Pre-Proposal Conference

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

August 14, 2013

12Agenda

Topic Presenter Title Orientation Rosalie CarpentierContracting Officer Cost/Price Overview Rosa Arevalo

Pricing Analyst 23

Orientation

Rosalie CarpentierContracting Officer34

These slides are not to be interpreted as a comprehensive description of the requirements in the Draft Request for Proposal (RFP).

To the extent there are any inconsistencies between this briefing and any future RFP, the RFP will govern.

Disclaimer

45

Purpose of the Cost and Pricing Preproposal WebExThe purpose of this Preproposal WebEx is to help industry understand the Governments cost and price proposal requirements.Questions:Any response to verbal questions during the conference shall not be construed as an official answer

Submit written questions to the Contracting Officer as described in the Draft Request for Proposal (DRFP) at provision L.18

Official responses to written questions received by the Contracting Officer will be posted to the Federal Business Opportunities (FedBizOpps) website, the NASA Acquisition Internet Service (NAIS) Web Portal, and the IMOC II procurement website56

IMOC II Source Selection Authority and Acquisition Team MembersSource Selection Authority Melanie Saunders, Associate Director- Johnson Space CenterAcquisition TeamDAMission Operations Directorate Mark FerringSEB ChairBROperations Support Office Kathryn McLaurinContracting Officer (Prime) BROperations Support Office Rosalie CarpentierContracting Officer (Backup) DAMission Operations Directorate James ThorntonTeam MemberDISpaceflight Systems Division Joy BarckholtzTeam MemberDMFlight Dynamics Division Raymond SilvestriTeam MemberDOOperations Division Linda DeLappTeam MemberDXEVA, Robotics, & Crew Systems Division Gail SchneiderTeam Member67

Points of ContactContracting Officer: Kathryn McLaurin jsc-imoc-ii@mail.nasa.gov281-792-7859

Contracting Officer:Rosalie Carpentierjsc-imoc-ii@mail.nasa.gov281-792-7856

IMOC II web address: http://procurement.jsc.nasa.gov/imocII/

Questions may be submitted by:Clicking on the Anonymous Questions to the Contracting Officer and Feedback link to submit an anonymous questionEmailing kathryn.mclaurin@nasa.gov and jsc-imoc-ii@mail.nasa.gov

78OmbudsmanOmbudsman (NFS 1852.215-84): before consulting with an ombudsman, interested parties must first address their concerns, issues, disagreements, and/or recommendations to the Contracting Officer for resolution If resolution cannot be made by the Contracting Officer, interested parties may contact the installation ombudsman

JSC Ombudsman:Perri Fox/AC2101 NASA ParkwayHouston, TX 77058Phone: (281) 483-3157Email: perri.e.fox@nasa.gov

The agency listing of Ombudsman for Acquisitions is located at http://prod.nais.nasa.gov/pub/pub_library/Omb.html

89Johnson Space Center RFP Pricing WebEX Cost/Price Overview

Rosa Arevalo Pricing Analyst910 AgendaSEB Pricing Process

Government Resource Estimate (GRE)

Workbook Templates Overview

IDIQ Cost Template Workbook IDIQ Process FlowchartTechnical Workbook

Common Cost Volume Errors

Questions?1011The SEB Pricing ProcessWhat does the SEB do with your cost/price proposal:

May request a DCAA audit of all prime and major subcontractor proposals(Major Subcontractor estimated annual contract value of $5M or more)

Cognizant Federal Agency and Audit Office Template (Section L) requested with the Past Performance Volume (October 25, 2013) and Cost/Price Volume (due on November 12, 2013)

1112The SEB Pricing Process (Continued) Read all narrative portions of Cost/Price VolumeValidate all Offerors Excel modelsIntegrate pricing models of prime and major subs Make probable cost adjustments/cost realism (only if necessary)

Error Corrections/ReconciliationsLabor Rates AdjustmentsIndirect Rates AdjustmentsTechnical/Mgnt Evaluation (Labor/Non-Labor Resources)DCAA/DCMA input, as applicable

1213The SEB Pricing Process (Continued)SOME EXAMPLES:Error Corrections/ReconciliationsCorrect for math, linking or formula errorsUse Subcontractor Fully Burdened Rates (SFBRs) from Subs cost templates if Primes proposed SFBRs differ from the Subs SFBR

Labor Rates AdjustmentsIncumbent Labor Rates

Use average composite labor rates available to NASA for current effort (prime and all subcontractors), only when an Offeror proposes to hire incumbents and pay their prevailing wages

An incumbent is defined as the current person performing same or similar function on current contract

Adjustment based on Offerors proposed percentage (%) of Incumbents at their current Direct Labor (DL) rates

1314The SEB Pricing Process (Continued)SOME EXAMPLES:

Direct Labor Rates AdjustmentUse latest Department of Labor (DOL) wage determination for non-exempt labor categories, other current labor market surveys and indices

Indirect Rates AdjustmentUse current audit reports, forward pricing indirect rates recommendations from DCMA, etc

Technical/Management Evaluation [Labor and Non-Labor Resources (NLR) Adjustments)]Based on all technical or management weaknesses related to resources (FTEs/Skill Mix or NLRs)

1415The SEB Pricing Process (Continued)SOME EXAMPLES:

DCAA/DCMA input, as applicableDCAA audit report of Offerors cost proposals, if audits are requestedDCMA rates information, such as latest incurred cost audits, billing rates, etc

Develop Pricing Charts for Presentation to the Source Evaluation Board (SEB) & the Source Selection Authority (SSA)

Proposed Cost vs. Probable Cost and Delta

Rationale for Probable Cost Adjustments

1516Government Resource Estimate (GRE)What is the GRE?

Governments best estimate of resources (FTE and skill mix) and Non-Labor Resources (NLR) that may be required to perform all the Task Order (TO) requirements

Grass roots estimate, not budgetary

GRE are provided to Offerors (Section L, Attach L-5) to assist in scoping the management and non-technical administrative support requirements of the contract

Labor and Non-Labor GRE for all TOs are provided for Contract Year 1

Cumulative Labor FTEs by Skill Mix for CY 1 The GRE is not intended to influence the Offerors proposed estimates. Offerors shall develop their own estimates that are:

Consistent with Offerors Management and Technical Approach

1617 Workbook Templates IDIQ Cost Workbook (Section L, Attach L-10) *IDIQ Rates Development Contractor Specific Template (ICST) **Prime Burdens Template (PBT) **IDIQ Rates Development Template - Team (ITT) **Task Order Pricing Template (TOPT) **IDIQ Summary Cost Template (ISCT) **Subcontractor Pricing Template (SPT) **Phase-in Template (PIT)

*Required of Prime and all Subcontractors with annual contract value of $2M or more (inclusive of Major Subcontractors) **Required of Prime Only

1718 Workbook Templates IDIQ Cost Workbook Continued: ^Overhead Template (OHT) ^G&A Template (GAT) ^Cognizant Federal Agency and Audit Office Template (CFAOT) ^Total Compensation Templates TC(a) and TC(b) *Total Compensation Templates TC(c), TC(d), TC(e)

^Required of Prime and each Major Subcontractor with annual contract value of $5M or more * Required of Prime and all Subcontractors with annual contract value of $2M or more (inclusive of Major Subcontractors)

1819 IDIQ Cost Flowchart *FBR - Fully Burdened Rates**SFBR Subcontractor Fully Burdened Rates

19 Workbook Templates*Technical Workbook Templates (Section L, Attach L-4) required for TO-DA-1; TO-DI-1; TO-DM-1 TO-DO-1 and TO-DX-1 listed in Section L, Table L-3a: IDIQ Task Orders

Technical Resources Summary Template (TRST)

Technical Resources Template (TRT)

*Required of Prime Only (Prime and all Subs Labor and Non-Labor Resources Combined)202021 Common Cost Volume ErrorsProposals with omissions:Lack of detail on Overhead, G&A and Other Indirect RatesLack of narrative supporting rationale Logic IssuesInconsistent content within the cost proposalFailure to follow template instructions:Using hard numbers instead of formulas where appropriate Placing Fully Burdened Labor Rates where Direct Labor Rates are Required

21 22Lack of consistency within the entire proposal:

Mission SuitabilityTechnical Management

CostCommon Cost Volume Errors (Continued)22Cost/Price Overview Questions?23

IDIQ RATES DEVELOPMENTCONTRACTORSPECIFIC TEMPLATE (ICST)(PRIME)
IDIQ RATES DEVELOPMENTCONTRACTORSPECIFIC TEMPLATE (ICST)(Major Subs $5M > per Yr)
IDIQ RATES DEVELOPMENTCONTRACTORSPECIFIC TEMPLATE (ICST)(Subs $2M < $5M per Yr)
IDIQPRIME BURDENSTEMPLATE (PBT)(PRIME)
IDIQ RATES DEVELOPMENTTEMPLATE-TEAM (ITT)(PRIME)
SFBR*
SFBR*
FBR*
TECHNICAL RESOURCES SUMMARY TEMPLATE (TRST) (PRIME)
TASK ORDERPRICING TEMPLATE (TOPT) (PRIME)
IDIQ SUMMARYCOST TEMPLATE (ISCT) (PRIME)

SFBR*
SUBCONTRACTOR PRICING TEMPLATE (SPT)(Subs below $2M per Yr)