![](media/image1.wmf){width="2.571527777777778in"
height="2.5236111111111112in"}

**GUIDE FOR**

**PREPARATION OF**

**CONTRACT COST PROPOSALS**

**U.S. DEPARTMENT OF ENERGY**

**NATIONAL ENERGY TECHNOLOGY LABORATORY**

**3610 Collins Ferry Road 626 Cochrans Mill Road**

**P.O. Box 880 P.O. Box 10940,**

**Morgantown, WV 26507-0880 Pittsburgh, PA
15236-0940**![](media/image2.wmf){width="1.8055555555555556in"
height="1.2465277777777777in"}

> This guide is available on the Department of Energy, National Energy
> Technology Laboratory web site at:
> [*http://www.netl.doe.gov/business/index.html*](http://www.netl.doe.gov/business/index.html)

**TABLE OF CONTENTS**

GENERAL INSTRUCTIONS [[1]{.underline}](#Generated)

> Table of Contents [[1]{.underline}](#Generated)
>
> Page Identification [[1]{.underline}](#Generated)
>
> Rounding Off ..... [[1]{.underline}](#Generated)
>
> Format and Content of the Cost Proposal [[1]{.underline}](#Generated)
>
> Cost Proposal Preparation Assistance [[1]{.underline}](#Generated)

PART I - PREPARATION OF EXHIBITS [[2]{.underline}](#Generated)

> EXHIBIT A CONTRACT PRICING PROPOSAL COVER SHEET
> [[4]{.underline}](#Generated)
>
> EXHIBIT B-1 SUMMARY OF COST ELEMENTS BY TASK AND FOR TOTAL PROJECT
> [[5]{.underline}](#Generated)
>
> EXHIBIT B-2 SUMMARY OF COST ELEMENTS BY TASK\
> FOR OFFEROR\'S FISCAL YEAR [[6]{.underline}](#Generated)
>
> EXHIBIT C SUMMARY OF DIRECT MATERIALS AND/OR EQUIPMENT\
> BY TASK AND OFFEROR\'S FISCAL YEAR [[7]{.underline}](#Generated)
>
> EXHIBIT D-1 SUMMARY OF DIRECT LABOR BY TASK AND OFFEROR\'S FISCAL YEAR
> [[8]{.underline}](#Generated)
>
> EXHIBIT D-2 SUMMARY OF DIRECT LABOR HOURS BY TASK
> [[9]{.underline}](#Generated)
>
> EXHIBIT E SUMMARY OF TRAVEL BY TASK AND OFFEROR\'S
>
> FISCAL YEAR [[10]{.underline}](#Generated)
>
> EXHIBIT F SUMMARY OF OTHER DIRECT COSTS\
> BY TASK AND OFFEROR\'S FISCAL YEAR [[11]{.underline}](#Generated)
>
> EXHIBIT G-1 SUMMARY OF INDIRECT EXPENSES
> [[12]{.underline}](#Generated)
>
> EXHIBIT G-2 SUMMARY OF PROPOSED INDIRECT RATES
> [[16]{.underline}](#Generated)
>
> EXHIBIT H SUMMARY OF ESCALATION FACTORS/PERCENTAGES
>
> BY COST ELEMENT [[17]{.underline}](#Generated)
>
> EXHIBIT I PRE-AWARD ACCOUNTING SYSTEM SURVEY
> [[18]{.underline}](#Generated)

PART II - ADDITIONAL INFORMATION [[19]{.underline}](#Generated)

> Estimating Procedure [[19]{.underline}](#Generated)
>
> Subcontracts ...... [[19]{.underline}](#Generated)
>
> Consultants ...\.... [[20]{.underline}](#Generated)
>
> Cost Sharing, In-kind Contributions, Etc.
> [[20]{.underline}](#Generated)
>
> Financial Condition [[21]{.underline}](#Generated)
>
> Company Compensation Policies [[21]{.underline}](#Generated)
>
> High Value Equipment [[21]{.underline}](#Generated)
>
> Use of ADPE ..... [[21]{.underline}](#Generated)

PART III - SUMMARY OF EXCEPTIONS AND DEVIATIONS
[[22]{.underline}](#Generated)

***GENERAL INSTRUCTIONS***

**[Table of Contents]{.underline}**

All forms, tables, or exhibits should be included and identified in the
table of contents.

**[Page Identification]{.underline}**

All pages of the Cost Proposal, including forms, shall be appropriately
numbered, and identified with the name of the offeror, the date, and the
solicitation number to the extent practicable. All forms, tables, or
exhibits must be clearly identified.

**[Rounding Off]{.underline}**

Final monetary extensions shall be expressed in whole dollars only.

**[Format and Content of the Cost Proposal]{.underline}**

The cost proposal consists of the offeror's estimated cost to perform
the desired work as set forth in the solicitation. Since the cost
proposal will be evaluated to determine such matters as the
reasonableness of the cost, the probable cost to the Government, and an
understanding of the magnitude of effort, it should be accurate,
complete, and well documented.

The cost proposal will consist of three distinct parts as described in
the following text:

Part I - Exhibits A-J

Part II - Additional Information

Part III - Exceptions and Deviations.

**[Cost Proposal Preparation Assistance]{.underline}**

Questions regarding preparation of any parts of the Cost Proposal should
be directed to:

**Mr. Andrew Ferlic**

**626 Cochrans Mill Road**

**P.O. Box 10940**

**Pittsburgh, PA 15236-0940**

**Telephone No.: (412) 386-4647**

**FAX No.: (412) 386-6137**

**E-mail: [ferlic@netl.doe.gov]{.underline}**

***PART I***

***PREPARATION OF EXHIBITS***

Exhibits A through I identified below shall be included in the cost
proposal. Unless otherwise stated, the exact form need not be utilized;
however, the information indicated both in this section and on the
sample forms is required and must be submitted.

**[Cost information in the same format and level of detail is required
for each subcontract or intercompany transfer estimated to exceed
\$550,000.]{.underline}** The trail from the subcontractor\'s project
cost summaries to the offeror\'s Subcontracted Items line on Exhibit B-2
should be clear. Provide explanations for any differences between the
amount proposed by the subcontractor to the offeror and the amounts
proposed by the offeror to the Government for subcontract work.

***Exhibit A: Contract Pricing Proposal Cover Sheet.***

The Contract Pricing Proposal Cover Sheet is to be completed by the
offeror and all proposed subcontractors. Completion of the remaining
Exhibits (B through I) will provide supporting documentation for the
proposed cost shown in Blocks 6A to 6C of the Contract Pricing Proposal
Cover Sheet.

***Exhibit B-1: Summary of Cost Elements by Task and for Total
Project.***

***Exhibit B-2: Summary of Cost Elements by Task and Offeror\'s Fiscal
Year.***

This is a two-part exhibit, with one Exhibit B-1 providing a summary of
the total costs for each task AND the resulting total project costs. To
support the Exhibit B-1 amounts, an individual Exhibit B-2 is required
for [each]{.underline} of the offeror\'s fiscal years in which the
project is to be performed, and will provide the costs by task within
each fiscal year. All of the Exhibit B-2s will roll up into the project
totals shown on the Exhibit B-1.

***Exhibit C: Summary of Direct Materials and/or Equipment by Task and
Offeror's Fiscal Year.***

Provide a consolidated priced summary of individual material quantities.
Indicate the basis for the proposed prices, i.e., written quotes,
catalogue prices, prior invoices, shop estimates, etc. Where
appropriate, identify the vendor and provide the date and information
for multiple quotes.

***Exhibit D-1: Summary of Direct Labor by Task and Offeror's Fiscal
Year.***

***Exhibit D-2: Summary of Direct Labor Hours by Task***

This is a two-part exhibit in which the Exhibit D-1 provides the number
of direct labor hours, the direct labor hourly rates, and the labor cost
for each labor category proposed. As this information is required for
each task by fiscal year, multiple forms are needed so that the total
labor for each task matches the labor on the Exhibit B-2 task summaries.

On Exhibit D-2, provide the direct labor hours by task for each labor
category for the prime contractor and all subcontractors and
consultants. As an attachment to Exhibit D-2, provide a separate page
that defines all labor category titles listed on the Exhibit D-2. This
definition should discuss the duties normally performed by personnel
having that title, and differentiate between levels of the same title
(i.e., Senior Engineer vs. Junior Engineer, Technician I vs. Technician
II, etc.).

***Exhibit E: Summary of Travel by Task and Offeror's Fiscal Year.***

Each trip must be itemized to identify the destination, number of
travelers and length of the trip. Provide the rates used to estimate
costs for airfare, lodging, meals and incidental expenses, and ground
transportation.

***Exhibit F: Summary of Other Direct Costs by Task and Offeror's Fiscal
Year.***

The amount [and]{.underline} basis for proposed direct costs not
otherwise supported in the previous exhibits should be included here.
For example, the number of hours and the hourly charge for computer time
proposed might be included.

***Exhibit G-1: Summary of Indirect Expenses.***

***Exhibit G-2: Summary of Proposed Indirect Rates.***

This is a two-part exhibit, with one Exhibit G-2 providing a summary of
the indirect rates developed on all Exhibit G-1s. An individual Exhibit
G-1 is required for EACH indirect cost proposed, e.g., material
overhead, labor overhead, G&A expense, etc. Each Exhibit G-1 will
contain the major pool expense groupings by line item and dollar amount
for the offeror\'s most recently completed fiscal year, the current
fiscal year, and an estimate for the next fiscal year. Similarly, the
allocation base must be identified and the dollar amount provided to
permit verification of the resulting indirect rates. The inclusive dates
of the offeror\'s fiscal year must also be identified.

If agreement has been reached with another governmental organization for
the use of provisional rates, a copy of the approved rate agreement can
be submitted in lieu of Exhibit G-1, but an Exhibit G-2 is still
required.

***Exhibit H: Summary of Escalation Factors/Percentages by Cost
Element.***

This exhibit shall provide, by cost element, the escalation factors
(percentages) applied to current costs to estimate the proposed costs
for future fiscal years.

***Exhibit I: Pre-Award Accounting System Survey.***

The Pre-Award Accounting System Survey provides information on the
offeror\'s accounting system capabilities. This exhibit should be
completed by an individual responsible for maintaining the offeror\'s
accounting system. **[The form provided must be used.]{.underline}**

+-----------------------------------------------------------------------+
| NETL F 534.1-1#                                                       |
|                                                                       |
| (12/1999) OPI=PS10                                                    |
|                                                                       |
| (Previous Editions Obsolete)                                          |
+-----------------------------------------------------------------------+

**EXHIBIT A**

**CONTRACT PRICING PROPOSAL COVER SHEET**

<table style="width:100%;">
<colgroup>
<col style="width: 14%" />
<col style="width: 33%" />
<col style="width: 0%" />
<col style="width: 3%" />
<col style="width: 12%" />
<col style="width: 1%" />
<col style="width: 3%" />
<col style="width: 2%" />
<col style="width: 4%" />
<col style="width: 1%" />
<col style="width: 1%" />
<col style="width: 0%" />
<col style="width: 1%" />
<col style="width: 11%" />
<col style="width: 7%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="7"><p>1. SOLICITATION/CONTRACT/MODIFICATION NO.</p>
<p><strong>     </strong></p></td>
<td colspan="8">NETL APPROVED FORM</td>
</tr>
<tr class="even">
<td colspan="2" rowspan="5"><p>2. NAME AND ADDRESS OF OFFEROR (Include
ZIP Code)</p>
<p><strong>     </strong></p>
<p><strong>     </strong></p>
<p><strong>     </strong></p>
<p><strong>     </strong></p>
<p><strong>     </strong></p></td>
<td colspan="8"><p>3A. NAME AND TITLE OF OFFEROR’S POINT</p>
<p>OF CONTACT</p>
<p><strong>     </strong></p></td>
<td colspan="5"><p>3B. TELEPHONE NO.</p>
<p><strong>     </strong></p></td>
</tr>
<tr class="odd">
<td colspan="13">4. TYPE OF CONTRACT ACTION (Check)</td>
</tr>
<tr class="even">
<td colspan="2"></td>
<td colspan="4">A. NEW CONTRACT</td>
<td></td>
<td colspan="6">D.      </td>
</tr>
<tr class="odd">
<td colspan="2"></td>
<td colspan="4">B. CHANGE ORDER</td>
<td></td>
<td colspan="6">E.      </td>
</tr>
<tr class="even">
<td colspan="2"></td>
<td colspan="4">C.      </td>
<td></td>
<td colspan="6">F.      </td>
</tr>
<tr class="odd">
<td colspan="2" rowspan="2"><p>5. TYPE OF CONTRACT:</p>
<p><strong>     </strong></p></td>
<td colspan="13">6. PROPOSED COST (A + B = C)</td>
</tr>
<tr class="even">
<td colspan="3"><p>A. COST TO DOE</p>
<p><strong>     </strong></p></td>
<td colspan="8"><p>B. FEE</p>
<p><strong>     </strong></p></td>
<td colspan="2"><p>C. TOTAL COST AND FEE</p>
<p><strong>     </strong></p></td>
</tr>
<tr class="odd">
<td colspan="15"><p>7. PLACE(S) AND PERIOD(S) OF PERFORMANCE</p>
<p><strong>     </strong></p></td>
</tr>
<tr class="even">
<td colspan="15">8. List and reference the identification, quantity, and
total price proposed for each contract line item. A line item cost
breakdown supporting this recap is required unless otherwise specified
by the Contracting Officer. (Continue on reverse, and then on plain
paper, if necessary, using same headings.)</td>
</tr>
<tr class="odd">
<td>A. LINE ITEM NO.</td>
<td colspan="5">B. IDENTIFICATION</td>
<td colspan="6">C. QUANTITY</td>
<td colspan="2">D. TOTAL PRICE</td>
<td>E. REF.</td>
</tr>
<tr class="even">
<td><strong>     </strong></td>
<td colspan="5"><strong>     </strong></td>
<td colspan="6"><strong>     </strong></td>
<td colspan="2"><strong>     </strong></td>
<td><strong>     </strong></td>
</tr>
<tr class="odd">
<td><strong>     </strong></td>
<td colspan="5"><strong>     </strong></td>
<td colspan="6"><strong>     </strong></td>
<td colspan="2"><strong>     </strong></td>
<td><strong>     </strong></td>
</tr>
<tr class="even">
<td><strong>     </strong></td>
<td colspan="5"><strong>     </strong></td>
<td colspan="6"><strong>     </strong></td>
<td colspan="2"><strong>     </strong></td>
<td><strong>     </strong></td>
</tr>
<tr class="odd">
<td><strong>     </strong></td>
<td colspan="5"><strong>     </strong></td>
<td colspan="6"><strong>     </strong></td>
<td colspan="2"><strong>     </strong></td>
<td><strong>     </strong></td>
</tr>
<tr class="even">
<td colspan="15">9. PROVIDE NAME, ADDRESS, AND TELEPHONE NUMBER FOR THE
FOLLOWING (If available)</td>
</tr>
<tr class="odd">
<td colspan="3"><p>A. CONTRACT ADMINISTRATION OFFICE</p>
<p><strong>     </strong></p>
<p><strong>     </strong></p>
<p><strong>     </strong></p></td>
<td colspan="12"><p>B. AUDIT OFFICE</p>
<p><strong>     </strong></p>
<p><strong>     </strong></p>
<p><strong>     </strong></p></td>
</tr>
<tr class="even">
<td colspan="3"><blockquote>
<p>10. WILL YOU REQUIRE THE USE OF ANY GOVERNMENT PROPERTY</p>
<p>IN THE PERFORMANCE OF THIS WORK? (If “yes,” identify)</p>
</blockquote>
<p> YES NO<strong>     </strong></p></td>
<td colspan="6"><p>11A. DO YOU REQUIRE GOVERNMENT</p>
<p>CONTRACT FINANCING TO PERFORM</p>
<p>THIS PROPOSED CONTRACT? (If</p>
<p>“Yes” complete Item 11B)</p>
<p> YES NO</p></td>
<td colspan="6"><p>11B. TYPE OF FINANCING ( one)</p>
<p> ADVANCE ROGRESS</p>
<p>PAYMENTS PAYMENTS</p>
<p> GUARANTEED LOANS</p></td>
</tr>
<tr class="odd">
<td colspan="3"><blockquote>
<p>12. HAVE YOU BEEN AWARDED ANY CONTRACTS OR SUBCONTRACTS</p>
<p>FOR THE SAME OR SIMILAR ITEMS WITHIN THE PAST 3 YEARS?</p>
<p>(If “Yes,” identify item(s), customer(s), and contract number(s))</p>
</blockquote>
<p> YES NO</p></td>
<td colspan="12"><p>13. IS THE PROPOSAL CONSISTENT WITH YOUR ESTABLISHED
ESTIMATING</p>
<p>AND ACCOUNTING PRACTICES AND PROCEDURES AND FAR PART 31,</p>
<p>COST PRINCIPLES? (If “No,” explain)</p>
<p> YES NO</p></td>
</tr>
<tr class="even">
<td colspan="15">14. COST ACCOUNTING STANDARDS BOARD (CASB) DATA (Public
Law 91-379 as amended and FAR PART 30)</td>
</tr>
<tr class="odd">
<td colspan="3"><blockquote>
<p>A. WILL THIS CONTRACT ACTION BE SUBJECT TO CASB</p>
<p>REGULATIONS? (If “No,” explain in proposal)</p>
</blockquote>
<p> YES NO</p></td>
<td colspan="12"><p>B. HAVE YOU SUBMITTED A CASB DISCLOSURE
STATEMENT</p>
<p>(CASB DB-1 OR 2)? (If “Yes,” specify in proposal the office to which
submitted</p>
<p>and if determined to be adequate)</p>
<p> YES NO</p></td>
</tr>
<tr class="even">
<td colspan="3"><blockquote>
<p>C. HAVE YOU BEEN NOTIFIED THAT YOU ARE OR MAY BE IN NON-</p>
<p>COMPLIANCE WITH YOUR DISCLOSURE STATEMENT OR COST</p>
</blockquote>
<p>ACCOUNTING STANDARDS? (If “Yes,” explain in proposal)</p>
<p> YES NO</p></td>
<td colspan="12"><p>D. IS ANY ASPECT OF THIS PROPOSAL INCONSISTENT WITH
YOUR</p>
<p>DISCLOSED PRACTICES OR APPLICABLE COST ACCOUNTING</p>
<p>STANDARDS? (If “Yes,” explain in proposal)</p>
<p> YES NO</p></td>
</tr>
<tr class="odd">
<td colspan="15">This proposal reflects our estimates and/or actual
costs as of this date and conforms with the instructions in FAR
15.403-5(b)(1) and Table 15-2. By submitting this proposal, we grant the
Contracting Officer or authorized representative(s) the right to
examine, at any time before award, those records, which include books,
documents, accounting procedures and practices, and other data,
regardless of type and form or whether such supporting information is
specifically referenced or included in the proposal as the basis for
pricing, that will permit an adequate evaluation of the proposed
price.</td>
</tr>
<tr class="even">
<td colspan="3"><p>15. NAME AND TITLE (Type)</p>
<p><strong>     </strong></p></td>
<td colspan="12"><p>16. NAME OF FIRM</p>
<p><strong>     </strong></p></td>
</tr>
<tr class="odd">
<td colspan="11">17. SIGNATURE</td>
<td colspan="4"><p>18.DATE OF SUBMISSION</p>
<p><strong>     </strong></p></td>
</tr>
</tbody>
</table>

**EXHIBIT B-1**

**SUMMARY OF COST ELEMENTS BY TASK AND FOR TOTAL PROJECT**

**Total Total**

**[COST ELEMENTS:]{.underline} [Task No.]{.underline} [Task
No.]{.underline} [Task No.]{.underline} [Task No.]{.underline}
[Project]{.underline}**

Direct Material

A\) Purchased Parts

B\) Subcontracted Items

C\) Other

Total Direct Materials

Material Overhead

Direct Labor

Labor Overhead

Special Testing

Special Equipment

Travel

Consultants

Other Direct Costs

**Total Direct Cost and Overhead**

General & Administrative Expense

Facilities Capital Cost of Money

**Total Estimated Cost**

Fee

Cost Sharing

**Total Estimated DOE Funds Required**

**EXHIBIT B-2**

**SUMMARY OF COST ELEMENTS BY TASK**

**FOR OFFEROR\'S FISCAL YEAR** **200\_\_\_**

**Fiscal Year Fiscal Year**

**[COST ELEMENTS:]{.underline} [Task No.]{.underline} [Task
No.]{.underline} [Task No]{.underline}. [Task No.]{.underline}
[Total]{.underline}**

Direct Material

A\) Purchased Parts

B\) Subcontracted Items

C\) Other

Total Direct Materials

Material Overhead

Direct Labor

Labor Overhead

Special Testing

Special Equipment

Travel

Consultants

Other Direct Costs

**Total Direct Cost and Overhead**

General & Administrative Expense

Facilities Capital Cost of Money

**Total Estimated Cost**

Fee

Cost Sharing

**Total Estimated DOE Funds Required**

**NOTES:**

\(1\) An Exhibit B-2 shall be provided for [each]{.underline} of the
offeror's fiscal years (or portion thereof) in which the project is to
be performed.

**EXHIBIT C**

**SUMMARY OF DIRECT MATERIALS AND/OR EQUIPMENT**

**BY TASK AND OFFEROR\'S FISCAL YEAR**

> **Unit Total Basis for**

**[Item Description]{.underline} [Quantity]{.underline}
[Cost]{.underline} [Cost]{.underline} [Proposed Costs]{.underline}**

\$ \$

**TOTALS** \$

**NOTES:**

\(1\) Itemize proposed materials to coincide with the materials line on
the Exhibit B-2 cost summaries by task.

\(2\) Similarly, any proposed special equipment should be itemized so
that task totals tie into the special equipment line on the Exhibit B-2
cost summaries.

\(3\) In the "basis of proposed cost" column, identify how the proposed
cost was derived such as written quotes, engineering estimates, prior
invoices, catalogue prices, etc. Where appropriate, also identify the
vendor and date the information was obtained.

**EXHIBIT D-1**

**SUMMARY OF DIRECT LABOR BY TASK AND OFFEROR\'S FISCAL YEAR**

**TASK NO.:\_\_\_\_\_\_\_**

**FISCAL PERIOD:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**

**(1) (2) (1) X (2)**

**[Labor Categories]{.underline} [Proposed Hours]{.underline} [Hourly
Rate]{.underline} [Labor Cost]{.underline}**

**TOTALS**

**NOTES:**

\(1\) List each labor category by name; do not use codes unless an
explanation is provided to permit decoding.

\(2\) Provide the above information for EACH TASK in EACH FISCAL PERIOD
as provided in Exhibit B-2, so that the trail between these two exhibits
is easy to follow.

\(3\) Provide the basis for the proposed hourly rates. For example, the
rates are actual rates or averages of actual rates for the labor
category(s) proposed, paid as of a given date. If a factor is included
to provide for known or anticipated increases, identify the factor and
basis. If a factor for fringe benefits is included, e.g., vacations, it
should be stated separately.

**EXHIBIT D-2**

**SUMMARY OF DIRECT LABOR HOURS BY TASK**

**[LABOR CATEGORY:]{.underline} [Task No.]{.underline} [Task
No.]{.underline} [Task No.]{.underline} [Task No.]{.underline} [Total
]{.underline}**

Prime Contractor:

Category 1

Category 2

Category 3

Etc.

S)))))))Q S)))))))Q S)))))))Q S)))))))Q S)))))))Q

Subtotal

Subcontractor A:

Category 1

Category 2

Category 3

Etc.

S)))))))Q S)))))))Q S)))))))QS)))))))Q S)))))))Q

Subtotal

Subcontractor B:

Category 1

Category 2

Category 3

Etc.

S)))))))Q S)))))))Q S)))))))Q S)))))))Q S)))))))Q

Subtotal

Consultant A:

Category 1

Category 2

Category 3

Etc.

S)))))))Q S)))))))Q S)))))))Q S)))))))Q S)))))))Q

Subtotal

S)))))))Q S)))))))Q S)))))))Q S)))))))Q S)))))))Q

Grand Total

W4444444U W4444444U W4444444U 4444444U W4444444U

**EXHIBIT E**

**SUMMARY OF TRAVEL BY TASK AND OFFEROR\'S FISCAL YEAR**

**Fiscal Round-trip Ground Daily Per Daily Car**

**[Year]{.underline} [Destination]{.underline} [Airfare]{.underline}
[Transportation]{.underline} [Diem Rate]{.underline} [Rental
Rate]{.underline}**

**NOTES:**

\(1\) In this section, provide the rates used to calculate airfare,
ground transportation, per diem (which includes subsistence, meals and
incidental expenses) and car rental.

**Total Total**

**Fiscal Number of Total Total Car Travel**

**[Task]{.underline} [Year]{.underline} [Destination]{.underline}
[Trips/People/Days]{.underline} [Airfare]{.underline} [Per
diem]{.underline} [Rental]{.underline} [Cost ]{.underline}**

**NOTES:**

\(1\) In this section, show total costs for each of the travel
components based on usage of the rates shown above, i.e., the number of
trips and people and days applied to the appropriate rates above should
result in the total costs.

\(2\) The total cost per task should match the travel line on the
Exhibit B-2 cost summaries.

**EXHIBIT F**

**SUMMARY OF OTHER DIRECT COSTS**

**BY TASK AND OFFEROR\'S FISCAL YEAR**

**Number of Rate per Total**

**[Description of Cost]{.underline} [Units/Hours/etc.]{.underline}
[Unit/Hour/etc.]{.underline} [Cost ]{.underline}**

S)))))))))Q

\$

W444444444U

**NOTES:**

\(1\) Specify both the quantity and the measure; for example, 100 hours
or 2 days.

\(2\) The total cost by task should tie into the other direct costs line
on the exhibit b-2 cost summaries.

\(3\) This same format should be used to identify any consultant costs
proposed. The number of days or hours and the rate can be itemized for
each individual consultant.

**EXHIBIT G-1**

**SUMMARY OF INDIRECT EXPENSES**

**Overhead Category:**

**Previous Fiscal Current Fiscal Next Fiscal**

**Year Base Pool Year Base Pool Year Base Pool**

**[Account Title]{.underline} [FY:]{.underline} [FY:]{.underline} [FY:
]{.underline}**

Base for Allocation:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\$\_\_\_\_\_\_\_\_\_\_\_\_\_\_

OFFEROR\'S FISCAL YEAR: Beginning:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Ending:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**NOTES:**

\(1\) Submit a separate Exhibit G-1 for each of your company's indirect
cost pools.

\(2\) For each pool, provide a breakdown by expense account. See
examples on the following pages. Examples are provided solely to
indicate an acceptable format for this exhibit.

DO NOT ATTEMPT TO CONFORM YOUR ACCOUNTS TO THOSE LISTED IN THE EXAMPLES.

**EXHIBIT G-1**

**FOR EXAMPLE ONLY**

**SUMMARY OF INDIRECT EXPENSES**

**Overhead Category: [Material Overhead]{.underline}**

**Previous Fiscal Current Fiscal Next Fiscal Year Base Pool Year Base
Pool Year Base Pool**

**[Account Title]{.underline} [FY: 1999]{.underline} [FY:
2000]{.underline} [FY: 2001 ]{.underline}**

Indirect Labor \$ 823,833 \$ 864,327 \$1,125,500

Additional Compensation 31,000 34,392 41,225

Overtime Premium 5,010 5,263 5,500

Holidays 26,812 28,100 41,340

Sick Leave 20,768 22,018 33,750

Suggestion Awards 15 125 150

Vacations 43,607 45,734 56,250

Maintenance - Outside

Services 165 192 200

Other Outside Services 78 76 75

Payroll Taxes 74,587 78,669 102,275

Travel 37,741 36,535 37,500

Dues and Subscriptions 651 651 651

Pension Fund 26,068 27,117 30,700

Operating Supplies 12,694 14,156 15,450

Stationery, Printing, &

Operating Supplies 10,210 10,162 10,750

Telephone 19,184 20,322 21,500

Heat, Light, and Power 158,997 170,004 175,000

Depreciation [79,554]{.underline} [79,554]{.underline}
[79,554]{.underline}

Total Expense Pool (A) \$ 1,370,974 \$ 1,437,397 \$ 1,777,370

Allocation Base:

Direct Materials (B) \$25,878,940 \$28,466,900 \$31,313,600

Material Overhead

Rate (A) / (B) 5.3% 5.0% 5.7%

\* Includes two months budgetary estimate.

Fiscal Year Beginning: April 1 and Ending: March 31

**EXHIBIT G-1**

**FOR EXAMPLE ONLY**

**SUMMARY OF INDIRECT EXPENSES**

**Overhead Category**: **[Labor Overhead]{.underline}**

**Previous Fiscal Current Fiscal Next Fiscal Year Base Pool Year Base
Pool Year Base Pool**

**[Account Title]{.underline} [FY: 1999]{.underline} [FY:
2000]{.underline} [FY: 2001 ]{.underline}**

Indirect Payroll \$ 264,909 \$ 256,213 \$ 260,000

Payroll Taxes 226,249 227,698 228,000

Vacation 118,710 119,872 120,000

Holidays 109,506 109,772 110,000

Sick Leave 49,962 50,013 50,000

Pensions 170,729 172,079 171,000

Employee Morale 4,073 4,987 5,000

Office Equipment 7,201 7,562 7,000

Depreciation 5,006 4,736 5,000

Subscriptions 1,397 1,488 1,500

Travel 20,557 19,724 22,000

Miscellaneous 1,513 1,987 2,000

Stationery 5,706 6,201 6,000

Reproduction 16,714 17,945 17,000

Maintenance 5,197 5,791 5,000

Rent 200,025 201,218 202,000

Telephone 10,538 10,712 11,000

Insurance [93,786]{.underline} [90,758]{.underline}
[102,000]{.underline}

Total Expense Pool (A) \$1,311,778 \$1,308,756 \$1,324,500

Allocation Base:

Direct Labor (B) \$2,398,541 \$2,460,872 \$2,336,000

Labor Overhead

Rate (A) / (B) 54.7% 53.2% 56.7%

\* Includes two months budgetary estimate.

Fiscal Year Beginning: April 1 and Ending: March 31

**EXHIBIT G-1**

**FOR EXAMPLE ONLY**

**SUMMARY OF INDIRECT EXPENSES**

**Overhead Category:** [G&A Expense]{.underline}

**Previous Fiscal Current Fiscal\* Next Fiscal Year Base Pool Year Base
Pool Year Base Pool**

**[Account Title]{.underline} [FY: 1999]{.underline} [FY:
2000]{.underline} [FY: 2001 ]{.underline}**

Payroll Taxes \$ 54,909 \$ 56,213 \$ 56,800

Officers\' Salaries 566,249 579,698 586,000

Indirect Salaries 1,407,100 1,458,724 1,460,500

Interest 63,506 63,772 60,500

Vacation 80,637 81,398 82,525

Holidays 49,962 50,013 49,500

Sick Leave 34,875 32,937 32,500

Contributions 15,743 13,289 15,000

Pensions 50,729 52,079 53,500

Office Equipment 30,541 27,942 26,750

Depreciation 30,557 29,724 29,000

Travel 62,513 64,987 67,000

Miscellaneous 30,706 41,201 43,250

Legal Fees 16,714 10,945 15,000

Accounting Fees 21,197 23,791 22,500

Computer 24,025 27,218 29,000

Rent 60,538 62,712 65,000

Advertising 13,786 10,758 12,500

Telephone 59,105 61,372 65,000

Insurance [13,844]{.underline} [15,473]{.underline} [15,500]{.underline}

Total Pool \$ 2,687,236 \$ 2,764,246 \$ 2,787,325

Independent Research\*\* 932,940 826,842 920,000

B&P [743,902]{.underline} [526,209]{.underline} [700,000]{.underline}

Total G&A Expenses \$ 4,364,078 \$ 4,117,297 \$ 4,407,325

Less unallowables:

Interest 63,506 63,772 60,500

Contributions 15,743 13,289 15,000

Advertising [13,786]{.underline} [10,758]{.underline}
[12,500]{.underline}

Total Unallowables [\$ 93,035]{.underline} [\$ 87,819]{.underline} [\$
88,000]{.underline}

Net Allowable

G&A Expenses (A) \$ 4,271,043 \$ 4,029,478 \$ 4,319,325

Allocation Base:

Total Cost Input (B) \$50,993,247 \$52,932,479 \$53,549,800

G&A Rate (A) / (B) 8.4% 7.6% 8.1%

\* Includes two months budgetary estimate.

\*\* If there are advance agreements, the explanation should so
reference. Latest actual and estimated program expenditures and
allocation bases should be provided.

Fiscal Year Beginning: April 1 and Ending March 31

**EXHIBIT G-2**

**SUMMARY OF PROPOSED INDIRECT RATES**

**Fiscal Fiscal Fiscal**

**Year Year Year**

**[Indirect Rate Category]{.underline} [200X]{.underline}
[200X]{.underline} [200X ]{.underline}**

**NOTES:**

\(1\) List all indirect categories contained in your proposal (i.e.,
material overhead, labor overhead, fringe benefits, G&A expense, etc.)

\(2\) Identify percentages or factors: do not list dollar amounts.

\(3\) If the "next fiscal year" rate from Exhibit G-1 differs from rates
shown above covering the entire period of performance, then additional
Exhibit G-1 expense pool and allocation base data must be prepared so
that all proposed rates are fully supported.

**EXHIBIT H**

**SUMMARY OF ESCALATION FACTORS/PERCENTAGES BY COST ELEMENT**

**Fiscal Fiscal Fiscal**

**[Cost Element]{.underline} [Year]{.underline} [Year]{.underline} [Year
]{.underline}**

**NOTES**:

\(1\) List each cost element (i.e., materials, labor, travel, etc.) that
is escalated and the applicable rate.

\(2\) Identify percentages or factor: Do not list dollar amounts.

**EXHIBIT I**

**PRE-AWARD ACCOUNTING SYSTEM SURVEY**

This accounting system review is designed to determine the adequacy and
suitability of a contractor\'s accounting system and practices for
accumulating costs under the type of Government instrument to be
awarded. The Offeror(s) and each subcontractor whose total proposed
costs exceed \$100,000 shall complete the attached accounting system
survey. The form should be completed and signed by an individual
familiar with the capabilities of the organization\'s accounting system.

Does the Accounting System provide for: [YES]{.underline}
[NO]{.underline}

1\. Proper segregation of direct costs from indirect costs? \_\_\_
\_\_\_

2\. Identification and accumulation of direct costs by

contract? Under a job order cost system, subsidiary

cost records for each individual contract are generally

available? \_\_\_ \_\_\_

3\. A logical and consistent method for the allocation of

indirect costs to intermediate and final cost objectives? \_\_\_ \_\_\_

4\. Accumulation of costs under general ledger control? \_\_\_ \_\_\_

5\. A timekeeping system that identifies employees\' labor

by intermediate or final cost objectives? \_\_\_ \_\_\_

6\. A labor distribution system that charges direct and

indirect labor to the appropriate cost objectives? \_\_\_ \_\_\_

7\. Interim (at least monthly) determination of costs

charged to a contract through routine posting of books

of account? \_\_\_ \_\_\_

8\. Exclusion from costs charged to Government contracts of

amounts which are not allowable pursuant to FAR Part 31,

Contract Cost Principles and Procedures, or other

contract provisions? \_\_\_ \_\_\_

9\. Identification of costs by contract line item if

required by the proposed contract? \_\_\_ \_\_\_

PRINTED NAME AND TITLE:

SIGNATURE: DATE:

***PART II***

***ADDITIONAL INFORMATION***

**[Estimating Procedure]{.underline}**

Provide a discussion of the offeror\'s estimating procedure and the
rationale used in the development of the proposed costs. For effective
negotiations, it is essential that there be a clear understanding of:

> a\. The existing verifiable data;

b\. The judgmental factors applied in projecting from known data to the
estimate;

c\. The contingencies used by the offeror in the proposed costs.

**[Subcontracts]{.underline}**

The following information is required FOR EACH PLANNED SUBCONTRACT OF
\$550,000 OR MORE:

a\. A brief description of the work to be subcontracted.

> b\. The number of quotes solicited and received.

c\. The cost or price analysis performed by the offeror.

d\. Names and addresses of the subcontractors tentatively selected and
the basis for their selection; (i.e., low bidder, delivery schedule,
technical competence, etc.)

e\. The offeror\'s rating of the subcontractor\'s competence, i.e.,
fair, good, excellent.

f\. Type of contract and estimated cost and fee or profit.

g\. Affiliation with the offeror, if any.

h\. Whether or not the subcontractor is a small business concern, small
disadvantaged business concern, veteran-owned business, or woman-owned
business.

i\. The extent of subcontract supervision required.

**[Consultants]{.underline}**

If the offeror proposed the use of consultants, provide the following
FOR EACH NAMED CONSULTANT:

a\. Resume.

b\. Identification of all cost elements included in the consultant\'s
daily/hourly rates, plus a detailed explanation of any costs that would
be charged over and above the rates.

c\. A signed consulting agreement between the offeror and the
consultant.

d\. A signed statement from the consultant that the proposed rate is a
\"most favored customer rate," or the reason such a rate was not
offered.

e\. A determination by the offeror that the rate proposed is comparable
to the rates of other consultants doing similar types of work.

f\. The offeror shall prepare a technical evaluation of the need to
employ a consultant, which shall include the consultant\'s technical
ability to perform the desired work, along with a statement and reason
that in-house resources are unavailable for performance of the effort.

In those cases where a consultant IS NOT NAMED but the offeror realizes
a need will exist, the offeror shall support the proposed daily rate by
supplying the information in (e) and (f) above.

**[Cost Sharing, In-kind Contributions, etc.]{.underline}**

If either cost sharing or cost participation is proposed, information
should be provided concerning the proposed contractual arrangements.
Examples of arrangements and the information required are as follows
(however, note that arrangements are not limited to these four):

a\. Cash: Indicate the percentage proposed and identify the base to
which the rate would be applied.

b\. Elimination of certain items from indirect pools: Identify which
elements.

c\. Forbearance of fee/profit: State the standard percentage and
identify the base to which the rate normally applies.

d\. In-kind contribution of facilities: Explain how the value of the
contribution was calculated.

In any case, any proposed cost sharing method or value is subject to
independent evaluation and audit by DOE in accordance with DEAR 917.70.

**[Financial Condition]{.underline}**

a\. Provide a current balance sheet, profit and loss statement for all
quarters reported on the current fiscal year, and an audited financial
statement for each of the last 3 fiscal years.

b\. Describe fully any assets other than cash, accounts receivable,
land, buildings, and equipment carried on the above balance sheet.

c\. State what percentage this proposed contract will represent of the
offeror\'s estimated total business during the period of performance.

d\. Describe fully the impact of this project on the offeror\'s
organization and any contingency, limitation, and conditions affecting
availability of funds for this project.

**[Company Compensation Policies]{.underline}**

The offeror shall briefly describe company compensation policies in the
following areas (existing company publications may be furnished):

a\. Salary Increases:(Merit, Cost-of-Living, General, Other)

b\. Fringe Benefits: Paid Absences (Vacations, Sick Leave, Holidays),
Insurance Contributions, Retirement, Other

c\. Travel and Per Diem

d\. Relocation

e\. Bonuses & Other Employee Incentives

f\. Severance

g\. Overtime

h\. Shift Premium

**[High Value Equipment]{.underline}**

Offerors are informed that when the use of High Value Equipment (in
excess of \$10,000) is applicable to the procurement, the Government
reserves the right to require the submission of the feasibility of lease
versus purchase studies by the successful offeror.

**[Use of Adpe]{.underline}**

If the use of automatic data processing equipment (ADPE) is proposed by
the offeror, the Government reserves the right to require the
preparation of (1) feasibility and (2) lease versus purchase studies by
the successful offeror.

[The offeror shall provide any other supporting information deemed
necessary in this section.]{.underline}

***PART III***

***SUMMARY OF EXCEPTIONS AND DEVIATIONS***

The offeror shall identify and explain any exceptions, deviations, or
conditional assumptions taken with respect to the requirements contained
in these Cost Proposal Preparation Instructions.

Any exceptions or deviations taken must contain sufficient amplification
and justification to permit evaluation. All benefits to the Government
shall be explained for each exception taken. Such exceptions will not,
of themselves, automatically cause a proposal to be termed unacceptable.
A large number of exceptions, or one or more significant exceptions not
providing benefit to the Government may, however, result in rejection of
the proposal(s) as unacceptable.