Welcome to the Johnson Space Center International Space Station Russian Language and Logistics Services (RLLS) Cost and Pricing Pre-Proposal Conference February 28, :00 AM – 11:00 AM

Agenda 2 TimeTopicPresenterTitle 10:05OrientationL. ProcknowContract Specialist 10:15Cost/Pricing OverviewW. KhanCost/Price Analyst

3 Orientation Lara N. Procknow Contract Specialist

These slides are not to be interpreted as a comprehensive description of the requirements in the Request for Proposal (RFP). Disclaimer (Orientation) 4

Purpose of Pre-Proposal Conference (Orientation) The primary purpose of this Pre-Proposal Conference is to help industry understand the Government’s cost and price proposal requirements. Questions:  Any response to verbal questions during the conference shall not be construed as an official answer  Submit written questions to the Contracting Officer as described in the RFP: - The deadline for questions regarding the RFP is March 13, 2012  Official responses to written questions received by the Contracting Officer will be posted to the NASA Acquisition Internet Service (NAIS) Web Portal and the RLLS procurement website as amendments to the RFP 5

Source Selection Authority and Source Evaluation Board (SEB) Members (Orientation) Source Selection Authority – Kirk Shireman, International Space Station Deputy Program Manager SEB Voting Members Mark Thiessen, Chair Lara Procknow Mike Boggs 6

Points of Contact (Orientation) Contract Specialist: – Lara N. Procknow at RLLS web address: – – Click on the “Anonymous Questions to the Contracting Officer” link to submit a question. 7

Ombudsman (Orientation) Ombudsman (NFS ): “…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 for Procurement Matters: Lauri Hansen, Chief of Staff, Office of the Director Address/Phone: Lyndon B. Johnson Space Center Mail Code: AC 2101 NASA Parkway Houston, TX Phone: Fax:

9 Section L, Cost/Pricing Information Wally Khan Cost/Price Analyst Cost/Price Proposal

10 Agenda SEB Pricing Process Government Resource Estimate (GRE) Workbook Templates Overview – Completion Form Workbook Templates Completion Form Process Flowchart – IDIQ Workbook Templates IDIQ Process Flowchart – Technical Workbook Templates – Other Workbook Templates Common Cost Volume Errors

11 The SEB Pricing Process What does the SEB do with your cost/price proposal: – Request a DCAA audit for all prime and major subcontractor proposals (Major Subcontractor - annual contract value at or above $1M) DCAA Cognizant Audit Office Template (Section L) is requested to be delivered early with the Past Performance Volume (April 16, 2012) and with the Cost/Price Volume (April 23, 2012)

12 The SEB Pricing Process – Read all narrative portions of Cost/Price Volume – Validate all Offerors’ Excel models – Integrate pricing models of prime and major subs – Test models – Make probable cost adjustments/cost realism (only if necessary) Error Corrections/Reconciliations Incumbent Labor Rates Direct Labor and Indirect Rates Adjustment Technical Evaluation (Labor/Non-Labor Resources) DCAA Audit Results

13 The SEB Pricing Process 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

14 Government Resource Estimate (GRE) What is the GRE? – Government’s best estimate of resources (WYE and skill mix) to perform the current SOW – Grass roots estimate, not budgetary GRE is provided to Offerors in Section L – Completion Form GRE is provided for Contract Year 1 by Statement of Work (SOW). – Non-labor Resources GRE is also provided for Contract Year 1. The GRE is not intended to influence the Offeror’s proposed estimates nor be a plug number. Offerors shall develop their own estimates that are: – Consistent with Offeror’s Management Approach – Consistent with Offeror’s Technical Approach

15 Workbook Templates Completion Form Workbook Templates* – Labor Pricing Template (LPT) – Overtime Pricing Template (OPT) – Major Subcontractor Cost Summary Template (MSCST) – Prime Cost Summary Template (PCST) *Not required of Minor Subcontractors (Annual contract value below $1M)

16 Completion Form Flowchart TRST WYEs DIRECT LABOR $ DIRECT LABOR $ DIRECT LABOR $ RATES PRIME LPT & OPT Major SUB 1 LPT & OPT Major SUB 2 LPT & OPT O/H G&A PRIME PCST SUB 1 MSCST SUB 2 MSCST TOTAL SUBCONTRACT $TOTAL SUBCONTRACT $ TOTAL COST WYEs MSPT

17 IDIQ Workbook Templates – IDIQ Rates Development Template – Contractor Specific (ICST)* – Prime Burdens Template (PBT)** – IDIQ Rates Development - Team Template (ITT)** – IDIQ Summary Cost Template (ISCT)** *Required of Prime and Each Major Subcontractor **Required of Prime Only. Workbook Templates

IDIQ Flowchart 18 * FBR - Fully Burdened Rates **SFBR - Subcontractor Fully Burdened Rates

Workbook Templates  Technical Workbook Templates* Technical Resources Summary Template (TRST) Completion Form Technical Resources Template (TRT) Completion Form * Not required of Minor Subcontractors (Annual contract value below $1M) 19

20 Other Workbook Templates – Minor Subcontractor Pricing Template (MSPT) ** – Conversion Factor Template (CFT) ** – Summary Pricing Template (SPT) ** – Phase-in Template (PIT) ** – Overhead Template (OHT)* – G&A Template (GAT)* – Cognizant Audit Office Template (CAOT)* – Total Compensation Templates (TC(a), TC(b), TC(c), TC(d), TC(e)* * Required of Prime and Each Major Subcontractor **Required of Prime Only Workbook Templates

21 Common Cost Volume Errors Proposals with omissions: – Lack of detail on Overhead, G&A and Other Indirect Rates – Lack of narrative supporting rationale Logic Issues – Inconsistent content within the proposal Failure to follow template instructions: – Using hard numbers instead of formulas where appropriate – Placing Fully Burdened Labor Rates where Direct Labor Rates are Required

22 Lack of reconciliation between different areas of the proposal – Technical including Specific Technical Understanding and Resources section – Management – Small Business Subcontracting Plan – Cost Common Cost Volume Errors (Cont’d)

Questions? 23

24 RLLS Schedule and Closing Remarks Lara N. Procknow

Pre-Proposal Conference Remarks These slides are not to be interpreted as a comprehensive description of the requirements in the Request for Proposal (RFP). Information provided today is to assist in the development of proposals. Please continue to monitor the NASA Acquisition Internet Service (NAIS) and RLLS Website for information related to this procurement. Official responses to written ( ed) questions will be posted to the RLLS Website and NAIS via a future synopsis. 25

Procurement Schedule (Subject to Change) 26 MilestoneDate Pre-Solicitation Synopsis July 29, 2011 Issue Request for Proposal February 21, 2012 Pre-Proposal Conference February 28, 2012 Industry Comments on RFP DueMarch 13, 2012 Proposals DueApril 23, 2012 Contract AwardJune 29, 2012

Questions? Please let us know if you have any questions regarding the information provided today 27

Thank you for attending the Johnson Space Center Pre-Proposal Conference for RLLS 28