidated BOM This BOM was developed by
taking the three individual BOMrsquos on the previous page and combining themtogetherbull In a consolidated BOM part numbers and quantities should be combined (or
subtotaled) if they are the same parts For example the BOMs for Part Nos ABCand ABB both require the same Connector and Screw In the consolidated BOMthe requirements have been combined and reflect the total number of Connectorsand Screws that will be needed for this proposal
19
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Consolidated Bill of Materialbull If the proposal is for a base year plus option years there needs to be a
consolidated BOM for each of the years at each of the points in the RFPrequiring cost or pricing
bull To determine if a subtier cost analysis is required you need to add togetherthe anticipated costs for each supplier for all years In the above examplethere are two suppliers that will require cost analysis (Ford and Motion)
20
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Supplier proposals
bull A cost analysis report is required if any of your suppliersrsquo proposals exceedthe Truth in Negotiations Act (TINA) threshold These need to be submittedwith your proposal
bull If the cost analysis for a supplier is not complete at the time of your proposalsubmittal a schedule listing the estimated completion dates for each supplierneeds to be provided in the proposal
bull If an exemption applies that eliminates the need for a cost analysis (commercial orcompetitively priced) documentation needs to be provided to support these claims
21FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull If you claim your supplier was competed and the value is over the TINA
threshold you will need to provide the following
bull Evidence that an RFP or solicitation to bid was sent to two or more supplierscapable of providing the goods or services requested
bull Copies of the quotes received from each of the suppliers who were competedbull Supplierrsquos analysis with basis of rationale for why the winning bid represents the best value
(lowest price technical considerations etc)
bull If you claim your supplierrsquos parts or services are commercial refer to thecommercial section in this document
22FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Refer to the detailed instructions in the RFP when your proposal supports a
base year plus options contract or a long term agreement Guidance shouldbe provided here on the consolidation and subtier requirements If youhave any questions regarding this contact your PSEMC Supply Chainrepresentative
bull Inter-organizational costs
bull Inter-organizational costs are defined as the costs of items transferred betweendivisions within the same company
bull If you have bid any inter-organizational costs in your proposal you will need toprovide a cost element breakdown for each inter-organizational transfer andsupport as appropriate
bull One more thing
bull If you have a supplier with a value in excess of $135 million or is greater than 10percent of your total proposal and exceeds the TINA threshold FAR 15408 Table15-2 requires that we submit the supplierrsquos proposal and cost or pricing data withour own proposal
23FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Provide a time-phased (eg monthly quarterly) breakdown of labor hours ratesand cost by appropriate category and furnish basis for estimates
24FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Proposed labor hours are generally a combination of direct and support laborhours
bull Direct Labor Hours ndash Hours that can be identified specifically to a final end itembull Support Labor Hours ndash Hours that cannot be specifically identified to one end item For
example a production manager may be in charge of overseeing the manufacturing ofmultiple parts
25FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull You need to provide a breakdown of the labor hours by labor category and
function along with a basis of estimate for the proposed labor hours
bull For example if you propose 500 hours for an end item you would need to providea breakdown by categoryfunction (assembly inspection supervisor engineeretc) You also will need to provide a detailed basis of estimate for eachcategoryfunction showing how your arrived at the hours for the proposed laborcategory
bull Generally the basis should be actual production history An alternative approach isthe use of engineering estimates if the item has not been manufactured before
bull Cost Accounting Standards (CAS) 401 requires that a company isconsistent between proposals and accounting practices The way acompany estimates its labor hours needs to also be the way it accumulatesits production history
26FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours ExampleProposal No HLQxxxxxDate January 1 20xx ABC Corporation
Labor HoursProposed Labor Hours ndash 8279 hrsunit for Part ABC
27
Direct Labor HrsUnitAssembly 3800 Machinist 350 QA 762 Engineer 1 238
Subtotal 5151
Production Support HrsUnitMfg Supervisor 920Eng Supervisor 368QA supervisor 920Production Mgr 920
Subtotal 3128
Total Hrs 8279
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Example ndash Actual Production History
28
ProposedDuration - Months 7 9 24 12 Qty 30 39 110 50 End Date 11152006 982007 912009
Direct Labor Total Hrs HrsUnit Total Hours HrsUnit Total Hrs HrsUnit Total Hrs HrsUnitAssembly 1836 6120 1675 4295 4338 3944 1900 3800 Machinist 169 564 154 396 400 363 175 350 QA 368 1238 336 862 870 791 381 762 Engineer 1 115 383 105 269 272 247 119 238
Production Support Total Hrs Total Hrs Total Hrs Total Hrs HrsUnitMFG Supervisor 268 345 920 460 920 Eng Supervisor 107 138 184 184 368 QA Supervisor 268 345 920 460 920 Production Mgr 268 345 920 460 920
HrsUnit 8279
Acutal Production History - Part ABC
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Examples ndash Basis of Estimatebull Basis of estimate for direct labor
bull Proposed direct labor hours were developed by apply a 90 percent learningcurve to the production labor history for part BBC You need to provide abasis for the 90 percent curve
bull Basis of estimate for the manufacturing supervisorbull The manufacturing supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 920 hours were used over a 24-month periodSince the current proposal has been estimated to cover 12 months 460hours were applied to the manufacturing supervisor (920 divided by 2)
bull Basis of estimate for engineering supervisorbull The engineering supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 184 hours were necessary to complete the taskThis task is similar and so we estimate 184 hours
29
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Direct Costs (ODC)bull List other expenses not otherwise included under material and labor (eg
travel freight) and provide basis for pricing
bull For example the basis for travel would include the location number of tripsnumber of people attending and the estimated expenses for the travel
30FAR 15408 Table 15-2 II D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Nonrecurring Expenses (NRE)bull NRE refers to one-time costs that you would not normally see from proposal
to proposal
bull Examples of NRE are as follows
bull Special Toolingbull New Equipmentbull Equipment Refurbishmentbull Hours and materials associated with increase throughput capacitybull Hours and materials to research develop design and test new processesbull One-Time review events
31FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
NREbull As mentioned earlier NRE charges must be broken out by cost element
This means the material and labor components associated with the NREare clearly broken out
bull Material ndash any material associated with NRE should be supported by supplierquotes or purchase orders
bull Labor ndash labor hours associated with NRE should have basis of estimates(BOE) that are broken down by labor category and include detaileddescriptions of the tasks that will be performed
32FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Rates include direct labor overhead general and administrative expenses
(GampA) and cost of money (COM)
bull PSEMC has the capability to perform rate audits on suppliers in lieu ofhaving the DCAA do this
bull If you allow PSEMC to perform this rate audit you need to provide thefollowing information
bull Explanation as to how the rates were calculatedbull Detailed documentation (financial statements labor pools listing of unallowable
expenses etc) that support the rate calculationsbull If the detailed documentation is based on budgetary numbers you will also need
to provide three years of your most current actuals to support you budgetarynumbers
bull If budgetary numbers differ significantly from the most recent actuals providedetailed explanations for these differences
33FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Facilities Capital COM
bull When you elect to claim COM submit a completed form CASB-CFM (FacilitiesCapital Cost of Money Factors Computation) in accordance with FAR 31205-10Also complete DD Form 1861 and include a copy in your proposal submissionBoth forms can be found on-line at various locations
34FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull In summary all noncompetitive noncommercial proposals valued at more
than the cost and pricing threshold (TINA) are required to include thefollowing information
35
Required Items Page FAR Reference
Supplier Proposal Adequacy Checklist Pg 5-6 PSEMC Policy
Cover Sheet - SF1411 or equivalent Pg 7-8 FAR 15408 Table 15-2 I A
Index Pg 9-10 FAR 15408 Table 15-2 I B
Cost Element Breakdown Pg 11-12 FAR 15408 Table 15-2 I D
Summary Cost Element Breakdown Pg 13-15 FAR 15408 Table 15-2 I E
Material (Including Consolidated BOM) Pg 16-23 FAR 15408 Table 15-2 II A
Labor Pg 24-29 FAR 15408 Table 15-2 II B
ODC Pg 30 FAR 15408 Table 15-2 II D
NRE Pg 31-32 FAR 15408 Table 15-2 II
Rates Pg 33-34 FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull Sufficient rationale and supporting documentation to support each of the
proposed cost elements is also required
bull Obtaining adequate supplier proposals is always on the critical path sincePSEMC cannot submit its proposal to the government until it has receivedadequate proposals from its subcontractors Therefore it is critical thatadequate supplier proposals are obtained as quickly as possible
36
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Types of Proposalsbull Commercial item proposals
bull Change proposals
bull The following slides are only applicable in certain situations
37
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you or one of your suppliers is providing a commercial part cost or pricing
data and a cost analysis is not required However you must demonstrate that the part is commercial and that the price is reasonable
bull A commercial item is any item other than real property that is a type customarily used by the general public or by a nongovernment entity
bull Has also been sold leased or licensed to the general public or has been offered for sale lease or license to the general public
bull A final commercial determination is made by the government contracting officer If the items is deemed to not be commercial the supplier is required to submit a complete proposal that includes cost and pricing data
38FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you claim one or more of your parts are commercial you need to support
your position by providing the following information
bull Copies of applicable portions of a company catalogue or website address that shows the item with a description and unit price
bull Show that these items can be purchased by the general public or nongovernmentalagency
bull If a website or catalogue is not available copies of invoices showing the sale of these items to nongovernment entities is sufficient
39FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull PSEMC policy requires suppliers to complete a PSEMC Supplier Proposal
Adequacy Checklist (sent with the RFP) for all proposals where the supplierclaims its parts are commercial
bull An example of the Supplier Proposal Adequacy Checklist for commercialitems is attached reference form DI-SUP-310F01
40PSEMC Policy
Pacific Scientific EMC ndash Commercial Item Status
If claiming an exemption offeror must provide the appropriate information to determine commerciality Refusal to provide the required information can result in an assist audit being requested from the Defense Contract Audit Agency or other cognizant Government Audit Agencies and or a determination that goods andor services offered do not constitute a ldquocommercial itemrdquo
Offeror hereby represents that to the best of its knowledge information and belief goods andor services offered constitute a ldquocommercial itemrdquo as defined by FAR 2101 because it constitutes
A Commercial Item or Component Justification (required for any claim)
Key Inquiries and Summary of your Supporting Information
What is the relevant ldquotyperdquo of item enspenspenspenspensp
What are the types of items uses by the general public or by non-governmental entities for other than governmental purposes enspenspenspenspensp
What indicates the type of itemrsquos use described above is customary enspenspenspenspensp
Has the offered item itself (as opposed to the type of item) been sold or offered for sale
|_| Yes|_| NO
Are the offered itemrsquos sales (or offers to sale) to the general public
|_| Yes|_| NO
Please provide data regarding sales leases or licenses of this item and identification of the non-government use entities
ValueNon-Government Use Entities
(date)(date)
In addition as an appendix to this commercial item determination provide supporting documentation in the form of
1that have not materialized into sales
2that have not materialized into leases
3that have not materialized into licenses
1 Verification of sales history to source documents
2 Identification of customarily offered discounts for the item
3 Verification of the item to an existing catalog or price list and
4 Verification of historical data for an item previously not determined commercial that the offeror is now trying to qualify as a commercial item
(check box(es) as appropriate)
|_| I Unmodified Commercial Items or Components (Complete Section A)
Any item other than real property that is a of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes and
(i) Has been sold leased or licensed to the general public or
(ii) Has been offered for sale lease or license to the general public
|_| II Item Evolved from Commercial Items or Components
Any item that evolved from an item described in Part I (which is required if claiming this exemption) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace but will be available in the commercial marketplace in time to satisfy the delivery requirements under a United States Government solicitation
If claiming the item Evolved from Commercial Items or Components exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use Part I)
|_| Yes|_| NO
If yes describe the relationship of the modifications to the Federal Government requirement enspenspenspenspensp
What are the advances in technology or performance between the offered item and the commercial item on which it is based enspenspenspenspensp
What is your support for such advances enspenspenspenspensp
What is your support for availability of the item in time to meet requirements Is the claim availability reasonable enspenspenspenspensp
Please provide data regarding
(a) Currently pending offers including
(b) Planned Offers Including
In all instances scheduled for delivery no later than the delivery requirements under the
(c) Data in the format of Part I for completed sales of the item from which the ldquocommercial itemrdquo evolved
|_| III Modified Commercial Items or Components
Any item that would satisfy a criterion expressed in Part I or II hereof but for -
|_| (i) Modifications of a type customarily available in the commercial marketplace
If claiming Modified Commercial Item or Components that are of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use part I or parts II and II)
|_| Yes|_| NO
What are the modifications that would be made to the commercial item enspenspenspenspensp
Are the modifications of a type customarily available in the commercial marketplace
|_| Yes|_| NO
Summarize your support for customary availability of the modification in the commercial marketplace enspenspenspenspensp
|_| (ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet federal government requirements ldquoMinor modificationsrdquo means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component or change the purpose of a process Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product Dollar values and percentages may be used as guideposts but are not conclusive evidence that a modification is minor
If claiming Modified Commercial Items or Components that are not of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Are the modifications made to satisfy Federal Government requirements
|_| Yes|_| NO
Do the modifications alter the nongovernmental function or essential physical characteristics of the item
|_| Yes|_| NO
If yes what are the alterations enspenspenspenspensp
Does the modified item retain a predominance of nongovernmental functions or physical characteristics
|_| Yes|_| NO
Summarize your support describing the value of the modifications in comparison to the value of the final product enspenspenspenspensp
Summarize your support for the magnitude or size of the modifications in relation to the magnitude or size of the final product enspenspenspenspensp
Are there any other factors which would allow you to conclude that the modifications are minor
|_| Yes|_| NO
If yes what are they enspenspenspenspensp
Based on the above does the modification qualify as a minor modification
|_| Yes|_| NO
Please provide data regarding the minor modification and the total price to PSEMC of Minor Modifications
Price to PSEMC of all Minor Modifications at quantities proposed in this pricing action enspenspenspenspensp
Minor modifications that exceed the thresholds in FAR 15403-1(c)(3)(iii)(B) are subject to the Certified Cost or Pricing Data requirements and must be proposed as described by FAR 15408 Table 152
|_| IV Commercial Items Support Services
Installation services maintenance services repair services training services and other services if -
(i) Such services are procured for support of an item referred to in Parts I II III or IV hereof regardless of whether such services are provided by the same source or at the same time as the item and
(ii) The source of such services provided similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government
If claiming Commercial Item Support Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services procured for the support of a commercial item which qualifies under a preceding part
|_| Yes|_| NO
Describe the nature of the services and how they support the commercial item enspenspenspenspensp
Are the services provided at the same time to the general public and the Federal Government
|_| Yes|_| NO
Are the terms and conditions for the services similar to those offered to the general public
|_| Yes|_| NO
Describe differences enspenspenspenspensp
Please provide data regarding
a Open and completed contracts including
b Pending offers including
|_| V Any Combination of Items
Meeting the requirements of Parts I II III or IV hereof that are of a type customarily combined and sold in combination to the general public
If you have checked the above box and are claiming the Any Combination of Items exemption please attach hereto information as requ3sted for Parts I II III and IV
|_| VI Other Commercial Services
Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions For purposes of these services -
(i) Catalog price means a price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor is either published or otherwise available for inspection by customers and states prices at which sales are currently or were last made to a significant number of buyers constituting the general public and
(ii) Market prices means current prices that are established in the course of ordinary trade between buyers and sellers free to bargain and that can be substantiated through competition or from source independent of the offerors
If claiming the Other Commercial Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services sold competitively in substantial quantities in the commercial marketplace
|_| Yes|_| NO
If no are the services of a type sold in substantial quantities in the commercial marketplace
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If yes what is the ldquotyperdquo of service enspenspenspenspensp
Summarize your support for same enspenspenspenspensp
Are the prices quoted for specific tasks performed or specific outcomes to be achieved
|_| Yes|_| NO
Are the services offered consistent with your standard terms and conditions
|_| Yes|_| NO
Are the services of a type sold at catalog or market prices
|_| Yes|_| NO
If sold at catalog price is the price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor
|_| Yes|_| NO
If sold at catalog price is the catalog or its equivalent either published or otherwise available for inspection by customers
|_| Yes|_| NO
Summarize your support for same (include a copy of the catalog or provide location) enspenspenspenspensp
If sold at a catalog price are the listed prices those at which sales are currently or were last made to a significant number of buyers in the general public
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If sold at a market price are the prices established in the course of ordinary trade between buyers and sellers free to bargain
|_| Yes|_| NO
Summarize you support for same enspenspenspenspensp
If sold at market price can the price be substantiated through competition or from sources independent of the offeror
|_| Yes|_| NO
Summarize your support for same
Please provide data regarding
(a) Open and completed contracts including
(b) Pending Offers including
|_| VII Any Item Combination of Items or Service
Referred to in Parts I through VI hereof notwithstanding the fact that the item combination of items or service is transferred between or among separate divisions subsidiaries or affiliates of the Offeror
If you have checked the above box and are claiming the ldquoAny item combination of items or Servicerdquo exemption please provide data regarding
|_| VIII Non-developmental Items
A non-developmental item as defined in FAR 2101 which has been developed exclusively at private expense and sold in substantial quantities on a competitive basis to multiple State and local governments
If claiming the Non-developmental Items exemption then the following must be provided
Key Inquiries and Summary of Supplierrsquos Supporting Information
Was the item previously developed
|_| Yes|_| NO
Was the item used exclusively for governmental purposes by a Federal agency a State or local government or a foreign government with which the United States has mutual defense cooperation agreement
|_| Yes|_| NO
If the item is to be modified do the modifications comply with Part III guidance on modifications
|_| Yes|_| NO
If the item is not yet in use does it otherwise qualify as a non-developmental item
|_| Yes|_| NO
Was the item developed exclusively at private expense
|_| Yes|_| NO
Is the item sold in substantial quantities on a competitive basis to multiple State and local governments
|_| Yes|_| NO
Please provide data regarding
|_| IX General Inquiries
Does the item qualify as a combination of items under Parts I II III and IV above
|_| Yes|_| NO
Has the item or services previously been determined to be commercial
|_| Yes|_| NO
If so by whom enspenspenspenspensp
|_| X Other Information
Is there other information of which you are aware that would supplement the information provided and would help substantiate whether the item or service is commercial
|_| Yes|_| NO
Have you provided such information
|_| Yes|_| NO
List such information enspenspenspenspensp
|_| XI Supplier Determination
Offeror hereby represents that the foregoing information is accurate and complete and that to the best of its knowledge information and belief goods and or services offered currently constitute ldquoa commercial itemrdquo as defined by FAR 2101
For PSEMC Internal Use Only
XII Supplier Determination
Supplier has claimed that the item component or service identified above is a commercial item under the definition at FAR 2101 I have reviewed and summarized the supplierrsquos support for that claim in the appropriate sections above Based on such review of such support information and any other information identified elsewhere herein I conclude that the supplier
|_| HAS |_| HAS NOT Supported its claim of commercial item status under the definition at FAR 2101
If the supplier HAS NOT supported its claim list reasons enspenspenspenspensp
Describe action plat to resolve enspenspenspenspensp
Comments enspenspenspenspensp
image1jpeg
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull This section of Table 15-2 describes the format an estimating approach we
are required to use when developing a proposal to modify an existingcontract In addition to the cost element breakdowns required as describedin the previous slides when there is a modification or change proposal FARalso requires the following table to be inserted into your proposal
41
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals
42FAR 15408 Table 15-2 III B
B Change Orders modifications and claims
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
Column 2 includes the cost of all work deleted This
includes cost of work deleted already performed (amount in Column 3) and
cost of work deleted not yet performed (Column 4)
Column 3 includes the cost of deleted work already
performed This amount will not be included in the credit (delete) adjustment amount (eg we will not give back costs already
incurred)
Column 4 includes cost for deleted work not yet performed ndash must be priced using current
estimates (but the current estimate may be the same as
the original estimate) ndash it is develed similar to a normal ldquoaddrdquo proposal with a few
exceptions
Column 5 includes the cost of the
new work and is developed as we do any
other proposal
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull Detail for columns listed on previous page
1 Enter appropriate cost element2 Enter current estimates of what it would take to complete the deleted work that
has not yet been performed3 Enter current cost of deleted work already performed This should be based on
actuals and copies to support these actuals should be included in the proposal4 Enter the net cost to be deleted (Column 2 minus Column 3)5 Enter your estimate for cost of work added by the change6 Enter the net cost of change (Column 5 minus Column 4)7 Identify where in your proposal the supporting documentation and basis of
estimate can be found for each of these sections
43FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull For purposes of determining if a proposal an cost or pricing data are
required from individual suppliers on a change proposal the absolute valueof the ldquodeleterdquo amount plus the ldquoaddrdquo amount is computed for each supplierthat exceeds the cost and pricing threshold (TINA)
bull Remember from FAR 15403-4(b) ndash if the absolute value for an individualsupplier exceeds the cost and pricing threshold (TINA) and the supplier iseither an actual supplier (will continue to provide partsservices on thiscontract) the supplier is required to provide a proposal and cost or pricingdata in support of the change proposal
bull Deleted amount is our current estimate (generally no the original contractvalue unless it is our current estimate)
44FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull If a supplierrsquos quantities are changing due to a modification the net delete
or add amount is used to determine if the supplier exceeds the cost andpricing threshold (TINA)
bull The estimator should not consider the old quantity as the delete and thenew quantity as the add (eg in computing absolute value) whendetermining if the supplier exceeds the threshold in cases where quantitiesare changing
bull The development of the appropriate deletion is not simply the estimatedcost of the deleted quantity ndash this will overstate the credit
45FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals Cost of WorkDeleted for a Partial Deleted Quantitybull In cases where part of a material quantity is being deleted (eg original
contract requires 100 widgets and the contract is modified to delete 30 ofthem) one method of estimating the amount of the delete is
1 Develop a current estimate of the extended cost for the item(s) given the originalquantity
2 Develop a current estimate of the extended cost for the items at the lower(remaining) quantity
3 The delta between these two values represents the amount of the delete
bull The same method can be used if the contract is modified to increase aquantity for a part
46FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklist
47
bull The Supplier Proposal Adequacy Checklist is accessed from the externalPSEMC supplier website
bull Additional supplier proposal guidance and resources are available(information templates and tools to assist in building a FAR compliantproposal
bull Supplier proposal guidance
bull Supplier Proposal Adequacy Guidelines
bull PSEMC document templates
bull Supplier proposal adequacy checklistbull Contract pricing proposal cover sheet
httpspsemccomsuppliers
- Strategic Affordability Analysis
- Purpose of this Guideline
- Table of Contents
- Table of Contents
- Supplier Proposal Adequacy Checklist
- Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
- Cover Sheet
- Cover Sheet Example ndash Reference Form DI-SUP-105F02
- Index
- Index Example
- Cost Element Breakdown by Line Item
- Cost Element Breakdown by Line Item Example
- Summary Cost Element Breakdown
- Summary Cost Element Breakdown - Example
- Summary Cost Element Breakdown - Example
- Material
- Material
- Individual Bills of Material Example
- Consolidated Bill of Material Example
- Consolidated Bill of Material
- Material
- Material
- Material
- Labor
- Labor
- Labor
- Labor Hours Example
- Labor Hours Example ndash Actual Production History
- Labor Hours Examples ndash Basis of Estimate
- Other Direct Costs (ODC)
- Nonrecurring Expenses (NRE)
- NRE
- Rates
- Rates
- Summary
- Summary
- Other Types of Proposals
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals Cost of WorkDeleted for a Partial Deleted Quantity
- Supplier Proposal Adequacy Checklist
-
| Buyer (Type or Print Name) | Date |
| Offeror | |||
| By | |||
| Title | |||
| Date |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp | ||
| (iii) Total number of customers involved in such sales | enspenspenspenspensp |
| (a) Transfer price(s) of such goods | $ enspenspenspenspensp | ||
| (b) Total units of such goods and or | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| Unmodified Items Identified in Part 1 | Modified Items Proposed to PSMEC | Unit Value of Modification | |||||||
| Unmodified Item | Unmodified Price | Modified Item | Modified Price to PSEMC | ||||||
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| To the general public in the time-frame beginning | enspenspenspenspensp | enspenspenspenspensp | and ending | enspenspenspenspensp |
| (a) Sales | |||||
| (b) Leases | |||||
| (c) Licenses | |||||
| (d) Offers to Sell 1 | |||||
| (e) Offers to Lease 2 | |||||
| (f) Offers to License 3 |
| Part Number | |||
| Description | |||
| Offeror |
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Consolidated Bill of Material Examplebull Below is an example of a consolidated BOM This BOM was developed by
taking the three individual BOMrsquos on the previous page and combining themtogetherbull In a consolidated BOM part numbers and quantities should be combined (or
subtotaled) if they are the same parts For example the BOMs for Part Nos ABCand ABB both require the same Connector and Screw In the consolidated BOMthe requirements have been combined and reflect the total number of Connectorsand Screws that will be needed for this proposal
19
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Consolidated Bill of Materialbull If the proposal is for a base year plus option years there needs to be a
consolidated BOM for each of the years at each of the points in the RFPrequiring cost or pricing
bull To determine if a subtier cost analysis is required you need to add togetherthe anticipated costs for each supplier for all years In the above examplethere are two suppliers that will require cost analysis (Ford and Motion)
20
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Supplier proposals
bull A cost analysis report is required if any of your suppliersrsquo proposals exceedthe Truth in Negotiations Act (TINA) threshold These need to be submittedwith your proposal
bull If the cost analysis for a supplier is not complete at the time of your proposalsubmittal a schedule listing the estimated completion dates for each supplierneeds to be provided in the proposal
bull If an exemption applies that eliminates the need for a cost analysis (commercial orcompetitively priced) documentation needs to be provided to support these claims
21FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull If you claim your supplier was competed and the value is over the TINA
threshold you will need to provide the following
bull Evidence that an RFP or solicitation to bid was sent to two or more supplierscapable of providing the goods or services requested
bull Copies of the quotes received from each of the suppliers who were competedbull Supplierrsquos analysis with basis of rationale for why the winning bid represents the best value
(lowest price technical considerations etc)
bull If you claim your supplierrsquos parts or services are commercial refer to thecommercial section in this document
22FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Refer to the detailed instructions in the RFP when your proposal supports a
base year plus options contract or a long term agreement Guidance shouldbe provided here on the consolidation and subtier requirements If youhave any questions regarding this contact your PSEMC Supply Chainrepresentative
bull Inter-organizational costs
bull Inter-organizational costs are defined as the costs of items transferred betweendivisions within the same company
bull If you have bid any inter-organizational costs in your proposal you will need toprovide a cost element breakdown for each inter-organizational transfer andsupport as appropriate
bull One more thing
bull If you have a supplier with a value in excess of $135 million or is greater than 10percent of your total proposal and exceeds the TINA threshold FAR 15408 Table15-2 requires that we submit the supplierrsquos proposal and cost or pricing data withour own proposal
23FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Provide a time-phased (eg monthly quarterly) breakdown of labor hours ratesand cost by appropriate category and furnish basis for estimates
24FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Proposed labor hours are generally a combination of direct and support laborhours
bull Direct Labor Hours ndash Hours that can be identified specifically to a final end itembull Support Labor Hours ndash Hours that cannot be specifically identified to one end item For
example a production manager may be in charge of overseeing the manufacturing ofmultiple parts
25FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull You need to provide a breakdown of the labor hours by labor category and
function along with a basis of estimate for the proposed labor hours
bull For example if you propose 500 hours for an end item you would need to providea breakdown by categoryfunction (assembly inspection supervisor engineeretc) You also will need to provide a detailed basis of estimate for eachcategoryfunction showing how your arrived at the hours for the proposed laborcategory
bull Generally the basis should be actual production history An alternative approach isthe use of engineering estimates if the item has not been manufactured before
bull Cost Accounting Standards (CAS) 401 requires that a company isconsistent between proposals and accounting practices The way acompany estimates its labor hours needs to also be the way it accumulatesits production history
26FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours ExampleProposal No HLQxxxxxDate January 1 20xx ABC Corporation
Labor HoursProposed Labor Hours ndash 8279 hrsunit for Part ABC
27
Direct Labor HrsUnitAssembly 3800 Machinist 350 QA 762 Engineer 1 238
Subtotal 5151
Production Support HrsUnitMfg Supervisor 920Eng Supervisor 368QA supervisor 920Production Mgr 920
Subtotal 3128
Total Hrs 8279
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Example ndash Actual Production History
28
ProposedDuration - Months 7 9 24 12 Qty 30 39 110 50 End Date 11152006 982007 912009
Direct Labor Total Hrs HrsUnit Total Hours HrsUnit Total Hrs HrsUnit Total Hrs HrsUnitAssembly 1836 6120 1675 4295 4338 3944 1900 3800 Machinist 169 564 154 396 400 363 175 350 QA 368 1238 336 862 870 791 381 762 Engineer 1 115 383 105 269 272 247 119 238
Production Support Total Hrs Total Hrs Total Hrs Total Hrs HrsUnitMFG Supervisor 268 345 920 460 920 Eng Supervisor 107 138 184 184 368 QA Supervisor 268 345 920 460 920 Production Mgr 268 345 920 460 920
HrsUnit 8279
Acutal Production History - Part ABC
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Examples ndash Basis of Estimatebull Basis of estimate for direct labor
bull Proposed direct labor hours were developed by apply a 90 percent learningcurve to the production labor history for part BBC You need to provide abasis for the 90 percent curve
bull Basis of estimate for the manufacturing supervisorbull The manufacturing supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 920 hours were used over a 24-month periodSince the current proposal has been estimated to cover 12 months 460hours were applied to the manufacturing supervisor (920 divided by 2)
bull Basis of estimate for engineering supervisorbull The engineering supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 184 hours were necessary to complete the taskThis task is similar and so we estimate 184 hours
29
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Direct Costs (ODC)bull List other expenses not otherwise included under material and labor (eg
travel freight) and provide basis for pricing
bull For example the basis for travel would include the location number of tripsnumber of people attending and the estimated expenses for the travel
30FAR 15408 Table 15-2 II D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Nonrecurring Expenses (NRE)bull NRE refers to one-time costs that you would not normally see from proposal
to proposal
bull Examples of NRE are as follows
bull Special Toolingbull New Equipmentbull Equipment Refurbishmentbull Hours and materials associated with increase throughput capacitybull Hours and materials to research develop design and test new processesbull One-Time review events
31FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
NREbull As mentioned earlier NRE charges must be broken out by cost element
This means the material and labor components associated with the NREare clearly broken out
bull Material ndash any material associated with NRE should be supported by supplierquotes or purchase orders
bull Labor ndash labor hours associated with NRE should have basis of estimates(BOE) that are broken down by labor category and include detaileddescriptions of the tasks that will be performed
32FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Rates include direct labor overhead general and administrative expenses
(GampA) and cost of money (COM)
bull PSEMC has the capability to perform rate audits on suppliers in lieu ofhaving the DCAA do this
bull If you allow PSEMC to perform this rate audit you need to provide thefollowing information
bull Explanation as to how the rates were calculatedbull Detailed documentation (financial statements labor pools listing of unallowable
expenses etc) that support the rate calculationsbull If the detailed documentation is based on budgetary numbers you will also need
to provide three years of your most current actuals to support you budgetarynumbers
bull If budgetary numbers differ significantly from the most recent actuals providedetailed explanations for these differences
33FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Facilities Capital COM
bull When you elect to claim COM submit a completed form CASB-CFM (FacilitiesCapital Cost of Money Factors Computation) in accordance with FAR 31205-10Also complete DD Form 1861 and include a copy in your proposal submissionBoth forms can be found on-line at various locations
34FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull In summary all noncompetitive noncommercial proposals valued at more
than the cost and pricing threshold (TINA) are required to include thefollowing information
35
Required Items Page FAR Reference
Supplier Proposal Adequacy Checklist Pg 5-6 PSEMC Policy
Cover Sheet - SF1411 or equivalent Pg 7-8 FAR 15408 Table 15-2 I A
Index Pg 9-10 FAR 15408 Table 15-2 I B
Cost Element Breakdown Pg 11-12 FAR 15408 Table 15-2 I D
Summary Cost Element Breakdown Pg 13-15 FAR 15408 Table 15-2 I E
Material (Including Consolidated BOM) Pg 16-23 FAR 15408 Table 15-2 II A
Labor Pg 24-29 FAR 15408 Table 15-2 II B
ODC Pg 30 FAR 15408 Table 15-2 II D
NRE Pg 31-32 FAR 15408 Table 15-2 II
Rates Pg 33-34 FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull Sufficient rationale and supporting documentation to support each of the
proposed cost elements is also required
bull Obtaining adequate supplier proposals is always on the critical path sincePSEMC cannot submit its proposal to the government until it has receivedadequate proposals from its subcontractors Therefore it is critical thatadequate supplier proposals are obtained as quickly as possible
36
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Types of Proposalsbull Commercial item proposals
bull Change proposals
bull The following slides are only applicable in certain situations
37
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you or one of your suppliers is providing a commercial part cost or pricing
data and a cost analysis is not required However you must demonstrate that the part is commercial and that the price is reasonable
bull A commercial item is any item other than real property that is a type customarily used by the general public or by a nongovernment entity
bull Has also been sold leased or licensed to the general public or has been offered for sale lease or license to the general public
bull A final commercial determination is made by the government contracting officer If the items is deemed to not be commercial the supplier is required to submit a complete proposal that includes cost and pricing data
38FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you claim one or more of your parts are commercial you need to support
your position by providing the following information
bull Copies of applicable portions of a company catalogue or website address that shows the item with a description and unit price
bull Show that these items can be purchased by the general public or nongovernmentalagency
bull If a website or catalogue is not available copies of invoices showing the sale of these items to nongovernment entities is sufficient
39FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull PSEMC policy requires suppliers to complete a PSEMC Supplier Proposal
Adequacy Checklist (sent with the RFP) for all proposals where the supplierclaims its parts are commercial
bull An example of the Supplier Proposal Adequacy Checklist for commercialitems is attached reference form DI-SUP-310F01
40PSEMC Policy
Pacific Scientific EMC ndash Commercial Item Status
If claiming an exemption offeror must provide the appropriate information to determine commerciality Refusal to provide the required information can result in an assist audit being requested from the Defense Contract Audit Agency or other cognizant Government Audit Agencies and or a determination that goods andor services offered do not constitute a ldquocommercial itemrdquo
Offeror hereby represents that to the best of its knowledge information and belief goods andor services offered constitute a ldquocommercial itemrdquo as defined by FAR 2101 because it constitutes
A Commercial Item or Component Justification (required for any claim)
Key Inquiries and Summary of your Supporting Information
What is the relevant ldquotyperdquo of item enspenspenspenspensp
What are the types of items uses by the general public or by non-governmental entities for other than governmental purposes enspenspenspenspensp
What indicates the type of itemrsquos use described above is customary enspenspenspenspensp
Has the offered item itself (as opposed to the type of item) been sold or offered for sale
|_| Yes|_| NO
Are the offered itemrsquos sales (or offers to sale) to the general public
|_| Yes|_| NO
Please provide data regarding sales leases or licenses of this item and identification of the non-government use entities
ValueNon-Government Use Entities
(date)(date)
In addition as an appendix to this commercial item determination provide supporting documentation in the form of
1that have not materialized into sales
2that have not materialized into leases
3that have not materialized into licenses
1 Verification of sales history to source documents
2 Identification of customarily offered discounts for the item
3 Verification of the item to an existing catalog or price list and
4 Verification of historical data for an item previously not determined commercial that the offeror is now trying to qualify as a commercial item
(check box(es) as appropriate)
|_| I Unmodified Commercial Items or Components (Complete Section A)
Any item other than real property that is a of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes and
(i) Has been sold leased or licensed to the general public or
(ii) Has been offered for sale lease or license to the general public
|_| II Item Evolved from Commercial Items or Components
Any item that evolved from an item described in Part I (which is required if claiming this exemption) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace but will be available in the commercial marketplace in time to satisfy the delivery requirements under a United States Government solicitation
If claiming the item Evolved from Commercial Items or Components exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use Part I)
|_| Yes|_| NO
If yes describe the relationship of the modifications to the Federal Government requirement enspenspenspenspensp
What are the advances in technology or performance between the offered item and the commercial item on which it is based enspenspenspenspensp
What is your support for such advances enspenspenspenspensp
What is your support for availability of the item in time to meet requirements Is the claim availability reasonable enspenspenspenspensp
Please provide data regarding
(a) Currently pending offers including
(b) Planned Offers Including
In all instances scheduled for delivery no later than the delivery requirements under the
(c) Data in the format of Part I for completed sales of the item from which the ldquocommercial itemrdquo evolved
|_| III Modified Commercial Items or Components
Any item that would satisfy a criterion expressed in Part I or II hereof but for -
|_| (i) Modifications of a type customarily available in the commercial marketplace
If claiming Modified Commercial Item or Components that are of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use part I or parts II and II)
|_| Yes|_| NO
What are the modifications that would be made to the commercial item enspenspenspenspensp
Are the modifications of a type customarily available in the commercial marketplace
|_| Yes|_| NO
Summarize your support for customary availability of the modification in the commercial marketplace enspenspenspenspensp
|_| (ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet federal government requirements ldquoMinor modificationsrdquo means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component or change the purpose of a process Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product Dollar values and percentages may be used as guideposts but are not conclusive evidence that a modification is minor
If claiming Modified Commercial Items or Components that are not of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Are the modifications made to satisfy Federal Government requirements
|_| Yes|_| NO
Do the modifications alter the nongovernmental function or essential physical characteristics of the item
|_| Yes|_| NO
If yes what are the alterations enspenspenspenspensp
Does the modified item retain a predominance of nongovernmental functions or physical characteristics
|_| Yes|_| NO
Summarize your support describing the value of the modifications in comparison to the value of the final product enspenspenspenspensp
Summarize your support for the magnitude or size of the modifications in relation to the magnitude or size of the final product enspenspenspenspensp
Are there any other factors which would allow you to conclude that the modifications are minor
|_| Yes|_| NO
If yes what are they enspenspenspenspensp
Based on the above does the modification qualify as a minor modification
|_| Yes|_| NO
Please provide data regarding the minor modification and the total price to PSEMC of Minor Modifications
Price to PSEMC of all Minor Modifications at quantities proposed in this pricing action enspenspenspenspensp
Minor modifications that exceed the thresholds in FAR 15403-1(c)(3)(iii)(B) are subject to the Certified Cost or Pricing Data requirements and must be proposed as described by FAR 15408 Table 152
|_| IV Commercial Items Support Services
Installation services maintenance services repair services training services and other services if -
(i) Such services are procured for support of an item referred to in Parts I II III or IV hereof regardless of whether such services are provided by the same source or at the same time as the item and
(ii) The source of such services provided similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government
If claiming Commercial Item Support Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services procured for the support of a commercial item which qualifies under a preceding part
|_| Yes|_| NO
Describe the nature of the services and how they support the commercial item enspenspenspenspensp
Are the services provided at the same time to the general public and the Federal Government
|_| Yes|_| NO
Are the terms and conditions for the services similar to those offered to the general public
|_| Yes|_| NO
Describe differences enspenspenspenspensp
Please provide data regarding
a Open and completed contracts including
b Pending offers including
|_| V Any Combination of Items
Meeting the requirements of Parts I II III or IV hereof that are of a type customarily combined and sold in combination to the general public
If you have checked the above box and are claiming the Any Combination of Items exemption please attach hereto information as requ3sted for Parts I II III and IV
|_| VI Other Commercial Services
Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions For purposes of these services -
(i) Catalog price means a price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor is either published or otherwise available for inspection by customers and states prices at which sales are currently or were last made to a significant number of buyers constituting the general public and
(ii) Market prices means current prices that are established in the course of ordinary trade between buyers and sellers free to bargain and that can be substantiated through competition or from source independent of the offerors
If claiming the Other Commercial Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services sold competitively in substantial quantities in the commercial marketplace
|_| Yes|_| NO
If no are the services of a type sold in substantial quantities in the commercial marketplace
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If yes what is the ldquotyperdquo of service enspenspenspenspensp
Summarize your support for same enspenspenspenspensp
Are the prices quoted for specific tasks performed or specific outcomes to be achieved
|_| Yes|_| NO
Are the services offered consistent with your standard terms and conditions
|_| Yes|_| NO
Are the services of a type sold at catalog or market prices
|_| Yes|_| NO
If sold at catalog price is the price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor
|_| Yes|_| NO
If sold at catalog price is the catalog or its equivalent either published or otherwise available for inspection by customers
|_| Yes|_| NO
Summarize your support for same (include a copy of the catalog or provide location) enspenspenspenspensp
If sold at a catalog price are the listed prices those at which sales are currently or were last made to a significant number of buyers in the general public
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If sold at a market price are the prices established in the course of ordinary trade between buyers and sellers free to bargain
|_| Yes|_| NO
Summarize you support for same enspenspenspenspensp
If sold at market price can the price be substantiated through competition or from sources independent of the offeror
|_| Yes|_| NO
Summarize your support for same
Please provide data regarding
(a) Open and completed contracts including
(b) Pending Offers including
|_| VII Any Item Combination of Items or Service
Referred to in Parts I through VI hereof notwithstanding the fact that the item combination of items or service is transferred between or among separate divisions subsidiaries or affiliates of the Offeror
If you have checked the above box and are claiming the ldquoAny item combination of items or Servicerdquo exemption please provide data regarding
|_| VIII Non-developmental Items
A non-developmental item as defined in FAR 2101 which has been developed exclusively at private expense and sold in substantial quantities on a competitive basis to multiple State and local governments
If claiming the Non-developmental Items exemption then the following must be provided
Key Inquiries and Summary of Supplierrsquos Supporting Information
Was the item previously developed
|_| Yes|_| NO
Was the item used exclusively for governmental purposes by a Federal agency a State or local government or a foreign government with which the United States has mutual defense cooperation agreement
|_| Yes|_| NO
If the item is to be modified do the modifications comply with Part III guidance on modifications
|_| Yes|_| NO
If the item is not yet in use does it otherwise qualify as a non-developmental item
|_| Yes|_| NO
Was the item developed exclusively at private expense
|_| Yes|_| NO
Is the item sold in substantial quantities on a competitive basis to multiple State and local governments
|_| Yes|_| NO
Please provide data regarding
|_| IX General Inquiries
Does the item qualify as a combination of items under Parts I II III and IV above
|_| Yes|_| NO
Has the item or services previously been determined to be commercial
|_| Yes|_| NO
If so by whom enspenspenspenspensp
|_| X Other Information
Is there other information of which you are aware that would supplement the information provided and would help substantiate whether the item or service is commercial
|_| Yes|_| NO
Have you provided such information
|_| Yes|_| NO
List such information enspenspenspenspensp
|_| XI Supplier Determination
Offeror hereby represents that the foregoing information is accurate and complete and that to the best of its knowledge information and belief goods and or services offered currently constitute ldquoa commercial itemrdquo as defined by FAR 2101
For PSEMC Internal Use Only
XII Supplier Determination
Supplier has claimed that the item component or service identified above is a commercial item under the definition at FAR 2101 I have reviewed and summarized the supplierrsquos support for that claim in the appropriate sections above Based on such review of such support information and any other information identified elsewhere herein I conclude that the supplier
|_| HAS |_| HAS NOT Supported its claim of commercial item status under the definition at FAR 2101
If the supplier HAS NOT supported its claim list reasons enspenspenspenspensp
Describe action plat to resolve enspenspenspenspensp
Comments enspenspenspenspensp
image1jpeg
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull This section of Table 15-2 describes the format an estimating approach we
are required to use when developing a proposal to modify an existingcontract In addition to the cost element breakdowns required as describedin the previous slides when there is a modification or change proposal FARalso requires the following table to be inserted into your proposal
41
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals
42FAR 15408 Table 15-2 III B
B Change Orders modifications and claims
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
Column 2 includes the cost of all work deleted This
includes cost of work deleted already performed (amount in Column 3) and
cost of work deleted not yet performed (Column 4)
Column 3 includes the cost of deleted work already
performed This amount will not be included in the credit (delete) adjustment amount (eg we will not give back costs already
incurred)
Column 4 includes cost for deleted work not yet performed ndash must be priced using current
estimates (but the current estimate may be the same as
the original estimate) ndash it is develed similar to a normal ldquoaddrdquo proposal with a few
exceptions
Column 5 includes the cost of the
new work and is developed as we do any
other proposal
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull Detail for columns listed on previous page
1 Enter appropriate cost element2 Enter current estimates of what it would take to complete the deleted work that
has not yet been performed3 Enter current cost of deleted work already performed This should be based on
actuals and copies to support these actuals should be included in the proposal4 Enter the net cost to be deleted (Column 2 minus Column 3)5 Enter your estimate for cost of work added by the change6 Enter the net cost of change (Column 5 minus Column 4)7 Identify where in your proposal the supporting documentation and basis of
estimate can be found for each of these sections
43FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull For purposes of determining if a proposal an cost or pricing data are
required from individual suppliers on a change proposal the absolute valueof the ldquodeleterdquo amount plus the ldquoaddrdquo amount is computed for each supplierthat exceeds the cost and pricing threshold (TINA)
bull Remember from FAR 15403-4(b) ndash if the absolute value for an individualsupplier exceeds the cost and pricing threshold (TINA) and the supplier iseither an actual supplier (will continue to provide partsservices on thiscontract) the supplier is required to provide a proposal and cost or pricingdata in support of the change proposal
bull Deleted amount is our current estimate (generally no the original contractvalue unless it is our current estimate)
44FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull If a supplierrsquos quantities are changing due to a modification the net delete
or add amount is used to determine if the supplier exceeds the cost andpricing threshold (TINA)
bull The estimator should not consider the old quantity as the delete and thenew quantity as the add (eg in computing absolute value) whendetermining if the supplier exceeds the threshold in cases where quantitiesare changing
bull The development of the appropriate deletion is not simply the estimatedcost of the deleted quantity ndash this will overstate the credit
45FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals Cost of WorkDeleted for a Partial Deleted Quantitybull In cases where part of a material quantity is being deleted (eg original
contract requires 100 widgets and the contract is modified to delete 30 ofthem) one method of estimating the amount of the delete is
1 Develop a current estimate of the extended cost for the item(s) given the originalquantity
2 Develop a current estimate of the extended cost for the items at the lower(remaining) quantity
3 The delta between these two values represents the amount of the delete
bull The same method can be used if the contract is modified to increase aquantity for a part
46FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklist
47
bull The Supplier Proposal Adequacy Checklist is accessed from the externalPSEMC supplier website
bull Additional supplier proposal guidance and resources are available(information templates and tools to assist in building a FAR compliantproposal
bull Supplier proposal guidance
bull Supplier Proposal Adequacy Guidelines
bull PSEMC document templates
bull Supplier proposal adequacy checklistbull Contract pricing proposal cover sheet
httpspsemccomsuppliers
- Strategic Affordability Analysis
- Purpose of this Guideline
- Table of Contents
- Table of Contents
- Supplier Proposal Adequacy Checklist
- Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
- Cover Sheet
- Cover Sheet Example ndash Reference Form DI-SUP-105F02
- Index
- Index Example
- Cost Element Breakdown by Line Item
- Cost Element Breakdown by Line Item Example
- Summary Cost Element Breakdown
- Summary Cost Element Breakdown - Example
- Summary Cost Element Breakdown - Example
- Material
- Material
- Individual Bills of Material Example
- Consolidated Bill of Material Example
- Consolidated Bill of Material
- Material
- Material
- Material
- Labor
- Labor
- Labor
- Labor Hours Example
- Labor Hours Example ndash Actual Production History
- Labor Hours Examples ndash Basis of Estimate
- Other Direct Costs (ODC)
- Nonrecurring Expenses (NRE)
- NRE
- Rates
- Rates
- Summary
- Summary
- Other Types of Proposals
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals Cost of WorkDeleted for a Partial Deleted Quantity
- Supplier Proposal Adequacy Checklist
-
| Buyer (Type or Print Name) | Date |
| Offeror | |||
| By | |||
| Title | |||
| Date |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp | ||
| (iii) Total number of customers involved in such sales | enspenspenspenspensp |
| (a) Transfer price(s) of such goods | $ enspenspenspenspensp | ||
| (b) Total units of such goods and or | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| Unmodified Items Identified in Part 1 | Modified Items Proposed to PSMEC | Unit Value of Modification | |||||||
| Unmodified Item | Unmodified Price | Modified Item | Modified Price to PSEMC | ||||||
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| To the general public in the time-frame beginning | enspenspenspenspensp | enspenspenspenspensp | and ending | enspenspenspenspensp |
| (a) Sales | |||||
| (b) Leases | |||||
| (c) Licenses | |||||
| (d) Offers to Sell 1 | |||||
| (e) Offers to Lease 2 | |||||
| (f) Offers to License 3 |
| Part Number | |||
| Description | |||
| Offeror |
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Consolidated Bill of Materialbull If the proposal is for a base year plus option years there needs to be a
consolidated BOM for each of the years at each of the points in the RFPrequiring cost or pricing
bull To determine if a subtier cost analysis is required you need to add togetherthe anticipated costs for each supplier for all years In the above examplethere are two suppliers that will require cost analysis (Ford and Motion)
20
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Supplier proposals
bull A cost analysis report is required if any of your suppliersrsquo proposals exceedthe Truth in Negotiations Act (TINA) threshold These need to be submittedwith your proposal
bull If the cost analysis for a supplier is not complete at the time of your proposalsubmittal a schedule listing the estimated completion dates for each supplierneeds to be provided in the proposal
bull If an exemption applies that eliminates the need for a cost analysis (commercial orcompetitively priced) documentation needs to be provided to support these claims
21FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull If you claim your supplier was competed and the value is over the TINA
threshold you will need to provide the following
bull Evidence that an RFP or solicitation to bid was sent to two or more supplierscapable of providing the goods or services requested
bull Copies of the quotes received from each of the suppliers who were competedbull Supplierrsquos analysis with basis of rationale for why the winning bid represents the best value
(lowest price technical considerations etc)
bull If you claim your supplierrsquos parts or services are commercial refer to thecommercial section in this document
22FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Refer to the detailed instructions in the RFP when your proposal supports a
base year plus options contract or a long term agreement Guidance shouldbe provided here on the consolidation and subtier requirements If youhave any questions regarding this contact your PSEMC Supply Chainrepresentative
bull Inter-organizational costs
bull Inter-organizational costs are defined as the costs of items transferred betweendivisions within the same company
bull If you have bid any inter-organizational costs in your proposal you will need toprovide a cost element breakdown for each inter-organizational transfer andsupport as appropriate
bull One more thing
bull If you have a supplier with a value in excess of $135 million or is greater than 10percent of your total proposal and exceeds the TINA threshold FAR 15408 Table15-2 requires that we submit the supplierrsquos proposal and cost or pricing data withour own proposal
23FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Provide a time-phased (eg monthly quarterly) breakdown of labor hours ratesand cost by appropriate category and furnish basis for estimates
24FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Proposed labor hours are generally a combination of direct and support laborhours
bull Direct Labor Hours ndash Hours that can be identified specifically to a final end itembull Support Labor Hours ndash Hours that cannot be specifically identified to one end item For
example a production manager may be in charge of overseeing the manufacturing ofmultiple parts
25FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull You need to provide a breakdown of the labor hours by labor category and
function along with a basis of estimate for the proposed labor hours
bull For example if you propose 500 hours for an end item you would need to providea breakdown by categoryfunction (assembly inspection supervisor engineeretc) You also will need to provide a detailed basis of estimate for eachcategoryfunction showing how your arrived at the hours for the proposed laborcategory
bull Generally the basis should be actual production history An alternative approach isthe use of engineering estimates if the item has not been manufactured before
bull Cost Accounting Standards (CAS) 401 requires that a company isconsistent between proposals and accounting practices The way acompany estimates its labor hours needs to also be the way it accumulatesits production history
26FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours ExampleProposal No HLQxxxxxDate January 1 20xx ABC Corporation
Labor HoursProposed Labor Hours ndash 8279 hrsunit for Part ABC
27
Direct Labor HrsUnitAssembly 3800 Machinist 350 QA 762 Engineer 1 238
Subtotal 5151
Production Support HrsUnitMfg Supervisor 920Eng Supervisor 368QA supervisor 920Production Mgr 920
Subtotal 3128
Total Hrs 8279
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Example ndash Actual Production History
28
ProposedDuration - Months 7 9 24 12 Qty 30 39 110 50 End Date 11152006 982007 912009
Direct Labor Total Hrs HrsUnit Total Hours HrsUnit Total Hrs HrsUnit Total Hrs HrsUnitAssembly 1836 6120 1675 4295 4338 3944 1900 3800 Machinist 169 564 154 396 400 363 175 350 QA 368 1238 336 862 870 791 381 762 Engineer 1 115 383 105 269 272 247 119 238
Production Support Total Hrs Total Hrs Total Hrs Total Hrs HrsUnitMFG Supervisor 268 345 920 460 920 Eng Supervisor 107 138 184 184 368 QA Supervisor 268 345 920 460 920 Production Mgr 268 345 920 460 920
HrsUnit 8279
Acutal Production History - Part ABC
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Examples ndash Basis of Estimatebull Basis of estimate for direct labor
bull Proposed direct labor hours were developed by apply a 90 percent learningcurve to the production labor history for part BBC You need to provide abasis for the 90 percent curve
bull Basis of estimate for the manufacturing supervisorbull The manufacturing supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 920 hours were used over a 24-month periodSince the current proposal has been estimated to cover 12 months 460hours were applied to the manufacturing supervisor (920 divided by 2)
bull Basis of estimate for engineering supervisorbull The engineering supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 184 hours were necessary to complete the taskThis task is similar and so we estimate 184 hours
29
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Direct Costs (ODC)bull List other expenses not otherwise included under material and labor (eg
travel freight) and provide basis for pricing
bull For example the basis for travel would include the location number of tripsnumber of people attending and the estimated expenses for the travel
30FAR 15408 Table 15-2 II D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Nonrecurring Expenses (NRE)bull NRE refers to one-time costs that you would not normally see from proposal
to proposal
bull Examples of NRE are as follows
bull Special Toolingbull New Equipmentbull Equipment Refurbishmentbull Hours and materials associated with increase throughput capacitybull Hours and materials to research develop design and test new processesbull One-Time review events
31FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
NREbull As mentioned earlier NRE charges must be broken out by cost element
This means the material and labor components associated with the NREare clearly broken out
bull Material ndash any material associated with NRE should be supported by supplierquotes or purchase orders
bull Labor ndash labor hours associated with NRE should have basis of estimates(BOE) that are broken down by labor category and include detaileddescriptions of the tasks that will be performed
32FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Rates include direct labor overhead general and administrative expenses
(GampA) and cost of money (COM)
bull PSEMC has the capability to perform rate audits on suppliers in lieu ofhaving the DCAA do this
bull If you allow PSEMC to perform this rate audit you need to provide thefollowing information
bull Explanation as to how the rates were calculatedbull Detailed documentation (financial statements labor pools listing of unallowable
expenses etc) that support the rate calculationsbull If the detailed documentation is based on budgetary numbers you will also need
to provide three years of your most current actuals to support you budgetarynumbers
bull If budgetary numbers differ significantly from the most recent actuals providedetailed explanations for these differences
33FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Facilities Capital COM
bull When you elect to claim COM submit a completed form CASB-CFM (FacilitiesCapital Cost of Money Factors Computation) in accordance with FAR 31205-10Also complete DD Form 1861 and include a copy in your proposal submissionBoth forms can be found on-line at various locations
34FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull In summary all noncompetitive noncommercial proposals valued at more
than the cost and pricing threshold (TINA) are required to include thefollowing information
35
Required Items Page FAR Reference
Supplier Proposal Adequacy Checklist Pg 5-6 PSEMC Policy
Cover Sheet - SF1411 or equivalent Pg 7-8 FAR 15408 Table 15-2 I A
Index Pg 9-10 FAR 15408 Table 15-2 I B
Cost Element Breakdown Pg 11-12 FAR 15408 Table 15-2 I D
Summary Cost Element Breakdown Pg 13-15 FAR 15408 Table 15-2 I E
Material (Including Consolidated BOM) Pg 16-23 FAR 15408 Table 15-2 II A
Labor Pg 24-29 FAR 15408 Table 15-2 II B
ODC Pg 30 FAR 15408 Table 15-2 II D
NRE Pg 31-32 FAR 15408 Table 15-2 II
Rates Pg 33-34 FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull Sufficient rationale and supporting documentation to support each of the
proposed cost elements is also required
bull Obtaining adequate supplier proposals is always on the critical path sincePSEMC cannot submit its proposal to the government until it has receivedadequate proposals from its subcontractors Therefore it is critical thatadequate supplier proposals are obtained as quickly as possible
36
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Types of Proposalsbull Commercial item proposals
bull Change proposals
bull The following slides are only applicable in certain situations
37
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you or one of your suppliers is providing a commercial part cost or pricing
data and a cost analysis is not required However you must demonstrate that the part is commercial and that the price is reasonable
bull A commercial item is any item other than real property that is a type customarily used by the general public or by a nongovernment entity
bull Has also been sold leased or licensed to the general public or has been offered for sale lease or license to the general public
bull A final commercial determination is made by the government contracting officer If the items is deemed to not be commercial the supplier is required to submit a complete proposal that includes cost and pricing data
38FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you claim one or more of your parts are commercial you need to support
your position by providing the following information
bull Copies of applicable portions of a company catalogue or website address that shows the item with a description and unit price
bull Show that these items can be purchased by the general public or nongovernmentalagency
bull If a website or catalogue is not available copies of invoices showing the sale of these items to nongovernment entities is sufficient
39FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull PSEMC policy requires suppliers to complete a PSEMC Supplier Proposal
Adequacy Checklist (sent with the RFP) for all proposals where the supplierclaims its parts are commercial
bull An example of the Supplier Proposal Adequacy Checklist for commercialitems is attached reference form DI-SUP-310F01
40PSEMC Policy
Pacific Scientific EMC ndash Commercial Item Status
If claiming an exemption offeror must provide the appropriate information to determine commerciality Refusal to provide the required information can result in an assist audit being requested from the Defense Contract Audit Agency or other cognizant Government Audit Agencies and or a determination that goods andor services offered do not constitute a ldquocommercial itemrdquo
Offeror hereby represents that to the best of its knowledge information and belief goods andor services offered constitute a ldquocommercial itemrdquo as defined by FAR 2101 because it constitutes
A Commercial Item or Component Justification (required for any claim)
Key Inquiries and Summary of your Supporting Information
What is the relevant ldquotyperdquo of item enspenspenspenspensp
What are the types of items uses by the general public or by non-governmental entities for other than governmental purposes enspenspenspenspensp
What indicates the type of itemrsquos use described above is customary enspenspenspenspensp
Has the offered item itself (as opposed to the type of item) been sold or offered for sale
|_| Yes|_| NO
Are the offered itemrsquos sales (or offers to sale) to the general public
|_| Yes|_| NO
Please provide data regarding sales leases or licenses of this item and identification of the non-government use entities
ValueNon-Government Use Entities
(date)(date)
In addition as an appendix to this commercial item determination provide supporting documentation in the form of
1that have not materialized into sales
2that have not materialized into leases
3that have not materialized into licenses
1 Verification of sales history to source documents
2 Identification of customarily offered discounts for the item
3 Verification of the item to an existing catalog or price list and
4 Verification of historical data for an item previously not determined commercial that the offeror is now trying to qualify as a commercial item
(check box(es) as appropriate)
|_| I Unmodified Commercial Items or Components (Complete Section A)
Any item other than real property that is a of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes and
(i) Has been sold leased or licensed to the general public or
(ii) Has been offered for sale lease or license to the general public
|_| II Item Evolved from Commercial Items or Components
Any item that evolved from an item described in Part I (which is required if claiming this exemption) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace but will be available in the commercial marketplace in time to satisfy the delivery requirements under a United States Government solicitation
If claiming the item Evolved from Commercial Items or Components exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use Part I)
|_| Yes|_| NO
If yes describe the relationship of the modifications to the Federal Government requirement enspenspenspenspensp
What are the advances in technology or performance between the offered item and the commercial item on which it is based enspenspenspenspensp
What is your support for such advances enspenspenspenspensp
What is your support for availability of the item in time to meet requirements Is the claim availability reasonable enspenspenspenspensp
Please provide data regarding
(a) Currently pending offers including
(b) Planned Offers Including
In all instances scheduled for delivery no later than the delivery requirements under the
(c) Data in the format of Part I for completed sales of the item from which the ldquocommercial itemrdquo evolved
|_| III Modified Commercial Items or Components
Any item that would satisfy a criterion expressed in Part I or II hereof but for -
|_| (i) Modifications of a type customarily available in the commercial marketplace
If claiming Modified Commercial Item or Components that are of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use part I or parts II and II)
|_| Yes|_| NO
What are the modifications that would be made to the commercial item enspenspenspenspensp
Are the modifications of a type customarily available in the commercial marketplace
|_| Yes|_| NO
Summarize your support for customary availability of the modification in the commercial marketplace enspenspenspenspensp
|_| (ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet federal government requirements ldquoMinor modificationsrdquo means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component or change the purpose of a process Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product Dollar values and percentages may be used as guideposts but are not conclusive evidence that a modification is minor
If claiming Modified Commercial Items or Components that are not of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Are the modifications made to satisfy Federal Government requirements
|_| Yes|_| NO
Do the modifications alter the nongovernmental function or essential physical characteristics of the item
|_| Yes|_| NO
If yes what are the alterations enspenspenspenspensp
Does the modified item retain a predominance of nongovernmental functions or physical characteristics
|_| Yes|_| NO
Summarize your support describing the value of the modifications in comparison to the value of the final product enspenspenspenspensp
Summarize your support for the magnitude or size of the modifications in relation to the magnitude or size of the final product enspenspenspenspensp
Are there any other factors which would allow you to conclude that the modifications are minor
|_| Yes|_| NO
If yes what are they enspenspenspenspensp
Based on the above does the modification qualify as a minor modification
|_| Yes|_| NO
Please provide data regarding the minor modification and the total price to PSEMC of Minor Modifications
Price to PSEMC of all Minor Modifications at quantities proposed in this pricing action enspenspenspenspensp
Minor modifications that exceed the thresholds in FAR 15403-1(c)(3)(iii)(B) are subject to the Certified Cost or Pricing Data requirements and must be proposed as described by FAR 15408 Table 152
|_| IV Commercial Items Support Services
Installation services maintenance services repair services training services and other services if -
(i) Such services are procured for support of an item referred to in Parts I II III or IV hereof regardless of whether such services are provided by the same source or at the same time as the item and
(ii) The source of such services provided similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government
If claiming Commercial Item Support Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services procured for the support of a commercial item which qualifies under a preceding part
|_| Yes|_| NO
Describe the nature of the services and how they support the commercial item enspenspenspenspensp
Are the services provided at the same time to the general public and the Federal Government
|_| Yes|_| NO
Are the terms and conditions for the services similar to those offered to the general public
|_| Yes|_| NO
Describe differences enspenspenspenspensp
Please provide data regarding
a Open and completed contracts including
b Pending offers including
|_| V Any Combination of Items
Meeting the requirements of Parts I II III or IV hereof that are of a type customarily combined and sold in combination to the general public
If you have checked the above box and are claiming the Any Combination of Items exemption please attach hereto information as requ3sted for Parts I II III and IV
|_| VI Other Commercial Services
Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions For purposes of these services -
(i) Catalog price means a price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor is either published or otherwise available for inspection by customers and states prices at which sales are currently or were last made to a significant number of buyers constituting the general public and
(ii) Market prices means current prices that are established in the course of ordinary trade between buyers and sellers free to bargain and that can be substantiated through competition or from source independent of the offerors
If claiming the Other Commercial Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services sold competitively in substantial quantities in the commercial marketplace
|_| Yes|_| NO
If no are the services of a type sold in substantial quantities in the commercial marketplace
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If yes what is the ldquotyperdquo of service enspenspenspenspensp
Summarize your support for same enspenspenspenspensp
Are the prices quoted for specific tasks performed or specific outcomes to be achieved
|_| Yes|_| NO
Are the services offered consistent with your standard terms and conditions
|_| Yes|_| NO
Are the services of a type sold at catalog or market prices
|_| Yes|_| NO
If sold at catalog price is the price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor
|_| Yes|_| NO
If sold at catalog price is the catalog or its equivalent either published or otherwise available for inspection by customers
|_| Yes|_| NO
Summarize your support for same (include a copy of the catalog or provide location) enspenspenspenspensp
If sold at a catalog price are the listed prices those at which sales are currently or were last made to a significant number of buyers in the general public
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If sold at a market price are the prices established in the course of ordinary trade between buyers and sellers free to bargain
|_| Yes|_| NO
Summarize you support for same enspenspenspenspensp
If sold at market price can the price be substantiated through competition or from sources independent of the offeror
|_| Yes|_| NO
Summarize your support for same
Please provide data regarding
(a) Open and completed contracts including
(b) Pending Offers including
|_| VII Any Item Combination of Items or Service
Referred to in Parts I through VI hereof notwithstanding the fact that the item combination of items or service is transferred between or among separate divisions subsidiaries or affiliates of the Offeror
If you have checked the above box and are claiming the ldquoAny item combination of items or Servicerdquo exemption please provide data regarding
|_| VIII Non-developmental Items
A non-developmental item as defined in FAR 2101 which has been developed exclusively at private expense and sold in substantial quantities on a competitive basis to multiple State and local governments
If claiming the Non-developmental Items exemption then the following must be provided
Key Inquiries and Summary of Supplierrsquos Supporting Information
Was the item previously developed
|_| Yes|_| NO
Was the item used exclusively for governmental purposes by a Federal agency a State or local government or a foreign government with which the United States has mutual defense cooperation agreement
|_| Yes|_| NO
If the item is to be modified do the modifications comply with Part III guidance on modifications
|_| Yes|_| NO
If the item is not yet in use does it otherwise qualify as a non-developmental item
|_| Yes|_| NO
Was the item developed exclusively at private expense
|_| Yes|_| NO
Is the item sold in substantial quantities on a competitive basis to multiple State and local governments
|_| Yes|_| NO
Please provide data regarding
|_| IX General Inquiries
Does the item qualify as a combination of items under Parts I II III and IV above
|_| Yes|_| NO
Has the item or services previously been determined to be commercial
|_| Yes|_| NO
If so by whom enspenspenspenspensp
|_| X Other Information
Is there other information of which you are aware that would supplement the information provided and would help substantiate whether the item or service is commercial
|_| Yes|_| NO
Have you provided such information
|_| Yes|_| NO
List such information enspenspenspenspensp
|_| XI Supplier Determination
Offeror hereby represents that the foregoing information is accurate and complete and that to the best of its knowledge information and belief goods and or services offered currently constitute ldquoa commercial itemrdquo as defined by FAR 2101
For PSEMC Internal Use Only
XII Supplier Determination
Supplier has claimed that the item component or service identified above is a commercial item under the definition at FAR 2101 I have reviewed and summarized the supplierrsquos support for that claim in the appropriate sections above Based on such review of such support information and any other information identified elsewhere herein I conclude that the supplier
|_| HAS |_| HAS NOT Supported its claim of commercial item status under the definition at FAR 2101
If the supplier HAS NOT supported its claim list reasons enspenspenspenspensp
Describe action plat to resolve enspenspenspenspensp
Comments enspenspenspenspensp
image1jpeg
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull This section of Table 15-2 describes the format an estimating approach we
are required to use when developing a proposal to modify an existingcontract In addition to the cost element breakdowns required as describedin the previous slides when there is a modification or change proposal FARalso requires the following table to be inserted into your proposal
41
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals
42FAR 15408 Table 15-2 III B
B Change Orders modifications and claims
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
Column 2 includes the cost of all work deleted This
includes cost of work deleted already performed (amount in Column 3) and
cost of work deleted not yet performed (Column 4)
Column 3 includes the cost of deleted work already
performed This amount will not be included in the credit (delete) adjustment amount (eg we will not give back costs already
incurred)
Column 4 includes cost for deleted work not yet performed ndash must be priced using current
estimates (but the current estimate may be the same as
the original estimate) ndash it is develed similar to a normal ldquoaddrdquo proposal with a few
exceptions
Column 5 includes the cost of the
new work and is developed as we do any
other proposal
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull Detail for columns listed on previous page
1 Enter appropriate cost element2 Enter current estimates of what it would take to complete the deleted work that
has not yet been performed3 Enter current cost of deleted work already performed This should be based on
actuals and copies to support these actuals should be included in the proposal4 Enter the net cost to be deleted (Column 2 minus Column 3)5 Enter your estimate for cost of work added by the change6 Enter the net cost of change (Column 5 minus Column 4)7 Identify where in your proposal the supporting documentation and basis of
estimate can be found for each of these sections
43FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull For purposes of determining if a proposal an cost or pricing data are
required from individual suppliers on a change proposal the absolute valueof the ldquodeleterdquo amount plus the ldquoaddrdquo amount is computed for each supplierthat exceeds the cost and pricing threshold (TINA)
bull Remember from FAR 15403-4(b) ndash if the absolute value for an individualsupplier exceeds the cost and pricing threshold (TINA) and the supplier iseither an actual supplier (will continue to provide partsservices on thiscontract) the supplier is required to provide a proposal and cost or pricingdata in support of the change proposal
bull Deleted amount is our current estimate (generally no the original contractvalue unless it is our current estimate)
44FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull If a supplierrsquos quantities are changing due to a modification the net delete
or add amount is used to determine if the supplier exceeds the cost andpricing threshold (TINA)
bull The estimator should not consider the old quantity as the delete and thenew quantity as the add (eg in computing absolute value) whendetermining if the supplier exceeds the threshold in cases where quantitiesare changing
bull The development of the appropriate deletion is not simply the estimatedcost of the deleted quantity ndash this will overstate the credit
45FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals Cost of WorkDeleted for a Partial Deleted Quantitybull In cases where part of a material quantity is being deleted (eg original
contract requires 100 widgets and the contract is modified to delete 30 ofthem) one method of estimating the amount of the delete is
1 Develop a current estimate of the extended cost for the item(s) given the originalquantity
2 Develop a current estimate of the extended cost for the items at the lower(remaining) quantity
3 The delta between these two values represents the amount of the delete
bull The same method can be used if the contract is modified to increase aquantity for a part
46FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklist
47
bull The Supplier Proposal Adequacy Checklist is accessed from the externalPSEMC supplier website
bull Additional supplier proposal guidance and resources are available(information templates and tools to assist in building a FAR compliantproposal
bull Supplier proposal guidance
bull Supplier Proposal Adequacy Guidelines
bull PSEMC document templates
bull Supplier proposal adequacy checklistbull Contract pricing proposal cover sheet
httpspsemccomsuppliers
- Strategic Affordability Analysis
- Purpose of this Guideline
- Table of Contents
- Table of Contents
- Supplier Proposal Adequacy Checklist
- Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
- Cover Sheet
- Cover Sheet Example ndash Reference Form DI-SUP-105F02
- Index
- Index Example
- Cost Element Breakdown by Line Item
- Cost Element Breakdown by Line Item Example
- Summary Cost Element Breakdown
- Summary Cost Element Breakdown - Example
- Summary Cost Element Breakdown - Example
- Material
- Material
- Individual Bills of Material Example
- Consolidated Bill of Material Example
- Consolidated Bill of Material
- Material
- Material
- Material
- Labor
- Labor
- Labor
- Labor Hours Example
- Labor Hours Example ndash Actual Production History
- Labor Hours Examples ndash Basis of Estimate
- Other Direct Costs (ODC)
- Nonrecurring Expenses (NRE)
- NRE
- Rates
- Rates
- Summary
- Summary
- Other Types of Proposals
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals Cost of WorkDeleted for a Partial Deleted Quantity
- Supplier Proposal Adequacy Checklist
-
| Buyer (Type or Print Name) | Date |
| Offeror | |||
| By | |||
| Title | |||
| Date |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp | ||
| (iii) Total number of customers involved in such sales | enspenspenspenspensp |
| (a) Transfer price(s) of such goods | $ enspenspenspenspensp | ||
| (b) Total units of such goods and or | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| Unmodified Items Identified in Part 1 | Modified Items Proposed to PSMEC | Unit Value of Modification | |||||||
| Unmodified Item | Unmodified Price | Modified Item | Modified Price to PSEMC | ||||||
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| To the general public in the time-frame beginning | enspenspenspenspensp | enspenspenspenspensp | and ending | enspenspenspenspensp |
| (a) Sales | |||||
| (b) Leases | |||||
| (c) Licenses | |||||
| (d) Offers to Sell 1 | |||||
| (e) Offers to Lease 2 | |||||
| (f) Offers to License 3 |
| Part Number | |||
| Description | |||
| Offeror |
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Supplier proposals
bull A cost analysis report is required if any of your suppliersrsquo proposals exceedthe Truth in Negotiations Act (TINA) threshold These need to be submittedwith your proposal
bull If the cost analysis for a supplier is not complete at the time of your proposalsubmittal a schedule listing the estimated completion dates for each supplierneeds to be provided in the proposal
bull If an exemption applies that eliminates the need for a cost analysis (commercial orcompetitively priced) documentation needs to be provided to support these claims
21FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull If you claim your supplier was competed and the value is over the TINA
threshold you will need to provide the following
bull Evidence that an RFP or solicitation to bid was sent to two or more supplierscapable of providing the goods or services requested
bull Copies of the quotes received from each of the suppliers who were competedbull Supplierrsquos analysis with basis of rationale for why the winning bid represents the best value
(lowest price technical considerations etc)
bull If you claim your supplierrsquos parts or services are commercial refer to thecommercial section in this document
22FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Refer to the detailed instructions in the RFP when your proposal supports a
base year plus options contract or a long term agreement Guidance shouldbe provided here on the consolidation and subtier requirements If youhave any questions regarding this contact your PSEMC Supply Chainrepresentative
bull Inter-organizational costs
bull Inter-organizational costs are defined as the costs of items transferred betweendivisions within the same company
bull If you have bid any inter-organizational costs in your proposal you will need toprovide a cost element breakdown for each inter-organizational transfer andsupport as appropriate
bull One more thing
bull If you have a supplier with a value in excess of $135 million or is greater than 10percent of your total proposal and exceeds the TINA threshold FAR 15408 Table15-2 requires that we submit the supplierrsquos proposal and cost or pricing data withour own proposal
23FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Provide a time-phased (eg monthly quarterly) breakdown of labor hours ratesand cost by appropriate category and furnish basis for estimates
24FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Proposed labor hours are generally a combination of direct and support laborhours
bull Direct Labor Hours ndash Hours that can be identified specifically to a final end itembull Support Labor Hours ndash Hours that cannot be specifically identified to one end item For
example a production manager may be in charge of overseeing the manufacturing ofmultiple parts
25FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull You need to provide a breakdown of the labor hours by labor category and
function along with a basis of estimate for the proposed labor hours
bull For example if you propose 500 hours for an end item you would need to providea breakdown by categoryfunction (assembly inspection supervisor engineeretc) You also will need to provide a detailed basis of estimate for eachcategoryfunction showing how your arrived at the hours for the proposed laborcategory
bull Generally the basis should be actual production history An alternative approach isthe use of engineering estimates if the item has not been manufactured before
bull Cost Accounting Standards (CAS) 401 requires that a company isconsistent between proposals and accounting practices The way acompany estimates its labor hours needs to also be the way it accumulatesits production history
26FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours ExampleProposal No HLQxxxxxDate January 1 20xx ABC Corporation
Labor HoursProposed Labor Hours ndash 8279 hrsunit for Part ABC
27
Direct Labor HrsUnitAssembly 3800 Machinist 350 QA 762 Engineer 1 238
Subtotal 5151
Production Support HrsUnitMfg Supervisor 920Eng Supervisor 368QA supervisor 920Production Mgr 920
Subtotal 3128
Total Hrs 8279
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Example ndash Actual Production History
28
ProposedDuration - Months 7 9 24 12 Qty 30 39 110 50 End Date 11152006 982007 912009
Direct Labor Total Hrs HrsUnit Total Hours HrsUnit Total Hrs HrsUnit Total Hrs HrsUnitAssembly 1836 6120 1675 4295 4338 3944 1900 3800 Machinist 169 564 154 396 400 363 175 350 QA 368 1238 336 862 870 791 381 762 Engineer 1 115 383 105 269 272 247 119 238
Production Support Total Hrs Total Hrs Total Hrs Total Hrs HrsUnitMFG Supervisor 268 345 920 460 920 Eng Supervisor 107 138 184 184 368 QA Supervisor 268 345 920 460 920 Production Mgr 268 345 920 460 920
HrsUnit 8279
Acutal Production History - Part ABC
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Examples ndash Basis of Estimatebull Basis of estimate for direct labor
bull Proposed direct labor hours were developed by apply a 90 percent learningcurve to the production labor history for part BBC You need to provide abasis for the 90 percent curve
bull Basis of estimate for the manufacturing supervisorbull The manufacturing supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 920 hours were used over a 24-month periodSince the current proposal has been estimated to cover 12 months 460hours were applied to the manufacturing supervisor (920 divided by 2)
bull Basis of estimate for engineering supervisorbull The engineering supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 184 hours were necessary to complete the taskThis task is similar and so we estimate 184 hours
29
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Direct Costs (ODC)bull List other expenses not otherwise included under material and labor (eg
travel freight) and provide basis for pricing
bull For example the basis for travel would include the location number of tripsnumber of people attending and the estimated expenses for the travel
30FAR 15408 Table 15-2 II D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Nonrecurring Expenses (NRE)bull NRE refers to one-time costs that you would not normally see from proposal
to proposal
bull Examples of NRE are as follows
bull Special Toolingbull New Equipmentbull Equipment Refurbishmentbull Hours and materials associated with increase throughput capacitybull Hours and materials to research develop design and test new processesbull One-Time review events
31FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
NREbull As mentioned earlier NRE charges must be broken out by cost element
This means the material and labor components associated with the NREare clearly broken out
bull Material ndash any material associated with NRE should be supported by supplierquotes or purchase orders
bull Labor ndash labor hours associated with NRE should have basis of estimates(BOE) that are broken down by labor category and include detaileddescriptions of the tasks that will be performed
32FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Rates include direct labor overhead general and administrative expenses
(GampA) and cost of money (COM)
bull PSEMC has the capability to perform rate audits on suppliers in lieu ofhaving the DCAA do this
bull If you allow PSEMC to perform this rate audit you need to provide thefollowing information
bull Explanation as to how the rates were calculatedbull Detailed documentation (financial statements labor pools listing of unallowable
expenses etc) that support the rate calculationsbull If the detailed documentation is based on budgetary numbers you will also need
to provide three years of your most current actuals to support you budgetarynumbers
bull If budgetary numbers differ significantly from the most recent actuals providedetailed explanations for these differences
33FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Facilities Capital COM
bull When you elect to claim COM submit a completed form CASB-CFM (FacilitiesCapital Cost of Money Factors Computation) in accordance with FAR 31205-10Also complete DD Form 1861 and include a copy in your proposal submissionBoth forms can be found on-line at various locations
34FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull In summary all noncompetitive noncommercial proposals valued at more
than the cost and pricing threshold (TINA) are required to include thefollowing information
35
Required Items Page FAR Reference
Supplier Proposal Adequacy Checklist Pg 5-6 PSEMC Policy
Cover Sheet - SF1411 or equivalent Pg 7-8 FAR 15408 Table 15-2 I A
Index Pg 9-10 FAR 15408 Table 15-2 I B
Cost Element Breakdown Pg 11-12 FAR 15408 Table 15-2 I D
Summary Cost Element Breakdown Pg 13-15 FAR 15408 Table 15-2 I E
Material (Including Consolidated BOM) Pg 16-23 FAR 15408 Table 15-2 II A
Labor Pg 24-29 FAR 15408 Table 15-2 II B
ODC Pg 30 FAR 15408 Table 15-2 II D
NRE Pg 31-32 FAR 15408 Table 15-2 II
Rates Pg 33-34 FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull Sufficient rationale and supporting documentation to support each of the
proposed cost elements is also required
bull Obtaining adequate supplier proposals is always on the critical path sincePSEMC cannot submit its proposal to the government until it has receivedadequate proposals from its subcontractors Therefore it is critical thatadequate supplier proposals are obtained as quickly as possible
36
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Types of Proposalsbull Commercial item proposals
bull Change proposals
bull The following slides are only applicable in certain situations
37
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you or one of your suppliers is providing a commercial part cost or pricing
data and a cost analysis is not required However you must demonstrate that the part is commercial and that the price is reasonable
bull A commercial item is any item other than real property that is a type customarily used by the general public or by a nongovernment entity
bull Has also been sold leased or licensed to the general public or has been offered for sale lease or license to the general public
bull A final commercial determination is made by the government contracting officer If the items is deemed to not be commercial the supplier is required to submit a complete proposal that includes cost and pricing data
38FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you claim one or more of your parts are commercial you need to support
your position by providing the following information
bull Copies of applicable portions of a company catalogue or website address that shows the item with a description and unit price
bull Show that these items can be purchased by the general public or nongovernmentalagency
bull If a website or catalogue is not available copies of invoices showing the sale of these items to nongovernment entities is sufficient
39FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull PSEMC policy requires suppliers to complete a PSEMC Supplier Proposal
Adequacy Checklist (sent with the RFP) for all proposals where the supplierclaims its parts are commercial
bull An example of the Supplier Proposal Adequacy Checklist for commercialitems is attached reference form DI-SUP-310F01
40PSEMC Policy
Pacific Scientific EMC ndash Commercial Item Status
If claiming an exemption offeror must provide the appropriate information to determine commerciality Refusal to provide the required information can result in an assist audit being requested from the Defense Contract Audit Agency or other cognizant Government Audit Agencies and or a determination that goods andor services offered do not constitute a ldquocommercial itemrdquo
Offeror hereby represents that to the best of its knowledge information and belief goods andor services offered constitute a ldquocommercial itemrdquo as defined by FAR 2101 because it constitutes
A Commercial Item or Component Justification (required for any claim)
Key Inquiries and Summary of your Supporting Information
What is the relevant ldquotyperdquo of item enspenspenspenspensp
What are the types of items uses by the general public or by non-governmental entities for other than governmental purposes enspenspenspenspensp
What indicates the type of itemrsquos use described above is customary enspenspenspenspensp
Has the offered item itself (as opposed to the type of item) been sold or offered for sale
|_| Yes|_| NO
Are the offered itemrsquos sales (or offers to sale) to the general public
|_| Yes|_| NO
Please provide data regarding sales leases or licenses of this item and identification of the non-government use entities
ValueNon-Government Use Entities
(date)(date)
In addition as an appendix to this commercial item determination provide supporting documentation in the form of
1that have not materialized into sales
2that have not materialized into leases
3that have not materialized into licenses
1 Verification of sales history to source documents
2 Identification of customarily offered discounts for the item
3 Verification of the item to an existing catalog or price list and
4 Verification of historical data for an item previously not determined commercial that the offeror is now trying to qualify as a commercial item
(check box(es) as appropriate)
|_| I Unmodified Commercial Items or Components (Complete Section A)
Any item other than real property that is a of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes and
(i) Has been sold leased or licensed to the general public or
(ii) Has been offered for sale lease or license to the general public
|_| II Item Evolved from Commercial Items or Components
Any item that evolved from an item described in Part I (which is required if claiming this exemption) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace but will be available in the commercial marketplace in time to satisfy the delivery requirements under a United States Government solicitation
If claiming the item Evolved from Commercial Items or Components exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use Part I)
|_| Yes|_| NO
If yes describe the relationship of the modifications to the Federal Government requirement enspenspenspenspensp
What are the advances in technology or performance between the offered item and the commercial item on which it is based enspenspenspenspensp
What is your support for such advances enspenspenspenspensp
What is your support for availability of the item in time to meet requirements Is the claim availability reasonable enspenspenspenspensp
Please provide data regarding
(a) Currently pending offers including
(b) Planned Offers Including
In all instances scheduled for delivery no later than the delivery requirements under the
(c) Data in the format of Part I for completed sales of the item from which the ldquocommercial itemrdquo evolved
|_| III Modified Commercial Items or Components
Any item that would satisfy a criterion expressed in Part I or II hereof but for -
|_| (i) Modifications of a type customarily available in the commercial marketplace
If claiming Modified Commercial Item or Components that are of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use part I or parts II and II)
|_| Yes|_| NO
What are the modifications that would be made to the commercial item enspenspenspenspensp
Are the modifications of a type customarily available in the commercial marketplace
|_| Yes|_| NO
Summarize your support for customary availability of the modification in the commercial marketplace enspenspenspenspensp
|_| (ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet federal government requirements ldquoMinor modificationsrdquo means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component or change the purpose of a process Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product Dollar values and percentages may be used as guideposts but are not conclusive evidence that a modification is minor
If claiming Modified Commercial Items or Components that are not of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Are the modifications made to satisfy Federal Government requirements
|_| Yes|_| NO
Do the modifications alter the nongovernmental function or essential physical characteristics of the item
|_| Yes|_| NO
If yes what are the alterations enspenspenspenspensp
Does the modified item retain a predominance of nongovernmental functions or physical characteristics
|_| Yes|_| NO
Summarize your support describing the value of the modifications in comparison to the value of the final product enspenspenspenspensp
Summarize your support for the magnitude or size of the modifications in relation to the magnitude or size of the final product enspenspenspenspensp
Are there any other factors which would allow you to conclude that the modifications are minor
|_| Yes|_| NO
If yes what are they enspenspenspenspensp
Based on the above does the modification qualify as a minor modification
|_| Yes|_| NO
Please provide data regarding the minor modification and the total price to PSEMC of Minor Modifications
Price to PSEMC of all Minor Modifications at quantities proposed in this pricing action enspenspenspenspensp
Minor modifications that exceed the thresholds in FAR 15403-1(c)(3)(iii)(B) are subject to the Certified Cost or Pricing Data requirements and must be proposed as described by FAR 15408 Table 152
|_| IV Commercial Items Support Services
Installation services maintenance services repair services training services and other services if -
(i) Such services are procured for support of an item referred to in Parts I II III or IV hereof regardless of whether such services are provided by the same source or at the same time as the item and
(ii) The source of such services provided similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government
If claiming Commercial Item Support Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services procured for the support of a commercial item which qualifies under a preceding part
|_| Yes|_| NO
Describe the nature of the services and how they support the commercial item enspenspenspenspensp
Are the services provided at the same time to the general public and the Federal Government
|_| Yes|_| NO
Are the terms and conditions for the services similar to those offered to the general public
|_| Yes|_| NO
Describe differences enspenspenspenspensp
Please provide data regarding
a Open and completed contracts including
b Pending offers including
|_| V Any Combination of Items
Meeting the requirements of Parts I II III or IV hereof that are of a type customarily combined and sold in combination to the general public
If you have checked the above box and are claiming the Any Combination of Items exemption please attach hereto information as requ3sted for Parts I II III and IV
|_| VI Other Commercial Services
Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions For purposes of these services -
(i) Catalog price means a price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor is either published or otherwise available for inspection by customers and states prices at which sales are currently or were last made to a significant number of buyers constituting the general public and
(ii) Market prices means current prices that are established in the course of ordinary trade between buyers and sellers free to bargain and that can be substantiated through competition or from source independent of the offerors
If claiming the Other Commercial Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services sold competitively in substantial quantities in the commercial marketplace
|_| Yes|_| NO
If no are the services of a type sold in substantial quantities in the commercial marketplace
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If yes what is the ldquotyperdquo of service enspenspenspenspensp
Summarize your support for same enspenspenspenspensp
Are the prices quoted for specific tasks performed or specific outcomes to be achieved
|_| Yes|_| NO
Are the services offered consistent with your standard terms and conditions
|_| Yes|_| NO
Are the services of a type sold at catalog or market prices
|_| Yes|_| NO
If sold at catalog price is the price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor
|_| Yes|_| NO
If sold at catalog price is the catalog or its equivalent either published or otherwise available for inspection by customers
|_| Yes|_| NO
Summarize your support for same (include a copy of the catalog or provide location) enspenspenspenspensp
If sold at a catalog price are the listed prices those at which sales are currently or were last made to a significant number of buyers in the general public
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If sold at a market price are the prices established in the course of ordinary trade between buyers and sellers free to bargain
|_| Yes|_| NO
Summarize you support for same enspenspenspenspensp
If sold at market price can the price be substantiated through competition or from sources independent of the offeror
|_| Yes|_| NO
Summarize your support for same
Please provide data regarding
(a) Open and completed contracts including
(b) Pending Offers including
|_| VII Any Item Combination of Items or Service
Referred to in Parts I through VI hereof notwithstanding the fact that the item combination of items or service is transferred between or among separate divisions subsidiaries or affiliates of the Offeror
If you have checked the above box and are claiming the ldquoAny item combination of items or Servicerdquo exemption please provide data regarding
|_| VIII Non-developmental Items
A non-developmental item as defined in FAR 2101 which has been developed exclusively at private expense and sold in substantial quantities on a competitive basis to multiple State and local governments
If claiming the Non-developmental Items exemption then the following must be provided
Key Inquiries and Summary of Supplierrsquos Supporting Information
Was the item previously developed
|_| Yes|_| NO
Was the item used exclusively for governmental purposes by a Federal agency a State or local government or a foreign government with which the United States has mutual defense cooperation agreement
|_| Yes|_| NO
If the item is to be modified do the modifications comply with Part III guidance on modifications
|_| Yes|_| NO
If the item is not yet in use does it otherwise qualify as a non-developmental item
|_| Yes|_| NO
Was the item developed exclusively at private expense
|_| Yes|_| NO
Is the item sold in substantial quantities on a competitive basis to multiple State and local governments
|_| Yes|_| NO
Please provide data regarding
|_| IX General Inquiries
Does the item qualify as a combination of items under Parts I II III and IV above
|_| Yes|_| NO
Has the item or services previously been determined to be commercial
|_| Yes|_| NO
If so by whom enspenspenspenspensp
|_| X Other Information
Is there other information of which you are aware that would supplement the information provided and would help substantiate whether the item or service is commercial
|_| Yes|_| NO
Have you provided such information
|_| Yes|_| NO
List such information enspenspenspenspensp
|_| XI Supplier Determination
Offeror hereby represents that the foregoing information is accurate and complete and that to the best of its knowledge information and belief goods and or services offered currently constitute ldquoa commercial itemrdquo as defined by FAR 2101
For PSEMC Internal Use Only
XII Supplier Determination
Supplier has claimed that the item component or service identified above is a commercial item under the definition at FAR 2101 I have reviewed and summarized the supplierrsquos support for that claim in the appropriate sections above Based on such review of such support information and any other information identified elsewhere herein I conclude that the supplier
|_| HAS |_| HAS NOT Supported its claim of commercial item status under the definition at FAR 2101
If the supplier HAS NOT supported its claim list reasons enspenspenspenspensp
Describe action plat to resolve enspenspenspenspensp
Comments enspenspenspenspensp
image1jpeg
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull This section of Table 15-2 describes the format an estimating approach we
are required to use when developing a proposal to modify an existingcontract In addition to the cost element breakdowns required as describedin the previous slides when there is a modification or change proposal FARalso requires the following table to be inserted into your proposal
41
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals
42FAR 15408 Table 15-2 III B
B Change Orders modifications and claims
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
Column 2 includes the cost of all work deleted This
includes cost of work deleted already performed (amount in Column 3) and
cost of work deleted not yet performed (Column 4)
Column 3 includes the cost of deleted work already
performed This amount will not be included in the credit (delete) adjustment amount (eg we will not give back costs already
incurred)
Column 4 includes cost for deleted work not yet performed ndash must be priced using current
estimates (but the current estimate may be the same as
the original estimate) ndash it is develed similar to a normal ldquoaddrdquo proposal with a few
exceptions
Column 5 includes the cost of the
new work and is developed as we do any
other proposal
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull Detail for columns listed on previous page
1 Enter appropriate cost element2 Enter current estimates of what it would take to complete the deleted work that
has not yet been performed3 Enter current cost of deleted work already performed This should be based on
actuals and copies to support these actuals should be included in the proposal4 Enter the net cost to be deleted (Column 2 minus Column 3)5 Enter your estimate for cost of work added by the change6 Enter the net cost of change (Column 5 minus Column 4)7 Identify where in your proposal the supporting documentation and basis of
estimate can be found for each of these sections
43FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull For purposes of determining if a proposal an cost or pricing data are
required from individual suppliers on a change proposal the absolute valueof the ldquodeleterdquo amount plus the ldquoaddrdquo amount is computed for each supplierthat exceeds the cost and pricing threshold (TINA)
bull Remember from FAR 15403-4(b) ndash if the absolute value for an individualsupplier exceeds the cost and pricing threshold (TINA) and the supplier iseither an actual supplier (will continue to provide partsservices on thiscontract) the supplier is required to provide a proposal and cost or pricingdata in support of the change proposal
bull Deleted amount is our current estimate (generally no the original contractvalue unless it is our current estimate)
44FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull If a supplierrsquos quantities are changing due to a modification the net delete
or add amount is used to determine if the supplier exceeds the cost andpricing threshold (TINA)
bull The estimator should not consider the old quantity as the delete and thenew quantity as the add (eg in computing absolute value) whendetermining if the supplier exceeds the threshold in cases where quantitiesare changing
bull The development of the appropriate deletion is not simply the estimatedcost of the deleted quantity ndash this will overstate the credit
45FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals Cost of WorkDeleted for a Partial Deleted Quantitybull In cases where part of a material quantity is being deleted (eg original
contract requires 100 widgets and the contract is modified to delete 30 ofthem) one method of estimating the amount of the delete is
1 Develop a current estimate of the extended cost for the item(s) given the originalquantity
2 Develop a current estimate of the extended cost for the items at the lower(remaining) quantity
3 The delta between these two values represents the amount of the delete
bull The same method can be used if the contract is modified to increase aquantity for a part
46FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklist
47
bull The Supplier Proposal Adequacy Checklist is accessed from the externalPSEMC supplier website
bull Additional supplier proposal guidance and resources are available(information templates and tools to assist in building a FAR compliantproposal
bull Supplier proposal guidance
bull Supplier Proposal Adequacy Guidelines
bull PSEMC document templates
bull Supplier proposal adequacy checklistbull Contract pricing proposal cover sheet
httpspsemccomsuppliers
- Strategic Affordability Analysis
- Purpose of this Guideline
- Table of Contents
- Table of Contents
- Supplier Proposal Adequacy Checklist
- Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
- Cover Sheet
- Cover Sheet Example ndash Reference Form DI-SUP-105F02
- Index
- Index Example
- Cost Element Breakdown by Line Item
- Cost Element Breakdown by Line Item Example
- Summary Cost Element Breakdown
- Summary Cost Element Breakdown - Example
- Summary Cost Element Breakdown - Example
- Material
- Material
- Individual Bills of Material Example
- Consolidated Bill of Material Example
- Consolidated Bill of Material
- Material
- Material
- Material
- Labor
- Labor
- Labor
- Labor Hours Example
- Labor Hours Example ndash Actual Production History
- Labor Hours Examples ndash Basis of Estimate
- Other Direct Costs (ODC)
- Nonrecurring Expenses (NRE)
- NRE
- Rates
- Rates
- Summary
- Summary
- Other Types of Proposals
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals Cost of WorkDeleted for a Partial Deleted Quantity
- Supplier Proposal Adequacy Checklist
-
| Buyer (Type or Print Name) | Date |
| Offeror | |||
| By | |||
| Title | |||
| Date |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp | ||
| (iii) Total number of customers involved in such sales | enspenspenspenspensp |
| (a) Transfer price(s) of such goods | $ enspenspenspenspensp | ||
| (b) Total units of such goods and or | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| Unmodified Items Identified in Part 1 | Modified Items Proposed to PSMEC | Unit Value of Modification | |||||||
| Unmodified Item | Unmodified Price | Modified Item | Modified Price to PSEMC | ||||||
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| To the general public in the time-frame beginning | enspenspenspenspensp | enspenspenspenspensp | and ending | enspenspenspenspensp |
| (a) Sales | |||||
| (b) Leases | |||||
| (c) Licenses | |||||
| (d) Offers to Sell 1 | |||||
| (e) Offers to Lease 2 | |||||
| (f) Offers to License 3 |
| Part Number | |||
| Description | |||
| Offeror |
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull If you claim your supplier was competed and the value is over the TINA
threshold you will need to provide the following
bull Evidence that an RFP or solicitation to bid was sent to two or more supplierscapable of providing the goods or services requested
bull Copies of the quotes received from each of the suppliers who were competedbull Supplierrsquos analysis with basis of rationale for why the winning bid represents the best value
(lowest price technical considerations etc)
bull If you claim your supplierrsquos parts or services are commercial refer to thecommercial section in this document
22FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Refer to the detailed instructions in the RFP when your proposal supports a
base year plus options contract or a long term agreement Guidance shouldbe provided here on the consolidation and subtier requirements If youhave any questions regarding this contact your PSEMC Supply Chainrepresentative
bull Inter-organizational costs
bull Inter-organizational costs are defined as the costs of items transferred betweendivisions within the same company
bull If you have bid any inter-organizational costs in your proposal you will need toprovide a cost element breakdown for each inter-organizational transfer andsupport as appropriate
bull One more thing
bull If you have a supplier with a value in excess of $135 million or is greater than 10percent of your total proposal and exceeds the TINA threshold FAR 15408 Table15-2 requires that we submit the supplierrsquos proposal and cost or pricing data withour own proposal
23FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Provide a time-phased (eg monthly quarterly) breakdown of labor hours ratesand cost by appropriate category and furnish basis for estimates
24FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Proposed labor hours are generally a combination of direct and support laborhours
bull Direct Labor Hours ndash Hours that can be identified specifically to a final end itembull Support Labor Hours ndash Hours that cannot be specifically identified to one end item For
example a production manager may be in charge of overseeing the manufacturing ofmultiple parts
25FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull You need to provide a breakdown of the labor hours by labor category and
function along with a basis of estimate for the proposed labor hours
bull For example if you propose 500 hours for an end item you would need to providea breakdown by categoryfunction (assembly inspection supervisor engineeretc) You also will need to provide a detailed basis of estimate for eachcategoryfunction showing how your arrived at the hours for the proposed laborcategory
bull Generally the basis should be actual production history An alternative approach isthe use of engineering estimates if the item has not been manufactured before
bull Cost Accounting Standards (CAS) 401 requires that a company isconsistent between proposals and accounting practices The way acompany estimates its labor hours needs to also be the way it accumulatesits production history
26FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours ExampleProposal No HLQxxxxxDate January 1 20xx ABC Corporation
Labor HoursProposed Labor Hours ndash 8279 hrsunit for Part ABC
27
Direct Labor HrsUnitAssembly 3800 Machinist 350 QA 762 Engineer 1 238
Subtotal 5151
Production Support HrsUnitMfg Supervisor 920Eng Supervisor 368QA supervisor 920Production Mgr 920
Subtotal 3128
Total Hrs 8279
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Example ndash Actual Production History
28
ProposedDuration - Months 7 9 24 12 Qty 30 39 110 50 End Date 11152006 982007 912009
Direct Labor Total Hrs HrsUnit Total Hours HrsUnit Total Hrs HrsUnit Total Hrs HrsUnitAssembly 1836 6120 1675 4295 4338 3944 1900 3800 Machinist 169 564 154 396 400 363 175 350 QA 368 1238 336 862 870 791 381 762 Engineer 1 115 383 105 269 272 247 119 238
Production Support Total Hrs Total Hrs Total Hrs Total Hrs HrsUnitMFG Supervisor 268 345 920 460 920 Eng Supervisor 107 138 184 184 368 QA Supervisor 268 345 920 460 920 Production Mgr 268 345 920 460 920
HrsUnit 8279
Acutal Production History - Part ABC
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Examples ndash Basis of Estimatebull Basis of estimate for direct labor
bull Proposed direct labor hours were developed by apply a 90 percent learningcurve to the production labor history for part BBC You need to provide abasis for the 90 percent curve
bull Basis of estimate for the manufacturing supervisorbull The manufacturing supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 920 hours were used over a 24-month periodSince the current proposal has been estimated to cover 12 months 460hours were applied to the manufacturing supervisor (920 divided by 2)
bull Basis of estimate for engineering supervisorbull The engineering supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 184 hours were necessary to complete the taskThis task is similar and so we estimate 184 hours
29
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Direct Costs (ODC)bull List other expenses not otherwise included under material and labor (eg
travel freight) and provide basis for pricing
bull For example the basis for travel would include the location number of tripsnumber of people attending and the estimated expenses for the travel
30FAR 15408 Table 15-2 II D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Nonrecurring Expenses (NRE)bull NRE refers to one-time costs that you would not normally see from proposal
to proposal
bull Examples of NRE are as follows
bull Special Toolingbull New Equipmentbull Equipment Refurbishmentbull Hours and materials associated with increase throughput capacitybull Hours and materials to research develop design and test new processesbull One-Time review events
31FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
NREbull As mentioned earlier NRE charges must be broken out by cost element
This means the material and labor components associated with the NREare clearly broken out
bull Material ndash any material associated with NRE should be supported by supplierquotes or purchase orders
bull Labor ndash labor hours associated with NRE should have basis of estimates(BOE) that are broken down by labor category and include detaileddescriptions of the tasks that will be performed
32FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Rates include direct labor overhead general and administrative expenses
(GampA) and cost of money (COM)
bull PSEMC has the capability to perform rate audits on suppliers in lieu ofhaving the DCAA do this
bull If you allow PSEMC to perform this rate audit you need to provide thefollowing information
bull Explanation as to how the rates were calculatedbull Detailed documentation (financial statements labor pools listing of unallowable
expenses etc) that support the rate calculationsbull If the detailed documentation is based on budgetary numbers you will also need
to provide three years of your most current actuals to support you budgetarynumbers
bull If budgetary numbers differ significantly from the most recent actuals providedetailed explanations for these differences
33FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Facilities Capital COM
bull When you elect to claim COM submit a completed form CASB-CFM (FacilitiesCapital Cost of Money Factors Computation) in accordance with FAR 31205-10Also complete DD Form 1861 and include a copy in your proposal submissionBoth forms can be found on-line at various locations
34FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull In summary all noncompetitive noncommercial proposals valued at more
than the cost and pricing threshold (TINA) are required to include thefollowing information
35
Required Items Page FAR Reference
Supplier Proposal Adequacy Checklist Pg 5-6 PSEMC Policy
Cover Sheet - SF1411 or equivalent Pg 7-8 FAR 15408 Table 15-2 I A
Index Pg 9-10 FAR 15408 Table 15-2 I B
Cost Element Breakdown Pg 11-12 FAR 15408 Table 15-2 I D
Summary Cost Element Breakdown Pg 13-15 FAR 15408 Table 15-2 I E
Material (Including Consolidated BOM) Pg 16-23 FAR 15408 Table 15-2 II A
Labor Pg 24-29 FAR 15408 Table 15-2 II B
ODC Pg 30 FAR 15408 Table 15-2 II D
NRE Pg 31-32 FAR 15408 Table 15-2 II
Rates Pg 33-34 FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull Sufficient rationale and supporting documentation to support each of the
proposed cost elements is also required
bull Obtaining adequate supplier proposals is always on the critical path sincePSEMC cannot submit its proposal to the government until it has receivedadequate proposals from its subcontractors Therefore it is critical thatadequate supplier proposals are obtained as quickly as possible
36
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Types of Proposalsbull Commercial item proposals
bull Change proposals
bull The following slides are only applicable in certain situations
37
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you or one of your suppliers is providing a commercial part cost or pricing
data and a cost analysis is not required However you must demonstrate that the part is commercial and that the price is reasonable
bull A commercial item is any item other than real property that is a type customarily used by the general public or by a nongovernment entity
bull Has also been sold leased or licensed to the general public or has been offered for sale lease or license to the general public
bull A final commercial determination is made by the government contracting officer If the items is deemed to not be commercial the supplier is required to submit a complete proposal that includes cost and pricing data
38FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you claim one or more of your parts are commercial you need to support
your position by providing the following information
bull Copies of applicable portions of a company catalogue or website address that shows the item with a description and unit price
bull Show that these items can be purchased by the general public or nongovernmentalagency
bull If a website or catalogue is not available copies of invoices showing the sale of these items to nongovernment entities is sufficient
39FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull PSEMC policy requires suppliers to complete a PSEMC Supplier Proposal
Adequacy Checklist (sent with the RFP) for all proposals where the supplierclaims its parts are commercial
bull An example of the Supplier Proposal Adequacy Checklist for commercialitems is attached reference form DI-SUP-310F01
40PSEMC Policy
Pacific Scientific EMC ndash Commercial Item Status
If claiming an exemption offeror must provide the appropriate information to determine commerciality Refusal to provide the required information can result in an assist audit being requested from the Defense Contract Audit Agency or other cognizant Government Audit Agencies and or a determination that goods andor services offered do not constitute a ldquocommercial itemrdquo
Offeror hereby represents that to the best of its knowledge information and belief goods andor services offered constitute a ldquocommercial itemrdquo as defined by FAR 2101 because it constitutes
A Commercial Item or Component Justification (required for any claim)
Key Inquiries and Summary of your Supporting Information
What is the relevant ldquotyperdquo of item enspenspenspenspensp
What are the types of items uses by the general public or by non-governmental entities for other than governmental purposes enspenspenspenspensp
What indicates the type of itemrsquos use described above is customary enspenspenspenspensp
Has the offered item itself (as opposed to the type of item) been sold or offered for sale
|_| Yes|_| NO
Are the offered itemrsquos sales (or offers to sale) to the general public
|_| Yes|_| NO
Please provide data regarding sales leases or licenses of this item and identification of the non-government use entities
ValueNon-Government Use Entities
(date)(date)
In addition as an appendix to this commercial item determination provide supporting documentation in the form of
1that have not materialized into sales
2that have not materialized into leases
3that have not materialized into licenses
1 Verification of sales history to source documents
2 Identification of customarily offered discounts for the item
3 Verification of the item to an existing catalog or price list and
4 Verification of historical data for an item previously not determined commercial that the offeror is now trying to qualify as a commercial item
(check box(es) as appropriate)
|_| I Unmodified Commercial Items or Components (Complete Section A)
Any item other than real property that is a of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes and
(i) Has been sold leased or licensed to the general public or
(ii) Has been offered for sale lease or license to the general public
|_| II Item Evolved from Commercial Items or Components
Any item that evolved from an item described in Part I (which is required if claiming this exemption) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace but will be available in the commercial marketplace in time to satisfy the delivery requirements under a United States Government solicitation
If claiming the item Evolved from Commercial Items or Components exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use Part I)
|_| Yes|_| NO
If yes describe the relationship of the modifications to the Federal Government requirement enspenspenspenspensp
What are the advances in technology or performance between the offered item and the commercial item on which it is based enspenspenspenspensp
What is your support for such advances enspenspenspenspensp
What is your support for availability of the item in time to meet requirements Is the claim availability reasonable enspenspenspenspensp
Please provide data regarding
(a) Currently pending offers including
(b) Planned Offers Including
In all instances scheduled for delivery no later than the delivery requirements under the
(c) Data in the format of Part I for completed sales of the item from which the ldquocommercial itemrdquo evolved
|_| III Modified Commercial Items or Components
Any item that would satisfy a criterion expressed in Part I or II hereof but for -
|_| (i) Modifications of a type customarily available in the commercial marketplace
If claiming Modified Commercial Item or Components that are of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use part I or parts II and II)
|_| Yes|_| NO
What are the modifications that would be made to the commercial item enspenspenspenspensp
Are the modifications of a type customarily available in the commercial marketplace
|_| Yes|_| NO
Summarize your support for customary availability of the modification in the commercial marketplace enspenspenspenspensp
|_| (ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet federal government requirements ldquoMinor modificationsrdquo means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component or change the purpose of a process Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product Dollar values and percentages may be used as guideposts but are not conclusive evidence that a modification is minor
If claiming Modified Commercial Items or Components that are not of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Are the modifications made to satisfy Federal Government requirements
|_| Yes|_| NO
Do the modifications alter the nongovernmental function or essential physical characteristics of the item
|_| Yes|_| NO
If yes what are the alterations enspenspenspenspensp
Does the modified item retain a predominance of nongovernmental functions or physical characteristics
|_| Yes|_| NO
Summarize your support describing the value of the modifications in comparison to the value of the final product enspenspenspenspensp
Summarize your support for the magnitude or size of the modifications in relation to the magnitude or size of the final product enspenspenspenspensp
Are there any other factors which would allow you to conclude that the modifications are minor
|_| Yes|_| NO
If yes what are they enspenspenspenspensp
Based on the above does the modification qualify as a minor modification
|_| Yes|_| NO
Please provide data regarding the minor modification and the total price to PSEMC of Minor Modifications
Price to PSEMC of all Minor Modifications at quantities proposed in this pricing action enspenspenspenspensp
Minor modifications that exceed the thresholds in FAR 15403-1(c)(3)(iii)(B) are subject to the Certified Cost or Pricing Data requirements and must be proposed as described by FAR 15408 Table 152
|_| IV Commercial Items Support Services
Installation services maintenance services repair services training services and other services if -
(i) Such services are procured for support of an item referred to in Parts I II III or IV hereof regardless of whether such services are provided by the same source or at the same time as the item and
(ii) The source of such services provided similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government
If claiming Commercial Item Support Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services procured for the support of a commercial item which qualifies under a preceding part
|_| Yes|_| NO
Describe the nature of the services and how they support the commercial item enspenspenspenspensp
Are the services provided at the same time to the general public and the Federal Government
|_| Yes|_| NO
Are the terms and conditions for the services similar to those offered to the general public
|_| Yes|_| NO
Describe differences enspenspenspenspensp
Please provide data regarding
a Open and completed contracts including
b Pending offers including
|_| V Any Combination of Items
Meeting the requirements of Parts I II III or IV hereof that are of a type customarily combined and sold in combination to the general public
If you have checked the above box and are claiming the Any Combination of Items exemption please attach hereto information as requ3sted for Parts I II III and IV
|_| VI Other Commercial Services
Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions For purposes of these services -
(i) Catalog price means a price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor is either published or otherwise available for inspection by customers and states prices at which sales are currently or were last made to a significant number of buyers constituting the general public and
(ii) Market prices means current prices that are established in the course of ordinary trade between buyers and sellers free to bargain and that can be substantiated through competition or from source independent of the offerors
If claiming the Other Commercial Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services sold competitively in substantial quantities in the commercial marketplace
|_| Yes|_| NO
If no are the services of a type sold in substantial quantities in the commercial marketplace
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If yes what is the ldquotyperdquo of service enspenspenspenspensp
Summarize your support for same enspenspenspenspensp
Are the prices quoted for specific tasks performed or specific outcomes to be achieved
|_| Yes|_| NO
Are the services offered consistent with your standard terms and conditions
|_| Yes|_| NO
Are the services of a type sold at catalog or market prices
|_| Yes|_| NO
If sold at catalog price is the price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor
|_| Yes|_| NO
If sold at catalog price is the catalog or its equivalent either published or otherwise available for inspection by customers
|_| Yes|_| NO
Summarize your support for same (include a copy of the catalog or provide location) enspenspenspenspensp
If sold at a catalog price are the listed prices those at which sales are currently or were last made to a significant number of buyers in the general public
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If sold at a market price are the prices established in the course of ordinary trade between buyers and sellers free to bargain
|_| Yes|_| NO
Summarize you support for same enspenspenspenspensp
If sold at market price can the price be substantiated through competition or from sources independent of the offeror
|_| Yes|_| NO
Summarize your support for same
Please provide data regarding
(a) Open and completed contracts including
(b) Pending Offers including
|_| VII Any Item Combination of Items or Service
Referred to in Parts I through VI hereof notwithstanding the fact that the item combination of items or service is transferred between or among separate divisions subsidiaries or affiliates of the Offeror
If you have checked the above box and are claiming the ldquoAny item combination of items or Servicerdquo exemption please provide data regarding
|_| VIII Non-developmental Items
A non-developmental item as defined in FAR 2101 which has been developed exclusively at private expense and sold in substantial quantities on a competitive basis to multiple State and local governments
If claiming the Non-developmental Items exemption then the following must be provided
Key Inquiries and Summary of Supplierrsquos Supporting Information
Was the item previously developed
|_| Yes|_| NO
Was the item used exclusively for governmental purposes by a Federal agency a State or local government or a foreign government with which the United States has mutual defense cooperation agreement
|_| Yes|_| NO
If the item is to be modified do the modifications comply with Part III guidance on modifications
|_| Yes|_| NO
If the item is not yet in use does it otherwise qualify as a non-developmental item
|_| Yes|_| NO
Was the item developed exclusively at private expense
|_| Yes|_| NO
Is the item sold in substantial quantities on a competitive basis to multiple State and local governments
|_| Yes|_| NO
Please provide data regarding
|_| IX General Inquiries
Does the item qualify as a combination of items under Parts I II III and IV above
|_| Yes|_| NO
Has the item or services previously been determined to be commercial
|_| Yes|_| NO
If so by whom enspenspenspenspensp
|_| X Other Information
Is there other information of which you are aware that would supplement the information provided and would help substantiate whether the item or service is commercial
|_| Yes|_| NO
Have you provided such information
|_| Yes|_| NO
List such information enspenspenspenspensp
|_| XI Supplier Determination
Offeror hereby represents that the foregoing information is accurate and complete and that to the best of its knowledge information and belief goods and or services offered currently constitute ldquoa commercial itemrdquo as defined by FAR 2101
For PSEMC Internal Use Only
XII Supplier Determination
Supplier has claimed that the item component or service identified above is a commercial item under the definition at FAR 2101 I have reviewed and summarized the supplierrsquos support for that claim in the appropriate sections above Based on such review of such support information and any other information identified elsewhere herein I conclude that the supplier
|_| HAS |_| HAS NOT Supported its claim of commercial item status under the definition at FAR 2101
If the supplier HAS NOT supported its claim list reasons enspenspenspenspensp
Describe action plat to resolve enspenspenspenspensp
Comments enspenspenspenspensp
image1jpeg
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull This section of Table 15-2 describes the format an estimating approach we
are required to use when developing a proposal to modify an existingcontract In addition to the cost element breakdowns required as describedin the previous slides when there is a modification or change proposal FARalso requires the following table to be inserted into your proposal
41
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals
42FAR 15408 Table 15-2 III B
B Change Orders modifications and claims
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
Column 2 includes the cost of all work deleted This
includes cost of work deleted already performed (amount in Column 3) and
cost of work deleted not yet performed (Column 4)
Column 3 includes the cost of deleted work already
performed This amount will not be included in the credit (delete) adjustment amount (eg we will not give back costs already
incurred)
Column 4 includes cost for deleted work not yet performed ndash must be priced using current
estimates (but the current estimate may be the same as
the original estimate) ndash it is develed similar to a normal ldquoaddrdquo proposal with a few
exceptions
Column 5 includes the cost of the
new work and is developed as we do any
other proposal
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull Detail for columns listed on previous page
1 Enter appropriate cost element2 Enter current estimates of what it would take to complete the deleted work that
has not yet been performed3 Enter current cost of deleted work already performed This should be based on
actuals and copies to support these actuals should be included in the proposal4 Enter the net cost to be deleted (Column 2 minus Column 3)5 Enter your estimate for cost of work added by the change6 Enter the net cost of change (Column 5 minus Column 4)7 Identify where in your proposal the supporting documentation and basis of
estimate can be found for each of these sections
43FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull For purposes of determining if a proposal an cost or pricing data are
required from individual suppliers on a change proposal the absolute valueof the ldquodeleterdquo amount plus the ldquoaddrdquo amount is computed for each supplierthat exceeds the cost and pricing threshold (TINA)
bull Remember from FAR 15403-4(b) ndash if the absolute value for an individualsupplier exceeds the cost and pricing threshold (TINA) and the supplier iseither an actual supplier (will continue to provide partsservices on thiscontract) the supplier is required to provide a proposal and cost or pricingdata in support of the change proposal
bull Deleted amount is our current estimate (generally no the original contractvalue unless it is our current estimate)
44FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull If a supplierrsquos quantities are changing due to a modification the net delete
or add amount is used to determine if the supplier exceeds the cost andpricing threshold (TINA)
bull The estimator should not consider the old quantity as the delete and thenew quantity as the add (eg in computing absolute value) whendetermining if the supplier exceeds the threshold in cases where quantitiesare changing
bull The development of the appropriate deletion is not simply the estimatedcost of the deleted quantity ndash this will overstate the credit
45FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals Cost of WorkDeleted for a Partial Deleted Quantitybull In cases where part of a material quantity is being deleted (eg original
contract requires 100 widgets and the contract is modified to delete 30 ofthem) one method of estimating the amount of the delete is
1 Develop a current estimate of the extended cost for the item(s) given the originalquantity
2 Develop a current estimate of the extended cost for the items at the lower(remaining) quantity
3 The delta between these two values represents the amount of the delete
bull The same method can be used if the contract is modified to increase aquantity for a part
46FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklist
47
bull The Supplier Proposal Adequacy Checklist is accessed from the externalPSEMC supplier website
bull Additional supplier proposal guidance and resources are available(information templates and tools to assist in building a FAR compliantproposal
bull Supplier proposal guidance
bull Supplier Proposal Adequacy Guidelines
bull PSEMC document templates
bull Supplier proposal adequacy checklistbull Contract pricing proposal cover sheet
httpspsemccomsuppliers
- Strategic Affordability Analysis
- Purpose of this Guideline
- Table of Contents
- Table of Contents
- Supplier Proposal Adequacy Checklist
- Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
- Cover Sheet
- Cover Sheet Example ndash Reference Form DI-SUP-105F02
- Index
- Index Example
- Cost Element Breakdown by Line Item
- Cost Element Breakdown by Line Item Example
- Summary Cost Element Breakdown
- Summary Cost Element Breakdown - Example
- Summary Cost Element Breakdown - Example
- Material
- Material
- Individual Bills of Material Example
- Consolidated Bill of Material Example
- Consolidated Bill of Material
- Material
- Material
- Material
- Labor
- Labor
- Labor
- Labor Hours Example
- Labor Hours Example ndash Actual Production History
- Labor Hours Examples ndash Basis of Estimate
- Other Direct Costs (ODC)
- Nonrecurring Expenses (NRE)
- NRE
- Rates
- Rates
- Summary
- Summary
- Other Types of Proposals
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals Cost of WorkDeleted for a Partial Deleted Quantity
- Supplier Proposal Adequacy Checklist
-
| Buyer (Type or Print Name) | Date |
| Offeror | |||
| By | |||
| Title | |||
| Date |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp | ||
| (iii) Total number of customers involved in such sales | enspenspenspenspensp |
| (a) Transfer price(s) of such goods | $ enspenspenspenspensp | ||
| (b) Total units of such goods and or | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| Unmodified Items Identified in Part 1 | Modified Items Proposed to PSMEC | Unit Value of Modification | |||||||
| Unmodified Item | Unmodified Price | Modified Item | Modified Price to PSEMC | ||||||
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| To the general public in the time-frame beginning | enspenspenspenspensp | enspenspenspenspensp | and ending | enspenspenspenspensp |
| (a) Sales | |||||
| (b) Leases | |||||
| (c) Licenses | |||||
| (d) Offers to Sell 1 | |||||
| (e) Offers to Lease 2 | |||||
| (f) Offers to License 3 |
| Part Number | |||
| Description | |||
| Offeror |
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Materialbull Refer to the detailed instructions in the RFP when your proposal supports a
base year plus options contract or a long term agreement Guidance shouldbe provided here on the consolidation and subtier requirements If youhave any questions regarding this contact your PSEMC Supply Chainrepresentative
bull Inter-organizational costs
bull Inter-organizational costs are defined as the costs of items transferred betweendivisions within the same company
bull If you have bid any inter-organizational costs in your proposal you will need toprovide a cost element breakdown for each inter-organizational transfer andsupport as appropriate
bull One more thing
bull If you have a supplier with a value in excess of $135 million or is greater than 10percent of your total proposal and exceeds the TINA threshold FAR 15408 Table15-2 requires that we submit the supplierrsquos proposal and cost or pricing data withour own proposal
23FAR 15408 Table 15-2 II A
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Provide a time-phased (eg monthly quarterly) breakdown of labor hours ratesand cost by appropriate category and furnish basis for estimates
24FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Proposed labor hours are generally a combination of direct and support laborhours
bull Direct Labor Hours ndash Hours that can be identified specifically to a final end itembull Support Labor Hours ndash Hours that cannot be specifically identified to one end item For
example a production manager may be in charge of overseeing the manufacturing ofmultiple parts
25FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull You need to provide a breakdown of the labor hours by labor category and
function along with a basis of estimate for the proposed labor hours
bull For example if you propose 500 hours for an end item you would need to providea breakdown by categoryfunction (assembly inspection supervisor engineeretc) You also will need to provide a detailed basis of estimate for eachcategoryfunction showing how your arrived at the hours for the proposed laborcategory
bull Generally the basis should be actual production history An alternative approach isthe use of engineering estimates if the item has not been manufactured before
bull Cost Accounting Standards (CAS) 401 requires that a company isconsistent between proposals and accounting practices The way acompany estimates its labor hours needs to also be the way it accumulatesits production history
26FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours ExampleProposal No HLQxxxxxDate January 1 20xx ABC Corporation
Labor HoursProposed Labor Hours ndash 8279 hrsunit for Part ABC
27
Direct Labor HrsUnitAssembly 3800 Machinist 350 QA 762 Engineer 1 238
Subtotal 5151
Production Support HrsUnitMfg Supervisor 920Eng Supervisor 368QA supervisor 920Production Mgr 920
Subtotal 3128
Total Hrs 8279
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Example ndash Actual Production History
28
ProposedDuration - Months 7 9 24 12 Qty 30 39 110 50 End Date 11152006 982007 912009
Direct Labor Total Hrs HrsUnit Total Hours HrsUnit Total Hrs HrsUnit Total Hrs HrsUnitAssembly 1836 6120 1675 4295 4338 3944 1900 3800 Machinist 169 564 154 396 400 363 175 350 QA 368 1238 336 862 870 791 381 762 Engineer 1 115 383 105 269 272 247 119 238
Production Support Total Hrs Total Hrs Total Hrs Total Hrs HrsUnitMFG Supervisor 268 345 920 460 920 Eng Supervisor 107 138 184 184 368 QA Supervisor 268 345 920 460 920 Production Mgr 268 345 920 460 920
HrsUnit 8279
Acutal Production History - Part ABC
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Examples ndash Basis of Estimatebull Basis of estimate for direct labor
bull Proposed direct labor hours were developed by apply a 90 percent learningcurve to the production labor history for part BBC You need to provide abasis for the 90 percent curve
bull Basis of estimate for the manufacturing supervisorbull The manufacturing supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 920 hours were used over a 24-month periodSince the current proposal has been estimated to cover 12 months 460hours were applied to the manufacturing supervisor (920 divided by 2)
bull Basis of estimate for engineering supervisorbull The engineering supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 184 hours were necessary to complete the taskThis task is similar and so we estimate 184 hours
29
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Direct Costs (ODC)bull List other expenses not otherwise included under material and labor (eg
travel freight) and provide basis for pricing
bull For example the basis for travel would include the location number of tripsnumber of people attending and the estimated expenses for the travel
30FAR 15408 Table 15-2 II D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Nonrecurring Expenses (NRE)bull NRE refers to one-time costs that you would not normally see from proposal
to proposal
bull Examples of NRE are as follows
bull Special Toolingbull New Equipmentbull Equipment Refurbishmentbull Hours and materials associated with increase throughput capacitybull Hours and materials to research develop design and test new processesbull One-Time review events
31FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
NREbull As mentioned earlier NRE charges must be broken out by cost element
This means the material and labor components associated with the NREare clearly broken out
bull Material ndash any material associated with NRE should be supported by supplierquotes or purchase orders
bull Labor ndash labor hours associated with NRE should have basis of estimates(BOE) that are broken down by labor category and include detaileddescriptions of the tasks that will be performed
32FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Rates include direct labor overhead general and administrative expenses
(GampA) and cost of money (COM)
bull PSEMC has the capability to perform rate audits on suppliers in lieu ofhaving the DCAA do this
bull If you allow PSEMC to perform this rate audit you need to provide thefollowing information
bull Explanation as to how the rates were calculatedbull Detailed documentation (financial statements labor pools listing of unallowable
expenses etc) that support the rate calculationsbull If the detailed documentation is based on budgetary numbers you will also need
to provide three years of your most current actuals to support you budgetarynumbers
bull If budgetary numbers differ significantly from the most recent actuals providedetailed explanations for these differences
33FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Facilities Capital COM
bull When you elect to claim COM submit a completed form CASB-CFM (FacilitiesCapital Cost of Money Factors Computation) in accordance with FAR 31205-10Also complete DD Form 1861 and include a copy in your proposal submissionBoth forms can be found on-line at various locations
34FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull In summary all noncompetitive noncommercial proposals valued at more
than the cost and pricing threshold (TINA) are required to include thefollowing information
35
Required Items Page FAR Reference
Supplier Proposal Adequacy Checklist Pg 5-6 PSEMC Policy
Cover Sheet - SF1411 or equivalent Pg 7-8 FAR 15408 Table 15-2 I A
Index Pg 9-10 FAR 15408 Table 15-2 I B
Cost Element Breakdown Pg 11-12 FAR 15408 Table 15-2 I D
Summary Cost Element Breakdown Pg 13-15 FAR 15408 Table 15-2 I E
Material (Including Consolidated BOM) Pg 16-23 FAR 15408 Table 15-2 II A
Labor Pg 24-29 FAR 15408 Table 15-2 II B
ODC Pg 30 FAR 15408 Table 15-2 II D
NRE Pg 31-32 FAR 15408 Table 15-2 II
Rates Pg 33-34 FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull Sufficient rationale and supporting documentation to support each of the
proposed cost elements is also required
bull Obtaining adequate supplier proposals is always on the critical path sincePSEMC cannot submit its proposal to the government until it has receivedadequate proposals from its subcontractors Therefore it is critical thatadequate supplier proposals are obtained as quickly as possible
36
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Types of Proposalsbull Commercial item proposals
bull Change proposals
bull The following slides are only applicable in certain situations
37
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you or one of your suppliers is providing a commercial part cost or pricing
data and a cost analysis is not required However you must demonstrate that the part is commercial and that the price is reasonable
bull A commercial item is any item other than real property that is a type customarily used by the general public or by a nongovernment entity
bull Has also been sold leased or licensed to the general public or has been offered for sale lease or license to the general public
bull A final commercial determination is made by the government contracting officer If the items is deemed to not be commercial the supplier is required to submit a complete proposal that includes cost and pricing data
38FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you claim one or more of your parts are commercial you need to support
your position by providing the following information
bull Copies of applicable portions of a company catalogue or website address that shows the item with a description and unit price
bull Show that these items can be purchased by the general public or nongovernmentalagency
bull If a website or catalogue is not available copies of invoices showing the sale of these items to nongovernment entities is sufficient
39FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull PSEMC policy requires suppliers to complete a PSEMC Supplier Proposal
Adequacy Checklist (sent with the RFP) for all proposals where the supplierclaims its parts are commercial
bull An example of the Supplier Proposal Adequacy Checklist for commercialitems is attached reference form DI-SUP-310F01
40PSEMC Policy
Pacific Scientific EMC ndash Commercial Item Status
If claiming an exemption offeror must provide the appropriate information to determine commerciality Refusal to provide the required information can result in an assist audit being requested from the Defense Contract Audit Agency or other cognizant Government Audit Agencies and or a determination that goods andor services offered do not constitute a ldquocommercial itemrdquo
Offeror hereby represents that to the best of its knowledge information and belief goods andor services offered constitute a ldquocommercial itemrdquo as defined by FAR 2101 because it constitutes
A Commercial Item or Component Justification (required for any claim)
Key Inquiries and Summary of your Supporting Information
What is the relevant ldquotyperdquo of item enspenspenspenspensp
What are the types of items uses by the general public or by non-governmental entities for other than governmental purposes enspenspenspenspensp
What indicates the type of itemrsquos use described above is customary enspenspenspenspensp
Has the offered item itself (as opposed to the type of item) been sold or offered for sale
|_| Yes|_| NO
Are the offered itemrsquos sales (or offers to sale) to the general public
|_| Yes|_| NO
Please provide data regarding sales leases or licenses of this item and identification of the non-government use entities
ValueNon-Government Use Entities
(date)(date)
In addition as an appendix to this commercial item determination provide supporting documentation in the form of
1that have not materialized into sales
2that have not materialized into leases
3that have not materialized into licenses
1 Verification of sales history to source documents
2 Identification of customarily offered discounts for the item
3 Verification of the item to an existing catalog or price list and
4 Verification of historical data for an item previously not determined commercial that the offeror is now trying to qualify as a commercial item
(check box(es) as appropriate)
|_| I Unmodified Commercial Items or Components (Complete Section A)
Any item other than real property that is a of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes and
(i) Has been sold leased or licensed to the general public or
(ii) Has been offered for sale lease or license to the general public
|_| II Item Evolved from Commercial Items or Components
Any item that evolved from an item described in Part I (which is required if claiming this exemption) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace but will be available in the commercial marketplace in time to satisfy the delivery requirements under a United States Government solicitation
If claiming the item Evolved from Commercial Items or Components exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use Part I)
|_| Yes|_| NO
If yes describe the relationship of the modifications to the Federal Government requirement enspenspenspenspensp
What are the advances in technology or performance between the offered item and the commercial item on which it is based enspenspenspenspensp
What is your support for such advances enspenspenspenspensp
What is your support for availability of the item in time to meet requirements Is the claim availability reasonable enspenspenspenspensp
Please provide data regarding
(a) Currently pending offers including
(b) Planned Offers Including
In all instances scheduled for delivery no later than the delivery requirements under the
(c) Data in the format of Part I for completed sales of the item from which the ldquocommercial itemrdquo evolved
|_| III Modified Commercial Items or Components
Any item that would satisfy a criterion expressed in Part I or II hereof but for -
|_| (i) Modifications of a type customarily available in the commercial marketplace
If claiming Modified Commercial Item or Components that are of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use part I or parts II and II)
|_| Yes|_| NO
What are the modifications that would be made to the commercial item enspenspenspenspensp
Are the modifications of a type customarily available in the commercial marketplace
|_| Yes|_| NO
Summarize your support for customary availability of the modification in the commercial marketplace enspenspenspenspensp
|_| (ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet federal government requirements ldquoMinor modificationsrdquo means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component or change the purpose of a process Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product Dollar values and percentages may be used as guideposts but are not conclusive evidence that a modification is minor
If claiming Modified Commercial Items or Components that are not of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Are the modifications made to satisfy Federal Government requirements
|_| Yes|_| NO
Do the modifications alter the nongovernmental function or essential physical characteristics of the item
|_| Yes|_| NO
If yes what are the alterations enspenspenspenspensp
Does the modified item retain a predominance of nongovernmental functions or physical characteristics
|_| Yes|_| NO
Summarize your support describing the value of the modifications in comparison to the value of the final product enspenspenspenspensp
Summarize your support for the magnitude or size of the modifications in relation to the magnitude or size of the final product enspenspenspenspensp
Are there any other factors which would allow you to conclude that the modifications are minor
|_| Yes|_| NO
If yes what are they enspenspenspenspensp
Based on the above does the modification qualify as a minor modification
|_| Yes|_| NO
Please provide data regarding the minor modification and the total price to PSEMC of Minor Modifications
Price to PSEMC of all Minor Modifications at quantities proposed in this pricing action enspenspenspenspensp
Minor modifications that exceed the thresholds in FAR 15403-1(c)(3)(iii)(B) are subject to the Certified Cost or Pricing Data requirements and must be proposed as described by FAR 15408 Table 152
|_| IV Commercial Items Support Services
Installation services maintenance services repair services training services and other services if -
(i) Such services are procured for support of an item referred to in Parts I II III or IV hereof regardless of whether such services are provided by the same source or at the same time as the item and
(ii) The source of such services provided similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government
If claiming Commercial Item Support Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services procured for the support of a commercial item which qualifies under a preceding part
|_| Yes|_| NO
Describe the nature of the services and how they support the commercial item enspenspenspenspensp
Are the services provided at the same time to the general public and the Federal Government
|_| Yes|_| NO
Are the terms and conditions for the services similar to those offered to the general public
|_| Yes|_| NO
Describe differences enspenspenspenspensp
Please provide data regarding
a Open and completed contracts including
b Pending offers including
|_| V Any Combination of Items
Meeting the requirements of Parts I II III or IV hereof that are of a type customarily combined and sold in combination to the general public
If you have checked the above box and are claiming the Any Combination of Items exemption please attach hereto information as requ3sted for Parts I II III and IV
|_| VI Other Commercial Services
Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions For purposes of these services -
(i) Catalog price means a price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor is either published or otherwise available for inspection by customers and states prices at which sales are currently or were last made to a significant number of buyers constituting the general public and
(ii) Market prices means current prices that are established in the course of ordinary trade between buyers and sellers free to bargain and that can be substantiated through competition or from source independent of the offerors
If claiming the Other Commercial Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services sold competitively in substantial quantities in the commercial marketplace
|_| Yes|_| NO
If no are the services of a type sold in substantial quantities in the commercial marketplace
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If yes what is the ldquotyperdquo of service enspenspenspenspensp
Summarize your support for same enspenspenspenspensp
Are the prices quoted for specific tasks performed or specific outcomes to be achieved
|_| Yes|_| NO
Are the services offered consistent with your standard terms and conditions
|_| Yes|_| NO
Are the services of a type sold at catalog or market prices
|_| Yes|_| NO
If sold at catalog price is the price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor
|_| Yes|_| NO
If sold at catalog price is the catalog or its equivalent either published or otherwise available for inspection by customers
|_| Yes|_| NO
Summarize your support for same (include a copy of the catalog or provide location) enspenspenspenspensp
If sold at a catalog price are the listed prices those at which sales are currently or were last made to a significant number of buyers in the general public
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If sold at a market price are the prices established in the course of ordinary trade between buyers and sellers free to bargain
|_| Yes|_| NO
Summarize you support for same enspenspenspenspensp
If sold at market price can the price be substantiated through competition or from sources independent of the offeror
|_| Yes|_| NO
Summarize your support for same
Please provide data regarding
(a) Open and completed contracts including
(b) Pending Offers including
|_| VII Any Item Combination of Items or Service
Referred to in Parts I through VI hereof notwithstanding the fact that the item combination of items or service is transferred between or among separate divisions subsidiaries or affiliates of the Offeror
If you have checked the above box and are claiming the ldquoAny item combination of items or Servicerdquo exemption please provide data regarding
|_| VIII Non-developmental Items
A non-developmental item as defined in FAR 2101 which has been developed exclusively at private expense and sold in substantial quantities on a competitive basis to multiple State and local governments
If claiming the Non-developmental Items exemption then the following must be provided
Key Inquiries and Summary of Supplierrsquos Supporting Information
Was the item previously developed
|_| Yes|_| NO
Was the item used exclusively for governmental purposes by a Federal agency a State or local government or a foreign government with which the United States has mutual defense cooperation agreement
|_| Yes|_| NO
If the item is to be modified do the modifications comply with Part III guidance on modifications
|_| Yes|_| NO
If the item is not yet in use does it otherwise qualify as a non-developmental item
|_| Yes|_| NO
Was the item developed exclusively at private expense
|_| Yes|_| NO
Is the item sold in substantial quantities on a competitive basis to multiple State and local governments
|_| Yes|_| NO
Please provide data regarding
|_| IX General Inquiries
Does the item qualify as a combination of items under Parts I II III and IV above
|_| Yes|_| NO
Has the item or services previously been determined to be commercial
|_| Yes|_| NO
If so by whom enspenspenspenspensp
|_| X Other Information
Is there other information of which you are aware that would supplement the information provided and would help substantiate whether the item or service is commercial
|_| Yes|_| NO
Have you provided such information
|_| Yes|_| NO
List such information enspenspenspenspensp
|_| XI Supplier Determination
Offeror hereby represents that the foregoing information is accurate and complete and that to the best of its knowledge information and belief goods and or services offered currently constitute ldquoa commercial itemrdquo as defined by FAR 2101
For PSEMC Internal Use Only
XII Supplier Determination
Supplier has claimed that the item component or service identified above is a commercial item under the definition at FAR 2101 I have reviewed and summarized the supplierrsquos support for that claim in the appropriate sections above Based on such review of such support information and any other information identified elsewhere herein I conclude that the supplier
|_| HAS |_| HAS NOT Supported its claim of commercial item status under the definition at FAR 2101
If the supplier HAS NOT supported its claim list reasons enspenspenspenspensp
Describe action plat to resolve enspenspenspenspensp
Comments enspenspenspenspensp
image1jpeg
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull This section of Table 15-2 describes the format an estimating approach we
are required to use when developing a proposal to modify an existingcontract In addition to the cost element breakdowns required as describedin the previous slides when there is a modification or change proposal FARalso requires the following table to be inserted into your proposal
41
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals
42FAR 15408 Table 15-2 III B
B Change Orders modifications and claims
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
Column 2 includes the cost of all work deleted This
includes cost of work deleted already performed (amount in Column 3) and
cost of work deleted not yet performed (Column 4)
Column 3 includes the cost of deleted work already
performed This amount will not be included in the credit (delete) adjustment amount (eg we will not give back costs already
incurred)
Column 4 includes cost for deleted work not yet performed ndash must be priced using current
estimates (but the current estimate may be the same as
the original estimate) ndash it is develed similar to a normal ldquoaddrdquo proposal with a few
exceptions
Column 5 includes the cost of the
new work and is developed as we do any
other proposal
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull Detail for columns listed on previous page
1 Enter appropriate cost element2 Enter current estimates of what it would take to complete the deleted work that
has not yet been performed3 Enter current cost of deleted work already performed This should be based on
actuals and copies to support these actuals should be included in the proposal4 Enter the net cost to be deleted (Column 2 minus Column 3)5 Enter your estimate for cost of work added by the change6 Enter the net cost of change (Column 5 minus Column 4)7 Identify where in your proposal the supporting documentation and basis of
estimate can be found for each of these sections
43FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull For purposes of determining if a proposal an cost or pricing data are
required from individual suppliers on a change proposal the absolute valueof the ldquodeleterdquo amount plus the ldquoaddrdquo amount is computed for each supplierthat exceeds the cost and pricing threshold (TINA)
bull Remember from FAR 15403-4(b) ndash if the absolute value for an individualsupplier exceeds the cost and pricing threshold (TINA) and the supplier iseither an actual supplier (will continue to provide partsservices on thiscontract) the supplier is required to provide a proposal and cost or pricingdata in support of the change proposal
bull Deleted amount is our current estimate (generally no the original contractvalue unless it is our current estimate)
44FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull If a supplierrsquos quantities are changing due to a modification the net delete
or add amount is used to determine if the supplier exceeds the cost andpricing threshold (TINA)
bull The estimator should not consider the old quantity as the delete and thenew quantity as the add (eg in computing absolute value) whendetermining if the supplier exceeds the threshold in cases where quantitiesare changing
bull The development of the appropriate deletion is not simply the estimatedcost of the deleted quantity ndash this will overstate the credit
45FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals Cost of WorkDeleted for a Partial Deleted Quantitybull In cases where part of a material quantity is being deleted (eg original
contract requires 100 widgets and the contract is modified to delete 30 ofthem) one method of estimating the amount of the delete is
1 Develop a current estimate of the extended cost for the item(s) given the originalquantity
2 Develop a current estimate of the extended cost for the items at the lower(remaining) quantity
3 The delta between these two values represents the amount of the delete
bull The same method can be used if the contract is modified to increase aquantity for a part
46FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklist
47
bull The Supplier Proposal Adequacy Checklist is accessed from the externalPSEMC supplier website
bull Additional supplier proposal guidance and resources are available(information templates and tools to assist in building a FAR compliantproposal
bull Supplier proposal guidance
bull Supplier Proposal Adequacy Guidelines
bull PSEMC document templates
bull Supplier proposal adequacy checklistbull Contract pricing proposal cover sheet
httpspsemccomsuppliers
- Strategic Affordability Analysis
- Purpose of this Guideline
- Table of Contents
- Table of Contents
- Supplier Proposal Adequacy Checklist
- Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
- Cover Sheet
- Cover Sheet Example ndash Reference Form DI-SUP-105F02
- Index
- Index Example
- Cost Element Breakdown by Line Item
- Cost Element Breakdown by Line Item Example
- Summary Cost Element Breakdown
- Summary Cost Element Breakdown - Example
- Summary Cost Element Breakdown - Example
- Material
- Material
- Individual Bills of Material Example
- Consolidated Bill of Material Example
- Consolidated Bill of Material
- Material
- Material
- Material
- Labor
- Labor
- Labor
- Labor Hours Example
- Labor Hours Example ndash Actual Production History
- Labor Hours Examples ndash Basis of Estimate
- Other Direct Costs (ODC)
- Nonrecurring Expenses (NRE)
- NRE
- Rates
- Rates
- Summary
- Summary
- Other Types of Proposals
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals Cost of WorkDeleted for a Partial Deleted Quantity
- Supplier Proposal Adequacy Checklist
-
| Buyer (Type or Print Name) | Date |
| Offeror | |||
| By | |||
| Title | |||
| Date |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp | ||
| (iii) Total number of customers involved in such sales | enspenspenspenspensp |
| (a) Transfer price(s) of such goods | $ enspenspenspenspensp | ||
| (b) Total units of such goods and or | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| Unmodified Items Identified in Part 1 | Modified Items Proposed to PSMEC | Unit Value of Modification | |||||||
| Unmodified Item | Unmodified Price | Modified Item | Modified Price to PSEMC | ||||||
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| To the general public in the time-frame beginning | enspenspenspenspensp | enspenspenspenspensp | and ending | enspenspenspenspensp |
| (a) Sales | |||||
| (b) Leases | |||||
| (c) Licenses | |||||
| (d) Offers to Sell 1 | |||||
| (e) Offers to Lease 2 | |||||
| (f) Offers to License 3 |
| Part Number | |||
| Description | |||
| Offeror |
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Provide a time-phased (eg monthly quarterly) breakdown of labor hours ratesand cost by appropriate category and furnish basis for estimates
24FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Proposed labor hours are generally a combination of direct and support laborhours
bull Direct Labor Hours ndash Hours that can be identified specifically to a final end itembull Support Labor Hours ndash Hours that cannot be specifically identified to one end item For
example a production manager may be in charge of overseeing the manufacturing ofmultiple parts
25FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull You need to provide a breakdown of the labor hours by labor category and
function along with a basis of estimate for the proposed labor hours
bull For example if you propose 500 hours for an end item you would need to providea breakdown by categoryfunction (assembly inspection supervisor engineeretc) You also will need to provide a detailed basis of estimate for eachcategoryfunction showing how your arrived at the hours for the proposed laborcategory
bull Generally the basis should be actual production history An alternative approach isthe use of engineering estimates if the item has not been manufactured before
bull Cost Accounting Standards (CAS) 401 requires that a company isconsistent between proposals and accounting practices The way acompany estimates its labor hours needs to also be the way it accumulatesits production history
26FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours ExampleProposal No HLQxxxxxDate January 1 20xx ABC Corporation
Labor HoursProposed Labor Hours ndash 8279 hrsunit for Part ABC
27
Direct Labor HrsUnitAssembly 3800 Machinist 350 QA 762 Engineer 1 238
Subtotal 5151
Production Support HrsUnitMfg Supervisor 920Eng Supervisor 368QA supervisor 920Production Mgr 920
Subtotal 3128
Total Hrs 8279
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Example ndash Actual Production History
28
ProposedDuration - Months 7 9 24 12 Qty 30 39 110 50 End Date 11152006 982007 912009
Direct Labor Total Hrs HrsUnit Total Hours HrsUnit Total Hrs HrsUnit Total Hrs HrsUnitAssembly 1836 6120 1675 4295 4338 3944 1900 3800 Machinist 169 564 154 396 400 363 175 350 QA 368 1238 336 862 870 791 381 762 Engineer 1 115 383 105 269 272 247 119 238
Production Support Total Hrs Total Hrs Total Hrs Total Hrs HrsUnitMFG Supervisor 268 345 920 460 920 Eng Supervisor 107 138 184 184 368 QA Supervisor 268 345 920 460 920 Production Mgr 268 345 920 460 920
HrsUnit 8279
Acutal Production History - Part ABC
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Examples ndash Basis of Estimatebull Basis of estimate for direct labor
bull Proposed direct labor hours were developed by apply a 90 percent learningcurve to the production labor history for part BBC You need to provide abasis for the 90 percent curve
bull Basis of estimate for the manufacturing supervisorbull The manufacturing supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 920 hours were used over a 24-month periodSince the current proposal has been estimated to cover 12 months 460hours were applied to the manufacturing supervisor (920 divided by 2)
bull Basis of estimate for engineering supervisorbull The engineering supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 184 hours were necessary to complete the taskThis task is similar and so we estimate 184 hours
29
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Direct Costs (ODC)bull List other expenses not otherwise included under material and labor (eg
travel freight) and provide basis for pricing
bull For example the basis for travel would include the location number of tripsnumber of people attending and the estimated expenses for the travel
30FAR 15408 Table 15-2 II D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Nonrecurring Expenses (NRE)bull NRE refers to one-time costs that you would not normally see from proposal
to proposal
bull Examples of NRE are as follows
bull Special Toolingbull New Equipmentbull Equipment Refurbishmentbull Hours and materials associated with increase throughput capacitybull Hours and materials to research develop design and test new processesbull One-Time review events
31FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
NREbull As mentioned earlier NRE charges must be broken out by cost element
This means the material and labor components associated with the NREare clearly broken out
bull Material ndash any material associated with NRE should be supported by supplierquotes or purchase orders
bull Labor ndash labor hours associated with NRE should have basis of estimates(BOE) that are broken down by labor category and include detaileddescriptions of the tasks that will be performed
32FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Rates include direct labor overhead general and administrative expenses
(GampA) and cost of money (COM)
bull PSEMC has the capability to perform rate audits on suppliers in lieu ofhaving the DCAA do this
bull If you allow PSEMC to perform this rate audit you need to provide thefollowing information
bull Explanation as to how the rates were calculatedbull Detailed documentation (financial statements labor pools listing of unallowable
expenses etc) that support the rate calculationsbull If the detailed documentation is based on budgetary numbers you will also need
to provide three years of your most current actuals to support you budgetarynumbers
bull If budgetary numbers differ significantly from the most recent actuals providedetailed explanations for these differences
33FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Facilities Capital COM
bull When you elect to claim COM submit a completed form CASB-CFM (FacilitiesCapital Cost of Money Factors Computation) in accordance with FAR 31205-10Also complete DD Form 1861 and include a copy in your proposal submissionBoth forms can be found on-line at various locations
34FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull In summary all noncompetitive noncommercial proposals valued at more
than the cost and pricing threshold (TINA) are required to include thefollowing information
35
Required Items Page FAR Reference
Supplier Proposal Adequacy Checklist Pg 5-6 PSEMC Policy
Cover Sheet - SF1411 or equivalent Pg 7-8 FAR 15408 Table 15-2 I A
Index Pg 9-10 FAR 15408 Table 15-2 I B
Cost Element Breakdown Pg 11-12 FAR 15408 Table 15-2 I D
Summary Cost Element Breakdown Pg 13-15 FAR 15408 Table 15-2 I E
Material (Including Consolidated BOM) Pg 16-23 FAR 15408 Table 15-2 II A
Labor Pg 24-29 FAR 15408 Table 15-2 II B
ODC Pg 30 FAR 15408 Table 15-2 II D
NRE Pg 31-32 FAR 15408 Table 15-2 II
Rates Pg 33-34 FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull Sufficient rationale and supporting documentation to support each of the
proposed cost elements is also required
bull Obtaining adequate supplier proposals is always on the critical path sincePSEMC cannot submit its proposal to the government until it has receivedadequate proposals from its subcontractors Therefore it is critical thatadequate supplier proposals are obtained as quickly as possible
36
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Types of Proposalsbull Commercial item proposals
bull Change proposals
bull The following slides are only applicable in certain situations
37
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you or one of your suppliers is providing a commercial part cost or pricing
data and a cost analysis is not required However you must demonstrate that the part is commercial and that the price is reasonable
bull A commercial item is any item other than real property that is a type customarily used by the general public or by a nongovernment entity
bull Has also been sold leased or licensed to the general public or has been offered for sale lease or license to the general public
bull A final commercial determination is made by the government contracting officer If the items is deemed to not be commercial the supplier is required to submit a complete proposal that includes cost and pricing data
38FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you claim one or more of your parts are commercial you need to support
your position by providing the following information
bull Copies of applicable portions of a company catalogue or website address that shows the item with a description and unit price
bull Show that these items can be purchased by the general public or nongovernmentalagency
bull If a website or catalogue is not available copies of invoices showing the sale of these items to nongovernment entities is sufficient
39FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull PSEMC policy requires suppliers to complete a PSEMC Supplier Proposal
Adequacy Checklist (sent with the RFP) for all proposals where the supplierclaims its parts are commercial
bull An example of the Supplier Proposal Adequacy Checklist for commercialitems is attached reference form DI-SUP-310F01
40PSEMC Policy
Pacific Scientific EMC ndash Commercial Item Status
If claiming an exemption offeror must provide the appropriate information to determine commerciality Refusal to provide the required information can result in an assist audit being requested from the Defense Contract Audit Agency or other cognizant Government Audit Agencies and or a determination that goods andor services offered do not constitute a ldquocommercial itemrdquo
Offeror hereby represents that to the best of its knowledge information and belief goods andor services offered constitute a ldquocommercial itemrdquo as defined by FAR 2101 because it constitutes
A Commercial Item or Component Justification (required for any claim)
Key Inquiries and Summary of your Supporting Information
What is the relevant ldquotyperdquo of item enspenspenspenspensp
What are the types of items uses by the general public or by non-governmental entities for other than governmental purposes enspenspenspenspensp
What indicates the type of itemrsquos use described above is customary enspenspenspenspensp
Has the offered item itself (as opposed to the type of item) been sold or offered for sale
|_| Yes|_| NO
Are the offered itemrsquos sales (or offers to sale) to the general public
|_| Yes|_| NO
Please provide data regarding sales leases or licenses of this item and identification of the non-government use entities
ValueNon-Government Use Entities
(date)(date)
In addition as an appendix to this commercial item determination provide supporting documentation in the form of
1that have not materialized into sales
2that have not materialized into leases
3that have not materialized into licenses
1 Verification of sales history to source documents
2 Identification of customarily offered discounts for the item
3 Verification of the item to an existing catalog or price list and
4 Verification of historical data for an item previously not determined commercial that the offeror is now trying to qualify as a commercial item
(check box(es) as appropriate)
|_| I Unmodified Commercial Items or Components (Complete Section A)
Any item other than real property that is a of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes and
(i) Has been sold leased or licensed to the general public or
(ii) Has been offered for sale lease or license to the general public
|_| II Item Evolved from Commercial Items or Components
Any item that evolved from an item described in Part I (which is required if claiming this exemption) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace but will be available in the commercial marketplace in time to satisfy the delivery requirements under a United States Government solicitation
If claiming the item Evolved from Commercial Items or Components exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use Part I)
|_| Yes|_| NO
If yes describe the relationship of the modifications to the Federal Government requirement enspenspenspenspensp
What are the advances in technology or performance between the offered item and the commercial item on which it is based enspenspenspenspensp
What is your support for such advances enspenspenspenspensp
What is your support for availability of the item in time to meet requirements Is the claim availability reasonable enspenspenspenspensp
Please provide data regarding
(a) Currently pending offers including
(b) Planned Offers Including
In all instances scheduled for delivery no later than the delivery requirements under the
(c) Data in the format of Part I for completed sales of the item from which the ldquocommercial itemrdquo evolved
|_| III Modified Commercial Items or Components
Any item that would satisfy a criterion expressed in Part I or II hereof but for -
|_| (i) Modifications of a type customarily available in the commercial marketplace
If claiming Modified Commercial Item or Components that are of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use part I or parts II and II)
|_| Yes|_| NO
What are the modifications that would be made to the commercial item enspenspenspenspensp
Are the modifications of a type customarily available in the commercial marketplace
|_| Yes|_| NO
Summarize your support for customary availability of the modification in the commercial marketplace enspenspenspenspensp
|_| (ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet federal government requirements ldquoMinor modificationsrdquo means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component or change the purpose of a process Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product Dollar values and percentages may be used as guideposts but are not conclusive evidence that a modification is minor
If claiming Modified Commercial Items or Components that are not of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Are the modifications made to satisfy Federal Government requirements
|_| Yes|_| NO
Do the modifications alter the nongovernmental function or essential physical characteristics of the item
|_| Yes|_| NO
If yes what are the alterations enspenspenspenspensp
Does the modified item retain a predominance of nongovernmental functions or physical characteristics
|_| Yes|_| NO
Summarize your support describing the value of the modifications in comparison to the value of the final product enspenspenspenspensp
Summarize your support for the magnitude or size of the modifications in relation to the magnitude or size of the final product enspenspenspenspensp
Are there any other factors which would allow you to conclude that the modifications are minor
|_| Yes|_| NO
If yes what are they enspenspenspenspensp
Based on the above does the modification qualify as a minor modification
|_| Yes|_| NO
Please provide data regarding the minor modification and the total price to PSEMC of Minor Modifications
Price to PSEMC of all Minor Modifications at quantities proposed in this pricing action enspenspenspenspensp
Minor modifications that exceed the thresholds in FAR 15403-1(c)(3)(iii)(B) are subject to the Certified Cost or Pricing Data requirements and must be proposed as described by FAR 15408 Table 152
|_| IV Commercial Items Support Services
Installation services maintenance services repair services training services and other services if -
(i) Such services are procured for support of an item referred to in Parts I II III or IV hereof regardless of whether such services are provided by the same source or at the same time as the item and
(ii) The source of such services provided similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government
If claiming Commercial Item Support Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services procured for the support of a commercial item which qualifies under a preceding part
|_| Yes|_| NO
Describe the nature of the services and how they support the commercial item enspenspenspenspensp
Are the services provided at the same time to the general public and the Federal Government
|_| Yes|_| NO
Are the terms and conditions for the services similar to those offered to the general public
|_| Yes|_| NO
Describe differences enspenspenspenspensp
Please provide data regarding
a Open and completed contracts including
b Pending offers including
|_| V Any Combination of Items
Meeting the requirements of Parts I II III or IV hereof that are of a type customarily combined and sold in combination to the general public
If you have checked the above box and are claiming the Any Combination of Items exemption please attach hereto information as requ3sted for Parts I II III and IV
|_| VI Other Commercial Services
Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions For purposes of these services -
(i) Catalog price means a price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor is either published or otherwise available for inspection by customers and states prices at which sales are currently or were last made to a significant number of buyers constituting the general public and
(ii) Market prices means current prices that are established in the course of ordinary trade between buyers and sellers free to bargain and that can be substantiated through competition or from source independent of the offerors
If claiming the Other Commercial Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services sold competitively in substantial quantities in the commercial marketplace
|_| Yes|_| NO
If no are the services of a type sold in substantial quantities in the commercial marketplace
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If yes what is the ldquotyperdquo of service enspenspenspenspensp
Summarize your support for same enspenspenspenspensp
Are the prices quoted for specific tasks performed or specific outcomes to be achieved
|_| Yes|_| NO
Are the services offered consistent with your standard terms and conditions
|_| Yes|_| NO
Are the services of a type sold at catalog or market prices
|_| Yes|_| NO
If sold at catalog price is the price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor
|_| Yes|_| NO
If sold at catalog price is the catalog or its equivalent either published or otherwise available for inspection by customers
|_| Yes|_| NO
Summarize your support for same (include a copy of the catalog or provide location) enspenspenspenspensp
If sold at a catalog price are the listed prices those at which sales are currently or were last made to a significant number of buyers in the general public
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If sold at a market price are the prices established in the course of ordinary trade between buyers and sellers free to bargain
|_| Yes|_| NO
Summarize you support for same enspenspenspenspensp
If sold at market price can the price be substantiated through competition or from sources independent of the offeror
|_| Yes|_| NO
Summarize your support for same
Please provide data regarding
(a) Open and completed contracts including
(b) Pending Offers including
|_| VII Any Item Combination of Items or Service
Referred to in Parts I through VI hereof notwithstanding the fact that the item combination of items or service is transferred between or among separate divisions subsidiaries or affiliates of the Offeror
If you have checked the above box and are claiming the ldquoAny item combination of items or Servicerdquo exemption please provide data regarding
|_| VIII Non-developmental Items
A non-developmental item as defined in FAR 2101 which has been developed exclusively at private expense and sold in substantial quantities on a competitive basis to multiple State and local governments
If claiming the Non-developmental Items exemption then the following must be provided
Key Inquiries and Summary of Supplierrsquos Supporting Information
Was the item previously developed
|_| Yes|_| NO
Was the item used exclusively for governmental purposes by a Federal agency a State or local government or a foreign government with which the United States has mutual defense cooperation agreement
|_| Yes|_| NO
If the item is to be modified do the modifications comply with Part III guidance on modifications
|_| Yes|_| NO
If the item is not yet in use does it otherwise qualify as a non-developmental item
|_| Yes|_| NO
Was the item developed exclusively at private expense
|_| Yes|_| NO
Is the item sold in substantial quantities on a competitive basis to multiple State and local governments
|_| Yes|_| NO
Please provide data regarding
|_| IX General Inquiries
Does the item qualify as a combination of items under Parts I II III and IV above
|_| Yes|_| NO
Has the item or services previously been determined to be commercial
|_| Yes|_| NO
If so by whom enspenspenspenspensp
|_| X Other Information
Is there other information of which you are aware that would supplement the information provided and would help substantiate whether the item or service is commercial
|_| Yes|_| NO
Have you provided such information
|_| Yes|_| NO
List such information enspenspenspenspensp
|_| XI Supplier Determination
Offeror hereby represents that the foregoing information is accurate and complete and that to the best of its knowledge information and belief goods and or services offered currently constitute ldquoa commercial itemrdquo as defined by FAR 2101
For PSEMC Internal Use Only
XII Supplier Determination
Supplier has claimed that the item component or service identified above is a commercial item under the definition at FAR 2101 I have reviewed and summarized the supplierrsquos support for that claim in the appropriate sections above Based on such review of such support information and any other information identified elsewhere herein I conclude that the supplier
|_| HAS |_| HAS NOT Supported its claim of commercial item status under the definition at FAR 2101
If the supplier HAS NOT supported its claim list reasons enspenspenspenspensp
Describe action plat to resolve enspenspenspenspensp
Comments enspenspenspenspensp
image1jpeg
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull This section of Table 15-2 describes the format an estimating approach we
are required to use when developing a proposal to modify an existingcontract In addition to the cost element breakdowns required as describedin the previous slides when there is a modification or change proposal FARalso requires the following table to be inserted into your proposal
41
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals
42FAR 15408 Table 15-2 III B
B Change Orders modifications and claims
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
Column 2 includes the cost of all work deleted This
includes cost of work deleted already performed (amount in Column 3) and
cost of work deleted not yet performed (Column 4)
Column 3 includes the cost of deleted work already
performed This amount will not be included in the credit (delete) adjustment amount (eg we will not give back costs already
incurred)
Column 4 includes cost for deleted work not yet performed ndash must be priced using current
estimates (but the current estimate may be the same as
the original estimate) ndash it is develed similar to a normal ldquoaddrdquo proposal with a few
exceptions
Column 5 includes the cost of the
new work and is developed as we do any
other proposal
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull Detail for columns listed on previous page
1 Enter appropriate cost element2 Enter current estimates of what it would take to complete the deleted work that
has not yet been performed3 Enter current cost of deleted work already performed This should be based on
actuals and copies to support these actuals should be included in the proposal4 Enter the net cost to be deleted (Column 2 minus Column 3)5 Enter your estimate for cost of work added by the change6 Enter the net cost of change (Column 5 minus Column 4)7 Identify where in your proposal the supporting documentation and basis of
estimate can be found for each of these sections
43FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull For purposes of determining if a proposal an cost or pricing data are
required from individual suppliers on a change proposal the absolute valueof the ldquodeleterdquo amount plus the ldquoaddrdquo amount is computed for each supplierthat exceeds the cost and pricing threshold (TINA)
bull Remember from FAR 15403-4(b) ndash if the absolute value for an individualsupplier exceeds the cost and pricing threshold (TINA) and the supplier iseither an actual supplier (will continue to provide partsservices on thiscontract) the supplier is required to provide a proposal and cost or pricingdata in support of the change proposal
bull Deleted amount is our current estimate (generally no the original contractvalue unless it is our current estimate)
44FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull If a supplierrsquos quantities are changing due to a modification the net delete
or add amount is used to determine if the supplier exceeds the cost andpricing threshold (TINA)
bull The estimator should not consider the old quantity as the delete and thenew quantity as the add (eg in computing absolute value) whendetermining if the supplier exceeds the threshold in cases where quantitiesare changing
bull The development of the appropriate deletion is not simply the estimatedcost of the deleted quantity ndash this will overstate the credit
45FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals Cost of WorkDeleted for a Partial Deleted Quantitybull In cases where part of a material quantity is being deleted (eg original
contract requires 100 widgets and the contract is modified to delete 30 ofthem) one method of estimating the amount of the delete is
1 Develop a current estimate of the extended cost for the item(s) given the originalquantity
2 Develop a current estimate of the extended cost for the items at the lower(remaining) quantity
3 The delta between these two values represents the amount of the delete
bull The same method can be used if the contract is modified to increase aquantity for a part
46FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklist
47
bull The Supplier Proposal Adequacy Checklist is accessed from the externalPSEMC supplier website
bull Additional supplier proposal guidance and resources are available(information templates and tools to assist in building a FAR compliantproposal
bull Supplier proposal guidance
bull Supplier Proposal Adequacy Guidelines
bull PSEMC document templates
bull Supplier proposal adequacy checklistbull Contract pricing proposal cover sheet
httpspsemccomsuppliers
- Strategic Affordability Analysis
- Purpose of this Guideline
- Table of Contents
- Table of Contents
- Supplier Proposal Adequacy Checklist
- Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
- Cover Sheet
- Cover Sheet Example ndash Reference Form DI-SUP-105F02
- Index
- Index Example
- Cost Element Breakdown by Line Item
- Cost Element Breakdown by Line Item Example
- Summary Cost Element Breakdown
- Summary Cost Element Breakdown - Example
- Summary Cost Element Breakdown - Example
- Material
- Material
- Individual Bills of Material Example
- Consolidated Bill of Material Example
- Consolidated Bill of Material
- Material
- Material
- Material
- Labor
- Labor
- Labor
- Labor Hours Example
- Labor Hours Example ndash Actual Production History
- Labor Hours Examples ndash Basis of Estimate
- Other Direct Costs (ODC)
- Nonrecurring Expenses (NRE)
- NRE
- Rates
- Rates
- Summary
- Summary
- Other Types of Proposals
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals Cost of WorkDeleted for a Partial Deleted Quantity
- Supplier Proposal Adequacy Checklist
-
| Buyer (Type or Print Name) | Date |
| Offeror | |||
| By | |||
| Title | |||
| Date |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp | ||
| (iii) Total number of customers involved in such sales | enspenspenspenspensp |
| (a) Transfer price(s) of such goods | $ enspenspenspenspensp | ||
| (b) Total units of such goods and or | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| Unmodified Items Identified in Part 1 | Modified Items Proposed to PSMEC | Unit Value of Modification | |||||||
| Unmodified Item | Unmodified Price | Modified Item | Modified Price to PSEMC | ||||||
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| To the general public in the time-frame beginning | enspenspenspenspensp | enspenspenspenspensp | and ending | enspenspenspenspensp |
| (a) Sales | |||||
| (b) Leases | |||||
| (c) Licenses | |||||
| (d) Offers to Sell 1 | |||||
| (e) Offers to Lease 2 | |||||
| (f) Offers to License 3 |
| Part Number | |||
| Description | |||
| Offeror |
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull Labor Hours
bull Proposed labor hours are generally a combination of direct and support laborhours
bull Direct Labor Hours ndash Hours that can be identified specifically to a final end itembull Support Labor Hours ndash Hours that cannot be specifically identified to one end item For
example a production manager may be in charge of overseeing the manufacturing ofmultiple parts
25FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull You need to provide a breakdown of the labor hours by labor category and
function along with a basis of estimate for the proposed labor hours
bull For example if you propose 500 hours for an end item you would need to providea breakdown by categoryfunction (assembly inspection supervisor engineeretc) You also will need to provide a detailed basis of estimate for eachcategoryfunction showing how your arrived at the hours for the proposed laborcategory
bull Generally the basis should be actual production history An alternative approach isthe use of engineering estimates if the item has not been manufactured before
bull Cost Accounting Standards (CAS) 401 requires that a company isconsistent between proposals and accounting practices The way acompany estimates its labor hours needs to also be the way it accumulatesits production history
26FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours ExampleProposal No HLQxxxxxDate January 1 20xx ABC Corporation
Labor HoursProposed Labor Hours ndash 8279 hrsunit for Part ABC
27
Direct Labor HrsUnitAssembly 3800 Machinist 350 QA 762 Engineer 1 238
Subtotal 5151
Production Support HrsUnitMfg Supervisor 920Eng Supervisor 368QA supervisor 920Production Mgr 920
Subtotal 3128
Total Hrs 8279
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Example ndash Actual Production History
28
ProposedDuration - Months 7 9 24 12 Qty 30 39 110 50 End Date 11152006 982007 912009
Direct Labor Total Hrs HrsUnit Total Hours HrsUnit Total Hrs HrsUnit Total Hrs HrsUnitAssembly 1836 6120 1675 4295 4338 3944 1900 3800 Machinist 169 564 154 396 400 363 175 350 QA 368 1238 336 862 870 791 381 762 Engineer 1 115 383 105 269 272 247 119 238
Production Support Total Hrs Total Hrs Total Hrs Total Hrs HrsUnitMFG Supervisor 268 345 920 460 920 Eng Supervisor 107 138 184 184 368 QA Supervisor 268 345 920 460 920 Production Mgr 268 345 920 460 920
HrsUnit 8279
Acutal Production History - Part ABC
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Examples ndash Basis of Estimatebull Basis of estimate for direct labor
bull Proposed direct labor hours were developed by apply a 90 percent learningcurve to the production labor history for part BBC You need to provide abasis for the 90 percent curve
bull Basis of estimate for the manufacturing supervisorbull The manufacturing supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 920 hours were used over a 24-month periodSince the current proposal has been estimated to cover 12 months 460hours were applied to the manufacturing supervisor (920 divided by 2)
bull Basis of estimate for engineering supervisorbull The engineering supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 184 hours were necessary to complete the taskThis task is similar and so we estimate 184 hours
29
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Direct Costs (ODC)bull List other expenses not otherwise included under material and labor (eg
travel freight) and provide basis for pricing
bull For example the basis for travel would include the location number of tripsnumber of people attending and the estimated expenses for the travel
30FAR 15408 Table 15-2 II D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Nonrecurring Expenses (NRE)bull NRE refers to one-time costs that you would not normally see from proposal
to proposal
bull Examples of NRE are as follows
bull Special Toolingbull New Equipmentbull Equipment Refurbishmentbull Hours and materials associated with increase throughput capacitybull Hours and materials to research develop design and test new processesbull One-Time review events
31FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
NREbull As mentioned earlier NRE charges must be broken out by cost element
This means the material and labor components associated with the NREare clearly broken out
bull Material ndash any material associated with NRE should be supported by supplierquotes or purchase orders
bull Labor ndash labor hours associated with NRE should have basis of estimates(BOE) that are broken down by labor category and include detaileddescriptions of the tasks that will be performed
32FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Rates include direct labor overhead general and administrative expenses
(GampA) and cost of money (COM)
bull PSEMC has the capability to perform rate audits on suppliers in lieu ofhaving the DCAA do this
bull If you allow PSEMC to perform this rate audit you need to provide thefollowing information
bull Explanation as to how the rates were calculatedbull Detailed documentation (financial statements labor pools listing of unallowable
expenses etc) that support the rate calculationsbull If the detailed documentation is based on budgetary numbers you will also need
to provide three years of your most current actuals to support you budgetarynumbers
bull If budgetary numbers differ significantly from the most recent actuals providedetailed explanations for these differences
33FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Facilities Capital COM
bull When you elect to claim COM submit a completed form CASB-CFM (FacilitiesCapital Cost of Money Factors Computation) in accordance with FAR 31205-10Also complete DD Form 1861 and include a copy in your proposal submissionBoth forms can be found on-line at various locations
34FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull In summary all noncompetitive noncommercial proposals valued at more
than the cost and pricing threshold (TINA) are required to include thefollowing information
35
Required Items Page FAR Reference
Supplier Proposal Adequacy Checklist Pg 5-6 PSEMC Policy
Cover Sheet - SF1411 or equivalent Pg 7-8 FAR 15408 Table 15-2 I A
Index Pg 9-10 FAR 15408 Table 15-2 I B
Cost Element Breakdown Pg 11-12 FAR 15408 Table 15-2 I D
Summary Cost Element Breakdown Pg 13-15 FAR 15408 Table 15-2 I E
Material (Including Consolidated BOM) Pg 16-23 FAR 15408 Table 15-2 II A
Labor Pg 24-29 FAR 15408 Table 15-2 II B
ODC Pg 30 FAR 15408 Table 15-2 II D
NRE Pg 31-32 FAR 15408 Table 15-2 II
Rates Pg 33-34 FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull Sufficient rationale and supporting documentation to support each of the
proposed cost elements is also required
bull Obtaining adequate supplier proposals is always on the critical path sincePSEMC cannot submit its proposal to the government until it has receivedadequate proposals from its subcontractors Therefore it is critical thatadequate supplier proposals are obtained as quickly as possible
36
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Types of Proposalsbull Commercial item proposals
bull Change proposals
bull The following slides are only applicable in certain situations
37
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you or one of your suppliers is providing a commercial part cost or pricing
data and a cost analysis is not required However you must demonstrate that the part is commercial and that the price is reasonable
bull A commercial item is any item other than real property that is a type customarily used by the general public or by a nongovernment entity
bull Has also been sold leased or licensed to the general public or has been offered for sale lease or license to the general public
bull A final commercial determination is made by the government contracting officer If the items is deemed to not be commercial the supplier is required to submit a complete proposal that includes cost and pricing data
38FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you claim one or more of your parts are commercial you need to support
your position by providing the following information
bull Copies of applicable portions of a company catalogue or website address that shows the item with a description and unit price
bull Show that these items can be purchased by the general public or nongovernmentalagency
bull If a website or catalogue is not available copies of invoices showing the sale of these items to nongovernment entities is sufficient
39FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull PSEMC policy requires suppliers to complete a PSEMC Supplier Proposal
Adequacy Checklist (sent with the RFP) for all proposals where the supplierclaims its parts are commercial
bull An example of the Supplier Proposal Adequacy Checklist for commercialitems is attached reference form DI-SUP-310F01
40PSEMC Policy
Pacific Scientific EMC ndash Commercial Item Status
If claiming an exemption offeror must provide the appropriate information to determine commerciality Refusal to provide the required information can result in an assist audit being requested from the Defense Contract Audit Agency or other cognizant Government Audit Agencies and or a determination that goods andor services offered do not constitute a ldquocommercial itemrdquo
Offeror hereby represents that to the best of its knowledge information and belief goods andor services offered constitute a ldquocommercial itemrdquo as defined by FAR 2101 because it constitutes
A Commercial Item or Component Justification (required for any claim)
Key Inquiries and Summary of your Supporting Information
What is the relevant ldquotyperdquo of item enspenspenspenspensp
What are the types of items uses by the general public or by non-governmental entities for other than governmental purposes enspenspenspenspensp
What indicates the type of itemrsquos use described above is customary enspenspenspenspensp
Has the offered item itself (as opposed to the type of item) been sold or offered for sale
|_| Yes|_| NO
Are the offered itemrsquos sales (or offers to sale) to the general public
|_| Yes|_| NO
Please provide data regarding sales leases or licenses of this item and identification of the non-government use entities
ValueNon-Government Use Entities
(date)(date)
In addition as an appendix to this commercial item determination provide supporting documentation in the form of
1that have not materialized into sales
2that have not materialized into leases
3that have not materialized into licenses
1 Verification of sales history to source documents
2 Identification of customarily offered discounts for the item
3 Verification of the item to an existing catalog or price list and
4 Verification of historical data for an item previously not determined commercial that the offeror is now trying to qualify as a commercial item
(check box(es) as appropriate)
|_| I Unmodified Commercial Items or Components (Complete Section A)
Any item other than real property that is a of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes and
(i) Has been sold leased or licensed to the general public or
(ii) Has been offered for sale lease or license to the general public
|_| II Item Evolved from Commercial Items or Components
Any item that evolved from an item described in Part I (which is required if claiming this exemption) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace but will be available in the commercial marketplace in time to satisfy the delivery requirements under a United States Government solicitation
If claiming the item Evolved from Commercial Items or Components exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use Part I)
|_| Yes|_| NO
If yes describe the relationship of the modifications to the Federal Government requirement enspenspenspenspensp
What are the advances in technology or performance between the offered item and the commercial item on which it is based enspenspenspenspensp
What is your support for such advances enspenspenspenspensp
What is your support for availability of the item in time to meet requirements Is the claim availability reasonable enspenspenspenspensp
Please provide data regarding
(a) Currently pending offers including
(b) Planned Offers Including
In all instances scheduled for delivery no later than the delivery requirements under the
(c) Data in the format of Part I for completed sales of the item from which the ldquocommercial itemrdquo evolved
|_| III Modified Commercial Items or Components
Any item that would satisfy a criterion expressed in Part I or II hereof but for -
|_| (i) Modifications of a type customarily available in the commercial marketplace
If claiming Modified Commercial Item or Components that are of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use part I or parts II and II)
|_| Yes|_| NO
What are the modifications that would be made to the commercial item enspenspenspenspensp
Are the modifications of a type customarily available in the commercial marketplace
|_| Yes|_| NO
Summarize your support for customary availability of the modification in the commercial marketplace enspenspenspenspensp
|_| (ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet federal government requirements ldquoMinor modificationsrdquo means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component or change the purpose of a process Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product Dollar values and percentages may be used as guideposts but are not conclusive evidence that a modification is minor
If claiming Modified Commercial Items or Components that are not of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Are the modifications made to satisfy Federal Government requirements
|_| Yes|_| NO
Do the modifications alter the nongovernmental function or essential physical characteristics of the item
|_| Yes|_| NO
If yes what are the alterations enspenspenspenspensp
Does the modified item retain a predominance of nongovernmental functions or physical characteristics
|_| Yes|_| NO
Summarize your support describing the value of the modifications in comparison to the value of the final product enspenspenspenspensp
Summarize your support for the magnitude or size of the modifications in relation to the magnitude or size of the final product enspenspenspenspensp
Are there any other factors which would allow you to conclude that the modifications are minor
|_| Yes|_| NO
If yes what are they enspenspenspenspensp
Based on the above does the modification qualify as a minor modification
|_| Yes|_| NO
Please provide data regarding the minor modification and the total price to PSEMC of Minor Modifications
Price to PSEMC of all Minor Modifications at quantities proposed in this pricing action enspenspenspenspensp
Minor modifications that exceed the thresholds in FAR 15403-1(c)(3)(iii)(B) are subject to the Certified Cost or Pricing Data requirements and must be proposed as described by FAR 15408 Table 152
|_| IV Commercial Items Support Services
Installation services maintenance services repair services training services and other services if -
(i) Such services are procured for support of an item referred to in Parts I II III or IV hereof regardless of whether such services are provided by the same source or at the same time as the item and
(ii) The source of such services provided similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government
If claiming Commercial Item Support Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services procured for the support of a commercial item which qualifies under a preceding part
|_| Yes|_| NO
Describe the nature of the services and how they support the commercial item enspenspenspenspensp
Are the services provided at the same time to the general public and the Federal Government
|_| Yes|_| NO
Are the terms and conditions for the services similar to those offered to the general public
|_| Yes|_| NO
Describe differences enspenspenspenspensp
Please provide data regarding
a Open and completed contracts including
b Pending offers including
|_| V Any Combination of Items
Meeting the requirements of Parts I II III or IV hereof that are of a type customarily combined and sold in combination to the general public
If you have checked the above box and are claiming the Any Combination of Items exemption please attach hereto information as requ3sted for Parts I II III and IV
|_| VI Other Commercial Services
Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions For purposes of these services -
(i) Catalog price means a price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor is either published or otherwise available for inspection by customers and states prices at which sales are currently or were last made to a significant number of buyers constituting the general public and
(ii) Market prices means current prices that are established in the course of ordinary trade between buyers and sellers free to bargain and that can be substantiated through competition or from source independent of the offerors
If claiming the Other Commercial Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services sold competitively in substantial quantities in the commercial marketplace
|_| Yes|_| NO
If no are the services of a type sold in substantial quantities in the commercial marketplace
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If yes what is the ldquotyperdquo of service enspenspenspenspensp
Summarize your support for same enspenspenspenspensp
Are the prices quoted for specific tasks performed or specific outcomes to be achieved
|_| Yes|_| NO
Are the services offered consistent with your standard terms and conditions
|_| Yes|_| NO
Are the services of a type sold at catalog or market prices
|_| Yes|_| NO
If sold at catalog price is the price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor
|_| Yes|_| NO
If sold at catalog price is the catalog or its equivalent either published or otherwise available for inspection by customers
|_| Yes|_| NO
Summarize your support for same (include a copy of the catalog or provide location) enspenspenspenspensp
If sold at a catalog price are the listed prices those at which sales are currently or were last made to a significant number of buyers in the general public
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If sold at a market price are the prices established in the course of ordinary trade between buyers and sellers free to bargain
|_| Yes|_| NO
Summarize you support for same enspenspenspenspensp
If sold at market price can the price be substantiated through competition or from sources independent of the offeror
|_| Yes|_| NO
Summarize your support for same
Please provide data regarding
(a) Open and completed contracts including
(b) Pending Offers including
|_| VII Any Item Combination of Items or Service
Referred to in Parts I through VI hereof notwithstanding the fact that the item combination of items or service is transferred between or among separate divisions subsidiaries or affiliates of the Offeror
If you have checked the above box and are claiming the ldquoAny item combination of items or Servicerdquo exemption please provide data regarding
|_| VIII Non-developmental Items
A non-developmental item as defined in FAR 2101 which has been developed exclusively at private expense and sold in substantial quantities on a competitive basis to multiple State and local governments
If claiming the Non-developmental Items exemption then the following must be provided
Key Inquiries and Summary of Supplierrsquos Supporting Information
Was the item previously developed
|_| Yes|_| NO
Was the item used exclusively for governmental purposes by a Federal agency a State or local government or a foreign government with which the United States has mutual defense cooperation agreement
|_| Yes|_| NO
If the item is to be modified do the modifications comply with Part III guidance on modifications
|_| Yes|_| NO
If the item is not yet in use does it otherwise qualify as a non-developmental item
|_| Yes|_| NO
Was the item developed exclusively at private expense
|_| Yes|_| NO
Is the item sold in substantial quantities on a competitive basis to multiple State and local governments
|_| Yes|_| NO
Please provide data regarding
|_| IX General Inquiries
Does the item qualify as a combination of items under Parts I II III and IV above
|_| Yes|_| NO
Has the item or services previously been determined to be commercial
|_| Yes|_| NO
If so by whom enspenspenspenspensp
|_| X Other Information
Is there other information of which you are aware that would supplement the information provided and would help substantiate whether the item or service is commercial
|_| Yes|_| NO
Have you provided such information
|_| Yes|_| NO
List such information enspenspenspenspensp
|_| XI Supplier Determination
Offeror hereby represents that the foregoing information is accurate and complete and that to the best of its knowledge information and belief goods and or services offered currently constitute ldquoa commercial itemrdquo as defined by FAR 2101
For PSEMC Internal Use Only
XII Supplier Determination
Supplier has claimed that the item component or service identified above is a commercial item under the definition at FAR 2101 I have reviewed and summarized the supplierrsquos support for that claim in the appropriate sections above Based on such review of such support information and any other information identified elsewhere herein I conclude that the supplier
|_| HAS |_| HAS NOT Supported its claim of commercial item status under the definition at FAR 2101
If the supplier HAS NOT supported its claim list reasons enspenspenspenspensp
Describe action plat to resolve enspenspenspenspensp
Comments enspenspenspenspensp
image1jpeg
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull This section of Table 15-2 describes the format an estimating approach we
are required to use when developing a proposal to modify an existingcontract In addition to the cost element breakdowns required as describedin the previous slides when there is a modification or change proposal FARalso requires the following table to be inserted into your proposal
41
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals
42FAR 15408 Table 15-2 III B
B Change Orders modifications and claims
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
Column 2 includes the cost of all work deleted This
includes cost of work deleted already performed (amount in Column 3) and
cost of work deleted not yet performed (Column 4)
Column 3 includes the cost of deleted work already
performed This amount will not be included in the credit (delete) adjustment amount (eg we will not give back costs already
incurred)
Column 4 includes cost for deleted work not yet performed ndash must be priced using current
estimates (but the current estimate may be the same as
the original estimate) ndash it is develed similar to a normal ldquoaddrdquo proposal with a few
exceptions
Column 5 includes the cost of the
new work and is developed as we do any
other proposal
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull Detail for columns listed on previous page
1 Enter appropriate cost element2 Enter current estimates of what it would take to complete the deleted work that
has not yet been performed3 Enter current cost of deleted work already performed This should be based on
actuals and copies to support these actuals should be included in the proposal4 Enter the net cost to be deleted (Column 2 minus Column 3)5 Enter your estimate for cost of work added by the change6 Enter the net cost of change (Column 5 minus Column 4)7 Identify where in your proposal the supporting documentation and basis of
estimate can be found for each of these sections
43FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull For purposes of determining if a proposal an cost or pricing data are
required from individual suppliers on a change proposal the absolute valueof the ldquodeleterdquo amount plus the ldquoaddrdquo amount is computed for each supplierthat exceeds the cost and pricing threshold (TINA)
bull Remember from FAR 15403-4(b) ndash if the absolute value for an individualsupplier exceeds the cost and pricing threshold (TINA) and the supplier iseither an actual supplier (will continue to provide partsservices on thiscontract) the supplier is required to provide a proposal and cost or pricingdata in support of the change proposal
bull Deleted amount is our current estimate (generally no the original contractvalue unless it is our current estimate)
44FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull If a supplierrsquos quantities are changing due to a modification the net delete
or add amount is used to determine if the supplier exceeds the cost andpricing threshold (TINA)
bull The estimator should not consider the old quantity as the delete and thenew quantity as the add (eg in computing absolute value) whendetermining if the supplier exceeds the threshold in cases where quantitiesare changing
bull The development of the appropriate deletion is not simply the estimatedcost of the deleted quantity ndash this will overstate the credit
45FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals Cost of WorkDeleted for a Partial Deleted Quantitybull In cases where part of a material quantity is being deleted (eg original
contract requires 100 widgets and the contract is modified to delete 30 ofthem) one method of estimating the amount of the delete is
1 Develop a current estimate of the extended cost for the item(s) given the originalquantity
2 Develop a current estimate of the extended cost for the items at the lower(remaining) quantity
3 The delta between these two values represents the amount of the delete
bull The same method can be used if the contract is modified to increase aquantity for a part
46FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklist
47
bull The Supplier Proposal Adequacy Checklist is accessed from the externalPSEMC supplier website
bull Additional supplier proposal guidance and resources are available(information templates and tools to assist in building a FAR compliantproposal
bull Supplier proposal guidance
bull Supplier Proposal Adequacy Guidelines
bull PSEMC document templates
bull Supplier proposal adequacy checklistbull Contract pricing proposal cover sheet
httpspsemccomsuppliers
- Strategic Affordability Analysis
- Purpose of this Guideline
- Table of Contents
- Table of Contents
- Supplier Proposal Adequacy Checklist
- Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
- Cover Sheet
- Cover Sheet Example ndash Reference Form DI-SUP-105F02
- Index
- Index Example
- Cost Element Breakdown by Line Item
- Cost Element Breakdown by Line Item Example
- Summary Cost Element Breakdown
- Summary Cost Element Breakdown - Example
- Summary Cost Element Breakdown - Example
- Material
- Material
- Individual Bills of Material Example
- Consolidated Bill of Material Example
- Consolidated Bill of Material
- Material
- Material
- Material
- Labor
- Labor
- Labor
- Labor Hours Example
- Labor Hours Example ndash Actual Production History
- Labor Hours Examples ndash Basis of Estimate
- Other Direct Costs (ODC)
- Nonrecurring Expenses (NRE)
- NRE
- Rates
- Rates
- Summary
- Summary
- Other Types of Proposals
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals Cost of WorkDeleted for a Partial Deleted Quantity
- Supplier Proposal Adequacy Checklist
-
| Buyer (Type or Print Name) | Date |
| Offeror | |||
| By | |||
| Title | |||
| Date |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp | ||
| (iii) Total number of customers involved in such sales | enspenspenspenspensp |
| (a) Transfer price(s) of such goods | $ enspenspenspenspensp | ||
| (b) Total units of such goods and or | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| Unmodified Items Identified in Part 1 | Modified Items Proposed to PSMEC | Unit Value of Modification | |||||||
| Unmodified Item | Unmodified Price | Modified Item | Modified Price to PSEMC | ||||||
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| To the general public in the time-frame beginning | enspenspenspenspensp | enspenspenspenspensp | and ending | enspenspenspenspensp |
| (a) Sales | |||||
| (b) Leases | |||||
| (c) Licenses | |||||
| (d) Offers to Sell 1 | |||||
| (e) Offers to Lease 2 | |||||
| (f) Offers to License 3 |
| Part Number | |||
| Description | |||
| Offeror |
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Laborbull You need to provide a breakdown of the labor hours by labor category and
function along with a basis of estimate for the proposed labor hours
bull For example if you propose 500 hours for an end item you would need to providea breakdown by categoryfunction (assembly inspection supervisor engineeretc) You also will need to provide a detailed basis of estimate for eachcategoryfunction showing how your arrived at the hours for the proposed laborcategory
bull Generally the basis should be actual production history An alternative approach isthe use of engineering estimates if the item has not been manufactured before
bull Cost Accounting Standards (CAS) 401 requires that a company isconsistent between proposals and accounting practices The way acompany estimates its labor hours needs to also be the way it accumulatesits production history
26FAR 15408 Table 15-2 II B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours ExampleProposal No HLQxxxxxDate January 1 20xx ABC Corporation
Labor HoursProposed Labor Hours ndash 8279 hrsunit for Part ABC
27
Direct Labor HrsUnitAssembly 3800 Machinist 350 QA 762 Engineer 1 238
Subtotal 5151
Production Support HrsUnitMfg Supervisor 920Eng Supervisor 368QA supervisor 920Production Mgr 920
Subtotal 3128
Total Hrs 8279
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Example ndash Actual Production History
28
ProposedDuration - Months 7 9 24 12 Qty 30 39 110 50 End Date 11152006 982007 912009
Direct Labor Total Hrs HrsUnit Total Hours HrsUnit Total Hrs HrsUnit Total Hrs HrsUnitAssembly 1836 6120 1675 4295 4338 3944 1900 3800 Machinist 169 564 154 396 400 363 175 350 QA 368 1238 336 862 870 791 381 762 Engineer 1 115 383 105 269 272 247 119 238
Production Support Total Hrs Total Hrs Total Hrs Total Hrs HrsUnitMFG Supervisor 268 345 920 460 920 Eng Supervisor 107 138 184 184 368 QA Supervisor 268 345 920 460 920 Production Mgr 268 345 920 460 920
HrsUnit 8279
Acutal Production History - Part ABC
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Examples ndash Basis of Estimatebull Basis of estimate for direct labor
bull Proposed direct labor hours were developed by apply a 90 percent learningcurve to the production labor history for part BBC You need to provide abasis for the 90 percent curve
bull Basis of estimate for the manufacturing supervisorbull The manufacturing supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 920 hours were used over a 24-month periodSince the current proposal has been estimated to cover 12 months 460hours were applied to the manufacturing supervisor (920 divided by 2)
bull Basis of estimate for engineering supervisorbull The engineering supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 184 hours were necessary to complete the taskThis task is similar and so we estimate 184 hours
29
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Direct Costs (ODC)bull List other expenses not otherwise included under material and labor (eg
travel freight) and provide basis for pricing
bull For example the basis for travel would include the location number of tripsnumber of people attending and the estimated expenses for the travel
30FAR 15408 Table 15-2 II D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Nonrecurring Expenses (NRE)bull NRE refers to one-time costs that you would not normally see from proposal
to proposal
bull Examples of NRE are as follows
bull Special Toolingbull New Equipmentbull Equipment Refurbishmentbull Hours and materials associated with increase throughput capacitybull Hours and materials to research develop design and test new processesbull One-Time review events
31FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
NREbull As mentioned earlier NRE charges must be broken out by cost element
This means the material and labor components associated with the NREare clearly broken out
bull Material ndash any material associated with NRE should be supported by supplierquotes or purchase orders
bull Labor ndash labor hours associated with NRE should have basis of estimates(BOE) that are broken down by labor category and include detaileddescriptions of the tasks that will be performed
32FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Rates include direct labor overhead general and administrative expenses
(GampA) and cost of money (COM)
bull PSEMC has the capability to perform rate audits on suppliers in lieu ofhaving the DCAA do this
bull If you allow PSEMC to perform this rate audit you need to provide thefollowing information
bull Explanation as to how the rates were calculatedbull Detailed documentation (financial statements labor pools listing of unallowable
expenses etc) that support the rate calculationsbull If the detailed documentation is based on budgetary numbers you will also need
to provide three years of your most current actuals to support you budgetarynumbers
bull If budgetary numbers differ significantly from the most recent actuals providedetailed explanations for these differences
33FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Facilities Capital COM
bull When you elect to claim COM submit a completed form CASB-CFM (FacilitiesCapital Cost of Money Factors Computation) in accordance with FAR 31205-10Also complete DD Form 1861 and include a copy in your proposal submissionBoth forms can be found on-line at various locations
34FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull In summary all noncompetitive noncommercial proposals valued at more
than the cost and pricing threshold (TINA) are required to include thefollowing information
35
Required Items Page FAR Reference
Supplier Proposal Adequacy Checklist Pg 5-6 PSEMC Policy
Cover Sheet - SF1411 or equivalent Pg 7-8 FAR 15408 Table 15-2 I A
Index Pg 9-10 FAR 15408 Table 15-2 I B
Cost Element Breakdown Pg 11-12 FAR 15408 Table 15-2 I D
Summary Cost Element Breakdown Pg 13-15 FAR 15408 Table 15-2 I E
Material (Including Consolidated BOM) Pg 16-23 FAR 15408 Table 15-2 II A
Labor Pg 24-29 FAR 15408 Table 15-2 II B
ODC Pg 30 FAR 15408 Table 15-2 II D
NRE Pg 31-32 FAR 15408 Table 15-2 II
Rates Pg 33-34 FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull Sufficient rationale and supporting documentation to support each of the
proposed cost elements is also required
bull Obtaining adequate supplier proposals is always on the critical path sincePSEMC cannot submit its proposal to the government until it has receivedadequate proposals from its subcontractors Therefore it is critical thatadequate supplier proposals are obtained as quickly as possible
36
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Types of Proposalsbull Commercial item proposals
bull Change proposals
bull The following slides are only applicable in certain situations
37
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you or one of your suppliers is providing a commercial part cost or pricing
data and a cost analysis is not required However you must demonstrate that the part is commercial and that the price is reasonable
bull A commercial item is any item other than real property that is a type customarily used by the general public or by a nongovernment entity
bull Has also been sold leased or licensed to the general public or has been offered for sale lease or license to the general public
bull A final commercial determination is made by the government contracting officer If the items is deemed to not be commercial the supplier is required to submit a complete proposal that includes cost and pricing data
38FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you claim one or more of your parts are commercial you need to support
your position by providing the following information
bull Copies of applicable portions of a company catalogue or website address that shows the item with a description and unit price
bull Show that these items can be purchased by the general public or nongovernmentalagency
bull If a website or catalogue is not available copies of invoices showing the sale of these items to nongovernment entities is sufficient
39FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull PSEMC policy requires suppliers to complete a PSEMC Supplier Proposal
Adequacy Checklist (sent with the RFP) for all proposals where the supplierclaims its parts are commercial
bull An example of the Supplier Proposal Adequacy Checklist for commercialitems is attached reference form DI-SUP-310F01
40PSEMC Policy
Pacific Scientific EMC ndash Commercial Item Status
If claiming an exemption offeror must provide the appropriate information to determine commerciality Refusal to provide the required information can result in an assist audit being requested from the Defense Contract Audit Agency or other cognizant Government Audit Agencies and or a determination that goods andor services offered do not constitute a ldquocommercial itemrdquo
Offeror hereby represents that to the best of its knowledge information and belief goods andor services offered constitute a ldquocommercial itemrdquo as defined by FAR 2101 because it constitutes
A Commercial Item or Component Justification (required for any claim)
Key Inquiries and Summary of your Supporting Information
What is the relevant ldquotyperdquo of item enspenspenspenspensp
What are the types of items uses by the general public or by non-governmental entities for other than governmental purposes enspenspenspenspensp
What indicates the type of itemrsquos use described above is customary enspenspenspenspensp
Has the offered item itself (as opposed to the type of item) been sold or offered for sale
|_| Yes|_| NO
Are the offered itemrsquos sales (or offers to sale) to the general public
|_| Yes|_| NO
Please provide data regarding sales leases or licenses of this item and identification of the non-government use entities
ValueNon-Government Use Entities
(date)(date)
In addition as an appendix to this commercial item determination provide supporting documentation in the form of
1that have not materialized into sales
2that have not materialized into leases
3that have not materialized into licenses
1 Verification of sales history to source documents
2 Identification of customarily offered discounts for the item
3 Verification of the item to an existing catalog or price list and
4 Verification of historical data for an item previously not determined commercial that the offeror is now trying to qualify as a commercial item
(check box(es) as appropriate)
|_| I Unmodified Commercial Items or Components (Complete Section A)
Any item other than real property that is a of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes and
(i) Has been sold leased or licensed to the general public or
(ii) Has been offered for sale lease or license to the general public
|_| II Item Evolved from Commercial Items or Components
Any item that evolved from an item described in Part I (which is required if claiming this exemption) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace but will be available in the commercial marketplace in time to satisfy the delivery requirements under a United States Government solicitation
If claiming the item Evolved from Commercial Items or Components exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use Part I)
|_| Yes|_| NO
If yes describe the relationship of the modifications to the Federal Government requirement enspenspenspenspensp
What are the advances in technology or performance between the offered item and the commercial item on which it is based enspenspenspenspensp
What is your support for such advances enspenspenspenspensp
What is your support for availability of the item in time to meet requirements Is the claim availability reasonable enspenspenspenspensp
Please provide data regarding
(a) Currently pending offers including
(b) Planned Offers Including
In all instances scheduled for delivery no later than the delivery requirements under the
(c) Data in the format of Part I for completed sales of the item from which the ldquocommercial itemrdquo evolved
|_| III Modified Commercial Items or Components
Any item that would satisfy a criterion expressed in Part I or II hereof but for -
|_| (i) Modifications of a type customarily available in the commercial marketplace
If claiming Modified Commercial Item or Components that are of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use part I or parts II and II)
|_| Yes|_| NO
What are the modifications that would be made to the commercial item enspenspenspenspensp
Are the modifications of a type customarily available in the commercial marketplace
|_| Yes|_| NO
Summarize your support for customary availability of the modification in the commercial marketplace enspenspenspenspensp
|_| (ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet federal government requirements ldquoMinor modificationsrdquo means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component or change the purpose of a process Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product Dollar values and percentages may be used as guideposts but are not conclusive evidence that a modification is minor
If claiming Modified Commercial Items or Components that are not of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Are the modifications made to satisfy Federal Government requirements
|_| Yes|_| NO
Do the modifications alter the nongovernmental function or essential physical characteristics of the item
|_| Yes|_| NO
If yes what are the alterations enspenspenspenspensp
Does the modified item retain a predominance of nongovernmental functions or physical characteristics
|_| Yes|_| NO
Summarize your support describing the value of the modifications in comparison to the value of the final product enspenspenspenspensp
Summarize your support for the magnitude or size of the modifications in relation to the magnitude or size of the final product enspenspenspenspensp
Are there any other factors which would allow you to conclude that the modifications are minor
|_| Yes|_| NO
If yes what are they enspenspenspenspensp
Based on the above does the modification qualify as a minor modification
|_| Yes|_| NO
Please provide data regarding the minor modification and the total price to PSEMC of Minor Modifications
Price to PSEMC of all Minor Modifications at quantities proposed in this pricing action enspenspenspenspensp
Minor modifications that exceed the thresholds in FAR 15403-1(c)(3)(iii)(B) are subject to the Certified Cost or Pricing Data requirements and must be proposed as described by FAR 15408 Table 152
|_| IV Commercial Items Support Services
Installation services maintenance services repair services training services and other services if -
(i) Such services are procured for support of an item referred to in Parts I II III or IV hereof regardless of whether such services are provided by the same source or at the same time as the item and
(ii) The source of such services provided similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government
If claiming Commercial Item Support Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services procured for the support of a commercial item which qualifies under a preceding part
|_| Yes|_| NO
Describe the nature of the services and how they support the commercial item enspenspenspenspensp
Are the services provided at the same time to the general public and the Federal Government
|_| Yes|_| NO
Are the terms and conditions for the services similar to those offered to the general public
|_| Yes|_| NO
Describe differences enspenspenspenspensp
Please provide data regarding
a Open and completed contracts including
b Pending offers including
|_| V Any Combination of Items
Meeting the requirements of Parts I II III or IV hereof that are of a type customarily combined and sold in combination to the general public
If you have checked the above box and are claiming the Any Combination of Items exemption please attach hereto information as requ3sted for Parts I II III and IV
|_| VI Other Commercial Services
Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions For purposes of these services -
(i) Catalog price means a price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor is either published or otherwise available for inspection by customers and states prices at which sales are currently or were last made to a significant number of buyers constituting the general public and
(ii) Market prices means current prices that are established in the course of ordinary trade between buyers and sellers free to bargain and that can be substantiated through competition or from source independent of the offerors
If claiming the Other Commercial Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services sold competitively in substantial quantities in the commercial marketplace
|_| Yes|_| NO
If no are the services of a type sold in substantial quantities in the commercial marketplace
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If yes what is the ldquotyperdquo of service enspenspenspenspensp
Summarize your support for same enspenspenspenspensp
Are the prices quoted for specific tasks performed or specific outcomes to be achieved
|_| Yes|_| NO
Are the services offered consistent with your standard terms and conditions
|_| Yes|_| NO
Are the services of a type sold at catalog or market prices
|_| Yes|_| NO
If sold at catalog price is the price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor
|_| Yes|_| NO
If sold at catalog price is the catalog or its equivalent either published or otherwise available for inspection by customers
|_| Yes|_| NO
Summarize your support for same (include a copy of the catalog or provide location) enspenspenspenspensp
If sold at a catalog price are the listed prices those at which sales are currently or were last made to a significant number of buyers in the general public
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If sold at a market price are the prices established in the course of ordinary trade between buyers and sellers free to bargain
|_| Yes|_| NO
Summarize you support for same enspenspenspenspensp
If sold at market price can the price be substantiated through competition or from sources independent of the offeror
|_| Yes|_| NO
Summarize your support for same
Please provide data regarding
(a) Open and completed contracts including
(b) Pending Offers including
|_| VII Any Item Combination of Items or Service
Referred to in Parts I through VI hereof notwithstanding the fact that the item combination of items or service is transferred between or among separate divisions subsidiaries or affiliates of the Offeror
If you have checked the above box and are claiming the ldquoAny item combination of items or Servicerdquo exemption please provide data regarding
|_| VIII Non-developmental Items
A non-developmental item as defined in FAR 2101 which has been developed exclusively at private expense and sold in substantial quantities on a competitive basis to multiple State and local governments
If claiming the Non-developmental Items exemption then the following must be provided
Key Inquiries and Summary of Supplierrsquos Supporting Information
Was the item previously developed
|_| Yes|_| NO
Was the item used exclusively for governmental purposes by a Federal agency a State or local government or a foreign government with which the United States has mutual defense cooperation agreement
|_| Yes|_| NO
If the item is to be modified do the modifications comply with Part III guidance on modifications
|_| Yes|_| NO
If the item is not yet in use does it otherwise qualify as a non-developmental item
|_| Yes|_| NO
Was the item developed exclusively at private expense
|_| Yes|_| NO
Is the item sold in substantial quantities on a competitive basis to multiple State and local governments
|_| Yes|_| NO
Please provide data regarding
|_| IX General Inquiries
Does the item qualify as a combination of items under Parts I II III and IV above
|_| Yes|_| NO
Has the item or services previously been determined to be commercial
|_| Yes|_| NO
If so by whom enspenspenspenspensp
|_| X Other Information
Is there other information of which you are aware that would supplement the information provided and would help substantiate whether the item or service is commercial
|_| Yes|_| NO
Have you provided such information
|_| Yes|_| NO
List such information enspenspenspenspensp
|_| XI Supplier Determination
Offeror hereby represents that the foregoing information is accurate and complete and that to the best of its knowledge information and belief goods and or services offered currently constitute ldquoa commercial itemrdquo as defined by FAR 2101
For PSEMC Internal Use Only
XII Supplier Determination
Supplier has claimed that the item component or service identified above is a commercial item under the definition at FAR 2101 I have reviewed and summarized the supplierrsquos support for that claim in the appropriate sections above Based on such review of such support information and any other information identified elsewhere herein I conclude that the supplier
|_| HAS |_| HAS NOT Supported its claim of commercial item status under the definition at FAR 2101
If the supplier HAS NOT supported its claim list reasons enspenspenspenspensp
Describe action plat to resolve enspenspenspenspensp
Comments enspenspenspenspensp
image1jpeg
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull This section of Table 15-2 describes the format an estimating approach we
are required to use when developing a proposal to modify an existingcontract In addition to the cost element breakdowns required as describedin the previous slides when there is a modification or change proposal FARalso requires the following table to be inserted into your proposal
41
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals
42FAR 15408 Table 15-2 III B
B Change Orders modifications and claims
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
Column 2 includes the cost of all work deleted This
includes cost of work deleted already performed (amount in Column 3) and
cost of work deleted not yet performed (Column 4)
Column 3 includes the cost of deleted work already
performed This amount will not be included in the credit (delete) adjustment amount (eg we will not give back costs already
incurred)
Column 4 includes cost for deleted work not yet performed ndash must be priced using current
estimates (but the current estimate may be the same as
the original estimate) ndash it is develed similar to a normal ldquoaddrdquo proposal with a few
exceptions
Column 5 includes the cost of the
new work and is developed as we do any
other proposal
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull Detail for columns listed on previous page
1 Enter appropriate cost element2 Enter current estimates of what it would take to complete the deleted work that
has not yet been performed3 Enter current cost of deleted work already performed This should be based on
actuals and copies to support these actuals should be included in the proposal4 Enter the net cost to be deleted (Column 2 minus Column 3)5 Enter your estimate for cost of work added by the change6 Enter the net cost of change (Column 5 minus Column 4)7 Identify where in your proposal the supporting documentation and basis of
estimate can be found for each of these sections
43FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull For purposes of determining if a proposal an cost or pricing data are
required from individual suppliers on a change proposal the absolute valueof the ldquodeleterdquo amount plus the ldquoaddrdquo amount is computed for each supplierthat exceeds the cost and pricing threshold (TINA)
bull Remember from FAR 15403-4(b) ndash if the absolute value for an individualsupplier exceeds the cost and pricing threshold (TINA) and the supplier iseither an actual supplier (will continue to provide partsservices on thiscontract) the supplier is required to provide a proposal and cost or pricingdata in support of the change proposal
bull Deleted amount is our current estimate (generally no the original contractvalue unless it is our current estimate)
44FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull If a supplierrsquos quantities are changing due to a modification the net delete
or add amount is used to determine if the supplier exceeds the cost andpricing threshold (TINA)
bull The estimator should not consider the old quantity as the delete and thenew quantity as the add (eg in computing absolute value) whendetermining if the supplier exceeds the threshold in cases where quantitiesare changing
bull The development of the appropriate deletion is not simply the estimatedcost of the deleted quantity ndash this will overstate the credit
45FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals Cost of WorkDeleted for a Partial Deleted Quantitybull In cases where part of a material quantity is being deleted (eg original
contract requires 100 widgets and the contract is modified to delete 30 ofthem) one method of estimating the amount of the delete is
1 Develop a current estimate of the extended cost for the item(s) given the originalquantity
2 Develop a current estimate of the extended cost for the items at the lower(remaining) quantity
3 The delta between these two values represents the amount of the delete
bull The same method can be used if the contract is modified to increase aquantity for a part
46FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklist
47
bull The Supplier Proposal Adequacy Checklist is accessed from the externalPSEMC supplier website
bull Additional supplier proposal guidance and resources are available(information templates and tools to assist in building a FAR compliantproposal
bull Supplier proposal guidance
bull Supplier Proposal Adequacy Guidelines
bull PSEMC document templates
bull Supplier proposal adequacy checklistbull Contract pricing proposal cover sheet
httpspsemccomsuppliers
- Strategic Affordability Analysis
- Purpose of this Guideline
- Table of Contents
- Table of Contents
- Supplier Proposal Adequacy Checklist
- Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
- Cover Sheet
- Cover Sheet Example ndash Reference Form DI-SUP-105F02
- Index
- Index Example
- Cost Element Breakdown by Line Item
- Cost Element Breakdown by Line Item Example
- Summary Cost Element Breakdown
- Summary Cost Element Breakdown - Example
- Summary Cost Element Breakdown - Example
- Material
- Material
- Individual Bills of Material Example
- Consolidated Bill of Material Example
- Consolidated Bill of Material
- Material
- Material
- Material
- Labor
- Labor
- Labor
- Labor Hours Example
- Labor Hours Example ndash Actual Production History
- Labor Hours Examples ndash Basis of Estimate
- Other Direct Costs (ODC)
- Nonrecurring Expenses (NRE)
- NRE
- Rates
- Rates
- Summary
- Summary
- Other Types of Proposals
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals Cost of WorkDeleted for a Partial Deleted Quantity
- Supplier Proposal Adequacy Checklist
-
| Buyer (Type or Print Name) | Date |
| Offeror | |||
| By | |||
| Title | |||
| Date |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp | ||
| (iii) Total number of customers involved in such sales | enspenspenspenspensp |
| (a) Transfer price(s) of such goods | $ enspenspenspenspensp | ||
| (b) Total units of such goods and or | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| Unmodified Items Identified in Part 1 | Modified Items Proposed to PSMEC | Unit Value of Modification | |||||||
| Unmodified Item | Unmodified Price | Modified Item | Modified Price to PSEMC | ||||||
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| To the general public in the time-frame beginning | enspenspenspenspensp | enspenspenspenspensp | and ending | enspenspenspenspensp |
| (a) Sales | |||||
| (b) Leases | |||||
| (c) Licenses | |||||
| (d) Offers to Sell 1 | |||||
| (e) Offers to Lease 2 | |||||
| (f) Offers to License 3 |
| Part Number | |||
| Description | |||
| Offeror |
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours ExampleProposal No HLQxxxxxDate January 1 20xx ABC Corporation
Labor HoursProposed Labor Hours ndash 8279 hrsunit for Part ABC
27
Direct Labor HrsUnitAssembly 3800 Machinist 350 QA 762 Engineer 1 238
Subtotal 5151
Production Support HrsUnitMfg Supervisor 920Eng Supervisor 368QA supervisor 920Production Mgr 920
Subtotal 3128
Total Hrs 8279
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Example ndash Actual Production History
28
ProposedDuration - Months 7 9 24 12 Qty 30 39 110 50 End Date 11152006 982007 912009
Direct Labor Total Hrs HrsUnit Total Hours HrsUnit Total Hrs HrsUnit Total Hrs HrsUnitAssembly 1836 6120 1675 4295 4338 3944 1900 3800 Machinist 169 564 154 396 400 363 175 350 QA 368 1238 336 862 870 791 381 762 Engineer 1 115 383 105 269 272 247 119 238
Production Support Total Hrs Total Hrs Total Hrs Total Hrs HrsUnitMFG Supervisor 268 345 920 460 920 Eng Supervisor 107 138 184 184 368 QA Supervisor 268 345 920 460 920 Production Mgr 268 345 920 460 920
HrsUnit 8279
Acutal Production History - Part ABC
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Examples ndash Basis of Estimatebull Basis of estimate for direct labor
bull Proposed direct labor hours were developed by apply a 90 percent learningcurve to the production labor history for part BBC You need to provide abasis for the 90 percent curve
bull Basis of estimate for the manufacturing supervisorbull The manufacturing supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 920 hours were used over a 24-month periodSince the current proposal has been estimated to cover 12 months 460hours were applied to the manufacturing supervisor (920 divided by 2)
bull Basis of estimate for engineering supervisorbull The engineering supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 184 hours were necessary to complete the taskThis task is similar and so we estimate 184 hours
29
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Direct Costs (ODC)bull List other expenses not otherwise included under material and labor (eg
travel freight) and provide basis for pricing
bull For example the basis for travel would include the location number of tripsnumber of people attending and the estimated expenses for the travel
30FAR 15408 Table 15-2 II D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Nonrecurring Expenses (NRE)bull NRE refers to one-time costs that you would not normally see from proposal
to proposal
bull Examples of NRE are as follows
bull Special Toolingbull New Equipmentbull Equipment Refurbishmentbull Hours and materials associated with increase throughput capacitybull Hours and materials to research develop design and test new processesbull One-Time review events
31FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
NREbull As mentioned earlier NRE charges must be broken out by cost element
This means the material and labor components associated with the NREare clearly broken out
bull Material ndash any material associated with NRE should be supported by supplierquotes or purchase orders
bull Labor ndash labor hours associated with NRE should have basis of estimates(BOE) that are broken down by labor category and include detaileddescriptions of the tasks that will be performed
32FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Rates include direct labor overhead general and administrative expenses
(GampA) and cost of money (COM)
bull PSEMC has the capability to perform rate audits on suppliers in lieu ofhaving the DCAA do this
bull If you allow PSEMC to perform this rate audit you need to provide thefollowing information
bull Explanation as to how the rates were calculatedbull Detailed documentation (financial statements labor pools listing of unallowable
expenses etc) that support the rate calculationsbull If the detailed documentation is based on budgetary numbers you will also need
to provide three years of your most current actuals to support you budgetarynumbers
bull If budgetary numbers differ significantly from the most recent actuals providedetailed explanations for these differences
33FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Facilities Capital COM
bull When you elect to claim COM submit a completed form CASB-CFM (FacilitiesCapital Cost of Money Factors Computation) in accordance with FAR 31205-10Also complete DD Form 1861 and include a copy in your proposal submissionBoth forms can be found on-line at various locations
34FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull In summary all noncompetitive noncommercial proposals valued at more
than the cost and pricing threshold (TINA) are required to include thefollowing information
35
Required Items Page FAR Reference
Supplier Proposal Adequacy Checklist Pg 5-6 PSEMC Policy
Cover Sheet - SF1411 or equivalent Pg 7-8 FAR 15408 Table 15-2 I A
Index Pg 9-10 FAR 15408 Table 15-2 I B
Cost Element Breakdown Pg 11-12 FAR 15408 Table 15-2 I D
Summary Cost Element Breakdown Pg 13-15 FAR 15408 Table 15-2 I E
Material (Including Consolidated BOM) Pg 16-23 FAR 15408 Table 15-2 II A
Labor Pg 24-29 FAR 15408 Table 15-2 II B
ODC Pg 30 FAR 15408 Table 15-2 II D
NRE Pg 31-32 FAR 15408 Table 15-2 II
Rates Pg 33-34 FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull Sufficient rationale and supporting documentation to support each of the
proposed cost elements is also required
bull Obtaining adequate supplier proposals is always on the critical path sincePSEMC cannot submit its proposal to the government until it has receivedadequate proposals from its subcontractors Therefore it is critical thatadequate supplier proposals are obtained as quickly as possible
36
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Types of Proposalsbull Commercial item proposals
bull Change proposals
bull The following slides are only applicable in certain situations
37
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you or one of your suppliers is providing a commercial part cost or pricing
data and a cost analysis is not required However you must demonstrate that the part is commercial and that the price is reasonable
bull A commercial item is any item other than real property that is a type customarily used by the general public or by a nongovernment entity
bull Has also been sold leased or licensed to the general public or has been offered for sale lease or license to the general public
bull A final commercial determination is made by the government contracting officer If the items is deemed to not be commercial the supplier is required to submit a complete proposal that includes cost and pricing data
38FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you claim one or more of your parts are commercial you need to support
your position by providing the following information
bull Copies of applicable portions of a company catalogue or website address that shows the item with a description and unit price
bull Show that these items can be purchased by the general public or nongovernmentalagency
bull If a website or catalogue is not available copies of invoices showing the sale of these items to nongovernment entities is sufficient
39FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull PSEMC policy requires suppliers to complete a PSEMC Supplier Proposal
Adequacy Checklist (sent with the RFP) for all proposals where the supplierclaims its parts are commercial
bull An example of the Supplier Proposal Adequacy Checklist for commercialitems is attached reference form DI-SUP-310F01
40PSEMC Policy
Pacific Scientific EMC ndash Commercial Item Status
If claiming an exemption offeror must provide the appropriate information to determine commerciality Refusal to provide the required information can result in an assist audit being requested from the Defense Contract Audit Agency or other cognizant Government Audit Agencies and or a determination that goods andor services offered do not constitute a ldquocommercial itemrdquo
Offeror hereby represents that to the best of its knowledge information and belief goods andor services offered constitute a ldquocommercial itemrdquo as defined by FAR 2101 because it constitutes
A Commercial Item or Component Justification (required for any claim)
Key Inquiries and Summary of your Supporting Information
What is the relevant ldquotyperdquo of item enspenspenspenspensp
What are the types of items uses by the general public or by non-governmental entities for other than governmental purposes enspenspenspenspensp
What indicates the type of itemrsquos use described above is customary enspenspenspenspensp
Has the offered item itself (as opposed to the type of item) been sold or offered for sale
|_| Yes|_| NO
Are the offered itemrsquos sales (or offers to sale) to the general public
|_| Yes|_| NO
Please provide data regarding sales leases or licenses of this item and identification of the non-government use entities
ValueNon-Government Use Entities
(date)(date)
In addition as an appendix to this commercial item determination provide supporting documentation in the form of
1that have not materialized into sales
2that have not materialized into leases
3that have not materialized into licenses
1 Verification of sales history to source documents
2 Identification of customarily offered discounts for the item
3 Verification of the item to an existing catalog or price list and
4 Verification of historical data for an item previously not determined commercial that the offeror is now trying to qualify as a commercial item
(check box(es) as appropriate)
|_| I Unmodified Commercial Items or Components (Complete Section A)
Any item other than real property that is a of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes and
(i) Has been sold leased or licensed to the general public or
(ii) Has been offered for sale lease or license to the general public
|_| II Item Evolved from Commercial Items or Components
Any item that evolved from an item described in Part I (which is required if claiming this exemption) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace but will be available in the commercial marketplace in time to satisfy the delivery requirements under a United States Government solicitation
If claiming the item Evolved from Commercial Items or Components exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use Part I)
|_| Yes|_| NO
If yes describe the relationship of the modifications to the Federal Government requirement enspenspenspenspensp
What are the advances in technology or performance between the offered item and the commercial item on which it is based enspenspenspenspensp
What is your support for such advances enspenspenspenspensp
What is your support for availability of the item in time to meet requirements Is the claim availability reasonable enspenspenspenspensp
Please provide data regarding
(a) Currently pending offers including
(b) Planned Offers Including
In all instances scheduled for delivery no later than the delivery requirements under the
(c) Data in the format of Part I for completed sales of the item from which the ldquocommercial itemrdquo evolved
|_| III Modified Commercial Items or Components
Any item that would satisfy a criterion expressed in Part I or II hereof but for -
|_| (i) Modifications of a type customarily available in the commercial marketplace
If claiming Modified Commercial Item or Components that are of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use part I or parts II and II)
|_| Yes|_| NO
What are the modifications that would be made to the commercial item enspenspenspenspensp
Are the modifications of a type customarily available in the commercial marketplace
|_| Yes|_| NO
Summarize your support for customary availability of the modification in the commercial marketplace enspenspenspenspensp
|_| (ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet federal government requirements ldquoMinor modificationsrdquo means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component or change the purpose of a process Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product Dollar values and percentages may be used as guideposts but are not conclusive evidence that a modification is minor
If claiming Modified Commercial Items or Components that are not of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Are the modifications made to satisfy Federal Government requirements
|_| Yes|_| NO
Do the modifications alter the nongovernmental function or essential physical characteristics of the item
|_| Yes|_| NO
If yes what are the alterations enspenspenspenspensp
Does the modified item retain a predominance of nongovernmental functions or physical characteristics
|_| Yes|_| NO
Summarize your support describing the value of the modifications in comparison to the value of the final product enspenspenspenspensp
Summarize your support for the magnitude or size of the modifications in relation to the magnitude or size of the final product enspenspenspenspensp
Are there any other factors which would allow you to conclude that the modifications are minor
|_| Yes|_| NO
If yes what are they enspenspenspenspensp
Based on the above does the modification qualify as a minor modification
|_| Yes|_| NO
Please provide data regarding the minor modification and the total price to PSEMC of Minor Modifications
Price to PSEMC of all Minor Modifications at quantities proposed in this pricing action enspenspenspenspensp
Minor modifications that exceed the thresholds in FAR 15403-1(c)(3)(iii)(B) are subject to the Certified Cost or Pricing Data requirements and must be proposed as described by FAR 15408 Table 152
|_| IV Commercial Items Support Services
Installation services maintenance services repair services training services and other services if -
(i) Such services are procured for support of an item referred to in Parts I II III or IV hereof regardless of whether such services are provided by the same source or at the same time as the item and
(ii) The source of such services provided similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government
If claiming Commercial Item Support Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services procured for the support of a commercial item which qualifies under a preceding part
|_| Yes|_| NO
Describe the nature of the services and how they support the commercial item enspenspenspenspensp
Are the services provided at the same time to the general public and the Federal Government
|_| Yes|_| NO
Are the terms and conditions for the services similar to those offered to the general public
|_| Yes|_| NO
Describe differences enspenspenspenspensp
Please provide data regarding
a Open and completed contracts including
b Pending offers including
|_| V Any Combination of Items
Meeting the requirements of Parts I II III or IV hereof that are of a type customarily combined and sold in combination to the general public
If you have checked the above box and are claiming the Any Combination of Items exemption please attach hereto information as requ3sted for Parts I II III and IV
|_| VI Other Commercial Services
Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions For purposes of these services -
(i) Catalog price means a price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor is either published or otherwise available for inspection by customers and states prices at which sales are currently or were last made to a significant number of buyers constituting the general public and
(ii) Market prices means current prices that are established in the course of ordinary trade between buyers and sellers free to bargain and that can be substantiated through competition or from source independent of the offerors
If claiming the Other Commercial Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services sold competitively in substantial quantities in the commercial marketplace
|_| Yes|_| NO
If no are the services of a type sold in substantial quantities in the commercial marketplace
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If yes what is the ldquotyperdquo of service enspenspenspenspensp
Summarize your support for same enspenspenspenspensp
Are the prices quoted for specific tasks performed or specific outcomes to be achieved
|_| Yes|_| NO
Are the services offered consistent with your standard terms and conditions
|_| Yes|_| NO
Are the services of a type sold at catalog or market prices
|_| Yes|_| NO
If sold at catalog price is the price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor
|_| Yes|_| NO
If sold at catalog price is the catalog or its equivalent either published or otherwise available for inspection by customers
|_| Yes|_| NO
Summarize your support for same (include a copy of the catalog or provide location) enspenspenspenspensp
If sold at a catalog price are the listed prices those at which sales are currently or were last made to a significant number of buyers in the general public
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If sold at a market price are the prices established in the course of ordinary trade between buyers and sellers free to bargain
|_| Yes|_| NO
Summarize you support for same enspenspenspenspensp
If sold at market price can the price be substantiated through competition or from sources independent of the offeror
|_| Yes|_| NO
Summarize your support for same
Please provide data regarding
(a) Open and completed contracts including
(b) Pending Offers including
|_| VII Any Item Combination of Items or Service
Referred to in Parts I through VI hereof notwithstanding the fact that the item combination of items or service is transferred between or among separate divisions subsidiaries or affiliates of the Offeror
If you have checked the above box and are claiming the ldquoAny item combination of items or Servicerdquo exemption please provide data regarding
|_| VIII Non-developmental Items
A non-developmental item as defined in FAR 2101 which has been developed exclusively at private expense and sold in substantial quantities on a competitive basis to multiple State and local governments
If claiming the Non-developmental Items exemption then the following must be provided
Key Inquiries and Summary of Supplierrsquos Supporting Information
Was the item previously developed
|_| Yes|_| NO
Was the item used exclusively for governmental purposes by a Federal agency a State or local government or a foreign government with which the United States has mutual defense cooperation agreement
|_| Yes|_| NO
If the item is to be modified do the modifications comply with Part III guidance on modifications
|_| Yes|_| NO
If the item is not yet in use does it otherwise qualify as a non-developmental item
|_| Yes|_| NO
Was the item developed exclusively at private expense
|_| Yes|_| NO
Is the item sold in substantial quantities on a competitive basis to multiple State and local governments
|_| Yes|_| NO
Please provide data regarding
|_| IX General Inquiries
Does the item qualify as a combination of items under Parts I II III and IV above
|_| Yes|_| NO
Has the item or services previously been determined to be commercial
|_| Yes|_| NO
If so by whom enspenspenspenspensp
|_| X Other Information
Is there other information of which you are aware that would supplement the information provided and would help substantiate whether the item or service is commercial
|_| Yes|_| NO
Have you provided such information
|_| Yes|_| NO
List such information enspenspenspenspensp
|_| XI Supplier Determination
Offeror hereby represents that the foregoing information is accurate and complete and that to the best of its knowledge information and belief goods and or services offered currently constitute ldquoa commercial itemrdquo as defined by FAR 2101
For PSEMC Internal Use Only
XII Supplier Determination
Supplier has claimed that the item component or service identified above is a commercial item under the definition at FAR 2101 I have reviewed and summarized the supplierrsquos support for that claim in the appropriate sections above Based on such review of such support information and any other information identified elsewhere herein I conclude that the supplier
|_| HAS |_| HAS NOT Supported its claim of commercial item status under the definition at FAR 2101
If the supplier HAS NOT supported its claim list reasons enspenspenspenspensp
Describe action plat to resolve enspenspenspenspensp
Comments enspenspenspenspensp
image1jpeg
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull This section of Table 15-2 describes the format an estimating approach we
are required to use when developing a proposal to modify an existingcontract In addition to the cost element breakdowns required as describedin the previous slides when there is a modification or change proposal FARalso requires the following table to be inserted into your proposal
41
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals
42FAR 15408 Table 15-2 III B
B Change Orders modifications and claims
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
Column 2 includes the cost of all work deleted This
includes cost of work deleted already performed (amount in Column 3) and
cost of work deleted not yet performed (Column 4)
Column 3 includes the cost of deleted work already
performed This amount will not be included in the credit (delete) adjustment amount (eg we will not give back costs already
incurred)
Column 4 includes cost for deleted work not yet performed ndash must be priced using current
estimates (but the current estimate may be the same as
the original estimate) ndash it is develed similar to a normal ldquoaddrdquo proposal with a few
exceptions
Column 5 includes the cost of the
new work and is developed as we do any
other proposal
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull Detail for columns listed on previous page
1 Enter appropriate cost element2 Enter current estimates of what it would take to complete the deleted work that
has not yet been performed3 Enter current cost of deleted work already performed This should be based on
actuals and copies to support these actuals should be included in the proposal4 Enter the net cost to be deleted (Column 2 minus Column 3)5 Enter your estimate for cost of work added by the change6 Enter the net cost of change (Column 5 minus Column 4)7 Identify where in your proposal the supporting documentation and basis of
estimate can be found for each of these sections
43FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull For purposes of determining if a proposal an cost or pricing data are
required from individual suppliers on a change proposal the absolute valueof the ldquodeleterdquo amount plus the ldquoaddrdquo amount is computed for each supplierthat exceeds the cost and pricing threshold (TINA)
bull Remember from FAR 15403-4(b) ndash if the absolute value for an individualsupplier exceeds the cost and pricing threshold (TINA) and the supplier iseither an actual supplier (will continue to provide partsservices on thiscontract) the supplier is required to provide a proposal and cost or pricingdata in support of the change proposal
bull Deleted amount is our current estimate (generally no the original contractvalue unless it is our current estimate)
44FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull If a supplierrsquos quantities are changing due to a modification the net delete
or add amount is used to determine if the supplier exceeds the cost andpricing threshold (TINA)
bull The estimator should not consider the old quantity as the delete and thenew quantity as the add (eg in computing absolute value) whendetermining if the supplier exceeds the threshold in cases where quantitiesare changing
bull The development of the appropriate deletion is not simply the estimatedcost of the deleted quantity ndash this will overstate the credit
45FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals Cost of WorkDeleted for a Partial Deleted Quantitybull In cases where part of a material quantity is being deleted (eg original
contract requires 100 widgets and the contract is modified to delete 30 ofthem) one method of estimating the amount of the delete is
1 Develop a current estimate of the extended cost for the item(s) given the originalquantity
2 Develop a current estimate of the extended cost for the items at the lower(remaining) quantity
3 The delta between these two values represents the amount of the delete
bull The same method can be used if the contract is modified to increase aquantity for a part
46FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklist
47
bull The Supplier Proposal Adequacy Checklist is accessed from the externalPSEMC supplier website
bull Additional supplier proposal guidance and resources are available(information templates and tools to assist in building a FAR compliantproposal
bull Supplier proposal guidance
bull Supplier Proposal Adequacy Guidelines
bull PSEMC document templates
bull Supplier proposal adequacy checklistbull Contract pricing proposal cover sheet
httpspsemccomsuppliers
- Strategic Affordability Analysis
- Purpose of this Guideline
- Table of Contents
- Table of Contents
- Supplier Proposal Adequacy Checklist
- Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
- Cover Sheet
- Cover Sheet Example ndash Reference Form DI-SUP-105F02
- Index
- Index Example
- Cost Element Breakdown by Line Item
- Cost Element Breakdown by Line Item Example
- Summary Cost Element Breakdown
- Summary Cost Element Breakdown - Example
- Summary Cost Element Breakdown - Example
- Material
- Material
- Individual Bills of Material Example
- Consolidated Bill of Material Example
- Consolidated Bill of Material
- Material
- Material
- Material
- Labor
- Labor
- Labor
- Labor Hours Example
- Labor Hours Example ndash Actual Production History
- Labor Hours Examples ndash Basis of Estimate
- Other Direct Costs (ODC)
- Nonrecurring Expenses (NRE)
- NRE
- Rates
- Rates
- Summary
- Summary
- Other Types of Proposals
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals Cost of WorkDeleted for a Partial Deleted Quantity
- Supplier Proposal Adequacy Checklist
-
| Buyer (Type or Print Name) | Date |
| Offeror | |||
| By | |||
| Title | |||
| Date |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp | ||
| (iii) Total number of customers involved in such sales | enspenspenspenspensp |
| (a) Transfer price(s) of such goods | $ enspenspenspenspensp | ||
| (b) Total units of such goods and or | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| Unmodified Items Identified in Part 1 | Modified Items Proposed to PSMEC | Unit Value of Modification | |||||||
| Unmodified Item | Unmodified Price | Modified Item | Modified Price to PSEMC | ||||||
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| To the general public in the time-frame beginning | enspenspenspenspensp | enspenspenspenspensp | and ending | enspenspenspenspensp |
| (a) Sales | |||||
| (b) Leases | |||||
| (c) Licenses | |||||
| (d) Offers to Sell 1 | |||||
| (e) Offers to Lease 2 | |||||
| (f) Offers to License 3 |
| Part Number | |||
| Description | |||
| Offeror |
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Example ndash Actual Production History
28
ProposedDuration - Months 7 9 24 12 Qty 30 39 110 50 End Date 11152006 982007 912009
Direct Labor Total Hrs HrsUnit Total Hours HrsUnit Total Hrs HrsUnit Total Hrs HrsUnitAssembly 1836 6120 1675 4295 4338 3944 1900 3800 Machinist 169 564 154 396 400 363 175 350 QA 368 1238 336 862 870 791 381 762 Engineer 1 115 383 105 269 272 247 119 238
Production Support Total Hrs Total Hrs Total Hrs Total Hrs HrsUnitMFG Supervisor 268 345 920 460 920 Eng Supervisor 107 138 184 184 368 QA Supervisor 268 345 920 460 920 Production Mgr 268 345 920 460 920
HrsUnit 8279
Acutal Production History - Part ABC
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Examples ndash Basis of Estimatebull Basis of estimate for direct labor
bull Proposed direct labor hours were developed by apply a 90 percent learningcurve to the production labor history for part BBC You need to provide abasis for the 90 percent curve
bull Basis of estimate for the manufacturing supervisorbull The manufacturing supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 920 hours were used over a 24-month periodSince the current proposal has been estimated to cover 12 months 460hours were applied to the manufacturing supervisor (920 divided by 2)
bull Basis of estimate for engineering supervisorbull The engineering supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 184 hours were necessary to complete the taskThis task is similar and so we estimate 184 hours
29
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Direct Costs (ODC)bull List other expenses not otherwise included under material and labor (eg
travel freight) and provide basis for pricing
bull For example the basis for travel would include the location number of tripsnumber of people attending and the estimated expenses for the travel
30FAR 15408 Table 15-2 II D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Nonrecurring Expenses (NRE)bull NRE refers to one-time costs that you would not normally see from proposal
to proposal
bull Examples of NRE are as follows
bull Special Toolingbull New Equipmentbull Equipment Refurbishmentbull Hours and materials associated with increase throughput capacitybull Hours and materials to research develop design and test new processesbull One-Time review events
31FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
NREbull As mentioned earlier NRE charges must be broken out by cost element
This means the material and labor components associated with the NREare clearly broken out
bull Material ndash any material associated with NRE should be supported by supplierquotes or purchase orders
bull Labor ndash labor hours associated with NRE should have basis of estimates(BOE) that are broken down by labor category and include detaileddescriptions of the tasks that will be performed
32FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Rates include direct labor overhead general and administrative expenses
(GampA) and cost of money (COM)
bull PSEMC has the capability to perform rate audits on suppliers in lieu ofhaving the DCAA do this
bull If you allow PSEMC to perform this rate audit you need to provide thefollowing information
bull Explanation as to how the rates were calculatedbull Detailed documentation (financial statements labor pools listing of unallowable
expenses etc) that support the rate calculationsbull If the detailed documentation is based on budgetary numbers you will also need
to provide three years of your most current actuals to support you budgetarynumbers
bull If budgetary numbers differ significantly from the most recent actuals providedetailed explanations for these differences
33FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Facilities Capital COM
bull When you elect to claim COM submit a completed form CASB-CFM (FacilitiesCapital Cost of Money Factors Computation) in accordance with FAR 31205-10Also complete DD Form 1861 and include a copy in your proposal submissionBoth forms can be found on-line at various locations
34FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull In summary all noncompetitive noncommercial proposals valued at more
than the cost and pricing threshold (TINA) are required to include thefollowing information
35
Required Items Page FAR Reference
Supplier Proposal Adequacy Checklist Pg 5-6 PSEMC Policy
Cover Sheet - SF1411 or equivalent Pg 7-8 FAR 15408 Table 15-2 I A
Index Pg 9-10 FAR 15408 Table 15-2 I B
Cost Element Breakdown Pg 11-12 FAR 15408 Table 15-2 I D
Summary Cost Element Breakdown Pg 13-15 FAR 15408 Table 15-2 I E
Material (Including Consolidated BOM) Pg 16-23 FAR 15408 Table 15-2 II A
Labor Pg 24-29 FAR 15408 Table 15-2 II B
ODC Pg 30 FAR 15408 Table 15-2 II D
NRE Pg 31-32 FAR 15408 Table 15-2 II
Rates Pg 33-34 FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull Sufficient rationale and supporting documentation to support each of the
proposed cost elements is also required
bull Obtaining adequate supplier proposals is always on the critical path sincePSEMC cannot submit its proposal to the government until it has receivedadequate proposals from its subcontractors Therefore it is critical thatadequate supplier proposals are obtained as quickly as possible
36
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Types of Proposalsbull Commercial item proposals
bull Change proposals
bull The following slides are only applicable in certain situations
37
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you or one of your suppliers is providing a commercial part cost or pricing
data and a cost analysis is not required However you must demonstrate that the part is commercial and that the price is reasonable
bull A commercial item is any item other than real property that is a type customarily used by the general public or by a nongovernment entity
bull Has also been sold leased or licensed to the general public or has been offered for sale lease or license to the general public
bull A final commercial determination is made by the government contracting officer If the items is deemed to not be commercial the supplier is required to submit a complete proposal that includes cost and pricing data
38FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you claim one or more of your parts are commercial you need to support
your position by providing the following information
bull Copies of applicable portions of a company catalogue or website address that shows the item with a description and unit price
bull Show that these items can be purchased by the general public or nongovernmentalagency
bull If a website or catalogue is not available copies of invoices showing the sale of these items to nongovernment entities is sufficient
39FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull PSEMC policy requires suppliers to complete a PSEMC Supplier Proposal
Adequacy Checklist (sent with the RFP) for all proposals where the supplierclaims its parts are commercial
bull An example of the Supplier Proposal Adequacy Checklist for commercialitems is attached reference form DI-SUP-310F01
40PSEMC Policy
Pacific Scientific EMC ndash Commercial Item Status
If claiming an exemption offeror must provide the appropriate information to determine commerciality Refusal to provide the required information can result in an assist audit being requested from the Defense Contract Audit Agency or other cognizant Government Audit Agencies and or a determination that goods andor services offered do not constitute a ldquocommercial itemrdquo
Offeror hereby represents that to the best of its knowledge information and belief goods andor services offered constitute a ldquocommercial itemrdquo as defined by FAR 2101 because it constitutes
A Commercial Item or Component Justification (required for any claim)
Key Inquiries and Summary of your Supporting Information
What is the relevant ldquotyperdquo of item enspenspenspenspensp
What are the types of items uses by the general public or by non-governmental entities for other than governmental purposes enspenspenspenspensp
What indicates the type of itemrsquos use described above is customary enspenspenspenspensp
Has the offered item itself (as opposed to the type of item) been sold or offered for sale
|_| Yes|_| NO
Are the offered itemrsquos sales (or offers to sale) to the general public
|_| Yes|_| NO
Please provide data regarding sales leases or licenses of this item and identification of the non-government use entities
ValueNon-Government Use Entities
(date)(date)
In addition as an appendix to this commercial item determination provide supporting documentation in the form of
1that have not materialized into sales
2that have not materialized into leases
3that have not materialized into licenses
1 Verification of sales history to source documents
2 Identification of customarily offered discounts for the item
3 Verification of the item to an existing catalog or price list and
4 Verification of historical data for an item previously not determined commercial that the offeror is now trying to qualify as a commercial item
(check box(es) as appropriate)
|_| I Unmodified Commercial Items or Components (Complete Section A)
Any item other than real property that is a of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes and
(i) Has been sold leased or licensed to the general public or
(ii) Has been offered for sale lease or license to the general public
|_| II Item Evolved from Commercial Items or Components
Any item that evolved from an item described in Part I (which is required if claiming this exemption) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace but will be available in the commercial marketplace in time to satisfy the delivery requirements under a United States Government solicitation
If claiming the item Evolved from Commercial Items or Components exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use Part I)
|_| Yes|_| NO
If yes describe the relationship of the modifications to the Federal Government requirement enspenspenspenspensp
What are the advances in technology or performance between the offered item and the commercial item on which it is based enspenspenspenspensp
What is your support for such advances enspenspenspenspensp
What is your support for availability of the item in time to meet requirements Is the claim availability reasonable enspenspenspenspensp
Please provide data regarding
(a) Currently pending offers including
(b) Planned Offers Including
In all instances scheduled for delivery no later than the delivery requirements under the
(c) Data in the format of Part I for completed sales of the item from which the ldquocommercial itemrdquo evolved
|_| III Modified Commercial Items or Components
Any item that would satisfy a criterion expressed in Part I or II hereof but for -
|_| (i) Modifications of a type customarily available in the commercial marketplace
If claiming Modified Commercial Item or Components that are of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use part I or parts II and II)
|_| Yes|_| NO
What are the modifications that would be made to the commercial item enspenspenspenspensp
Are the modifications of a type customarily available in the commercial marketplace
|_| Yes|_| NO
Summarize your support for customary availability of the modification in the commercial marketplace enspenspenspenspensp
|_| (ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet federal government requirements ldquoMinor modificationsrdquo means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component or change the purpose of a process Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product Dollar values and percentages may be used as guideposts but are not conclusive evidence that a modification is minor
If claiming Modified Commercial Items or Components that are not of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Are the modifications made to satisfy Federal Government requirements
|_| Yes|_| NO
Do the modifications alter the nongovernmental function or essential physical characteristics of the item
|_| Yes|_| NO
If yes what are the alterations enspenspenspenspensp
Does the modified item retain a predominance of nongovernmental functions or physical characteristics
|_| Yes|_| NO
Summarize your support describing the value of the modifications in comparison to the value of the final product enspenspenspenspensp
Summarize your support for the magnitude or size of the modifications in relation to the magnitude or size of the final product enspenspenspenspensp
Are there any other factors which would allow you to conclude that the modifications are minor
|_| Yes|_| NO
If yes what are they enspenspenspenspensp
Based on the above does the modification qualify as a minor modification
|_| Yes|_| NO
Please provide data regarding the minor modification and the total price to PSEMC of Minor Modifications
Price to PSEMC of all Minor Modifications at quantities proposed in this pricing action enspenspenspenspensp
Minor modifications that exceed the thresholds in FAR 15403-1(c)(3)(iii)(B) are subject to the Certified Cost or Pricing Data requirements and must be proposed as described by FAR 15408 Table 152
|_| IV Commercial Items Support Services
Installation services maintenance services repair services training services and other services if -
(i) Such services are procured for support of an item referred to in Parts I II III or IV hereof regardless of whether such services are provided by the same source or at the same time as the item and
(ii) The source of such services provided similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government
If claiming Commercial Item Support Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services procured for the support of a commercial item which qualifies under a preceding part
|_| Yes|_| NO
Describe the nature of the services and how they support the commercial item enspenspenspenspensp
Are the services provided at the same time to the general public and the Federal Government
|_| Yes|_| NO
Are the terms and conditions for the services similar to those offered to the general public
|_| Yes|_| NO
Describe differences enspenspenspenspensp
Please provide data regarding
a Open and completed contracts including
b Pending offers including
|_| V Any Combination of Items
Meeting the requirements of Parts I II III or IV hereof that are of a type customarily combined and sold in combination to the general public
If you have checked the above box and are claiming the Any Combination of Items exemption please attach hereto information as requ3sted for Parts I II III and IV
|_| VI Other Commercial Services
Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions For purposes of these services -
(i) Catalog price means a price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor is either published or otherwise available for inspection by customers and states prices at which sales are currently or were last made to a significant number of buyers constituting the general public and
(ii) Market prices means current prices that are established in the course of ordinary trade between buyers and sellers free to bargain and that can be substantiated through competition or from source independent of the offerors
If claiming the Other Commercial Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services sold competitively in substantial quantities in the commercial marketplace
|_| Yes|_| NO
If no are the services of a type sold in substantial quantities in the commercial marketplace
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If yes what is the ldquotyperdquo of service enspenspenspenspensp
Summarize your support for same enspenspenspenspensp
Are the prices quoted for specific tasks performed or specific outcomes to be achieved
|_| Yes|_| NO
Are the services offered consistent with your standard terms and conditions
|_| Yes|_| NO
Are the services of a type sold at catalog or market prices
|_| Yes|_| NO
If sold at catalog price is the price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor
|_| Yes|_| NO
If sold at catalog price is the catalog or its equivalent either published or otherwise available for inspection by customers
|_| Yes|_| NO
Summarize your support for same (include a copy of the catalog or provide location) enspenspenspenspensp
If sold at a catalog price are the listed prices those at which sales are currently or were last made to a significant number of buyers in the general public
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If sold at a market price are the prices established in the course of ordinary trade between buyers and sellers free to bargain
|_| Yes|_| NO
Summarize you support for same enspenspenspenspensp
If sold at market price can the price be substantiated through competition or from sources independent of the offeror
|_| Yes|_| NO
Summarize your support for same
Please provide data regarding
(a) Open and completed contracts including
(b) Pending Offers including
|_| VII Any Item Combination of Items or Service
Referred to in Parts I through VI hereof notwithstanding the fact that the item combination of items or service is transferred between or among separate divisions subsidiaries or affiliates of the Offeror
If you have checked the above box and are claiming the ldquoAny item combination of items or Servicerdquo exemption please provide data regarding
|_| VIII Non-developmental Items
A non-developmental item as defined in FAR 2101 which has been developed exclusively at private expense and sold in substantial quantities on a competitive basis to multiple State and local governments
If claiming the Non-developmental Items exemption then the following must be provided
Key Inquiries and Summary of Supplierrsquos Supporting Information
Was the item previously developed
|_| Yes|_| NO
Was the item used exclusively for governmental purposes by a Federal agency a State or local government or a foreign government with which the United States has mutual defense cooperation agreement
|_| Yes|_| NO
If the item is to be modified do the modifications comply with Part III guidance on modifications
|_| Yes|_| NO
If the item is not yet in use does it otherwise qualify as a non-developmental item
|_| Yes|_| NO
Was the item developed exclusively at private expense
|_| Yes|_| NO
Is the item sold in substantial quantities on a competitive basis to multiple State and local governments
|_| Yes|_| NO
Please provide data regarding
|_| IX General Inquiries
Does the item qualify as a combination of items under Parts I II III and IV above
|_| Yes|_| NO
Has the item or services previously been determined to be commercial
|_| Yes|_| NO
If so by whom enspenspenspenspensp
|_| X Other Information
Is there other information of which you are aware that would supplement the information provided and would help substantiate whether the item or service is commercial
|_| Yes|_| NO
Have you provided such information
|_| Yes|_| NO
List such information enspenspenspenspensp
|_| XI Supplier Determination
Offeror hereby represents that the foregoing information is accurate and complete and that to the best of its knowledge information and belief goods and or services offered currently constitute ldquoa commercial itemrdquo as defined by FAR 2101
For PSEMC Internal Use Only
XII Supplier Determination
Supplier has claimed that the item component or service identified above is a commercial item under the definition at FAR 2101 I have reviewed and summarized the supplierrsquos support for that claim in the appropriate sections above Based on such review of such support information and any other information identified elsewhere herein I conclude that the supplier
|_| HAS |_| HAS NOT Supported its claim of commercial item status under the definition at FAR 2101
If the supplier HAS NOT supported its claim list reasons enspenspenspenspensp
Describe action plat to resolve enspenspenspenspensp
Comments enspenspenspenspensp
image1jpeg
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull This section of Table 15-2 describes the format an estimating approach we
are required to use when developing a proposal to modify an existingcontract In addition to the cost element breakdowns required as describedin the previous slides when there is a modification or change proposal FARalso requires the following table to be inserted into your proposal
41
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals
42FAR 15408 Table 15-2 III B
B Change Orders modifications and claims
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
Column 2 includes the cost of all work deleted This
includes cost of work deleted already performed (amount in Column 3) and
cost of work deleted not yet performed (Column 4)
Column 3 includes the cost of deleted work already
performed This amount will not be included in the credit (delete) adjustment amount (eg we will not give back costs already
incurred)
Column 4 includes cost for deleted work not yet performed ndash must be priced using current
estimates (but the current estimate may be the same as
the original estimate) ndash it is develed similar to a normal ldquoaddrdquo proposal with a few
exceptions
Column 5 includes the cost of the
new work and is developed as we do any
other proposal
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull Detail for columns listed on previous page
1 Enter appropriate cost element2 Enter current estimates of what it would take to complete the deleted work that
has not yet been performed3 Enter current cost of deleted work already performed This should be based on
actuals and copies to support these actuals should be included in the proposal4 Enter the net cost to be deleted (Column 2 minus Column 3)5 Enter your estimate for cost of work added by the change6 Enter the net cost of change (Column 5 minus Column 4)7 Identify where in your proposal the supporting documentation and basis of
estimate can be found for each of these sections
43FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull For purposes of determining if a proposal an cost or pricing data are
required from individual suppliers on a change proposal the absolute valueof the ldquodeleterdquo amount plus the ldquoaddrdquo amount is computed for each supplierthat exceeds the cost and pricing threshold (TINA)
bull Remember from FAR 15403-4(b) ndash if the absolute value for an individualsupplier exceeds the cost and pricing threshold (TINA) and the supplier iseither an actual supplier (will continue to provide partsservices on thiscontract) the supplier is required to provide a proposal and cost or pricingdata in support of the change proposal
bull Deleted amount is our current estimate (generally no the original contractvalue unless it is our current estimate)
44FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull If a supplierrsquos quantities are changing due to a modification the net delete
or add amount is used to determine if the supplier exceeds the cost andpricing threshold (TINA)
bull The estimator should not consider the old quantity as the delete and thenew quantity as the add (eg in computing absolute value) whendetermining if the supplier exceeds the threshold in cases where quantitiesare changing
bull The development of the appropriate deletion is not simply the estimatedcost of the deleted quantity ndash this will overstate the credit
45FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals Cost of WorkDeleted for a Partial Deleted Quantitybull In cases where part of a material quantity is being deleted (eg original
contract requires 100 widgets and the contract is modified to delete 30 ofthem) one method of estimating the amount of the delete is
1 Develop a current estimate of the extended cost for the item(s) given the originalquantity
2 Develop a current estimate of the extended cost for the items at the lower(remaining) quantity
3 The delta between these two values represents the amount of the delete
bull The same method can be used if the contract is modified to increase aquantity for a part
46FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklist
47
bull The Supplier Proposal Adequacy Checklist is accessed from the externalPSEMC supplier website
bull Additional supplier proposal guidance and resources are available(information templates and tools to assist in building a FAR compliantproposal
bull Supplier proposal guidance
bull Supplier Proposal Adequacy Guidelines
bull PSEMC document templates
bull Supplier proposal adequacy checklistbull Contract pricing proposal cover sheet
httpspsemccomsuppliers
- Strategic Affordability Analysis
- Purpose of this Guideline
- Table of Contents
- Table of Contents
- Supplier Proposal Adequacy Checklist
- Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
- Cover Sheet
- Cover Sheet Example ndash Reference Form DI-SUP-105F02
- Index
- Index Example
- Cost Element Breakdown by Line Item
- Cost Element Breakdown by Line Item Example
- Summary Cost Element Breakdown
- Summary Cost Element Breakdown - Example
- Summary Cost Element Breakdown - Example
- Material
- Material
- Individual Bills of Material Example
- Consolidated Bill of Material Example
- Consolidated Bill of Material
- Material
- Material
- Material
- Labor
- Labor
- Labor
- Labor Hours Example
- Labor Hours Example ndash Actual Production History
- Labor Hours Examples ndash Basis of Estimate
- Other Direct Costs (ODC)
- Nonrecurring Expenses (NRE)
- NRE
- Rates
- Rates
- Summary
- Summary
- Other Types of Proposals
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals Cost of WorkDeleted for a Partial Deleted Quantity
- Supplier Proposal Adequacy Checklist
-
| Buyer (Type or Print Name) | Date |
| Offeror | |||
| By | |||
| Title | |||
| Date |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp | ||
| (iii) Total number of customers involved in such sales | enspenspenspenspensp |
| (a) Transfer price(s) of such goods | $ enspenspenspenspensp | ||
| (b) Total units of such goods and or | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| Unmodified Items Identified in Part 1 | Modified Items Proposed to PSMEC | Unit Value of Modification | |||||||
| Unmodified Item | Unmodified Price | Modified Item | Modified Price to PSEMC | ||||||
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| To the general public in the time-frame beginning | enspenspenspenspensp | enspenspenspenspensp | and ending | enspenspenspenspensp |
| (a) Sales | |||||
| (b) Leases | |||||
| (c) Licenses | |||||
| (d) Offers to Sell 1 | |||||
| (e) Offers to Lease 2 | |||||
| (f) Offers to License 3 |
| Part Number | |||
| Description | |||
| Offeror |
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Labor Hours Examples ndash Basis of Estimatebull Basis of estimate for direct labor
bull Proposed direct labor hours were developed by apply a 90 percent learningcurve to the production labor history for part BBC You need to provide abasis for the 90 percent curve
bull Basis of estimate for the manufacturing supervisorbull The manufacturing supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 920 hours were used over a 24-month periodSince the current proposal has been estimated to cover 12 months 460hours were applied to the manufacturing supervisor (920 divided by 2)
bull Basis of estimate for engineering supervisorbull The engineering supervisorrsquos time is based on the latest production history
for Part ABC The latest production history for Part ABC (shown on theprevious page) shows that 184 hours were necessary to complete the taskThis task is similar and so we estimate 184 hours
29
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Direct Costs (ODC)bull List other expenses not otherwise included under material and labor (eg
travel freight) and provide basis for pricing
bull For example the basis for travel would include the location number of tripsnumber of people attending and the estimated expenses for the travel
30FAR 15408 Table 15-2 II D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Nonrecurring Expenses (NRE)bull NRE refers to one-time costs that you would not normally see from proposal
to proposal
bull Examples of NRE are as follows
bull Special Toolingbull New Equipmentbull Equipment Refurbishmentbull Hours and materials associated with increase throughput capacitybull Hours and materials to research develop design and test new processesbull One-Time review events
31FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
NREbull As mentioned earlier NRE charges must be broken out by cost element
This means the material and labor components associated with the NREare clearly broken out
bull Material ndash any material associated with NRE should be supported by supplierquotes or purchase orders
bull Labor ndash labor hours associated with NRE should have basis of estimates(BOE) that are broken down by labor category and include detaileddescriptions of the tasks that will be performed
32FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Rates include direct labor overhead general and administrative expenses
(GampA) and cost of money (COM)
bull PSEMC has the capability to perform rate audits on suppliers in lieu ofhaving the DCAA do this
bull If you allow PSEMC to perform this rate audit you need to provide thefollowing information
bull Explanation as to how the rates were calculatedbull Detailed documentation (financial statements labor pools listing of unallowable
expenses etc) that support the rate calculationsbull If the detailed documentation is based on budgetary numbers you will also need
to provide three years of your most current actuals to support you budgetarynumbers
bull If budgetary numbers differ significantly from the most recent actuals providedetailed explanations for these differences
33FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Facilities Capital COM
bull When you elect to claim COM submit a completed form CASB-CFM (FacilitiesCapital Cost of Money Factors Computation) in accordance with FAR 31205-10Also complete DD Form 1861 and include a copy in your proposal submissionBoth forms can be found on-line at various locations
34FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull In summary all noncompetitive noncommercial proposals valued at more
than the cost and pricing threshold (TINA) are required to include thefollowing information
35
Required Items Page FAR Reference
Supplier Proposal Adequacy Checklist Pg 5-6 PSEMC Policy
Cover Sheet - SF1411 or equivalent Pg 7-8 FAR 15408 Table 15-2 I A
Index Pg 9-10 FAR 15408 Table 15-2 I B
Cost Element Breakdown Pg 11-12 FAR 15408 Table 15-2 I D
Summary Cost Element Breakdown Pg 13-15 FAR 15408 Table 15-2 I E
Material (Including Consolidated BOM) Pg 16-23 FAR 15408 Table 15-2 II A
Labor Pg 24-29 FAR 15408 Table 15-2 II B
ODC Pg 30 FAR 15408 Table 15-2 II D
NRE Pg 31-32 FAR 15408 Table 15-2 II
Rates Pg 33-34 FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull Sufficient rationale and supporting documentation to support each of the
proposed cost elements is also required
bull Obtaining adequate supplier proposals is always on the critical path sincePSEMC cannot submit its proposal to the government until it has receivedadequate proposals from its subcontractors Therefore it is critical thatadequate supplier proposals are obtained as quickly as possible
36
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Types of Proposalsbull Commercial item proposals
bull Change proposals
bull The following slides are only applicable in certain situations
37
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you or one of your suppliers is providing a commercial part cost or pricing
data and a cost analysis is not required However you must demonstrate that the part is commercial and that the price is reasonable
bull A commercial item is any item other than real property that is a type customarily used by the general public or by a nongovernment entity
bull Has also been sold leased or licensed to the general public or has been offered for sale lease or license to the general public
bull A final commercial determination is made by the government contracting officer If the items is deemed to not be commercial the supplier is required to submit a complete proposal that includes cost and pricing data
38FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you claim one or more of your parts are commercial you need to support
your position by providing the following information
bull Copies of applicable portions of a company catalogue or website address that shows the item with a description and unit price
bull Show that these items can be purchased by the general public or nongovernmentalagency
bull If a website or catalogue is not available copies of invoices showing the sale of these items to nongovernment entities is sufficient
39FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull PSEMC policy requires suppliers to complete a PSEMC Supplier Proposal
Adequacy Checklist (sent with the RFP) for all proposals where the supplierclaims its parts are commercial
bull An example of the Supplier Proposal Adequacy Checklist for commercialitems is attached reference form DI-SUP-310F01
40PSEMC Policy
Pacific Scientific EMC ndash Commercial Item Status
If claiming an exemption offeror must provide the appropriate information to determine commerciality Refusal to provide the required information can result in an assist audit being requested from the Defense Contract Audit Agency or other cognizant Government Audit Agencies and or a determination that goods andor services offered do not constitute a ldquocommercial itemrdquo
Offeror hereby represents that to the best of its knowledge information and belief goods andor services offered constitute a ldquocommercial itemrdquo as defined by FAR 2101 because it constitutes
A Commercial Item or Component Justification (required for any claim)
Key Inquiries and Summary of your Supporting Information
What is the relevant ldquotyperdquo of item enspenspenspenspensp
What are the types of items uses by the general public or by non-governmental entities for other than governmental purposes enspenspenspenspensp
What indicates the type of itemrsquos use described above is customary enspenspenspenspensp
Has the offered item itself (as opposed to the type of item) been sold or offered for sale
|_| Yes|_| NO
Are the offered itemrsquos sales (or offers to sale) to the general public
|_| Yes|_| NO
Please provide data regarding sales leases or licenses of this item and identification of the non-government use entities
ValueNon-Government Use Entities
(date)(date)
In addition as an appendix to this commercial item determination provide supporting documentation in the form of
1that have not materialized into sales
2that have not materialized into leases
3that have not materialized into licenses
1 Verification of sales history to source documents
2 Identification of customarily offered discounts for the item
3 Verification of the item to an existing catalog or price list and
4 Verification of historical data for an item previously not determined commercial that the offeror is now trying to qualify as a commercial item
(check box(es) as appropriate)
|_| I Unmodified Commercial Items or Components (Complete Section A)
Any item other than real property that is a of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes and
(i) Has been sold leased or licensed to the general public or
(ii) Has been offered for sale lease or license to the general public
|_| II Item Evolved from Commercial Items or Components
Any item that evolved from an item described in Part I (which is required if claiming this exemption) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace but will be available in the commercial marketplace in time to satisfy the delivery requirements under a United States Government solicitation
If claiming the item Evolved from Commercial Items or Components exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use Part I)
|_| Yes|_| NO
If yes describe the relationship of the modifications to the Federal Government requirement enspenspenspenspensp
What are the advances in technology or performance between the offered item and the commercial item on which it is based enspenspenspenspensp
What is your support for such advances enspenspenspenspensp
What is your support for availability of the item in time to meet requirements Is the claim availability reasonable enspenspenspenspensp
Please provide data regarding
(a) Currently pending offers including
(b) Planned Offers Including
In all instances scheduled for delivery no later than the delivery requirements under the
(c) Data in the format of Part I for completed sales of the item from which the ldquocommercial itemrdquo evolved
|_| III Modified Commercial Items or Components
Any item that would satisfy a criterion expressed in Part I or II hereof but for -
|_| (i) Modifications of a type customarily available in the commercial marketplace
If claiming Modified Commercial Item or Components that are of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use part I or parts II and II)
|_| Yes|_| NO
What are the modifications that would be made to the commercial item enspenspenspenspensp
Are the modifications of a type customarily available in the commercial marketplace
|_| Yes|_| NO
Summarize your support for customary availability of the modification in the commercial marketplace enspenspenspenspensp
|_| (ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet federal government requirements ldquoMinor modificationsrdquo means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component or change the purpose of a process Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product Dollar values and percentages may be used as guideposts but are not conclusive evidence that a modification is minor
If claiming Modified Commercial Items or Components that are not of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Are the modifications made to satisfy Federal Government requirements
|_| Yes|_| NO
Do the modifications alter the nongovernmental function or essential physical characteristics of the item
|_| Yes|_| NO
If yes what are the alterations enspenspenspenspensp
Does the modified item retain a predominance of nongovernmental functions or physical characteristics
|_| Yes|_| NO
Summarize your support describing the value of the modifications in comparison to the value of the final product enspenspenspenspensp
Summarize your support for the magnitude or size of the modifications in relation to the magnitude or size of the final product enspenspenspenspensp
Are there any other factors which would allow you to conclude that the modifications are minor
|_| Yes|_| NO
If yes what are they enspenspenspenspensp
Based on the above does the modification qualify as a minor modification
|_| Yes|_| NO
Please provide data regarding the minor modification and the total price to PSEMC of Minor Modifications
Price to PSEMC of all Minor Modifications at quantities proposed in this pricing action enspenspenspenspensp
Minor modifications that exceed the thresholds in FAR 15403-1(c)(3)(iii)(B) are subject to the Certified Cost or Pricing Data requirements and must be proposed as described by FAR 15408 Table 152
|_| IV Commercial Items Support Services
Installation services maintenance services repair services training services and other services if -
(i) Such services are procured for support of an item referred to in Parts I II III or IV hereof regardless of whether such services are provided by the same source or at the same time as the item and
(ii) The source of such services provided similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government
If claiming Commercial Item Support Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services procured for the support of a commercial item which qualifies under a preceding part
|_| Yes|_| NO
Describe the nature of the services and how they support the commercial item enspenspenspenspensp
Are the services provided at the same time to the general public and the Federal Government
|_| Yes|_| NO
Are the terms and conditions for the services similar to those offered to the general public
|_| Yes|_| NO
Describe differences enspenspenspenspensp
Please provide data regarding
a Open and completed contracts including
b Pending offers including
|_| V Any Combination of Items
Meeting the requirements of Parts I II III or IV hereof that are of a type customarily combined and sold in combination to the general public
If you have checked the above box and are claiming the Any Combination of Items exemption please attach hereto information as requ3sted for Parts I II III and IV
|_| VI Other Commercial Services
Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions For purposes of these services -
(i) Catalog price means a price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor is either published or otherwise available for inspection by customers and states prices at which sales are currently or were last made to a significant number of buyers constituting the general public and
(ii) Market prices means current prices that are established in the course of ordinary trade between buyers and sellers free to bargain and that can be substantiated through competition or from source independent of the offerors
If claiming the Other Commercial Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services sold competitively in substantial quantities in the commercial marketplace
|_| Yes|_| NO
If no are the services of a type sold in substantial quantities in the commercial marketplace
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If yes what is the ldquotyperdquo of service enspenspenspenspensp
Summarize your support for same enspenspenspenspensp
Are the prices quoted for specific tasks performed or specific outcomes to be achieved
|_| Yes|_| NO
Are the services offered consistent with your standard terms and conditions
|_| Yes|_| NO
Are the services of a type sold at catalog or market prices
|_| Yes|_| NO
If sold at catalog price is the price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor
|_| Yes|_| NO
If sold at catalog price is the catalog or its equivalent either published or otherwise available for inspection by customers
|_| Yes|_| NO
Summarize your support for same (include a copy of the catalog or provide location) enspenspenspenspensp
If sold at a catalog price are the listed prices those at which sales are currently or were last made to a significant number of buyers in the general public
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If sold at a market price are the prices established in the course of ordinary trade between buyers and sellers free to bargain
|_| Yes|_| NO
Summarize you support for same enspenspenspenspensp
If sold at market price can the price be substantiated through competition or from sources independent of the offeror
|_| Yes|_| NO
Summarize your support for same
Please provide data regarding
(a) Open and completed contracts including
(b) Pending Offers including
|_| VII Any Item Combination of Items or Service
Referred to in Parts I through VI hereof notwithstanding the fact that the item combination of items or service is transferred between or among separate divisions subsidiaries or affiliates of the Offeror
If you have checked the above box and are claiming the ldquoAny item combination of items or Servicerdquo exemption please provide data regarding
|_| VIII Non-developmental Items
A non-developmental item as defined in FAR 2101 which has been developed exclusively at private expense and sold in substantial quantities on a competitive basis to multiple State and local governments
If claiming the Non-developmental Items exemption then the following must be provided
Key Inquiries and Summary of Supplierrsquos Supporting Information
Was the item previously developed
|_| Yes|_| NO
Was the item used exclusively for governmental purposes by a Federal agency a State or local government or a foreign government with which the United States has mutual defense cooperation agreement
|_| Yes|_| NO
If the item is to be modified do the modifications comply with Part III guidance on modifications
|_| Yes|_| NO
If the item is not yet in use does it otherwise qualify as a non-developmental item
|_| Yes|_| NO
Was the item developed exclusively at private expense
|_| Yes|_| NO
Is the item sold in substantial quantities on a competitive basis to multiple State and local governments
|_| Yes|_| NO
Please provide data regarding
|_| IX General Inquiries
Does the item qualify as a combination of items under Parts I II III and IV above
|_| Yes|_| NO
Has the item or services previously been determined to be commercial
|_| Yes|_| NO
If so by whom enspenspenspenspensp
|_| X Other Information
Is there other information of which you are aware that would supplement the information provided and would help substantiate whether the item or service is commercial
|_| Yes|_| NO
Have you provided such information
|_| Yes|_| NO
List such information enspenspenspenspensp
|_| XI Supplier Determination
Offeror hereby represents that the foregoing information is accurate and complete and that to the best of its knowledge information and belief goods and or services offered currently constitute ldquoa commercial itemrdquo as defined by FAR 2101
For PSEMC Internal Use Only
XII Supplier Determination
Supplier has claimed that the item component or service identified above is a commercial item under the definition at FAR 2101 I have reviewed and summarized the supplierrsquos support for that claim in the appropriate sections above Based on such review of such support information and any other information identified elsewhere herein I conclude that the supplier
|_| HAS |_| HAS NOT Supported its claim of commercial item status under the definition at FAR 2101
If the supplier HAS NOT supported its claim list reasons enspenspenspenspensp
Describe action plat to resolve enspenspenspenspensp
Comments enspenspenspenspensp
image1jpeg
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull This section of Table 15-2 describes the format an estimating approach we
are required to use when developing a proposal to modify an existingcontract In addition to the cost element breakdowns required as describedin the previous slides when there is a modification or change proposal FARalso requires the following table to be inserted into your proposal
41
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals
42FAR 15408 Table 15-2 III B
B Change Orders modifications and claims
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
Column 2 includes the cost of all work deleted This
includes cost of work deleted already performed (amount in Column 3) and
cost of work deleted not yet performed (Column 4)
Column 3 includes the cost of deleted work already
performed This amount will not be included in the credit (delete) adjustment amount (eg we will not give back costs already
incurred)
Column 4 includes cost for deleted work not yet performed ndash must be priced using current
estimates (but the current estimate may be the same as
the original estimate) ndash it is develed similar to a normal ldquoaddrdquo proposal with a few
exceptions
Column 5 includes the cost of the
new work and is developed as we do any
other proposal
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull Detail for columns listed on previous page
1 Enter appropriate cost element2 Enter current estimates of what it would take to complete the deleted work that
has not yet been performed3 Enter current cost of deleted work already performed This should be based on
actuals and copies to support these actuals should be included in the proposal4 Enter the net cost to be deleted (Column 2 minus Column 3)5 Enter your estimate for cost of work added by the change6 Enter the net cost of change (Column 5 minus Column 4)7 Identify where in your proposal the supporting documentation and basis of
estimate can be found for each of these sections
43FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull For purposes of determining if a proposal an cost or pricing data are
required from individual suppliers on a change proposal the absolute valueof the ldquodeleterdquo amount plus the ldquoaddrdquo amount is computed for each supplierthat exceeds the cost and pricing threshold (TINA)
bull Remember from FAR 15403-4(b) ndash if the absolute value for an individualsupplier exceeds the cost and pricing threshold (TINA) and the supplier iseither an actual supplier (will continue to provide partsservices on thiscontract) the supplier is required to provide a proposal and cost or pricingdata in support of the change proposal
bull Deleted amount is our current estimate (generally no the original contractvalue unless it is our current estimate)
44FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull If a supplierrsquos quantities are changing due to a modification the net delete
or add amount is used to determine if the supplier exceeds the cost andpricing threshold (TINA)
bull The estimator should not consider the old quantity as the delete and thenew quantity as the add (eg in computing absolute value) whendetermining if the supplier exceeds the threshold in cases where quantitiesare changing
bull The development of the appropriate deletion is not simply the estimatedcost of the deleted quantity ndash this will overstate the credit
45FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals Cost of WorkDeleted for a Partial Deleted Quantitybull In cases where part of a material quantity is being deleted (eg original
contract requires 100 widgets and the contract is modified to delete 30 ofthem) one method of estimating the amount of the delete is
1 Develop a current estimate of the extended cost for the item(s) given the originalquantity
2 Develop a current estimate of the extended cost for the items at the lower(remaining) quantity
3 The delta between these two values represents the amount of the delete
bull The same method can be used if the contract is modified to increase aquantity for a part
46FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklist
47
bull The Supplier Proposal Adequacy Checklist is accessed from the externalPSEMC supplier website
bull Additional supplier proposal guidance and resources are available(information templates and tools to assist in building a FAR compliantproposal
bull Supplier proposal guidance
bull Supplier Proposal Adequacy Guidelines
bull PSEMC document templates
bull Supplier proposal adequacy checklistbull Contract pricing proposal cover sheet
httpspsemccomsuppliers
- Strategic Affordability Analysis
- Purpose of this Guideline
- Table of Contents
- Table of Contents
- Supplier Proposal Adequacy Checklist
- Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
- Cover Sheet
- Cover Sheet Example ndash Reference Form DI-SUP-105F02
- Index
- Index Example
- Cost Element Breakdown by Line Item
- Cost Element Breakdown by Line Item Example
- Summary Cost Element Breakdown
- Summary Cost Element Breakdown - Example
- Summary Cost Element Breakdown - Example
- Material
- Material
- Individual Bills of Material Example
- Consolidated Bill of Material Example
- Consolidated Bill of Material
- Material
- Material
- Material
- Labor
- Labor
- Labor
- Labor Hours Example
- Labor Hours Example ndash Actual Production History
- Labor Hours Examples ndash Basis of Estimate
- Other Direct Costs (ODC)
- Nonrecurring Expenses (NRE)
- NRE
- Rates
- Rates
- Summary
- Summary
- Other Types of Proposals
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals Cost of WorkDeleted for a Partial Deleted Quantity
- Supplier Proposal Adequacy Checklist
-
| Buyer (Type or Print Name) | Date |
| Offeror | |||
| By | |||
| Title | |||
| Date |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp | ||
| (iii) Total number of customers involved in such sales | enspenspenspenspensp |
| (a) Transfer price(s) of such goods | $ enspenspenspenspensp | ||
| (b) Total units of such goods and or | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| Unmodified Items Identified in Part 1 | Modified Items Proposed to PSMEC | Unit Value of Modification | |||||||
| Unmodified Item | Unmodified Price | Modified Item | Modified Price to PSEMC | ||||||
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| To the general public in the time-frame beginning | enspenspenspenspensp | enspenspenspenspensp | and ending | enspenspenspenspensp |
| (a) Sales | |||||
| (b) Leases | |||||
| (c) Licenses | |||||
| (d) Offers to Sell 1 | |||||
| (e) Offers to Lease 2 | |||||
| (f) Offers to License 3 |
| Part Number | |||
| Description | |||
| Offeror |
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Direct Costs (ODC)bull List other expenses not otherwise included under material and labor (eg
travel freight) and provide basis for pricing
bull For example the basis for travel would include the location number of tripsnumber of people attending and the estimated expenses for the travel
30FAR 15408 Table 15-2 II D
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Nonrecurring Expenses (NRE)bull NRE refers to one-time costs that you would not normally see from proposal
to proposal
bull Examples of NRE are as follows
bull Special Toolingbull New Equipmentbull Equipment Refurbishmentbull Hours and materials associated with increase throughput capacitybull Hours and materials to research develop design and test new processesbull One-Time review events
31FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
NREbull As mentioned earlier NRE charges must be broken out by cost element
This means the material and labor components associated with the NREare clearly broken out
bull Material ndash any material associated with NRE should be supported by supplierquotes or purchase orders
bull Labor ndash labor hours associated with NRE should have basis of estimates(BOE) that are broken down by labor category and include detaileddescriptions of the tasks that will be performed
32FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Rates include direct labor overhead general and administrative expenses
(GampA) and cost of money (COM)
bull PSEMC has the capability to perform rate audits on suppliers in lieu ofhaving the DCAA do this
bull If you allow PSEMC to perform this rate audit you need to provide thefollowing information
bull Explanation as to how the rates were calculatedbull Detailed documentation (financial statements labor pools listing of unallowable
expenses etc) that support the rate calculationsbull If the detailed documentation is based on budgetary numbers you will also need
to provide three years of your most current actuals to support you budgetarynumbers
bull If budgetary numbers differ significantly from the most recent actuals providedetailed explanations for these differences
33FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Facilities Capital COM
bull When you elect to claim COM submit a completed form CASB-CFM (FacilitiesCapital Cost of Money Factors Computation) in accordance with FAR 31205-10Also complete DD Form 1861 and include a copy in your proposal submissionBoth forms can be found on-line at various locations
34FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull In summary all noncompetitive noncommercial proposals valued at more
than the cost and pricing threshold (TINA) are required to include thefollowing information
35
Required Items Page FAR Reference
Supplier Proposal Adequacy Checklist Pg 5-6 PSEMC Policy
Cover Sheet - SF1411 or equivalent Pg 7-8 FAR 15408 Table 15-2 I A
Index Pg 9-10 FAR 15408 Table 15-2 I B
Cost Element Breakdown Pg 11-12 FAR 15408 Table 15-2 I D
Summary Cost Element Breakdown Pg 13-15 FAR 15408 Table 15-2 I E
Material (Including Consolidated BOM) Pg 16-23 FAR 15408 Table 15-2 II A
Labor Pg 24-29 FAR 15408 Table 15-2 II B
ODC Pg 30 FAR 15408 Table 15-2 II D
NRE Pg 31-32 FAR 15408 Table 15-2 II
Rates Pg 33-34 FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull Sufficient rationale and supporting documentation to support each of the
proposed cost elements is also required
bull Obtaining adequate supplier proposals is always on the critical path sincePSEMC cannot submit its proposal to the government until it has receivedadequate proposals from its subcontractors Therefore it is critical thatadequate supplier proposals are obtained as quickly as possible
36
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Types of Proposalsbull Commercial item proposals
bull Change proposals
bull The following slides are only applicable in certain situations
37
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you or one of your suppliers is providing a commercial part cost or pricing
data and a cost analysis is not required However you must demonstrate that the part is commercial and that the price is reasonable
bull A commercial item is any item other than real property that is a type customarily used by the general public or by a nongovernment entity
bull Has also been sold leased or licensed to the general public or has been offered for sale lease or license to the general public
bull A final commercial determination is made by the government contracting officer If the items is deemed to not be commercial the supplier is required to submit a complete proposal that includes cost and pricing data
38FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you claim one or more of your parts are commercial you need to support
your position by providing the following information
bull Copies of applicable portions of a company catalogue or website address that shows the item with a description and unit price
bull Show that these items can be purchased by the general public or nongovernmentalagency
bull If a website or catalogue is not available copies of invoices showing the sale of these items to nongovernment entities is sufficient
39FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull PSEMC policy requires suppliers to complete a PSEMC Supplier Proposal
Adequacy Checklist (sent with the RFP) for all proposals where the supplierclaims its parts are commercial
bull An example of the Supplier Proposal Adequacy Checklist for commercialitems is attached reference form DI-SUP-310F01
40PSEMC Policy
Pacific Scientific EMC ndash Commercial Item Status
If claiming an exemption offeror must provide the appropriate information to determine commerciality Refusal to provide the required information can result in an assist audit being requested from the Defense Contract Audit Agency or other cognizant Government Audit Agencies and or a determination that goods andor services offered do not constitute a ldquocommercial itemrdquo
Offeror hereby represents that to the best of its knowledge information and belief goods andor services offered constitute a ldquocommercial itemrdquo as defined by FAR 2101 because it constitutes
A Commercial Item or Component Justification (required for any claim)
Key Inquiries and Summary of your Supporting Information
What is the relevant ldquotyperdquo of item enspenspenspenspensp
What are the types of items uses by the general public or by non-governmental entities for other than governmental purposes enspenspenspenspensp
What indicates the type of itemrsquos use described above is customary enspenspenspenspensp
Has the offered item itself (as opposed to the type of item) been sold or offered for sale
|_| Yes|_| NO
Are the offered itemrsquos sales (or offers to sale) to the general public
|_| Yes|_| NO
Please provide data regarding sales leases or licenses of this item and identification of the non-government use entities
ValueNon-Government Use Entities
(date)(date)
In addition as an appendix to this commercial item determination provide supporting documentation in the form of
1that have not materialized into sales
2that have not materialized into leases
3that have not materialized into licenses
1 Verification of sales history to source documents
2 Identification of customarily offered discounts for the item
3 Verification of the item to an existing catalog or price list and
4 Verification of historical data for an item previously not determined commercial that the offeror is now trying to qualify as a commercial item
(check box(es) as appropriate)
|_| I Unmodified Commercial Items or Components (Complete Section A)
Any item other than real property that is a of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes and
(i) Has been sold leased or licensed to the general public or
(ii) Has been offered for sale lease or license to the general public
|_| II Item Evolved from Commercial Items or Components
Any item that evolved from an item described in Part I (which is required if claiming this exemption) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace but will be available in the commercial marketplace in time to satisfy the delivery requirements under a United States Government solicitation
If claiming the item Evolved from Commercial Items or Components exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use Part I)
|_| Yes|_| NO
If yes describe the relationship of the modifications to the Federal Government requirement enspenspenspenspensp
What are the advances in technology or performance between the offered item and the commercial item on which it is based enspenspenspenspensp
What is your support for such advances enspenspenspenspensp
What is your support for availability of the item in time to meet requirements Is the claim availability reasonable enspenspenspenspensp
Please provide data regarding
(a) Currently pending offers including
(b) Planned Offers Including
In all instances scheduled for delivery no later than the delivery requirements under the
(c) Data in the format of Part I for completed sales of the item from which the ldquocommercial itemrdquo evolved
|_| III Modified Commercial Items or Components
Any item that would satisfy a criterion expressed in Part I or II hereof but for -
|_| (i) Modifications of a type customarily available in the commercial marketplace
If claiming Modified Commercial Item or Components that are of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use part I or parts II and II)
|_| Yes|_| NO
What are the modifications that would be made to the commercial item enspenspenspenspensp
Are the modifications of a type customarily available in the commercial marketplace
|_| Yes|_| NO
Summarize your support for customary availability of the modification in the commercial marketplace enspenspenspenspensp
|_| (ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet federal government requirements ldquoMinor modificationsrdquo means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component or change the purpose of a process Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product Dollar values and percentages may be used as guideposts but are not conclusive evidence that a modification is minor
If claiming Modified Commercial Items or Components that are not of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Are the modifications made to satisfy Federal Government requirements
|_| Yes|_| NO
Do the modifications alter the nongovernmental function or essential physical characteristics of the item
|_| Yes|_| NO
If yes what are the alterations enspenspenspenspensp
Does the modified item retain a predominance of nongovernmental functions or physical characteristics
|_| Yes|_| NO
Summarize your support describing the value of the modifications in comparison to the value of the final product enspenspenspenspensp
Summarize your support for the magnitude or size of the modifications in relation to the magnitude or size of the final product enspenspenspenspensp
Are there any other factors which would allow you to conclude that the modifications are minor
|_| Yes|_| NO
If yes what are they enspenspenspenspensp
Based on the above does the modification qualify as a minor modification
|_| Yes|_| NO
Please provide data regarding the minor modification and the total price to PSEMC of Minor Modifications
Price to PSEMC of all Minor Modifications at quantities proposed in this pricing action enspenspenspenspensp
Minor modifications that exceed the thresholds in FAR 15403-1(c)(3)(iii)(B) are subject to the Certified Cost or Pricing Data requirements and must be proposed as described by FAR 15408 Table 152
|_| IV Commercial Items Support Services
Installation services maintenance services repair services training services and other services if -
(i) Such services are procured for support of an item referred to in Parts I II III or IV hereof regardless of whether such services are provided by the same source or at the same time as the item and
(ii) The source of such services provided similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government
If claiming Commercial Item Support Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services procured for the support of a commercial item which qualifies under a preceding part
|_| Yes|_| NO
Describe the nature of the services and how they support the commercial item enspenspenspenspensp
Are the services provided at the same time to the general public and the Federal Government
|_| Yes|_| NO
Are the terms and conditions for the services similar to those offered to the general public
|_| Yes|_| NO
Describe differences enspenspenspenspensp
Please provide data regarding
a Open and completed contracts including
b Pending offers including
|_| V Any Combination of Items
Meeting the requirements of Parts I II III or IV hereof that are of a type customarily combined and sold in combination to the general public
If you have checked the above box and are claiming the Any Combination of Items exemption please attach hereto information as requ3sted for Parts I II III and IV
|_| VI Other Commercial Services
Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions For purposes of these services -
(i) Catalog price means a price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor is either published or otherwise available for inspection by customers and states prices at which sales are currently or were last made to a significant number of buyers constituting the general public and
(ii) Market prices means current prices that are established in the course of ordinary trade between buyers and sellers free to bargain and that can be substantiated through competition or from source independent of the offerors
If claiming the Other Commercial Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services sold competitively in substantial quantities in the commercial marketplace
|_| Yes|_| NO
If no are the services of a type sold in substantial quantities in the commercial marketplace
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If yes what is the ldquotyperdquo of service enspenspenspenspensp
Summarize your support for same enspenspenspenspensp
Are the prices quoted for specific tasks performed or specific outcomes to be achieved
|_| Yes|_| NO
Are the services offered consistent with your standard terms and conditions
|_| Yes|_| NO
Are the services of a type sold at catalog or market prices
|_| Yes|_| NO
If sold at catalog price is the price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor
|_| Yes|_| NO
If sold at catalog price is the catalog or its equivalent either published or otherwise available for inspection by customers
|_| Yes|_| NO
Summarize your support for same (include a copy of the catalog or provide location) enspenspenspenspensp
If sold at a catalog price are the listed prices those at which sales are currently or were last made to a significant number of buyers in the general public
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If sold at a market price are the prices established in the course of ordinary trade between buyers and sellers free to bargain
|_| Yes|_| NO
Summarize you support for same enspenspenspenspensp
If sold at market price can the price be substantiated through competition or from sources independent of the offeror
|_| Yes|_| NO
Summarize your support for same
Please provide data regarding
(a) Open and completed contracts including
(b) Pending Offers including
|_| VII Any Item Combination of Items or Service
Referred to in Parts I through VI hereof notwithstanding the fact that the item combination of items or service is transferred between or among separate divisions subsidiaries or affiliates of the Offeror
If you have checked the above box and are claiming the ldquoAny item combination of items or Servicerdquo exemption please provide data regarding
|_| VIII Non-developmental Items
A non-developmental item as defined in FAR 2101 which has been developed exclusively at private expense and sold in substantial quantities on a competitive basis to multiple State and local governments
If claiming the Non-developmental Items exemption then the following must be provided
Key Inquiries and Summary of Supplierrsquos Supporting Information
Was the item previously developed
|_| Yes|_| NO
Was the item used exclusively for governmental purposes by a Federal agency a State or local government or a foreign government with which the United States has mutual defense cooperation agreement
|_| Yes|_| NO
If the item is to be modified do the modifications comply with Part III guidance on modifications
|_| Yes|_| NO
If the item is not yet in use does it otherwise qualify as a non-developmental item
|_| Yes|_| NO
Was the item developed exclusively at private expense
|_| Yes|_| NO
Is the item sold in substantial quantities on a competitive basis to multiple State and local governments
|_| Yes|_| NO
Please provide data regarding
|_| IX General Inquiries
Does the item qualify as a combination of items under Parts I II III and IV above
|_| Yes|_| NO
Has the item or services previously been determined to be commercial
|_| Yes|_| NO
If so by whom enspenspenspenspensp
|_| X Other Information
Is there other information of which you are aware that would supplement the information provided and would help substantiate whether the item or service is commercial
|_| Yes|_| NO
Have you provided such information
|_| Yes|_| NO
List such information enspenspenspenspensp
|_| XI Supplier Determination
Offeror hereby represents that the foregoing information is accurate and complete and that to the best of its knowledge information and belief goods and or services offered currently constitute ldquoa commercial itemrdquo as defined by FAR 2101
For PSEMC Internal Use Only
XII Supplier Determination
Supplier has claimed that the item component or service identified above is a commercial item under the definition at FAR 2101 I have reviewed and summarized the supplierrsquos support for that claim in the appropriate sections above Based on such review of such support information and any other information identified elsewhere herein I conclude that the supplier
|_| HAS |_| HAS NOT Supported its claim of commercial item status under the definition at FAR 2101
If the supplier HAS NOT supported its claim list reasons enspenspenspenspensp
Describe action plat to resolve enspenspenspenspensp
Comments enspenspenspenspensp
image1jpeg
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull This section of Table 15-2 describes the format an estimating approach we
are required to use when developing a proposal to modify an existingcontract In addition to the cost element breakdowns required as describedin the previous slides when there is a modification or change proposal FARalso requires the following table to be inserted into your proposal
41
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals
42FAR 15408 Table 15-2 III B
B Change Orders modifications and claims
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
Column 2 includes the cost of all work deleted This
includes cost of work deleted already performed (amount in Column 3) and
cost of work deleted not yet performed (Column 4)
Column 3 includes the cost of deleted work already
performed This amount will not be included in the credit (delete) adjustment amount (eg we will not give back costs already
incurred)
Column 4 includes cost for deleted work not yet performed ndash must be priced using current
estimates (but the current estimate may be the same as
the original estimate) ndash it is develed similar to a normal ldquoaddrdquo proposal with a few
exceptions
Column 5 includes the cost of the
new work and is developed as we do any
other proposal
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull Detail for columns listed on previous page
1 Enter appropriate cost element2 Enter current estimates of what it would take to complete the deleted work that
has not yet been performed3 Enter current cost of deleted work already performed This should be based on
actuals and copies to support these actuals should be included in the proposal4 Enter the net cost to be deleted (Column 2 minus Column 3)5 Enter your estimate for cost of work added by the change6 Enter the net cost of change (Column 5 minus Column 4)7 Identify where in your proposal the supporting documentation and basis of
estimate can be found for each of these sections
43FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull For purposes of determining if a proposal an cost or pricing data are
required from individual suppliers on a change proposal the absolute valueof the ldquodeleterdquo amount plus the ldquoaddrdquo amount is computed for each supplierthat exceeds the cost and pricing threshold (TINA)
bull Remember from FAR 15403-4(b) ndash if the absolute value for an individualsupplier exceeds the cost and pricing threshold (TINA) and the supplier iseither an actual supplier (will continue to provide partsservices on thiscontract) the supplier is required to provide a proposal and cost or pricingdata in support of the change proposal
bull Deleted amount is our current estimate (generally no the original contractvalue unless it is our current estimate)
44FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull If a supplierrsquos quantities are changing due to a modification the net delete
or add amount is used to determine if the supplier exceeds the cost andpricing threshold (TINA)
bull The estimator should not consider the old quantity as the delete and thenew quantity as the add (eg in computing absolute value) whendetermining if the supplier exceeds the threshold in cases where quantitiesare changing
bull The development of the appropriate deletion is not simply the estimatedcost of the deleted quantity ndash this will overstate the credit
45FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals Cost of WorkDeleted for a Partial Deleted Quantitybull In cases where part of a material quantity is being deleted (eg original
contract requires 100 widgets and the contract is modified to delete 30 ofthem) one method of estimating the amount of the delete is
1 Develop a current estimate of the extended cost for the item(s) given the originalquantity
2 Develop a current estimate of the extended cost for the items at the lower(remaining) quantity
3 The delta between these two values represents the amount of the delete
bull The same method can be used if the contract is modified to increase aquantity for a part
46FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklist
47
bull The Supplier Proposal Adequacy Checklist is accessed from the externalPSEMC supplier website
bull Additional supplier proposal guidance and resources are available(information templates and tools to assist in building a FAR compliantproposal
bull Supplier proposal guidance
bull Supplier Proposal Adequacy Guidelines
bull PSEMC document templates
bull Supplier proposal adequacy checklistbull Contract pricing proposal cover sheet
httpspsemccomsuppliers
- Strategic Affordability Analysis
- Purpose of this Guideline
- Table of Contents
- Table of Contents
- Supplier Proposal Adequacy Checklist
- Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
- Cover Sheet
- Cover Sheet Example ndash Reference Form DI-SUP-105F02
- Index
- Index Example
- Cost Element Breakdown by Line Item
- Cost Element Breakdown by Line Item Example
- Summary Cost Element Breakdown
- Summary Cost Element Breakdown - Example
- Summary Cost Element Breakdown - Example
- Material
- Material
- Individual Bills of Material Example
- Consolidated Bill of Material Example
- Consolidated Bill of Material
- Material
- Material
- Material
- Labor
- Labor
- Labor
- Labor Hours Example
- Labor Hours Example ndash Actual Production History
- Labor Hours Examples ndash Basis of Estimate
- Other Direct Costs (ODC)
- Nonrecurring Expenses (NRE)
- NRE
- Rates
- Rates
- Summary
- Summary
- Other Types of Proposals
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals Cost of WorkDeleted for a Partial Deleted Quantity
- Supplier Proposal Adequacy Checklist
-
| Buyer (Type or Print Name) | Date |
| Offeror | |||
| By | |||
| Title | |||
| Date |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp | ||
| (iii) Total number of customers involved in such sales | enspenspenspenspensp |
| (a) Transfer price(s) of such goods | $ enspenspenspenspensp | ||
| (b) Total units of such goods and or | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| Unmodified Items Identified in Part 1 | Modified Items Proposed to PSMEC | Unit Value of Modification | |||||||
| Unmodified Item | Unmodified Price | Modified Item | Modified Price to PSEMC | ||||||
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| To the general public in the time-frame beginning | enspenspenspenspensp | enspenspenspenspensp | and ending | enspenspenspenspensp |
| (a) Sales | |||||
| (b) Leases | |||||
| (c) Licenses | |||||
| (d) Offers to Sell 1 | |||||
| (e) Offers to Lease 2 | |||||
| (f) Offers to License 3 |
| Part Number | |||
| Description | |||
| Offeror |
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Nonrecurring Expenses (NRE)bull NRE refers to one-time costs that you would not normally see from proposal
to proposal
bull Examples of NRE are as follows
bull Special Toolingbull New Equipmentbull Equipment Refurbishmentbull Hours and materials associated with increase throughput capacitybull Hours and materials to research develop design and test new processesbull One-Time review events
31FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
NREbull As mentioned earlier NRE charges must be broken out by cost element
This means the material and labor components associated with the NREare clearly broken out
bull Material ndash any material associated with NRE should be supported by supplierquotes or purchase orders
bull Labor ndash labor hours associated with NRE should have basis of estimates(BOE) that are broken down by labor category and include detaileddescriptions of the tasks that will be performed
32FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Rates include direct labor overhead general and administrative expenses
(GampA) and cost of money (COM)
bull PSEMC has the capability to perform rate audits on suppliers in lieu ofhaving the DCAA do this
bull If you allow PSEMC to perform this rate audit you need to provide thefollowing information
bull Explanation as to how the rates were calculatedbull Detailed documentation (financial statements labor pools listing of unallowable
expenses etc) that support the rate calculationsbull If the detailed documentation is based on budgetary numbers you will also need
to provide three years of your most current actuals to support you budgetarynumbers
bull If budgetary numbers differ significantly from the most recent actuals providedetailed explanations for these differences
33FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Facilities Capital COM
bull When you elect to claim COM submit a completed form CASB-CFM (FacilitiesCapital Cost of Money Factors Computation) in accordance with FAR 31205-10Also complete DD Form 1861 and include a copy in your proposal submissionBoth forms can be found on-line at various locations
34FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull In summary all noncompetitive noncommercial proposals valued at more
than the cost and pricing threshold (TINA) are required to include thefollowing information
35
Required Items Page FAR Reference
Supplier Proposal Adequacy Checklist Pg 5-6 PSEMC Policy
Cover Sheet - SF1411 or equivalent Pg 7-8 FAR 15408 Table 15-2 I A
Index Pg 9-10 FAR 15408 Table 15-2 I B
Cost Element Breakdown Pg 11-12 FAR 15408 Table 15-2 I D
Summary Cost Element Breakdown Pg 13-15 FAR 15408 Table 15-2 I E
Material (Including Consolidated BOM) Pg 16-23 FAR 15408 Table 15-2 II A
Labor Pg 24-29 FAR 15408 Table 15-2 II B
ODC Pg 30 FAR 15408 Table 15-2 II D
NRE Pg 31-32 FAR 15408 Table 15-2 II
Rates Pg 33-34 FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull Sufficient rationale and supporting documentation to support each of the
proposed cost elements is also required
bull Obtaining adequate supplier proposals is always on the critical path sincePSEMC cannot submit its proposal to the government until it has receivedadequate proposals from its subcontractors Therefore it is critical thatadequate supplier proposals are obtained as quickly as possible
36
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Types of Proposalsbull Commercial item proposals
bull Change proposals
bull The following slides are only applicable in certain situations
37
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you or one of your suppliers is providing a commercial part cost or pricing
data and a cost analysis is not required However you must demonstrate that the part is commercial and that the price is reasonable
bull A commercial item is any item other than real property that is a type customarily used by the general public or by a nongovernment entity
bull Has also been sold leased or licensed to the general public or has been offered for sale lease or license to the general public
bull A final commercial determination is made by the government contracting officer If the items is deemed to not be commercial the supplier is required to submit a complete proposal that includes cost and pricing data
38FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you claim one or more of your parts are commercial you need to support
your position by providing the following information
bull Copies of applicable portions of a company catalogue or website address that shows the item with a description and unit price
bull Show that these items can be purchased by the general public or nongovernmentalagency
bull If a website or catalogue is not available copies of invoices showing the sale of these items to nongovernment entities is sufficient
39FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull PSEMC policy requires suppliers to complete a PSEMC Supplier Proposal
Adequacy Checklist (sent with the RFP) for all proposals where the supplierclaims its parts are commercial
bull An example of the Supplier Proposal Adequacy Checklist for commercialitems is attached reference form DI-SUP-310F01
40PSEMC Policy
Pacific Scientific EMC ndash Commercial Item Status
If claiming an exemption offeror must provide the appropriate information to determine commerciality Refusal to provide the required information can result in an assist audit being requested from the Defense Contract Audit Agency or other cognizant Government Audit Agencies and or a determination that goods andor services offered do not constitute a ldquocommercial itemrdquo
Offeror hereby represents that to the best of its knowledge information and belief goods andor services offered constitute a ldquocommercial itemrdquo as defined by FAR 2101 because it constitutes
A Commercial Item or Component Justification (required for any claim)
Key Inquiries and Summary of your Supporting Information
What is the relevant ldquotyperdquo of item enspenspenspenspensp
What are the types of items uses by the general public or by non-governmental entities for other than governmental purposes enspenspenspenspensp
What indicates the type of itemrsquos use described above is customary enspenspenspenspensp
Has the offered item itself (as opposed to the type of item) been sold or offered for sale
|_| Yes|_| NO
Are the offered itemrsquos sales (or offers to sale) to the general public
|_| Yes|_| NO
Please provide data regarding sales leases or licenses of this item and identification of the non-government use entities
ValueNon-Government Use Entities
(date)(date)
In addition as an appendix to this commercial item determination provide supporting documentation in the form of
1that have not materialized into sales
2that have not materialized into leases
3that have not materialized into licenses
1 Verification of sales history to source documents
2 Identification of customarily offered discounts for the item
3 Verification of the item to an existing catalog or price list and
4 Verification of historical data for an item previously not determined commercial that the offeror is now trying to qualify as a commercial item
(check box(es) as appropriate)
|_| I Unmodified Commercial Items or Components (Complete Section A)
Any item other than real property that is a of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes and
(i) Has been sold leased or licensed to the general public or
(ii) Has been offered for sale lease or license to the general public
|_| II Item Evolved from Commercial Items or Components
Any item that evolved from an item described in Part I (which is required if claiming this exemption) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace but will be available in the commercial marketplace in time to satisfy the delivery requirements under a United States Government solicitation
If claiming the item Evolved from Commercial Items or Components exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use Part I)
|_| Yes|_| NO
If yes describe the relationship of the modifications to the Federal Government requirement enspenspenspenspensp
What are the advances in technology or performance between the offered item and the commercial item on which it is based enspenspenspenspensp
What is your support for such advances enspenspenspenspensp
What is your support for availability of the item in time to meet requirements Is the claim availability reasonable enspenspenspenspensp
Please provide data regarding
(a) Currently pending offers including
(b) Planned Offers Including
In all instances scheduled for delivery no later than the delivery requirements under the
(c) Data in the format of Part I for completed sales of the item from which the ldquocommercial itemrdquo evolved
|_| III Modified Commercial Items or Components
Any item that would satisfy a criterion expressed in Part I or II hereof but for -
|_| (i) Modifications of a type customarily available in the commercial marketplace
If claiming Modified Commercial Item or Components that are of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use part I or parts II and II)
|_| Yes|_| NO
What are the modifications that would be made to the commercial item enspenspenspenspensp
Are the modifications of a type customarily available in the commercial marketplace
|_| Yes|_| NO
Summarize your support for customary availability of the modification in the commercial marketplace enspenspenspenspensp
|_| (ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet federal government requirements ldquoMinor modificationsrdquo means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component or change the purpose of a process Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product Dollar values and percentages may be used as guideposts but are not conclusive evidence that a modification is minor
If claiming Modified Commercial Items or Components that are not of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Are the modifications made to satisfy Federal Government requirements
|_| Yes|_| NO
Do the modifications alter the nongovernmental function or essential physical characteristics of the item
|_| Yes|_| NO
If yes what are the alterations enspenspenspenspensp
Does the modified item retain a predominance of nongovernmental functions or physical characteristics
|_| Yes|_| NO
Summarize your support describing the value of the modifications in comparison to the value of the final product enspenspenspenspensp
Summarize your support for the magnitude or size of the modifications in relation to the magnitude or size of the final product enspenspenspenspensp
Are there any other factors which would allow you to conclude that the modifications are minor
|_| Yes|_| NO
If yes what are they enspenspenspenspensp
Based on the above does the modification qualify as a minor modification
|_| Yes|_| NO
Please provide data regarding the minor modification and the total price to PSEMC of Minor Modifications
Price to PSEMC of all Minor Modifications at quantities proposed in this pricing action enspenspenspenspensp
Minor modifications that exceed the thresholds in FAR 15403-1(c)(3)(iii)(B) are subject to the Certified Cost or Pricing Data requirements and must be proposed as described by FAR 15408 Table 152
|_| IV Commercial Items Support Services
Installation services maintenance services repair services training services and other services if -
(i) Such services are procured for support of an item referred to in Parts I II III or IV hereof regardless of whether such services are provided by the same source or at the same time as the item and
(ii) The source of such services provided similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government
If claiming Commercial Item Support Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services procured for the support of a commercial item which qualifies under a preceding part
|_| Yes|_| NO
Describe the nature of the services and how they support the commercial item enspenspenspenspensp
Are the services provided at the same time to the general public and the Federal Government
|_| Yes|_| NO
Are the terms and conditions for the services similar to those offered to the general public
|_| Yes|_| NO
Describe differences enspenspenspenspensp
Please provide data regarding
a Open and completed contracts including
b Pending offers including
|_| V Any Combination of Items
Meeting the requirements of Parts I II III or IV hereof that are of a type customarily combined and sold in combination to the general public
If you have checked the above box and are claiming the Any Combination of Items exemption please attach hereto information as requ3sted for Parts I II III and IV
|_| VI Other Commercial Services
Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions For purposes of these services -
(i) Catalog price means a price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor is either published or otherwise available for inspection by customers and states prices at which sales are currently or were last made to a significant number of buyers constituting the general public and
(ii) Market prices means current prices that are established in the course of ordinary trade between buyers and sellers free to bargain and that can be substantiated through competition or from source independent of the offerors
If claiming the Other Commercial Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services sold competitively in substantial quantities in the commercial marketplace
|_| Yes|_| NO
If no are the services of a type sold in substantial quantities in the commercial marketplace
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If yes what is the ldquotyperdquo of service enspenspenspenspensp
Summarize your support for same enspenspenspenspensp
Are the prices quoted for specific tasks performed or specific outcomes to be achieved
|_| Yes|_| NO
Are the services offered consistent with your standard terms and conditions
|_| Yes|_| NO
Are the services of a type sold at catalog or market prices
|_| Yes|_| NO
If sold at catalog price is the price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor
|_| Yes|_| NO
If sold at catalog price is the catalog or its equivalent either published or otherwise available for inspection by customers
|_| Yes|_| NO
Summarize your support for same (include a copy of the catalog or provide location) enspenspenspenspensp
If sold at a catalog price are the listed prices those at which sales are currently or were last made to a significant number of buyers in the general public
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If sold at a market price are the prices established in the course of ordinary trade between buyers and sellers free to bargain
|_| Yes|_| NO
Summarize you support for same enspenspenspenspensp
If sold at market price can the price be substantiated through competition or from sources independent of the offeror
|_| Yes|_| NO
Summarize your support for same
Please provide data regarding
(a) Open and completed contracts including
(b) Pending Offers including
|_| VII Any Item Combination of Items or Service
Referred to in Parts I through VI hereof notwithstanding the fact that the item combination of items or service is transferred between or among separate divisions subsidiaries or affiliates of the Offeror
If you have checked the above box and are claiming the ldquoAny item combination of items or Servicerdquo exemption please provide data regarding
|_| VIII Non-developmental Items
A non-developmental item as defined in FAR 2101 which has been developed exclusively at private expense and sold in substantial quantities on a competitive basis to multiple State and local governments
If claiming the Non-developmental Items exemption then the following must be provided
Key Inquiries and Summary of Supplierrsquos Supporting Information
Was the item previously developed
|_| Yes|_| NO
Was the item used exclusively for governmental purposes by a Federal agency a State or local government or a foreign government with which the United States has mutual defense cooperation agreement
|_| Yes|_| NO
If the item is to be modified do the modifications comply with Part III guidance on modifications
|_| Yes|_| NO
If the item is not yet in use does it otherwise qualify as a non-developmental item
|_| Yes|_| NO
Was the item developed exclusively at private expense
|_| Yes|_| NO
Is the item sold in substantial quantities on a competitive basis to multiple State and local governments
|_| Yes|_| NO
Please provide data regarding
|_| IX General Inquiries
Does the item qualify as a combination of items under Parts I II III and IV above
|_| Yes|_| NO
Has the item or services previously been determined to be commercial
|_| Yes|_| NO
If so by whom enspenspenspenspensp
|_| X Other Information
Is there other information of which you are aware that would supplement the information provided and would help substantiate whether the item or service is commercial
|_| Yes|_| NO
Have you provided such information
|_| Yes|_| NO
List such information enspenspenspenspensp
|_| XI Supplier Determination
Offeror hereby represents that the foregoing information is accurate and complete and that to the best of its knowledge information and belief goods and or services offered currently constitute ldquoa commercial itemrdquo as defined by FAR 2101
For PSEMC Internal Use Only
XII Supplier Determination
Supplier has claimed that the item component or service identified above is a commercial item under the definition at FAR 2101 I have reviewed and summarized the supplierrsquos support for that claim in the appropriate sections above Based on such review of such support information and any other information identified elsewhere herein I conclude that the supplier
|_| HAS |_| HAS NOT Supported its claim of commercial item status under the definition at FAR 2101
If the supplier HAS NOT supported its claim list reasons enspenspenspenspensp
Describe action plat to resolve enspenspenspenspensp
Comments enspenspenspenspensp
image1jpeg
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull This section of Table 15-2 describes the format an estimating approach we
are required to use when developing a proposal to modify an existingcontract In addition to the cost element breakdowns required as describedin the previous slides when there is a modification or change proposal FARalso requires the following table to be inserted into your proposal
41
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals
42FAR 15408 Table 15-2 III B
B Change Orders modifications and claims
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
Column 2 includes the cost of all work deleted This
includes cost of work deleted already performed (amount in Column 3) and
cost of work deleted not yet performed (Column 4)
Column 3 includes the cost of deleted work already
performed This amount will not be included in the credit (delete) adjustment amount (eg we will not give back costs already
incurred)
Column 4 includes cost for deleted work not yet performed ndash must be priced using current
estimates (but the current estimate may be the same as
the original estimate) ndash it is develed similar to a normal ldquoaddrdquo proposal with a few
exceptions
Column 5 includes the cost of the
new work and is developed as we do any
other proposal
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull Detail for columns listed on previous page
1 Enter appropriate cost element2 Enter current estimates of what it would take to complete the deleted work that
has not yet been performed3 Enter current cost of deleted work already performed This should be based on
actuals and copies to support these actuals should be included in the proposal4 Enter the net cost to be deleted (Column 2 minus Column 3)5 Enter your estimate for cost of work added by the change6 Enter the net cost of change (Column 5 minus Column 4)7 Identify where in your proposal the supporting documentation and basis of
estimate can be found for each of these sections
43FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull For purposes of determining if a proposal an cost or pricing data are
required from individual suppliers on a change proposal the absolute valueof the ldquodeleterdquo amount plus the ldquoaddrdquo amount is computed for each supplierthat exceeds the cost and pricing threshold (TINA)
bull Remember from FAR 15403-4(b) ndash if the absolute value for an individualsupplier exceeds the cost and pricing threshold (TINA) and the supplier iseither an actual supplier (will continue to provide partsservices on thiscontract) the supplier is required to provide a proposal and cost or pricingdata in support of the change proposal
bull Deleted amount is our current estimate (generally no the original contractvalue unless it is our current estimate)
44FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull If a supplierrsquos quantities are changing due to a modification the net delete
or add amount is used to determine if the supplier exceeds the cost andpricing threshold (TINA)
bull The estimator should not consider the old quantity as the delete and thenew quantity as the add (eg in computing absolute value) whendetermining if the supplier exceeds the threshold in cases where quantitiesare changing
bull The development of the appropriate deletion is not simply the estimatedcost of the deleted quantity ndash this will overstate the credit
45FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals Cost of WorkDeleted for a Partial Deleted Quantitybull In cases where part of a material quantity is being deleted (eg original
contract requires 100 widgets and the contract is modified to delete 30 ofthem) one method of estimating the amount of the delete is
1 Develop a current estimate of the extended cost for the item(s) given the originalquantity
2 Develop a current estimate of the extended cost for the items at the lower(remaining) quantity
3 The delta between these two values represents the amount of the delete
bull The same method can be used if the contract is modified to increase aquantity for a part
46FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklist
47
bull The Supplier Proposal Adequacy Checklist is accessed from the externalPSEMC supplier website
bull Additional supplier proposal guidance and resources are available(information templates and tools to assist in building a FAR compliantproposal
bull Supplier proposal guidance
bull Supplier Proposal Adequacy Guidelines
bull PSEMC document templates
bull Supplier proposal adequacy checklistbull Contract pricing proposal cover sheet
httpspsemccomsuppliers
- Strategic Affordability Analysis
- Purpose of this Guideline
- Table of Contents
- Table of Contents
- Supplier Proposal Adequacy Checklist
- Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
- Cover Sheet
- Cover Sheet Example ndash Reference Form DI-SUP-105F02
- Index
- Index Example
- Cost Element Breakdown by Line Item
- Cost Element Breakdown by Line Item Example
- Summary Cost Element Breakdown
- Summary Cost Element Breakdown - Example
- Summary Cost Element Breakdown - Example
- Material
- Material
- Individual Bills of Material Example
- Consolidated Bill of Material Example
- Consolidated Bill of Material
- Material
- Material
- Material
- Labor
- Labor
- Labor
- Labor Hours Example
- Labor Hours Example ndash Actual Production History
- Labor Hours Examples ndash Basis of Estimate
- Other Direct Costs (ODC)
- Nonrecurring Expenses (NRE)
- NRE
- Rates
- Rates
- Summary
- Summary
- Other Types of Proposals
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals Cost of WorkDeleted for a Partial Deleted Quantity
- Supplier Proposal Adequacy Checklist
-
| Buyer (Type or Print Name) | Date |
| Offeror | |||
| By | |||
| Title | |||
| Date |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp | ||
| (iii) Total number of customers involved in such sales | enspenspenspenspensp |
| (a) Transfer price(s) of such goods | $ enspenspenspenspensp | ||
| (b) Total units of such goods and or | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| Unmodified Items Identified in Part 1 | Modified Items Proposed to PSMEC | Unit Value of Modification | |||||||
| Unmodified Item | Unmodified Price | Modified Item | Modified Price to PSEMC | ||||||
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| To the general public in the time-frame beginning | enspenspenspenspensp | enspenspenspenspensp | and ending | enspenspenspenspensp |
| (a) Sales | |||||
| (b) Leases | |||||
| (c) Licenses | |||||
| (d) Offers to Sell 1 | |||||
| (e) Offers to Lease 2 | |||||
| (f) Offers to License 3 |
| Part Number | |||
| Description | |||
| Offeror |
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
NREbull As mentioned earlier NRE charges must be broken out by cost element
This means the material and labor components associated with the NREare clearly broken out
bull Material ndash any material associated with NRE should be supported by supplierquotes or purchase orders
bull Labor ndash labor hours associated with NRE should have basis of estimates(BOE) that are broken down by labor category and include detaileddescriptions of the tasks that will be performed
32FAR 15408 Table 15-2 II
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Rates include direct labor overhead general and administrative expenses
(GampA) and cost of money (COM)
bull PSEMC has the capability to perform rate audits on suppliers in lieu ofhaving the DCAA do this
bull If you allow PSEMC to perform this rate audit you need to provide thefollowing information
bull Explanation as to how the rates were calculatedbull Detailed documentation (financial statements labor pools listing of unallowable
expenses etc) that support the rate calculationsbull If the detailed documentation is based on budgetary numbers you will also need
to provide three years of your most current actuals to support you budgetarynumbers
bull If budgetary numbers differ significantly from the most recent actuals providedetailed explanations for these differences
33FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Facilities Capital COM
bull When you elect to claim COM submit a completed form CASB-CFM (FacilitiesCapital Cost of Money Factors Computation) in accordance with FAR 31205-10Also complete DD Form 1861 and include a copy in your proposal submissionBoth forms can be found on-line at various locations
34FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull In summary all noncompetitive noncommercial proposals valued at more
than the cost and pricing threshold (TINA) are required to include thefollowing information
35
Required Items Page FAR Reference
Supplier Proposal Adequacy Checklist Pg 5-6 PSEMC Policy
Cover Sheet - SF1411 or equivalent Pg 7-8 FAR 15408 Table 15-2 I A
Index Pg 9-10 FAR 15408 Table 15-2 I B
Cost Element Breakdown Pg 11-12 FAR 15408 Table 15-2 I D
Summary Cost Element Breakdown Pg 13-15 FAR 15408 Table 15-2 I E
Material (Including Consolidated BOM) Pg 16-23 FAR 15408 Table 15-2 II A
Labor Pg 24-29 FAR 15408 Table 15-2 II B
ODC Pg 30 FAR 15408 Table 15-2 II D
NRE Pg 31-32 FAR 15408 Table 15-2 II
Rates Pg 33-34 FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull Sufficient rationale and supporting documentation to support each of the
proposed cost elements is also required
bull Obtaining adequate supplier proposals is always on the critical path sincePSEMC cannot submit its proposal to the government until it has receivedadequate proposals from its subcontractors Therefore it is critical thatadequate supplier proposals are obtained as quickly as possible
36
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Types of Proposalsbull Commercial item proposals
bull Change proposals
bull The following slides are only applicable in certain situations
37
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you or one of your suppliers is providing a commercial part cost or pricing
data and a cost analysis is not required However you must demonstrate that the part is commercial and that the price is reasonable
bull A commercial item is any item other than real property that is a type customarily used by the general public or by a nongovernment entity
bull Has also been sold leased or licensed to the general public or has been offered for sale lease or license to the general public
bull A final commercial determination is made by the government contracting officer If the items is deemed to not be commercial the supplier is required to submit a complete proposal that includes cost and pricing data
38FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you claim one or more of your parts are commercial you need to support
your position by providing the following information
bull Copies of applicable portions of a company catalogue or website address that shows the item with a description and unit price
bull Show that these items can be purchased by the general public or nongovernmentalagency
bull If a website or catalogue is not available copies of invoices showing the sale of these items to nongovernment entities is sufficient
39FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull PSEMC policy requires suppliers to complete a PSEMC Supplier Proposal
Adequacy Checklist (sent with the RFP) for all proposals where the supplierclaims its parts are commercial
bull An example of the Supplier Proposal Adequacy Checklist for commercialitems is attached reference form DI-SUP-310F01
40PSEMC Policy
Pacific Scientific EMC ndash Commercial Item Status
If claiming an exemption offeror must provide the appropriate information to determine commerciality Refusal to provide the required information can result in an assist audit being requested from the Defense Contract Audit Agency or other cognizant Government Audit Agencies and or a determination that goods andor services offered do not constitute a ldquocommercial itemrdquo
Offeror hereby represents that to the best of its knowledge information and belief goods andor services offered constitute a ldquocommercial itemrdquo as defined by FAR 2101 because it constitutes
A Commercial Item or Component Justification (required for any claim)
Key Inquiries and Summary of your Supporting Information
What is the relevant ldquotyperdquo of item enspenspenspenspensp
What are the types of items uses by the general public or by non-governmental entities for other than governmental purposes enspenspenspenspensp
What indicates the type of itemrsquos use described above is customary enspenspenspenspensp
Has the offered item itself (as opposed to the type of item) been sold or offered for sale
|_| Yes|_| NO
Are the offered itemrsquos sales (or offers to sale) to the general public
|_| Yes|_| NO
Please provide data regarding sales leases or licenses of this item and identification of the non-government use entities
ValueNon-Government Use Entities
(date)(date)
In addition as an appendix to this commercial item determination provide supporting documentation in the form of
1that have not materialized into sales
2that have not materialized into leases
3that have not materialized into licenses
1 Verification of sales history to source documents
2 Identification of customarily offered discounts for the item
3 Verification of the item to an existing catalog or price list and
4 Verification of historical data for an item previously not determined commercial that the offeror is now trying to qualify as a commercial item
(check box(es) as appropriate)
|_| I Unmodified Commercial Items or Components (Complete Section A)
Any item other than real property that is a of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes and
(i) Has been sold leased or licensed to the general public or
(ii) Has been offered for sale lease or license to the general public
|_| II Item Evolved from Commercial Items or Components
Any item that evolved from an item described in Part I (which is required if claiming this exemption) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace but will be available in the commercial marketplace in time to satisfy the delivery requirements under a United States Government solicitation
If claiming the item Evolved from Commercial Items or Components exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use Part I)
|_| Yes|_| NO
If yes describe the relationship of the modifications to the Federal Government requirement enspenspenspenspensp
What are the advances in technology or performance between the offered item and the commercial item on which it is based enspenspenspenspensp
What is your support for such advances enspenspenspenspensp
What is your support for availability of the item in time to meet requirements Is the claim availability reasonable enspenspenspenspensp
Please provide data regarding
(a) Currently pending offers including
(b) Planned Offers Including
In all instances scheduled for delivery no later than the delivery requirements under the
(c) Data in the format of Part I for completed sales of the item from which the ldquocommercial itemrdquo evolved
|_| III Modified Commercial Items or Components
Any item that would satisfy a criterion expressed in Part I or II hereof but for -
|_| (i) Modifications of a type customarily available in the commercial marketplace
If claiming Modified Commercial Item or Components that are of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use part I or parts II and II)
|_| Yes|_| NO
What are the modifications that would be made to the commercial item enspenspenspenspensp
Are the modifications of a type customarily available in the commercial marketplace
|_| Yes|_| NO
Summarize your support for customary availability of the modification in the commercial marketplace enspenspenspenspensp
|_| (ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet federal government requirements ldquoMinor modificationsrdquo means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component or change the purpose of a process Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product Dollar values and percentages may be used as guideposts but are not conclusive evidence that a modification is minor
If claiming Modified Commercial Items or Components that are not of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Are the modifications made to satisfy Federal Government requirements
|_| Yes|_| NO
Do the modifications alter the nongovernmental function or essential physical characteristics of the item
|_| Yes|_| NO
If yes what are the alterations enspenspenspenspensp
Does the modified item retain a predominance of nongovernmental functions or physical characteristics
|_| Yes|_| NO
Summarize your support describing the value of the modifications in comparison to the value of the final product enspenspenspenspensp
Summarize your support for the magnitude or size of the modifications in relation to the magnitude or size of the final product enspenspenspenspensp
Are there any other factors which would allow you to conclude that the modifications are minor
|_| Yes|_| NO
If yes what are they enspenspenspenspensp
Based on the above does the modification qualify as a minor modification
|_| Yes|_| NO
Please provide data regarding the minor modification and the total price to PSEMC of Minor Modifications
Price to PSEMC of all Minor Modifications at quantities proposed in this pricing action enspenspenspenspensp
Minor modifications that exceed the thresholds in FAR 15403-1(c)(3)(iii)(B) are subject to the Certified Cost or Pricing Data requirements and must be proposed as described by FAR 15408 Table 152
|_| IV Commercial Items Support Services
Installation services maintenance services repair services training services and other services if -
(i) Such services are procured for support of an item referred to in Parts I II III or IV hereof regardless of whether such services are provided by the same source or at the same time as the item and
(ii) The source of such services provided similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government
If claiming Commercial Item Support Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services procured for the support of a commercial item which qualifies under a preceding part
|_| Yes|_| NO
Describe the nature of the services and how they support the commercial item enspenspenspenspensp
Are the services provided at the same time to the general public and the Federal Government
|_| Yes|_| NO
Are the terms and conditions for the services similar to those offered to the general public
|_| Yes|_| NO
Describe differences enspenspenspenspensp
Please provide data regarding
a Open and completed contracts including
b Pending offers including
|_| V Any Combination of Items
Meeting the requirements of Parts I II III or IV hereof that are of a type customarily combined and sold in combination to the general public
If you have checked the above box and are claiming the Any Combination of Items exemption please attach hereto information as requ3sted for Parts I II III and IV
|_| VI Other Commercial Services
Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions For purposes of these services -
(i) Catalog price means a price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor is either published or otherwise available for inspection by customers and states prices at which sales are currently or were last made to a significant number of buyers constituting the general public and
(ii) Market prices means current prices that are established in the course of ordinary trade between buyers and sellers free to bargain and that can be substantiated through competition or from source independent of the offerors
If claiming the Other Commercial Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services sold competitively in substantial quantities in the commercial marketplace
|_| Yes|_| NO
If no are the services of a type sold in substantial quantities in the commercial marketplace
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If yes what is the ldquotyperdquo of service enspenspenspenspensp
Summarize your support for same enspenspenspenspensp
Are the prices quoted for specific tasks performed or specific outcomes to be achieved
|_| Yes|_| NO
Are the services offered consistent with your standard terms and conditions
|_| Yes|_| NO
Are the services of a type sold at catalog or market prices
|_| Yes|_| NO
If sold at catalog price is the price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor
|_| Yes|_| NO
If sold at catalog price is the catalog or its equivalent either published or otherwise available for inspection by customers
|_| Yes|_| NO
Summarize your support for same (include a copy of the catalog or provide location) enspenspenspenspensp
If sold at a catalog price are the listed prices those at which sales are currently or were last made to a significant number of buyers in the general public
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If sold at a market price are the prices established in the course of ordinary trade between buyers and sellers free to bargain
|_| Yes|_| NO
Summarize you support for same enspenspenspenspensp
If sold at market price can the price be substantiated through competition or from sources independent of the offeror
|_| Yes|_| NO
Summarize your support for same
Please provide data regarding
(a) Open and completed contracts including
(b) Pending Offers including
|_| VII Any Item Combination of Items or Service
Referred to in Parts I through VI hereof notwithstanding the fact that the item combination of items or service is transferred between or among separate divisions subsidiaries or affiliates of the Offeror
If you have checked the above box and are claiming the ldquoAny item combination of items or Servicerdquo exemption please provide data regarding
|_| VIII Non-developmental Items
A non-developmental item as defined in FAR 2101 which has been developed exclusively at private expense and sold in substantial quantities on a competitive basis to multiple State and local governments
If claiming the Non-developmental Items exemption then the following must be provided
Key Inquiries and Summary of Supplierrsquos Supporting Information
Was the item previously developed
|_| Yes|_| NO
Was the item used exclusively for governmental purposes by a Federal agency a State or local government or a foreign government with which the United States has mutual defense cooperation agreement
|_| Yes|_| NO
If the item is to be modified do the modifications comply with Part III guidance on modifications
|_| Yes|_| NO
If the item is not yet in use does it otherwise qualify as a non-developmental item
|_| Yes|_| NO
Was the item developed exclusively at private expense
|_| Yes|_| NO
Is the item sold in substantial quantities on a competitive basis to multiple State and local governments
|_| Yes|_| NO
Please provide data regarding
|_| IX General Inquiries
Does the item qualify as a combination of items under Parts I II III and IV above
|_| Yes|_| NO
Has the item or services previously been determined to be commercial
|_| Yes|_| NO
If so by whom enspenspenspenspensp
|_| X Other Information
Is there other information of which you are aware that would supplement the information provided and would help substantiate whether the item or service is commercial
|_| Yes|_| NO
Have you provided such information
|_| Yes|_| NO
List such information enspenspenspenspensp
|_| XI Supplier Determination
Offeror hereby represents that the foregoing information is accurate and complete and that to the best of its knowledge information and belief goods and or services offered currently constitute ldquoa commercial itemrdquo as defined by FAR 2101
For PSEMC Internal Use Only
XII Supplier Determination
Supplier has claimed that the item component or service identified above is a commercial item under the definition at FAR 2101 I have reviewed and summarized the supplierrsquos support for that claim in the appropriate sections above Based on such review of such support information and any other information identified elsewhere herein I conclude that the supplier
|_| HAS |_| HAS NOT Supported its claim of commercial item status under the definition at FAR 2101
If the supplier HAS NOT supported its claim list reasons enspenspenspenspensp
Describe action plat to resolve enspenspenspenspensp
Comments enspenspenspenspensp
image1jpeg
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull This section of Table 15-2 describes the format an estimating approach we
are required to use when developing a proposal to modify an existingcontract In addition to the cost element breakdowns required as describedin the previous slides when there is a modification or change proposal FARalso requires the following table to be inserted into your proposal
41
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals
42FAR 15408 Table 15-2 III B
B Change Orders modifications and claims
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
Column 2 includes the cost of all work deleted This
includes cost of work deleted already performed (amount in Column 3) and
cost of work deleted not yet performed (Column 4)
Column 3 includes the cost of deleted work already
performed This amount will not be included in the credit (delete) adjustment amount (eg we will not give back costs already
incurred)
Column 4 includes cost for deleted work not yet performed ndash must be priced using current
estimates (but the current estimate may be the same as
the original estimate) ndash it is develed similar to a normal ldquoaddrdquo proposal with a few
exceptions
Column 5 includes the cost of the
new work and is developed as we do any
other proposal
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull Detail for columns listed on previous page
1 Enter appropriate cost element2 Enter current estimates of what it would take to complete the deleted work that
has not yet been performed3 Enter current cost of deleted work already performed This should be based on
actuals and copies to support these actuals should be included in the proposal4 Enter the net cost to be deleted (Column 2 minus Column 3)5 Enter your estimate for cost of work added by the change6 Enter the net cost of change (Column 5 minus Column 4)7 Identify where in your proposal the supporting documentation and basis of
estimate can be found for each of these sections
43FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull For purposes of determining if a proposal an cost or pricing data are
required from individual suppliers on a change proposal the absolute valueof the ldquodeleterdquo amount plus the ldquoaddrdquo amount is computed for each supplierthat exceeds the cost and pricing threshold (TINA)
bull Remember from FAR 15403-4(b) ndash if the absolute value for an individualsupplier exceeds the cost and pricing threshold (TINA) and the supplier iseither an actual supplier (will continue to provide partsservices on thiscontract) the supplier is required to provide a proposal and cost or pricingdata in support of the change proposal
bull Deleted amount is our current estimate (generally no the original contractvalue unless it is our current estimate)
44FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull If a supplierrsquos quantities are changing due to a modification the net delete
or add amount is used to determine if the supplier exceeds the cost andpricing threshold (TINA)
bull The estimator should not consider the old quantity as the delete and thenew quantity as the add (eg in computing absolute value) whendetermining if the supplier exceeds the threshold in cases where quantitiesare changing
bull The development of the appropriate deletion is not simply the estimatedcost of the deleted quantity ndash this will overstate the credit
45FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals Cost of WorkDeleted for a Partial Deleted Quantitybull In cases where part of a material quantity is being deleted (eg original
contract requires 100 widgets and the contract is modified to delete 30 ofthem) one method of estimating the amount of the delete is
1 Develop a current estimate of the extended cost for the item(s) given the originalquantity
2 Develop a current estimate of the extended cost for the items at the lower(remaining) quantity
3 The delta between these two values represents the amount of the delete
bull The same method can be used if the contract is modified to increase aquantity for a part
46FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklist
47
bull The Supplier Proposal Adequacy Checklist is accessed from the externalPSEMC supplier website
bull Additional supplier proposal guidance and resources are available(information templates and tools to assist in building a FAR compliantproposal
bull Supplier proposal guidance
bull Supplier Proposal Adequacy Guidelines
bull PSEMC document templates
bull Supplier proposal adequacy checklistbull Contract pricing proposal cover sheet
httpspsemccomsuppliers
- Strategic Affordability Analysis
- Purpose of this Guideline
- Table of Contents
- Table of Contents
- Supplier Proposal Adequacy Checklist
- Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
- Cover Sheet
- Cover Sheet Example ndash Reference Form DI-SUP-105F02
- Index
- Index Example
- Cost Element Breakdown by Line Item
- Cost Element Breakdown by Line Item Example
- Summary Cost Element Breakdown
- Summary Cost Element Breakdown - Example
- Summary Cost Element Breakdown - Example
- Material
- Material
- Individual Bills of Material Example
- Consolidated Bill of Material Example
- Consolidated Bill of Material
- Material
- Material
- Material
- Labor
- Labor
- Labor
- Labor Hours Example
- Labor Hours Example ndash Actual Production History
- Labor Hours Examples ndash Basis of Estimate
- Other Direct Costs (ODC)
- Nonrecurring Expenses (NRE)
- NRE
- Rates
- Rates
- Summary
- Summary
- Other Types of Proposals
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals Cost of WorkDeleted for a Partial Deleted Quantity
- Supplier Proposal Adequacy Checklist
-
| Buyer (Type or Print Name) | Date |
| Offeror | |||
| By | |||
| Title | |||
| Date |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp | ||
| (iii) Total number of customers involved in such sales | enspenspenspenspensp |
| (a) Transfer price(s) of such goods | $ enspenspenspenspensp | ||
| (b) Total units of such goods and or | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| Unmodified Items Identified in Part 1 | Modified Items Proposed to PSMEC | Unit Value of Modification | |||||||
| Unmodified Item | Unmodified Price | Modified Item | Modified Price to PSEMC | ||||||
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| To the general public in the time-frame beginning | enspenspenspenspensp | enspenspenspenspensp | and ending | enspenspenspenspensp |
| (a) Sales | |||||
| (b) Leases | |||||
| (c) Licenses | |||||
| (d) Offers to Sell 1 | |||||
| (e) Offers to Lease 2 | |||||
| (f) Offers to License 3 |
| Part Number | |||
| Description | |||
| Offeror |
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Rates include direct labor overhead general and administrative expenses
(GampA) and cost of money (COM)
bull PSEMC has the capability to perform rate audits on suppliers in lieu ofhaving the DCAA do this
bull If you allow PSEMC to perform this rate audit you need to provide thefollowing information
bull Explanation as to how the rates were calculatedbull Detailed documentation (financial statements labor pools listing of unallowable
expenses etc) that support the rate calculationsbull If the detailed documentation is based on budgetary numbers you will also need
to provide three years of your most current actuals to support you budgetarynumbers
bull If budgetary numbers differ significantly from the most recent actuals providedetailed explanations for these differences
33FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Facilities Capital COM
bull When you elect to claim COM submit a completed form CASB-CFM (FacilitiesCapital Cost of Money Factors Computation) in accordance with FAR 31205-10Also complete DD Form 1861 and include a copy in your proposal submissionBoth forms can be found on-line at various locations
34FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull In summary all noncompetitive noncommercial proposals valued at more
than the cost and pricing threshold (TINA) are required to include thefollowing information
35
Required Items Page FAR Reference
Supplier Proposal Adequacy Checklist Pg 5-6 PSEMC Policy
Cover Sheet - SF1411 or equivalent Pg 7-8 FAR 15408 Table 15-2 I A
Index Pg 9-10 FAR 15408 Table 15-2 I B
Cost Element Breakdown Pg 11-12 FAR 15408 Table 15-2 I D
Summary Cost Element Breakdown Pg 13-15 FAR 15408 Table 15-2 I E
Material (Including Consolidated BOM) Pg 16-23 FAR 15408 Table 15-2 II A
Labor Pg 24-29 FAR 15408 Table 15-2 II B
ODC Pg 30 FAR 15408 Table 15-2 II D
NRE Pg 31-32 FAR 15408 Table 15-2 II
Rates Pg 33-34 FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull Sufficient rationale and supporting documentation to support each of the
proposed cost elements is also required
bull Obtaining adequate supplier proposals is always on the critical path sincePSEMC cannot submit its proposal to the government until it has receivedadequate proposals from its subcontractors Therefore it is critical thatadequate supplier proposals are obtained as quickly as possible
36
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Types of Proposalsbull Commercial item proposals
bull Change proposals
bull The following slides are only applicable in certain situations
37
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you or one of your suppliers is providing a commercial part cost or pricing
data and a cost analysis is not required However you must demonstrate that the part is commercial and that the price is reasonable
bull A commercial item is any item other than real property that is a type customarily used by the general public or by a nongovernment entity
bull Has also been sold leased or licensed to the general public or has been offered for sale lease or license to the general public
bull A final commercial determination is made by the government contracting officer If the items is deemed to not be commercial the supplier is required to submit a complete proposal that includes cost and pricing data
38FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you claim one or more of your parts are commercial you need to support
your position by providing the following information
bull Copies of applicable portions of a company catalogue or website address that shows the item with a description and unit price
bull Show that these items can be purchased by the general public or nongovernmentalagency
bull If a website or catalogue is not available copies of invoices showing the sale of these items to nongovernment entities is sufficient
39FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull PSEMC policy requires suppliers to complete a PSEMC Supplier Proposal
Adequacy Checklist (sent with the RFP) for all proposals where the supplierclaims its parts are commercial
bull An example of the Supplier Proposal Adequacy Checklist for commercialitems is attached reference form DI-SUP-310F01
40PSEMC Policy
Pacific Scientific EMC ndash Commercial Item Status
If claiming an exemption offeror must provide the appropriate information to determine commerciality Refusal to provide the required information can result in an assist audit being requested from the Defense Contract Audit Agency or other cognizant Government Audit Agencies and or a determination that goods andor services offered do not constitute a ldquocommercial itemrdquo
Offeror hereby represents that to the best of its knowledge information and belief goods andor services offered constitute a ldquocommercial itemrdquo as defined by FAR 2101 because it constitutes
A Commercial Item or Component Justification (required for any claim)
Key Inquiries and Summary of your Supporting Information
What is the relevant ldquotyperdquo of item enspenspenspenspensp
What are the types of items uses by the general public or by non-governmental entities for other than governmental purposes enspenspenspenspensp
What indicates the type of itemrsquos use described above is customary enspenspenspenspensp
Has the offered item itself (as opposed to the type of item) been sold or offered for sale
|_| Yes|_| NO
Are the offered itemrsquos sales (or offers to sale) to the general public
|_| Yes|_| NO
Please provide data regarding sales leases or licenses of this item and identification of the non-government use entities
ValueNon-Government Use Entities
(date)(date)
In addition as an appendix to this commercial item determination provide supporting documentation in the form of
1that have not materialized into sales
2that have not materialized into leases
3that have not materialized into licenses
1 Verification of sales history to source documents
2 Identification of customarily offered discounts for the item
3 Verification of the item to an existing catalog or price list and
4 Verification of historical data for an item previously not determined commercial that the offeror is now trying to qualify as a commercial item
(check box(es) as appropriate)
|_| I Unmodified Commercial Items or Components (Complete Section A)
Any item other than real property that is a of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes and
(i) Has been sold leased or licensed to the general public or
(ii) Has been offered for sale lease or license to the general public
|_| II Item Evolved from Commercial Items or Components
Any item that evolved from an item described in Part I (which is required if claiming this exemption) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace but will be available in the commercial marketplace in time to satisfy the delivery requirements under a United States Government solicitation
If claiming the item Evolved from Commercial Items or Components exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use Part I)
|_| Yes|_| NO
If yes describe the relationship of the modifications to the Federal Government requirement enspenspenspenspensp
What are the advances in technology or performance between the offered item and the commercial item on which it is based enspenspenspenspensp
What is your support for such advances enspenspenspenspensp
What is your support for availability of the item in time to meet requirements Is the claim availability reasonable enspenspenspenspensp
Please provide data regarding
(a) Currently pending offers including
(b) Planned Offers Including
In all instances scheduled for delivery no later than the delivery requirements under the
(c) Data in the format of Part I for completed sales of the item from which the ldquocommercial itemrdquo evolved
|_| III Modified Commercial Items or Components
Any item that would satisfy a criterion expressed in Part I or II hereof but for -
|_| (i) Modifications of a type customarily available in the commercial marketplace
If claiming Modified Commercial Item or Components that are of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use part I or parts II and II)
|_| Yes|_| NO
What are the modifications that would be made to the commercial item enspenspenspenspensp
Are the modifications of a type customarily available in the commercial marketplace
|_| Yes|_| NO
Summarize your support for customary availability of the modification in the commercial marketplace enspenspenspenspensp
|_| (ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet federal government requirements ldquoMinor modificationsrdquo means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component or change the purpose of a process Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product Dollar values and percentages may be used as guideposts but are not conclusive evidence that a modification is minor
If claiming Modified Commercial Items or Components that are not of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Are the modifications made to satisfy Federal Government requirements
|_| Yes|_| NO
Do the modifications alter the nongovernmental function or essential physical characteristics of the item
|_| Yes|_| NO
If yes what are the alterations enspenspenspenspensp
Does the modified item retain a predominance of nongovernmental functions or physical characteristics
|_| Yes|_| NO
Summarize your support describing the value of the modifications in comparison to the value of the final product enspenspenspenspensp
Summarize your support for the magnitude or size of the modifications in relation to the magnitude or size of the final product enspenspenspenspensp
Are there any other factors which would allow you to conclude that the modifications are minor
|_| Yes|_| NO
If yes what are they enspenspenspenspensp
Based on the above does the modification qualify as a minor modification
|_| Yes|_| NO
Please provide data regarding the minor modification and the total price to PSEMC of Minor Modifications
Price to PSEMC of all Minor Modifications at quantities proposed in this pricing action enspenspenspenspensp
Minor modifications that exceed the thresholds in FAR 15403-1(c)(3)(iii)(B) are subject to the Certified Cost or Pricing Data requirements and must be proposed as described by FAR 15408 Table 152
|_| IV Commercial Items Support Services
Installation services maintenance services repair services training services and other services if -
(i) Such services are procured for support of an item referred to in Parts I II III or IV hereof regardless of whether such services are provided by the same source or at the same time as the item and
(ii) The source of such services provided similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government
If claiming Commercial Item Support Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services procured for the support of a commercial item which qualifies under a preceding part
|_| Yes|_| NO
Describe the nature of the services and how they support the commercial item enspenspenspenspensp
Are the services provided at the same time to the general public and the Federal Government
|_| Yes|_| NO
Are the terms and conditions for the services similar to those offered to the general public
|_| Yes|_| NO
Describe differences enspenspenspenspensp
Please provide data regarding
a Open and completed contracts including
b Pending offers including
|_| V Any Combination of Items
Meeting the requirements of Parts I II III or IV hereof that are of a type customarily combined and sold in combination to the general public
If you have checked the above box and are claiming the Any Combination of Items exemption please attach hereto information as requ3sted for Parts I II III and IV
|_| VI Other Commercial Services
Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions For purposes of these services -
(i) Catalog price means a price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor is either published or otherwise available for inspection by customers and states prices at which sales are currently or were last made to a significant number of buyers constituting the general public and
(ii) Market prices means current prices that are established in the course of ordinary trade between buyers and sellers free to bargain and that can be substantiated through competition or from source independent of the offerors
If claiming the Other Commercial Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services sold competitively in substantial quantities in the commercial marketplace
|_| Yes|_| NO
If no are the services of a type sold in substantial quantities in the commercial marketplace
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If yes what is the ldquotyperdquo of service enspenspenspenspensp
Summarize your support for same enspenspenspenspensp
Are the prices quoted for specific tasks performed or specific outcomes to be achieved
|_| Yes|_| NO
Are the services offered consistent with your standard terms and conditions
|_| Yes|_| NO
Are the services of a type sold at catalog or market prices
|_| Yes|_| NO
If sold at catalog price is the price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor
|_| Yes|_| NO
If sold at catalog price is the catalog or its equivalent either published or otherwise available for inspection by customers
|_| Yes|_| NO
Summarize your support for same (include a copy of the catalog or provide location) enspenspenspenspensp
If sold at a catalog price are the listed prices those at which sales are currently or were last made to a significant number of buyers in the general public
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If sold at a market price are the prices established in the course of ordinary trade between buyers and sellers free to bargain
|_| Yes|_| NO
Summarize you support for same enspenspenspenspensp
If sold at market price can the price be substantiated through competition or from sources independent of the offeror
|_| Yes|_| NO
Summarize your support for same
Please provide data regarding
(a) Open and completed contracts including
(b) Pending Offers including
|_| VII Any Item Combination of Items or Service
Referred to in Parts I through VI hereof notwithstanding the fact that the item combination of items or service is transferred between or among separate divisions subsidiaries or affiliates of the Offeror
If you have checked the above box and are claiming the ldquoAny item combination of items or Servicerdquo exemption please provide data regarding
|_| VIII Non-developmental Items
A non-developmental item as defined in FAR 2101 which has been developed exclusively at private expense and sold in substantial quantities on a competitive basis to multiple State and local governments
If claiming the Non-developmental Items exemption then the following must be provided
Key Inquiries and Summary of Supplierrsquos Supporting Information
Was the item previously developed
|_| Yes|_| NO
Was the item used exclusively for governmental purposes by a Federal agency a State or local government or a foreign government with which the United States has mutual defense cooperation agreement
|_| Yes|_| NO
If the item is to be modified do the modifications comply with Part III guidance on modifications
|_| Yes|_| NO
If the item is not yet in use does it otherwise qualify as a non-developmental item
|_| Yes|_| NO
Was the item developed exclusively at private expense
|_| Yes|_| NO
Is the item sold in substantial quantities on a competitive basis to multiple State and local governments
|_| Yes|_| NO
Please provide data regarding
|_| IX General Inquiries
Does the item qualify as a combination of items under Parts I II III and IV above
|_| Yes|_| NO
Has the item or services previously been determined to be commercial
|_| Yes|_| NO
If so by whom enspenspenspenspensp
|_| X Other Information
Is there other information of which you are aware that would supplement the information provided and would help substantiate whether the item or service is commercial
|_| Yes|_| NO
Have you provided such information
|_| Yes|_| NO
List such information enspenspenspenspensp
|_| XI Supplier Determination
Offeror hereby represents that the foregoing information is accurate and complete and that to the best of its knowledge information and belief goods and or services offered currently constitute ldquoa commercial itemrdquo as defined by FAR 2101
For PSEMC Internal Use Only
XII Supplier Determination
Supplier has claimed that the item component or service identified above is a commercial item under the definition at FAR 2101 I have reviewed and summarized the supplierrsquos support for that claim in the appropriate sections above Based on such review of such support information and any other information identified elsewhere herein I conclude that the supplier
|_| HAS |_| HAS NOT Supported its claim of commercial item status under the definition at FAR 2101
If the supplier HAS NOT supported its claim list reasons enspenspenspenspensp
Describe action plat to resolve enspenspenspenspensp
Comments enspenspenspenspensp
image1jpeg
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull This section of Table 15-2 describes the format an estimating approach we
are required to use when developing a proposal to modify an existingcontract In addition to the cost element breakdowns required as describedin the previous slides when there is a modification or change proposal FARalso requires the following table to be inserted into your proposal
41
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals
42FAR 15408 Table 15-2 III B
B Change Orders modifications and claims
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
Column 2 includes the cost of all work deleted This
includes cost of work deleted already performed (amount in Column 3) and
cost of work deleted not yet performed (Column 4)
Column 3 includes the cost of deleted work already
performed This amount will not be included in the credit (delete) adjustment amount (eg we will not give back costs already
incurred)
Column 4 includes cost for deleted work not yet performed ndash must be priced using current
estimates (but the current estimate may be the same as
the original estimate) ndash it is develed similar to a normal ldquoaddrdquo proposal with a few
exceptions
Column 5 includes the cost of the
new work and is developed as we do any
other proposal
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull Detail for columns listed on previous page
1 Enter appropriate cost element2 Enter current estimates of what it would take to complete the deleted work that
has not yet been performed3 Enter current cost of deleted work already performed This should be based on
actuals and copies to support these actuals should be included in the proposal4 Enter the net cost to be deleted (Column 2 minus Column 3)5 Enter your estimate for cost of work added by the change6 Enter the net cost of change (Column 5 minus Column 4)7 Identify where in your proposal the supporting documentation and basis of
estimate can be found for each of these sections
43FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull For purposes of determining if a proposal an cost or pricing data are
required from individual suppliers on a change proposal the absolute valueof the ldquodeleterdquo amount plus the ldquoaddrdquo amount is computed for each supplierthat exceeds the cost and pricing threshold (TINA)
bull Remember from FAR 15403-4(b) ndash if the absolute value for an individualsupplier exceeds the cost and pricing threshold (TINA) and the supplier iseither an actual supplier (will continue to provide partsservices on thiscontract) the supplier is required to provide a proposal and cost or pricingdata in support of the change proposal
bull Deleted amount is our current estimate (generally no the original contractvalue unless it is our current estimate)
44FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull If a supplierrsquos quantities are changing due to a modification the net delete
or add amount is used to determine if the supplier exceeds the cost andpricing threshold (TINA)
bull The estimator should not consider the old quantity as the delete and thenew quantity as the add (eg in computing absolute value) whendetermining if the supplier exceeds the threshold in cases where quantitiesare changing
bull The development of the appropriate deletion is not simply the estimatedcost of the deleted quantity ndash this will overstate the credit
45FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals Cost of WorkDeleted for a Partial Deleted Quantitybull In cases where part of a material quantity is being deleted (eg original
contract requires 100 widgets and the contract is modified to delete 30 ofthem) one method of estimating the amount of the delete is
1 Develop a current estimate of the extended cost for the item(s) given the originalquantity
2 Develop a current estimate of the extended cost for the items at the lower(remaining) quantity
3 The delta between these two values represents the amount of the delete
bull The same method can be used if the contract is modified to increase aquantity for a part
46FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklist
47
bull The Supplier Proposal Adequacy Checklist is accessed from the externalPSEMC supplier website
bull Additional supplier proposal guidance and resources are available(information templates and tools to assist in building a FAR compliantproposal
bull Supplier proposal guidance
bull Supplier Proposal Adequacy Guidelines
bull PSEMC document templates
bull Supplier proposal adequacy checklistbull Contract pricing proposal cover sheet
httpspsemccomsuppliers
- Strategic Affordability Analysis
- Purpose of this Guideline
- Table of Contents
- Table of Contents
- Supplier Proposal Adequacy Checklist
- Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
- Cover Sheet
- Cover Sheet Example ndash Reference Form DI-SUP-105F02
- Index
- Index Example
- Cost Element Breakdown by Line Item
- Cost Element Breakdown by Line Item Example
- Summary Cost Element Breakdown
- Summary Cost Element Breakdown - Example
- Summary Cost Element Breakdown - Example
- Material
- Material
- Individual Bills of Material Example
- Consolidated Bill of Material Example
- Consolidated Bill of Material
- Material
- Material
- Material
- Labor
- Labor
- Labor
- Labor Hours Example
- Labor Hours Example ndash Actual Production History
- Labor Hours Examples ndash Basis of Estimate
- Other Direct Costs (ODC)
- Nonrecurring Expenses (NRE)
- NRE
- Rates
- Rates
- Summary
- Summary
- Other Types of Proposals
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals Cost of WorkDeleted for a Partial Deleted Quantity
- Supplier Proposal Adequacy Checklist
-
| Buyer (Type or Print Name) | Date |
| Offeror | |||
| By | |||
| Title | |||
| Date |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp | ||
| (iii) Total number of customers involved in such sales | enspenspenspenspensp |
| (a) Transfer price(s) of such goods | $ enspenspenspenspensp | ||
| (b) Total units of such goods and or | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| Unmodified Items Identified in Part 1 | Modified Items Proposed to PSMEC | Unit Value of Modification | |||||||
| Unmodified Item | Unmodified Price | Modified Item | Modified Price to PSEMC | ||||||
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| To the general public in the time-frame beginning | enspenspenspenspensp | enspenspenspenspensp | and ending | enspenspenspenspensp |
| (a) Sales | |||||
| (b) Leases | |||||
| (c) Licenses | |||||
| (d) Offers to Sell 1 | |||||
| (e) Offers to Lease 2 | |||||
| (f) Offers to License 3 |
| Part Number | |||
| Description | |||
| Offeror |
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Ratesbull Facilities Capital COM
bull When you elect to claim COM submit a completed form CASB-CFM (FacilitiesCapital Cost of Money Factors Computation) in accordance with FAR 31205-10Also complete DD Form 1861 and include a copy in your proposal submissionBoth forms can be found on-line at various locations
34FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull In summary all noncompetitive noncommercial proposals valued at more
than the cost and pricing threshold (TINA) are required to include thefollowing information
35
Required Items Page FAR Reference
Supplier Proposal Adequacy Checklist Pg 5-6 PSEMC Policy
Cover Sheet - SF1411 or equivalent Pg 7-8 FAR 15408 Table 15-2 I A
Index Pg 9-10 FAR 15408 Table 15-2 I B
Cost Element Breakdown Pg 11-12 FAR 15408 Table 15-2 I D
Summary Cost Element Breakdown Pg 13-15 FAR 15408 Table 15-2 I E
Material (Including Consolidated BOM) Pg 16-23 FAR 15408 Table 15-2 II A
Labor Pg 24-29 FAR 15408 Table 15-2 II B
ODC Pg 30 FAR 15408 Table 15-2 II D
NRE Pg 31-32 FAR 15408 Table 15-2 II
Rates Pg 33-34 FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull Sufficient rationale and supporting documentation to support each of the
proposed cost elements is also required
bull Obtaining adequate supplier proposals is always on the critical path sincePSEMC cannot submit its proposal to the government until it has receivedadequate proposals from its subcontractors Therefore it is critical thatadequate supplier proposals are obtained as quickly as possible
36
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Types of Proposalsbull Commercial item proposals
bull Change proposals
bull The following slides are only applicable in certain situations
37
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you or one of your suppliers is providing a commercial part cost or pricing
data and a cost analysis is not required However you must demonstrate that the part is commercial and that the price is reasonable
bull A commercial item is any item other than real property that is a type customarily used by the general public or by a nongovernment entity
bull Has also been sold leased or licensed to the general public or has been offered for sale lease or license to the general public
bull A final commercial determination is made by the government contracting officer If the items is deemed to not be commercial the supplier is required to submit a complete proposal that includes cost and pricing data
38FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you claim one or more of your parts are commercial you need to support
your position by providing the following information
bull Copies of applicable portions of a company catalogue or website address that shows the item with a description and unit price
bull Show that these items can be purchased by the general public or nongovernmentalagency
bull If a website or catalogue is not available copies of invoices showing the sale of these items to nongovernment entities is sufficient
39FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull PSEMC policy requires suppliers to complete a PSEMC Supplier Proposal
Adequacy Checklist (sent with the RFP) for all proposals where the supplierclaims its parts are commercial
bull An example of the Supplier Proposal Adequacy Checklist for commercialitems is attached reference form DI-SUP-310F01
40PSEMC Policy
Pacific Scientific EMC ndash Commercial Item Status
If claiming an exemption offeror must provide the appropriate information to determine commerciality Refusal to provide the required information can result in an assist audit being requested from the Defense Contract Audit Agency or other cognizant Government Audit Agencies and or a determination that goods andor services offered do not constitute a ldquocommercial itemrdquo
Offeror hereby represents that to the best of its knowledge information and belief goods andor services offered constitute a ldquocommercial itemrdquo as defined by FAR 2101 because it constitutes
A Commercial Item or Component Justification (required for any claim)
Key Inquiries and Summary of your Supporting Information
What is the relevant ldquotyperdquo of item enspenspenspenspensp
What are the types of items uses by the general public or by non-governmental entities for other than governmental purposes enspenspenspenspensp
What indicates the type of itemrsquos use described above is customary enspenspenspenspensp
Has the offered item itself (as opposed to the type of item) been sold or offered for sale
|_| Yes|_| NO
Are the offered itemrsquos sales (or offers to sale) to the general public
|_| Yes|_| NO
Please provide data regarding sales leases or licenses of this item and identification of the non-government use entities
ValueNon-Government Use Entities
(date)(date)
In addition as an appendix to this commercial item determination provide supporting documentation in the form of
1that have not materialized into sales
2that have not materialized into leases
3that have not materialized into licenses
1 Verification of sales history to source documents
2 Identification of customarily offered discounts for the item
3 Verification of the item to an existing catalog or price list and
4 Verification of historical data for an item previously not determined commercial that the offeror is now trying to qualify as a commercial item
(check box(es) as appropriate)
|_| I Unmodified Commercial Items or Components (Complete Section A)
Any item other than real property that is a of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes and
(i) Has been sold leased or licensed to the general public or
(ii) Has been offered for sale lease or license to the general public
|_| II Item Evolved from Commercial Items or Components
Any item that evolved from an item described in Part I (which is required if claiming this exemption) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace but will be available in the commercial marketplace in time to satisfy the delivery requirements under a United States Government solicitation
If claiming the item Evolved from Commercial Items or Components exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use Part I)
|_| Yes|_| NO
If yes describe the relationship of the modifications to the Federal Government requirement enspenspenspenspensp
What are the advances in technology or performance between the offered item and the commercial item on which it is based enspenspenspenspensp
What is your support for such advances enspenspenspenspensp
What is your support for availability of the item in time to meet requirements Is the claim availability reasonable enspenspenspenspensp
Please provide data regarding
(a) Currently pending offers including
(b) Planned Offers Including
In all instances scheduled for delivery no later than the delivery requirements under the
(c) Data in the format of Part I for completed sales of the item from which the ldquocommercial itemrdquo evolved
|_| III Modified Commercial Items or Components
Any item that would satisfy a criterion expressed in Part I or II hereof but for -
|_| (i) Modifications of a type customarily available in the commercial marketplace
If claiming Modified Commercial Item or Components that are of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use part I or parts II and II)
|_| Yes|_| NO
What are the modifications that would be made to the commercial item enspenspenspenspensp
Are the modifications of a type customarily available in the commercial marketplace
|_| Yes|_| NO
Summarize your support for customary availability of the modification in the commercial marketplace enspenspenspenspensp
|_| (ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet federal government requirements ldquoMinor modificationsrdquo means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component or change the purpose of a process Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product Dollar values and percentages may be used as guideposts but are not conclusive evidence that a modification is minor
If claiming Modified Commercial Items or Components that are not of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Are the modifications made to satisfy Federal Government requirements
|_| Yes|_| NO
Do the modifications alter the nongovernmental function or essential physical characteristics of the item
|_| Yes|_| NO
If yes what are the alterations enspenspenspenspensp
Does the modified item retain a predominance of nongovernmental functions or physical characteristics
|_| Yes|_| NO
Summarize your support describing the value of the modifications in comparison to the value of the final product enspenspenspenspensp
Summarize your support for the magnitude or size of the modifications in relation to the magnitude or size of the final product enspenspenspenspensp
Are there any other factors which would allow you to conclude that the modifications are minor
|_| Yes|_| NO
If yes what are they enspenspenspenspensp
Based on the above does the modification qualify as a minor modification
|_| Yes|_| NO
Please provide data regarding the minor modification and the total price to PSEMC of Minor Modifications
Price to PSEMC of all Minor Modifications at quantities proposed in this pricing action enspenspenspenspensp
Minor modifications that exceed the thresholds in FAR 15403-1(c)(3)(iii)(B) are subject to the Certified Cost or Pricing Data requirements and must be proposed as described by FAR 15408 Table 152
|_| IV Commercial Items Support Services
Installation services maintenance services repair services training services and other services if -
(i) Such services are procured for support of an item referred to in Parts I II III or IV hereof regardless of whether such services are provided by the same source or at the same time as the item and
(ii) The source of such services provided similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government
If claiming Commercial Item Support Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services procured for the support of a commercial item which qualifies under a preceding part
|_| Yes|_| NO
Describe the nature of the services and how they support the commercial item enspenspenspenspensp
Are the services provided at the same time to the general public and the Federal Government
|_| Yes|_| NO
Are the terms and conditions for the services similar to those offered to the general public
|_| Yes|_| NO
Describe differences enspenspenspenspensp
Please provide data regarding
a Open and completed contracts including
b Pending offers including
|_| V Any Combination of Items
Meeting the requirements of Parts I II III or IV hereof that are of a type customarily combined and sold in combination to the general public
If you have checked the above box and are claiming the Any Combination of Items exemption please attach hereto information as requ3sted for Parts I II III and IV
|_| VI Other Commercial Services
Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions For purposes of these services -
(i) Catalog price means a price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor is either published or otherwise available for inspection by customers and states prices at which sales are currently or were last made to a significant number of buyers constituting the general public and
(ii) Market prices means current prices that are established in the course of ordinary trade between buyers and sellers free to bargain and that can be substantiated through competition or from source independent of the offerors
If claiming the Other Commercial Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services sold competitively in substantial quantities in the commercial marketplace
|_| Yes|_| NO
If no are the services of a type sold in substantial quantities in the commercial marketplace
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If yes what is the ldquotyperdquo of service enspenspenspenspensp
Summarize your support for same enspenspenspenspensp
Are the prices quoted for specific tasks performed or specific outcomes to be achieved
|_| Yes|_| NO
Are the services offered consistent with your standard terms and conditions
|_| Yes|_| NO
Are the services of a type sold at catalog or market prices
|_| Yes|_| NO
If sold at catalog price is the price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor
|_| Yes|_| NO
If sold at catalog price is the catalog or its equivalent either published or otherwise available for inspection by customers
|_| Yes|_| NO
Summarize your support for same (include a copy of the catalog or provide location) enspenspenspenspensp
If sold at a catalog price are the listed prices those at which sales are currently or were last made to a significant number of buyers in the general public
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If sold at a market price are the prices established in the course of ordinary trade between buyers and sellers free to bargain
|_| Yes|_| NO
Summarize you support for same enspenspenspenspensp
If sold at market price can the price be substantiated through competition or from sources independent of the offeror
|_| Yes|_| NO
Summarize your support for same
Please provide data regarding
(a) Open and completed contracts including
(b) Pending Offers including
|_| VII Any Item Combination of Items or Service
Referred to in Parts I through VI hereof notwithstanding the fact that the item combination of items or service is transferred between or among separate divisions subsidiaries or affiliates of the Offeror
If you have checked the above box and are claiming the ldquoAny item combination of items or Servicerdquo exemption please provide data regarding
|_| VIII Non-developmental Items
A non-developmental item as defined in FAR 2101 which has been developed exclusively at private expense and sold in substantial quantities on a competitive basis to multiple State and local governments
If claiming the Non-developmental Items exemption then the following must be provided
Key Inquiries and Summary of Supplierrsquos Supporting Information
Was the item previously developed
|_| Yes|_| NO
Was the item used exclusively for governmental purposes by a Federal agency a State or local government or a foreign government with which the United States has mutual defense cooperation agreement
|_| Yes|_| NO
If the item is to be modified do the modifications comply with Part III guidance on modifications
|_| Yes|_| NO
If the item is not yet in use does it otherwise qualify as a non-developmental item
|_| Yes|_| NO
Was the item developed exclusively at private expense
|_| Yes|_| NO
Is the item sold in substantial quantities on a competitive basis to multiple State and local governments
|_| Yes|_| NO
Please provide data regarding
|_| IX General Inquiries
Does the item qualify as a combination of items under Parts I II III and IV above
|_| Yes|_| NO
Has the item or services previously been determined to be commercial
|_| Yes|_| NO
If so by whom enspenspenspenspensp
|_| X Other Information
Is there other information of which you are aware that would supplement the information provided and would help substantiate whether the item or service is commercial
|_| Yes|_| NO
Have you provided such information
|_| Yes|_| NO
List such information enspenspenspenspensp
|_| XI Supplier Determination
Offeror hereby represents that the foregoing information is accurate and complete and that to the best of its knowledge information and belief goods and or services offered currently constitute ldquoa commercial itemrdquo as defined by FAR 2101
For PSEMC Internal Use Only
XII Supplier Determination
Supplier has claimed that the item component or service identified above is a commercial item under the definition at FAR 2101 I have reviewed and summarized the supplierrsquos support for that claim in the appropriate sections above Based on such review of such support information and any other information identified elsewhere herein I conclude that the supplier
|_| HAS |_| HAS NOT Supported its claim of commercial item status under the definition at FAR 2101
If the supplier HAS NOT supported its claim list reasons enspenspenspenspensp
Describe action plat to resolve enspenspenspenspensp
Comments enspenspenspenspensp
image1jpeg
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull This section of Table 15-2 describes the format an estimating approach we
are required to use when developing a proposal to modify an existingcontract In addition to the cost element breakdowns required as describedin the previous slides when there is a modification or change proposal FARalso requires the following table to be inserted into your proposal
41
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals
42FAR 15408 Table 15-2 III B
B Change Orders modifications and claims
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
Column 2 includes the cost of all work deleted This
includes cost of work deleted already performed (amount in Column 3) and
cost of work deleted not yet performed (Column 4)
Column 3 includes the cost of deleted work already
performed This amount will not be included in the credit (delete) adjustment amount (eg we will not give back costs already
incurred)
Column 4 includes cost for deleted work not yet performed ndash must be priced using current
estimates (but the current estimate may be the same as
the original estimate) ndash it is develed similar to a normal ldquoaddrdquo proposal with a few
exceptions
Column 5 includes the cost of the
new work and is developed as we do any
other proposal
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull Detail for columns listed on previous page
1 Enter appropriate cost element2 Enter current estimates of what it would take to complete the deleted work that
has not yet been performed3 Enter current cost of deleted work already performed This should be based on
actuals and copies to support these actuals should be included in the proposal4 Enter the net cost to be deleted (Column 2 minus Column 3)5 Enter your estimate for cost of work added by the change6 Enter the net cost of change (Column 5 minus Column 4)7 Identify where in your proposal the supporting documentation and basis of
estimate can be found for each of these sections
43FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull For purposes of determining if a proposal an cost or pricing data are
required from individual suppliers on a change proposal the absolute valueof the ldquodeleterdquo amount plus the ldquoaddrdquo amount is computed for each supplierthat exceeds the cost and pricing threshold (TINA)
bull Remember from FAR 15403-4(b) ndash if the absolute value for an individualsupplier exceeds the cost and pricing threshold (TINA) and the supplier iseither an actual supplier (will continue to provide partsservices on thiscontract) the supplier is required to provide a proposal and cost or pricingdata in support of the change proposal
bull Deleted amount is our current estimate (generally no the original contractvalue unless it is our current estimate)
44FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull If a supplierrsquos quantities are changing due to a modification the net delete
or add amount is used to determine if the supplier exceeds the cost andpricing threshold (TINA)
bull The estimator should not consider the old quantity as the delete and thenew quantity as the add (eg in computing absolute value) whendetermining if the supplier exceeds the threshold in cases where quantitiesare changing
bull The development of the appropriate deletion is not simply the estimatedcost of the deleted quantity ndash this will overstate the credit
45FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals Cost of WorkDeleted for a Partial Deleted Quantitybull In cases where part of a material quantity is being deleted (eg original
contract requires 100 widgets and the contract is modified to delete 30 ofthem) one method of estimating the amount of the delete is
1 Develop a current estimate of the extended cost for the item(s) given the originalquantity
2 Develop a current estimate of the extended cost for the items at the lower(remaining) quantity
3 The delta between these two values represents the amount of the delete
bull The same method can be used if the contract is modified to increase aquantity for a part
46FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklist
47
bull The Supplier Proposal Adequacy Checklist is accessed from the externalPSEMC supplier website
bull Additional supplier proposal guidance and resources are available(information templates and tools to assist in building a FAR compliantproposal
bull Supplier proposal guidance
bull Supplier Proposal Adequacy Guidelines
bull PSEMC document templates
bull Supplier proposal adequacy checklistbull Contract pricing proposal cover sheet
httpspsemccomsuppliers
- Strategic Affordability Analysis
- Purpose of this Guideline
- Table of Contents
- Table of Contents
- Supplier Proposal Adequacy Checklist
- Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
- Cover Sheet
- Cover Sheet Example ndash Reference Form DI-SUP-105F02
- Index
- Index Example
- Cost Element Breakdown by Line Item
- Cost Element Breakdown by Line Item Example
- Summary Cost Element Breakdown
- Summary Cost Element Breakdown - Example
- Summary Cost Element Breakdown - Example
- Material
- Material
- Individual Bills of Material Example
- Consolidated Bill of Material Example
- Consolidated Bill of Material
- Material
- Material
- Material
- Labor
- Labor
- Labor
- Labor Hours Example
- Labor Hours Example ndash Actual Production History
- Labor Hours Examples ndash Basis of Estimate
- Other Direct Costs (ODC)
- Nonrecurring Expenses (NRE)
- NRE
- Rates
- Rates
- Summary
- Summary
- Other Types of Proposals
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals Cost of WorkDeleted for a Partial Deleted Quantity
- Supplier Proposal Adequacy Checklist
-
| Buyer (Type or Print Name) | Date |
| Offeror | |||
| By | |||
| Title | |||
| Date |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp | ||
| (iii) Total number of customers involved in such sales | enspenspenspenspensp |
| (a) Transfer price(s) of such goods | $ enspenspenspenspensp | ||
| (b) Total units of such goods and or | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| Unmodified Items Identified in Part 1 | Modified Items Proposed to PSMEC | Unit Value of Modification | |||||||
| Unmodified Item | Unmodified Price | Modified Item | Modified Price to PSEMC | ||||||
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| To the general public in the time-frame beginning | enspenspenspenspensp | enspenspenspenspensp | and ending | enspenspenspenspensp |
| (a) Sales | |||||
| (b) Leases | |||||
| (c) Licenses | |||||
| (d) Offers to Sell 1 | |||||
| (e) Offers to Lease 2 | |||||
| (f) Offers to License 3 |
| Part Number | |||
| Description | |||
| Offeror |
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull In summary all noncompetitive noncommercial proposals valued at more
than the cost and pricing threshold (TINA) are required to include thefollowing information
35
Required Items Page FAR Reference
Supplier Proposal Adequacy Checklist Pg 5-6 PSEMC Policy
Cover Sheet - SF1411 or equivalent Pg 7-8 FAR 15408 Table 15-2 I A
Index Pg 9-10 FAR 15408 Table 15-2 I B
Cost Element Breakdown Pg 11-12 FAR 15408 Table 15-2 I D
Summary Cost Element Breakdown Pg 13-15 FAR 15408 Table 15-2 I E
Material (Including Consolidated BOM) Pg 16-23 FAR 15408 Table 15-2 II A
Labor Pg 24-29 FAR 15408 Table 15-2 II B
ODC Pg 30 FAR 15408 Table 15-2 II D
NRE Pg 31-32 FAR 15408 Table 15-2 II
Rates Pg 33-34 FAR 15408 Table 15-2 II C
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull Sufficient rationale and supporting documentation to support each of the
proposed cost elements is also required
bull Obtaining adequate supplier proposals is always on the critical path sincePSEMC cannot submit its proposal to the government until it has receivedadequate proposals from its subcontractors Therefore it is critical thatadequate supplier proposals are obtained as quickly as possible
36
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Types of Proposalsbull Commercial item proposals
bull Change proposals
bull The following slides are only applicable in certain situations
37
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you or one of your suppliers is providing a commercial part cost or pricing
data and a cost analysis is not required However you must demonstrate that the part is commercial and that the price is reasonable
bull A commercial item is any item other than real property that is a type customarily used by the general public or by a nongovernment entity
bull Has also been sold leased or licensed to the general public or has been offered for sale lease or license to the general public
bull A final commercial determination is made by the government contracting officer If the items is deemed to not be commercial the supplier is required to submit a complete proposal that includes cost and pricing data
38FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you claim one or more of your parts are commercial you need to support
your position by providing the following information
bull Copies of applicable portions of a company catalogue or website address that shows the item with a description and unit price
bull Show that these items can be purchased by the general public or nongovernmentalagency
bull If a website or catalogue is not available copies of invoices showing the sale of these items to nongovernment entities is sufficient
39FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull PSEMC policy requires suppliers to complete a PSEMC Supplier Proposal
Adequacy Checklist (sent with the RFP) for all proposals where the supplierclaims its parts are commercial
bull An example of the Supplier Proposal Adequacy Checklist for commercialitems is attached reference form DI-SUP-310F01
40PSEMC Policy
Pacific Scientific EMC ndash Commercial Item Status
If claiming an exemption offeror must provide the appropriate information to determine commerciality Refusal to provide the required information can result in an assist audit being requested from the Defense Contract Audit Agency or other cognizant Government Audit Agencies and or a determination that goods andor services offered do not constitute a ldquocommercial itemrdquo
Offeror hereby represents that to the best of its knowledge information and belief goods andor services offered constitute a ldquocommercial itemrdquo as defined by FAR 2101 because it constitutes
A Commercial Item or Component Justification (required for any claim)
Key Inquiries and Summary of your Supporting Information
What is the relevant ldquotyperdquo of item enspenspenspenspensp
What are the types of items uses by the general public or by non-governmental entities for other than governmental purposes enspenspenspenspensp
What indicates the type of itemrsquos use described above is customary enspenspenspenspensp
Has the offered item itself (as opposed to the type of item) been sold or offered for sale
|_| Yes|_| NO
Are the offered itemrsquos sales (or offers to sale) to the general public
|_| Yes|_| NO
Please provide data regarding sales leases or licenses of this item and identification of the non-government use entities
ValueNon-Government Use Entities
(date)(date)
In addition as an appendix to this commercial item determination provide supporting documentation in the form of
1that have not materialized into sales
2that have not materialized into leases
3that have not materialized into licenses
1 Verification of sales history to source documents
2 Identification of customarily offered discounts for the item
3 Verification of the item to an existing catalog or price list and
4 Verification of historical data for an item previously not determined commercial that the offeror is now trying to qualify as a commercial item
(check box(es) as appropriate)
|_| I Unmodified Commercial Items or Components (Complete Section A)
Any item other than real property that is a of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes and
(i) Has been sold leased or licensed to the general public or
(ii) Has been offered for sale lease or license to the general public
|_| II Item Evolved from Commercial Items or Components
Any item that evolved from an item described in Part I (which is required if claiming this exemption) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace but will be available in the commercial marketplace in time to satisfy the delivery requirements under a United States Government solicitation
If claiming the item Evolved from Commercial Items or Components exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use Part I)
|_| Yes|_| NO
If yes describe the relationship of the modifications to the Federal Government requirement enspenspenspenspensp
What are the advances in technology or performance between the offered item and the commercial item on which it is based enspenspenspenspensp
What is your support for such advances enspenspenspenspensp
What is your support for availability of the item in time to meet requirements Is the claim availability reasonable enspenspenspenspensp
Please provide data regarding
(a) Currently pending offers including
(b) Planned Offers Including
In all instances scheduled for delivery no later than the delivery requirements under the
(c) Data in the format of Part I for completed sales of the item from which the ldquocommercial itemrdquo evolved
|_| III Modified Commercial Items or Components
Any item that would satisfy a criterion expressed in Part I or II hereof but for -
|_| (i) Modifications of a type customarily available in the commercial marketplace
If claiming Modified Commercial Item or Components that are of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use part I or parts II and II)
|_| Yes|_| NO
What are the modifications that would be made to the commercial item enspenspenspenspensp
Are the modifications of a type customarily available in the commercial marketplace
|_| Yes|_| NO
Summarize your support for customary availability of the modification in the commercial marketplace enspenspenspenspensp
|_| (ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet federal government requirements ldquoMinor modificationsrdquo means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component or change the purpose of a process Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product Dollar values and percentages may be used as guideposts but are not conclusive evidence that a modification is minor
If claiming Modified Commercial Items or Components that are not of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Are the modifications made to satisfy Federal Government requirements
|_| Yes|_| NO
Do the modifications alter the nongovernmental function or essential physical characteristics of the item
|_| Yes|_| NO
If yes what are the alterations enspenspenspenspensp
Does the modified item retain a predominance of nongovernmental functions or physical characteristics
|_| Yes|_| NO
Summarize your support describing the value of the modifications in comparison to the value of the final product enspenspenspenspensp
Summarize your support for the magnitude or size of the modifications in relation to the magnitude or size of the final product enspenspenspenspensp
Are there any other factors which would allow you to conclude that the modifications are minor
|_| Yes|_| NO
If yes what are they enspenspenspenspensp
Based on the above does the modification qualify as a minor modification
|_| Yes|_| NO
Please provide data regarding the minor modification and the total price to PSEMC of Minor Modifications
Price to PSEMC of all Minor Modifications at quantities proposed in this pricing action enspenspenspenspensp
Minor modifications that exceed the thresholds in FAR 15403-1(c)(3)(iii)(B) are subject to the Certified Cost or Pricing Data requirements and must be proposed as described by FAR 15408 Table 152
|_| IV Commercial Items Support Services
Installation services maintenance services repair services training services and other services if -
(i) Such services are procured for support of an item referred to in Parts I II III or IV hereof regardless of whether such services are provided by the same source or at the same time as the item and
(ii) The source of such services provided similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government
If claiming Commercial Item Support Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services procured for the support of a commercial item which qualifies under a preceding part
|_| Yes|_| NO
Describe the nature of the services and how they support the commercial item enspenspenspenspensp
Are the services provided at the same time to the general public and the Federal Government
|_| Yes|_| NO
Are the terms and conditions for the services similar to those offered to the general public
|_| Yes|_| NO
Describe differences enspenspenspenspensp
Please provide data regarding
a Open and completed contracts including
b Pending offers including
|_| V Any Combination of Items
Meeting the requirements of Parts I II III or IV hereof that are of a type customarily combined and sold in combination to the general public
If you have checked the above box and are claiming the Any Combination of Items exemption please attach hereto information as requ3sted for Parts I II III and IV
|_| VI Other Commercial Services
Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions For purposes of these services -
(i) Catalog price means a price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor is either published or otherwise available for inspection by customers and states prices at which sales are currently or were last made to a significant number of buyers constituting the general public and
(ii) Market prices means current prices that are established in the course of ordinary trade between buyers and sellers free to bargain and that can be substantiated through competition or from source independent of the offerors
If claiming the Other Commercial Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services sold competitively in substantial quantities in the commercial marketplace
|_| Yes|_| NO
If no are the services of a type sold in substantial quantities in the commercial marketplace
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If yes what is the ldquotyperdquo of service enspenspenspenspensp
Summarize your support for same enspenspenspenspensp
Are the prices quoted for specific tasks performed or specific outcomes to be achieved
|_| Yes|_| NO
Are the services offered consistent with your standard terms and conditions
|_| Yes|_| NO
Are the services of a type sold at catalog or market prices
|_| Yes|_| NO
If sold at catalog price is the price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor
|_| Yes|_| NO
If sold at catalog price is the catalog or its equivalent either published or otherwise available for inspection by customers
|_| Yes|_| NO
Summarize your support for same (include a copy of the catalog or provide location) enspenspenspenspensp
If sold at a catalog price are the listed prices those at which sales are currently or were last made to a significant number of buyers in the general public
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If sold at a market price are the prices established in the course of ordinary trade between buyers and sellers free to bargain
|_| Yes|_| NO
Summarize you support for same enspenspenspenspensp
If sold at market price can the price be substantiated through competition or from sources independent of the offeror
|_| Yes|_| NO
Summarize your support for same
Please provide data regarding
(a) Open and completed contracts including
(b) Pending Offers including
|_| VII Any Item Combination of Items or Service
Referred to in Parts I through VI hereof notwithstanding the fact that the item combination of items or service is transferred between or among separate divisions subsidiaries or affiliates of the Offeror
If you have checked the above box and are claiming the ldquoAny item combination of items or Servicerdquo exemption please provide data regarding
|_| VIII Non-developmental Items
A non-developmental item as defined in FAR 2101 which has been developed exclusively at private expense and sold in substantial quantities on a competitive basis to multiple State and local governments
If claiming the Non-developmental Items exemption then the following must be provided
Key Inquiries and Summary of Supplierrsquos Supporting Information
Was the item previously developed
|_| Yes|_| NO
Was the item used exclusively for governmental purposes by a Federal agency a State or local government or a foreign government with which the United States has mutual defense cooperation agreement
|_| Yes|_| NO
If the item is to be modified do the modifications comply with Part III guidance on modifications
|_| Yes|_| NO
If the item is not yet in use does it otherwise qualify as a non-developmental item
|_| Yes|_| NO
Was the item developed exclusively at private expense
|_| Yes|_| NO
Is the item sold in substantial quantities on a competitive basis to multiple State and local governments
|_| Yes|_| NO
Please provide data regarding
|_| IX General Inquiries
Does the item qualify as a combination of items under Parts I II III and IV above
|_| Yes|_| NO
Has the item or services previously been determined to be commercial
|_| Yes|_| NO
If so by whom enspenspenspenspensp
|_| X Other Information
Is there other information of which you are aware that would supplement the information provided and would help substantiate whether the item or service is commercial
|_| Yes|_| NO
Have you provided such information
|_| Yes|_| NO
List such information enspenspenspenspensp
|_| XI Supplier Determination
Offeror hereby represents that the foregoing information is accurate and complete and that to the best of its knowledge information and belief goods and or services offered currently constitute ldquoa commercial itemrdquo as defined by FAR 2101
For PSEMC Internal Use Only
XII Supplier Determination
Supplier has claimed that the item component or service identified above is a commercial item under the definition at FAR 2101 I have reviewed and summarized the supplierrsquos support for that claim in the appropriate sections above Based on such review of such support information and any other information identified elsewhere herein I conclude that the supplier
|_| HAS |_| HAS NOT Supported its claim of commercial item status under the definition at FAR 2101
If the supplier HAS NOT supported its claim list reasons enspenspenspenspensp
Describe action plat to resolve enspenspenspenspensp
Comments enspenspenspenspensp
image1jpeg
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull This section of Table 15-2 describes the format an estimating approach we
are required to use when developing a proposal to modify an existingcontract In addition to the cost element breakdowns required as describedin the previous slides when there is a modification or change proposal FARalso requires the following table to be inserted into your proposal
41
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals
42FAR 15408 Table 15-2 III B
B Change Orders modifications and claims
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
Column 2 includes the cost of all work deleted This
includes cost of work deleted already performed (amount in Column 3) and
cost of work deleted not yet performed (Column 4)
Column 3 includes the cost of deleted work already
performed This amount will not be included in the credit (delete) adjustment amount (eg we will not give back costs already
incurred)
Column 4 includes cost for deleted work not yet performed ndash must be priced using current
estimates (but the current estimate may be the same as
the original estimate) ndash it is develed similar to a normal ldquoaddrdquo proposal with a few
exceptions
Column 5 includes the cost of the
new work and is developed as we do any
other proposal
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull Detail for columns listed on previous page
1 Enter appropriate cost element2 Enter current estimates of what it would take to complete the deleted work that
has not yet been performed3 Enter current cost of deleted work already performed This should be based on
actuals and copies to support these actuals should be included in the proposal4 Enter the net cost to be deleted (Column 2 minus Column 3)5 Enter your estimate for cost of work added by the change6 Enter the net cost of change (Column 5 minus Column 4)7 Identify where in your proposal the supporting documentation and basis of
estimate can be found for each of these sections
43FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull For purposes of determining if a proposal an cost or pricing data are
required from individual suppliers on a change proposal the absolute valueof the ldquodeleterdquo amount plus the ldquoaddrdquo amount is computed for each supplierthat exceeds the cost and pricing threshold (TINA)
bull Remember from FAR 15403-4(b) ndash if the absolute value for an individualsupplier exceeds the cost and pricing threshold (TINA) and the supplier iseither an actual supplier (will continue to provide partsservices on thiscontract) the supplier is required to provide a proposal and cost or pricingdata in support of the change proposal
bull Deleted amount is our current estimate (generally no the original contractvalue unless it is our current estimate)
44FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull If a supplierrsquos quantities are changing due to a modification the net delete
or add amount is used to determine if the supplier exceeds the cost andpricing threshold (TINA)
bull The estimator should not consider the old quantity as the delete and thenew quantity as the add (eg in computing absolute value) whendetermining if the supplier exceeds the threshold in cases where quantitiesare changing
bull The development of the appropriate deletion is not simply the estimatedcost of the deleted quantity ndash this will overstate the credit
45FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals Cost of WorkDeleted for a Partial Deleted Quantitybull In cases where part of a material quantity is being deleted (eg original
contract requires 100 widgets and the contract is modified to delete 30 ofthem) one method of estimating the amount of the delete is
1 Develop a current estimate of the extended cost for the item(s) given the originalquantity
2 Develop a current estimate of the extended cost for the items at the lower(remaining) quantity
3 The delta between these two values represents the amount of the delete
bull The same method can be used if the contract is modified to increase aquantity for a part
46FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklist
47
bull The Supplier Proposal Adequacy Checklist is accessed from the externalPSEMC supplier website
bull Additional supplier proposal guidance and resources are available(information templates and tools to assist in building a FAR compliantproposal
bull Supplier proposal guidance
bull Supplier Proposal Adequacy Guidelines
bull PSEMC document templates
bull Supplier proposal adequacy checklistbull Contract pricing proposal cover sheet
httpspsemccomsuppliers
- Strategic Affordability Analysis
- Purpose of this Guideline
- Table of Contents
- Table of Contents
- Supplier Proposal Adequacy Checklist
- Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
- Cover Sheet
- Cover Sheet Example ndash Reference Form DI-SUP-105F02
- Index
- Index Example
- Cost Element Breakdown by Line Item
- Cost Element Breakdown by Line Item Example
- Summary Cost Element Breakdown
- Summary Cost Element Breakdown - Example
- Summary Cost Element Breakdown - Example
- Material
- Material
- Individual Bills of Material Example
- Consolidated Bill of Material Example
- Consolidated Bill of Material
- Material
- Material
- Material
- Labor
- Labor
- Labor
- Labor Hours Example
- Labor Hours Example ndash Actual Production History
- Labor Hours Examples ndash Basis of Estimate
- Other Direct Costs (ODC)
- Nonrecurring Expenses (NRE)
- NRE
- Rates
- Rates
- Summary
- Summary
- Other Types of Proposals
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals Cost of WorkDeleted for a Partial Deleted Quantity
- Supplier Proposal Adequacy Checklist
-
| Buyer (Type or Print Name) | Date |
| Offeror | |||
| By | |||
| Title | |||
| Date |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp | ||
| (iii) Total number of customers involved in such sales | enspenspenspenspensp |
| (a) Transfer price(s) of such goods | $ enspenspenspenspensp | ||
| (b) Total units of such goods and or | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| Unmodified Items Identified in Part 1 | Modified Items Proposed to PSMEC | Unit Value of Modification | |||||||
| Unmodified Item | Unmodified Price | Modified Item | Modified Price to PSEMC | ||||||
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| To the general public in the time-frame beginning | enspenspenspenspensp | enspenspenspenspensp | and ending | enspenspenspenspensp |
| (a) Sales | |||||
| (b) Leases | |||||
| (c) Licenses | |||||
| (d) Offers to Sell 1 | |||||
| (e) Offers to Lease 2 | |||||
| (f) Offers to License 3 |
| Part Number | |||
| Description | |||
| Offeror |
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Summarybull Sufficient rationale and supporting documentation to support each of the
proposed cost elements is also required
bull Obtaining adequate supplier proposals is always on the critical path sincePSEMC cannot submit its proposal to the government until it has receivedadequate proposals from its subcontractors Therefore it is critical thatadequate supplier proposals are obtained as quickly as possible
36
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Types of Proposalsbull Commercial item proposals
bull Change proposals
bull The following slides are only applicable in certain situations
37
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you or one of your suppliers is providing a commercial part cost or pricing
data and a cost analysis is not required However you must demonstrate that the part is commercial and that the price is reasonable
bull A commercial item is any item other than real property that is a type customarily used by the general public or by a nongovernment entity
bull Has also been sold leased or licensed to the general public or has been offered for sale lease or license to the general public
bull A final commercial determination is made by the government contracting officer If the items is deemed to not be commercial the supplier is required to submit a complete proposal that includes cost and pricing data
38FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you claim one or more of your parts are commercial you need to support
your position by providing the following information
bull Copies of applicable portions of a company catalogue or website address that shows the item with a description and unit price
bull Show that these items can be purchased by the general public or nongovernmentalagency
bull If a website or catalogue is not available copies of invoices showing the sale of these items to nongovernment entities is sufficient
39FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull PSEMC policy requires suppliers to complete a PSEMC Supplier Proposal
Adequacy Checklist (sent with the RFP) for all proposals where the supplierclaims its parts are commercial
bull An example of the Supplier Proposal Adequacy Checklist for commercialitems is attached reference form DI-SUP-310F01
40PSEMC Policy
Pacific Scientific EMC ndash Commercial Item Status
If claiming an exemption offeror must provide the appropriate information to determine commerciality Refusal to provide the required information can result in an assist audit being requested from the Defense Contract Audit Agency or other cognizant Government Audit Agencies and or a determination that goods andor services offered do not constitute a ldquocommercial itemrdquo
Offeror hereby represents that to the best of its knowledge information and belief goods andor services offered constitute a ldquocommercial itemrdquo as defined by FAR 2101 because it constitutes
A Commercial Item or Component Justification (required for any claim)
Key Inquiries and Summary of your Supporting Information
What is the relevant ldquotyperdquo of item enspenspenspenspensp
What are the types of items uses by the general public or by non-governmental entities for other than governmental purposes enspenspenspenspensp
What indicates the type of itemrsquos use described above is customary enspenspenspenspensp
Has the offered item itself (as opposed to the type of item) been sold or offered for sale
|_| Yes|_| NO
Are the offered itemrsquos sales (or offers to sale) to the general public
|_| Yes|_| NO
Please provide data regarding sales leases or licenses of this item and identification of the non-government use entities
ValueNon-Government Use Entities
(date)(date)
In addition as an appendix to this commercial item determination provide supporting documentation in the form of
1that have not materialized into sales
2that have not materialized into leases
3that have not materialized into licenses
1 Verification of sales history to source documents
2 Identification of customarily offered discounts for the item
3 Verification of the item to an existing catalog or price list and
4 Verification of historical data for an item previously not determined commercial that the offeror is now trying to qualify as a commercial item
(check box(es) as appropriate)
|_| I Unmodified Commercial Items or Components (Complete Section A)
Any item other than real property that is a of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes and
(i) Has been sold leased or licensed to the general public or
(ii) Has been offered for sale lease or license to the general public
|_| II Item Evolved from Commercial Items or Components
Any item that evolved from an item described in Part I (which is required if claiming this exemption) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace but will be available in the commercial marketplace in time to satisfy the delivery requirements under a United States Government solicitation
If claiming the item Evolved from Commercial Items or Components exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use Part I)
|_| Yes|_| NO
If yes describe the relationship of the modifications to the Federal Government requirement enspenspenspenspensp
What are the advances in technology or performance between the offered item and the commercial item on which it is based enspenspenspenspensp
What is your support for such advances enspenspenspenspensp
What is your support for availability of the item in time to meet requirements Is the claim availability reasonable enspenspenspenspensp
Please provide data regarding
(a) Currently pending offers including
(b) Planned Offers Including
In all instances scheduled for delivery no later than the delivery requirements under the
(c) Data in the format of Part I for completed sales of the item from which the ldquocommercial itemrdquo evolved
|_| III Modified Commercial Items or Components
Any item that would satisfy a criterion expressed in Part I or II hereof but for -
|_| (i) Modifications of a type customarily available in the commercial marketplace
If claiming Modified Commercial Item or Components that are of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use part I or parts II and II)
|_| Yes|_| NO
What are the modifications that would be made to the commercial item enspenspenspenspensp
Are the modifications of a type customarily available in the commercial marketplace
|_| Yes|_| NO
Summarize your support for customary availability of the modification in the commercial marketplace enspenspenspenspensp
|_| (ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet federal government requirements ldquoMinor modificationsrdquo means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component or change the purpose of a process Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product Dollar values and percentages may be used as guideposts but are not conclusive evidence that a modification is minor
If claiming Modified Commercial Items or Components that are not of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Are the modifications made to satisfy Federal Government requirements
|_| Yes|_| NO
Do the modifications alter the nongovernmental function or essential physical characteristics of the item
|_| Yes|_| NO
If yes what are the alterations enspenspenspenspensp
Does the modified item retain a predominance of nongovernmental functions or physical characteristics
|_| Yes|_| NO
Summarize your support describing the value of the modifications in comparison to the value of the final product enspenspenspenspensp
Summarize your support for the magnitude or size of the modifications in relation to the magnitude or size of the final product enspenspenspenspensp
Are there any other factors which would allow you to conclude that the modifications are minor
|_| Yes|_| NO
If yes what are they enspenspenspenspensp
Based on the above does the modification qualify as a minor modification
|_| Yes|_| NO
Please provide data regarding the minor modification and the total price to PSEMC of Minor Modifications
Price to PSEMC of all Minor Modifications at quantities proposed in this pricing action enspenspenspenspensp
Minor modifications that exceed the thresholds in FAR 15403-1(c)(3)(iii)(B) are subject to the Certified Cost or Pricing Data requirements and must be proposed as described by FAR 15408 Table 152
|_| IV Commercial Items Support Services
Installation services maintenance services repair services training services and other services if -
(i) Such services are procured for support of an item referred to in Parts I II III or IV hereof regardless of whether such services are provided by the same source or at the same time as the item and
(ii) The source of such services provided similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government
If claiming Commercial Item Support Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services procured for the support of a commercial item which qualifies under a preceding part
|_| Yes|_| NO
Describe the nature of the services and how they support the commercial item enspenspenspenspensp
Are the services provided at the same time to the general public and the Federal Government
|_| Yes|_| NO
Are the terms and conditions for the services similar to those offered to the general public
|_| Yes|_| NO
Describe differences enspenspenspenspensp
Please provide data regarding
a Open and completed contracts including
b Pending offers including
|_| V Any Combination of Items
Meeting the requirements of Parts I II III or IV hereof that are of a type customarily combined and sold in combination to the general public
If you have checked the above box and are claiming the Any Combination of Items exemption please attach hereto information as requ3sted for Parts I II III and IV
|_| VI Other Commercial Services
Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions For purposes of these services -
(i) Catalog price means a price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor is either published or otherwise available for inspection by customers and states prices at which sales are currently or were last made to a significant number of buyers constituting the general public and
(ii) Market prices means current prices that are established in the course of ordinary trade between buyers and sellers free to bargain and that can be substantiated through competition or from source independent of the offerors
If claiming the Other Commercial Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services sold competitively in substantial quantities in the commercial marketplace
|_| Yes|_| NO
If no are the services of a type sold in substantial quantities in the commercial marketplace
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If yes what is the ldquotyperdquo of service enspenspenspenspensp
Summarize your support for same enspenspenspenspensp
Are the prices quoted for specific tasks performed or specific outcomes to be achieved
|_| Yes|_| NO
Are the services offered consistent with your standard terms and conditions
|_| Yes|_| NO
Are the services of a type sold at catalog or market prices
|_| Yes|_| NO
If sold at catalog price is the price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor
|_| Yes|_| NO
If sold at catalog price is the catalog or its equivalent either published or otherwise available for inspection by customers
|_| Yes|_| NO
Summarize your support for same (include a copy of the catalog or provide location) enspenspenspenspensp
If sold at a catalog price are the listed prices those at which sales are currently or were last made to a significant number of buyers in the general public
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If sold at a market price are the prices established in the course of ordinary trade between buyers and sellers free to bargain
|_| Yes|_| NO
Summarize you support for same enspenspenspenspensp
If sold at market price can the price be substantiated through competition or from sources independent of the offeror
|_| Yes|_| NO
Summarize your support for same
Please provide data regarding
(a) Open and completed contracts including
(b) Pending Offers including
|_| VII Any Item Combination of Items or Service
Referred to in Parts I through VI hereof notwithstanding the fact that the item combination of items or service is transferred between or among separate divisions subsidiaries or affiliates of the Offeror
If you have checked the above box and are claiming the ldquoAny item combination of items or Servicerdquo exemption please provide data regarding
|_| VIII Non-developmental Items
A non-developmental item as defined in FAR 2101 which has been developed exclusively at private expense and sold in substantial quantities on a competitive basis to multiple State and local governments
If claiming the Non-developmental Items exemption then the following must be provided
Key Inquiries and Summary of Supplierrsquos Supporting Information
Was the item previously developed
|_| Yes|_| NO
Was the item used exclusively for governmental purposes by a Federal agency a State or local government or a foreign government with which the United States has mutual defense cooperation agreement
|_| Yes|_| NO
If the item is to be modified do the modifications comply with Part III guidance on modifications
|_| Yes|_| NO
If the item is not yet in use does it otherwise qualify as a non-developmental item
|_| Yes|_| NO
Was the item developed exclusively at private expense
|_| Yes|_| NO
Is the item sold in substantial quantities on a competitive basis to multiple State and local governments
|_| Yes|_| NO
Please provide data regarding
|_| IX General Inquiries
Does the item qualify as a combination of items under Parts I II III and IV above
|_| Yes|_| NO
Has the item or services previously been determined to be commercial
|_| Yes|_| NO
If so by whom enspenspenspenspensp
|_| X Other Information
Is there other information of which you are aware that would supplement the information provided and would help substantiate whether the item or service is commercial
|_| Yes|_| NO
Have you provided such information
|_| Yes|_| NO
List such information enspenspenspenspensp
|_| XI Supplier Determination
Offeror hereby represents that the foregoing information is accurate and complete and that to the best of its knowledge information and belief goods and or services offered currently constitute ldquoa commercial itemrdquo as defined by FAR 2101
For PSEMC Internal Use Only
XII Supplier Determination
Supplier has claimed that the item component or service identified above is a commercial item under the definition at FAR 2101 I have reviewed and summarized the supplierrsquos support for that claim in the appropriate sections above Based on such review of such support information and any other information identified elsewhere herein I conclude that the supplier
|_| HAS |_| HAS NOT Supported its claim of commercial item status under the definition at FAR 2101
If the supplier HAS NOT supported its claim list reasons enspenspenspenspensp
Describe action plat to resolve enspenspenspenspensp
Comments enspenspenspenspensp
image1jpeg
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull This section of Table 15-2 describes the format an estimating approach we
are required to use when developing a proposal to modify an existingcontract In addition to the cost element breakdowns required as describedin the previous slides when there is a modification or change proposal FARalso requires the following table to be inserted into your proposal
41
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals
42FAR 15408 Table 15-2 III B
B Change Orders modifications and claims
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
Column 2 includes the cost of all work deleted This
includes cost of work deleted already performed (amount in Column 3) and
cost of work deleted not yet performed (Column 4)
Column 3 includes the cost of deleted work already
performed This amount will not be included in the credit (delete) adjustment amount (eg we will not give back costs already
incurred)
Column 4 includes cost for deleted work not yet performed ndash must be priced using current
estimates (but the current estimate may be the same as
the original estimate) ndash it is develed similar to a normal ldquoaddrdquo proposal with a few
exceptions
Column 5 includes the cost of the
new work and is developed as we do any
other proposal
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull Detail for columns listed on previous page
1 Enter appropriate cost element2 Enter current estimates of what it would take to complete the deleted work that
has not yet been performed3 Enter current cost of deleted work already performed This should be based on
actuals and copies to support these actuals should be included in the proposal4 Enter the net cost to be deleted (Column 2 minus Column 3)5 Enter your estimate for cost of work added by the change6 Enter the net cost of change (Column 5 minus Column 4)7 Identify where in your proposal the supporting documentation and basis of
estimate can be found for each of these sections
43FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull For purposes of determining if a proposal an cost or pricing data are
required from individual suppliers on a change proposal the absolute valueof the ldquodeleterdquo amount plus the ldquoaddrdquo amount is computed for each supplierthat exceeds the cost and pricing threshold (TINA)
bull Remember from FAR 15403-4(b) ndash if the absolute value for an individualsupplier exceeds the cost and pricing threshold (TINA) and the supplier iseither an actual supplier (will continue to provide partsservices on thiscontract) the supplier is required to provide a proposal and cost or pricingdata in support of the change proposal
bull Deleted amount is our current estimate (generally no the original contractvalue unless it is our current estimate)
44FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull If a supplierrsquos quantities are changing due to a modification the net delete
or add amount is used to determine if the supplier exceeds the cost andpricing threshold (TINA)
bull The estimator should not consider the old quantity as the delete and thenew quantity as the add (eg in computing absolute value) whendetermining if the supplier exceeds the threshold in cases where quantitiesare changing
bull The development of the appropriate deletion is not simply the estimatedcost of the deleted quantity ndash this will overstate the credit
45FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals Cost of WorkDeleted for a Partial Deleted Quantitybull In cases where part of a material quantity is being deleted (eg original
contract requires 100 widgets and the contract is modified to delete 30 ofthem) one method of estimating the amount of the delete is
1 Develop a current estimate of the extended cost for the item(s) given the originalquantity
2 Develop a current estimate of the extended cost for the items at the lower(remaining) quantity
3 The delta between these two values represents the amount of the delete
bull The same method can be used if the contract is modified to increase aquantity for a part
46FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklist
47
bull The Supplier Proposal Adequacy Checklist is accessed from the externalPSEMC supplier website
bull Additional supplier proposal guidance and resources are available(information templates and tools to assist in building a FAR compliantproposal
bull Supplier proposal guidance
bull Supplier Proposal Adequacy Guidelines
bull PSEMC document templates
bull Supplier proposal adequacy checklistbull Contract pricing proposal cover sheet
httpspsemccomsuppliers
- Strategic Affordability Analysis
- Purpose of this Guideline
- Table of Contents
- Table of Contents
- Supplier Proposal Adequacy Checklist
- Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
- Cover Sheet
- Cover Sheet Example ndash Reference Form DI-SUP-105F02
- Index
- Index Example
- Cost Element Breakdown by Line Item
- Cost Element Breakdown by Line Item Example
- Summary Cost Element Breakdown
- Summary Cost Element Breakdown - Example
- Summary Cost Element Breakdown - Example
- Material
- Material
- Individual Bills of Material Example
- Consolidated Bill of Material Example
- Consolidated Bill of Material
- Material
- Material
- Material
- Labor
- Labor
- Labor
- Labor Hours Example
- Labor Hours Example ndash Actual Production History
- Labor Hours Examples ndash Basis of Estimate
- Other Direct Costs (ODC)
- Nonrecurring Expenses (NRE)
- NRE
- Rates
- Rates
- Summary
- Summary
- Other Types of Proposals
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals Cost of WorkDeleted for a Partial Deleted Quantity
- Supplier Proposal Adequacy Checklist
-
| Buyer (Type or Print Name) | Date |
| Offeror | |||
| By | |||
| Title | |||
| Date |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp | ||
| (iii) Total number of customers involved in such sales | enspenspenspenspensp |
| (a) Transfer price(s) of such goods | $ enspenspenspenspensp | ||
| (b) Total units of such goods and or | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| Unmodified Items Identified in Part 1 | Modified Items Proposed to PSMEC | Unit Value of Modification | |||||||
| Unmodified Item | Unmodified Price | Modified Item | Modified Price to PSEMC | ||||||
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| To the general public in the time-frame beginning | enspenspenspenspensp | enspenspenspenspensp | and ending | enspenspenspenspensp |
| (a) Sales | |||||
| (b) Leases | |||||
| (c) Licenses | |||||
| (d) Offers to Sell 1 | |||||
| (e) Offers to Lease 2 | |||||
| (f) Offers to License 3 |
| Part Number | |||
| Description | |||
| Offeror |
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Other Types of Proposalsbull Commercial item proposals
bull Change proposals
bull The following slides are only applicable in certain situations
37
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you or one of your suppliers is providing a commercial part cost or pricing
data and a cost analysis is not required However you must demonstrate that the part is commercial and that the price is reasonable
bull A commercial item is any item other than real property that is a type customarily used by the general public or by a nongovernment entity
bull Has also been sold leased or licensed to the general public or has been offered for sale lease or license to the general public
bull A final commercial determination is made by the government contracting officer If the items is deemed to not be commercial the supplier is required to submit a complete proposal that includes cost and pricing data
38FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you claim one or more of your parts are commercial you need to support
your position by providing the following information
bull Copies of applicable portions of a company catalogue or website address that shows the item with a description and unit price
bull Show that these items can be purchased by the general public or nongovernmentalagency
bull If a website or catalogue is not available copies of invoices showing the sale of these items to nongovernment entities is sufficient
39FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull PSEMC policy requires suppliers to complete a PSEMC Supplier Proposal
Adequacy Checklist (sent with the RFP) for all proposals where the supplierclaims its parts are commercial
bull An example of the Supplier Proposal Adequacy Checklist for commercialitems is attached reference form DI-SUP-310F01
40PSEMC Policy
Pacific Scientific EMC ndash Commercial Item Status
If claiming an exemption offeror must provide the appropriate information to determine commerciality Refusal to provide the required information can result in an assist audit being requested from the Defense Contract Audit Agency or other cognizant Government Audit Agencies and or a determination that goods andor services offered do not constitute a ldquocommercial itemrdquo
Offeror hereby represents that to the best of its knowledge information and belief goods andor services offered constitute a ldquocommercial itemrdquo as defined by FAR 2101 because it constitutes
A Commercial Item or Component Justification (required for any claim)
Key Inquiries and Summary of your Supporting Information
What is the relevant ldquotyperdquo of item enspenspenspenspensp
What are the types of items uses by the general public or by non-governmental entities for other than governmental purposes enspenspenspenspensp
What indicates the type of itemrsquos use described above is customary enspenspenspenspensp
Has the offered item itself (as opposed to the type of item) been sold or offered for sale
|_| Yes|_| NO
Are the offered itemrsquos sales (or offers to sale) to the general public
|_| Yes|_| NO
Please provide data regarding sales leases or licenses of this item and identification of the non-government use entities
ValueNon-Government Use Entities
(date)(date)
In addition as an appendix to this commercial item determination provide supporting documentation in the form of
1that have not materialized into sales
2that have not materialized into leases
3that have not materialized into licenses
1 Verification of sales history to source documents
2 Identification of customarily offered discounts for the item
3 Verification of the item to an existing catalog or price list and
4 Verification of historical data for an item previously not determined commercial that the offeror is now trying to qualify as a commercial item
(check box(es) as appropriate)
|_| I Unmodified Commercial Items or Components (Complete Section A)
Any item other than real property that is a of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes and
(i) Has been sold leased or licensed to the general public or
(ii) Has been offered for sale lease or license to the general public
|_| II Item Evolved from Commercial Items or Components
Any item that evolved from an item described in Part I (which is required if claiming this exemption) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace but will be available in the commercial marketplace in time to satisfy the delivery requirements under a United States Government solicitation
If claiming the item Evolved from Commercial Items or Components exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use Part I)
|_| Yes|_| NO
If yes describe the relationship of the modifications to the Federal Government requirement enspenspenspenspensp
What are the advances in technology or performance between the offered item and the commercial item on which it is based enspenspenspenspensp
What is your support for such advances enspenspenspenspensp
What is your support for availability of the item in time to meet requirements Is the claim availability reasonable enspenspenspenspensp
Please provide data regarding
(a) Currently pending offers including
(b) Planned Offers Including
In all instances scheduled for delivery no later than the delivery requirements under the
(c) Data in the format of Part I for completed sales of the item from which the ldquocommercial itemrdquo evolved
|_| III Modified Commercial Items or Components
Any item that would satisfy a criterion expressed in Part I or II hereof but for -
|_| (i) Modifications of a type customarily available in the commercial marketplace
If claiming Modified Commercial Item or Components that are of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use part I or parts II and II)
|_| Yes|_| NO
What are the modifications that would be made to the commercial item enspenspenspenspensp
Are the modifications of a type customarily available in the commercial marketplace
|_| Yes|_| NO
Summarize your support for customary availability of the modification in the commercial marketplace enspenspenspenspensp
|_| (ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet federal government requirements ldquoMinor modificationsrdquo means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component or change the purpose of a process Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product Dollar values and percentages may be used as guideposts but are not conclusive evidence that a modification is minor
If claiming Modified Commercial Items or Components that are not of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Are the modifications made to satisfy Federal Government requirements
|_| Yes|_| NO
Do the modifications alter the nongovernmental function or essential physical characteristics of the item
|_| Yes|_| NO
If yes what are the alterations enspenspenspenspensp
Does the modified item retain a predominance of nongovernmental functions or physical characteristics
|_| Yes|_| NO
Summarize your support describing the value of the modifications in comparison to the value of the final product enspenspenspenspensp
Summarize your support for the magnitude or size of the modifications in relation to the magnitude or size of the final product enspenspenspenspensp
Are there any other factors which would allow you to conclude that the modifications are minor
|_| Yes|_| NO
If yes what are they enspenspenspenspensp
Based on the above does the modification qualify as a minor modification
|_| Yes|_| NO
Please provide data regarding the minor modification and the total price to PSEMC of Minor Modifications
Price to PSEMC of all Minor Modifications at quantities proposed in this pricing action enspenspenspenspensp
Minor modifications that exceed the thresholds in FAR 15403-1(c)(3)(iii)(B) are subject to the Certified Cost or Pricing Data requirements and must be proposed as described by FAR 15408 Table 152
|_| IV Commercial Items Support Services
Installation services maintenance services repair services training services and other services if -
(i) Such services are procured for support of an item referred to in Parts I II III or IV hereof regardless of whether such services are provided by the same source or at the same time as the item and
(ii) The source of such services provided similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government
If claiming Commercial Item Support Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services procured for the support of a commercial item which qualifies under a preceding part
|_| Yes|_| NO
Describe the nature of the services and how they support the commercial item enspenspenspenspensp
Are the services provided at the same time to the general public and the Federal Government
|_| Yes|_| NO
Are the terms and conditions for the services similar to those offered to the general public
|_| Yes|_| NO
Describe differences enspenspenspenspensp
Please provide data regarding
a Open and completed contracts including
b Pending offers including
|_| V Any Combination of Items
Meeting the requirements of Parts I II III or IV hereof that are of a type customarily combined and sold in combination to the general public
If you have checked the above box and are claiming the Any Combination of Items exemption please attach hereto information as requ3sted for Parts I II III and IV
|_| VI Other Commercial Services
Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions For purposes of these services -
(i) Catalog price means a price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor is either published or otherwise available for inspection by customers and states prices at which sales are currently or were last made to a significant number of buyers constituting the general public and
(ii) Market prices means current prices that are established in the course of ordinary trade between buyers and sellers free to bargain and that can be substantiated through competition or from source independent of the offerors
If claiming the Other Commercial Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services sold competitively in substantial quantities in the commercial marketplace
|_| Yes|_| NO
If no are the services of a type sold in substantial quantities in the commercial marketplace
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If yes what is the ldquotyperdquo of service enspenspenspenspensp
Summarize your support for same enspenspenspenspensp
Are the prices quoted for specific tasks performed or specific outcomes to be achieved
|_| Yes|_| NO
Are the services offered consistent with your standard terms and conditions
|_| Yes|_| NO
Are the services of a type sold at catalog or market prices
|_| Yes|_| NO
If sold at catalog price is the price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor
|_| Yes|_| NO
If sold at catalog price is the catalog or its equivalent either published or otherwise available for inspection by customers
|_| Yes|_| NO
Summarize your support for same (include a copy of the catalog or provide location) enspenspenspenspensp
If sold at a catalog price are the listed prices those at which sales are currently or were last made to a significant number of buyers in the general public
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If sold at a market price are the prices established in the course of ordinary trade between buyers and sellers free to bargain
|_| Yes|_| NO
Summarize you support for same enspenspenspenspensp
If sold at market price can the price be substantiated through competition or from sources independent of the offeror
|_| Yes|_| NO
Summarize your support for same
Please provide data regarding
(a) Open and completed contracts including
(b) Pending Offers including
|_| VII Any Item Combination of Items or Service
Referred to in Parts I through VI hereof notwithstanding the fact that the item combination of items or service is transferred between or among separate divisions subsidiaries or affiliates of the Offeror
If you have checked the above box and are claiming the ldquoAny item combination of items or Servicerdquo exemption please provide data regarding
|_| VIII Non-developmental Items
A non-developmental item as defined in FAR 2101 which has been developed exclusively at private expense and sold in substantial quantities on a competitive basis to multiple State and local governments
If claiming the Non-developmental Items exemption then the following must be provided
Key Inquiries and Summary of Supplierrsquos Supporting Information
Was the item previously developed
|_| Yes|_| NO
Was the item used exclusively for governmental purposes by a Federal agency a State or local government or a foreign government with which the United States has mutual defense cooperation agreement
|_| Yes|_| NO
If the item is to be modified do the modifications comply with Part III guidance on modifications
|_| Yes|_| NO
If the item is not yet in use does it otherwise qualify as a non-developmental item
|_| Yes|_| NO
Was the item developed exclusively at private expense
|_| Yes|_| NO
Is the item sold in substantial quantities on a competitive basis to multiple State and local governments
|_| Yes|_| NO
Please provide data regarding
|_| IX General Inquiries
Does the item qualify as a combination of items under Parts I II III and IV above
|_| Yes|_| NO
Has the item or services previously been determined to be commercial
|_| Yes|_| NO
If so by whom enspenspenspenspensp
|_| X Other Information
Is there other information of which you are aware that would supplement the information provided and would help substantiate whether the item or service is commercial
|_| Yes|_| NO
Have you provided such information
|_| Yes|_| NO
List such information enspenspenspenspensp
|_| XI Supplier Determination
Offeror hereby represents that the foregoing information is accurate and complete and that to the best of its knowledge information and belief goods and or services offered currently constitute ldquoa commercial itemrdquo as defined by FAR 2101
For PSEMC Internal Use Only
XII Supplier Determination
Supplier has claimed that the item component or service identified above is a commercial item under the definition at FAR 2101 I have reviewed and summarized the supplierrsquos support for that claim in the appropriate sections above Based on such review of such support information and any other information identified elsewhere herein I conclude that the supplier
|_| HAS |_| HAS NOT Supported its claim of commercial item status under the definition at FAR 2101
If the supplier HAS NOT supported its claim list reasons enspenspenspenspensp
Describe action plat to resolve enspenspenspenspensp
Comments enspenspenspenspensp
image1jpeg
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull This section of Table 15-2 describes the format an estimating approach we
are required to use when developing a proposal to modify an existingcontract In addition to the cost element breakdowns required as describedin the previous slides when there is a modification or change proposal FARalso requires the following table to be inserted into your proposal
41
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals
42FAR 15408 Table 15-2 III B
B Change Orders modifications and claims
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
Column 2 includes the cost of all work deleted This
includes cost of work deleted already performed (amount in Column 3) and
cost of work deleted not yet performed (Column 4)
Column 3 includes the cost of deleted work already
performed This amount will not be included in the credit (delete) adjustment amount (eg we will not give back costs already
incurred)
Column 4 includes cost for deleted work not yet performed ndash must be priced using current
estimates (but the current estimate may be the same as
the original estimate) ndash it is develed similar to a normal ldquoaddrdquo proposal with a few
exceptions
Column 5 includes the cost of the
new work and is developed as we do any
other proposal
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull Detail for columns listed on previous page
1 Enter appropriate cost element2 Enter current estimates of what it would take to complete the deleted work that
has not yet been performed3 Enter current cost of deleted work already performed This should be based on
actuals and copies to support these actuals should be included in the proposal4 Enter the net cost to be deleted (Column 2 minus Column 3)5 Enter your estimate for cost of work added by the change6 Enter the net cost of change (Column 5 minus Column 4)7 Identify where in your proposal the supporting documentation and basis of
estimate can be found for each of these sections
43FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull For purposes of determining if a proposal an cost or pricing data are
required from individual suppliers on a change proposal the absolute valueof the ldquodeleterdquo amount plus the ldquoaddrdquo amount is computed for each supplierthat exceeds the cost and pricing threshold (TINA)
bull Remember from FAR 15403-4(b) ndash if the absolute value for an individualsupplier exceeds the cost and pricing threshold (TINA) and the supplier iseither an actual supplier (will continue to provide partsservices on thiscontract) the supplier is required to provide a proposal and cost or pricingdata in support of the change proposal
bull Deleted amount is our current estimate (generally no the original contractvalue unless it is our current estimate)
44FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull If a supplierrsquos quantities are changing due to a modification the net delete
or add amount is used to determine if the supplier exceeds the cost andpricing threshold (TINA)
bull The estimator should not consider the old quantity as the delete and thenew quantity as the add (eg in computing absolute value) whendetermining if the supplier exceeds the threshold in cases where quantitiesare changing
bull The development of the appropriate deletion is not simply the estimatedcost of the deleted quantity ndash this will overstate the credit
45FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals Cost of WorkDeleted for a Partial Deleted Quantitybull In cases where part of a material quantity is being deleted (eg original
contract requires 100 widgets and the contract is modified to delete 30 ofthem) one method of estimating the amount of the delete is
1 Develop a current estimate of the extended cost for the item(s) given the originalquantity
2 Develop a current estimate of the extended cost for the items at the lower(remaining) quantity
3 The delta between these two values represents the amount of the delete
bull The same method can be used if the contract is modified to increase aquantity for a part
46FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklist
47
bull The Supplier Proposal Adequacy Checklist is accessed from the externalPSEMC supplier website
bull Additional supplier proposal guidance and resources are available(information templates and tools to assist in building a FAR compliantproposal
bull Supplier proposal guidance
bull Supplier Proposal Adequacy Guidelines
bull PSEMC document templates
bull Supplier proposal adequacy checklistbull Contract pricing proposal cover sheet
httpspsemccomsuppliers
- Strategic Affordability Analysis
- Purpose of this Guideline
- Table of Contents
- Table of Contents
- Supplier Proposal Adequacy Checklist
- Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
- Cover Sheet
- Cover Sheet Example ndash Reference Form DI-SUP-105F02
- Index
- Index Example
- Cost Element Breakdown by Line Item
- Cost Element Breakdown by Line Item Example
- Summary Cost Element Breakdown
- Summary Cost Element Breakdown - Example
- Summary Cost Element Breakdown - Example
- Material
- Material
- Individual Bills of Material Example
- Consolidated Bill of Material Example
- Consolidated Bill of Material
- Material
- Material
- Material
- Labor
- Labor
- Labor
- Labor Hours Example
- Labor Hours Example ndash Actual Production History
- Labor Hours Examples ndash Basis of Estimate
- Other Direct Costs (ODC)
- Nonrecurring Expenses (NRE)
- NRE
- Rates
- Rates
- Summary
- Summary
- Other Types of Proposals
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals Cost of WorkDeleted for a Partial Deleted Quantity
- Supplier Proposal Adequacy Checklist
-
| Buyer (Type or Print Name) | Date |
| Offeror | |||
| By | |||
| Title | |||
| Date |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp | ||
| (iii) Total number of customers involved in such sales | enspenspenspenspensp |
| (a) Transfer price(s) of such goods | $ enspenspenspenspensp | ||
| (b) Total units of such goods and or | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| Unmodified Items Identified in Part 1 | Modified Items Proposed to PSMEC | Unit Value of Modification | |||||||
| Unmodified Item | Unmodified Price | Modified Item | Modified Price to PSEMC | ||||||
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| To the general public in the time-frame beginning | enspenspenspenspensp | enspenspenspenspensp | and ending | enspenspenspenspensp |
| (a) Sales | |||||
| (b) Leases | |||||
| (c) Licenses | |||||
| (d) Offers to Sell 1 | |||||
| (e) Offers to Lease 2 | |||||
| (f) Offers to License 3 |
| Part Number | |||
| Description | |||
| Offeror |
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you or one of your suppliers is providing a commercial part cost or pricing
data and a cost analysis is not required However you must demonstrate that the part is commercial and that the price is reasonable
bull A commercial item is any item other than real property that is a type customarily used by the general public or by a nongovernment entity
bull Has also been sold leased or licensed to the general public or has been offered for sale lease or license to the general public
bull A final commercial determination is made by the government contracting officer If the items is deemed to not be commercial the supplier is required to submit a complete proposal that includes cost and pricing data
38FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you claim one or more of your parts are commercial you need to support
your position by providing the following information
bull Copies of applicable portions of a company catalogue or website address that shows the item with a description and unit price
bull Show that these items can be purchased by the general public or nongovernmentalagency
bull If a website or catalogue is not available copies of invoices showing the sale of these items to nongovernment entities is sufficient
39FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull PSEMC policy requires suppliers to complete a PSEMC Supplier Proposal
Adequacy Checklist (sent with the RFP) for all proposals where the supplierclaims its parts are commercial
bull An example of the Supplier Proposal Adequacy Checklist for commercialitems is attached reference form DI-SUP-310F01
40PSEMC Policy
Pacific Scientific EMC ndash Commercial Item Status
If claiming an exemption offeror must provide the appropriate information to determine commerciality Refusal to provide the required information can result in an assist audit being requested from the Defense Contract Audit Agency or other cognizant Government Audit Agencies and or a determination that goods andor services offered do not constitute a ldquocommercial itemrdquo
Offeror hereby represents that to the best of its knowledge information and belief goods andor services offered constitute a ldquocommercial itemrdquo as defined by FAR 2101 because it constitutes
A Commercial Item or Component Justification (required for any claim)
Key Inquiries and Summary of your Supporting Information
What is the relevant ldquotyperdquo of item enspenspenspenspensp
What are the types of items uses by the general public or by non-governmental entities for other than governmental purposes enspenspenspenspensp
What indicates the type of itemrsquos use described above is customary enspenspenspenspensp
Has the offered item itself (as opposed to the type of item) been sold or offered for sale
|_| Yes|_| NO
Are the offered itemrsquos sales (or offers to sale) to the general public
|_| Yes|_| NO
Please provide data regarding sales leases or licenses of this item and identification of the non-government use entities
ValueNon-Government Use Entities
(date)(date)
In addition as an appendix to this commercial item determination provide supporting documentation in the form of
1that have not materialized into sales
2that have not materialized into leases
3that have not materialized into licenses
1 Verification of sales history to source documents
2 Identification of customarily offered discounts for the item
3 Verification of the item to an existing catalog or price list and
4 Verification of historical data for an item previously not determined commercial that the offeror is now trying to qualify as a commercial item
(check box(es) as appropriate)
|_| I Unmodified Commercial Items or Components (Complete Section A)
Any item other than real property that is a of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes and
(i) Has been sold leased or licensed to the general public or
(ii) Has been offered for sale lease or license to the general public
|_| II Item Evolved from Commercial Items or Components
Any item that evolved from an item described in Part I (which is required if claiming this exemption) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace but will be available in the commercial marketplace in time to satisfy the delivery requirements under a United States Government solicitation
If claiming the item Evolved from Commercial Items or Components exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use Part I)
|_| Yes|_| NO
If yes describe the relationship of the modifications to the Federal Government requirement enspenspenspenspensp
What are the advances in technology or performance between the offered item and the commercial item on which it is based enspenspenspenspensp
What is your support for such advances enspenspenspenspensp
What is your support for availability of the item in time to meet requirements Is the claim availability reasonable enspenspenspenspensp
Please provide data regarding
(a) Currently pending offers including
(b) Planned Offers Including
In all instances scheduled for delivery no later than the delivery requirements under the
(c) Data in the format of Part I for completed sales of the item from which the ldquocommercial itemrdquo evolved
|_| III Modified Commercial Items or Components
Any item that would satisfy a criterion expressed in Part I or II hereof but for -
|_| (i) Modifications of a type customarily available in the commercial marketplace
If claiming Modified Commercial Item or Components that are of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use part I or parts II and II)
|_| Yes|_| NO
What are the modifications that would be made to the commercial item enspenspenspenspensp
Are the modifications of a type customarily available in the commercial marketplace
|_| Yes|_| NO
Summarize your support for customary availability of the modification in the commercial marketplace enspenspenspenspensp
|_| (ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet federal government requirements ldquoMinor modificationsrdquo means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component or change the purpose of a process Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product Dollar values and percentages may be used as guideposts but are not conclusive evidence that a modification is minor
If claiming Modified Commercial Items or Components that are not of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Are the modifications made to satisfy Federal Government requirements
|_| Yes|_| NO
Do the modifications alter the nongovernmental function or essential physical characteristics of the item
|_| Yes|_| NO
If yes what are the alterations enspenspenspenspensp
Does the modified item retain a predominance of nongovernmental functions or physical characteristics
|_| Yes|_| NO
Summarize your support describing the value of the modifications in comparison to the value of the final product enspenspenspenspensp
Summarize your support for the magnitude or size of the modifications in relation to the magnitude or size of the final product enspenspenspenspensp
Are there any other factors which would allow you to conclude that the modifications are minor
|_| Yes|_| NO
If yes what are they enspenspenspenspensp
Based on the above does the modification qualify as a minor modification
|_| Yes|_| NO
Please provide data regarding the minor modification and the total price to PSEMC of Minor Modifications
Price to PSEMC of all Minor Modifications at quantities proposed in this pricing action enspenspenspenspensp
Minor modifications that exceed the thresholds in FAR 15403-1(c)(3)(iii)(B) are subject to the Certified Cost or Pricing Data requirements and must be proposed as described by FAR 15408 Table 152
|_| IV Commercial Items Support Services
Installation services maintenance services repair services training services and other services if -
(i) Such services are procured for support of an item referred to in Parts I II III or IV hereof regardless of whether such services are provided by the same source or at the same time as the item and
(ii) The source of such services provided similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government
If claiming Commercial Item Support Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services procured for the support of a commercial item which qualifies under a preceding part
|_| Yes|_| NO
Describe the nature of the services and how they support the commercial item enspenspenspenspensp
Are the services provided at the same time to the general public and the Federal Government
|_| Yes|_| NO
Are the terms and conditions for the services similar to those offered to the general public
|_| Yes|_| NO
Describe differences enspenspenspenspensp
Please provide data regarding
a Open and completed contracts including
b Pending offers including
|_| V Any Combination of Items
Meeting the requirements of Parts I II III or IV hereof that are of a type customarily combined and sold in combination to the general public
If you have checked the above box and are claiming the Any Combination of Items exemption please attach hereto information as requ3sted for Parts I II III and IV
|_| VI Other Commercial Services
Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions For purposes of these services -
(i) Catalog price means a price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor is either published or otherwise available for inspection by customers and states prices at which sales are currently or were last made to a significant number of buyers constituting the general public and
(ii) Market prices means current prices that are established in the course of ordinary trade between buyers and sellers free to bargain and that can be substantiated through competition or from source independent of the offerors
If claiming the Other Commercial Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services sold competitively in substantial quantities in the commercial marketplace
|_| Yes|_| NO
If no are the services of a type sold in substantial quantities in the commercial marketplace
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If yes what is the ldquotyperdquo of service enspenspenspenspensp
Summarize your support for same enspenspenspenspensp
Are the prices quoted for specific tasks performed or specific outcomes to be achieved
|_| Yes|_| NO
Are the services offered consistent with your standard terms and conditions
|_| Yes|_| NO
Are the services of a type sold at catalog or market prices
|_| Yes|_| NO
If sold at catalog price is the price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor
|_| Yes|_| NO
If sold at catalog price is the catalog or its equivalent either published or otherwise available for inspection by customers
|_| Yes|_| NO
Summarize your support for same (include a copy of the catalog or provide location) enspenspenspenspensp
If sold at a catalog price are the listed prices those at which sales are currently or were last made to a significant number of buyers in the general public
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If sold at a market price are the prices established in the course of ordinary trade between buyers and sellers free to bargain
|_| Yes|_| NO
Summarize you support for same enspenspenspenspensp
If sold at market price can the price be substantiated through competition or from sources independent of the offeror
|_| Yes|_| NO
Summarize your support for same
Please provide data regarding
(a) Open and completed contracts including
(b) Pending Offers including
|_| VII Any Item Combination of Items or Service
Referred to in Parts I through VI hereof notwithstanding the fact that the item combination of items or service is transferred between or among separate divisions subsidiaries or affiliates of the Offeror
If you have checked the above box and are claiming the ldquoAny item combination of items or Servicerdquo exemption please provide data regarding
|_| VIII Non-developmental Items
A non-developmental item as defined in FAR 2101 which has been developed exclusively at private expense and sold in substantial quantities on a competitive basis to multiple State and local governments
If claiming the Non-developmental Items exemption then the following must be provided
Key Inquiries and Summary of Supplierrsquos Supporting Information
Was the item previously developed
|_| Yes|_| NO
Was the item used exclusively for governmental purposes by a Federal agency a State or local government or a foreign government with which the United States has mutual defense cooperation agreement
|_| Yes|_| NO
If the item is to be modified do the modifications comply with Part III guidance on modifications
|_| Yes|_| NO
If the item is not yet in use does it otherwise qualify as a non-developmental item
|_| Yes|_| NO
Was the item developed exclusively at private expense
|_| Yes|_| NO
Is the item sold in substantial quantities on a competitive basis to multiple State and local governments
|_| Yes|_| NO
Please provide data regarding
|_| IX General Inquiries
Does the item qualify as a combination of items under Parts I II III and IV above
|_| Yes|_| NO
Has the item or services previously been determined to be commercial
|_| Yes|_| NO
If so by whom enspenspenspenspensp
|_| X Other Information
Is there other information of which you are aware that would supplement the information provided and would help substantiate whether the item or service is commercial
|_| Yes|_| NO
Have you provided such information
|_| Yes|_| NO
List such information enspenspenspenspensp
|_| XI Supplier Determination
Offeror hereby represents that the foregoing information is accurate and complete and that to the best of its knowledge information and belief goods and or services offered currently constitute ldquoa commercial itemrdquo as defined by FAR 2101
For PSEMC Internal Use Only
XII Supplier Determination
Supplier has claimed that the item component or service identified above is a commercial item under the definition at FAR 2101 I have reviewed and summarized the supplierrsquos support for that claim in the appropriate sections above Based on such review of such support information and any other information identified elsewhere herein I conclude that the supplier
|_| HAS |_| HAS NOT Supported its claim of commercial item status under the definition at FAR 2101
If the supplier HAS NOT supported its claim list reasons enspenspenspenspensp
Describe action plat to resolve enspenspenspenspensp
Comments enspenspenspenspensp
image1jpeg
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull This section of Table 15-2 describes the format an estimating approach we
are required to use when developing a proposal to modify an existingcontract In addition to the cost element breakdowns required as describedin the previous slides when there is a modification or change proposal FARalso requires the following table to be inserted into your proposal
41
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals
42FAR 15408 Table 15-2 III B
B Change Orders modifications and claims
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
Column 2 includes the cost of all work deleted This
includes cost of work deleted already performed (amount in Column 3) and
cost of work deleted not yet performed (Column 4)
Column 3 includes the cost of deleted work already
performed This amount will not be included in the credit (delete) adjustment amount (eg we will not give back costs already
incurred)
Column 4 includes cost for deleted work not yet performed ndash must be priced using current
estimates (but the current estimate may be the same as
the original estimate) ndash it is develed similar to a normal ldquoaddrdquo proposal with a few
exceptions
Column 5 includes the cost of the
new work and is developed as we do any
other proposal
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull Detail for columns listed on previous page
1 Enter appropriate cost element2 Enter current estimates of what it would take to complete the deleted work that
has not yet been performed3 Enter current cost of deleted work already performed This should be based on
actuals and copies to support these actuals should be included in the proposal4 Enter the net cost to be deleted (Column 2 minus Column 3)5 Enter your estimate for cost of work added by the change6 Enter the net cost of change (Column 5 minus Column 4)7 Identify where in your proposal the supporting documentation and basis of
estimate can be found for each of these sections
43FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull For purposes of determining if a proposal an cost or pricing data are
required from individual suppliers on a change proposal the absolute valueof the ldquodeleterdquo amount plus the ldquoaddrdquo amount is computed for each supplierthat exceeds the cost and pricing threshold (TINA)
bull Remember from FAR 15403-4(b) ndash if the absolute value for an individualsupplier exceeds the cost and pricing threshold (TINA) and the supplier iseither an actual supplier (will continue to provide partsservices on thiscontract) the supplier is required to provide a proposal and cost or pricingdata in support of the change proposal
bull Deleted amount is our current estimate (generally no the original contractvalue unless it is our current estimate)
44FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull If a supplierrsquos quantities are changing due to a modification the net delete
or add amount is used to determine if the supplier exceeds the cost andpricing threshold (TINA)
bull The estimator should not consider the old quantity as the delete and thenew quantity as the add (eg in computing absolute value) whendetermining if the supplier exceeds the threshold in cases where quantitiesare changing
bull The development of the appropriate deletion is not simply the estimatedcost of the deleted quantity ndash this will overstate the credit
45FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals Cost of WorkDeleted for a Partial Deleted Quantitybull In cases where part of a material quantity is being deleted (eg original
contract requires 100 widgets and the contract is modified to delete 30 ofthem) one method of estimating the amount of the delete is
1 Develop a current estimate of the extended cost for the item(s) given the originalquantity
2 Develop a current estimate of the extended cost for the items at the lower(remaining) quantity
3 The delta between these two values represents the amount of the delete
bull The same method can be used if the contract is modified to increase aquantity for a part
46FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklist
47
bull The Supplier Proposal Adequacy Checklist is accessed from the externalPSEMC supplier website
bull Additional supplier proposal guidance and resources are available(information templates and tools to assist in building a FAR compliantproposal
bull Supplier proposal guidance
bull Supplier Proposal Adequacy Guidelines
bull PSEMC document templates
bull Supplier proposal adequacy checklistbull Contract pricing proposal cover sheet
httpspsemccomsuppliers
- Strategic Affordability Analysis
- Purpose of this Guideline
- Table of Contents
- Table of Contents
- Supplier Proposal Adequacy Checklist
- Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
- Cover Sheet
- Cover Sheet Example ndash Reference Form DI-SUP-105F02
- Index
- Index Example
- Cost Element Breakdown by Line Item
- Cost Element Breakdown by Line Item Example
- Summary Cost Element Breakdown
- Summary Cost Element Breakdown - Example
- Summary Cost Element Breakdown - Example
- Material
- Material
- Individual Bills of Material Example
- Consolidated Bill of Material Example
- Consolidated Bill of Material
- Material
- Material
- Material
- Labor
- Labor
- Labor
- Labor Hours Example
- Labor Hours Example ndash Actual Production History
- Labor Hours Examples ndash Basis of Estimate
- Other Direct Costs (ODC)
- Nonrecurring Expenses (NRE)
- NRE
- Rates
- Rates
- Summary
- Summary
- Other Types of Proposals
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals Cost of WorkDeleted for a Partial Deleted Quantity
- Supplier Proposal Adequacy Checklist
-
| Buyer (Type or Print Name) | Date |
| Offeror | |||
| By | |||
| Title | |||
| Date |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp | ||
| (iii) Total number of customers involved in such sales | enspenspenspenspensp |
| (a) Transfer price(s) of such goods | $ enspenspenspenspensp | ||
| (b) Total units of such goods and or | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| Unmodified Items Identified in Part 1 | Modified Items Proposed to PSMEC | Unit Value of Modification | |||||||
| Unmodified Item | Unmodified Price | Modified Item | Modified Price to PSEMC | ||||||
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| To the general public in the time-frame beginning | enspenspenspenspensp | enspenspenspenspensp | and ending | enspenspenspenspensp |
| (a) Sales | |||||
| (b) Leases | |||||
| (c) Licenses | |||||
| (d) Offers to Sell 1 | |||||
| (e) Offers to Lease 2 | |||||
| (f) Offers to License 3 |
| Part Number | |||
| Description | |||
| Offeror |
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull If you claim one or more of your parts are commercial you need to support
your position by providing the following information
bull Copies of applicable portions of a company catalogue or website address that shows the item with a description and unit price
bull Show that these items can be purchased by the general public or nongovernmentalagency
bull If a website or catalogue is not available copies of invoices showing the sale of these items to nongovernment entities is sufficient
39FAR 2101 and FAR 15403
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull PSEMC policy requires suppliers to complete a PSEMC Supplier Proposal
Adequacy Checklist (sent with the RFP) for all proposals where the supplierclaims its parts are commercial
bull An example of the Supplier Proposal Adequacy Checklist for commercialitems is attached reference form DI-SUP-310F01
40PSEMC Policy
Pacific Scientific EMC ndash Commercial Item Status
If claiming an exemption offeror must provide the appropriate information to determine commerciality Refusal to provide the required information can result in an assist audit being requested from the Defense Contract Audit Agency or other cognizant Government Audit Agencies and or a determination that goods andor services offered do not constitute a ldquocommercial itemrdquo
Offeror hereby represents that to the best of its knowledge information and belief goods andor services offered constitute a ldquocommercial itemrdquo as defined by FAR 2101 because it constitutes
A Commercial Item or Component Justification (required for any claim)
Key Inquiries and Summary of your Supporting Information
What is the relevant ldquotyperdquo of item enspenspenspenspensp
What are the types of items uses by the general public or by non-governmental entities for other than governmental purposes enspenspenspenspensp
What indicates the type of itemrsquos use described above is customary enspenspenspenspensp
Has the offered item itself (as opposed to the type of item) been sold or offered for sale
|_| Yes|_| NO
Are the offered itemrsquos sales (or offers to sale) to the general public
|_| Yes|_| NO
Please provide data regarding sales leases or licenses of this item and identification of the non-government use entities
ValueNon-Government Use Entities
(date)(date)
In addition as an appendix to this commercial item determination provide supporting documentation in the form of
1that have not materialized into sales
2that have not materialized into leases
3that have not materialized into licenses
1 Verification of sales history to source documents
2 Identification of customarily offered discounts for the item
3 Verification of the item to an existing catalog or price list and
4 Verification of historical data for an item previously not determined commercial that the offeror is now trying to qualify as a commercial item
(check box(es) as appropriate)
|_| I Unmodified Commercial Items or Components (Complete Section A)
Any item other than real property that is a of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes and
(i) Has been sold leased or licensed to the general public or
(ii) Has been offered for sale lease or license to the general public
|_| II Item Evolved from Commercial Items or Components
Any item that evolved from an item described in Part I (which is required if claiming this exemption) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace but will be available in the commercial marketplace in time to satisfy the delivery requirements under a United States Government solicitation
If claiming the item Evolved from Commercial Items or Components exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use Part I)
|_| Yes|_| NO
If yes describe the relationship of the modifications to the Federal Government requirement enspenspenspenspensp
What are the advances in technology or performance between the offered item and the commercial item on which it is based enspenspenspenspensp
What is your support for such advances enspenspenspenspensp
What is your support for availability of the item in time to meet requirements Is the claim availability reasonable enspenspenspenspensp
Please provide data regarding
(a) Currently pending offers including
(b) Planned Offers Including
In all instances scheduled for delivery no later than the delivery requirements under the
(c) Data in the format of Part I for completed sales of the item from which the ldquocommercial itemrdquo evolved
|_| III Modified Commercial Items or Components
Any item that would satisfy a criterion expressed in Part I or II hereof but for -
|_| (i) Modifications of a type customarily available in the commercial marketplace
If claiming Modified Commercial Item or Components that are of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use part I or parts II and II)
|_| Yes|_| NO
What are the modifications that would be made to the commercial item enspenspenspenspensp
Are the modifications of a type customarily available in the commercial marketplace
|_| Yes|_| NO
Summarize your support for customary availability of the modification in the commercial marketplace enspenspenspenspensp
|_| (ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet federal government requirements ldquoMinor modificationsrdquo means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component or change the purpose of a process Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product Dollar values and percentages may be used as guideposts but are not conclusive evidence that a modification is minor
If claiming Modified Commercial Items or Components that are not of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Are the modifications made to satisfy Federal Government requirements
|_| Yes|_| NO
Do the modifications alter the nongovernmental function or essential physical characteristics of the item
|_| Yes|_| NO
If yes what are the alterations enspenspenspenspensp
Does the modified item retain a predominance of nongovernmental functions or physical characteristics
|_| Yes|_| NO
Summarize your support describing the value of the modifications in comparison to the value of the final product enspenspenspenspensp
Summarize your support for the magnitude or size of the modifications in relation to the magnitude or size of the final product enspenspenspenspensp
Are there any other factors which would allow you to conclude that the modifications are minor
|_| Yes|_| NO
If yes what are they enspenspenspenspensp
Based on the above does the modification qualify as a minor modification
|_| Yes|_| NO
Please provide data regarding the minor modification and the total price to PSEMC of Minor Modifications
Price to PSEMC of all Minor Modifications at quantities proposed in this pricing action enspenspenspenspensp
Minor modifications that exceed the thresholds in FAR 15403-1(c)(3)(iii)(B) are subject to the Certified Cost or Pricing Data requirements and must be proposed as described by FAR 15408 Table 152
|_| IV Commercial Items Support Services
Installation services maintenance services repair services training services and other services if -
(i) Such services are procured for support of an item referred to in Parts I II III or IV hereof regardless of whether such services are provided by the same source or at the same time as the item and
(ii) The source of such services provided similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government
If claiming Commercial Item Support Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services procured for the support of a commercial item which qualifies under a preceding part
|_| Yes|_| NO
Describe the nature of the services and how they support the commercial item enspenspenspenspensp
Are the services provided at the same time to the general public and the Federal Government
|_| Yes|_| NO
Are the terms and conditions for the services similar to those offered to the general public
|_| Yes|_| NO
Describe differences enspenspenspenspensp
Please provide data regarding
a Open and completed contracts including
b Pending offers including
|_| V Any Combination of Items
Meeting the requirements of Parts I II III or IV hereof that are of a type customarily combined and sold in combination to the general public
If you have checked the above box and are claiming the Any Combination of Items exemption please attach hereto information as requ3sted for Parts I II III and IV
|_| VI Other Commercial Services
Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions For purposes of these services -
(i) Catalog price means a price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor is either published or otherwise available for inspection by customers and states prices at which sales are currently or were last made to a significant number of buyers constituting the general public and
(ii) Market prices means current prices that are established in the course of ordinary trade between buyers and sellers free to bargain and that can be substantiated through competition or from source independent of the offerors
If claiming the Other Commercial Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services sold competitively in substantial quantities in the commercial marketplace
|_| Yes|_| NO
If no are the services of a type sold in substantial quantities in the commercial marketplace
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If yes what is the ldquotyperdquo of service enspenspenspenspensp
Summarize your support for same enspenspenspenspensp
Are the prices quoted for specific tasks performed or specific outcomes to be achieved
|_| Yes|_| NO
Are the services offered consistent with your standard terms and conditions
|_| Yes|_| NO
Are the services of a type sold at catalog or market prices
|_| Yes|_| NO
If sold at catalog price is the price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor
|_| Yes|_| NO
If sold at catalog price is the catalog or its equivalent either published or otherwise available for inspection by customers
|_| Yes|_| NO
Summarize your support for same (include a copy of the catalog or provide location) enspenspenspenspensp
If sold at a catalog price are the listed prices those at which sales are currently or were last made to a significant number of buyers in the general public
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If sold at a market price are the prices established in the course of ordinary trade between buyers and sellers free to bargain
|_| Yes|_| NO
Summarize you support for same enspenspenspenspensp
If sold at market price can the price be substantiated through competition or from sources independent of the offeror
|_| Yes|_| NO
Summarize your support for same
Please provide data regarding
(a) Open and completed contracts including
(b) Pending Offers including
|_| VII Any Item Combination of Items or Service
Referred to in Parts I through VI hereof notwithstanding the fact that the item combination of items or service is transferred between or among separate divisions subsidiaries or affiliates of the Offeror
If you have checked the above box and are claiming the ldquoAny item combination of items or Servicerdquo exemption please provide data regarding
|_| VIII Non-developmental Items
A non-developmental item as defined in FAR 2101 which has been developed exclusively at private expense and sold in substantial quantities on a competitive basis to multiple State and local governments
If claiming the Non-developmental Items exemption then the following must be provided
Key Inquiries and Summary of Supplierrsquos Supporting Information
Was the item previously developed
|_| Yes|_| NO
Was the item used exclusively for governmental purposes by a Federal agency a State or local government or a foreign government with which the United States has mutual defense cooperation agreement
|_| Yes|_| NO
If the item is to be modified do the modifications comply with Part III guidance on modifications
|_| Yes|_| NO
If the item is not yet in use does it otherwise qualify as a non-developmental item
|_| Yes|_| NO
Was the item developed exclusively at private expense
|_| Yes|_| NO
Is the item sold in substantial quantities on a competitive basis to multiple State and local governments
|_| Yes|_| NO
Please provide data regarding
|_| IX General Inquiries
Does the item qualify as a combination of items under Parts I II III and IV above
|_| Yes|_| NO
Has the item or services previously been determined to be commercial
|_| Yes|_| NO
If so by whom enspenspenspenspensp
|_| X Other Information
Is there other information of which you are aware that would supplement the information provided and would help substantiate whether the item or service is commercial
|_| Yes|_| NO
Have you provided such information
|_| Yes|_| NO
List such information enspenspenspenspensp
|_| XI Supplier Determination
Offeror hereby represents that the foregoing information is accurate and complete and that to the best of its knowledge information and belief goods and or services offered currently constitute ldquoa commercial itemrdquo as defined by FAR 2101
For PSEMC Internal Use Only
XII Supplier Determination
Supplier has claimed that the item component or service identified above is a commercial item under the definition at FAR 2101 I have reviewed and summarized the supplierrsquos support for that claim in the appropriate sections above Based on such review of such support information and any other information identified elsewhere herein I conclude that the supplier
|_| HAS |_| HAS NOT Supported its claim of commercial item status under the definition at FAR 2101
If the supplier HAS NOT supported its claim list reasons enspenspenspenspensp
Describe action plat to resolve enspenspenspenspensp
Comments enspenspenspenspensp
image1jpeg
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull This section of Table 15-2 describes the format an estimating approach we
are required to use when developing a proposal to modify an existingcontract In addition to the cost element breakdowns required as describedin the previous slides when there is a modification or change proposal FARalso requires the following table to be inserted into your proposal
41
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals
42FAR 15408 Table 15-2 III B
B Change Orders modifications and claims
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
Column 2 includes the cost of all work deleted This
includes cost of work deleted already performed (amount in Column 3) and
cost of work deleted not yet performed (Column 4)
Column 3 includes the cost of deleted work already
performed This amount will not be included in the credit (delete) adjustment amount (eg we will not give back costs already
incurred)
Column 4 includes cost for deleted work not yet performed ndash must be priced using current
estimates (but the current estimate may be the same as
the original estimate) ndash it is develed similar to a normal ldquoaddrdquo proposal with a few
exceptions
Column 5 includes the cost of the
new work and is developed as we do any
other proposal
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull Detail for columns listed on previous page
1 Enter appropriate cost element2 Enter current estimates of what it would take to complete the deleted work that
has not yet been performed3 Enter current cost of deleted work already performed This should be based on
actuals and copies to support these actuals should be included in the proposal4 Enter the net cost to be deleted (Column 2 minus Column 3)5 Enter your estimate for cost of work added by the change6 Enter the net cost of change (Column 5 minus Column 4)7 Identify where in your proposal the supporting documentation and basis of
estimate can be found for each of these sections
43FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull For purposes of determining if a proposal an cost or pricing data are
required from individual suppliers on a change proposal the absolute valueof the ldquodeleterdquo amount plus the ldquoaddrdquo amount is computed for each supplierthat exceeds the cost and pricing threshold (TINA)
bull Remember from FAR 15403-4(b) ndash if the absolute value for an individualsupplier exceeds the cost and pricing threshold (TINA) and the supplier iseither an actual supplier (will continue to provide partsservices on thiscontract) the supplier is required to provide a proposal and cost or pricingdata in support of the change proposal
bull Deleted amount is our current estimate (generally no the original contractvalue unless it is our current estimate)
44FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull If a supplierrsquos quantities are changing due to a modification the net delete
or add amount is used to determine if the supplier exceeds the cost andpricing threshold (TINA)
bull The estimator should not consider the old quantity as the delete and thenew quantity as the add (eg in computing absolute value) whendetermining if the supplier exceeds the threshold in cases where quantitiesare changing
bull The development of the appropriate deletion is not simply the estimatedcost of the deleted quantity ndash this will overstate the credit
45FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals Cost of WorkDeleted for a Partial Deleted Quantitybull In cases where part of a material quantity is being deleted (eg original
contract requires 100 widgets and the contract is modified to delete 30 ofthem) one method of estimating the amount of the delete is
1 Develop a current estimate of the extended cost for the item(s) given the originalquantity
2 Develop a current estimate of the extended cost for the items at the lower(remaining) quantity
3 The delta between these two values represents the amount of the delete
bull The same method can be used if the contract is modified to increase aquantity for a part
46FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklist
47
bull The Supplier Proposal Adequacy Checklist is accessed from the externalPSEMC supplier website
bull Additional supplier proposal guidance and resources are available(information templates and tools to assist in building a FAR compliantproposal
bull Supplier proposal guidance
bull Supplier Proposal Adequacy Guidelines
bull PSEMC document templates
bull Supplier proposal adequacy checklistbull Contract pricing proposal cover sheet
httpspsemccomsuppliers
- Strategic Affordability Analysis
- Purpose of this Guideline
- Table of Contents
- Table of Contents
- Supplier Proposal Adequacy Checklist
- Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
- Cover Sheet
- Cover Sheet Example ndash Reference Form DI-SUP-105F02
- Index
- Index Example
- Cost Element Breakdown by Line Item
- Cost Element Breakdown by Line Item Example
- Summary Cost Element Breakdown
- Summary Cost Element Breakdown - Example
- Summary Cost Element Breakdown - Example
- Material
- Material
- Individual Bills of Material Example
- Consolidated Bill of Material Example
- Consolidated Bill of Material
- Material
- Material
- Material
- Labor
- Labor
- Labor
- Labor Hours Example
- Labor Hours Example ndash Actual Production History
- Labor Hours Examples ndash Basis of Estimate
- Other Direct Costs (ODC)
- Nonrecurring Expenses (NRE)
- NRE
- Rates
- Rates
- Summary
- Summary
- Other Types of Proposals
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals Cost of WorkDeleted for a Partial Deleted Quantity
- Supplier Proposal Adequacy Checklist
-
| Buyer (Type or Print Name) | Date |
| Offeror | |||
| By | |||
| Title | |||
| Date |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp | ||
| (iii) Total number of customers involved in such sales | enspenspenspenspensp |
| (a) Transfer price(s) of such goods | $ enspenspenspenspensp | ||
| (b) Total units of such goods and or | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| Unmodified Items Identified in Part 1 | Modified Items Proposed to PSMEC | Unit Value of Modification | |||||||
| Unmodified Item | Unmodified Price | Modified Item | Modified Price to PSEMC | ||||||
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| To the general public in the time-frame beginning | enspenspenspenspensp | enspenspenspenspensp | and ending | enspenspenspenspensp |
| (a) Sales | |||||
| (b) Leases | |||||
| (c) Licenses | |||||
| (d) Offers to Sell 1 | |||||
| (e) Offers to Lease 2 | |||||
| (f) Offers to License 3 |
| Part Number | |||
| Description | |||
| Offeror |
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Commercial Items (if applicable)bull PSEMC policy requires suppliers to complete a PSEMC Supplier Proposal
Adequacy Checklist (sent with the RFP) for all proposals where the supplierclaims its parts are commercial
bull An example of the Supplier Proposal Adequacy Checklist for commercialitems is attached reference form DI-SUP-310F01
40PSEMC Policy
Pacific Scientific EMC ndash Commercial Item Status
If claiming an exemption offeror must provide the appropriate information to determine commerciality Refusal to provide the required information can result in an assist audit being requested from the Defense Contract Audit Agency or other cognizant Government Audit Agencies and or a determination that goods andor services offered do not constitute a ldquocommercial itemrdquo
Offeror hereby represents that to the best of its knowledge information and belief goods andor services offered constitute a ldquocommercial itemrdquo as defined by FAR 2101 because it constitutes
A Commercial Item or Component Justification (required for any claim)
Key Inquiries and Summary of your Supporting Information
What is the relevant ldquotyperdquo of item enspenspenspenspensp
What are the types of items uses by the general public or by non-governmental entities for other than governmental purposes enspenspenspenspensp
What indicates the type of itemrsquos use described above is customary enspenspenspenspensp
Has the offered item itself (as opposed to the type of item) been sold or offered for sale
|_| Yes|_| NO
Are the offered itemrsquos sales (or offers to sale) to the general public
|_| Yes|_| NO
Please provide data regarding sales leases or licenses of this item and identification of the non-government use entities
ValueNon-Government Use Entities
(date)(date)
In addition as an appendix to this commercial item determination provide supporting documentation in the form of
1that have not materialized into sales
2that have not materialized into leases
3that have not materialized into licenses
1 Verification of sales history to source documents
2 Identification of customarily offered discounts for the item
3 Verification of the item to an existing catalog or price list and
4 Verification of historical data for an item previously not determined commercial that the offeror is now trying to qualify as a commercial item
(check box(es) as appropriate)
|_| I Unmodified Commercial Items or Components (Complete Section A)
Any item other than real property that is a of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes and
(i) Has been sold leased or licensed to the general public or
(ii) Has been offered for sale lease or license to the general public
|_| II Item Evolved from Commercial Items or Components
Any item that evolved from an item described in Part I (which is required if claiming this exemption) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace but will be available in the commercial marketplace in time to satisfy the delivery requirements under a United States Government solicitation
If claiming the item Evolved from Commercial Items or Components exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use Part I)
|_| Yes|_| NO
If yes describe the relationship of the modifications to the Federal Government requirement enspenspenspenspensp
What are the advances in technology or performance between the offered item and the commercial item on which it is based enspenspenspenspensp
What is your support for such advances enspenspenspenspensp
What is your support for availability of the item in time to meet requirements Is the claim availability reasonable enspenspenspenspensp
Please provide data regarding
(a) Currently pending offers including
(b) Planned Offers Including
In all instances scheduled for delivery no later than the delivery requirements under the
(c) Data in the format of Part I for completed sales of the item from which the ldquocommercial itemrdquo evolved
|_| III Modified Commercial Items or Components
Any item that would satisfy a criterion expressed in Part I or II hereof but for -
|_| (i) Modifications of a type customarily available in the commercial marketplace
If claiming Modified Commercial Item or Components that are of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Key Inquiries and Summary of Your Supporting Information
Does the item on which the offered item is based qualify as a commercial item (use part I or parts II and II)
|_| Yes|_| NO
What are the modifications that would be made to the commercial item enspenspenspenspensp
Are the modifications of a type customarily available in the commercial marketplace
|_| Yes|_| NO
Summarize your support for customary availability of the modification in the commercial marketplace enspenspenspenspensp
|_| (ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet federal government requirements ldquoMinor modificationsrdquo means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component or change the purpose of a process Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product Dollar values and percentages may be used as guideposts but are not conclusive evidence that a modification is minor
If claiming Modified Commercial Items or Components that are not of a type customarily available in the commercial marketplace then the following information (in addition to Section A) must be provided
Are the modifications made to satisfy Federal Government requirements
|_| Yes|_| NO
Do the modifications alter the nongovernmental function or essential physical characteristics of the item
|_| Yes|_| NO
If yes what are the alterations enspenspenspenspensp
Does the modified item retain a predominance of nongovernmental functions or physical characteristics
|_| Yes|_| NO
Summarize your support describing the value of the modifications in comparison to the value of the final product enspenspenspenspensp
Summarize your support for the magnitude or size of the modifications in relation to the magnitude or size of the final product enspenspenspenspensp
Are there any other factors which would allow you to conclude that the modifications are minor
|_| Yes|_| NO
If yes what are they enspenspenspenspensp
Based on the above does the modification qualify as a minor modification
|_| Yes|_| NO
Please provide data regarding the minor modification and the total price to PSEMC of Minor Modifications
Price to PSEMC of all Minor Modifications at quantities proposed in this pricing action enspenspenspenspensp
Minor modifications that exceed the thresholds in FAR 15403-1(c)(3)(iii)(B) are subject to the Certified Cost or Pricing Data requirements and must be proposed as described by FAR 15408 Table 152
|_| IV Commercial Items Support Services
Installation services maintenance services repair services training services and other services if -
(i) Such services are procured for support of an item referred to in Parts I II III or IV hereof regardless of whether such services are provided by the same source or at the same time as the item and
(ii) The source of such services provided similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government
If claiming Commercial Item Support Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services procured for the support of a commercial item which qualifies under a preceding part
|_| Yes|_| NO
Describe the nature of the services and how they support the commercial item enspenspenspenspensp
Are the services provided at the same time to the general public and the Federal Government
|_| Yes|_| NO
Are the terms and conditions for the services similar to those offered to the general public
|_| Yes|_| NO
Describe differences enspenspenspenspensp
Please provide data regarding
a Open and completed contracts including
b Pending offers including
|_| V Any Combination of Items
Meeting the requirements of Parts I II III or IV hereof that are of a type customarily combined and sold in combination to the general public
If you have checked the above box and are claiming the Any Combination of Items exemption please attach hereto information as requ3sted for Parts I II III and IV
|_| VI Other Commercial Services
Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions For purposes of these services -
(i) Catalog price means a price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor is either published or otherwise available for inspection by customers and states prices at which sales are currently or were last made to a significant number of buyers constituting the general public and
(ii) Market prices means current prices that are established in the course of ordinary trade between buyers and sellers free to bargain and that can be substantiated through competition or from source independent of the offerors
If claiming the Other Commercial Services exemption then the following information must be provided
Key Inquiries and Summary of Your Supporting Information
Are the services sold competitively in substantial quantities in the commercial marketplace
|_| Yes|_| NO
If no are the services of a type sold in substantial quantities in the commercial marketplace
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If yes what is the ldquotyperdquo of service enspenspenspenspensp
Summarize your support for same enspenspenspenspensp
Are the prices quoted for specific tasks performed or specific outcomes to be achieved
|_| Yes|_| NO
Are the services offered consistent with your standard terms and conditions
|_| Yes|_| NO
Are the services of a type sold at catalog or market prices
|_| Yes|_| NO
If sold at catalog price is the price included in a catalog price list schedule or other form that is regularly maintained by the manufacturer or vendor
|_| Yes|_| NO
If sold at catalog price is the catalog or its equivalent either published or otherwise available for inspection by customers
|_| Yes|_| NO
Summarize your support for same (include a copy of the catalog or provide location) enspenspenspenspensp
If sold at a catalog price are the listed prices those at which sales are currently or were last made to a significant number of buyers in the general public
|_| Yes|_| NO
Summarize your support for same enspenspenspenspensp
If sold at a market price are the prices established in the course of ordinary trade between buyers and sellers free to bargain
|_| Yes|_| NO
Summarize you support for same enspenspenspenspensp
If sold at market price can the price be substantiated through competition or from sources independent of the offeror
|_| Yes|_| NO
Summarize your support for same
Please provide data regarding
(a) Open and completed contracts including
(b) Pending Offers including
|_| VII Any Item Combination of Items or Service
Referred to in Parts I through VI hereof notwithstanding the fact that the item combination of items or service is transferred between or among separate divisions subsidiaries or affiliates of the Offeror
If you have checked the above box and are claiming the ldquoAny item combination of items or Servicerdquo exemption please provide data regarding
|_| VIII Non-developmental Items
A non-developmental item as defined in FAR 2101 which has been developed exclusively at private expense and sold in substantial quantities on a competitive basis to multiple State and local governments
If claiming the Non-developmental Items exemption then the following must be provided
Key Inquiries and Summary of Supplierrsquos Supporting Information
Was the item previously developed
|_| Yes|_| NO
Was the item used exclusively for governmental purposes by a Federal agency a State or local government or a foreign government with which the United States has mutual defense cooperation agreement
|_| Yes|_| NO
If the item is to be modified do the modifications comply with Part III guidance on modifications
|_| Yes|_| NO
If the item is not yet in use does it otherwise qualify as a non-developmental item
|_| Yes|_| NO
Was the item developed exclusively at private expense
|_| Yes|_| NO
Is the item sold in substantial quantities on a competitive basis to multiple State and local governments
|_| Yes|_| NO
Please provide data regarding
|_| IX General Inquiries
Does the item qualify as a combination of items under Parts I II III and IV above
|_| Yes|_| NO
Has the item or services previously been determined to be commercial
|_| Yes|_| NO
If so by whom enspenspenspenspensp
|_| X Other Information
Is there other information of which you are aware that would supplement the information provided and would help substantiate whether the item or service is commercial
|_| Yes|_| NO
Have you provided such information
|_| Yes|_| NO
List such information enspenspenspenspensp
|_| XI Supplier Determination
Offeror hereby represents that the foregoing information is accurate and complete and that to the best of its knowledge information and belief goods and or services offered currently constitute ldquoa commercial itemrdquo as defined by FAR 2101
For PSEMC Internal Use Only
XII Supplier Determination
Supplier has claimed that the item component or service identified above is a commercial item under the definition at FAR 2101 I have reviewed and summarized the supplierrsquos support for that claim in the appropriate sections above Based on such review of such support information and any other information identified elsewhere herein I conclude that the supplier
|_| HAS |_| HAS NOT Supported its claim of commercial item status under the definition at FAR 2101
If the supplier HAS NOT supported its claim list reasons enspenspenspenspensp
Describe action plat to resolve enspenspenspenspensp
Comments enspenspenspenspensp
image1jpeg
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull This section of Table 15-2 describes the format an estimating approach we
are required to use when developing a proposal to modify an existingcontract In addition to the cost element breakdowns required as describedin the previous slides when there is a modification or change proposal FARalso requires the following table to be inserted into your proposal
41
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals
42FAR 15408 Table 15-2 III B
B Change Orders modifications and claims
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
Column 2 includes the cost of all work deleted This
includes cost of work deleted already performed (amount in Column 3) and
cost of work deleted not yet performed (Column 4)
Column 3 includes the cost of deleted work already
performed This amount will not be included in the credit (delete) adjustment amount (eg we will not give back costs already
incurred)
Column 4 includes cost for deleted work not yet performed ndash must be priced using current
estimates (but the current estimate may be the same as
the original estimate) ndash it is develed similar to a normal ldquoaddrdquo proposal with a few
exceptions
Column 5 includes the cost of the
new work and is developed as we do any
other proposal
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull Detail for columns listed on previous page
1 Enter appropriate cost element2 Enter current estimates of what it would take to complete the deleted work that
has not yet been performed3 Enter current cost of deleted work already performed This should be based on
actuals and copies to support these actuals should be included in the proposal4 Enter the net cost to be deleted (Column 2 minus Column 3)5 Enter your estimate for cost of work added by the change6 Enter the net cost of change (Column 5 minus Column 4)7 Identify where in your proposal the supporting documentation and basis of
estimate can be found for each of these sections
43FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull For purposes of determining if a proposal an cost or pricing data are
required from individual suppliers on a change proposal the absolute valueof the ldquodeleterdquo amount plus the ldquoaddrdquo amount is computed for each supplierthat exceeds the cost and pricing threshold (TINA)
bull Remember from FAR 15403-4(b) ndash if the absolute value for an individualsupplier exceeds the cost and pricing threshold (TINA) and the supplier iseither an actual supplier (will continue to provide partsservices on thiscontract) the supplier is required to provide a proposal and cost or pricingdata in support of the change proposal
bull Deleted amount is our current estimate (generally no the original contractvalue unless it is our current estimate)
44FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull If a supplierrsquos quantities are changing due to a modification the net delete
or add amount is used to determine if the supplier exceeds the cost andpricing threshold (TINA)
bull The estimator should not consider the old quantity as the delete and thenew quantity as the add (eg in computing absolute value) whendetermining if the supplier exceeds the threshold in cases where quantitiesare changing
bull The development of the appropriate deletion is not simply the estimatedcost of the deleted quantity ndash this will overstate the credit
45FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals Cost of WorkDeleted for a Partial Deleted Quantitybull In cases where part of a material quantity is being deleted (eg original
contract requires 100 widgets and the contract is modified to delete 30 ofthem) one method of estimating the amount of the delete is
1 Develop a current estimate of the extended cost for the item(s) given the originalquantity
2 Develop a current estimate of the extended cost for the items at the lower(remaining) quantity
3 The delta between these two values represents the amount of the delete
bull The same method can be used if the contract is modified to increase aquantity for a part
46FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklist
47
bull The Supplier Proposal Adequacy Checklist is accessed from the externalPSEMC supplier website
bull Additional supplier proposal guidance and resources are available(information templates and tools to assist in building a FAR compliantproposal
bull Supplier proposal guidance
bull Supplier Proposal Adequacy Guidelines
bull PSEMC document templates
bull Supplier proposal adequacy checklistbull Contract pricing proposal cover sheet
httpspsemccomsuppliers
- Strategic Affordability Analysis
- Purpose of this Guideline
- Table of Contents
- Table of Contents
- Supplier Proposal Adequacy Checklist
- Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
- Cover Sheet
- Cover Sheet Example ndash Reference Form DI-SUP-105F02
- Index
- Index Example
- Cost Element Breakdown by Line Item
- Cost Element Breakdown by Line Item Example
- Summary Cost Element Breakdown
- Summary Cost Element Breakdown - Example
- Summary Cost Element Breakdown - Example
- Material
- Material
- Individual Bills of Material Example
- Consolidated Bill of Material Example
- Consolidated Bill of Material
- Material
- Material
- Material
- Labor
- Labor
- Labor
- Labor Hours Example
- Labor Hours Example ndash Actual Production History
- Labor Hours Examples ndash Basis of Estimate
- Other Direct Costs (ODC)
- Nonrecurring Expenses (NRE)
- NRE
- Rates
- Rates
- Summary
- Summary
- Other Types of Proposals
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals Cost of WorkDeleted for a Partial Deleted Quantity
- Supplier Proposal Adequacy Checklist
-
| Buyer (Type or Print Name) | Date |
| Offeror | |||
| By | |||
| Title | |||
| Date |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp | ||
| (iii) Total number of customers involved in such sales | enspenspenspenspensp |
| (a) Transfer price(s) of such goods | $ enspenspenspenspensp | ||
| (b) Total units of such goods and or | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total for such services | enspenspenspenspensp |
| (i) Prices | $ enspenspenspenspensp | ||
| (ii) Total Units | enspenspenspenspensp |
| Unmodified Items Identified in Part 1 | Modified Items Proposed to PSMEC | Unit Value of Modification | |||||||
| Unmodified Item | Unmodified Price | Modified Item | Modified Price to PSEMC | ||||||
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| i Unit Prices | $ enspenspenspenspensp | ||
| ii Total Units | $ enspenspenspenspensp |
| To the general public in the time-frame beginning | enspenspenspenspensp | enspenspenspenspensp | and ending | enspenspenspenspensp |
| (a) Sales | |||||
| (b) Leases | |||||
| (c) Licenses | |||||
| (d) Offers to Sell 1 | |||||
| (e) Offers to Lease 2 | |||||
| (f) Offers to License 3 |
| Part Number | |||
| Description | |||
| Offeror |
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull This section of Table 15-2 describes the format an estimating approach we
are required to use when developing a proposal to modify an existingcontract In addition to the cost element breakdowns required as describedin the previous slides when there is a modification or change proposal FARalso requires the following table to be inserted into your proposal
41
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals
42FAR 15408 Table 15-2 III B
B Change Orders modifications and claims
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
Column 2 includes the cost of all work deleted This
includes cost of work deleted already performed (amount in Column 3) and
cost of work deleted not yet performed (Column 4)
Column 3 includes the cost of deleted work already
performed This amount will not be included in the credit (delete) adjustment amount (eg we will not give back costs already
incurred)
Column 4 includes cost for deleted work not yet performed ndash must be priced using current
estimates (but the current estimate may be the same as
the original estimate) ndash it is develed similar to a normal ldquoaddrdquo proposal with a few
exceptions
Column 5 includes the cost of the
new work and is developed as we do any
other proposal
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull Detail for columns listed on previous page
1 Enter appropriate cost element2 Enter current estimates of what it would take to complete the deleted work that
has not yet been performed3 Enter current cost of deleted work already performed This should be based on
actuals and copies to support these actuals should be included in the proposal4 Enter the net cost to be deleted (Column 2 minus Column 3)5 Enter your estimate for cost of work added by the change6 Enter the net cost of change (Column 5 minus Column 4)7 Identify where in your proposal the supporting documentation and basis of
estimate can be found for each of these sections
43FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull For purposes of determining if a proposal an cost or pricing data are
required from individual suppliers on a change proposal the absolute valueof the ldquodeleterdquo amount plus the ldquoaddrdquo amount is computed for each supplierthat exceeds the cost and pricing threshold (TINA)
bull Remember from FAR 15403-4(b) ndash if the absolute value for an individualsupplier exceeds the cost and pricing threshold (TINA) and the supplier iseither an actual supplier (will continue to provide partsservices on thiscontract) the supplier is required to provide a proposal and cost or pricingdata in support of the change proposal
bull Deleted amount is our current estimate (generally no the original contractvalue unless it is our current estimate)
44FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull If a supplierrsquos quantities are changing due to a modification the net delete
or add amount is used to determine if the supplier exceeds the cost andpricing threshold (TINA)
bull The estimator should not consider the old quantity as the delete and thenew quantity as the add (eg in computing absolute value) whendetermining if the supplier exceeds the threshold in cases where quantitiesare changing
bull The development of the appropriate deletion is not simply the estimatedcost of the deleted quantity ndash this will overstate the credit
45FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals Cost of WorkDeleted for a Partial Deleted Quantitybull In cases where part of a material quantity is being deleted (eg original
contract requires 100 widgets and the contract is modified to delete 30 ofthem) one method of estimating the amount of the delete is
1 Develop a current estimate of the extended cost for the item(s) given the originalquantity
2 Develop a current estimate of the extended cost for the items at the lower(remaining) quantity
3 The delta between these two values represents the amount of the delete
bull The same method can be used if the contract is modified to increase aquantity for a part
46FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklist
47
bull The Supplier Proposal Adequacy Checklist is accessed from the externalPSEMC supplier website
bull Additional supplier proposal guidance and resources are available(information templates and tools to assist in building a FAR compliantproposal
bull Supplier proposal guidance
bull Supplier Proposal Adequacy Guidelines
bull PSEMC document templates
bull Supplier proposal adequacy checklistbull Contract pricing proposal cover sheet
httpspsemccomsuppliers
- Strategic Affordability Analysis
- Purpose of this Guideline
- Table of Contents
- Table of Contents
- Supplier Proposal Adequacy Checklist
- Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
- Cover Sheet
- Cover Sheet Example ndash Reference Form DI-SUP-105F02
- Index
- Index Example
- Cost Element Breakdown by Line Item
- Cost Element Breakdown by Line Item Example
- Summary Cost Element Breakdown
- Summary Cost Element Breakdown - Example
- Summary Cost Element Breakdown - Example
- Material
- Material
- Individual Bills of Material Example
- Consolidated Bill of Material Example
- Consolidated Bill of Material
- Material
- Material
- Material
- Labor
- Labor
- Labor
- Labor Hours Example
- Labor Hours Example ndash Actual Production History
- Labor Hours Examples ndash Basis of Estimate
- Other Direct Costs (ODC)
- Nonrecurring Expenses (NRE)
- NRE
- Rates
- Rates
- Summary
- Summary
- Other Types of Proposals
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals Cost of WorkDeleted for a Partial Deleted Quantity
- Supplier Proposal Adequacy Checklist
-
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals
42FAR 15408 Table 15-2 III B
B Change Orders modifications and claims
Cost ElementsEstimated Cost of all
Work Deleted
Cost of Deleted Work
Already Performed
Net Cost to be Deleted
Cost of Work Added
Net cost of Change
Reference
(1) (2) (3) (4) (5) (6) (7)
Column 2 includes the cost of all work deleted This
includes cost of work deleted already performed (amount in Column 3) and
cost of work deleted not yet performed (Column 4)
Column 3 includes the cost of deleted work already
performed This amount will not be included in the credit (delete) adjustment amount (eg we will not give back costs already
incurred)
Column 4 includes cost for deleted work not yet performed ndash must be priced using current
estimates (but the current estimate may be the same as
the original estimate) ndash it is develed similar to a normal ldquoaddrdquo proposal with a few
exceptions
Column 5 includes the cost of the
new work and is developed as we do any
other proposal
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull Detail for columns listed on previous page
1 Enter appropriate cost element2 Enter current estimates of what it would take to complete the deleted work that
has not yet been performed3 Enter current cost of deleted work already performed This should be based on
actuals and copies to support these actuals should be included in the proposal4 Enter the net cost to be deleted (Column 2 minus Column 3)5 Enter your estimate for cost of work added by the change6 Enter the net cost of change (Column 5 minus Column 4)7 Identify where in your proposal the supporting documentation and basis of
estimate can be found for each of these sections
43FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull For purposes of determining if a proposal an cost or pricing data are
required from individual suppliers on a change proposal the absolute valueof the ldquodeleterdquo amount plus the ldquoaddrdquo amount is computed for each supplierthat exceeds the cost and pricing threshold (TINA)
bull Remember from FAR 15403-4(b) ndash if the absolute value for an individualsupplier exceeds the cost and pricing threshold (TINA) and the supplier iseither an actual supplier (will continue to provide partsservices on thiscontract) the supplier is required to provide a proposal and cost or pricingdata in support of the change proposal
bull Deleted amount is our current estimate (generally no the original contractvalue unless it is our current estimate)
44FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull If a supplierrsquos quantities are changing due to a modification the net delete
or add amount is used to determine if the supplier exceeds the cost andpricing threshold (TINA)
bull The estimator should not consider the old quantity as the delete and thenew quantity as the add (eg in computing absolute value) whendetermining if the supplier exceeds the threshold in cases where quantitiesare changing
bull The development of the appropriate deletion is not simply the estimatedcost of the deleted quantity ndash this will overstate the credit
45FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals Cost of WorkDeleted for a Partial Deleted Quantitybull In cases where part of a material quantity is being deleted (eg original
contract requires 100 widgets and the contract is modified to delete 30 ofthem) one method of estimating the amount of the delete is
1 Develop a current estimate of the extended cost for the item(s) given the originalquantity
2 Develop a current estimate of the extended cost for the items at the lower(remaining) quantity
3 The delta between these two values represents the amount of the delete
bull The same method can be used if the contract is modified to increase aquantity for a part
46FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklist
47
bull The Supplier Proposal Adequacy Checklist is accessed from the externalPSEMC supplier website
bull Additional supplier proposal guidance and resources are available(information templates and tools to assist in building a FAR compliantproposal
bull Supplier proposal guidance
bull Supplier Proposal Adequacy Guidelines
bull PSEMC document templates
bull Supplier proposal adequacy checklistbull Contract pricing proposal cover sheet
httpspsemccomsuppliers
- Strategic Affordability Analysis
- Purpose of this Guideline
- Table of Contents
- Table of Contents
- Supplier Proposal Adequacy Checklist
- Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
- Cover Sheet
- Cover Sheet Example ndash Reference Form DI-SUP-105F02
- Index
- Index Example
- Cost Element Breakdown by Line Item
- Cost Element Breakdown by Line Item Example
- Summary Cost Element Breakdown
- Summary Cost Element Breakdown - Example
- Summary Cost Element Breakdown - Example
- Material
- Material
- Individual Bills of Material Example
- Consolidated Bill of Material Example
- Consolidated Bill of Material
- Material
- Material
- Material
- Labor
- Labor
- Labor
- Labor Hours Example
- Labor Hours Example ndash Actual Production History
- Labor Hours Examples ndash Basis of Estimate
- Other Direct Costs (ODC)
- Nonrecurring Expenses (NRE)
- NRE
- Rates
- Rates
- Summary
- Summary
- Other Types of Proposals
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals Cost of WorkDeleted for a Partial Deleted Quantity
- Supplier Proposal Adequacy Checklist
-
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull Detail for columns listed on previous page
1 Enter appropriate cost element2 Enter current estimates of what it would take to complete the deleted work that
has not yet been performed3 Enter current cost of deleted work already performed This should be based on
actuals and copies to support these actuals should be included in the proposal4 Enter the net cost to be deleted (Column 2 minus Column 3)5 Enter your estimate for cost of work added by the change6 Enter the net cost of change (Column 5 minus Column 4)7 Identify where in your proposal the supporting documentation and basis of
estimate can be found for each of these sections
43FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull For purposes of determining if a proposal an cost or pricing data are
required from individual suppliers on a change proposal the absolute valueof the ldquodeleterdquo amount plus the ldquoaddrdquo amount is computed for each supplierthat exceeds the cost and pricing threshold (TINA)
bull Remember from FAR 15403-4(b) ndash if the absolute value for an individualsupplier exceeds the cost and pricing threshold (TINA) and the supplier iseither an actual supplier (will continue to provide partsservices on thiscontract) the supplier is required to provide a proposal and cost or pricingdata in support of the change proposal
bull Deleted amount is our current estimate (generally no the original contractvalue unless it is our current estimate)
44FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull If a supplierrsquos quantities are changing due to a modification the net delete
or add amount is used to determine if the supplier exceeds the cost andpricing threshold (TINA)
bull The estimator should not consider the old quantity as the delete and thenew quantity as the add (eg in computing absolute value) whendetermining if the supplier exceeds the threshold in cases where quantitiesare changing
bull The development of the appropriate deletion is not simply the estimatedcost of the deleted quantity ndash this will overstate the credit
45FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals Cost of WorkDeleted for a Partial Deleted Quantitybull In cases where part of a material quantity is being deleted (eg original
contract requires 100 widgets and the contract is modified to delete 30 ofthem) one method of estimating the amount of the delete is
1 Develop a current estimate of the extended cost for the item(s) given the originalquantity
2 Develop a current estimate of the extended cost for the items at the lower(remaining) quantity
3 The delta between these two values represents the amount of the delete
bull The same method can be used if the contract is modified to increase aquantity for a part
46FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklist
47
bull The Supplier Proposal Adequacy Checklist is accessed from the externalPSEMC supplier website
bull Additional supplier proposal guidance and resources are available(information templates and tools to assist in building a FAR compliantproposal
bull Supplier proposal guidance
bull Supplier Proposal Adequacy Guidelines
bull PSEMC document templates
bull Supplier proposal adequacy checklistbull Contract pricing proposal cover sheet
httpspsemccomsuppliers
- Strategic Affordability Analysis
- Purpose of this Guideline
- Table of Contents
- Table of Contents
- Supplier Proposal Adequacy Checklist
- Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
- Cover Sheet
- Cover Sheet Example ndash Reference Form DI-SUP-105F02
- Index
- Index Example
- Cost Element Breakdown by Line Item
- Cost Element Breakdown by Line Item Example
- Summary Cost Element Breakdown
- Summary Cost Element Breakdown - Example
- Summary Cost Element Breakdown - Example
- Material
- Material
- Individual Bills of Material Example
- Consolidated Bill of Material Example
- Consolidated Bill of Material
- Material
- Material
- Material
- Labor
- Labor
- Labor
- Labor Hours Example
- Labor Hours Example ndash Actual Production History
- Labor Hours Examples ndash Basis of Estimate
- Other Direct Costs (ODC)
- Nonrecurring Expenses (NRE)
- NRE
- Rates
- Rates
- Summary
- Summary
- Other Types of Proposals
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals Cost of WorkDeleted for a Partial Deleted Quantity
- Supplier Proposal Adequacy Checklist
-
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull For purposes of determining if a proposal an cost or pricing data are
required from individual suppliers on a change proposal the absolute valueof the ldquodeleterdquo amount plus the ldquoaddrdquo amount is computed for each supplierthat exceeds the cost and pricing threshold (TINA)
bull Remember from FAR 15403-4(b) ndash if the absolute value for an individualsupplier exceeds the cost and pricing threshold (TINA) and the supplier iseither an actual supplier (will continue to provide partsservices on thiscontract) the supplier is required to provide a proposal and cost or pricingdata in support of the change proposal
bull Deleted amount is our current estimate (generally no the original contractvalue unless it is our current estimate)
44FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull If a supplierrsquos quantities are changing due to a modification the net delete
or add amount is used to determine if the supplier exceeds the cost andpricing threshold (TINA)
bull The estimator should not consider the old quantity as the delete and thenew quantity as the add (eg in computing absolute value) whendetermining if the supplier exceeds the threshold in cases where quantitiesare changing
bull The development of the appropriate deletion is not simply the estimatedcost of the deleted quantity ndash this will overstate the credit
45FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals Cost of WorkDeleted for a Partial Deleted Quantitybull In cases where part of a material quantity is being deleted (eg original
contract requires 100 widgets and the contract is modified to delete 30 ofthem) one method of estimating the amount of the delete is
1 Develop a current estimate of the extended cost for the item(s) given the originalquantity
2 Develop a current estimate of the extended cost for the items at the lower(remaining) quantity
3 The delta between these two values represents the amount of the delete
bull The same method can be used if the contract is modified to increase aquantity for a part
46FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklist
47
bull The Supplier Proposal Adequacy Checklist is accessed from the externalPSEMC supplier website
bull Additional supplier proposal guidance and resources are available(information templates and tools to assist in building a FAR compliantproposal
bull Supplier proposal guidance
bull Supplier Proposal Adequacy Guidelines
bull PSEMC document templates
bull Supplier proposal adequacy checklistbull Contract pricing proposal cover sheet
httpspsemccomsuppliers
- Strategic Affordability Analysis
- Purpose of this Guideline
- Table of Contents
- Table of Contents
- Supplier Proposal Adequacy Checklist
- Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
- Cover Sheet
- Cover Sheet Example ndash Reference Form DI-SUP-105F02
- Index
- Index Example
- Cost Element Breakdown by Line Item
- Cost Element Breakdown by Line Item Example
- Summary Cost Element Breakdown
- Summary Cost Element Breakdown - Example
- Summary Cost Element Breakdown - Example
- Material
- Material
- Individual Bills of Material Example
- Consolidated Bill of Material Example
- Consolidated Bill of Material
- Material
- Material
- Material
- Labor
- Labor
- Labor
- Labor Hours Example
- Labor Hours Example ndash Actual Production History
- Labor Hours Examples ndash Basis of Estimate
- Other Direct Costs (ODC)
- Nonrecurring Expenses (NRE)
- NRE
- Rates
- Rates
- Summary
- Summary
- Other Types of Proposals
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals Cost of WorkDeleted for a Partial Deleted Quantity
- Supplier Proposal Adequacy Checklist
-
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposalsbull If a supplierrsquos quantities are changing due to a modification the net delete
or add amount is used to determine if the supplier exceeds the cost andpricing threshold (TINA)
bull The estimator should not consider the old quantity as the delete and thenew quantity as the add (eg in computing absolute value) whendetermining if the supplier exceeds the threshold in cases where quantitiesare changing
bull The development of the appropriate deletion is not simply the estimatedcost of the deleted quantity ndash this will overstate the credit
45FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals Cost of WorkDeleted for a Partial Deleted Quantitybull In cases where part of a material quantity is being deleted (eg original
contract requires 100 widgets and the contract is modified to delete 30 ofthem) one method of estimating the amount of the delete is
1 Develop a current estimate of the extended cost for the item(s) given the originalquantity
2 Develop a current estimate of the extended cost for the items at the lower(remaining) quantity
3 The delta between these two values represents the amount of the delete
bull The same method can be used if the contract is modified to increase aquantity for a part
46FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklist
47
bull The Supplier Proposal Adequacy Checklist is accessed from the externalPSEMC supplier website
bull Additional supplier proposal guidance and resources are available(information templates and tools to assist in building a FAR compliantproposal
bull Supplier proposal guidance
bull Supplier Proposal Adequacy Guidelines
bull PSEMC document templates
bull Supplier proposal adequacy checklistbull Contract pricing proposal cover sheet
httpspsemccomsuppliers
- Strategic Affordability Analysis
- Purpose of this Guideline
- Table of Contents
- Table of Contents
- Supplier Proposal Adequacy Checklist
- Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
- Cover Sheet
- Cover Sheet Example ndash Reference Form DI-SUP-105F02
- Index
- Index Example
- Cost Element Breakdown by Line Item
- Cost Element Breakdown by Line Item Example
- Summary Cost Element Breakdown
- Summary Cost Element Breakdown - Example
- Summary Cost Element Breakdown - Example
- Material
- Material
- Individual Bills of Material Example
- Consolidated Bill of Material Example
- Consolidated Bill of Material
- Material
- Material
- Material
- Labor
- Labor
- Labor
- Labor Hours Example
- Labor Hours Example ndash Actual Production History
- Labor Hours Examples ndash Basis of Estimate
- Other Direct Costs (ODC)
- Nonrecurring Expenses (NRE)
- NRE
- Rates
- Rates
- Summary
- Summary
- Other Types of Proposals
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals Cost of WorkDeleted for a Partial Deleted Quantity
- Supplier Proposal Adequacy Checklist
-
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Change Proposals Cost of WorkDeleted for a Partial Deleted Quantitybull In cases where part of a material quantity is being deleted (eg original
contract requires 100 widgets and the contract is modified to delete 30 ofthem) one method of estimating the amount of the delete is
1 Develop a current estimate of the extended cost for the item(s) given the originalquantity
2 Develop a current estimate of the extended cost for the items at the lower(remaining) quantity
3 The delta between these two values represents the amount of the delete
bull The same method can be used if the contract is modified to increase aquantity for a part
46FAR 15408 Table 15-2 III B
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklist
47
bull The Supplier Proposal Adequacy Checklist is accessed from the externalPSEMC supplier website
bull Additional supplier proposal guidance and resources are available(information templates and tools to assist in building a FAR compliantproposal
bull Supplier proposal guidance
bull Supplier Proposal Adequacy Guidelines
bull PSEMC document templates
bull Supplier proposal adequacy checklistbull Contract pricing proposal cover sheet
httpspsemccomsuppliers
- Strategic Affordability Analysis
- Purpose of this Guideline
- Table of Contents
- Table of Contents
- Supplier Proposal Adequacy Checklist
- Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
- Cover Sheet
- Cover Sheet Example ndash Reference Form DI-SUP-105F02
- Index
- Index Example
- Cost Element Breakdown by Line Item
- Cost Element Breakdown by Line Item Example
- Summary Cost Element Breakdown
- Summary Cost Element Breakdown - Example
- Summary Cost Element Breakdown - Example
- Material
- Material
- Individual Bills of Material Example
- Consolidated Bill of Material Example
- Consolidated Bill of Material
- Material
- Material
- Material
- Labor
- Labor
- Labor
- Labor Hours Example
- Labor Hours Example ndash Actual Production History
- Labor Hours Examples ndash Basis of Estimate
- Other Direct Costs (ODC)
- Nonrecurring Expenses (NRE)
- NRE
- Rates
- Rates
- Summary
- Summary
- Other Types of Proposals
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals Cost of WorkDeleted for a Partial Deleted Quantity
- Supplier Proposal Adequacy Checklist
-
PacSci EMC Proprietary Rights are included in the information disclosed herein Information is furnished for evaluation purposes only and shall no be used disclosed or reproduced for any purposes without the expressed written consent of PacSci EMC
Supplier Proposal Adequacy Checklist
47
bull The Supplier Proposal Adequacy Checklist is accessed from the externalPSEMC supplier website
bull Additional supplier proposal guidance and resources are available(information templates and tools to assist in building a FAR compliantproposal
bull Supplier proposal guidance
bull Supplier Proposal Adequacy Guidelines
bull PSEMC document templates
bull Supplier proposal adequacy checklistbull Contract pricing proposal cover sheet
httpspsemccomsuppliers
- Strategic Affordability Analysis
- Purpose of this Guideline
- Table of Contents
- Table of Contents
- Supplier Proposal Adequacy Checklist
- Supplier Proposal AdequacyChecklist Example ndash Reference DI-SUP-105F03
- Cover Sheet
- Cover Sheet Example ndash Reference Form DI-SUP-105F02
- Index
- Index Example
- Cost Element Breakdown by Line Item
- Cost Element Breakdown by Line Item Example
- Summary Cost Element Breakdown
- Summary Cost Element Breakdown - Example
- Summary Cost Element Breakdown - Example
- Material
- Material
- Individual Bills of Material Example
- Consolidated Bill of Material Example
- Consolidated Bill of Material
- Material
- Material
- Material
- Labor
- Labor
- Labor
- Labor Hours Example
- Labor Hours Example ndash Actual Production History
- Labor Hours Examples ndash Basis of Estimate
- Other Direct Costs (ODC)
- Nonrecurring Expenses (NRE)
- NRE
- Rates
- Rates
- Summary
- Summary
- Other Types of Proposals
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Commercial Items (if applicable)
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals
- Change Proposals Cost of WorkDeleted for a Partial Deleted Quantity
- Supplier Proposal Adequacy Checklist
-