Defense Supply Service-Washington, Rm 1D245, The Pentagon, Washington, DC 20310- 5200

A -- BROAD AGENCY ANNOUNCEMENT/POWDER-MATRIX SYSTEMS -- PART 2 OF 2 DUE 041197 POC Contact Ms. Sally Williams, Contract Specialist (703) 693-5017, Contracting Officer, Joyce Rose (703) 695-2564 APPENDIX A -- ADDITIONAL REQUIREMENTS AND AMPLIFYING INFORMATION CONCERNING PREPARATION OF PART II COST DATA. 1. Cost Estimate: An estimate of the total research project cost, with a break down of direct and indirect funds by category and year, must accompany each formal proposal (PART II). Multiple-year proposals are encouraged to cover the total estimated duration of the project, as appropriate. Incremental funds will be provided by SERDP to successful proposers for effort performed during each Federal fiscal year, given that sufficient funds are provided to SERDP and the defense requirements indicate that the research is a continuing priority. Costs proposed must confirm with the following regulations and principles: Commercial firms: Federal Acquisition Regulations (FAR) Part 31 and Defense FAR Supplement Part 31, Contract Cost Principles and Procedures. Educational Institutions: OMB Circular A-21, Cost Principles for Educational Institutions, OMB Circular A-88, Indirect Cost Rates, Audit an Audit Follow-up at Educational Institutions. Nonprofit Organizations: OMB Circular A-122, Cost Principles for Nonprofit Organizations, OMB Circular A-133, Audits of Institutions of Higher Education and Other Nonprofit Organizations. The cost of preparing proposals in response to this BAA is not considered an allowable direct charge to any resultant contract, grant or cooperative agreement. It is, however, an allowable expense to the bid and proposal indirect cost specified in FAR 31.205-18, and OMB Circulars A-21 and A-122. The budget estimate must include the following data. a. Direct Labor Costs: Show the current and projected salary amounts in terms of man-hours, man-months or annual salary to be charged by the PI(s), research associates and assistants, and the total amount per year to be paid to each from the project. State the number of man-hours used to calculate a man- month or man-year. For proposals from universities, the time and amounts to be charged should be identified by academic year and summer effort. The proposal must identify the following: 1) The basis for the direct labor hours or percentage of effort, e.g., historical hours or estimates. 2) The basis for the direct labor rates or salaries. Labor costs should be predicated upon actual labor rates or salaries. These estimates may be adjusted upward for forecast salary or wage cost-of-living increases that will occur during the contract period. Such COLAs should not exceed 4%, exclusive of merit increases. The proposal should separately identify the ratio applied to base salary/wage for cost-of-living adjustments and merit increases. Each must be fully explained. b. Fringe Benefits and Indirect Cost Rates (overhead, general and administrative and other): The most recent rates, dates of negotiation, the base(s) and periods to which the rates apply must be disclosed and a statement included to identify whether the proposed rates are provisional or fixed. A copy of the negotiation memorandum should be provided. If negotiated forecast rates do not exist, sufficient detail must be provided to enable a determination that the costs included in the forecast rate are allocable according to applicable FAR/DFARS or OMB Circular provisions (see above). Disclosure should be sufficient to permit a full understanding of the content of the rate(s) and how it was established. As a minimum, submission should identify: 1) all individual cost elements included in the forecast rate(s); 2) the basis used to prorate indirect expenses to cost pools, if any: 3) how the rate(s) was calculated; and 4) the distribution basis of the developed rate(s). c. Major Equipment: 1) It is the policy of the Department of Defense that all commercial and nonprofit contractors provide the equipment needed to support proposed research. In those rare cases where specific additional equipment is approved for commercial and nonprofit organizations, such approved cost elements shall be "no-fee-bearing." 2) An itemized list of permanent equipment is required, showing the cost for each item. Permanent equipment is any article of nonexpendable tangible property having a useful life of more than two years and an acquisition cost of $500 or more per unit. The basis for the cost of each item of permanent equipment included in the budget must be disclosed, such as: a) Vendor Quote: show name of vendor and number of quotes received and justification if intended award is to other than lowest bidder. b) Historical Cost: identify vendor, date of purchase and whether or not cost represented lowest bid; include reason(s) for not soliciting current quotes. c) Estimate: included rationale for estimate and reason for not soliciting current quotes. d) Special test equipment to be fabricated by the contractor for specific research purposes and its cost. e) Standard equipment to be acquired and modified to meet specific requirements, including acquisition and modification costs, listed separately. f) Existing equipment to be modified to meet specific research requirements, including modification costs. Do not include as special test equipment those items of equipment that, if purchased by the contractor with contractor funds, would be capitalized for Federal income tax purposes. d. Materials, Supplies, and Consumables: A general description and total estimated cost of expendable equipment and supplies are required. The basis for developing the cost estimate (vendor quote, invoice price, etc.) must be included. If possible, provide a material list. e. Subcontracts: A description of services or materials that is to be awarded by subcontract. For awards totaling $10,000 or more, provide the following specific information: 1) The identification of the type of award to be used (cost reimbursement, fixed price, etc.) 2) if known, the identification of the proposed subcontractor and an explanation of why and how the subcontractor was selected or will be selected. 3) Whether or not the award will be competitive and, if noncompetitive, rationale to justify the absence of competition. 4) The proposed acquisition price. 5) The offeror's cost or price analysis of the subcontract proposed price (applicable only if the award exceeds $500,000). f. Travel Costs: List the number of trips, number of people per trip, the destinations and the purpose for all proposed travel. Estimate round trip fare and per diem costs for each trip. Travel to scientific meetings requires identification of the specific meeting and purpose. For planning purposes, SERDP requires PIs to attend: 1) an annual symposium to present their research in an oral presentation, including a poster session; 2) an annual presentation report of management and technical status in the Spring; 3) a presentation to the SERDP Scientific Advisory Board in the first year, and the successive years during which project value exceeds $900,000; and 4) no more than one trip to a scientific meeting per contract per year. g. Publication and Report Costs: Estimate the costs of publishing and reporting research results, including the direct charges for clerical preparation, page or illustration charges, reprints, and distribution. While the number and types of reports will be specified in a contractual document, the following may be used to estimate reporting costs: 1) an annual technical report will be required in addition to a final report; 2) monthly one page obligation and expenditure reports; and 3) quarterly progress reports prepared in a government- provided software package. h. Consultant Costs: State the daily consultant fee, travel expenses, nature of the consulting effort, and why consultants are required to complete the research. i. Other Direct Costs: Itemize other anticipated direct costs, such as rental for computers and other equipment (giving hours and rates), communications costs, etc. Unusual or expensive items should be fully explained and justified. j. Fixed Fee: The fixed fee, if any, applied to the research project should be listed. A claimed Facilities Capital Cost of Money supported by DD Form 1861 is also needed. (0028)

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