215.403-5 Instructions for submission of

certified cost or pricing data and data other

than certified cost or pricing data.

(b)(3) For contractors following the contract cost principles in FAR subpart 31.2, Contracts With

Commercial Organizations, pursuant to the procedures in FAR 42.1701(b), the administrative

contracting officer shall require contractors to comply with the submission items in Table 215.403-1

in order to ensure that their forward pricing rate proposal is submitted in an acceptable form in

accordance with FAR 15.403-5(b)(3). The contracting officer should request that the proposal be

submitted to the Government at least 90 days prior to the proposed effective date of the rates. To

ensure the proposal is complete, the contracting officer shall request that the contractor complete

the Contractor Forward Pricing Rate Proposal Adequacy Checklist at Table 215.403-1 , and submit it

with the forward pricing rate proposal.

Table 215.403-1 – Contractor Forward Pricing Rate Proposal Adequacy Checklist

Complete the following checklist, providing the location of requested information, or an explanation

of why the requested information is not provided, and submit it with the forward pricing rate

proposal.

Contractor Forward Pricing Rate Proposal Adequacy Checklist
SUBMISSION

ITEM

PROPOSAL

PAGE No.

(if

applicable)

If not

provided,

EXPLAIN

(may use

continuation

pages)

GENERAL

INSTRUCTIONS
SUBMISSION

ITEM

PROPOSAL

PAGE No.

(if

applicable)

If not

provided,

EXPLAIN

(may use

continuation

pages)

GENERAL

INSTRUCTIONS

Is there a properly completed first page of

the proposal as specified by the

contracting officer?

Initial proposal elements include:

a. Name and address of contractor;

b. Name and telephone number of point of

contact;

c. Period covered;

d. The page of the proposal that

addresses—

1. Whether your organization is subject to

cost accounting standards (CAS);

2. Whether your organization has

submitted a CAS Disclosure Statement,

and whether it has been determined

adequate;

3. Whether you have been notified that you

are or may be in noncompliance with your

Disclosure Statement or CAS (other than a

noncompliance that the cognizant Federal

agency official had determined to have an

immaterial cost impact), and if yes, an

explanation;

4. Whether any aspect of this proposal is

inconsistent with your disclosed practices

or applicable CAS, and, if so, an

explanation; and whether the proposal is

consistent with established estimating and

accounting principles and procedures and

FAR part 31, Cost Principles, and, if not, an

explanation;

e. The following statement: “This forward

pricing rate proposal reflects our

estimates, as of the date of submission

entered in (f) below and conforms with

Table 215.403-1 . By submitting this

proposal, we grant the Contracting Officer

and authorized representative(s) the right

to examine 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

each estimate, that will permit an adequate

evaluation of the proposed rates and

factors.”;

f. Date of submission; and

g. Name, title, and signature of authorized

representative.

Proposal

Cover Page
SUBMISSION

ITEM

PROPOSAL

PAGE No.

(if

applicable)

If not

provided,

EXPLAIN

(may use

continuation

pages)

GENERAL

INSTRUCTIONS

Summary of proposed direct and indirect

rates and factors, including the proposed

pool and base costs for each proposed

indirect rate and factor.

Immediately

following the

proposal

cover page

Table of Contents or index.

a. Does the proposal include a table of

contents or index identifying and

referencing all supporting data

accompanying or identified in the

proposal?

b. For supporting documentation not

provided with the proposal, does the basis

of each estimate in the proposal include

the location of the documentation and the

point of contact (custodian) name, phone

number, and email address?

Does the proposal disclose known or

anticipated changes in business activities

or processes that could materially impact

the proposed rates (if not previously

provided)? For example—

a. Management initiatives to reduce costs;

b. Changes in management objectives as a

result of economic conditions and

increased competitiveness;

c. Changes in accounting policies,

procedures, and practices including (i)

reclassification of expenses from direct to

indirect or vice versa; (ii) new methods of

accumulating and allocating indirect costs

and the related impact; and (iii) advance

agreements; d. Company reorganizations

(including acquisitions or divestitures);

e. Shutdown of facilities; or

f. Changes in business volume and/or

contract mix/type.

Do proposed costs based on judgmental

factors include an explanation of the

estimating processes and methods used,

including those used in projecting from

known data?
SUBMISSION

ITEM

PROPOSAL

PAGE No.

(if

applicable)

If not

provided,

EXPLAIN

(may use

continuation

pages)

GENERAL

INSTRUCTIONS

Does the proposal show trends and

budgetary data? Does the proposal provide

an explanation of how the data, as well as

any adjustments to the data, were used?

The proposal should reconcile to the

supporting data referenced. If the proposal

does not reconcile to the supporting data

referenced, identify applicable page(s) and

explain.

The proposal should be internally

consistent. If the proposal is not internally

consistent, identify applicable page(s) and

explain.

Direct Labor

Direct Labor Rates Methodology and Basis

of Each Estimate. a. Does the proposal

include an explanation of the methodology

used to develop the direct labor rates and

identify the basis of each estimate? b. Does

the proposal include or identify the

location of the supporting documents for

the base-period labor rates (e.g., payroll

records)?

Does the proposal identify escalation

factors for the out-year labor rates, the

costs to which escalation is applicable, and

the basis of each factor used?

Does the proposal identify planned or

anticipated changes in the composition of

labor rates, labor categories, union

agreements, headcounts, or other factors

that could significantly impact the direct

labor rates?

Indirect Rates

(Fringe, Overhead,

G&A, etc.)
SUBMISSION

ITEM

PROPOSAL

PAGE No.

(if

applicable)

If not

provided,

EXPLAIN

(may use

continuation

pages)

GENERAL

INSTRUCTIONS

Indirect Rates Methodology and Basis of

Each Estimate. a. Does the proposal

identify the basis of each estimate and

provide an explanation of the methodology

used to develop the indirect rates?

b. Does the proposal include or identify the

location of the supporting documents for

the proposed rates?

Does the proposal identify indirect

expenses by burden center, by cost

element, by year (including any voluntary

deletions, if applicable) in a format that is

consistent with the accounting system used

to accumulate actual expenses?

Does the proposal identify any

contingencies?

Does the proposal identify planned or

anticipated changes in the nature, type, or

level of indirect costs, including fringe

benefits?

Does the proposal identify corporate, home

office, shared services, or other incoming

allocated costs and the source for those

costs, including location and point of

contact (custodian) name, phone number,

and email address?

Does the proposal separately identify all

intermediate cost pools and provide a

reconciliation to show where the costs will

be allocated?

Does the proposal identify the escalation

factors used to escalate indirect costs for

the out-years, the costs to which escalation

is applicable, and the basis of each factor

used?
SUBMISSION

ITEM

PROPOSAL

PAGE No.

(if

applicable)

If not

provided,

EXPLAIN

(may use

continuation

pages)

GENERAL

INSTRUCTIONS

Does the proposal provide details of the

development of the allocation base?

Does the proposal include or reference the

supporting data for the allocation base

such as program budgets, negotiation

memoranda, proposals, contract values,

etc.?

Does the proposal identify how the

proposed allocation bases reconcile with its

long range plans, strategic plan, operating

budgets, sales forecasts, program budgets,

etc.?

Cost of Money

(COM)

Cost of Money. a. Are Cost of Money rates

submitted on Form CASB-CMF, with the

Treasury Rate used to compute COM

identified and a summary of the net book

value of assets, identified as distributed

and non-distributed?

b. Does the proposal identify the support

for the Form CASB-CMF, for example, the

underlying reports and records supporting

the net book value of assets contained in

the form?

OTHER

Does the proposal include a comparison of

prior forecasted costs to actual results in

the same format as the proposal and an

explanation/analysis of any differences?
SUBMISSION

ITEM

PROPOSAL

PAGE No.

(if

applicable)

If not

provided,

EXPLAIN

(may use

continuation

pages)

GENERAL

INSTRUCTIONS

If this is a revision to a previous rate

proposal or a forward pricing rate

agreement, does the new proposal provide

a summary of the changes in the

circumstances or the facts that the

contractor asserts require the change to

the rates?

Parent topic: 215.403 Obtaining certified cost or pricing data.