Proposal Adequacy Checklist—The New Normal

Breakout Session # B01Robert E Jones Advisor LeftRobert E. Jones, Advisor, Left Brain Professionals Inc.Suzanne Camden, Accounting , gManager, Colonna's ShipyardMonday, July 282:30 PM 3:45 PM2:30 PM – 3:45 PM

What Is theProposal Adequacy Checklist?• A consolidation of existing regulatory

requirements to communicate adequate proposal expectations to contractors.

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Why Do We Have It?Why Do We Have It?• Systematic failure to submit may lead to

estimating system deficiency report• The expected benefit is a reduced number p

of inadequate proposals, thereby making the acquisition process more efficient.q p

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Who Administers the PAC?Who Administers the PAC?

• Issued with RFP by COy– DoD/DFARS (36 items)– DCAA (points to DFARS) (p )– DCMA (38 items)– NASA (34 items)NASA (34 items)

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When Is It Required?When Is It Required?• When certified cost or pricing data is

required– The PAC addresses exemptions, so you may

be required to submit the PAC even if you are exempt from submitting certified cost or pricing d tdata

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Will Other Agencies Adopt the PAC?Will Other Agencies Adopt the PAC?• DoD March 18, 2013• NASA February 26, 2014

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Takeaway #1Takeaway #1• You have the exam in your hands!

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What Does the PAC Look Like?What Does the PAC Look Like?

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General InformationGeneral Information• Completed first page• Need for GFE• Non-compliance with CASNon compliance with CAS• Activities that could materially impact costs

I d• Index• Exceptions to submitting certified cost or

pricing data

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General InformationGeneral Information• Judgment factors• Contingencies• BoE relationshipsBoE relationships• Subtotals that "cross and foot" and are

indexedindexed• FPRA

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Cost ElementsCost Elements• Materials and Services• Subcontracts

– Purchased Materials and Services

• CBOMCBOM• Subcontractor proposals

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Exceptions toCertified Cost or Pricing Data• Specifically identifed type of commercial

item?• Classify modifications?y• "Of a type" or "evolved" comparison

provided?provided?

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Inter-organizational TransfersInter organizational Transfers• Support for data submitted either at cost or

price

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Direct LaborDirect Labor• Time phased• Breakdown and summary by labor

categoryg y• BoE with labor categories, hours, and task

descriptionsdescriptions

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Indirect CostsIndirect Costs• Support for indirect rates

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Other CostsOther Costs• ODCs and basis of pricing• Royalties• Facilities capital cost of moneyFacilities capital cost of money

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Formats for SubmissionOf Line Item Summaries• Are cost elements provided IAW FAR

15.408, Table 15-2 III• Are change order/mods IAW 15.408, Table g ,

15-2.III.B• Are price revisions/redeterminations IAWAre price revisions/redeterminations IAW

FAR 15.408, Table 15- 2.III.C

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FAR 15 408 Table 15-2FAR 15.408 Table 15 2

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OtherOther• Incentive - proposed target cost, target

profit or fee, share ratio, etc.• EPA – rationale for adjustmentj• PBA IAW FAR 52.232-28• Excessive pass throughs identified• Excessive pass-throughs identified

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Differences Among PAC VersionsDifferences Among PAC Versions• Variations in grouping and details, but

content is essentially the same

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How Many "No's" Are AllowedHow Many No s Are Allowed• No set criteria, though several "No's" could

indicate an inadequate proposal

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Takeaway #2Takeaway #2• Build internal policies and procedures

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Frequently Asked QuestionsFrequently Asked Questions• What if I don't submit a checklist?

If systematic, auditor could submit an estimating system deficiency report

• Do I have to flow down to subcontractor?It depends, read the RFP to the sub

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Takeaway #3Takeaway #3• Save time and simplify negotiations

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ResourcesResources• DFARS Case 2011-D042

• http://goo.gl/6MYcmd• DCAA Memo on Proposal Adequacy p q y

Checklist• http://www dcaa mil/mmr/13-PSP-020 pdfhttp://www.dcaa.mil/mmr/13 PSP 020.pdf

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ResourcesResources• DCAA Contract Pricing Proposal Adequacy

Checklist• http://www.acq.osd.mil/dpap/dars/dfars/html/cu

rrent/252215.htm#252.215-7009• DCMA Proposal Adequacy Checklistp q y

• http://guidebook.dcma.mil/120/DCMA_Proposal_Adequacy_Checklist.pdf

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ResourcesResources• NASA Proposal Adequacy Checklist

• http://www.hq.nasa.gov/office/procurement/regs/5215-16.htm#52_215-77

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3 Takeaways3 Takeaways• You have the final exam in your hands!• Build internal policies and procedures• Save time and simplify negotiationsSave time and simplify negotiations

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QuestionsQuestionsRobert E. Jonesrobert@leftbrainpro.com(513) 728-1163

Suzanne Camdensuzannecamden@hotmail comsuzannecamden@hotmail.com(757) 572-1716

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