NPIC DATA SYSTEM DATA AND CONTROL SEGMENT ACQUISITION PHASE VOLUME IV COST PROPOSAL

• Document Type: CREST
• Collection: NGA Records (Formerly NIMA)
• Document Number (FOIA) /ESDN (CREST): CIA-RDP84T00037R000400020001-5
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 107
• Document Creation Date: December 28, 2016
• Document Release Date: September 4, 2007
• Sequence Number: 1
• Publication Date: February 24, 1982
• Content Type: REPORT

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UNCLASSIFIED
NPIC DATA SYSTEM
DATA AND CONTROL SEGMENT
ACQUISITION PHASE
VOLUME IV
COST PROPOSAL
STAT
UNCLASSIFIED
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NPIC DATA SYSTEM
DATA AND CONTROL SEGMENT
ACQUISITION PHASE
VOLUME IV
COST PROPOSAL
STAT
is
This data, furnished in connection with Request for Proposal 82-8-015 as amended, shall not be dis-
closed outside the Government and shall not be duplicated, used, or disclosed in whole or in part for
any purpose other than to evaluate the proposal. If a contract is awarded to this offeror as a result of
or in connection with the submission of this data, the Government shall have the right to duplicate,
use, or disclose the data to the extent provided in the contract. This restriction does not limit the
Government's right to use information contained in the data if it is obtained from another source
without restriction.
STAT
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Section Page
1 TABLE OF CONTENTS ii
2 INTRODUCTION IV-2-1
3 PROJECT DATA IV-3-1
3.1 DD633 IV-3-1
3.2 Price by GWBS Level 2 Element by FY 82-88 IV-3-21
3.3 Price by FY 82-88 in 82 Dollars IV-3-22
3.4 Manhours by GWBS Level 2 Element by FY 82-88 IV-3-23
3.5 Distribution by Organization of GWBS Level 2 IV-3-27
Element Manhours
3.6 Price for Non-Labor by GWBS Level 2 Elements IV-3-28
by FY 82-88
3.7 Costs for GFE IV-3-29
4 CONTRACTOR DATA
4.1 Labor Skill Levels, Rates and Travel
4.1.1
4.1.2
4.1.3
4.1.4
4.2
Organizational Breakdown Structure to GWBS
IV-4-1
IV-4-1
IV-4-2 STAT
IV-4-18
IV-4-22
IV-4-30
IV-4-43
5 ASSUMPTIONS IV-5-1
5.1 Schedule Assumptions IV-5-1
5.2 GWBS Assumptions IV-5-I
5.2.1 Project Management IV-5-1
5.2.2 System Engineering IV-5-2
5.3 Miscellaneous Assumptions IV-5-4
5.3.1 Government Furnished Equipment IV-5-4
5.4 Subcontracts Evaluation Process IV-5-4
5.5 Cost Substantiation Data IV-5-6
5.5.1 System Engineering Estimating Rationale IV-5-6
5.5.2 Software Development Estimating Rationale IV-5-8
6 COST DRIVERS IV-6-1
6.1 Hardware Configuration to Meet IV-6-1
Performance, Design Margin and
Availability Requirements
6.2 Integrated Work Station - CID IV-6-2
6.3 Number of Integrated Work Stations IV-6-2
6.4 Software Development - BOC IV-6-3
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Section Page
6.5 Software Development - IOC IV-6-3
6.6 Development and Test Facility IV-6-4
6.7 Operations and Maintenance - IOC & FOC IV-6-4
7 FEE PROVISIONS IV-7-1
7.1 Award/Incentive Fee Plan Highlights IV-7-1
7.2 Award Incentive Fee Plan IV-7-2
7.2.1 Introduction IV-7-3
7.2.2 Organization IV-7-3
7.2.3 Award Process IV-7-3
7.2.4 Award Review Board IV-7-3
7.2.5 Frequency of Evaluations and IV-7-4
Fee Determinations,
7.2.6 Fee Allocations by Performance IV-7-4
Period
7.2.7 Fee Evaluation Process - Specific IV-7-4
Responsibilities
7.2.8 Discrepancy Reporting IV-7-6
7.2.9 Performance Measurement Categories IV-7-6
7.2.10 Computation of Award Fee IV-7-7
7.2.11 Termination IV-7-8
7.2.12 PMC Guidelines for Rating Schedule IV-7-8
Performance
7.2.13 PMC Guidelines for Rating System IV-7-9
Management
7.2.14 PMC Guidelines for Rating Segment IV-7-10
Interface Management
7.2.15 PMC Guidelines for Rating Cost IV-7-11
Effectiveness
7.2.16 PMC Guidelines for Rating Subcontract IV-7-12
Management
7.2.17 Award Fee Evaluation Form IV-7-13
7.2.18 M84 Cost/Schedule Incentive IV-7-14
8 OFFEROR SCHEDULE OF FUNDING REQUIREMENTS IV-8-1
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SECTION 2
COST PROPOSAL
Introduction
This volume contains the cost proposal for the D/C Segment Acquisition
Phase contract of the NDS Program. The proposal covers all costs associated
with the design, development, acquisition, test and transition to full
operating capability (FOC) of the D/C Segment from May 1, 1982 through July
31, 1988. The costs herein are subdivided to separately state the cost of
implementing the BOC, the IOC and the FOC milestones. The proposal sets
forth the estimated cost of performance by the
members of the D/C Segment Team,
STAT
STAT
STAT
Teaming agreements exist between and the three respective team members STAT
whereby, subject to NPIC approval, will award a subcontract to each SIAI
company for portions of the D/C Segment acquisition when a prime contract
is awarded to F-~ STAT
D/C Segment Acquisition Phase price steps expressed in escalated dollars
are summarized as follows:
STAT
a. Acquisition-price through IOC plus O&M through
September 30, 1986.
b. Acquisition price increment for FOC and O&M
through July 15, 1988.
c. Total acquisition price
recommended approach and proposed pricing yield a program funding STAT
profile by fiscal year as follows:
STAT
82
83
84
85
86
87
88
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Cost Drivers (Continued)
3. Hardware configurations to meet
performance, design margins and
availability.
ADPE consists of twos 3081 and
one 3033 processors and peripherals
4. One-thousand Integrated Work
Stations in three types
including 500 IWS's with
Collateral Information Displays
(CIDs)
5. Development and Test Facility
Equipment and Operations
STAT
Equipment consists of 1-3081,
1-4341 and 1-Univac 1100/81.
Operations are planned for 34
months (19 months for 1100/81)
with substantial periods of 3
shift operation.
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6. Operation and Maintenance
following IOC/FOC.
Costs include commercial hardware
and software maintenance and
maintenance personnel.
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Sections 3 through 8 which follow and Appendices C1 through C11 are prepared
in accordance with the Government's RFP instructions and are believed to be
fully responsive thereto.
STAT
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SECTION 3
PROJECT DATA
SECTION 3.1
DD 633'S AND ACCOMPANYING DATA
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UNCLASSIFIED
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DEPARTMENT OF DEFENSE
Dori as 0.341
CONTRACT PRICING PROPOSAL
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1. The purpose of this form (DAR 16-206) is to provide a vehicle whereby the offeror submits to the
Government a pricing proposal of estimated and/or incurred costs by contract line item with supporting
information, adequately cross-referenced, suitable for detailed analysis. A cost element breakdown, using
the applicable format prescribed in 7A. B or C below, shall be attached for each proposed line item, and
must reflect any specific requirements established by the Contracting Officer. Supporting breakdowns
must be furnished for each cost element, consistent with the offeror's cost accounting system. Where
agreement has been reached with Government representatives on use of forward pricing rates/factors,
identify the agreement and describe the nature thereof. Depending on the offeror's system, breakdowns
shall be provided for the following basic elements of cost, as applicable:
Materials - Provide a consolidated priced summary of individual material quantities included in the var-
ious tasks, orders or contract line items being proposed, and basis for pricing (vendor quotes,
invoice prices, etc.). DAR 15-205.
Subcontracted Items - Include parts, components, assemblies and services to be produced or per-
formed by other than you in accordance with your design, specifications or directions and
applicable only to the prime contract. For each subcontract over $100,000, the support should
provide a listing by source, item, quantity, price, type of subcontract, degree of competition
and basis of establishing source and reasonableness of price, as well as results of review and
evaluation of 'subcontract proposals when required by DAR 3-807.
Standard Commercial Items - Consists of items which you normally fabricate, in whole or in part,
and are generally stocked in inventory. Provide appropriate explanation of basis of pricing. If
based on cost, provide cost breakdown; if priced at other than cost, provide justification for
exemption from submission of cost or pricing data as required by DAR 3.807.
Interorganizational Transfers (at other than cost) - Provide explanation of pricing method used as
required by DAR 15-205.22. ?
Raw Material - Consists of material which is in a form or state that requires further processing.
Provide priced quantities of items required for this proposal. DAR 15-205.-
Purchased Parts - Includes material items not covered above. Provide priced quantities for items
required for this proposal. DAR 15-205.
Interorganizational Transfers (at cost) - Include separate breakdown of cost by element.
Direct Labor - Provide a time-phased (e.g., monthly, quarterly, etc.) breakdown of labor hours, rates,
and cost by appropriate category and furnish basis for estimates. DAR 15-202 and 15-205.
Indirect Costs - Indicate the method of computation and application of your indirect costs, including
cost breakdowns, and showing trends and budgetary data, to provide a basis for evaluation of
the reasonableness of proposed rates. Indicate the rates used and provide an appropriate expla-
nation. DAR 15-203 and 15-205.
Other Costs - List all other costs which are not otherwise included in the categories described above
(e.g., special tooling, travel, computer and consultant services, preservation, packaging and
packing, spoilage and rework, and Federal excise tax on hushed articles) and provide basis for
pricing.
Royalties - If amount exceeds S250, the offeror must submit a DD Form 783- Royalty Report or its
equivalent. DAR 15-205 and 9.409.
Facilities Capital Cost of Money - The offeror must submit Form CASB-CMF and show calculation of
proposed amount.
2. As part of the specific information required by this form, the offeror must submit with this form,
and clearly identify as such, cost or pricing data (that is, data which is verifiable and factual and other-
wise as defined in DAR 3.807.1(al(l)). In addition, submit with this form any information reasonably
required to explain the offeror's estimating process, including:
a. The judgmental factors applied and the mathematical or other methods used in the estimate
including those used in projecting from known data, and
b. The contingencies used by the offeror in the proposed price.
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00633- ATTACHMENT
INFORMATICS! FOR QUESTION C IN SECTION VI
Chas received several initial notices on non-compliance
which have subsequently been determined by the ACO to be
immaterial. In addition, there are several initial notices
of non-compliance which are under discussion with the ACO
and for which final determinations are pending. It is
opinion that, regardless of the final determination, none of
the non-compliances will have a material cost impact."
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STAT
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I. Price excluding Standard Commercial Items
II. Standard Commercial Items* Attachment 2
III. Total Price of this Proposal
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*The commerciality in the price of all line items with a price
based on catalog or market price must have your concurrence
prior to execution of any contract resulting from the proposal.
STAT
STAT
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Potential Impact
Requirement
Reason for Requirement
If Not Provided
o
Complete List of Software/
u
To Identify Software Develop-
o
Incomplete Identification of
o
Support Tools Currently
ment and system Support
Available Tools Could Result
being Used at NPIC
Tools Useful for Development
in Lower Development
Productivity
o
Univac System Software
o
Software Required to Support
o
GFE Lowers Cost to Customer-
o
Development Effort and CH Control
Alternative is IIIM Rental
Schedule and ROM COST
Location* (1000'x)
11/82,
11/82,
C o Baseline NPIC-System Source o Software Required to Support o Copies of Existing Code is o 11/82,
Code/Object Code Development Effort and CH Prerequisite to NPIC Software
tj Control Development Effort-Other
Options Not Available
o Univac 1100/81 Development o Required for Univac Configuration o GFE Lowers Cost to Customer o 11/82,
Configuration-Associated Software Development/integration/ -Alternative is IBM Rental
Peripheral-Including FEP Test and D/C Segment
(Detailed Equipment List in
Volume IV-Cost Proposal)
o (5) 1)D5600 Terminals and o Required for Development/ a Potential Schedule Delay and o 11/82,
Two Multiterms Integration and Test Lower Confidence in DDS600
Interface-Alternative is to
Purchase DDS600 Terminal
Emulators from Delta Data
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o Provide Prototype Comm o Prototypes Required for Early
Network Hardware Including Development and Integration
Associated Support Equipment Activity
and Software. Equipment
to Include:
(AN) LAN Cable
(2) FEP Interface for
1100/81
(2) FEP Interface BTU's
for 3705/3081
(2) IWS Interface BTU's
(2) D1)5600 Interface/
Nultiterm DIU
(I) Remote Job Printer
Interface B1U
Potential Impact Schedule and
If Not Provided Location*
o Alternatives are Available for o 3/83,
Strictly Software Development
o Alternatives are Not Available
for Preliminary Interface
Development and Checkout
o Potential Impact-Schedule
Delays Due to Inadequate
Interface Definition and
Verification
a Provide Production Comm o Production Equipment Required
Network Hardware and for Integration and Test of D/C-
Associated Support Equipment/ C/S Segment Interfaces
Software/Documentation to
Include LAN cable and
Sufficient BTU's to Support
Four 3705's with five 56
Kbps Parts, Six IWS's, One
Univac FEP, Two Delta Data
Nultiterms and one Remote
Job Printer
o -Comm Interface and inter- o 8/83,
segment Test Impacts
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RON COST
(1000'x)
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o
Current
NPIC
Data
Base
(DII)
o
Data Base
Conversion and
CM
o
Decreased
Efficiency
in o
Control
Process
o
User/Programmer/Maintenance
o
Understand Current System
o
Decreased Efficiency in o
Manuals for Existing System
and for Development
Redesign Process
(Ilardware/Operating System/
Tools/Other Software
5/82,
5/82,
o Results ofT&1 o Data Required to Support User o inability to Take Advantage of o 5/82,
C Analysis and Evaluations Interface and IWS Design Study Results
1 -
W
o Part I Specs and Program
W (XOJ, XTS, XMC, XCN, XSS,
GU11)
o Part of NPIC BOC Baseline for o Initial Productivity Lowered o 5/82,
Configuration Control During Time Period Required
to be Proficient in CPCI
Designs 4
SXX, XMN, Terms)
o
NPIC Segment Updated
o
Needed for generation of D/C
o
Lack of Timely D/C Segment
o
5/82,
Interface Specifications
Segment Detail Design
Design Specifications
o
Scenarios for Interfaces to
o
Required to Develop Software
o
Incomplete Testing Prior to
o
1/83,
D/C Segment:
Simulations for D/C Segment
Site Shipment
- C/I Segment
Integration and Test
- E/R Segment
o Part 11 Specs and Program
Listings (XOJ, XTS, XMC, XCN,
- External liners
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Ron COST
(1000's)
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n
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Univac and C/S Vendor
Services to Support Develop
and Integration
o
o
Required During Early Test of o Increased
Interfaces so as to Eliminate Government
Problems. D/S or C/S
Provides C/S Contractor with
UNIVAC - ODS600 Test Bed
Risk During BOC at
Site Integration
o
3/83,
o
Vendor Services for Other
lutegration/Test/and
Equipment Maintenance
Activity
e.g.: C/I Segment Equipment
D/C Segment Equipment
o
o
Required to Generate Other o Delay Duri
Segment Equipment During Test With Possi
and Integration and Resolve Operation
Interface Problems
Pre-tests Common Data Base
Language
ng IOC Integration
ble Disruption of
at Government Site
o
3/84,
o
NPIC/CSD Services for Con-
sultation Relative to
o
Required on a Continuing Basis o Delivered
to Verify Technical Requirements, Optimally
System Will ?Wt
Reflect Users
o
5/82,
Existing System
Operation
NPIC Changes (NW, SW and Procedures), Requirements
and Human Factors During the o Impact on Analyst, Particularly
Period of the Contract on Training Requirements Will
Increase
o Post-delivery Changes May be
Necessary
o
Provide Engineering Support
Services for Integration and
Equipment Maintenance
o
Installation and Maintenance o
for GFE Equipment
u
NPI
Contract Directly with
C Comm Contractor
o
3/83,
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ROM COST
(1000's)
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8500 Sq. Ft. Floor
Space, Raised 18 Inches
60 llz 234 KVA
400 Ilz 62 KVA
58 Tons A/C
181 K Btu/llr
20 ,-80?,t' Rel. Bum.
Office Space for 15
People
o Space at NPIC for Six People o Data Base Conversion - V6-V8
. to Support V6/V8 DNBS Coav
o Office Space fort INepre- o NPIC Coordination with D/C
sentative at NPIC SITE Segment Contractor
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Potential Impact Schedule and RON COST
If Not Provided Location (1000's)
o Prerequisite for V6-V8
Conversion
o Coordination Would be Provided o
through location
Supports Computers maintenance, - Prerequisite for Installation,
Operations, Test and Integration Operation and Support of NPIC
Computer Center
ottice spa for 3 O&N
People
IWS
1589 KVA 6011z
452 T9ns A/C
(Further Detail in Tech Prop
Appendix A6)
STAT
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SIAM
STAT
STAT
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in-
0
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225
Ft2 Office/Maint,
Area
IWS
330 KVA 60 Hz
94 Tons A/C
o
Potential Impact Schedule and ROM COST
If Not Provided Location (1000?s)
Supports IWS Installation, Test, - Prerequisite for IWS Support
O&M
To Train Instructors and Main- o Training Effort Hampered
Lenance Personnel
o Access to NPIC Personnel for o Needed for HOC DB and SW o Decreased Efficiency in
Data Base USM 1100 V6/V8 Translations Conversion Process
Conversion
o Support of CSD/Univac o Needed for BOC DR and S/W o Decreased Efficiency in
Personnel for Software Translations Conversion Process
Conversion
o Access LoT&I Activity- o Access to NPIC Personnel for o This Activity Will Have Direct
Possible Joint Activity Engineering User Interfaces/ Impact on Acceptability of NOP
Related to Image Analyst Display Formats/and User Related Improvements
Activity Definition and Operations, Concepts
Human Factors Related
Studies for Work Station
Design (Experiments and
Data Collection Would he
(Further Detail in Tech Prop
Appendix A6)
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Performed Byl
Based on 1)/C Segment
and IWS Requirements)
(Further Detail in Tech Prop
Appendix A6)
Potential Impact Schedule and NON COST
If Not Provided Location (1000'x)
o Access to Customer SI and o Interplanning/Segment o Inefficient Information o 5/82, SITE
Other Segment Contractors Integration Interface Control Exchange
Working Group Meetings
* Schedule indicates date desired. Requests for updated information will be made as needed.
Where applicable, GFE will be tested to verify its operability. On completion
of the tested GFE, a report is written and delivered to the Government.
STAT
STAT
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Section 4
Contractor Data
Section 4.1
Contractor Labor Skill Levels and
Rates and Travel Costs
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A. Backup Data H
?
STAT
(1) Labor Skill Levels and Rates
Labor Rates. Labor rates at the are those hourly STAT
rates charged by personnel whose wor :,can a readily identified with a specific
product or contract. Engineering personnel are categorized and identified by
four-digit job codes, ranging from the most professional to the least professional
positions. These Engineering job codes are then segregated into five groups,
starting with the highest, Group A, and, proceeding to the lowest, Group E.
Following are the applicable categorizations:
Program Manager
Senior Engineer
Senior Systems Analyst
Senior Systems Analyst - Mgr.
Senior Programmer
Senior Programmer - Mgr.
Senior Systems Analyst
Senior Engineer - Staff
GROUP B
Development Engineer
Development Systems Analyst
Development Program Office Mgr.
Development Publications Mgr.
Development Programmer
Advisory Systems Analyst
Advisory Financial Analyst
Advisory Administrative Assistant
Advisory Engineer
Advisory Programmer
GROUP C
Project Systems Analyst
Department Manager
Project Engineer
Project Systems Analyst
Project Publications Manager
Project Programmer
Staff Systems Analyst
Staff Financial Analyst
Staff Administrative Assistant
Staff Program Evaluation Analyst
Staff Industrial Engineer
Staff Engineer
Staff Technical Writer
Staff Programmer
GROUP D
Sr. Associate Instructor
Associate Instructor
Sr. Associate Systems Analyst
Financial Analyst
Associate Financial Analyst
Publications Specialist
Sr. Publications Specialist
Sr. Technical Editor
Technical Editor
Programmer Analyst
Sr. Program Evaluation Analyst
Program Evaluation Analyst
Sr. Staff Assistant
Sr. Accountant
Staff Technical Editor
Associate Field Engineer
Sr. Associate Engineer
Associate Engineer
Technical Assistant
Technical Associate
Sr. Associate Technical Writer
Associate Technical Writer
Sr. Associate Programmer
Associate Programmer
Sr. Associate Program Writer
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GROUP E
Staff Assistant
Field Engineer
Program Technician
Laboratory Specialist
Draftsman
Photo Lab Technician
Editorial Assistant
Administrative Aide
Secretary
Typist
Librarian
Computer Operator
Repro Operator
Junior Programmer
Junior Engineer
Technical Editor
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?
Examples of the preceding skill levels applicable to personnel currently
working on the Design Competition Phase (DCP) contract are:
Skill Level Title
A Senior Engineer
B Advisory Engineer
C Staff Programmer
0 Senior Associate Programmer
E Secretary
Labor rates are forecast for each group by reviewing historical rates and by
considering: (1) personnel movement between job codes, (2) annual increments,
and (3) overtime levels which decrease exempt rates and increase nonexempt
rates. The forecast rates then become the basis for the pricing process.
labor rates are recorded on a contract level as they are incurred.
orecast and actual rates are continuously reviewed by the DCAA in
STAT
STAT
STAT
STAT
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estimating procedures for vacation, holidays and sick leave/authorized
aosence time are as follows:
Vacation
Vacation entitlement is dictated by Company policy. In estimating this
expense for a particular year, the following steps are followed:
1) The year's average headcount is calculated factoring in population
changes for transfers and hires based upon approved manpower plans;
2) Entitlement for step 1) is determined based upon entitlement at a
particular given point;
3) Average salary by entitlement category is projected factoring in
salary increments consistent with the approved salary plan for the
year;
4) Step 3) x 2) given vacation expense for the year;
5) Salary increment is added for prior year vacation;
6) 4) + 5) = vacation expense.
The number of days estimated in our rates is 18.
Holiday
The number of holidays are dictated by Company policy. In estimating the
holiday expense the following steps are followed:
1) Project the average monthly population based upon approved manpower
plans;
2) Project the average daily salary including a factor for salary
increment consistent with the approved salary plan for the year;
3) The results obtained in steps 1) and 2) applied to the number of
holidays equals the years holiday expense.
The number of days estimated in our rates is eleven.
STAT
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STAT
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Sickness and Accident/Authorized Absence
Sickness and accident/authorized absence expense is determined as follows:
1) Project the average population based upon approved manpower plans;
2) Project the average weekly. salary including a factor for salary
increment consistent with the approved salary plan;
3) Determine the number of work weeks and applying a historical % of
absence time (S&A/A.A.) results in the projected absence time for
the year;
4) The result of 3) x 1) x 2) equals the total sickness and accident/
authorized absence expense for the year.
The number of days estimated in our rates is 11 days.
Company Overtime Policy:
Exempt Employees
Compensation for Management-Directed Extra Effort and Time.
It is sometimes necessary for exempt employees to work extra time in order to
? fulfill the normal duties and-responsibilities of their jobs. In these in-
stances it normally is no ntent to pay additional compensation for the STAT
extra time because salaries or exempt employees are based on performance of a
total job and not specific hours worked. There are occasions, however, when
business circumstances require exempt employees, at the request of management,
to put in extra effort and time beyond normal requirements. In these cases,
it is 0 intent to provide additional compensation or, where appropriate, STAT
compensating time off in order to recognize the added job requirements not
covered by base salary. In effect, additional compensation for exempt em-
ployees is a temporary adjustment to base salary in order to cover temporary
expansion of job requirements.
Exempt employees (except personnel compensated under a commission/incentive
plan) are eligible for compensation for mangement-directed extra effort and
time. Additional compensation for exempt employees will be a dollar amount
based on salary and the anticipated degree of extra time required, to fulfill
the specified extra job requirements. The amount will be committed in advance
and normally paid in full regardless of the number of hours worked. In case
of cancellation of the task or assignment, or other extenuating circumstances
that substantially alter the extent of an employee's extra effort, the payment
may be prorated on the percentage of extra time worked.
?
Payment commitments may be made for two, three or four weeks. Because these
commitments are normally paid in full regardless of the number of hours worked,
it is generally good practice to limit them to the mimimum number of weeks
necessary to satisfy pre-scheduling requirements; then, if extra time require-
ments are expected to continue beyond that, an extension of the original
authorization or a new commitment can be made.
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Regular exempt employees will receive shift premium for work on a second or
third shift. When the schedule is for at least five payroll workdays in a
payroll workweek and at least one day of scheduled second or third shift work
assignment is worked, the employee will receive the applicable shift premium
for the entire week. When absent for illness or for personal reasons approved
by management, employees will receive the same rate of shift premium which
they would have received had they worked.
When an employee is scheduled for a split-shift workweek (i.e., more than one
shift schedule in a week), the weekly shift premium amount will be prorated on
a daily basis. When at least one day of the scheduled second or third shift
work assignment is worked, the employee will receive the applicable shift
premium as prorated for the week. When absent for illness or for personal
reasons approved by management, employees will receive the same rate of shift
premium which they would have received had they worked.
A shift that starts at or after twelve noon and extends beyond the stopping
time of the first shift.
Second Shift Compensation
10% of base salary
Third Shift
A shift that starts at or after 9:00 p.m.* and prior to 4:00 a.m.* and extends
beyond the stopping time of the second shift.
Third Shift Compensation
123x,% of base salary
Non-Exempt Employees
To recognize the value of services performed during unusual hours or conditions
of work by providing pay in the form of added compensation beyond base salary.
Compensation provisions covering these unusual situations result from:
1. Federal, state, and local laws providing for minimum payments in
certain situations. These laws include the Fair Labor 'Standards
Act, the Equal Pay Act of 1963, the Walsh-Healey Public Contracts
Act and the Portal-to-Portal Act.
2. objective to compare favorably to the compensation practices
of other leading companies for similar unusual hours or conditions
of work.
Daily Overtime
a. All hours in excess of regularly scheduled hours during an employee's
regular payroll workday or in excess of 8 consecutive hours (exclusive
?
is
STAT
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?
of the meal period) will be considered as overtime hours. Noncon-
secutive overtime hours could also result from emergency work or
early arrival on the following day.
b. Compensation for Daily Overtime
1) Time and one-half for all hours worked in excess of 8 hours on
any payroll workday, or in excess of 8 consecutive hours of
work, (exclusive of the meal period).
2) If an employee's regular schedule is less than 8 hours per day,
the employee will receive straight time for extra time worked
between regularly scheduled hours and 8 hours per day.
a. Shift premium is paid to employees assigned to work on second or
third shift. Shift premiums are normally paid only for hours worked
on second or third shift. Shift premiums, where applicable, must be
initially added to base rates and the sum used to compute total
compensation.
?
b. Compensation for Second/Third Shift
1) Second shift -- 10% of base hourly rate
Second shift is a shift that starts at or after 12:00 noon and
extends beyond the stopping time of the first shift.
2) Third shift -- 12h% of base hourly rate
Third shift is a shift that starts at or after 9:00 p.m. and
prior to 4:00 a.m. and extends beyond the stopping time of the
second shift.
2. Other Rates
verhead Rates. Overhead expenses at the STAT
include all costs, except direct materials and direct labor, tat are STAT
incurred in producing a product or fulfilling a contract but which cannot be
readily identified with a specific product or contract. Overhead expenses
include accounting and financial services, personnel administration, normal
office functions, general administration and such items as light,, heat, power,
taxes and employee benefits.
Such costs are either incurred (1) jointly to benefit a group of contracts or
products, or (2) in such insignificant individual units that the expense of
tracing them to products is prohibitive. Overhead expenses, therefore, must
be indirectly related to the products or contracts through some equitable
assignment.
To equitably distribute overhead costs, it is necessary to determine overhead
costs, establish management control, determine price for products and facilitate
preparation of accounting statements. Before the actual overhead costs are
? finally distributed by an automated computer system, overhead expenses must be
classified through accounting schedules into types of departments. A department
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is classified as either direct or indirect according to its function. Groups
of departments are then formed into overhead "pools" and indirect "centers".
An overhead pool is a collection of indirect department expenses that support
a common effort, and a direct center is a group of direct departments that
perform a common effort.
Overhead distribution is calculated monthly. Work-in-process accounts are
adjusted periodically to reconcile the difference between the actual rates and
the applied rates.
accounting procedures for overhead distribution are continually reviewed
by the Defense Contract Audit Agency (DCAA) in residence Table 2
identifies the current submitted overhead bidding rates. The Burden Center
code is a two-digit identifier used in the pricing system.
The employs a waterfall method of allocation for
overhead expense to develop 26 composite rates. These rates are applied as a
rate per direct labor hour (hours worked). The waterfall distribution starts
with indirect costs of approximately 2500 departments within the division,
segregates the costs to approximately 100 overhead pools and develops the
applied rates for the major functions and locations within the division.
Overhead Pools, Centers and Distribution Basis
Expense
Pool
Content
Distribution Basis
Local Benefits
Divisional
Salary
Occupancy
Location
Site Area
Office Services
Location
Site Total Hours
General Works
Location/Division
Location Pools to
Division Total Hours
Supervision/Support
Location
Direct or Total Hours of
Pool/Center(s) Benefiting
Burden Center Indirect
Location
Direct Hours
Expense
Overhead Application Basis
Burden Centers
Application Basis
Engineering
Direct Hours
Procurement
Direct Purchase Dollars
?
STAT
STAT
STAT
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Premise Rates.
Premises. This rate is applied to all direct hours performed on
premises.
?
STAT
Customer Premises. This rate is applied to all direct hours performed on the
customers premises. The customer will provide office space, mail services,
telephone and like support items. The rate excludes a charge for office
services and occupancy that is included in the= premises rate. To qualify STAT
for this rate, the contract must require= peop e, on an individual basis, SIAI
to be located on the customer's premise for at least six months.
In order to understand the waterfall system, the analyst must first be cogni-
zant of the organization structure within the division. The approximately
2500 departments are organized by location and by functions within a location.
Each department is assigned a department number when it is created. To this
department number, a numerical identificatiorr, a three-digit alpha code is
assigned, denoting the overhead pool or center in the waterfall system.
Hence, since each employee is assigned a department working number, the system
can accumulate the necessary statistics or data by department and by pool or
center. Further, each department is assigned work package numbers. To this
work package number, a one-digit identifier is assigned denoting that the task
is direct or indirect. Since all costs within the accounting system are
charged to work package numbers, the system senses whether the cost incurred
is direct or indirect. Further, the accounting system assigns account numbers
to the type of costs incurred through the various payment sources. The system
can accumulate and segregate data on all of these identifiers. ?
Hence, the system can portray the indirect hours, the direct hours, the total
hours, the indirect salary dollars, the direct salary dollars, the total
salary dollars and the controllable expense incurred by department number,
thus by pool and center. One more table exists within the system to maintain
square feet occupied by departments in the burden pools.
Figure 1, Waterfall Method of Allocation, depicts the system in a simplistic
format. In general, the expense which is most common is allocated to the
remaining pools or center which is least common or higher in the desired
Division organization structure. The first block or tier in the system is
employee benefits. Two different pools exist within the Division to segregate
benefits, local employee benefits, i.e., sickness and accident, allocated on
total salary dollars and corporate employee benefits, i.e., retirement benefits,
allocated on total hours. Once the employee benefits pools are closed out and
every remaining pool has its share of employee benefits, the occupancy pools
are closed out based on square feet of space used by the departments within
the individual sites. Next, the office services pools, etc. are closed out
until all pools are closed into the overhead centers.
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Local Employee Benefits
General Employee Benefits
Occupancy
General Works
Engineering Services
Manufacturing Supervision
Engineering Customer Premise
Manufacturing
I Procurement
OCC OS
9 EB
EB OCC OS GW
FR nrr nc -%Al
OS GWOS GW ES
f'AAl
Figure 1 Waterfall Method of Allocation
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General and Administrative (G&A) Rates. The total General and Administrative
(G&A) rate is applied as a percentage to the total factory cost. The G&A
expense is comprised of the following: Corproate Headquarters Allocation of
G&A exnanse_ Tndenpndant. Racaarrh and Development, Bid and Proposal, General
G&A expense.
Within the Unit there are two G&A pricing rates: regular and
special subcontracts. In general, the rate for special subcontracts, which
excludes an allocation of marketing expense, is used when F1 purchases a
segment of work from another contractor which has a mimimum value
on a total program basis.
Within the Systems Integration Unit there is one G&A pricing rate. It is
applied only to the system engineering, subcontract management, system test
and integration and program management costs. No G&A is applied to major
subcontract costs.
Table 3 identifies thel IG&A rates.
Table 3 G&A Bidding Rates
Cost-of-Money. The bid rates for Cost-of-Money (COM) are derived on a histor-
ical basis. The average asset base for the previous year is determined for
each organization represented by a burden center. The interest rate is then
applied to this asset base to determine the cost-of-money. The COM is alloca-
ted over the direct labor hours in that burden center to arrive at a COM per
hour. The G&A COM rate is calculated by using the COM allocated to assets
utilized by organizatio7i .
n G&A, and an allocation of the corporate assets
which are applicable to as well as the COM for Independent Research and
Development (IRAD) and B&P. This total G&A part of the COM is then spread
over the cost production for the Division. Table 4 identifies the specific
current submitted rates by overhead centers for calculating COM.
?
STAT
STAT
STAT
STAT
STAT
STAT
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STAT
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111M
TRAVEI.
C Los Angeles, CA
P
Boston, HA
Philadelphia, 1'A
Washington
Metropolitan Area
?
1982 System Engineering Review of IWS effort
1983 System Engineering Review of IWS effort
1982
1983
1984
1985
1986
Interlace
Standards
Coordination
Meetings
with
the SI
Interface
Standards
Coordination
Meetings
with
the $I
Interlace
Standards
Coordination
Meetings
with
the SI
Interface
Standards
Coordination
Meetings
with
the SI
Interface
Standards
Coordination
Meetings
with
the SI
1982 Coordination Meetings with sleigh
1983 Coordination Meetings with sleigh
1984 Coordination Meetings with aleigh
1985 Coordination Meetings with aleigh
1982 Coordination Meetings with the work station vendor
1983 Coordination Meetings with the work station vendor
1984 Coordination Meetings with the work station vendor
1985 Coordination Meetings with the work station vendor
1982 Performance Analysis for technical measurements with Raleigh
1983 Performance Analysis for technical measurements Witt Raleigh
1983 Performance Analysis for technical measurements wit Raleigh
1982 Coordination Meetings for the work station Cl design
1983 Coordination Meetings for the work station CI design
1982 Work station spec reviews with Sl
1983 Work station spec reviews with SI
1984 Work station spec reviews with Si
1983 Work station spec reviews with SI
1984 Work stafiou spec reviews with SI
1985 Work station spec reviews with SI
1985 Travel for testing changes (10C)
1986 Travel for testing changes (IOC)
?
3 2
3 2
2 2
is
STAT
STAT
mSTAT
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Iall
TRAVEL
Washington 1982 Local travel for Schedule Control personnel to visit customer site 16 1 1
Metropolitan Area 1983 Local travel for Schedule Control personnel to visit customer site 24 1 1
1984 Local travel for Schedule Control personnel to visit customer site 24 1 1
1985 Local travel for Schedule Control personnel to visit customer site 24 1 1
1986 Local travel for Schedule Control personnel to visit customer site 24 1 1
1987 Local travel for Schedule Control personnel to visit customer site 14 1 1
Washington 1982 Local travel to discuss costs status
Metropolitan Area 1983 Local travel to discuss costs status
1984 Local travel to discuss costs status
1985 Local travel to discuss costs status
1986 Local travel to discuss costa status
1987 Local travel to discuss costs status
1982 One trip per month by subcontract management to discuss SOL status
1983 One trip per month by subcontract management to discuss SUE status
1984 One trip per month by subcontract management to discuss SUL status
1985 One trip per month by subcontract management to discuss SUE status
1986 One trip per month by subcontract management to discuss SUE status
1987 One trip per month by subcontract management to discuss SUE status
Washington 1982 Local travel by Project Control Manager to visit customer
Metropolitan Area 1983 Local travel by Project Control Manager to visit customer
1984 Local travel by Project Control Manager to visit customer
1985 Local travel by Project Control Manager to visit customer
1986 Local travel by Project Control Manager to visit customer
1987 Local travel by Project Control Manager to visit customer
8 1 1
12 1 1
12 1 1
12 1 1
12 1 1
7 1 1
a 1 2
12 1 2
12 1 2
12 1 2
12 1 2
7 1 2
8 1 1
12 1 1
12 1 l
12 1 1
12 1 1
7 1 1
Philadelphia, PA 1982 Local travel by Project Control Manager to visit SI 2 1 2
1983 Local travel by Project Control Manager to visit SI 4 1 2
1984 Local travel by Project Control Manager to visit SI 4 1 2
1985 Local travel by Project Control Manager to visit SI 4 1 2
1986 Local travel by Project Control Manager to visit SI 4 1 2
1987 Local travel by Project Control Manager to visit St 2 1 2
?
STAT
C
5 STAT
r
yyD
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IBM
TRAVEL
Washington
Metropolitan Area
Washington
Metropolitan Area
Washington
Metropolitan Area
Washington
Metropolitan Area
Washington
Metropolitan Area
Washington
Metropolitan
Washington
Metropolitan Area
?
1982 IIQA monitoring
1982 IIQA monitoring
1983 RQA monitoring
1983 IIQA monitoring
1984 IIQA monitoring
1985 IIQA monitoring
1984 Monitor hardware installation
1985 Monitor hardware installation
1986 Monitor hardware installation
1984 SQA monitoring software installation and Lest
1985 SQA monitoring software installation and test
1986 SQA monitoring software installation and test
1982 Software development working meetings with the customer
1983 Software development working meetings with the customer
1984 Software development working meetings with the customer
1984 Supporting software site testing
1984 Supporting software site testing
1985 Supporting software site testing
1985 Supporting software site testing
1982 Perform software conversion task on site
1983 Perform software conversion task on site
1982 Test coordination meetings with customer (80C)
1983 Test coordination meetings with customer (BOC)
1983 Site test support for BOC (hOC)
1984 Site test support for BLOC (BOC)
1983 Test coordination meetings with the customer (10C)
1984 Test coordination meetings with Lite customer (bOC)
1985 Test coordination meetings with the customer (Joe)
?
45 2
108 2
36 2
240 5
48 2
36 2
66 1
140
60
?
STAT
STAT
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 ?
DESTINATION
Washington
fletropolitau Area
Washington
Metropolitan Area
Washington
HeLropolltan Area
Washington
Metropolitan Area
Washington
Metropolitan Area
Washington
Metropolitan Area
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W
1985 Test coordination and site test support for IOC
1985 Test coordination and site test support for IOC
1985 Test coordination meetings with the customer (FOC)
1986 Test coordination meetings with the customer (FOC)
1986 Teat coordination meetings with Lite customer (FOC)
1982 II.S logistic meetings
1983 U.S logistic meetings
1984 11.S logistic meetings
1985 I1.S logistic meetings
1986 11.5 logistic meetings
1982 Configuration management visits with SI and other segments
1983 Configuration management visits with Si and other segments
1984 Configuration management visits with SI and other segments
1985 Configuration management visits with SI and other segments
1986 Configuration management visits with Sl and other segments
1983 Configuration management visit with Segment contractor
1984 Configuration management visit with segment contractor
1985 Configuration management visit with segment contractor
1986 Configuration management visit with segment contractor
1983 Configuration management interface coordination
1984 Configuration management interface coordination
1985 Configuration management interface coordination,
1986 Configuration management interface coordination
1982 Configuration management planning & coordination w/NPIC and NCB/OC8 meetings
1983 Configuration management planning & Coordination w/NPIC and NC8/OCB meetings
1984 Configuration management planning & coordination w/NPIC and NCB/OCB meetings
1985 Configuration management planning & coordination w/NPIC and NC8/OCB meetings
1986 Configuration management planning & coordination w/NPIC and NCB/OCB meetings
1982 Configuration management planning & coordination w/NPIC and NCB/OC8 meetings
1983 Configuration management planning & coordination w/NPIC Slid NCB/OCB meetings
1984 Configuration management planning & coordination w/NPIC and NC8/OCB meetings
1985 Configuration management planning & coordination w/NPIC and NCB/OCB meetings
1986 Configuration management planning & coordination w/NPIC and NCB/OCB meetings
120
20
14 2
18 2
60 4
24 2
24 2
24 2
24 2
24 2
1 2
1 2
1 2
l 2
1 2
20 2
24 2
24 2
24 2
24 2
?
STAT
STAT
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UNCLASSIFIED
A. Backup Data
(1) Labor Skill Levels and Rates
LABOR
PRINCIPAL
6-15 years focused experience. Advanced degree (or equivalent experience).
Superior communications skills. Total competence in managing major areas
of business and multiple contracts. Faculty to fully communicate technical
knowledge. An example of a person currently working on the Design Competi-
SENIOR ASSOCIATE
5-9 years technical experience. Advanced degree (or equivalent experience).
Fully developed communication skills. Ability to develop innovative tech-
niques and work methods for technical assignments. An example of a person
currently working on the Design Competition Phase contract is
ASSOCIATE
3-7 years relevant technical/professional experience. Advanced degree (or
equivalent experience). Well developed communications skills. Assignment
planning and technical management ability. Exhibited leadership qualities.
An example rently working on the Design Competition Phase
contract is
ENGINEERING DRAFTSMAN
Principal responsibilities are:
A. To create and conceive simple and complex phases of all artwork
required for graphics department.
B. To create full color and black and white artwork.
C. To ensure quality standards and time commitments are met.
An exam le of a person currently working on the Design Competition
SENIOR CONSULTANT
1-5 years relevant technical/professional experience. Advanced degree (or
equivalent experience) in applicable discipline. Improved communication
skills. Ability to function independently on individuals tasks and con-
tribute to overall team performance. Able to work under limited direction
from others and may guide more junior staff. An example of a person
currently working on the Design Competition Phase contract is
?
STAT
STAT
STAT
?
STAT
STAT
STAT
?
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CONSULTANT
0-2 years relevant technical/professional experience. Advanced degree (or
equivalent experience) in applicable discipline. Good communication skills.
Works under direction of others. Responsible for in-depth data collection
and preparation of sections of draft reports. An example of a person
currently working on the Design Competition Phase contract i
SECRETARY
Principal responsibilities are:
A. To provide and maintain secretarial support in accordance with
established procedures.
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B. To exercise judgment in carrying out assigned tasks.
C. May perform some administrative tasks.
An example of a person currently working on the Design Competition Phase
contract is
WORD PROCESSOR SPECIALIST
The principal responsibilities of a Work Processor Specialist is to enter
and retrieve computer data using a Cathode Ray Tube terminal.
An example of a person currently working on the Design Competition Phase is
TECHNICAL EDITOR
Principal responsibilities are to ensure that the final copy of graphic or
typed material is accurate: i.e., grammatically correct, properly punc-
tuated, and spelled correctly. An example of a person currently working on
the Design Competition Phase is
STAT
STAT
STAT
STAT
UNCLOSS! Fi Fn
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UNCLASSIFIED
The base labor rates indicated are computed by dividing the annual salary
by 2,088 hours (the actual amount of hours in fiscal year 1982). However,
we calculate an effective person year in the following manner:
2,088
hours
(actual amount)
(100)
hours
(vacation)
(72)
hours
(holiday)
(40)
hours
(sick and miscellaneous)
1,876
hours
The vacation, holiday and sick and miscellaneous leave is included indirectly
in the Fringe Benefit allocation.
anticipate that the use of overtime will be necessary on
occasions to meet critical delivery schedules and to respond in a timely
fashion to quick turnaround technical analyses and reports.
Overtime premium is paid only to support personnel in such areas as typists,
word processor operators and similar support personnel who would be involved
in the publication of reports and analyses. The amount bid is based on the
historical experience for like programs and is stated as a percentage of
direct support labor costs. We estimate that the need for such overtime
premium will occur on specific occasions when program needs dictate quick
turnaround throughout the life of the contract. The use of overtime will
have no adverse impact on other DoD contracts; in fact, the occasional use
of overtime will relieve any necessity to divert support personnel from
other DoD contracts in order to meet critical schedule demands.
The labor and bid rates upon which this cost proposal is developed and
based, are those which are approved by our cognizant Government Auditor,
Defense Contract Audit Agency (DCAA). Detailed cost and pricing data with
respect to these rates and their application shall be furnished directly by
is
STAT
?
DCAA auditor may be contacted at by the STAT
Contracting 0 icer.
(2) Other Rates
Local travel costs included in this proposal are based upon current fuel
and auto operating costs. Such rates do not include provision for authorized
increases in the cost of fuel nor increases resulting from the imposition
of a Government surtax on fuel or parking.
is
UNCLASSIFIED
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STAT
TRAVEL
DESTINATION
FY
YEAR
TRIPS
PEOPLE
DAYS
1
Beth to G'burg
1982
405
2
1
2
Beth to Wash Metro area
1982
20
2
1
3
G'burg to Wash Metro area
1982
250
2
1
I
Beth to G'Burg
1983
972
2
1
2
Beth to Wash Metro area
1983
2,841
2
1
3
G'burg to Wash Metro area
1983
2,664
2
1
I
Beth to G'burg
1984
972
2
1
2
Beth to Wash Metro area
1984
1,487
2
1
3
G'burg to Wash Metro area
1984
2,146
2
1
14
1
Beth to G'burg
1985
1,046
2
1
2
Beth to Wash Metro area
1985
154
2
1
3
G'burg to Wash Metro area
1985
493
2
1
1
Beth to G'burg
1986
146
2
1
2
Beth to Wash Metro area
1986
48
2
1
3
G'burg to Wash Metro area
1986
12
2
1
1
Beth to G'burg
1987
132
2
2
2
Beth to Wash Metro area
1987
44
2
2
3
G'burg to Wash Metro area
1987
11
2
2
I Management Review - Coord for Tech Manual
2 Training
3 System Installation, check out and training
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STAT
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UNCLASSIFIED
A. Backup Data
(1) Labor Skill Levels and Rates
Administrative Secretary - 16
Function: Provides skilled secretarial and administrative support to one or
more members of middle management to enhance their operating efficiency.
An example of an individual working-on the Design Competition Phase contract
Executive Secretary - 18
Function: Types, takes dictation and performs a wide variety of confidential,
complex and administrative duties for a member of top management.
An example of an individual working on the Design Completion Phase contract
Assistant Staff Member - 22TB
Education: Bachelor's Degree
Experience: 0-2 years directly related professional work experience
or
Education: Formal education equivalent to 2 years of college
Experience: 2-4 years directly related professional work experience
Scope: Under close supervision, performs in an entry level professional
position - usually as a member of a team - requiring general knowledge of
engineering, physics, mathematics, operations research, computer science or
other similar field with a degree in engineering, science, mathematics or
related technical curriculum.
An example of an individual working on the Design Competition Phase
contract at this level is
Associate Staff Member A-24TB
Education: Master's Degree
Experience: 0-2 years directly related professional work experience
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STAT
STAT
STAT
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STAT
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UNCLASSIFIED
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0-
0
Education: Formal education equivalent to 2 years of college
Experience: 5-8 years directly related professional work experience
Scope: Within general guidelines, performs in a professional position
requiring specialized knowledge of economics, english, business administra-
tion, history, sociology, psychology, political science or other similar
field with a degree in liberal arts, business administration or the social
sciences.
An example of an individual working on the Design Competition Phase contract
at this level is
Staff Member - 26TB
Education: Doctorate Degree
Experience: 0-2 years directly related professional work experience and a
record of significant achievement in his/her field
or
Education: Formal education equivalent to Bachelor's Degree
Experience: 7-10 years directly related professional work experience and a
record of significant achievement in his/her field
Scope: With considerable latitude, performs in a professional position
requiring a thorough knowledge of engineering, physics, mathematics,
operations research, computer science or other similar field with a degree
in engineering, science, mathematics or related technical curriculum. May
perform in a project management role and act as prime customer interface.
An example of an individual working on the Design Competition Phase contract
at this level is
Senior Staff Member - 27TB
Education: Doctorate Degree
Experience: 5-8 years directly related professional work experience,
publication history, and recognition as a leader and authority in his/her
field
Education: Formal education equivalent to Bachlor's Degree
Experience: 10-15 years directly related professional work experience,
publication history and recognition as a leader and authority in his/her
field
STAT
STAT
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Scope: Within defined objectives but with considerable latitude, performs in a
professional position requiring an in-depth knowledge of engineering, operations
research, computer science, mathematics, political science, economics, psychology,
sociology, business administration, or other professional field. Capable of inde-
pendent complex analysis, concept formulation, and identification of new methods.
Will typically perform in a project management role and act as prime customer
interface.
An example of an individual working on the Design Competition Phase contract at
this level is STAT
Principal Staff Member - 28TB
Education: Doctorate Degree
Experience: 10-15 years directly related .professional work experience, an extensive
publication history, a record of research achievements and recognition as a leader
and authority in one or more disciplines
Education: Formal education equivalent to Bachelor's Degree
Experience: 15+ years directly related professional work experience, an exten-
sive publication history and recognition as a leader or authority in one or more
disciplines
Scope: Within broad objectives, performs in a professional position requiring
high level technical knowledge and experience and demonstrated ability to
analyze complex problems and develop unique solutions. Is a recognized
leader in one or more disciplines and will perform original research and
formulate new concepts. Will typically perform in a project management
role and act as prime customer interface.
An example of an individual working on the Design Completition Phase at
Senior Principal C and B - 29TB and 30TB
The education and experience requirements, plus the scope of work, are
comparable to those described for Principal Staff Member. However, to
become a Senior Principal B or C on the Professional/Technical Career
Ladder, a person's qualifications must be reviewed by a panel (no less than
3) of Senior Technical persons at Position Level 29 or 30. This is in
addition to the normal management review and approval.
An example of an individual working on the Design Competition Phase contract
at these two levels are:
30
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STAT
STAT
?
itir? ACC1 Ci CT
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UNCLASSIFIED
? The base labor rate is based upon the following number of hours:
2080 work hours/year;
less 72 hours holiday,
less 80 hours vacation,
less 40 hours sick leave;
1888 hours available per year.
Company Overtime Policy
Extra Hours - Non-Exempt Employees
a. Overtime
Only those employees subject to the provisions of The Fair Labor Standards
Act, i.e., non-exempt employees, will be paid for overtime. Non-exempt
employees will be paid at straight-time hourly rates for all time worked up
to eight (8) hours in one day or forty (40) hours in one week, and at 1-1/2
times their hourly rate for all time worked in excess of eight (8) hours
in one day or forty (40) hours in any one week. If, however, absence
occurs due to illness or disability during a week in which extra time is
worked, only the hours actually worked are considered when computing weekly
overtime pay. Other paid absences (for example, vacations and holidays)
are counted as time worked for purposes of determining eligibility for
payment at 1-1/2 times the hourly rate. To be eligible for overtime pay,
the additional time worked must be authorized and approved - in advance -
? by the manager responsible for the account to which the time will be
charged. Overtime will be reported on the employee's time sheet to the
nearest one-quarter hour.
b. Other Time
(1) Exempt employees, at their discretion, may work casual extra hours.
These casual hours are considered to be of a personal nature and are not be
be reported on the Time Sheet for compensation purposes nor are these hours
considered as having been delivered against level of effort requirements on
contracts.
(2) The Company may require exempt employees to work extra hours to complete
their ordinary tasks. These extra hours are to be of benefit to the Company
and are to be reported on the Time Sheet as "Other Time." Although there
is no additional compensation, these hours are considered as having been
delivered against level of effort requirements on contracts. Prior to the
reporting of "Other" time, Vice Presidential approval is required.
(3) Exempt employees who are required to work by the Company but are not
receiving additional compensation for these extra hours may be eligible for
reimbursement of meal expenses as discussed in the Employee Benefits Chapter
when home travel is impractical. To be eligible for reimbursement of meal
expenses time sheets must show the approved "Other Time" worked, and the
dates shown on the expense reports submitted for reimbursement must correlate
with the dates shown on dates assuming the travel schedule is at the request
? of management or the customer. Payment for these hours will be made at the
employee's regular rate of pay or at his overtime rate, whichever is applicable.
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Travel time is not counted as hours worked and, therefore, will not be paid ?
if: (1) the non-exempt employee travels as a commercial passenger or
drives a vehicle outside his working hours, except as defined in the previous
paragraph or (2) the employee elects to drive rather than fly, resulting in
additional travel hours.
Extra Hours - Exempt Employees
a. Compensatory Time
In general, employees who are not subject to the provisions of The Fair
Labor Standards Act (Executive, Administrative, Professional, and other
personnel as so designated) are considered "Exempt" employees and normally
receive a salary which is considered full compensation regardless of the
number of hours worked. However, those exempt employees required to work
long-term or recurring extra hours for the convenience of the Company, or
at the request of the organization or agey for which the work is being
performed, will earn compensatory time. Approval is required of the
immediate supervisor before the extra hours are worked and charged to
compensatory time.
Compensatory time is not automatically paid to the employee with each
paycheck. It is accrued as it is worked and reported on the employee's
regular time sheet. Compensatory time will be taken or settled by payment
to the employee at the then-current rate of pay within twelve (12) months
after the compensatory time is earned. Compensatory time which is twelve
(12) months old will automatically be paid to the employee in the next
payroll at the employee's then-current rate of pay.
Every effort should be made to give the employee time off rather than
making payment. Compensatory time must be taken in periods of three (3)
consecutive hours or more in any one day. Payment should be reserved for
those cases where Company requirements have prevented the employee from
taking time off or where personal hardship and/or emergency situations
exist.
CAS 414
his classified as a "Professional Services" company and, therefore, all
proposed e s are labor intensified. In accordance with this corporate
structure,does not intend to claim a cost of money for facilities
capital employed.
will accept a clause in any resultant contract which states that cost
of money for facilities capital employed will not be charged as direct cost
to the contract.
Travel - Out of Town (Continental United States)
The established procedure with respect to travel expenses is to reimburse
employees for the actual costs incurred rather than pay a per diem rate.
?
STAT
STAT
STAT
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UNCLASSIFIED
? Meals and lodging are estimated on a per day basis in accordance with the
guidelines as stated in the Joint Travel Regulations for the number of days
the employee is on travel status. The air fare costs used for bid purposes
in the proposal are based on fares for commercial air carriers at less than
first class in accordance with air fares published in the current Official
Airlines Guide.
Local transportation is estimated-on the basis of $27.00 per day for a
rental car plus estimated taxi fares amounting to $8.00 to cover the
employee's transportation between his home and the airport.
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?
Travel - Out of Town (Foreign)
Local transportation is estimated on the basis of $35.00 per day for a
rental car plus estimated taxi fares amounting to $8.00 to cover the
employee's transportation between his home and the airport.
Meals and lodging are estimated on a per day basis in accordance with the
guidelines as stated in the U.S. State Department publication for the
number of days the employee is on travel status.
Travel - Escalation
Out of Town travel costs as calculated above are incremented by a 15 percent
annual escalation factor, calculated to the mid-point of each proposed
twelve (12) month period of performance.
Travel - Local
Local travel is based on actual miles from point-to-point at $.20 per mile
when personnel are required to use private automobiles.
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STAT
STAT
Los Angeles, CA 1982
Coordination meetings
with the
work
station vendor
1
1
5
1983
Coordination meetings
with the
work
station vendor
2
1
5
1984
Coordination Meetings
with the
work
station vendor
2
1
5
1985
Coordination meetings
with the
work
station vendor
2
1
5
1986
Coordination meetings
with Lite
work
station vendor
2
1
5
1982
Coordi
nation Meetings
With the
SI
2
2
3
STAT
1983
Coordi
nation meetings
with the
St
4
2
3
1984
Coordi
nation meetings
with the
S1
4
2
3
1985
Coordi
nation meetings
with the
St
4
2
3
1986
Coordi
nation Meetings
With the
SI
4
2
3
1982
Staff
travel
for
on-site work performance
3,302
2
.1
STAT
1983
Staff
travel
for
on-site work performance
8,297
2
1
1984
Staff
travel
for
on-site work performance
2,697
2
1
Ny
1985
Staff
travel
for
on-site work performance
718
2
1
1986
Staff
travel
for
ou-site work performance
320
2
1
1987
Staff
travel
for
on-site work performance
295
2
1
1988
Staff
travel
for
ou-site work performance
234
2
1
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UNCLASSIFIED
Backup Data
LABOR SKILL LEVELS AND RATES
has grouped direct employees into job categories which identify
technical specialities and average salary grades for a particular skill
level. In general, the technical skills associated with the job
categories can be determined as follows:
C - Computer Systems/Programming
E - Engineering
M - Project Management and Senior Staff
S - Systems Analyst
T - Technical Support
H - Human Factors
Z - Secretarial Support
A - Administrative Support
For detailed descriptions of job categories, see Appendix A.
In addition to grouping employees by technical area of expertise, the
Job Category also defines the salary grade normally associated with
the identified level of technical skill and experience. The second
identifier in the Job Category describes the appropriate salary grades
as follows:
0 - Salary Grade 10, 11, and 12
1 - Salary Grade 7, 8, and 9
2 - Salary Grade 4, 5, and 6
3 - Salary Grade 3 and Non-Exempt 0 through A
10, 11, and 12 $26,100 $51,600
7, 8, and 9 $20,200 439,900
4, 5, and 6 $15,600 '$30,900
3 $14,300 $23,900
STAT
NW
STAT
A - 0 $ 7,700
$28,800
0
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UNCLASSIFIED
0
Salary Increases
On a monthly basis, averages all Direct Labor applied during that STAT
month by job category and establishes an average rate for each. The
monthly average rate per job category is then escalated for future
periods by applying an increase factor determined by a statistical
study that identifies the months actual wage increases occur. The
occurance ratio is reduced to-a percentage factor by month based on
the total year increase schedule for the current year. Succeeding
years use total year increases based on Government economic forecasts
and 0 historical data. On an annual basis, both exempt and non STAT
exempt increase factors are expected to be 7% per annum.
On a monthly basis, exempt increase factors are:
?
Jan. 2.5
Feb. .7
Mar. .4
Apr. .5
May .3
June .3
July .5
Aug. .5
Sept. .3
Oct. .5
Nov. .3
Dec. .2
TOTAL
The mouthy increase factors for non-exempt are:
MONTH
Jan. .7
Feb. .6
Mar. .5
Apr. .6
May .5
June .4
July 1.1
Aug. .6
Sept. .7
Oct. .6
Nov. .4
Dec. .3
?
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UNCLASSIFIED
Effectivity rates have been developed to compensate for non work days
such as holiday, vacation, and sick leave which are charged to overhead
pools. For FY'82 and beyond, Corporate Effectivity is projected to be
.882. (See Figure 1)
Because of slight variations .in average length of employment, annual
vacation used and sick leave taken by Eastern Operations personnel,
historical data indicates that a somewhat higher effectivity is
experienced in the Washington area and the proposal is based on an
average effectivity of .900 or 156 hours per month.
The methods used for computation of escalation factors, labor rates
and effectivity have been reviewed by the cognizant DCASD-LA Administra-
tive Contracting Officer and have been approved for Government bidding
purposes. Factors, rates and effectivity for FY'82 and beyond have been
submitted for approval by DCASD-LA for forward bidding purposes on
Government contracts.
Exerpts from_Policies and Procedures which pertain to salary grade
structures, exempt overtime, non-exempt overtime, vacations and holidays
are contained in Appendix B.
?
STAT
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/ r~ ~_ l_ ( ? FY 82 I..AIiOI HOURS WIT !I EFFECTIVITY 2/9/8!
TOTAL A1.ENDAR CALENDAR ACCOUNTING TIME D RECT II~RS
CALENDAR CALENDA1 WORK WORK CALENDAR' Er FEC'f1VlI II N A WAIdI
ll'Y ODY M/M
DAYS DAYS* I IIOURS* HOURS
I I
10.588
Jan 1982
31
2
0
160
160
,821
131
Feb
28
2
0
160
160
,429
149
liar
31
23
184
- 240-
.227
- -
.185
Apr
30
22
176
160
=907
145.
May
31
20
160
160-.
_-
.927._
._ - -
148
Jun
30
22
176---
-20-
.._
.861
172..
Jul
31.
2
1
168
164
.852_
_
136
Aug
31
22
176
164 ..
_ .066
- 142
Sep
30
21
168
200
1862.
171
C
2
Oct.
31 .
21
166
-
_ ..
!~_
.926.
148
Nov
_
30
-
20
-
16_O
__..
164_...
-- - - -
---..234
- -- - -
.-.142'- -
-
Dec
31
21
168
294
- _
.742.
- 154-
In
in-
..
0
-AVERAGE
30.4
21.1
2024
168.7
_ _ 2080
173,3
21.1 D YS/MONT. (AVC)
253 DfYS/YEAR
4:33 S/KQ! H (AYO)
IOLI
AYS AND
THE AVE
RAGE NUM
Figure 1
* EXCLUDES 'ATURDAY AND SU .DAYS
**TAKES INTO ACCOUNT TIIE NU HER OF
IER Of V
-CATION _j
1828
61
0 SICK -D
IYS TAKE
IN EAC
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UNCLASSIFIED
OTHER RATES
Labor Overhead. The burden rates used in this proposal are:
acility Burden of:
104.% 106.1
Customer Facility Burden of:
FY'82 FY'83
79.5% 80.5%
FY'84
FY'85 AND BEYOND
108.%
109.%
FY'84
FY'85 AND BEYOND
81.5%
82.5%
These rates have been submitted for approval by the cognizant DCASD-LA
Administrative Contracting Officer for forward bidding purposes on
Government contracts.
General and Administrative Expenses (GSA). The GSA rates used in this
proposal are:
FY'84 AND BEYOND
These rates have been submitted for approval by the cognizant DCASD-LA
Administrative Contracting Officer for forward bidding purposes on
Government contracts.
Contract Facilities Capital and Cost of Money.
Pursuant to CAS 414, and DPC 76-3 the Capital Cost of Money Factors
used in this proposal are:
Facility Burden
Customer Facility Burden
G&A Expense
.01135
.00137
.00487
This cost has been incorporated into Other Direct Cost; however, General
and Administrative Expense and Profit/Fee have not been applied to this
cost.
These factors have been submitted for approval by the cognizant DCASD-LA
Administrative Contracting Officer for forward bidding purposes on
Government contracts.
?
STAT
STAT
is
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UNCLASSIFIED
is
Temporary Duty Travel (TDY)
TDY trips are ordinary business trips associated with the contract
effort. The number of trips, poi origin, destination, duration,
and purpose of trips are based on analysis of the requirements of STAT
the proposed work. The cost per trip is based on less-than-first-class
listed air fares, per diem, actual hotel, local transportation, and
other authorized travel expenses, in accordance with corporate STAT
policies and are consistent with those utilized in other Government
proposals.
Including the customer identified key personnel mandatory to this effort
__~stimates that during start-up, personnel from locations other
than the Washington area will be required to meet the proposed schedule.
Monthly TDY costs per individual are estimated to be $1,780.
Per Diem
2 @ 20 $ 40.
28 @ 22 616.
Rental Car
30 @ 15 450.
Apartment Rent 500.
1/5 of Round Trip Air Fare
Super Saver LA/D.C. 68.
?
Gas/Miscellaneous 106.
$1,780.
?
Local Travel. Local Travel within the Washington area (to include
Paoli) will be accommodated by purchase of a vehicle estimated to cost
$10,000 with operating expenses to include gas, maintenance and supple-
mentary travel by personal auto at 2,000/month.
Permanent Change of Station (PCS) Cost.
Relocations were estimated at an average cost of $25K per
location.
STAT
Subcontract and Other Direct Cost Escalation
Escalation of Subcontractor Costs.
Subcontractor labor costs were escalated at 7% per annum. Hardware
costs that were not quoted on a fixed price OEM basis were escalated
at 4% per annum based on industry data which indicates a 3% decline
in costs of computer terminal and peripheral equipment costs per year
compounded by estimate of learning curve impact on equipment buys STAT
of 500 or more.
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UIVCLAbbI Fl ED
Other direct costs were escalated at 7% per annum.
Reproduction
Reproduction costs are based on actual experience costs incurred on
similar contracts. This historical experience indicates that reproduc-
tion costs are typically 4.4% of direct home labor.
MO
AO
SO
HO
EO
CO
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Job Category Description
Co Computer System Specialist Personnel at this level range from being recognized experts to emerging experts in the programming
field. They are capable of designing, developing. and maintaining advanced computer programs and/or
program systems to satisfy specific contractual requirements. They are further required to conceive
and develop new testing and programing techniques or to make innovative applications to existing
techniques. Specialist-Senior personnel are distinguished by the fact that the majority of their
responsibilities Involve the conceptualization and development of new programming systems.
Cl Computer Programmer Analyst Incumbents within this category are capable of performing design. development, test. and maintenance
of computer programs and program systems to satisfy specific contractual requirements. They typically
concentrate on specific phases of programming within a particular system. Senior level analysts are
capable of visualizing and developing total program systems as opposed to individual programs within a
system. They are expected to conceive and design new test tools and techniques.
CT Computer Programmer Personnel within this category perform a variety of programming assignments under the direction of
senior programming personnel. They are capable of assisting In the design. development. test and
maintenance of computer programs to satisfy specific contractual requirements. Normal duties Include
developing computer programs from approved design specifications by preparing detailed flow diagrams.
writing computer language Instructions. defining test requirements. utilizing appropriate existing
test tools for debugging and verifying programs. and insuring that generated output conforms to design
criteria and specifications.
C3 Associate Programmer Personnel within this category are considered entry level to the programming field. They perform
typical programming tasks such as: writing programs in either procedure or machine oriented languages;
developing flow charts, decision tables. and prose descriptions for coding programs; revising, testing,
and debugging programs; and documenting operating procedures manuals and program descriptions. These
tasks while performed under the technical direction of more senior programming personnel are characterized
by the availability of detailed information as a working base. the application of techniques that are
largely proceduralized and narrow in scope. and the resolution of problems entailing a limited analysis
of a few established alternatives.
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ED Llsglneer Senior rersonnel at this level range prom being recognized experts to emerging experts In the engineering
field. They have the capability to plan and conduct operational and research studies Involving the
extension and application of advanced engineering principles and concepts to the total design and
concepts to the total design and development of complex man-machine systems. Normal duties include
consultation In the overall development and Implementation of varying and highly complex large-
scale command and control systems. performance of highly advanced circuit or mechanical design, and
direction of major study projects dealing with large-scale system operations such as radar or
computer systems.
E1 Engineer Incumbents within this category are capable of either providing substantive knowledge to the solution
of or directing portions of professional engineering projects and studies Involving the wide applica-
tion of engineering principles. theories. and concepts from various sppecialties to the design,
development, and evaluation of equipment required for complex man-machine systems and applications
and other areas of corporate interest. Normal duties Include analyzing, evaluating. and recommending
equipment required for corporate projects; obtaining Information pertaining to physical features
for facilitating efficient equipment utilization; and designing segments of circuits for simulation
and peripheral computer equipment.
E2 Engineer Associate Personnel within this category perform entry level engineering assignments and studies under the
supervision of higher level engineering personnel. They are capable of assisting In various studies
and projects, and designing segments of circuits or components for simulation and peripheral computer
equipment. Normal duties include applying basic engineering principles. theories. and concepts to
the design, development, and test of prototype electronic. optical. or mechanical equipment used In
computer-based man-machine systems and other areas of corporate Interest.
E3 Engineer Technician Personnel at this level work under the direction of senior engineers. They have the capability to
lay out complete developmental electronic and electro-mechanical units and systems; fabricate,
assemble, and calibrate electronic and electro-mechanical units and systems; and perform developmen-
tal testing of electronic units and systems under variable condition, using standard or specially
built test equipment. they typically work from primary design drawings, schematics, rough sketches
and other diagrams, that require considerable Interpretation and application of experience and
judgment.
110 Project Management and Senior Staff Personnel within this category are responsible for supervising and providing overall technical
guidance to a project or to major tasks within a project. They are responsible for the design.
development. Integration. and Implementation of existing9 and proposed military operational and/or
support systems. They participate In technical and administrative planning for the corporate
organization. and may represent their Division/Department Manager as a corporate spokesman In
matters relative to project or program commitment. Major duties include supervision and technical
guidance to the project/program staff. presentation of detailed briefings to customer and corporate
staff. coordination with Division/Department managers to ensure project activities are meeting
stated objectives and comply with customer agreements and commitments. and conformance with regula-
tion of cognizant governmental agencies.
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Personnel within this category are considered to be recognized experts or emerging experts in one
or more related fields of systems analysis. their major duties and responsibilities Involve the
formulation of concepts and the development and Implementation of new and modified systems In
advanced and highly complex areas of application to fulfill user requirements relating to the
retrieval of Information and to increase the level of user performance and operating effectiveness.
They are capable of developing and specifying operational design for the development and maintenance
of Information processing systems and retrofit of computer-based systems as well as evaluatino a
broad scope of advanced operational aspects of current and newly developed systems.
Si Systems Analyst Senior Personnel at this level have developed a working knowledge of the established principles, theories,
and concepts, in an area of specialization, plus a working knowledge of other areas as they relate
to and affect their prime specialty. They have the capability to formulate concepts for the develop-
ment of new and modified systems In broad areas of application to fulfill user requirements relating
to the retrieval of Information and to Increase the level of user performance and operating effec-
tiveness; to develop and specify operational design of a broad and complex nature required for the
development and maintenance of Information processing systems and retrofit of computer-based systems.
Their major duties and responsibilities include determination of a wide variety of system approaches
dealing with establishing principles and concepts to meet user objectives by analyzing and evaluating
system elements, evaluation of operational aspects of current systems to determine the need for
modified approaches, and the conduct of special studies and Investigations pertaining to the develop-
ment of new information processing systems.
S2 Systems Analyst Personnel within this category typically concentrate on specific phases of analysis within a partic-
ular system while expanding and developing their overall technical proficiency and knowledge of the
system as a whole. They are capable of developing new and modified systems to fulfill user require-
ments relating to the retrieval of Information and to increase the level of user Performance and
operating effectiveness; and also capable of developing and specifying operational design requirements
for the development and maintenance of Information processing systems and the retrofit of romputer-
based systems. Entry level personnel work under direct supervision, whereas others work Independently
on most assignments and receive general direction on aspects of their work. Major duties Include
determination of system approaches to meet user requirements by analyzing and evaluating system
components, assessment of the need for modified approaches,'and conduct of special studies and
Investigations of a limited scope pertaining to the development of new Information processing
systems.
T7 Technical Support Personnel within this category may perform In one or more of the following technical/clerical
duties In support of major technical projects In the areas of data processing, computer science,
applied mathematics, science, and other related fields. Computer operators at this level are
capable of setting up and operating computers and peripheral equipment within a computer facility.
They monitor machine and program operations to detect errors and react appropriately to machine
malfunctions and program errors. Clerical duties assigned to such personnel are typically complex
and require a basic understanding of the project's procedures, purpose, and technical terminology.
73 Secretarial Support -- - Personnel within this category perform routine office duties such as setting up and administering
filing systems, setting up appointment schedules and meetings, coordinating paperwork, and acting
as office Information center. They perform stenographic functions Including taking and transcribing
dictation, and typing reports, correspondence, and memoranda In accordance with accepted corporate
policy.
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As a result of many obevaluations and market
comparison studies, L-Ihas established two
salary grade structures that permit (1) the
identification of and differentiation among
major segments of the.'Corporation's population;
(2) competitive and equitable payment for work
performed; and, (3) recognition of differing
on-the-job performances by means of a range
spread.
Non-Exempt Structure. The Non-Exempt Structure
is used for employees who are subject to the
overtime and minimum wage provisions of the
Fair Labor Standards Act.
Exempt Structure. The Exempt Structure is used
for all administrative, professional, and execu-
tive employees who are not subject to the over-
timm and ainiu w wags provisions of the Fair
Labor Standards Act. From the standpoint of
pricing, the lover grades of this structure
tend to overlap with the highest grades of the
non-exempt structure.
All permanent full-time employees are entitled
to eight (8) paid holidays per year, provided
they are on pay status either the day before or
the day after the holiday. New employees and
terminating employees must be on pay status the
day before and the day after a holiday.
The designated holidays are: Nov Tear's Day,
Memorial Day, Independence Day, Labor Day,
Thanksgiving, Christmas and two (2) floating
holidays as designated by management each year.
Exempt Employees. Exempt employees will accrue
twenty (20) days paid vacation each twelve (12)
months of full time employment.
Nonexempt Employees. Nonexempt employees will
accrue vacation time equal to:
? twelve (12) days for each year of full time
employment for the first five years,
? fifteen (15) days for each year of full time
employment from the sixth through the tenth
year,
? twenty (20) days for each year of full time
employment thereafter.
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All requests for sick leave will be considered by
Personnel on the basis of such factors as: length
of employment, previous sick leave record, and tie
circumstances surrounding the requested, sick leave.
Normally five (5) days in a calendar year will be
allowed to cover periods of employee illness or
injury. Additional-time may be approved, if the
overall sick leave record has been good since
data of hire. Sick leave will not be approved
when it occurs during a planned vacation unless
the illness or injury requires hospitalization.
Absences of five consdcutive days or more may
require a statement from the employee's physician
attesting to health and physical limitations, if
any.
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policy, in keeping with applicable Federal
an State wage-hour laws, provides additional
compensation to non-exempt employees for all
hours worked in excess of eight in any one work-
day (6.5 for "C" shift personnel), or in excess
of forty hours per payroll week (32.5 for "C"
shift personnel), whichever is greater.
Rate of Pay. Compensation for overtime work is
paid at the rate of one and one-half times the
employee's regular hourly rate, except that
double time is paid for all hours worked on an
employee's seventh working day in the payroll
week--provided the employee worked at least one
hour on each of the other six days of that work-
week. (It is generally expected that an
employee will have worked approximately 48 hours
or more during the workweek prior to being paid
the double time rate for work on the seventh
day). Double time is also paid for all hours
worked in excess of twelve in any one workday.
7.1 OCCASIONAL EXTRA HOURS OF STORK FOR EXEMPT
EMPLOYEES
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It is (policy that every exempt employee's
basic job occupies a minimum of a 40-hour week.
In addition, extra efforts periodically require
the exempt employee to work in excess of 40 hours
a week. Such extra efforts are considered normal
for exempt employees and not subject to overtime
pay. However, an exempt employee who works 12 or
more hours on a regular workday or more than 6
hours on a Saturday, Sunday, or holiday may be
reimbursed for extraordinary meal and transporta-
tion expenses incurred as a result of working
such extended hours.
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UIVI.LHJJI I I U
YEAR
1983
1984
1985
1986
1987
1982
1983
1984
1985
1986
1987
Los Angeles, CA 1982
Philadelphia, 1982
1983
1984
1985
1986
Boston, MA 1982
1983
1984
Washington 1982
Metropolitan
Area
PEOPLE/ DAYS
PURPOSE - TRIPS TRIP TRIP
Coordination Meetings on AIN/IWS 5 2 3
Coordination Meetdngs on AIN/IWS 8 2 3
Coordination Meetings on AIN/IWS 6 2 3
Coordination Meetings on AIN/IWS 4 2 3
Coordination Meetings on AIN/IWS 3 2 3
Coordination Meetings on AIN/IWS 2 2 3
Coordination Meeting on CID/IWS 2 3 3
Coordination Meeting on CID/7S 6 2 3
Coordination Meeting on CID/IWS 8 2 3
Coordination Meeting on CID/IWS 4 2 3
Coordination Meeting on CID/IWS 4 2 3
Coordination Meeting on CID/IWS 2 2 3
IWS Coordination/Human Factors Lab. 3
Interface Coordination Meeting with SI 3
Interface Coordination Meeting with SI 6
Interface Coordination Meeting with SI 2
Interface Coordination Meeting with SI 2
Interface Coordination Meeting with SI 2
Work Station Spec Review with SI 1
Work Station Spec Review with SI 1
Work Station Spec Review with SI 2
65
Metropolitan
Area
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STAT
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SECTION 5
ASSUMPTIONS
This section states major assumptions made by in preparing the cost
proposal. It also provides a brief description o our subcontractor
evaluation process and a discussion on our cost estimating substantiation
process.
5.1 Schedule Assumptions
Proposed BOC, IOC and FOC Dates
The proposed completion dates for D/C Segment operational capabilities, along
with dates for System operational capabilities are enumerated below:
STAT
D/C Segment
Operational
Milestone Capability
System
Operational
Capability
BOC 5-15-84
10-15-84
IOC 5-15-85
7-15-85
FOC 9-15-85
7-15-87
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Figure C5-2 in Appendix C5 establishes the start-stop dates at WBS task level
3 which have been the basis on which we have separated the BOC, IOC and FOC
costs.
Following the September 15, 1985 completion date, we propose a scale-down of
our contract organization. From that date through completion of the System
FOC, July 15, 1987, a smalle~ contract organization will meet the needs STAT
for intersegment and interprogram tests/demos plus the operations and main-
tenance (O&M) effort.
Pricing of the effort following BOC has been on the basis of a shared
effort between and the Government. Pricing assumes that one-half the 0&M STAT
"labor will be supplied and one-half will be Government supplied through STAT
the first half of calendar 1986. In ensuing months, the ratio of Govern-eat
supplied labor is increased gradually until at contract end, the 0 & M labor
is fully Government supplied.
5.2 GWBS Assumptions
5.2.1 Project Management
Training
This effort as budgeted assumes that we will provide training of Government
instructors in each category of instruction. Training of actual user, oper-
ator and software and hardware maintenance personnel is the responsibility of
the Government instructors and has not been included herein.
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Computer Operations
We have assumed that training of Government computer operators will take place
prior to and during the first month's run-in and test use of newly installed
hardware and that the Government operators will be responsible for computer
operations starting one month after installation.
System Programmers
We have assumed that as the BOC 0&M phase is commenced, the Government will
assign its programmer personnel to work alongside of contractor's O&M software
team. Government system programming personnel will constitute one-half the
programmer work force (14) and assume an increasing responsibility until a
point in time 3 months before the end of the FOC O&M period. At that time the
contractor's programmer staff will have diminished to a level of 3 persons at
the site and remains at that level until contract completion.
IWS Maintenance Support
We have assumed that as the BOC O&M phase is commenced, the Government will
assign its hardware maintenance personnel to work alongside of contractor's
O&M IWS maintenance team. Government maintenance personnel will constitute
one-half the maintenance work force (2 to 3) and assume increasing respon-
sibility for maintenance services as the contract reaches its end.
5.2.2 Systems Engineering Assumptions
ADPE Costs
The deliverable ADPE consists of two_081 systems and one^ 3033 system.
Following are the ground rules for pricing these systems:
a. One 3081 will be ordered and installed in December, 1982 in the
Development and Test Facility. Following its utilization for devel-
opment and test, it will be shipped and installed at the customer's
site in March, 1985 to complete the IOC configuration.
b. One 3081 and one 3033 will be ordered and installed in January, 1984
at the Customer's site to make up the BOC configuration.
c. Maintenance costs for these items are GSA catalog Minimum Monthly
Maintenance Charges (MMMC) based on twenty-four hour per day, 7-day
per week, on-call maintenance.
d. The maintenance contract on ADPE begins 90 days after installation.
e. Software monthly costs begin 1 month after installation.
f. Hardware maintenance and software licensing and service costs are
carried through July 31, 1988.
Detailed calculation of the costs is available in the pricing
files.
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? ADPE for Development and Test Facility
The ADPE for the Development and Test Facility consists of one 4341 system,
one 3081 system (later included in the deliverable configurations), and one
Univac 1100/81 (assumed to be GFE'd). Following are the groundrules for
pricing these items:
a. One 4341 will be leased from May, 1982 through March 1, 1985. It is
included in the proposal price at FSD internal lease rates.
b. One 3081 will be ordered and installed in December, 1982 and will
remain a part of the development configuration through March 1,
1985.
c. We have assumed commercial maintenance of this equipment. Main-
tenance plans other than LI commercial maintenance were considered STAT
and it was concluded that the best maintenance that could be pro-
vided to NPIC is= commercial maintenance. This is costed based STAT
on providing 9 hours per day, 5 days a week on-call maintenance.
Additional maintenance if required overnight or on weekends would be
handled on an individual call basis at an extra charge not priced
herein.
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d. A Univac 1100/81 and its related software products are required at
the Development and Test Facility from December 1, 1982 through June
30, 1984. Equipment lease is assumed to be GFE'd. Equipment main-
tenance and software license and service costs are assumed to be the
responsibility of the contractor and are included as cost elements
in this proposal.
Communications Protocol Software
We have priced our communications interface software design on the basis that
NPIC will specify a Communications Segment, level 1 through 3 interface protocol
compatible with the X.25 protocol for packet switching networks. Since the
level 4 through 7 protocol is undefined, we have assumed th~:::= commercial STAT
NCP protocol.
Query Language Software
We have priced our query language software design on the basis that NPIC will
specify a standard query language compatible with the commercial MOD 204 data
base management system.
Non-Commercial Spares
Because a fully developed maintenance and logistics plan and accompanying
spares philosophy have not yet been prepared, non-commercial spares have been
omitted from this proposal price.
Commercial Spares
Cost of commercial ADPE spares is not a separately costed item but is included
in the cost of commercial maintenance.
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Engineering Change Activity
No costs are included to cover engineering change activities.
5.3 Miscellaneous Assumptions
5.3.1 Government Furnished Equipment
?
We have assumed that the Government will furnish a Univac 1100/81 and peripherals
to 0 for use in its Development and Test Facility for a period of 19 months STAT
commencing December 1, 1982. Prices for hardware maintenance and software
licensing/maintenance have been included.
The full list of software, hardware, communications items, data/documentation,
services and facilities assumed to be furnished to the contractor by the
Government is itemized in Appendix C12 of this proposal.
A requirement was established to evaluate the subcontractor proposals as
though the team members were involved in a competitive procurement. This was
done to assure that there was not overlap of work between team members, that
all effort asked for was included in the proposals, and that the lowest, yet
credible price was achieved. To fulfill this requirement a Subcontractor
Evaluation Board (SEB) was formed. Figure 5.4-1 depicts the process which was
decided upon for the SEB to complete its assignment. Members of the SEB,
chaired by the Program Control Office, included representatives from:
a.
Systems
Engineering
b.
c.
d.
Test
Pricing
Software
Development
e.
Program
Control
f.
Software
Cost Engineering
g.
Hardware
Cost Engineering
h.
Subcontract Procurement
A Management Review Committee (MRC) was also established to review the results
of the analysis of the SEB, receive the recommendations of the SEB and arrive
at a final strategy for achieving the goal of the most effective Subcontractor
management. The Management Review Committee included the Program Control
Manager, Subcontracts Manager, Engineering and Software Managers.
The SEB members prepared the Statements of Work (SOW) for each of the sub-
contractors and reviewed each of the requirements for responsiveness to
program needs. The SEB also reviewed the contractual requirements prepared by
the Subcontractor Procurement staff. The SOW, contractual requirements and a
request for proposal was given to each of the subcontractors.
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Contractual
Requirements
Subcontract
Evaluation
Board (SEB)
Analysis
Final
SEB
Analysis
Management
Review
Committee
Should
Cost
Position
Debrief
S/C
Figure 5.4-1
IV-5-5
Technical/
Management
and Cost
Proposals
Independent
Should Cost
Proposal
to NPIC
Revised
SC
Proposal
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Several days were scheduled prior to the briefing of each subcontractor to
permit a thorough review within each of the companies and to permit formation
of questions. The briefing of each of the subcontractors involved their
program managers, technical and pricing people. The SOW was reviewed section
by section and all questions resolved to assure that a meeting of the minds
was achieved.
?
While the subcontractors were preparing their proposals~prepared budgets STAT
for the work levied on the subcontractors. The results of these budgets re-
sulted in an[= "should cost" position for each proposed subcontract. In STAT
addition, Hardware and Software Cost Engineering were briefed on the content
of each SOW so that their evaluation would be available to add to the equation.
Following receipt of each subcontractor proposal, copies were made available
to each member of the SEB. Sufficient time was scheduled to permit an in-depth
analysis by each team member. Following the analysis work, a meeting of the
SEB was held to coalesce the board's findings into a well organized presentation
for the Management Review Committee. A meeting was then held with the MRC and
a strategy developed for debriefing the subcontractors.
A meeting with each of the subcontractors was held to review, in detail, the
SEB findings. A thorough scrub of the proposals was achieved and detailed
direction provided to the subcontractors to permit them to provide a revised
proposal in consonance with the direction provided.
Revised proposals were received from each of the subcontractors and these were
analyzed by the SEB. A data base was established for each proposal which will ?
permit detailed fact finding in the future. A product of the analyses and
data base is the ability to establish a rational risk position to apply to the
subcontractor's price for inclusion in the proposal to the Government. STAT
An orderly process of communicatigg with the subcontractors and within= has STAT
been achieved. This work has resulted in a well defined SOW and a reasonable
price to the Government.
The following paragraphs present a discussion of cost estimating substantiation/
rationale data in two of the CWBS cost categories:
a. System Engineering
b. Software Development
These discussions highlight the method and detail that have been'applied to
substantiate the cost data contained in this proposal.
Detailed cost estimating substantiation/rationale data for all CWBS level 3
work packages are provided in Appendix C1.
5.5.1 System Engineering Estimating Rationale
A total system engineering effort of 1,440 man months is budgeted over the
period May, 1982 through September 15, 1985. This effort is approximately 16
percent of the total project labor, which is consistent with our previous
experience on large, complex projects.
IV-5-6
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The effort commences at contract start at 57 persons and peaks at 66 persons
in September-October, 1982 prior to and during the PDR period for the BOC
phase. Following completion of PDR, the staffing level drops to 35 persons
and holds at this level through completion of the CDR for the IOC and FOC
phases (these CDRs occur side by side and finish December 30, 1983).
Following this point, the level is at 18 and gradually drops, to a level of 6
persons in August-September, 1985.
An estimating rationale sheet for one of the principle system engineering
tasks is included here as Figure 5.5.1-1.
D/C SEGMENT ESTIMATING RATIONALE
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0
TASK NAME/WBS #: Analysis/342200
TASK DESCRIPTION: Perform Requirements Analysis and Traceability (CDRL 119),
Performance Analysis (Perform Technical Measurements - CDRL 155), RMA Analysis,
Trade Studies, Engineering Specialties, prepare Engineering Technical Notes
(CDRL 120), and provide intersegment interface definition and requirements
definition.
SCHEDULE & MANPOWER DISTRIBUTION: (150 MM)- Maintain a five (5) to six (6)
person level from start of contract until last CDR is complete in 12/83.
Reduce to a 2-3 person level and maintain until IOC hardware/software is
installed and checkout completed in 3/85 then reduce to 1 person level until
9/85.
LABOR CATEGORY: System Engineering - Analyst
BASIS OF ESTIMATE: Performance of requirements analysis, generation and'main-
tenance of CDRL 119 (Requirements Traceability and Verification Matrix), and
monitoring of subcontractor performing requirements analysis is estimated at
37 man months from contract start until FOC accept. Performance analysis,
generation and maintenance of CDRL 155 (Technical Performance Measurements)
and monitoring of performance analysis subcontractor is estimated to require
37 man months from contract start until FOC accept. The RMA analysis for BOC
and updates for IOC and FOC are estimated to require 5 man months,. Trade
studies, providing engineering specialties and generation of engineering
technical notes (CDRL 120) are estimated to require 17 man months. Inter-
segment interface definition and requirements definition are estimated to
require a 2-3 person level until completion of the last CDR (12/83) and then /
to k person level until FOC accept for a total of 53 man months. Source:
Engineering estimates based on previous experience with similarly complex
programs.
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5.5.2 Software Development Estimating Rationale
CPCI Design/Development and Code/Unit Test
All software application code estimates were examined, where possible at the
CPC level, and characterized in complexity terms. Source lines-of-code were
estimated in the framework of the existing UNIVAC COBOL code (contractor-per-
formed audit completed December 12, 1981). The existing code has 7% comments,
hence ELOC's (Executable lines-of-code) equal 0.93 SLOC's.
Three levels of development complexity were used for characterization purposes:
1. High: Many interfaces and/or 'complex' algorithms.
2. Medium: Typical NPIC applications of DBMS interfaces.
3. Low: Data reduction type software.
Base productivity for newly developed code by'complexity was determined by
reference to our past performance for similar projects as follows:
High - 200 ELOCs/MM - 220 SLOCs/MM
Medium - 250 ELOCs/MM - 275 SLOCs/MM
Low - 300 ELOCs/MM - 330 SLOCs/MM
From these summary figures, the productivity tables in Figure 5.5.2-1 were
constructed. Referring to the category "New Code - High Complexity", the
figure indicates, for example, that the design activity proceeds at the rate
790
of 550 SLOCs(
per man month; code and unit test activity proceeds at the
rate of 620 SLOCs per man month, etc.
.35
Productivity Assists: For new S/W whose size estimates were either derived
from existing S/W or determined from a comparison to existing S/W, we assumed
double productivity for the design activity only (because a model for design
exists).
?
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is Productivity Tables
New Code - High Complexity (220 SLOCs/MM) - 275
ACTIVITY
% OF PRODUCTIVITY
TOTAL BASE W ASSIST*
Design 40% 550 SLOCs/MM (1100 SLOCs/MM*)
Code and Unit Test 35% 630 630
Integration and Test 10% 2200 2200
Support T and V 10% 2200 2200
As built doc. 5% 4400 4400
Aggregate Rate (from previous page) 220
New Code - Medium Complexity (275 SLOCs/MM) - 345
ACTIVITY
% OF PRODUCTIVITY
TOTAL BASE W ASSIST*
Design 40% 690 SLOCs/MM (1375 SLOCs/MM*)
Code and Unit Test 35% 785 785
Integration and Test 10% 2750 2750
? Support T and V 10% 2750 2750
As built doc. 5% 5500. 5500
Aggregate Rate (from previous page) 275
New Code - Low Complexity (330 SLOCs/MM) - 415
ACTIVITY
% OF PRODUCTIVITY
TOTAL BASE W ASSIST*
Design 40% 825 SLOCs/MM (1650 SLOCs/MM*)
Code and Unit Test 35% 945 945
Integration and Test 10% 3300 3300
Support T and V 10% 3300 3300
As built doc. 5% 6600 6600,
Aggregate Rate (from previous page) 330
*Design productivity doubles if a model exists for the S/W in the baseline
system.
?
Figure 5.5.2-1 (1 of 2)
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Productivity Tables
Modified code - Use base column for new code by complexity, except double the
design and code and unit test productivity components.
Design 3300 SLOCs/MM
Code and Unit Test (Purchase at a cost of $3/line)
Integration and Test 4400 b9LOCs/MM
Support to T and V On Service Level 4 (see below)
As built doc. No cost
Design No cost
Code'and Unit Test No cost
Integration and Test 4400 SLOCs/MM
Support to T and V On Service Level 4
As built doc. No cost
Note: "Support to T and V" is problem analysis and error correction (PAEC),
through FQT. PAEC thereafter is on a service level with the following
guidelines:
Service Level 1 -
1st 6 months -
1 person/10 KSLOCs/month
2 -
2nd 6 months -
1 person/20 KSLOCs/month
3 -
2nd year -
1 person/30 KSLOCs/month
4 -
thereafter -
1 person/40 KSLOCs/month
Figure 5.5.2-1 (2 of 2)
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?
Applying these data to the code count estimates, man month estimates and
resultant aggregate productivities per CPCI were derived and are tabulated
in Figure 5.5.2-2.
KSLOCs
MM
PRODUCTIVITY
N&M
R&C
Total
N&M
R&C
Total N&M
R&C
Total
Pre-Exploitation
- BOC
103
28
131
358
14
372 288
2000
352
BEPPRE
- IOC
1
7
8
5
4
9 200
1750
888
- Total 104
35
128'
363
18
381 287
1944
336
Exploitation Mgmt
- BOC
67
26
93
208
5
213 322
5200
437
BEMGMT
- IOC
14
32
46
51
16
67 275
2600
687
- Total
81
58
76
259
21
280 313
2760
271
Exploitation Spt
- BOC
31
133
164
82
30
112 378
4400
1460
?
BEXSUP
- IOC
48
2
50
201
1
202 239
1750
248
- Total
79
135
50
283
31
314 279
4350
159
Exploitation Results
- BOC
7
21
28
19
5
24 268
4200
1170
BERESU
- IOC
21
21
6
6
3500
3500
- Total
7
42
21
19
11
30 268
3800
700
Data Manipulation
- BOC
21
88
109
54
20
74 389
4400
1470
BMANIP
- LOC
6
80
86
18
42
60 333
1900
1430
- Total
27
168
86
72
62
134',375
2700
642
Statistics Reporting
- BOC
7
23
30
22
5
27 318
4600
1100
BSTATR
- IOC
2
18
20
5
10
15 400
1800
1330
- Total
9
41
20
27
15
42 333
2700
475
i
Figure 5.5.2-2 (1 of 2)
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Materials Mgmt
- BOC
15 15
6
6
2500
2500
BMMGMT
- IOC
1
8 9
4
4
8 250
2000
1120
- FOC
7
7
30
30 233
233
- Total
8
23 16
34
10
44 235
2300
364
Command and Control
- BOC
4
4
18
18 222
222
BCCNTR
- IOC
20
20
87
87 230
230
- FOC
12
it
50
50 240
240
- Total
36
36
155
155 232
232
Query Spt
- BOC
3
40 43
12
14
26 250
2850
1650
BQUERY
- IOC
16
23 39
71
12
83 225
1900
470
- Total
19
63 39
83
26
109 229
2400
358
Host Appl Spt
- BOC
17
51 68
71
12
83 239
4250
819 ?
BAPPLS
- IOC
29 29
16
16
1800
1810
- Total
17
80 29
71
28
99 239
2850
293
DBM Appl Spt
- BOC
11
11
41
41 268
268
BDMAPS
- IOC
8
8
33
33 242
242
- Total
19
16
74
74 257
216
Test and Training Spt - BOC
35
6 41
121
2
123 289
3000
333
BTTDEV
- IOC
8
5 13
27
1
28-.,296
5000
464
- FOC
5
5
17
17 294
294
- Total
48
11 48
165
3
168 291
3700
286
WS Application
- BOC
35
35
172
172 203
203
WAPPLS
- IOC
141
141
540
540 261
261
- Total 176
176
712
712 247
247
Figure 5.5.2-2 (2 of 2)
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The cost components covered by these productivities as related to the CWBS
are:
a. Preliminary Design
o Prepare data dictionary
o Prepare preliminary Part II Specs
b. Critical Design
o Prepare build-to Part II Specs and conduct internal design reviews
o Prepare preliminary Programmer's Manual
?
o Develop CPC's
o Code and unit test
o Integrate and test to CPC level
d. Test
o Support test and verification
e. Documentation
o Prepare inputs to user, Operator and Data Base Administration
Manuals
o Prepare as-built CPCI listings
o Prepare Programmer's Manual (Final)
o Prepare inputs to Training Manuals
o Prepare as-built Part II Specs
CPCI Test and Verification
Based on l ]experience on recent large programs, test and verification
activity for software CPCIs has been observed to follow the average
productivity rates in the table below.
Test Man-Months Required per Line of Code (LC)
CODE TYPE
LC MM
New 1500
Modified 2500
Converted 3500
Retained 0
?
Using these rates and using estimated line-of-code counts for D/C Segment, the
testing effort for each CPCI was calculated. Another estimating relationship -
that testing and verification should run approximately 20% of the software
development effort - was calculated for each CPCI and used as a basis for
checking reasonableness. To arrive at the level 3 CWBS estimates, the CPCI
STAT
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test and verification manpower was further spread in accordance with the
following table based on historical actuals.
Plans Procedures Test and Verify Report
15% 35% 45% 5%
Figure 5.5.2-3 gives an example of a?.rost rationale sheet which explains and
substantiates our estimated labor to fully test and verify one CPCI. Similar
cost rationale data for all application CPCI's is contained in Appendix C1.2.
Figures 5.5.2-4, 5 and 6 summarize these data for the application CPCIs for
the BOC, IOC and FOC phases respectively.
D/C SEGMENT ESTIMATING RATIONALE
TASK NAME/WBS #: CPCI BEPPRE - BOC (WP 343200)
TASK DESCRIPTION: Prepare CPCI test plan (preline and final), develop SW test
procedures, support test and verification and prepare test reports.
SCHEDULE & MANPOWER DISTRIBUTION: (74.1 MM) Rate Method. Effort is initiated
30-60 days before PDR, reaches a peak of 6.5MM at PQT for two to four months
then end with the test report.
LABOR CATEGORY: (e.g. S/W DEVEL., PROGRAM OFFICE, SYSTEM ENGINEER) Test and
verification.
BASIS OF ESTIMATE: Est 103 LOC = 126
Estimating Productivity 20% of
Method Rate SW Effort
CPCI
BEPPRE 74.1 78.7
MM estimates are based upon divisional historical data for production actuals.
Figure 5.5.2-3
IV-5-14
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Cost Substantiation Data for
CPCI Test and Verficiation
BOC.Phase
CPCI
KSLOC
MM EST
PEAK
MANPOWER
WBS
LEVEL 3
BEPPRE
103
74.1.
6.5
343200
BEMGMT
67
43.8
4.6
343201
BERESU
7
3.8
1.4
343202
BMANIP
21
11.3
1.3
343204
BSTATR
7
4.4
1.0
343205
BCCNTR
4
2.7
0.5
343208
BQUERY
3
1.2
0.2
343209
BAPPLS
17
10.2
1.5
343210
BDMAPS
11
7.3
0.6
343211
BTTDEV
35
23.3
2.5
343212
WAPPLS
50
33.3
3.5
343213
BEXSUP
31
16.3
2.3
343214
IOC Phase
?
CPCI
BEPPRE
KSLOC
8
MM EST
2.6
PEAK
MANPOWER
1.1
WBS
LEVEL 3
344200
BEMGMT
46
18.4
2.0
344201
BMANIP
86
26.8
3.0
344203
BERESU
21
6.0
2.0
344202
BSTATR
20
6.4
1.2
344204
BMMGMT
9
2.9
0.6
344206
BCCNTR
20
13.3
2.0
344207
BQUERY
39
17.2
2.7
344208
BAPPLS
29
20.1
2.8
344209
BDMAPS
8
5.3
0.5
344210
BTTDEV
13
6.7
1.0
344211
WAPPLS
222
120.8
9.0
344212
BEXSUP
50
32.6
2.8
344213
Figure 5.5.2-5
FOC Phase
CPCI
BMMGMT
KSLOC
7
MM EST
7.6
PEAK
MANPOWER
1.4
WBS
LEVEL 3
345200
BCCNTR
12
8.0
1.6
345201
BTTDEV
5
3.3
1.0
354202
18.9
?
Figure 5.5.2-6
IV-5-15
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SECTION 6
COST DRIVERS
This section provides a discussion of all cost drivers that have a significant
impact on the acquisition costs presented in this proposal. A brief description
of the cost driver and its relationship to the D/C Segment design or development
effort is included along with explicit references to all affected GWBS elements.
References to discussions in the Technical and Management Volumes are also pro-
vided as appropriate.
6.1 Cost Driver: Hardware Configuration to Meet Performance, Design Margin
and Availability Requirements.
GWBS Reference: 4.9.1 ADPE Procurement
STAT
Proposed Costal I(CPU Costs without Peripherals)
Technical Proposal Reference: 4.1.4 Single-Exploitation Task Distributed
(STD) Alternate
4.2.3 Recommended Architecture
5.3 Hardware
6.3 RMA Analysis
Management Proposal Reference: None
? Cost Factors: The hardware configuration to meet specified performance
includes two host processors to satisfy batch and interactive workloads which
occur simultaneously and to meet stipulated response times. In order to meet
the further requirement for design margin for growth, the hosts' maximum
processing rate is increased.
In order to meet the additional requirement for availability and no single
point of failure, a third (backup) processor with more channel and disk drive
capacity are added.
?
These factors are reflected in the table below along with percent-range of
total processor cost represented by each.
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6.2 Cost Driver: Integrated Work Station - CID
Proposed Cost:
GWBS Reference:
4.6 Hardware Development - BOC
4.7 Hardware Development - IOC
4.8 Hardware Development - FOC
Technical Proposal Reference: 4.2.3 Recommended Architecture
5.8 Integrated Work Station
Management Proposal Reference: 5.4 IWS Hardware Development Plan
Cost Factors: Advanced capabilities of the new Integrated Work Station
Collateral Information Display (CID) are provided for 500 analyst positions.
The design includes 1024 x 1024 x 12 bit video resolution and hard disk
storage capacity of 80 megabytes. Cabinets rtquire full TEMPEST shielding.
These factors are reflected in the table below.
6.3 Cost Driver: Number of Integrated Work Stations
GWBS Reference: 4.6 Hardware Development BOC
4.7 Hardware Development IOC
4.8 Hardware Development FOC
Technical Proposal Reference: 5.3 Hardware
5.8 Integrated Work Station
Management Proposal Reference: 5.4 IWS Hardware Development Plan
IV-6-2
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STAT
STAT
. ?
STAT
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Cost Factors: In total, 1,000 analyst positions are equipped with the new IWS
capabilities. Three types of work stations and their proposed costs are
indicated in the table below:
6.4 Cost Driver: Software Development BOC
Software development effort leading to BOC will produce a total of 316,000
new and modified source lines at code (SLOC's) and 23,000 converted SLOC's.
Proposed Cost:
GWBS Reference: 4.3 Software Development BOC
Technical Proposal Reference: 5.4 Software
5.5 Data Base
5.8 Integrated Work Station
Management Proposal Reference: 5.3 Software Development Plan
6.5 Cost Driver: Software Development IOC
Software development effort leading to IOC will produce a total of 265,000 new
and modified source lines of code (SLOC's) and 225,000 SLOC's of converted
code.
STAT
STAT
STAT
Proposed Cost: STAT
GWBS Reference: 4.4 Software Development IOC
IV-6-3
UNCLASSI F1 ED
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Technical Proposal Reference: 5.4 Software
5.5 Data Base
5.8 Integrated Work Station
?
STAT
6.6 Cost Driver: Development and Test Facility
The Development and Test Facility at the Plant will consist of three host STAT
CPU's with peripherals and approximatelq terminals for development. Facility
operations during peak development and test periods are planned and costed for
three shift, seven day per week operations.
Proposed CostI
GWBS Reference: 4.16 Development and Test Facility
Technical Proposal Reference: None
Management Proposal Reference: 5.3 Software Development Plan
5.5 Verification and Test Plan
6.7 Cost Driver: Operations and Maintenance IOC and FOC
Operations and maintenance by the contractor following completion of D/C
Segment IOC and extending through July, 1988, will include (1) level-of-effort
labor for hardware and software maintenance; (2) purchased commercial hardware
maintenance; and (3) purchased commercial software licensing and software
service charges.
STAT
?
STAT
?
UNCLASSIFIED
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GWBS Reference: 4.18 Operations and Maintenance
Technical Proposal Reference: None
Management Proposal Reference: 5.6 Operations and Maintenance Plan
Cost Factors:
STAT
STAT
UNCLASSIFIED
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Proposed Cost:
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1. Schedule - 25% weight - with special emphasis on meeting M84 -Base
Operating Capability schedule.
2. System Management - 25% weight - with emphasis on program control,
responsiveness to NPIC Program Office, efficient staffing, and
quality of the product.
?
SECTION 7
FEE PROVISIONS
1. Base Fee - 3% of the estimated cost of the contract exclusive of STAT
Commercial Selling Price items.
7.1 Award/Incentive Fee Plan Highlights
proposes an Award/Incentive Fee Plan with the following highlights.
a. Proposed Fee
2. Award ee Pool - 12% of the estimated cost of the contract exclusive
of ommercial Selling Price Items.
b. Award Fee Performance Measurement Categories
3. Segment Interface Management - 20% weight - with emphasis on
effective interaction with other segment contractors.
STAT
STAT
4. Cost Effectiveness - 20% weight - with emphasis on developing
product to specification within budget.
5. Subcontract Management - 10% weight - with emphasis on~ ability STAT
to effectively and efficiently manage its subcontractors to produce
an optimum product.
?
c. Award Fee Plan (See paragraph 7.2)
1. Government Award Fee Evaluation Organization
2. Award Fee Evaluation Process
3. Performance Measurement Categories
4. Evaluation Guidelines
5. Payment Provisions
d. Special Schedule/Cost Incentive Fee Bonus/Penalty (See paragraph 7.2.18
following)
1. Aimed at incentivizingl to meet Basic Operating System
(M 84) Schedule and cost.
STAT
UNCLASSIFIED
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7.2 AWARD/INCENTIVE FEE PLAN
7.2.1 INTRODUCTION ....................................................
7.2.2 ORGANIZATION.....................................................
7.2.3 AWARD PROCESS ...................................................
7.2.4 AWARD REVIEW BOARD ..............................................
7.2.5 FREQUENCY OF EVALUATION AND FEE DETERMINATION ...................
7.2.6 FEE ALLOCATION BY EVALUATION PERIOD .............................
7.2.7 FEE EVALUATION PROCESS--SPECIFIC RESPONSIBILITIES ...............
7.2.8 DISCREPANCY REPORTING...........................................
7.2.9 PERFORMANCE MEASUREMENT CRITERIA ................................
7.2.10 COMPUTATION OF AWARD FEE ........................................
7.2.11 TERMINATION .....................................................
7.2.12 SCHEDULE ........................................................
7.2.13 SYSTEM MANAGEMENT ...............................................
7.2.14 SEGMENT INTERFACE MANAGEMENT ....................................
7.2.15 COST EFFECTIVENESS ..............................................
7.2.16 SUBCONTRACT MANAGEMENT ..........................................
7.2.17 AWARD FEE EVALUATION FORM (EVENTS CHECKLIST) ....................
7.2.18 SPECIAL SCHEDULE/COST INCENTIVE - M84 SCHEDULE ..................
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This Award Fee Evaluation Plan is designed to serve as the basis for the NPIC
Program Office evaluation of the quality, timeliness and cost effectiveness of
the Contractor's performance on the D/C Segment of the NPIC Program.
7.2.2 Organization
The participating organizations/individuals responsible for the Award Fee
process are as follows:
a. The Fee Determining Official'is (TBD). The FDO shall establish an
Award Review Board (ARB) to assist in the determination of the Award
Fee. A Recorder shall be appointed to consolidate and document the
Award Fee evaluation.
b. The NPIC Program Office will provide evaluation monitors to evaluate
the Contractor's performance. Evaluation monitors will be assigned
specific Performance Measurement Categories (PMCs) to evaluate.
The award process shall consist of the following steps:
a. Evaluation by designated evaluation monitors.
b. Consolidation of evaluation monitor reports by the Recorder.
c. Evaluation and recommendation by the ARE.
d. Award Fee Determination by THE FDO.
e. Modification of the contract by the Contracting Officer.
7.2.4 Award Review Board
The ARB will be chaired by the (TBD). Board members are approved by the FDO.
AWARD REVIEW BOARD MEMBERSHIP
The following members constitute the Award Review Board:
(TBD)
The ARB will convene on dates and at the times and places established by the
Chairman to consider information submitted from various sources, including:
a. Evaluation by designated evaluation monitors.
?
b. Assessment of informal inputs from other sources as considered
necessary or appropriate by the ARE.
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c. The Contractor may be called on to make an assessment of its
performance during the period under consideration at the prerogative
of the Chairman of the ARE. Any documentation regarding a self
assessment will be submitted, in writing, by the Contractor to the
Principal Contracting Officer (PCO).
7.2.5 Frequency of Evaluations and Fee Determinations
a. Award Fee evaluations shall be conducted at six (6) month intervals.
The FDO and members of the ARE, at their discretion, may conduct
additional evaluations at times other than the completion of the
evaluation periods as descri1ed above.
b. The ARB will normally complete their evaluation and make a recommen-
dation to the FDO within two weeks following the close of an evalua-
tion period.
c. Award Fee Determination and appropriate contract modifications
issued will be made within four weeks of the completion of the
evaluation period under consideration.
7.2.6 Fee Allocations by Evaluation Period
a. In addition to the base fee set forth elsewhere in the contract, the
Contractor may earn Award Fee for the periods and in the amounts
indicated below:
Award Fee--
Evaluation Period Not-to-Exceed
(TBD) (TBD)
b. The maximum amount the Contractor may earn for any evaluation period
shall be the amount shown under the not-to-exceed column for each
evaluation period, except that any unearned award fee for any given
period shall be rolled-over to successive periods for potential
award through contract completion.
7.2.7 Fee Evaluation Process--Specific Responsibilities
a. Fee Determining Official (FDO).
The FDO shall (1) review the recommendation of the ARB, (2) consider
all appropriate data, and (3) determine the specific amount of fee
to be awarded to the Contractor.
b. Award Review Board (ARB).
1. The ARB will perform the evaluation of the Contractor's per-
formance over any given period by (1) reviewing evaluation
monitor reports, (2) considering all information obtained from
other pertinent sources, (3) reviewing the Contractor's
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UNCLASSIFIED
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performance as measured against the Award Fee Performance
Measurement Categories, (4) having, at the discretion of the
ARB, the Contractor brief the ARB on those aspects of the
Contractor's performance relevant to the determination of the
Award Fee for the subject period, and (5) reviewing, if deter-
mined necessary by the ARB Chairman, the Contractor's written
documentation describing the Contractor's performance for the
subject period.
2. The ARB may, at the option of the Chairman, discuss preliminary
evaluation findings with the Contractor and consider any addi-
tional data provided by'the Contractor.
3. The ARB will make a fee recommendation, by letter, to the FDO.
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Evaluation monitors shall maintain an informal written record of the
Contractor's performance in their area(s) of responsibility. They
will note those instances in which the Contractor's performance is
considered to be more or less than satisfactory, and should
reference correspondence, reports, data items, meetings, and con-
versations which serve to demonstrate the Contractor's day-to-day
performance of the contract objectives. Evaluation monitors shall
normally, within five work days following each evaluation period,
review the back-up material and prepare an Award Fee score by use of
the applicable Annex for their respective PMC using the form in the
attached appendix. The monitor's evaluation, and point scores will
be forwarded together with narrative remarks, to the ARB. Remarks
shall include specific comments concerning the Contractor's strong
and weak performance in the PMC or functional area for which the
evaluation monitor is responsible. A separate paragraph shall be
devoted to a general assessment of the Contractor's performance
during the subject evaluation period. When appropriate, monitors
will include comments applicable to PMCs or functional areas other
than their own area. Each monitor shall obtain inputs from as many
sources as possible to arrive at a complete, accurate and unbiased
picture of the Contractor's performance. Any informal records made
in preparation of the monitor's evaluation report will be retained
by the monitor to support any inquiries made by the ARB or the FDO.
Evaluation monitors will point out areas where it is felt improve-
ment in the Contractor's performance should be forthcoming or would
be advantageous to the Government.
The principal duties and responsibilities of the Award Review Board
Recorder are set forth below:
1. Insure timely submittal of evaluation monitor inputs to the ARB
and to the Chairman of the ARE.
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2. Upon completion of the Award Fee Evaluation Periods outlined in
paragraph 6 above, with the assistance of the evaluation monitors,
prepare a briefing and a written report, complete with recommenda-
tions, to be presented to the ARE.
3. Maintain cognizance of the Contractor's performance in all
Performance Measurement Categories.
4. Direct the efforts of the monitors and provide them with
guidance to insure standardization in reporting and evaluating.
5. In conjunction with the evaluation monitors, devise the format
and frequency of data collecting/reporting.
6. Receive and review the monitors written report. The Recorder
should, at the close of each evaluation period, consolidate and
summarize these reports augmenting them with personal knowledge
as appropriate.
7. Keep the ARB Chairman appraised of the Contractor's performance
with special emphasis on exceptional events or performance.
8. Maintain the Award Fee evaluation files.
7.2.8 Discrepancy Reporting
The ARB Chairman shall hold meetings with evaluation monitors midway through
each evaluation period. Evaluation monitors shall point out those areas where
improvement is expected or required and areas where Contractor performance is
of superior quality. The purpose of these meetings is to aid the Chairman of
the ARB in making a determination as to the necessity of issuing a letter
informing the Contractor of areas where improvement is required and/or com-
mending the Contractor for superior performance. The Contractor is required
to respond to the Government's notification of a discrepancy in a timely
manner and not later than 30 days following the Government's notification.
The Contractor's response shall include plans for increasing effectiveness in
the areas requiring improvement. Evaluation monitors should be thorough in
highlighting, to the ARB Chairman, areas where the Contractor's performance is
outstanding as well as areas where performance improvement is required.
7.2.9 Performance Measurement Categories
Performance Measurement Categories are designed to measure the Contractor's
performance in certain key areas as determined by the Government.
Performance Measurement Categories (PMCs) shall be the following:
PMC
Relative Weights
a.
Schedule
25%
b.
System Management
25%
c.
Segment Interface Management
20%
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is
d. Cost Effectiveness 20%
e. Subcontract Management 10%
a. Schedule will consider the Contractor's performance relative to
milestones established for critical contractual actions, (e.g. M84
schedule achievement, IOC, Interim Milestones, and the Contractors
responsiveness and flexibility in reacting to schedule modifications).
b. System Management will consider the Contractor's responsiveness to
NPIC Program Office direction, and the Contractor's ability to
identify problems in a timely manner, and propose and implement
resolutions in an innovative and efficient fashion. The Con-
tractor's ability to staff the effort with competent people,
familiar with modern programming methodologies and design standards,
will be evaluated. The overall management, control and status of
the system development, as communicated to the NPIC Program Officer,
will be evaluated. The final evaluation will consider overall
system performance, including response time, system availability and
reliability, and mean-time-to-restore the system.
c. Segment Interface Management will consider the Contractor's ability
to effectively interface with the other Segment Contractors in
implementing inter-Segment interface requirements.
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d. Cost Effectiveness will consider the contractor's ability to im-
plement budgets and cost reporting systems in a timely manner.
Contractor's cost effectiveness and ability to maintain costs within
projected budgets will be evaluated.
e. Subcontract Management will consider the Contractor's ability to
effectively manage subcontractor allocated tasks, to identify
problems in a timely manner, and to propose and implement resolu-
tions with the Subcontractor in an innovative and efficient fashion.
a. In order to provide a consistent approach for Award Fee performance
evaluation, specific descriptive ratings scored on a percentage
basis, accompanied by a narrative input, will be utilized.
Descriptive Rating
Point Score
Excellent
91-100
Very Good
76-90
Good
51-75
None of the Above
1-50
b. The rating system and earned Award Fee are designed to direct timely
Contractor attention to areas where good performance should be
continued and unsatisfactory performance improved. The Award Fee
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evaluation system is designed to incentivize the superior oriented
Contractor performance that the NPIC Program Office expects. The
Government will be flexible in developing descriptive ratings and
scores. For instance, to achieve an excellent rating in any one of
the PMCs the Contractor need not fulfill the requirements for excel-
lence stated for every criterion within the PMC. Trade-offs between
conflicting evaluation criterion and the inevitability of some minor
problems will be considered in determining an overall earned Award
Fee. The Contractor will not be penalized for events that are
beyond his control, (i.e. events dependent on Government action or
action by other Contractors.) The Award Fee is designed to provide
an incentive for superior performance on the part of the Contractor;
therefore, no Award Fee will be paid for marginal performance. In
order to preclude the payment of Award Fee for marginal performance,
no Award Fee will be earned by the Contractor for scores equal to or
below 50. For every point increase between 50 and 75 points, the
Contractor will earn 3 percentage points of the Award Fee pool
available in the relevant period. Thus, for a score of 75 the
Contractor earns 75 percent of the available Award Fee. For every
point score increase, between 75 and 100, the Contractor will earn 1
percentage point of the Award Fee available in the relevant period.
Figure 2 represents a graphical depiction of the correlation between
earned Award Fee and score. Award Fee determinations are not sub-
ject to the disputes clause of the contract.
100%
75%
Available
Award Fee
0%1 0 25 50 75 100
Numerical Score
In the event this contract is terminated pursuant to the clause entitled,
"Termination", Award Fee is payable only to the extent earned through the last
evaluation period completed prior to termination.
7.2.12 PMC Guidelines for Rating Schedule
a. Good
1. Consistently meets the scheduled milestone dates and CDRL deliveries.
2. Anticipates and insures necessary changes to schedule are defined in
a timely manner and adhered to.
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3. Performs risk analysis and assesses the impact of schedule changes
on all levels of the program.
4. Effectively utilizes available resources and is flexible in applying
resources to critical path schedule items.
5. Communicates schedule risk areas and proposed action to the Program
Office well in advance of'required action.
b. Very Good
1. All of a.
2. Seeks data to identify potential problems before the schedule is
impacted.
3. Employs early corrective action, risk assessment, and planning to
preclude potential delays in the schedule.
4. Assesses and provides accurate and timely analysis of all proposed
or required schedule changes.
5. Occasionally ahead of schedule with no adverse affect on cost or
performance.
c. Excellent
1. All of b.
2. Schedule dates are met early with no adverse affect on cost or
performance.
3. Implements required schedule changes smoothly without adverse affect
on cost or performance.
4. Completes major milestones ahead of schedule dates in such a manner
as to cause the accrual of benefits to the program.
7.2.13 PMC Guidelines for Rating System Management
1. Contractor management takes timely and proper steps to'resolve
problems areas, respond to action items, and Program Office requests
for information.
2. Contractor has maintained adequate staffing levels to maintain
schedule and acceptable quality of work.
3. Contractor management communicates freely with NPIC management and
takes the initiative to understand Program Office policies and
procedures, and works within those policies and procedures where
applicable.
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4. Contractor demonstrates control of system engineering effort, demon-
strating ability to design and develop a well thought out system
with a minimum of discrepancies in inter/intra hardware/software/
firmware interfaces.
5. Contractor management emphasizes transition planning to insure it
increases in thoroughness as design develops and is responsive to
changes dictated by design'-or by NPIC Program Office requirements.
b. Very Good
2. Contractor goes well beyond more than expected effort to analyze and
resolve all problem areas, and obviously takes the initiative to
have meetings or discussion to force resolution of problems.
3. Contractor goes well beyond what would normally be expected in
responding to Program Office direction. For example, by offering
better alternative solutions, initiating technical interchange
meetings, or increasing or changing staffing.
4. Contractor management demonstrates a thorough understanding of every
aspect of the effort to be accomplished. For example, has imple-
mented excellent procedures to control cost and schedule and shows
willingness and the capability to insure procedures are followed and
accurately reflect program status; has implemented excellent systems
engineering controls and record-to-date demonstrates that the total
system design effort is completely coordinated and successful; has
implemented a successful software development plan, and has demon-
strated willingness and capability to follow that plan.
2. Contractor management, in the evaluator estimation, is far better
than experience indicates is the norm. For example, management
anticipates problem areas early and either resolves, or establishes
realistic timelines for resolution that
minimize impact on the program; management places great,emphasis on
system design and development to minimize contract and life cycle
costs; management takes great effort to insure system baseline
changes are quickly comprehended and every effort made to minimize
cost and schedule impacts in negotiating and implementing changes;
management insures every effort is made to communicate with the NPIC
manager all problems internal to the contractor's organization that
adversely impact the program effort.
7.2.14 PMC Guidelines for Rating Segment Interface Management
a. Good
1. Contractor generally satisfies all interface requirements though
some NPIC Program Office guidance or corrective action is required.
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2. Actively develops and supports interface definitions and require-
ments coordination with respect to both the letter and intent of
requirements. Actively supports Interface Control Working Groups
(ICWG) and Interface Control Documents (ICDs).
b. Very Good
2. Satisfies interface definition and requirements with little Program
Office guidance or corrective action required. Sometimes proposes
alternative solutions or interface definitions. Takes the initiative
in resolving interface problems and insuring that all interfaces are
accounted for and defined.
3. Deliveries of both hardware and software are adequately defined and
documented to facilitate segment interface management. All deliver-
ables are responsive to the interface demands of the involved organiza-
tions.
4. Qualified personnel are available to help resolve special interface
problems following the various hardware and software deliveries.
2. Performs and in fact seeks out comprehensive interfacing with the
NPIC Program Office. Anticipates and requests Program Office assis-
tance in defining and successfully managing all interfaces in a
timely manner to permit effective coordinated action.
3. Takes initiative and implements interface requirements without
guidance or correction action from the Program Office. Provides
excellent and clearly described alternatives for more efficiently or
more effectively meeting requirements. Alternatives are thoroughly
researched and backed by cogent and well communicated analysis.
4. Interface problems are identified early, alternatives presented and
thoroughly researched, and solutions implemented without adverse
impact.
7.2.15 PMC Guidelines for Rating Cost Effectiveness
1. Contractor's initial budgets were established in a timely manner.
2. PCMS (DAR 7000.10) was brought on line for contract within prescribed
time frame.
3. Contractor is tracking budget vs. actual cost from outset of contract.
4. Contract financial reports are submitted in a timely manner.
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b. Very Good
2. Contractor's actual cost does not exceed budgeted cost by more than
10%.
3. Contractor looks for ways to minimize costs through innovative cost
control techniques.
c. Excellent
1. All of b.
2. Contractor is on schedule with an acceptable product and is under-
running budget.
7.2.16 PMC Guidelines for Rating Subcontract Management
a. Good
1. Innovative management and flexibility provides resource concentra-
tion in high risk/potential problem areas.
2. Satisfactory control of subcontractor design, performance, and
schedule. Integration of the subcontractor tasks is smooth and well
orchestrated to preclude the need for adverse impact engineering
design changes.
2. Early identification of problems, causes, and solutions which have a
potential impact on program cost, schedule, and system performance.
Solutions minimize adverse impacts.
3. Resolution of discrepancies in a timely manner.
b. Very Good
1. All of a.
2. Performs detailed analysis of risk and potential problem areas to
identify their impact on cost, schedule, and system performance.
Prepares contingency plans for high risk, high impact potential
problem areas.
3. The Program Office has access to cost, manpower, performance and
risk analysis data to monitor the Subcontractors' as well as the
Contractor's performance and progress.
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? 2. Improved system performance and technical schedules are being
achieved in many areas by excellent control of subcontractor design
and development.
3. Effectiveness of management decision and leadership in problem
resolution.
4. Accuracy, thoroughness and depth of problem resolution alternatives
considered.
Evaluation Monitor: Date of Event/Activity Reported:
Performance Measurement Category
EVALUATION MONITORS ASSESSMENT
First Paragraph: (See attached checklist)
Describe what the contractor was supposed to do. Describe the activity in
terms of what is desired as an end item or what the contractor would have to
do to successfully complete the job. Is there a specific level of achievement
desired?
10 Second Paragraph:
Tell what the contractor actually did.
Third Paragraph:
What was the impact, either good or bad, on performance, schedules and cost.
Will there be an impact in the future as a result of what the contractor did?
Signature of Evaluator Monitor Date
EVALUATION RECORDER'S ASSESSMENT
Further clarification of evaluators report including relation to'other events,
contractor's input, and impact as viewed by the coordinator.
Signature of Recorder Date
EVENTS CHECKLIST
1. Did the contractor perform this activity with an unusual degree of
competence?
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2. What was the impact of the early or late completion of this activity?
3. Did the contractor make an unusual effort to utilize manpower available?
4. What significant relationship exists between this activity and other
events?
5. How important was the timeframe involved?
6. Did the contractor perform the effort on its own initiative or as a
result of a specific technical direction?
7. Has the evaluator successfully demonstrated the difference between
his/her interpretation of the event and what would normally be expected
performance?
8. Are there any objective standards involved in the write-up? If so, what?
9. Has the evaluator clearly distinguished the contractor's performance in
terms of ingenuity, creativity, and innovation?
10. Has the evaluator successfully demonstrated the impact of the event to
all direct and indirect areas?
11. Did the evaluator take into consideration whether or not the government
met its obligations in things such as timely resolution of issues, timely
provision of direction as appropriate, timely delivery of government
services or government furnished property, etc.
7.2.18 M84 Cost/Schedule Incentive
is
M
Special Schedule Incentive
Assuming 0 achieves D/C Segment Basic Operating Capabilit (M84) in STAT
accordance with the contract specification and schedule,____ will receive an STAT
incentive fee equal to either 10% of the award fee (exclusive of base fee)
previously granted by the Government through the period just prior to the M84
contract milestone, or the balance of the previously unearned award fee,
whichever is less. Should 0 fail to achieve Basic Operating Capability on STAT
the date s ecified in the contract schedule and the delay is attributable
solely to and its subcontractors, then shall refund to the Government STAT
previously granted award fee in accordance wit the table below.' Any money
refunded by=will not be returned to the Award Fee Pool for potential award STAT
during later evaluation periods.
Fee Refund-Schedule Delays
Delay (After M84 Contract
Schedule Date)
1-10 Days
11-20 Days
21-30 Days
31-40 Days
STAT
It
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Special Cost Incentive
Assuming achieves D/C Segment Basic Operating Capability (M84) within the STAT
negotiated target cost for BOC (original negotiated cost for BOC plus negotiated
changes) at the M84 contract schedule date, will receive an incentive fee STAT
equal to either 10% of the award fee (exclusive of base fee) previously granted
by the Government through the period just prior to the M84 contract milestone,
or the balance of the previously unearned award fee, whichever is less.
Shoul _fail to achieve Basic Operating Capability within the negotiated
contract cost for BOC, then= shall refund to the Government previously
granted award fee in accordance with the table below. Any money refunded by
::=will not be returned to the Award Fee Pool for potential award during
later evaluation periods.
Amount of Cost Overrun
o .001% to 2% of Negotiated Target
cost for BOC
o 2.001% to 4%
o 4.001% to 6%
o 6.001% to 8%
o 8.001% to 10%
*Note - The maximum aggregate cost/schedule penalty to be paid b is
$1,000,000 or 20% of the award fee (exclusive of base fee) grante prior
to the M84 contract schedule date, whichever is less.
STAT
STAT
STAT
STAT
STAT
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STAT
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