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EXECUTIVE
OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, DC 20503
May
29, 2003
(including technical correction made by OMB Memorandum M-03-20)
CIRCULAR NO. A-76 (REVISED)
TO THE HEADS
OF EXECUTIVE DEPARTMENTS AND ESTABLISHMENTS
SUBJECT:
Performance of Commercial Activities
1. Purpose.
This circular establishes federal policy for the competition of commercial
activities.
2. Supersession.
This circular supersedes Office of Management and Budget (OMB) Circular
No. A-76 (Revised 1999), August 4, 1983; Circular No. A–76 Revised
Supplemental Handbook (Revised 2000), March 1996; Office of Federal Procurement
Policy Letter 92-1, “Inherently Governmental Functions,” September
23, 1992; and OMB Transmittal Memoranda 1 through 25, Performance of Commercial
Activities.
3. Authority.
Reorganization Plan No. 2 of 1970 (31 U.S.C. § 1111); Executive Order
11541; the Office of Federal Procurement Policy Act (41 U.S.C. §
405); and the Federal Activities Inventory Reform (FAIR) Act of 1998 (31
U.S.C. § 501 note).
4. Policy.
The longstanding policy of the federal government has been to rely on
the private sector for needed commercial services. To ensure that the
American people receive maximum value for their tax dollars, commercial
activities should be subject to the forces of competition. In accordance
with this circular, including Attachments A-D, agencies shall:
a.
Identify all activities performed by government personnel as either
commercial or inherently governmental.
b.
Perform inherently governmental activities with government personnel.
c.
Use a streamlined or standard competition to determine if government
personnel should perform a commercial activity.
d.
Apply the Federal Acquisition Regulation (FAR), 48 C.F.R. Chapter 1,
in conjunction with this circular, for streamlined and standard competitions.
e.
Comply with procurement integrity, ethics, and standards of conduct
rules, including the restrictions of 18 U.S.C. § 208, when performing
streamlined and standard competitions.
f.
Designate, in writing, an assistant secretary or equivalent level official
with responsibility for implementing this circular, hereafter referred
to as the competitive sourcing official (CSO). Except as otherwise provided
by this circular, the CSO may delegate, in writing, specified responsibilities
to senior-level officials in the agency or agency components.
g.
Require full accountability of agency officials designated to implement
and comply with this circular by establishing performance standards
in annual performance evaluations.
h.
Centralize oversight responsibility to facilitate fairness in streamlined
and standard competitions and promote trust in the process. Agencies
shall allocate resources to effectively apply a clear, transparent,
and consistent competition process based on lessons learned and best
practices. Lessons learned and best practices resulting from a streamlined
or standard competition process shall be posted on SHARE A-76!
i.
Develop government cost estimates for standard and streamlined competitions
in accordance with Attachment C using the COMPARE costing software.
Agencies shall not use agency budgetary estimates to develop government
cost estimates in a streamlined or standard competition.
j.
Track execution of streamlined and standard competitions in accordance
with Attachment B.
k.
Assist adversely affected federal employees in accordance with 5 C.F.R.
Parts 330 and 351. The statutory veterans' preference for appointment
and retention (5 U.S.C. §§ 1302, 3301, 3302, 3502) applies
to actions taken pursuant to this circular.
l.
Not perform work as a contractor or subcontractor to the private sector,
unless specific statutory authority exists or the CSO receives prior
written OMB approval.
5. Scope.
a.
Except as otherwise provided by law, this circular shall apply to executive
departments named in 5 U.S.C. § 101 and independent establishments
as defined in 5 U.S.C. § 104. These departments and independent
establishments are referred to in this circular as “agencies”.
Except as otherwise provided by law, this circular shall apply to military
departments named in 5 U.S.C. § 102.
b.
As provided by Attachment A, the CSO may exempt a commercial activity
performed by government personnel from performance by the private sector.
c.
The CSO (without delegation) shall receive prior written OMB approval
to deviate from this circular (e.g., time limit extensions, procedural
deviations, or costing variations for a specific streamlined or standard
competition, or inventory process deviations). Agencies shall include
any OMB approved deviations in the public announcement and solicitation
for a streamlined or standard competition. Agencies are encouraged to
use this deviation procedure to explore innovative alternatives to standard
or streamlined competitions, including public-private partnerships,
public-public partnerships, and high performing organizations.
d.
A streamlined or standard competition is not required for private sector
performance of a new requirement, private sector performance of a segregable
expansion to an existing commercial activity performed by government
personnel, or continued private sector performance of a commercial activity.
Before government personnel may perform a new requirement, an expansion
to an existing commercial activity, or an activity performed by the
private sector, a streamlined or standard competition shall be used
to determine whether government personnel should perform the commercial
activity.
e.
The CSO shall identify savings resulting from completed streamlined
and standard competitions in accordance with OMB Circular No. A-11,
Preparation, Submission, and Execution of the Budget.
f.
This circular shall not be construed to alter any law, executive order,
rule, regulation, treaty, or international agreement.
g.
Noncompliance with this circular shall not be interpreted to create
a substantive or procedural basis to challenge agency action or inaction,
except as stated in Attachments A and B.
h.
The Department of Defense CSO (without delegation) shall determine if
this circular applies to the Department of Defense during times of a
declared war or military mobilization.
6. Effective
Date. This circular is effective upon publication in the Federal
Register and shall apply to inventories required, and streamlined
and standard competitions initiated, after the effective date.
7. Transition.
Agencies shall apply the following transition procedures to direct conversions
and cost comparisons, including streamlined cost comparisons, initiated
but not completed by the effective date of this circular.
a. Agencies shall convert initiated streamlined cost
comparisons and direct conversions to streamlined or standard competitions
under this revised circular.
b.
Agencies shall convert initiated cost comparisons for which solicitations
have not been issued prior to the effective date to standard competitions
under this revised circular or, at the agency's discretion if permitted
by this revised circular, to streamlined competitions.
c. The circular in effect prior to this revision shall
govern cost comparisons for which solicitations have been issued, unless
agencies, at their discretion, convert such cost comparisons to standard
competitions under this revised circular, or, if permitted by this revised
circular, to streamlined competitions.
d.
In applying transition procedures, agencies shall not combine the requirements
of this revised circular with those in the prior circular.
e.
When complying with the transition procedures required by this paragraph,
agencies shall make a public announcement within 30 days after the effective
date of this revised circular pursuant to this transition paragraph.
For conversions made at an agency's discretion, agencies shall make
public announcement on the date the agency's decision takes effect.
8.
Attachments.
Attachment
A -- Inventory Process
Attachment B -- Public-Private Competition
Attachment C -- Calculating Public-Private Competition
Costs
Attachment D -- Acronyms and Definitions
Mitchell E.
Daniels, Jr.
Director
Attachment
A
INVENTORY
PROCESS
A. INVENTORY
REQUIREMENTS.
1. Agency Inventories. An agency shall prepare two annual inventories
that categorize all activities performed by government personnel as either
commercial or inherently governmental.
2. Annual Requirement. By June 30 of each year, an agency shall
submit the following by electronic mail (e-mail) to OMB (a) an inventory
of commercial activities performed by government personnel; (b) an inventory
of inherently governmental activities performed by government personnel;
and (c) an inventory summary report. An agency may provide aggregate data
for uniformed services personnel and foreign nationals performing inherently
governmental activities. For annual inventories, an agency shall use the
format and data requirements found at the OMB web site (www.omb.gov).
3. OMB Review and Consultation. OMB shall, on an annual basis,
review both agency inventories and consult with the agency regarding the
content of both agency inventories.
4. Congressional and Public Notification. After OMB review and
consultation, an agency shall make both inventories available to Congress
and the public unless the inventory information is classified or otherwise
protected for national security reasons. OMB shall publish a notice of availability
in the Federal Register.
5. Inventory Summary Report. An agency shall submit an annual inventory
summary in the format in Figure A1. to identify aggregate data. The total
of the two agency inventories shall reasonably equate to an agency’s
authorized personnel requirements. An agency shall make the annual inventory
summary report available to the public unless the inventory information
is classified or otherwise protected for national security reasons.
B.
CATEGORIZING ACTIVITIES PERFORMED BY GOVERNMENT PERSONNEL AS INHERENTLY
GOVERNMENTAL OR COMMERCIAL.
1. Inherently Governmental Activities. The CSO shall justify, in
writing, any designation of government personnel performing inherently governmental
activities. The justification shall be made available to OMB and the public
upon request. An agency shall base inherently governmental justifications
on the following criteria:
a.
An inherently governmental activity is an activity that is so intimately
related to the public interest as to mandate performance by government
personnel. These activities require the exercise of substantial discretion
in applying government authority and/or in making decisions for the
government. Inherently governmental activities normally fall into two
categories: the exercise of sovereign government authority or the establishment
of procedures and processes related to the oversight of monetary transactions
or entitlements. An inherently governmental activity involves:
(1) Binding the United States to take or not to take some action
by contract, policy, regulation, authorization, order, or otherwise;
(2) Determining, protecting, and advancing economic, political,
territorial, property, or other interests by military or diplomatic action,
civil or criminal judicial proceedings, contract management, or otherwise;
(3) Significantly affecting the life, liberty, or property
of private persons; or
(4) Exerting ultimate control over the acquisition, use,
or disposition of United States property (real or personal, tangible or
intangible), including establishing policies or procedures for the collection,
control, or disbursement of appropriated and other federal funds.
b.
While inherently governmental activities require the exercise of substantial
discretion, not every exercise of discretion is evidence that an activity
is inherently governmental. Rather, the use of discretion shall be deemed
inherently governmental if it commits the government to a course of
action when two or more alternative courses of action exist and decision
making is not already limited or guided by existing policies, procedures,
directions, orders, and other guidance that (1) identify specified ranges
of acceptable decisions or conduct and (2) subject the discretionary
authority to final approval or regular oversight by agency officials.
c.
An activity may be provided by contract support (i.e., a private sector
source or a public reimbursable source using contract support) where
the contractor does not have the authority to decide on the course of
action, but is tasked to develop options or implement a course of action,
with agency oversight. An agency shall consider the following to avoid
transferring inherently governmental authority to a contractor:
(1) Statutory restrictions that define an activity as
inherently governmental;
(2) The degree to which official discretion is or would
be limited, i.e., whether involvement of the private sector or public
reimbursable provider is or would be so extensive that the ability of
senior agency management to develop and consider options is or would be
inappropriately restricted;
(3) In claims or entitlement adjudication and related
services (a) the finality of any action affecting individual claimants
or applicants, and whether or not review of the provider’s action
is de novo on appeal of the decision to an agency official; (b) the degree
to which a provider may be involved in wide-ranging interpretations of
complex, ambiguous case law and other legal authorities, as opposed to
being circumscribed by detailed laws, regulations, and procedures; (c)
the degree to which matters for decisions may involve recurring fact patterns
or unique fact patterns; and (d) the discretion to determine an appropriate
award or penalty;
(4) The provider’s authority to take action that
will significantly and directly affect the life, liberty, or property
of individual members of the public, including the likelihood of the provider’s
need to resort to force in support of a police or judicial activity; whether
the provider is more likely to use force, especially deadly force, and
the degree to which the provider may have to exercise force in public
or relatively uncontrolled areas. These policies do not prohibit contracting
for guard services, convoy security services, pass and identification
services, plant protection services, or the operation of prison or detention
facilities, without regard to whether the providers of these services
are armed or unarmed;
(5) The availability of special agency authorities and
the appropriateness of their application to the situation at hand, such
as the power to deputize private persons; and
(6) Whether the activity in question is already being
performed by the private sector.
2.
Commercial Activities. A commercial activity is a recurring service
that could be performed by the private sector and is resourced, performed,
and controlled by the agency through performance by government personnel,
a contract, or a fee-for-service agreement. A commercial activity is not
so intimately related to the public interest as to mandate performance
by government personnel. Commercial activities may be found within, or
throughout, organizations that perform inherently governmental activities
or classified work.
C.
REASON CODES FOR COMMERCIAL ACTIVITIES.
1. Annual Procedures. An agency shall use reason codes
A-F, identified in Figure A2. below, to indicate the rationale for government
performance of a commercial activity. Annual supplemental procedures for
the use of these reason codes may be found at the OMB web site.
2. Reason Code A. The CSO may use reason code A to exempt
commercial activities performed by government personnel from private sector
performance. The CSO shall provide sufficient written justification for
reason code A exemptions. These written justifications for the use of reason
code A shall be available to OMB and the public, upon request.
D.
INVENTORY CHALLENGE PROCESS. An agency shall implement the following
inventory challenge process.
1. Designation of Inventory Challenge and Appeal Authorities.
The head of the agency shall designate inventory challenge authorities and
inventory appeal authorities as follows:
a.
Inventory Challenges. Inventory challenge authorities shall
be agency officials at the same level as, or a higher level than, the
individual who prepared the inventory. Inventory challenge authorities
shall review and respond to challenges of agency inventory decisions.
b.
Inventory Appeals. Inventory appeal authorities shall be agency
officials who are independent and at a higher level in the agency than
inventory challenge authorities, and shall review and respond to appeals
of inventory challenge decisions made by inventory challenge authorities.
2. Submission of an Inventory Challenge. After publication
of OMB’s Federal Register notice stating that an agency’s
inventories are available, an interested party shall have 30 working days
to submit a written inventory challenge. The inventory challenge shall be
limited to (a) the classification of an activity as inherently governmental
or commercial, or (b) the application of reason codes. Function codes shall
not be subject to the inventory challenge process. A written inventory challenge
shall be submitted to agency inventory challenge authorities and shall specify
the agency, agency component, agency organization, function(s), and location(s)
for the activities being challenged.
3. Inventory Challenge Decision. Within 28 working days
of receiving the inventory challenge, inventory challenge authorities shall
(a) validate the commercial or inherently governmental categorization or
reason code designation of the activity, in a written inventory challenge
decision; and (b) transmit the inventory challenge decision, including the
rationale for the decision, to the interested party. Inventory challenge
authorities shall include an explanation of the interested party’s
right to file an appeal in any adverse challenge decision.
4. Submission of an Appeal of an Inventory Challenge Decision.
Upon receipt of an adverse inventory challenge decision, an interested party
shall have 10 working days to submit a written appeal of this decision to
inventory appeal authorities.
5. Inventory Appeal Decision. Within 10 working days of
receipt of the appeal, inventory appeal authorities shall issue and transmit
a written inventory appeal decision to the interested party. This inventory
appeal decision shall include the rationale for the decision.
6. Inventory Changes. When the inventory challenge process
results in a change to an agency inventory, the agency shall (a) transmit
a copy of the change to OMB and Congress; (b) make these changes available
to the public; and (c) publish a notice of public availability in the
Federal Register.
Attachment
B
PUBLIC-PRIVATE
COMPETITION
A. PRELIMINARY PLANNING. Before the public announcement
(start date) of a streamlined or standard competition, an agency shall
complete, at a minimum, the following steps:
1. Scope. Determine the activities and full time equivalent
(FTE) positions to be competed.
2. Grouping. Conduct preliminary research to determine
the appropriate grouping of activities as business units (e.g., consistent
with market and industry structures).
3. Workload Data and Systems. Assess the availability of
workload data, work units, quantifiable outputs of activities or processes,
agency or industry performance standards, and other similar data. Establish
data collection systems as necessary.
4. Baseline Costs. Determine the activity’s baseline
costs as performed by the incumbent service provider.
5. Type of Competition. Determine the use of a streamlined
or standard competition.
a.
An agency shall use a standard competition if, on the start date, a
commercial activity is performed by:
(1) The agency with an aggregate of more than 65 FTEs;
or
(2) A private sector or public reimbursable source and
the agency tender will include an aggregate of more than 65 FTEs.
b.
An agency shall use either a streamlined or standard competition if,
on the start date, a commercial activity is performed by:
(1) The agency with an aggregate of 65 or fewer FTEs
and/or any number of military personnel; or
(2) A private sector or public reimbursable source and
the agency cost estimate (for a streamlined competition) or the agency
tender (for a standard competition) will include an aggregate of 65 or
fewer FTEs.
6. Schedule. Develop preliminary competition and completion
schedules.
7. Roles and Responsibilities of Participants. Determine
roles and responsibilities of participants in the process and their availability
for the duration of the streamlined or standard competition.
8. Competition Officials. Appoint competition officials.
The CSO shall appoint competition officials for each standard competition,
and, as appropriate, may appoint competition officials for streamlined competitions.
The CSO shall appoint all competition officials, in writing, and shall hold
these competition officials accountable for the timely and proper conduct
of streamlined or standard competitions through the use of annual performance
evaluations.
a.
Agency Tender Official (ATO). The ATO shall (1) be an inherently
governmental agency official with decision-making authority; (2) comply
with this circular; (3) be independent of the contracting officer (CO),
source selection authority (SSA), source selection evaluation board
(SSEB), and performance work statement (PWS) team; (4) develop, certify,
and represent the agency tender; (5) designate the most efficient organization
(MEO) team after public announcement of the standard competition; (6)
provide the necessary resources and training to prepare a competitive
agency tender; and (7) be a directly interested party. An agency shall
ensure that the ATO has access to available resources (e.g., skilled
manpower, funding) necessary to develop a competitive agency tender.
b.
Contracting Officer (CO). The CO shall (1) be an inherently
governmental agency official; (2) comply with both the FAR and this
circular; (3) be independent of the ATO, human resource advisor (HRA),
and MEO team; and (4) be a member of the PWS team.
c.
PWS (Performance Work Statement) Team Leader. The PWS team
leader shall (1) be an inherently governmental agency official; (2)
comply with both the FAR and this circular; (3) be independent of the
ATO, HRA and MEO team; (4) develop the PWS and quality assurance surveillance
plan; (5) determine government-furnished property (GFP); (6) assist
the CO in developing the solicitation; and (7) assist in implementing
the performance decision.
d.
Human Resource Advisor (HRA). The HRA shall (1) be an inherently
governmental agency official and a human resource expert; (2) comply
with this circular; (3) be independent of the CO, SSA, PWS team, and
SSEB; (4) participate on the MEO team; and (5) be responsible for the
following:
(1) Employee and Labor-Relations Requirements. The HRA
shall, at a minimum, perform the following (a) interface with directly
affected employees (and their representatives) from the date of public
announcement until full implementation of the performance decision; (b)
identify adversely affected employees; (c) accomplish employee placement
entitlements in accordance with 5 C.F.R. Part 351 (reduction-in-force
procedures); (d) provide post-employment restrictions to employees; (e)
determine agency priority considerations for vacant positions and establish
a reemployment priority list(s) in accordance with 5 C.F.R. Part 330;
and (f) provide the CO with a list of the agency’s adversely affected
employees, as required by this attachment and FAR 7.305(c) regarding the
right of first refusal for a private sector performance decision.
(2) MEO Team Requirements. The HRA shall assist the ATO
and MEO team in developing the agency tender. During development of the
agency tender, the HRA shall be responsible for (a) scheduling sufficient
time in competition milestones to accomplish potential human resource
actions in accordance with 5 C.F.R. Part 351; (b) advising the ATO and
MEO team on position classification restrictions; (c) classifying position
descriptions, including exemptions based on the Fair Labor Standards Act
(d) performing labor market analysis to determine the availability of
sufficient labor to staff the MEO and implement the phase-in plan; (e)
assisting in the development of the agency cost estimate by providing
annual salaries, wages, night differentials, and premium pay; (f) assisting
in the development of the timing for the phase-in plan based on MEO requirements;
and (g) developing an employee transition plan for the incumbent agency
organization early in the standard competition process.
e.
Source Selection Authority (SSA). The SSA shall (1) be an inherently
governmental agency official appointed in accordance with FAR Part 15.303;
(2) comply with both the FAR and this circular when performing a streamlined
and standard competition; and (3) be independent of the ATO, HRA, and
MEO team. The SSA shall not appoint an SSEB until after public announcement.
9. Incumbent Service Providers. Inform any incumbent service
providers of the date that the public announcement will be made.
B.
PUBLIC ANNOUNCEMENTS.
1. Start Date (Public Announcement Date). An agency shall
make a formal public announcement (at the local level and via FedBizOpps.gov)
for each streamlined or standard competition. The public announcement shall
include, at the minimum, the agency, agency component, location, type of
competition (streamlined or standard), activity being competed, incumbent
service providers, number of government personnel performing the activity,
name of the CSO, name of the contracting officer, name of the ATO, and projected
end date of the competition. The public announcement date is the official
start date for a streamlined or standard competition.
2. End Date (Performance Decision Date). An agency shall
make a formal public announcement (at the local level and via FedBizOpps.gov)
of the streamlined or standard competition performance decision. The performance
decision date is the official end date for a streamlined or standard competition.
The end date of a streamlined competition shall be the date that all SLCF
certifications are complete, signifying a performance decision. The end
date of a standard competition shall be the date that all SCF certifications
are complete, signifying a performance decision.
3. Cancellations.
a.
Cancellation of a Streamlined or Standard Competition. The
CSO (without delegation) may approve, in writing, the cancellation of
a streamlined or standard competition. After approval by the CSO, the
CO shall publish a cancellation notice that includes rationale for the
cancellation at FedBizOpps.gov and the HRA shall notify directly
affected employees and their representatives of the cancellation. No
cancellation is necessary prior to public announcement of a streamlined
or standard competition.
b.
Cancellation of a Solicitation. The CO shall be responsible
for canceling a solicitation in accordance with the FAR, and shall publish
a cancellation notice at FedBizOpps.gov. The HRA shall notify
directly affected employees and their representatives of the cancellation.
The cancellation of a solicitation does not result in the cancellation
of a streamlined or standard competition.
C.
STREAMLINED COMPETITION PROCEDURES.
1. Streamlined Competition Form (SLCF). After public announcement,
an agency shall calculate, compare, and certify costs based upon the scope
and requirements of the activity to determine and document a cost-effective
performance decision by completing the SLCF as follows:
a.
Cost of Agency Performance. An agency shall calculate and certify
the cost of performing the activity with government personnel in accordance
with Attachment C for a minimum of three performance periods by completing
SLCF Lines 1, 2, 3 (limited to awarded contracts supporting agency performance
of the activity), 4, and 6. An agency may base the agency cost estimate
on the incumbent activity; however, an agency is encouraged develop
a more efficient organization, which may be an MEO.
b.
Cost of Private Sector/Public Reimbursable Performance. An
agency shall determine an estimated contract price for performing the
activity with a private sector source, using documented market research
or soliciting cost proposals in accordance with the FAR. An agency may
also determine an estimated cost for performing the activity with a
public reimbursable source by calculating (or requesting that a public
reimbursable source calculate) SLCF Lines 1a, 2a, 3a (limited to awarded
contracts), 4a, and 6a. An agency shall enter and certify an estimated
contract price or public reimbursable cost on SLCF Line 7 in accordance
with Attachment C for a minimum of three performance periods.
c.
Adjusted Cost Estimate. An agency shall calculate and certify
the adjusted costs for SLCF Lines 8, 12, 13, and 17 to determine and
certify a cost effective source as reflected on SLCF Line 18 in accordance
with Attachment C. An agency shall not calculate any other SLCF lines
for a streamlined competition.
d.
Cost Estimate Firewalls. An agency shall ensure that the individual(s)
preparing the agency cost estimate and the individual(s) preparing the
private sector/public reimbursable cost estimate shall be different,
and shall not share information concerning their respective estimates.
2. Time Limit. A streamlined competition shall not exceed
90 calendar days from public announcement (start date) to performance decision
(end date) unless the CSO grants a time limit waiver. Before the public
announcement of each streamlined competition, the CSO may grant a time limit
waiver, in writing, allowing a specific streamlined competition to exceed
the 90 day time limit by no more than 45 calendar days, for a maximum of
135 calendar days from public announcement (start date) to performance decision
(end date). The CSO may only grant a time limit waiver if the CSO expects
the agency to create an MEO or issue a solicitation for private sector offers.
If an agency cannot complete an announced streamlined competition within
the time limit, the agency shall either convert the streamlined competition
to a standard competition or request an additional extension of time from
OMB using the deviation procedure in paragraph 5.c. of this circular.
3. Performance Decision in a Streamlined Competition.
a.
SLCF Certifications. An agency shall make three certifications
on the SLCF in accordance with Attachment C to determine a performance
decision. A different individual shall make each of these certifications.
b.
SLCF Review. Consistent with procurement integrity, ethics,
and standards of conduct rules, including the restrictions of 18 U.S.C.
§ 208, agencies shall allow incumbent service providers to review
the SLCF prior to the public announcement of a performance decision.
c.
Public Announcement. The agency shall make a formal public
announcement (at the local level and via FedBizOpps.gov) of
the performance decision. The SLCF shall be made available to the public,
upon request. If the agency cost estimate includes any support contracts,
the agency shall not release proprietary information contained in these
contracts.
d.
Implementing the Streamlined Performance Decision. An agency
shall implement the performance decision resulting from a streamlined
competition as follows:
(1) Private Sector or Public Reimbursable Performance
Decision. The CO may issue a solicitation to determine a private sector
or public reimbursable service provider. For a private sector performance
decision, the CO shall award a contract in accordance with the FAR and
shall implement FAR 7.305(c), the right of first refusal. For a public
reimbursable performance decision, the CO shall execute a fee-for-service
agreement with the public reimbursable source.
(2) Agency Performance Decision. The CO shall execute
a letter of obligation with an official responsible for performing the
commercial activity.
D.
STANDARD COMPETITION PROCEDURES.
1. Time Limit. A standard competition shall not exceed
12 months from public announcement (start date) to performance decision
(end date) unless the CSO (without delegation) grants a time limit waiver.
Before the public announcement of each standard competition, the CSO may
grant a time limit waiver, in writing, allowing a specific standard competition
to exceed the 12 month time limit by no more than 6 months, for a maximum
of 18 months from public announcement (start date) to performance decision
(end date). The CSO may only grant a time limit waiver if the CSO (a) expects
the standard competition to be particularly complex; (b) signs the time
limit waiver before public announcement; and (c) provides a copy of the
time limit waiver to the Deputy Director for Management, OMB, before public
announcement. If an agency exceeds these time limits, including any extension
that is the subject of the CSO’s waiver, the CSO (without delegation)
shall notify the Deputy Director for Management, OMB, in writing.
2. Team Designations, Responsibilities, and Restrictions.
a.
Performance Work Statement (PWS) Team. After public announcement,
the PWS team leader shall appoint a PWS team comprised of technical
and functional experts. The PWS team shall comply with the FAR and this
circular, and assist the PWS team leader with (1) developing the PWS
including supporting workload data, performance standards, and any information
relating to the activity being competed; (2) determining GFP; (3) assisting
in the CO’s development of the solicitation; (4) developing a
quality assurance surveillance plan and, as required, updating this
plan based on the performance decision; and (7) implementing the performance
decision. The PWS team leader shall make all final management decisions
regarding the PWS, GFP, and the quality assurance surveillance plan.
Other individuals with expertise in management analysis, work measurement,
value engineering (see OMB Circular A-131), industrial engineering,
cost analysis, procurement, and the technical aspects of the activity
may also assist this team. Directly affected government personnel (and
their representatives) may participate on the PWS team; however, to
avoid any appearance of a conflict of interest, members of the PWS team
(including, but not limited to, advisors and consultants) shall not
be members of the MEO team.
b.
Most Efficient Organization (MEO) Team. After public announcement,
the ATO shall appoint an MEO team comprised of technical and functional
experts. The MEO team shall comply with this circular and assist the
ATO in developing the agency tender. The ATO shall make all final management
decisions regarding the agency tender. Other individuals with expertise
in management analysis, position classification, work measurement, value
engineering (see OMB Circular A-131), industrial engineering, cost analysis,
procurement, and the technical aspects of the activity may also assist
this team. Directly affected government personnel (and their representatives)
may participate on the MEO team; however, to avoid any appearance of
a conflict of interest, members of the MEO team (including, but not
limited to, the ATO, HRA, advisors and consultants) shall not be members
of the PWS team.
c.
Source Selection Evaluation Board (SSEB). After public announcement
of a standard competition that will be a negotiated procurement, the
SSA shall appoint an evaluation team (referred to as the SSEB) in accordance
FAR Subpart 15.303. The SSA shall ensure that the SSEB complies with
the source selection requirements of the FAR and this attachment. PWS
team members who are not directly affected government personnel may
participate on the SSEB. Directly affected personnel (and their representatives)
and any individual (including, but not limited to, the ATO, HRA, MEO
team members, advisors, and consultants) with knowledge of the agency
tender (including the MEO and agency cost estimate) shall not participate
in any manner on the SSEB (e.g., as members or advisors).
3. The Solicitation and Quality Assurance Surveillance Plan.
a.
Solicitation. An agency shall not issue a solicitation that
places any prospective provider at an unfair competitive advantage.
When developing and issuing a solicitation for a standard competition,
the CO shall comply with the FAR and the following:
(1) Review and Release of Information. An agency is encouraged
to post a draft of the PWS or solicitation for public review and comment,
including review and comment by directly affected employees and representatives
of directly affected employees. All releases of the PWS and solicitation,
including drafts, shall be by the CO. Information that is developed by
the ATO or MEO team shall be considered procurement sensitive. With the
exception of information related to the performance or productivity of
the incumbent agency organization, historical data or other existing information
that is available to the ATO or MEO team shall be made available to all
prospective providers.
(2) FAR Provisions. The CO, in consultation with the
PWS team, shall determine the acquisition strategy in accordance with
FAR Part 7, which may include the use of FAR Parts 6, 14, 15, or 36. When
the agency is the incumbent service provider, the CO shall comply with
FAR 7.305(c) regarding the right of first refusal. The CO shall comply
with FAR Subpart 22.10 to obtain the applicable wage determinations from
the Department of Labor.
(3) Acquisition Process and Source Selection Provisions.
The CO shall identify in the solicitation whether the acquisition procedures
will be sealed bid or negotiated procedures. If negotiated procedures
will be used, the CO shall identify in the solicitation the type of source
selection process (i.e., lowest price technically acceptable, phased evaluation,
tradeoff).
(a)
Evaluation Factors. All evaluation factors shall be clearly
identified in the solicitation. To the extent practicable, evaluation
factors shall be limited to commonly used factors (e.g., a demonstrated
understanding of the government’s requirements, technical approach,
management capabilities, personnel qualifications, manufacturing plan,
facilities and equipment). No solicitation shall include evaluation
factors that could provide an unfair advantage for or inherently benefit
a prospective provider, public or private.
(b)
Tradeoff Source Selection Solicitation Provisions. For tradeoff
source selections, the solicitation shall identify the specific weight
given evaluation factors and sub-factors, including cost or price.
The specific weight given to cost or price shall be at least equal
to all other evaluation factors combined unless quantifiable performance
measures can be used to assess value and can be independently evaluated.
The quality of competition will be enhanced by using, to the extent
practicable, evaluation factors and sub-factors susceptible to objective
measurement or evaluation. To encourage prospective providers to submit
offers and tenders that fall within budgetary constraints, an agency
may include a not-to-exceed cost clause in the solicitation.
(4) Solicitation Provisions Unique to the Agency Tender.
A solicitation shall state that the agency tender is not required to include
(a) a labor strike plan; (b) a small business strategy; (c) a subcontracting
plan goal; (d) participation of small disadvantaged businesses; (e) licensing
or other certifications; and (f) past performance information (unless
the agency tender is based on an MEO that has been implemented in accordance
with this circular or a previous OMB Circular A-76).
(5) Solicitation Closing Date. The date for delivery
of offers and tenders shall be the same.
(6) Compliance Matrix. To decrease the complexity of
performing source selections, the CO may include a cross-reference compliance
matrix in section L of the solicitation (see Figure B3. below). A compliance
matrix should clearly identify proposal reference information as it relates
to the PWS, contract line item numbers (CLIN), solicitation sections L
and M, proposal volume and section, and, if appropriate, contract data
requirements list (CDRL) references. This matrix should be modified to
account for proposed performance standards that differ from the requirements
in a solicitation.
(7) Performance Periods. An agency shall use a minimum
of three full years of performance, excluding the phase-in period, in
a standard competition. An agency shall not use performance periods for
the agency tender that differ from performance periods for private sector
offers and public reimbursable tenders. The CSO shall obtain prior written
approval from OMB to use performance periods that exceed five years (excluding
the phase-in period).
(8) Government-Furnished Property (GFP). The PWS team
shall be responsible for determining whether the agency will make government
property available to all prospective providers. Agency determinations
to provide or not provide GFP shall be justified, in writing, and approved
by the CSO. Consistent with FAR 45.102 and FAR Subpart 45.3, solicitations
may offer the use of existing government facilities and equipment and
may make such use mandatory. The determination to provide government property
shall not be used to influence the outcome of the competition. The ATO,
MEO team, and any individual assisting in the development of the agency
tender, shall not be involved in the determination to provide GFP.
(9) Common Costs. The CO shall identify common costs
in the solicitation.
(10) Performance Bond. If an agency requires a private
sector source to include a performance bond, the CO shall obtain prior
written approval from the CSO. The CO shall include in the solicitation
a separate CLIN for the cost of the performance bond. The CO shall exclude
the cost of the performance bond from the contract price before entering
the contract price on SCF Line 7.
(11) Incentive Fee. In a solicitation for an incentive
fee contract, the CO shall require the private sector offeror to propose
a target cost and target profit or fee. The CO shall include the target
cost and target profit or fee on SCF Line 7.
(12) Award Fee. For solicitations with an award fee for
all prospective providers, including the agency tender, the CSO shall
determine if procedures are in place permitting an agency tender to receive
such an award fee.
(13) Phase-in Plan. The CO shall include in the solicitation
a separate CLIN for a phase-in plan. Private sector, public reimbursable
and agency sources shall propose a phase-in plan to replace the incumbent
service provider. The CO shall designate the phase-in period as the first
performance period (see Attachment C). The CLIN is limited to the phase-in
costs associated with phase-in actions as documented in the phase-in plan.
Phase-in plans shall include details to minimize disruption and start-up
requirements. The phase-in plan shall consider recruiting, hiring, training,
security limitations, and any other special considerations of the prospective
providers to reflect a phase-in period of realistic length and requirements.
(14) Quality Control Plan. The CO shall include in the
solicitation a requirement for prospective providers to include a quality
control plan in offers and tenders.
b.
Quality Assurance Surveillance Plan. The PWS team shall develop
the quality assurance surveillance plan, which identifies the methods
the government will use to measure the performance of the service provider
against the requirements of the PWS.
c.
Competition File. An agency shall retain the documents created
for the standard competition. This competition file shall be included
in the government contract files in accordance with FAR Subpart 4.8,
regardless of the performance decision.
4. The Agency Tender, Private Sector Offers, and Public Reimbursable
Tenders.
a.
Agency Tender. The agency tender is the agency’s response
to the solicitation.
(1) Developing the Agency Tender. The ATO shall develop
an agency tender that responds to the requirements of the solicitation,
including section L (Instructions, Conditions, and Notices to Offerors
or Respondents) and section M (Evaluation Factors for Award). In addition
to the requirements of the solicitation, the agency tender shall include
the following (a) an MEO; (b) a certified agency cost estimate developed
in accordance with Attachment C (the agency’s cost proposal); (c)
the MEO’s quality control plan; (d) the MEO’s phase-in plan;
and (e) copies of any existing, awarded MEO subcontracts (with the private
sector providers’ proprietary information redacted). The ATO shall
provide the certified agency tender in a sealed package to the CO by the
solicitation closing date. If the solicitation states that prospective
providers may propose alternate performance standards that differ from
the solicitation’s performance standards, the ATO may propose alternate
performance standards in the agency tender.
(a)
Most Efficient Organization (MEO). The MEO is an agency’s
staffing plan as identified in the agency tender. The MEO is not usually
a representation of the incumbent organization, but is the product
of management analyses that include, but are not limited to, activity
based costing, business case analysis, consolidation, functionality
assessment, industrial engineering, market research, productivity
assessment, reengineering, reinvention, utilization studies, and value
engineering. The HRA shall develop and classify new position descriptions
based on the MEO, but the agency shall not hire employees to staff
these positions unless the agency is the selected provider. An MEO
may be comprised of either (1) government personnel or (2) a mix of
government personnel and MEO subcontracts (see Attachment D). Agencies
shall not include new MEO subcontracts that would result in the direct
conversion of work performed by government employees. Other elements
of the MEO include an organization chart reflecting the MEO; position
descriptions classified by the HRA for positions projected to be in
the MEO; a description of the organization that will execute the quality
control plan; MEO equipment, supplies, material, and facilities; and
specific details of MEO subcontracts.
(b)
Agency Cost Estimate. The ATO shall develop and certify the
agency cost estimate (the agency’s cost proposal) in accordance
with Attachment C, using the COMPARE costing software. The ATO shall
not make changes to the agency cost estimate except as provided in
paragraph, “Changes to the Agency Tender,” below.
(c)
Quality Control Plan. The ATO shall include a quality control
plan in the agency tender, as required by the solicitation. The quality
control plan shall, at a minimum, include (1) an MEO self-inspection
plan; (2) MEO internal staffing (which shall be included in the agency
cost estimate for personnel costs on SCF Line 1); and (3) procedures
that the MEO will use to meet the quality, quantity, timeliness, responsiveness,
customer satisfaction, and other requirements of the solicitation.
(d)
Phase-in Plan. The ATO shall include a phase-in plan in the
agency tender, as required by the solicitation, to replace the incumbent
service provider with the MEO, even if the agency is the incumbent
service provider. The ATO shall include phase-in costs for the agency
tender on SCF Lines 1-6.
(2) Submission of the Agency Tender. The ATO shall deliver
the agency tender to the CO in a sealed package by the solicitation closing
date. If the ATO does not anticipate submitting the agency tender to the
CO by the solicitation closing date, the ATO shall notify the CO as soon
as possible before the solicitation closing date. The CO, in consultation
with the CSO, shall determine if amending the solicitation closing date
is in the best interest of the government.
(3) Changes to the Agency Tender. After the solicitation
closing date, only the ATO may make changes to the agency tender, and
such changes shall only be in response to the following (a) a solicitation
amendment issued in accordance with the FAR; (b) the CO’s request
for final proposal revisions to offers and tenders in accordance with
FAR 15.307; (c) official changes to the standard cost factors identified
in Attachment C; (d) version upgrades to the COMPARE costing software
issued by the Department of Defense; or (e) resolution of a contest challenging
a performance decision as provided by this attachment. The CO shall retain
documentation regarding any changes to the agency tender as part of the
competition file and in a form suitable for audit.
(4) Procurement Sensitivity. After resolution of a contest
(see paragraph on “Release of the Certified SCF and Tenders”
in this attachment), or the expiration of the time for filing a contest,
an agency tender shall be made available to the public, upon request.
If an agency tender includes any subcontracts, the agency shall not release
proprietary information contained in these MEO subcontracts.
b.
Private Sector Offers. Private sector offers respond as required
by the solicitation.
c.
Public Reimbursable Tenders. When responding to another agency’s
solicitation, a public reimbursable source shall develop a public reimbursable
tender that responds to the requirements of the solicitation, including
section L (Instructions, Conditions, and Notices to Offerors or Respondents)
and section M (Evaluation Factors for Award). In addition to the requirements
of the solicitation, the public reimbursable tender shall include the
following (1) a certified cost estimate developed in accordance with
Attachment C (the public reimbursable source’s cost proposal);
(2) a quality control plan, (3) a phase-in plan, and (4) copies of any
existing, awarded contracts that are included in the tender (with the
private sector provider’s proprietary information redacted). A
public reimbursable tender may be comprised of either (1) government
personnel or (2) a mix of government personnel and existing, awarded
contracts. Submission of, and changes to, a public reimbursable tender,
as well as the procurement sensitivity of the public reimbursable tender,
shall be subject to the corresponding provisions of this attachment
applicable to the agency tender (see above).
d.
No Satisfactory Private Sector or Public Reimbursable Source.
If an agency attempts to perform a standard competition, but does not
receive private sector offers or public reimbursable tenders, determines
that all offers and public reimbursable tenders are non-responsive,
or determines that prospective providers are not responsible, the agency
shall take the following actions:
(1) Determine Reasons. The CO shall consult with private
sector sources to identify (a) restrictive, vague, confusing, or misleading
portions of the solicitation; (b) the reasons provided by sources for
not submitting responses; and (c) possible revisions to the solicitation
to enhance competition. The CO shall, in writing, describe the results
of these consultations and propose a course of action to the CSO.
(2) Required Action. The CSO shall evaluate the CO’s
written documentation and make a written determination to either (a) revise
the solicitation or (b) implement the agency tender. If revising a solicitation
would result in exceeding the established time limit for the standard
competition, the CSO (without delegation) shall consult with the Deputy
Director for Management, OMB. The CO’s written documentation, as
well as the CSO’s decision to either revise the solicitation or
implement the agency tender, shall be retained as part of the competition
file.
(a)
Revise the Solicitation. Before revising or reissuing the
solicitation, the CO shall return the sealed agency tender to the
ATO. The CO shall then revise and reissue the solicitation.
(b)
Implement the Agency Tender. If the CSO decides to implement
the agency tender, the CO shall proceed to evaluate the agency tender
as required by this attachment and the solicitation. The agency shall
complete the SCF, leaving Line 7 blank, omit the costs on lines 8-12
and annotate “agency” on Line 18. The SSA shall state,
in the certification on the SCF, that the CSO implemented the agency
tender because (1) the agency received no offers or tenders in response
to the solicitation; (2) no offers or tenders received were responsive;
or (3) no prospective providers were responsible. The SSA and CO shall
sign the SCF to certify the performance decision and retain the SCF
and agency tender with the competition file. The agency shall make
a public announcement of the performance decision (at the local level
and via FedBizOpps.gov). The CO shall make the SCF (including
the documentation of no satisfactory private sector source) available
to the public, upon request. The CO shall notify the ATO of the performance
decision and the HRA shall notify directly affected employees (and
their representatives).
5. The Source Selection Process and Performance Decision.
An agency shall select one of the procedures described below to conduct
a standard competition and shall not employ any other procedure in conducting
the standard competition.
a.
Sealed Bid Acquisition. An agency shall conduct a sealed bid
acquisition in accordance with FAR Subparts 14.1 through 14.4 and this
attachment. On the solicitation closing date, the CO shall open the
agency tender, private sector bids, and public reimbursable tenders.
The CO shall enter the price of the apparent lowest priced private sector
bid or public reimbursable tender on SCF Line 7, to complete the SCF
calculations. The CO shall then evaluate private sector bids for responsiveness
and responsibility in accordance with the FAR and determine if SCF Lines
8-18 have been prepared in accordance with Attachment C. The CO shall
certify the SCF in accordance with Attachment C. The CO makes the performance
decision by certifying the SCF.
b.
Negotiated Acquisition.
(1) Lowest Price Technically Acceptable Source Selection.
An agency shall conduct a lowest price technically acceptable source selection
in accordance with FAR 15.101-2 and this attachment. During the source
selection process, the CO shall open and evaluate all offers and tenders
(including the agency tender) to determine technical acceptability. The
performance decision shall be based on the lowest cost of all offers and
tenders determined to be technically acceptable. The CO shall conduct
price analysis and cost realism as required by this attachment. The CO
may conduct exchanges, in accordance with FAR Subpart 15.306 and this
attachment, to determine the technical acceptability of each offer and
tender. The CO shall enter the lowest contract price or public reimbursable
cost on SCF Line 7 to complete the SCF calculations. The CO shall sign
the SCF, and the SSA shall certify the SCF, in accordance with Attachment
C. The SSA makes the performance decision by certifying the SCF.
(2) Phased Evaluation Source Selection Process. An agency
shall conduct a phased evaluation source selection in accordance with
FAR Part 15 and this attachment. In the phased evaluation process, an
agency shall evaluate technical capability in phase one and cost in phase
two. The performance decision shall be based on the lowest cost of all
technically acceptable offers and tenders from all offerors, public reimbursable
sources, and the ATO. The solicitation shall require the submission of
complete offers and tenders, including separate technical proposals and
cost proposals/estimates, by the solicitation closing date. The solicitation
shall permit submission of alternate performance standards that differ
from the solicitation’s performance standards. To differentiate
between the alternate standards and the solicitation’s standards,
the solicitation shall require that offers and tenders include a compliance
matrix specifying (a) the alternate performance standards; (b) an explanation
of how the alternate standards differ from the solicitation standards;
(c) the cost of meeting each alternate standard; (d) the cost difference
between the alternate and solicitation standard; (e) a cost-benefit analysis
explaining the rationale for each alternate standard; and (f) proposed
language to include alternate performance standards in an amended solicitation.
If the agency receives no alternate performance standards, or does not
accept any of the alternate standards, then the SSA shall determine a
performance decision based on the solicitation’s performance standards.
(a)
Phase One. In phase one, the CO shall open and evaluate the
technical proposals (submitted by private sector offerors, public
reimbursable sources, and the ATO). The CO shall not open or evaluate
agency or public reimbursable cost estimates or private sector price
proposals during phase one. The CO may conduct exchanges, in accordance
with FAR Subpart 15.306 and this attachment, to determine the technical
acceptability of each offer and tender. If an agency receives offers
and tenders that include alternate performance standards, the CO shall
(1) evaluate each alternate performance; (2) consider the discrete
cost or price difference associated with the alternate standard; (3)
determine, in consultation with the requiring activity, whether an
alternate standard is necessary and, if so, within the agency’s
budget limitations; and (4) document, in writing, the evaluation of
each alternate performance standard. If the SSA accepts an alternate
performance standard, the CO shall issue an amendment to the solicitation
to (1) identify the specific change to the solicitation’s performance
standard, without conveying proprietary information about technical
approaches or solutions to meet the new performance standard; and
(2) request the resubmission of offers and tenders in response to
the amended solicitation. Upon receiving revisions to offers and tenders,
the CO may conduct exchanges, in accordance with FAR Subpart 15.306
and this attachment, to determine the technical acceptability of each
offer and tender.
(b)
Phase Two. In phase two, the CO shall perform price analysis
and cost realism of private sector cost proposals, public reimbursable
cost estimates, and the agency cost estimate, in accordance with this
attachment, on all offers and tenders determined to be technically
acceptable at the conclusion of phase one. The CO then shall enter
the lowest contract price or public reimbursable cost on SCF Line
7 to complete the SCF calculations. The SSA shall certify the SCF
and the CO shall sign the SCF in accordance with Attachment C. The
SSA shall make the performance decision by certifying the SCF, which
is the performance decision document.
(3) Tradeoff Source Selection Process. A tradeoff source
selection may be appropriate in a standard competition when an agency
wishes to consider award to other than the lowest priced source. An agency
may use the tradeoff processes under FAR Subpart 15.101-1 in a standard
competition of (a) information technology activities (as defined in Attachment
D); (b) commercial activities performed by a private sector source; (c)
new requirements; or (d) segregable expansions. An agency also may use
a tradeoff source selection process for a specific standard competition
if prior to the public announcement of the competition, the CSO (without
delegation) (a) approves, in writing, the use of the tradeoff source selection
process; and (b) notifies OMB of the approval by forwarding a copy of
the written approval. An agency shall not use a tradeoff source selection
process for activities currently performed by government personnel except
as provided in this paragraph. When an agency uses a tradeoff source selection
process in a standard competition, an agency shall comply with FAR Part
15 unless otherwise noted in this attachment. Under a tradeoff source
selection process, an agency may select an offer or tender that is not
the lowest priced offer or tender only if the decision is within the agency’s
budgetary limitation. An agency shall not use a tradeoff source selection
to justify increases in the agency’s budgetary authorization. Prospective
providers may propose alternate performance standards that differ from
the solicitation’s performance standards. The CO shall conduct price
analysis and cost realism as required by this attachment. The CO may conduct
exchanges, in accordance with FAR Subpart 15.306 and this attachment.
The CO’s rationale for tradeoffs shall be (a) documented, in writing;
(b) attached to the SCF; and (c) retained with the competition file for
the standard competition. The CO shall enter the contract price and public
reimbursable cost estimate, for each offer and tender determined to be
technically acceptable, on SCF Line 7. The CO then shall sign the SCF.
The SSA may decide to award to the low-cost provider, or other than the
low-cost provider, as follows:
(a)
Low Cost Performance Decision. For a decision to award to
the low-cost provider, the SSA shall certify the SCF in accordance
with Attachment C. The SSA makes the performance decision by certifying
the SCF, which is the performance decision document.
(b)
Other Than Low Cost Performance Decision. For a decision
to award to other than the low-cost provider, the SSA shall certify
the SCF, in accordance with Attachment C, and shall document the following
on the SCF (1) a summary of the source selection decision document;
(2) a narrative explanation of the tradeoffs performed; and (3) a
rationale for the decision to award to other than the low-cost provider.
The SSA makes the performance decision by certifying the SCF. The
SCF, combined with the source selection decision document, is the
performance decision document.
c.
Special Considerations.
(1) Evaluation of Private Sector Offers, Public Reimbursable Tenders,
and Agency Tender. The CO shall not evaluate the private sector
offers separately from the agency tender. The CO, SSA, and SSEB shall
not (a) convey, require, make, direct, or request adjustments to a tender
or offer that would identify any proprietary or procurement sensitive
information from another offer or tender; or (b) require, direct, or make
specific changes to an offer or tender, including the approach and staffing
requirements (e.g., adding a specific number of employee positions to
the MEO). The CO shall ensure that oral presentations do not provide an
unfair advantage for or inherently benefit a prospective provider, public
or private.
(2) Exchanges with Private Sector, Public Reimbursable, and Agency
Sources. If the CO conducts exchanges with private sector offerors,
public reimbursable sources, and the ATO, during the course of the standard
competition, those exchanges shall be in accordance with FAR 15.306, with
the following exceptions. For an agency tender, the CO shall correspond
with the ATO, in writing, and shall maintain records of all such correspondence
as part of the competition file. The CO and ATO shall include clear, sufficient,
and unambiguous information in the correspondence to adequately convey
concerns, responses, or information regarding the agency tender.
(3) Deficiencies in an Offer or Tender. If the CO perceives
that a private sector offer, public reimbursable tender, or agency tender
is materially deficient, the CO shall ensure that the ATO, private sector
offeror, or the public reimbursable tender official receives a deficiency
notice. The CO shall afford the ATO, the private sector offeror, or the
public reimbursable tender official a specific number of days to address
the material deficiency and, if necessary, to revise and recertify the
tender or offer. If the ATO is unable to correct the material deficiency,
the CSO shall determine if a commitment of additional resources will enable
the ATO to correct the material deficiency within the specified number
of days. If the CSO determines that the ATO cannot correct the material
deficiency with a reasonable commitment of additional resources, the CSO
may advise the SSA to exclude the agency tender from the standard competition.
If the CO determines that a private sector offeror or public reimbursable
tender official has not corrected a material deficiency, the SSA may exclude
the private sector offer or public reimbursable tender from the standard
competition. If the agency tender is excluded from the standard competition,
an agency shall calculate the SCF as required by Attachment C and the
SSA shall make the performance decision based upon the source selection
decision document and shall document the reason for elimination of the
agency tender on the SCF.
(4) Price Analysis and Cost Realism of Private Sector Cost Proposals,
Public Reimbursable Cost Estimates and Agency Cost Estimates.
(a)
General. Regardless of the contract type stated in the solicitation,
the CO shall perform price analysis and cost realism (as defined in
FAR Part 2) on all private sector cost proposals, public reimbursable
cost estimates (SCF Lines 1a-6a), and the agency cost estimate (SCF
Lines 1-6). Cost analysis (in accordance with FAR Part 15) is not
required for a standard competition but may be performed at the discretion
of the SSA.
(b)
Agency and Public Reimbursable Cost Estimates. The CO shall
ensure that the agency and public reimbursable cost estimates (1)
are calculated in accordance with Attachment C; (2) are based on the
standard cost factors in effect on the performance decision date;
and (3) use the version of the COMPARE costing software that is in
effect on the performance decision date.
(c)
Conversion Differential. All standard competitions shall
include the conversion differential. The CO shall ensure that the
conversion differential is calculated in accordance with Attachment
C and reflected on SCF Line 14. The conversion differential is a cost
that is the lesser of 10 percent of the MEO’s personnel-related
costs (reflected on SCF Line 1) or $10 million over all the performance
periods stated in the solicitation. This conversion differential is
added to the cost of performance by a non-incumbent source.
If the incumbent provider is a private sector or public reimbursable
source, the conversion differential is added to the cost of agency
performance. If the agency is the incumbent provider, the conversion
differential is added to the cost of private sector or public reimbursable
performance. The conversion differential precludes conversions based
on marginal estimated savings, and captures non-quantifiable costs
related to a conversion, such as disruption and decreased productivity.
(d)
SCF Overview. As part of the requirement to conduct price
analysis and cost realism, the CO shall ensure that the SCF has been
prepared in accordance with Attachment C and that the required signatures
and certifications are on the SCF. Figure B4. provides an overview
of the detailed guidance for developing the agency and public reimbursable
cost estimates in Attachment C.
6. Performance Decision in a Standard Competition.
a.
Certification. To certify a performance decision in a standard
competition, the SSA and CO shall sign the SCF.
b.
End Date. The end date of a standard competition shall be the
date that all SCF certifications are complete, signifying a performance
decision. An agency shall not make any changes (including corrections)
to the SCF, agency tender, or public reimbursable tender after this
date, except in response to a contest under paragraph F of this Attachment.
c.
Public Announcement of the Performance Decision. An agency
shall make a formal public announcement (at the local level and via
FedBizOpps.gov) of the performance decision. In the announcement
of a performance decision for a sealed bid acquisition, the agency shall
include the information made public at bid opening, under FAR Subpart
14.4. In the announcement of a performance decision for a negotiated
acquisition, the agency shall include the information regarding offers
and tenders identified in FAR 15.503(b). If an agency tender includes
any MEO subcontracts, the agency shall not release proprietary information
contained in these subcontracts.
d.
Debriefing. The SSA shall ensure that the CO offers a debriefing
to all private sector offerors, public reimbursable sources, the ATO,
and directly affected government personnel (and their representatives),
in accordance with FAR 15.503.
e.
Release of the Certified SCF and Tenders. An agency shall release
the certified SCF, agency tender, and public reimbursable tenders, only
as provided in this paragraph. Until resolution of any contest under
paragraph F. of this Attachment, or expiration of the time for filing
a contest, only legal agents for directly interested parties shall have
access to the certified SCF, agency tender, and public reimbursable
tenders. The agency shall require, as a condition of access, that a
legal agent of a directly interested party sign a non-disclosure agreement.
The agreement shall provide that a signatory may share the information
covered by the agreement only with other signatories, and only for purposes
of challenging the performance decision. Upon resolution of a contest
challenging a performance decision (i.e., when the agency renders a
written decision in compliance with FAR Subpart 33.103, as required
by paragraph F.1.b. of this Attachment), or expiration of the time for
filing such a contest, the certified SCF, agency tender, and public
reimbursable tenders, shall be available to the public, upon request.
Proprietary information of private sector providers of sub-contracts
included in agency or public reimbursable tenders shall not be released.
f.
Implementing a Performance Decision. An agency shall implement
the performance decision resulting from a standard competition as follows:
(1) Private Sector Provider.
(a)
Awarding the Contract. For a performance decision favoring
a private sector source, the CO shall award a contract in accordance
with the FAR.
(b)
Right of First Refusal. When the agency is the incumbent
service provider, the CO shall comply with FAR 7.305(c) regarding
the right of first refusal. The HRA shall provide the CO with a list
of adversely affected employees as soon as possible after the performance
decision is made.
(2) Public Reimbursable Provider. For a performance decision
favoring a public reimbursable source, the CO shall develop a fee-for-service
agreement with the public reimbursable source. The CO shall incorporate
appropriate portions of the solicitation and public reimbursable tender
into the fee-for-service agreement and distribute the agreement to the
appropriate individuals.
(3) Agency Provider. For a performance decision favoring
the agency, the CO shall establish an MEO letter of obligation with an
official responsible for performance of the MEO. The CO shall incorporate
appropriate portions of the solicitation and the agency tender into the
MEO letter of obligation and distribute the letter to appropriate individuals
including the ATO.
E.
POST COMPETITION ACCOUNTABILITY FOR STREAMLINED AND STANDARD COMPETITIONS.
1. Best Practices and Lessons Learned. Agencies shall post
best practices and lessons learned resulting from a streamlined or standard
competition process on SHARE A-76! at http://emissary.acq.osd.mil/inst/share.nsf/.
An agency shall maintain the accuracy and currency of their agency’s
information, including links, on SHARE A-76!
2. Execution Tracking of Streamlined and Standard Competitions.
Agencies shall maintain a database to track the execution of agency streamlined
and standard competitions. Agencies shall maintain a database that (1) assigns
a unique tracking number to each streamlined and standard competition, (2)
includes data fields as defined on the OMB web site at www.omb.gov,
(3) tracks each streamlined and standard competition as events occur (real-time)
from the date of public announcement through either completion of the last
performance period or cancellation of the competition, and (4) retains historical
records of streamlined and standard competitions after the last performance
period has been completed.
3. Competitive Sourcing Quarterly Report. An agency shall
submit a Competitive Sourcing Quarterly Report to OMB, by the end of each
fiscal quarter (December, March, June, September), that includes the following
(1) in-progress streamlined and standard competitions (i.e., competitions
with start dates and pending performance decisions); and (2) completed streamlined
and standard competitions (i.e., competitions with performance decisions).
The required format for these reports can be found on the OMB web site at
www.omb.gov.
4. Monitoring Performance. Regardless of the selected service
provider, after implementing a performance decision, an agency shall (1)
monitor performance for all performance periods stated in the solicitation;
(2) implement the quality assurance surveillance plan; (3) retain the solicitation
and any other documentation from the streamlined or standard competition
as part of the competition file; (4) maintain the currency of the contract
file, consistent with FAR Subpart 4.8, for contracts, MEO letters of obligation,
and fee-for-service agreements; (5) record the actual cost of performance
by performance period; and (6) monitor, collect, and report performance
information, consistent with FAR Subpart 42.15, for purposes of past performance
evaluation in a follow-on streamlined or standard competition. To record
the actual cost of performance for a specific performance period, the agency
shall adjust actual costs for scope, inflation, and wage rate adjustments
made during a specific performance period. The agency shall compare the
actual costs to the costs recorded on SCF Lines 6 and 7 when the performance
decision was made.
5. Option Years of Performance and Follow-on Competition.
a.
Option Years of Performance. The CO shall make option year
exercise determinations for agency, public reimbursable, and private
sector performance decisions in accordance with FAR 17.207. Consistent
with the FAR, the CO shall not approve performance periods that exceed
the total number of years specified in the solicitation used in the
standard competition.
b.
Follow-on Competition. For agency or public reimbursable performance
decisions, an agency shall complete another streamlined or standard
competition of the activity by the end of the last performance period
on the SCF or SLCF unless a specific exemption is granted by the CSO
(without delegation) before the end of the last performance period.
The CSO may extend the performance period for a high performing organization
if the CSO (a) determines that continued cost savings justifies the
extension; (b) documents these cost savings through the use of a COMPARE
generated SCF or SLCF; (c) limits the extension to no more than 3 years
after the last performance period; and (d) makes a formal announcement
of the extension via FedBizOpps.gov. For private sector performance
decisions, the CO shall comply with the FAR for follow-on competition.
6. Terminations.
a.
Terminations Based on Failure to Perform.
(1) Notification. Consistent with FAR Part 49, the CO
shall notify a service provider (i.e., private sector contractor, public
reimbursable provider, or MEO) of poor performance through cure notices
and show cause notices. The CO shall inform the head of the requiring
activity of such notices.
(2) Termination. If the CO determines that a service
provider (i.e., private sector contractor, public reimbursable provider,
or MEO) has failed to perform to the extent that a termination for default
is justified, the CO shall issue a notice of termination, consistent with
FAR Part 49. Upon terminating an MEO letter of obligation, an agency shall
change the inventory coding to reflect that the activity is no longer
performed by an MEO and shall perform either a streamlined or standard
competition.
(3) Temporary Remedies. If the CO terminates a contract,
fee-for-service agreement, or MEO letter of obligation for the service
provider’s failure to perform, an agency may use interim contracts,
public reimbursable sources, or government personnel on an emergency basis.
An agency shall not allow these temporary remedies to be used for longer
than one year from the date of termination.
b.
Terminations Based on Reasons Other than Failure to Perform.
If an agency determines that performance by a service provider (i.e.,
private sector contractor, public reimbursable, or MEO) is to be terminated
for reasons other than failure to perform, the CSO (without delegation)
shall approve such terminations, in writing, and provide a copy to OMB
before the termination. Examples of these terminations include, but
are not limited to, elimination of an agency requirement through divestiture,
privatization, reorganization, restructuring, national defense, or homeland
security.
F.
CONTESTS.
1. Standard Competitions. A directly interested party (see Attachment D)
may contest any of the following actions taken in connection with a standard
competition: (1) a solicitation; (2) the cancellation of a solicitation;
(3) a determination to exclude a tender or offer from a standard competition;
(4) a performance decision, including, but not limited to, compliance with
the costing provisions of this circular and other elements in an agency's
evaluation of offers and tenders; or (5) a termination or cancellation of
a contract or letter of obligation if the challenge contains an allegation
that the termination or cancellation is based in whole or in part on improprieties
concerning the performance decision. The pursuit of a contest by a directly
interested party and the resolution of such contest by the agency shall
be governed by the procedures of FAR Subpart 33.103.
2. Streamlined Competitions. No party may contest any aspect
of a streamlined competition.
Attachment
C
CALCULATING
PUBLIC-PRIVATE COMPETITION COSTS
A.
OVERVIEW.
1. Public-Private Competition Costs. To reflect the full
cost of performance by the government, agencies and public reimbursable
sources shall calculate cost estimates in accordance with this attachment
for public-private competitions. An agency shall not deviate from this attachment
except as provided by paragraph 5.c. of this circular. A private sector
source shall propose a price or estimated cost in accordance with Attachment
B and the FAR.
2. COMPARE. Agencies shall use COMPARE (the costing software
that incorporates the costing procedures of this circular) in conjunction
with this Attachment to develop cost estimates and generate the SCF or SLCF.
The COMPARE version in effect as of the performance decision date shall
be used when determining a performance decision.
a.
COMPARE Maintenance. The Department of Defense shall maintain
the currency and accuracy of COMPARE, COMPARE User’s Guide, and
COMPARE tables (e.g., inflation cost factors, tax rates, useful life
and disposal values, cost of capital cost factors, OPM wage rates) with
OMB oversight. The Department of Defense shall maintain a COMPARE version
control log for all changes to the costing software and shall coordinate
COMPARE version changes with OMB prior to release. An agency shall submit
requests for COMPARE changes to the Department of Defense and OMB. The
Department of Defense shall evaluate the requested COMPARE changes and
review the impact of the change with OMB. OMB shall approve version
changes to COMPARE.
b.
COMPARE Calculations. Many of the calculations required by
this attachment are embedded directly into the COMPARE software code.
These COMPARE calculations are dependent upon accurate cost data that
agencies shall determine and manually enter into COMPARE. For example,
when cost data for the various costing requirements are manually entered,
COMPARE will then automatically calculate costs such as basic pay, fringe
benefits, insurance, inflation, FTEs, cost of capital, depreciation,
minor item replacement, overhead, severance pay, and federal taxes.
(1) Standard Competitions. Agencies shall calculate and
manually enter the required cost data for SCF Lines 1, 2, 3, 5, 9, and
11. COMPARE then automatically computes SCF Lines 4, 6, 8, and 10. After
the CO enters the required data for SCF Lines 7 and 12, COMPARE automatically
computes SCF Lines 12, 13, 14, 15, 16, 17 and 18 and no further manual
calculations are required for the SCF. After all costs have been entered
into COMPARE the SCF is automatically generated for signature and certification
of the performance decision. Public reimbursable cost estimates shall
be calculated and manually entered based on the required cost data for
SCF Lines 1a, 2a, 3a, and 5a. COMPARE then automatically computes SCF
Lines 4a and 6a.
(2) Streamlined Competitions. Agencies shall calculate
and manually enter the required data for SLCF Lines 1, 2, 3, 7 and 12.
COMPARE then automatically computes SLCF Lines 4, 6, 8, 12, 13, 17 and
18 and no further manual calculations are required for the SLCF. After
all costs have been entered into COMPARE the SLCF is automatically generated
for signature and certification of the performance decision. For public
reimbursable cost estimates, agencies shall calculate and manually enter
the required cost data for SLCF Lines 1a, 2a, and 3a. COMPARE then automatically
calculates SLCF Lines 4a and 6a.
3. Competitions Between Private Sector and Public Reimbursable Sources.
A public reimbursable source may only respond to a solicitation by submitting
a public reimbursable tender that is developed in accordance with Attachment
B. The public reimbursable tender includes a cost estimate that shall be
calculated in accordance with this attachment and entered on SCF Lines 1a-6a.
The CO shall determine the cost adjustments to be included on SCF Line 8
(Contract Administration) and SCF Line 12 (Federal Income Tax Adjustment).
The CO shall ensure no costs are entered on SCF Lines 9, 10, 11, and 14.
4. Excluded Costs. Agency and public reimbursable sources
shall not include the following in cost estimates (a) retained rate of basic
pay for civilian employees (5 C.F.R. Part 536); (b) costs for conducting
the streamlined or standard competitions; and (c) agency separation incentive
programs such as Voluntary Early Retirement Authority (VERA) and Voluntary
Separation Incentive Pay (VSIP), which are programs used to preclude involuntary
civilian separations resulting from reductions in force (RIF).
5. Conversion Differential. In a standard competition,
an agency shall determine the conversion differential, in accordance with
paragraph D of this attachment. The conversion differential is added to
a non-incumbent’s cost of performance and is the lesser of 10 percent
of the MEO’s personnel-related costs (SCF Line 1) or $10 million over
all performance periods stated in the solicitation. (See Attachment B, Conversion
Differential.) Agencies shall not calculate the conversion differential
in a cost estimate for a streamlined competition.
6. Performance Periods. An agency or a public reimbursable
source shall reflect the same performance periods required by the solicitation
on the SCF.
7. Rounding Rule. An agency or a public reimbursable source
shall round all line entries on the SCF/SLCF to the nearest dollar.
8. Phase-in Costs. An agency or public reimbursable source
shall reflect phase-in costs that are associated with the specific phase-in
actions and are documented in the phase-in plan. Agency and public reimbursable
sources shall calculate the phase-in costs associated with the change from
the incumbent provider on SCF Lines 1-5 or SCF Lines 1a-5a, as appropriate.
9. Inflation. OMB issues a transmittal memorandum in the
Federal Register to identify changes to the federal pay raise assumptions
and inflation factors (based on the President’s annual budget). These
annual pay raise assumptions and inflation factors shall be used in an agency
or a public reimbursable cost estimate for pay and non-pay categories of
cost as follows: (a) through the end of the last performance period for
pay and non-pay categories of cost that are not subject to an economic price
adjustment, and (b) through the end of the first performance period for
pay and non-pay categories of cost that are subject to an economic price
adjustment. COMPARE automatically computes inflation on a daily basis, which
is calculated using 365.25 days per year to account for leap years.
10. Standard Cost Factors. Agencies and public reimbursable
sources shall use the standard A-76 costing factors identified at Figure
C1. to calculate cost estimates. Figure C1. identifies the types of and
sources for standard costing factors as well as specific costing factors
in effect at the time of publication of this circular. Updates to these
cost factors will be posted on the OMB web site at www.omb.gov.
When a standard cost factor changes, the Department of Defense shall update
the tables in COMPARE and post the table update on SHARE A-76! Prior to
posting a table update, the Department of Defense shall test the change
to the software, and review the change with OMB. An agency shall not deviate
from the cost factors required by this attachment except as provided by
paragraph 5.c. of this circular, in which case the agency shall notify the
Department of Defense of the change, fund any resulting modifications to
COMPARE to accommodate the agency-specific cost factor, and maintain the
currency of the agency-specific cost factor. When preparing cost estimates,
agency and public reimbursable sources shall (a) use the standard cost factors
that are in effect as of the solicitation closing date; and (b) apply known,
projected changes to these standard cost factors, if the agency or public
reimbursable source will incur these costs before the end of the first performance
period. If a standard cost factor changes before the performance decision
date, the CO shall ensure the agency and public reimbursable cost estimates
reflect the standard cost factors that are in effect on the performance
decision date.
11. Standard Competition Form (SCF). Agencies and public
reimbursable sources shall use the SCF at Figure C2. for a standard competition.
The ATO, public reimbursable source, CO, and SSA shall sign the certification
statements as reflected on the SCF in Figure C2.
a.
Agency Cost Estimate. Based on the agency tender, the solicitation,
and Attachment B, the ATO shall calculate and certify the agency cost
estimate on SCF Lines 1-6, and calculate SCF Lines 8-17.
b.
Public Reimbursable Cost Estimate. Based on the public reimbursable
tender, the solicitation, and Attachment B, a public reimbursable
source shall calculate and certify the public reimbursable cost estimate
on SCF Lines 1a-6a.
c.
Negotiated Acquisition. For a negotiated acquisition, the CO
shall determine, through price analysis and cost realism as required
by Attachment B, if the agency cost estimate (SCF Lines 1-6) and a public
reimbursable cost estimate (SCF 1a-6a) are calculated in accordance
with this attachment. The SSA ensures the performance decision is based
on evaluating offers and tenders in accordance with Attachment B, and
certifies either a low-cost performance decision as supported by SCF
Line 17 or an other-than-low-cost performance decision as supported
by the source selection decision documentation.
d.
Sealed Bid Acquisition. For sealed bid and negotiated acquisitions,
the CO shall determine (as required by Attachment B) if the costs entered
on SCF Lines 8-18 are accurate and calculated in accordance with this
attachment. Agencies and public reimbursable sources shall reflect cost
estimates using the SCF in Figure C2.
12. Streamlined Competition Form (SLCF). When performing
a streamlined competition, an agency shall calculate and certify SLCF Lines
1, 2, 3, 4, 6, 7, 8, 12, 13, 17, and 18 in accordance with Attachments B
and C. The cost estimate for a public reimbursable source shall be calculated
and certified on SLCF Lines 1a, 2a, 3a, 4a, and 6a. Agencies shall reflect
cost estimates using the SLCF in Figure C3. The certification statements
as reflected on the SLCF in Figure C3, shall be signed by different individuals,
as required by Attachment B.
B.
COST OF AGENCY PERFORMANCE (SCF/SLCF LINES 1-6).
COST OF PUBLIC REIMBURSABLE PERFORMANCE (SCF/SLCF LINES 1a-6a).
1. Scope. Unless otherwise provided, agency cost estimates
and public reimbursable cost estimates shall be calculated in accordance
with paragraph B of this attachment.
2. Personnel Costs (SCF/SLCF Line 1/1a). Personnel costs
for an agency cost estimate shall be entered on SCF Line 1 for a standard
competition or SLCF Line 1 for a streamlined competition. Personnel costs
in a public reimbursable cost estimate shall be entered on SCF Line 1a for
a standard competition or SLCF Line 1a for a streamlined competition. Agency
and public reimbursable sources shall include sufficient written documentation
of all personnel costs included in cost estimates for the CO to conduct
price analysis and cost realism as required by Attachment B. Personnel costs
for agency and public reimbursable cost estimates shall be calculated as
provided below. Agencies shall determine and manually input the cost data
for this SCF/SLCF line into COMPARE. COMPARE automatically computes Line
1 and Line 1a totals based upon user inputs.
a.
Labor Costs. Agency and public reimbursable sources shall calculate
all labor costs to reflect the staffing (e.g., MEO) necessary to meet
the solicitation requirements and include these costs in cost estimates.
These labor costs include, but are not limited to, direct labor; labor
for supervision and management related support to the tender (e.g.,
MEO) such as labor for quality control, labor for MEO administration
and inspection based on the MEO letter of obligation, labor for contract
administration and surveillance for MEO subcontract, and indirect labor.
An agency shall determine direct labor costs based on the government
personnel costs for labor that will be dedicated to the MEO. To calculate
direct labor, an agency shall identify the specific MEO staffing, wage/grade
classifications, salaries, wages and other entitlements such as fringe
benefits, overseas allowances, uniform allowances and overtime and other
local personnel costs expended to perform the MEO. Direct labor includes
resources dedicated to performing the requirements of the solicitation
and labor for supervision and management related support to the tender
(e.g., MEO) such as labor for quality control.
b.
Prorated Labor. Agency and public reimbursable sources shall
prorate the cost of government personnel who will not be 100 percent
dedicated to the organization in the tender (e.g., MEO) based on the
amount of dedicated time the agency expects these civilian positions
to provide to the organization (e.g., MEO). For example, if a GS-13
position spends 20 percent of their time performing management oversight
of an activity being competed, the prorated cost is entered on SCF Line
1 as 0.20 FTE in the grade of GS-13, step 5. Agencies and public reimbursable
sources shall calculate prorated labor in cost estimates and enter these
costs on SCF Line 1 or Line 1a, as appropriate.
c.
Administration and Inspection Costs for an MEO Letter of Obligation.
The agency cost estimate shall include labor costs for MEO
administration and inspection. These costs include, but are not limited
to, monitoring performance and compliance with the MEO letter of obligation
for all performance periods. A public reimbursable cost estimate shall
not include these administration costs since they are accounted for
on SCF/SLCF Line 8.
d.
Full-Time Equivalents (FTE). Based on workload requirements,
agency and public reimbursable sources shall determine the productive
work hours for the organization in the tender (e.g., MEO) and then convert
these productive hours into FTE positions. After the FTE determination,
an agency shall establish the staffing for the organization in the tender
(e.g., MEO), which includes the number of positions and grades necessary
to meet the FTE requirements. For example, if an agency determines that
35.789 FTEs of direct labor will be necessary to meet the workload requirements,
the agency will then convert the 35.789 FTE requirement into the number
of positions and corresponding grades necessary to fill these requirements,
resulting in a staffing level of 36 positions for the organization in
the agency tender. The agency then calculates the cost of the 36 positions
and enters the cost on Line 1 or Line la, as appropriate. In this example,
the work associated with the 0.789 FTEs was converted into a whole position
based on a specific staffing approach; however, another agency might
elect to use intermittent or part-time positions to accomplish the 0.789
FTE requirement. After these FTE calculations and staffing determinations,
agency and public reimbursable sources shall determine and add the staffing
for indirect labor to the organization in the tender to support the
direct labor (man-year) requirements.
(1) FTE Rounding. An agency shall round FTE calculations
to three decimal places (for example: 0.000 FTEs).
(2) Full-time, Part-time, Temporary, and Seasonal FTEs.
An agency shall determine the required number of FTEs by identifying the
total hours required, by skill and grade, and then divide by 1,776 annual
productive hours. The productive hours shall exclude annual leave, sick
leave, administrative leave, training, and other nonproductive hours.
(3) Intermittent FTEs. An agency shall determine the
required number of FTEs by identifying the total hours required, by skill
and grade, and then divide by 2,007 annual productive hours.
e.
Civilian Position Pay and Wages.
(1) Calculation. Agency and public reimbursable sources
shall calculate civilian pay and wages for cost estimates using (a) local
pay salaries and wages at a rate of step 5 for GS, and step 4 for FWS,
positions; (b) the mid-grade, or mid-band and mid-step level for pay-banded
or demonstration project positions; (c) the locality pay for the location,
or each location in a multi-location competition; and (d) the length of
time in grade for each grade in a developmental series, as determined
by the HRA.
(2) Pay Rate Changes. Agency and public reimbursable
sources shall implement pay rate changes in cost estimates when the pay
rate changes become “known.” The specific point at which these
pay rate changes become “known” is after the President signs
the executive order approving the pay rate changes and the executive order
is made available to the public. The cost of a pay rate change is incurred
by the government based upon the effective date of the pay tables, regardless
of whether the President signs the treasury/postal authorization bill
for a given fiscal year. Therefore, agency and public reimbursable sources
shall incorporate pay rate changes in cost estimates if (a) the effective
date of the new pay table is prior to or the same day as the first day
of the phase-in period; and (b) the signed Presidential executive order
approving the pay rate changes is available to the public. If an agency
or public reimbursable source has prepared a cost estimate but a performance
decision is pending, the agency or public reimbursable source shall update
the cost estimate to reflect these “known” pay rate changes
prior to the performance decision being made.
f.
Civilian Position Fringe Benefits and Federal Insurance Contribution
Act (FICA). Agency and public reimbursable sources shall calculate
civilian fringe benefits and FICA based upon the basic pay for each
position in the cost estimate. Basic pay for GS positions is the position’s
annual salary plus any applicable “other civilian position pay
entitlements” (see “Other Civilian Pay Entitlements”
paragraph below). Basic pay for FWS positions is the position’s
annual wages including shift differential pay and environmental pay
plus any applicable “other civilian pay entitlements” (see
“Other Civilian Pay Entitlements” paragraph below). Agency
and public reimbursable sources shall multiply basic pay by the following
government-wide standard factors. COMPARE automatically computes the
costs for these entries.
(1) Full-time and Part-time Permanent Civilian Positions. On
the publication date of this circular, full-time and part-time permanent
civilian positions receive the civilian position full fringe benefit cost
factor of 32.85 percent of the position’s basic pay. The 32.85 percent
civilian position full fringe benefit cost factor is the sum of the standard
civilian position retirement benefit cost factor (24.0 percent), insurance
and health benefit cost factor (5.7 percent), Medicare benefit cost factor
(1.45 percent), and miscellaneous fringe benefit cost factor (1.7 percent).
(a)
Retirement Benefit Cost Factors. The standard civilian retirement
benefit cost factor represents the cost of the weighted Civil Service
Retirement System/Federal Employees Retirement System to the government,
based upon the full dynamic normal cost of the retirement systems,
the normal cost of accruing retiree health benefits based on average
participation rates, social security, and Thrift Savings Plan contributions.
On the publication date of this circular, the standard civilian retirement
benefit cost factor for civilian positions is 24 percent of the position’s
basic pay (18.9 percent retirement pension plus 5.1 percent for retiree
health). The retirement cost factors for special class civilian positions
are: 33.0 percent of basic pay for air traffic controllers (27.9 percent
retirement pension plus 5.1 percent for retiree health) and 38.2 percent
of basic pay for law enforcement and fire protection (33.1 percent
retirement pension plus 5.1 percent for retiree health).
(b)
Insurance and Health Benefit Cost Factor. On the publication
date of this circular, the insurance and health benefit cost factor
for civilian positions, based on actual cost, is 5.7 percent of the
position’s basic pay.
(c)
Medicare Benefit Cost Factor. On the publication date of
this circular, the Medicare benefit cost factor is 1.45 percent of
the civilian position’s basic pay.
(d)
Miscellaneous Fringe Benefit Cost Factor. As of the publication
date of this circular, the miscellaneous fringe benefits cost factor
for civilian positions (workmen's compensation, bonuses, awards, and
unemployment programs) is 1.7 percent of the position’s basic
pay. Based on the OPM civilian award policy, there are two general
categories for civilian awards. Category one is for special acts (e.g.,
cash awards, bonuses) that are over and above a civilian employee’s
expected annual performance, and category two is for awards that are
based on a civilian employee’s annual performance rating (e.g.,
cash awards, bonuses, quality step increases). Category one civilian
awards are not included in the 1.7 percent miscellaneous fringe benefit
factor (these costs are entered under “Other Civilian Pay”).
Category two civilian awards are included in the 1.7 percent miscellaneous
fringe benefit factor.
(2) Temporary and Intermittent Civilian Positions. The
full benefit factor is not applied to temporary and intermittent civilian
positions. Agencies and public reimbursable sources shall apply the FICA
cost factor to civilian positions not covered by Civil Servant Retirement
System or Federal Employee Retirement System (typically intermittent and
temporary civilian positions). On the publication date of this circular,
the FICA cost factor is 7.65 percent of salaries or wages subject to federal
income tax. The FICA cost factor equates to 6.2 percent for Old Age and
Survivors Death Insurance benefits and 1.45 percent for Medicare benefits.
There is an annual maximum earnings limitation of $87,000 for the Old
Age and Survivors Death Insurance benefit portion of the FICA tax.
(3) Seasonal Civilian Positions. Seasonal civilian positions
are employed on a recurring basis for less than 12 months each year. Agencies
and public reimbursable sources shall calculate the cost of a seasonal
position based on 1,776 annual productive hours, and determine the number
of seasonal civilian positions as a seasonal full-time or seasonal part-time
position based on the number of annual hours the civilians will be scheduled
to work. Agencies and public reimbursable sources shall then calculate
permanent seasonal civilian positions using the civilian position full
fringe benefit cost factor, and temporary seasonal civilian positions
using the FICA cost factor.
g.
Other Civilian Pay. Agency and public reimbursable sources
shall calculate other civilian pay for each position in the cost estimate,
when applicable. Other civilian pay includes pay that is subject only
to FICA taxes. Examples of this type of pay include, but are not limited
to, premium pay, night differential pay for GS positions, overtime pay,
holiday pay, category one civilian awards, civilian bonuses, and uniform
allowances.
h.
Other Civilian Pay Entitlements. Agency and public reimbursable
sources shall calculate other civilian pay entitlements for each civilian
position in the cost estimate, when applicable. Agency and public reimbursable
sources shall identify these entitlements and use current cost factors
for each entitlement identified in cost estimates. In a standard competition,
the HRA shall identify these entitlements and obtain the current cost
factors for each entitlement identified in the agency cost estimate.
Examples of these entitlements include, but are not limited to, night
differential pay for FWS positions, environmental differential pay and
premium pay (for civilian fire fighters and law enforcement officers).
Agencies shall determine and manually input the cost data for this cost
entry into COMPARE.
i.
Non-Foreign Area Civilian Employee Cost-Of-Living Allowance.
Agency and public reimbursable sources shall calculate cost-of-living
allowances for each position in the cost estimate, when applicable.
A cost-of-living allowance is applied to any civilian employee position
that will physically perform work in the following locations: Alaska,
Hawaii, Guam, Puerto Rico, the United States Virgin Islands, and the
Commonwealth of the Northern Mariana Islands. Agencies shall determine
and manually input the cost data for this cost entry into COMPARE.
j.
Administration and Surveillance for MEO Subcontracts. If a
mix of government positions and subcontracts is included in a tender,
agency and public reimbursable sources shall calculate the cost of labor
for the administration and surveillance of these subcontracts and enter
the cost on Line 1 or 1a, as appropriate. An agency shall enter the
actual costs of MEO subcontracts and fee-for-service agreements, as
well as the cost of government-furnished material, equipment, facilities,
and services for these subcontracts, on Line 3 or Line 3a, as appropriate.
A public reimbursable source shall enter the actual costs of subcontracts
and fee-for-service agreements, as well as the cost of public reimbursable
furnished material, equipment, facilities, and services for these subcontracts,
on Line 3a. Agencies shall determine and manually input the cost data
for this cost entry into COMPARE.
k.
Labor Escalation. Inflation for wages and salaries of civilian
positions and private sector service positions (often referred to as
“labor escalation”) is included in private sector cost proposals,
agency cost estimates, and public reimbursable cost estimates based
on the solicitation requirements for economic price adjustment for labor
inflation. An economic price adjustment for services and construction
labor is determined by the Service Contract Act (SCA), the Davis-Bacon
Act and FAR Part 22. To calculate inflation for civilian positions in
cost estimates, agency and public reimbursable sources shall comply
with the following guidance, which is consistent with the requirements
in FAR Part 22 for submission of private sector offers. COMPARE automatically
computes the applicable inflation costs based on the user input selections
in accordance with the following:
(1) If a solicitation does not include
either FAR clause 52.222-43 or 52.222-44, an agency shall apply inflation
to all civilian positions for all performance periods through the end
of the last performance period stated in the solicitation.
(2) If a solicitation does include either
FAR clause 52.222-43 or 52.222-44, agency and public reimbursable sources
shall inflate labor costs in cost estimates as follows: (a) For civilian
positions that are subject to an economic price adjustment (i.e., the
position description states the position is nonexempt under the Fair Labor
Standards Act, inflation is applied only through the end of the first
period of full performance; or (b) For civilian positions that are not
subject to an economic price adjustment (i.e., the position description
states the position is exempt under the Fair Labor Standards Act inflation)
is applied for all performance periods through the end of the last performance
period stated in the solicitation.
(3) SCA and the Davis-Bacon Act do not apply to civilian
positions; however, the Fair Labor Standards Act can be applied to civilian
positions consistent with SCA since both the Fair Labor Standards Act
and SCA use the same definitions for employees that perform services.
On the basis of these common definitions, and since the private sector
uses the SCA and the Davis-Bacon Act (as prescribed in FAR Part 22) to
determine which private sector positions are subject to an economic price
adjustment, agencies and public reimbursable sources shall use the Fair
Labor Standards Act to determine which civilian positions are subject
to an economic price adjustment in cost estimates. The determination of
whether a civilian position is exempt or nonexempt under the Fair Labor
Standards Act is required by OPM when civilian position descriptions are
classified. Therefore, when an official civilian position description
is classified as exempt under the Fair Labor Standards Act, the civilian
position is not subject to an economic price adjustment and labor
costs are inflated for all performance periods through the end of the
last performance period stated in the solicitation. When a position description
is classified as nonexempt under the Fair Labor Standards Act, the civilian
position is subject to an economic price adjustment but only
if the solicitation includes FAR clause 52.222-43 or FAR 52.222-44; in
that case, labor costs for non-exempt positions are inflated through the
end of the first period of full performance.
l.
Labor Inflation Cost Factors. As provided in paragraph A of
this Attachment, an annual OMB Transmittal Memorandum identifies the
federal pay raise assumptions and inflation cost factors (i.e., pay
increases expressed in percentages) for civilian positions. This transmittal
memorandum provides an update to the pay inflation cost factors used
to estimate projected civilian pay costs and to specify the year in
which these labor inflation cost factors become effective. Agency and
public reimbursable sources shall apply the labor inflation cost factors
(specified in the annual OMB transmittal memorandum) on the day immediately
following the end of the effective period of the GS or FWS pay schedules
used in the agency cost estimate.
(1) General Schedule (GS). Since GS pay schedules are
effective on the first day of the first full pay period beginning on or
after January 1 of each year, agency and public reimbursable sources shall
apply the labor inflation cost factors in January of each year following
the end of the effective period for the pay schedule used in cost estimates
for GS positions. For example, if the GS pay schedule in use is effective
on January 12, 2003, the 2004 pay inflation factor is applied on January
12, 2004. The labor inflation cost factor for each year provided in the
transmittal memorandum is applied on January 12 of each subsequent year
of performance included in the cost estimate as required by the performance
periods stated in the solicitation.
(2) Federal Wage System (FWS). FWS pay schedules are
effective for a 12-month period, and differ from GS pay schedules in that
effective dates for FWS pay schedules (a) occur during any month of the
year and (b) vary by location. For FWS positions, agency and public reimbursable
sources shall apply the labor inflation cost factors at the end of the
effective period of the FWS pay schedule used in the cost estimates. Agency
and public reimbursable sources shall apply FWS labor inflation cost factors
to FWS pay as follows:
(a)
January to September Effective Dates. For FWS pay schedules
with effective dates from January 1 through September 30, agency and
public reimbursable sources shall use the labor inflation cost factor
that corresponds to the year of the end date of the effective period
for the FWS pay schedule. For example, if an FWS pay schedule is effective
from April 20, 2003 to April 19, 2004, the 2004 labor inflation cost
factor is used on April 20, 2004. On April 20 of each subsequent year,
the labor inflation cost factor that corresponds to each subsequent
year is used.
(b)
October to December Effective Dates. For FWS pay schedules
with effective dates from October 1 through December 31, agency and
public reimbursable sources shall use the labor inflation cost factor
that corresponds to the year following the end date of the effective
period for the FWS pay schedule. For example, if an FWS pay schedule
is effective from October 20, 2003 to October 19, 2004, the 2005 labor
inflation cost factor is used on October 20, 2004. On October 20 of
each subsequent year, the labor inflation cost factor that corresponds
to each subsequent year is used.
m. Uniformed Services Labor. Agency and public reimbursable
sources may include uniformed services labor in tenders, only under the
following conditions: (a) uniformed services positions in the tender (e.g.,
MEO) shall not exceed the number of pre-competition uniformed services
positions performing the activity and (b) civilian employee positions
shall not be converted to uniformed services positions. If uniformed services
labor is used in a tender, the agency or public reimbursable source shall
develop productive hours for the uniformed services positions that include
annual leave, sick leave, administrative leave, training, and other nonproductive
hours. Agency and public reimbursable sources shall calculate the cost
of uniformed services positions using the military/uniformed services
composite pay rate, apply the labor inflation cost factor, and enter this
cost data for Line 1 or Line 1a calculations, as appropriate. COMPARE
automatically computes the Line 1 or Line 1a entry based on the user inputs.
3. Material and Supply Costs (SCF/SLCF Line 2/2a). Material
and supply costs in an agency cost estimate shall be entered on SCF Line
2 for a standard competition or SLCF Line 2 for a streamlined competition.
Material and supply costs in a public reimbursable cost estimate shall be
entered on SCF Line 2a for a standard competition or SLCF Line 2a for a
streamlined competition. Agency and public reimbursable sources shall include
sufficient written documentation of all material and supply costs included
in cost estimates for the CO to conduct price analysis and cost realism
as required by Attachment B. Agencies and public reimbursable cost estimates
shall calculate material and supply costs as follows. Agencies shall determine
and manually input the cost data for this SCF/SLCF line into COMPARE.
a.
General. Material and supply costs are incurred in each performance
period for goods such as raw materials, parts, subassemblies, components,
fuel, and office supplies. Agency and public reimbursable sources shall
adjust historical or engineering estimates of material and supply use,
and cost data, to reflect the solicitation requirements in cost estimates.
An agency shall calculate material and supply costs and include these
costs in the agency cost estimate only if the materials and supplies
are required for the agency tender but are not provided to all prospective
providers as GFP in the solicitation. The CO includes instructions for
material and supply costs in the solicitation (FAR 51.101). Agency and
public reimbursable sources shall comply with the solicitation instructions
for calculating the cost of materials and supplies in cost estimates
and enter the costs on Line 2 or 2a, as appropriate. For material and
supplies not provided as GFP but needed to meet the requirements of
the solicitation, a public reimbursable source shall calculate the cost
of materials and supplies in accordance with this paragraph, reflect
these costs in the cost estimate, and enter the costs on Line 2a.
b.
Cost Ceiling. If the solicitation includes a material and supply
cost ceiling, agency and public reimbursable sources shall include this
ceiling cost in cost estimates and enter the cost on Line 2 or Line
2a, as appropriate. If a solicitation does not include a material and
supply cost ceiling, agency and public reimbursable sources shall calculate
the full cost of materials and supplies, including inflation if required,
and enter these costs on Line 2 or 2a, as appropriate.
c.
Material Related Costs. Agency and public reimbursable sources
shall list required material by the quantity needed, unit price, inflation
for out-years, and enter the total cost in cost estimates on Line 2
or Line 2a, as appropriate. Material costs include, but are not limited
to, material, transport, handling, availability, delay costs, and established
allowances for normal scrap, spoilage, overruns and defective work.
Agency and public reimbursable sources may make a single entry for miscellaneous
items such as office supplies in cost estimates.
d.
Inflation. Agency and public reimbursable sources shall calculate
an estimate for material and supply costs in cost estimates for all
performance periods, including adjustments for non-pay inflation identified
in the annual update of non-pay inflation factors issued by an OMB Transmittal
Memorandum. Agency and public reimbursable sources shall calculate unit
prices to the end of the first period of full performance and inflate
and/or prorate the cost of materials and supplies in the cost estimate
in accordance with instructions in the solicitation. Agency and public
reimbursable sources shall review section B (Supplies or Services and
Prices) and any special clauses in section H (Special Contract Requirements)
of the solicitation to determine if an economic price adjustment applies
to materials and supplies. If materials and supplies listed in section
B are subject to an economic price adjustment, agency and public reimbursable
sources shall inflate these costs through the end of the first period
of full performance in cost estimates. If materials and supplies listed
in section B are not subject to an economic price adjustment, agency
and public reimbursable sources shall inflate these costs by applying
the applicable inflation factors (if any) for all performance periods
through the end of the last performance period stated in the solicitation.
If fuel costs are entered on Line 2 or Line 2a, the fuels (non-pay)
inflation cost factor shall be used to apply inflation to the fuel costs.
4. Other Specifically Attributable Costs (SCF/SLCF Line 3/3a). Other
specifically attributable costs in an agency cost estimate shall be entered
on SCF Line 3 for a standard competition or SLCF Line 3 for a streamlined
competition. Other specifically attributable costs in a public reimbursable
cost estimate shall be entered on SCF Line 3a for a standard competition
or SLCF Line 3a for a streamlined competition. Agency and public reimbursable
sources shall include sufficient written documentation for all other specifically
attributable costs included in cost estimates for the CO to conduct price
analysis and cost realism as required by Attachment B. Agencies and public
reimbursable cost estimates shall calculate other specifically attributable
costs as follows:
a.
Depreciation. Agency and public reimbursable sources shall
use the Useful Life and Disposal Value Table to calculate residual value,
and The Federal Accounting Standards for Property, Plant and Equipment
(both documents are posted on the OMB website) to establish depreciation
schedules, rates of depreciation, and other related guidance. If a capital
asset is (1) fully depreciated; (2) used in the tender; and (3) not
provided to all prospective providers as GFP in the solicitation, agency
and public reimbursable sources shall extend the life of the capital
asset for all performance periods through the end of the last performance
period stated in the solicitation or until replacement. Agency and public
reimbursable sources shall calculate the depreciation using the extended
life and original acquisition cost. If a capital asset involves a capital
improvement, agency and public reimbursable sources shall calculate
the cost of the capital improvement as a separate asset in cost estimates
and enter this cost on Line 3 or 3a, as appropriate. The cost of capital
improvements shall be entered as a separate asset entry because capital
improvement costs are depreciated from the date of the capital improvement,
not from the original acquisition date. The total depreciable acquisition
cost is the sum of the capital asset’s acquisition, transportation,
and installation costs minus the capital asset’s residual value.
COMPARE automatically computes the costs required for this entry based
upon the cost data entered for this line.
(1) Minor Items. Minor items are individual assets costing
less than $25,000. Agency and public reimbursable sources shall not depreciate
minor items in cost estimates.
(2) Capital Assets. Capital assets are major items costing
$25,000 or more. An agency shall depreciate capital assets not provided
to all prospective providers as GFP in the solicitation and enter the
depreciation cost on Line 3 or 3a, as appropriate. If a capital asset
is (a) to be jointly used in the agency tender (e.g., MEO) and another
agency activity that is not included in the streamlined or standard competition,
and (b) not provided to all prospective providers as GFP in the solicitation,
an agency shall prorate the cost of this joint usage of the capital asset
on Line 3. For capital assets not provided as GFP but needed to meet the
requirements of the solicitation, a public reimbursable source shall calculate
depreciation costs for major items in the cost estimate and enter the
cost on Line 3a beginning with the first performance period the major
item is required and all subsequent performance periods stated in the
solicitation. COMPARE automatically computes the costs required for this
entry based upon the cost data entered for this line.
(3) Calculation Method. Agency and public reimbursable
sources shall calculate depreciation using straight line accounting methods
and enter this depreciation on Line 3 or Line 3a, as appropriate, as annual
depreciation for each performance period stated in the solicitation. If
a major item was acquired through transfer, seizure or forfeiture, an
industry specific standard or engineering appraisal may be used to establish
the market or "acquisition" value of the asset. COMPARE automatically
computes the costs required for this entry based upon the cost data entered
for this line.
b.
Facilities. If facilities are not provided to all prospective
providers as GFP in the solicitation, an agency shall use the useful
life expectancies listed by type of facility in Figure C4. to estimate
the cost of facilities in the agency cost estimate and enter this cost
on Line 3 or 3a, as appropriate. If the useful life has been exceeded,
an agency shall use an engineering projection of anticipated remaining
useful life. An agency shall prorate these costs in the agency cost
estimate by a unit of measure that varies directly with consumption
(e.g., floor space, type of facility, number of telephones). An agency
shall base estimates of expenses to be incurred for the first period
of full performance on recent experience, appropriately adjusted for
anticipated requirements. An agency shall use engineering estimates
when historical data is not available. If an asset such as a facility
has a capital improvement (such as renovation), an agency shall calculate
the cost of the capital improvement (renovation costs) as a separate
asset in the agency cost estimate. The cost of capital improvements
is calculated as a separate asset because the capital improvement costs
(renovation costs) are depreciated from the date of the capital improvement
(renovation) not the original acquisition or construction date. An agency
shall include costs for facilities and equipment used in the agency
tender, but not provided to all prospective providers as GFP in the
solicitation, on Line 3. For facilities not provided as GFP but needed
to meet the requirements of the solicitation, a public reimbursable
source shall calculate facilities costs in accordance with this paragraph,
reflect these costs in the cost estimate, and enter the costs on Line
3a. COMPARE automatically computes the costs required for this entry
based upon the cost data entered for this line.
c. Cost of Capital. An agency shall only calculate the
cost of capital for capital assets included in the agency cost estimate
if the item is (1) not provided to all prospective providers as GFP in the
solicitation, and (2) scheduled for purchase within any of the performance
periods stated in the solicitation. An Agency shall enter the appropriate
cost of capital costs on Line 3. To estimate the annual cost of capital,
an agency shall first identify the total depreciable acquisition cost of
new purchased capital assets or the market value of capital assets acquired
by transfer, forfeiture or seizure. An agency shall base the total depreciable
acquisition cost on the value of the capital asset, plus transportation
costs (if not already included in the purchase price) and installation costs
to place the capital asset in operation minus any applicable residual value.
An agency shall compute the cost of capital by applying the applicable nominal
rate (cost of capital factors) provided by OMB Circular A-94, Guidelines
for Discount Rates for Benefit-Cost Analysis of Federal Programs, to the
determined total depreciable acquisition cost of the purchased capital assets
or to the market value of capital assets acquired by transfer, forfeiture
or seizure. If a major item is to be jointly used between the tender (e.g.,
MEO) and another agency activity that is not included in the streamlined
or standard competition, an agency shall prorate the capital asset’s
cost of capital on Line 3 based on the percentage used by the agency. For
capital assets not provided to all prospective providers as GFP in the solicitation,
but needed to meet the requirements of the solicitation, a public reimbursable
source shall calculate the cost of capital in accordance with this paragraph,
reflect this cost in the cost estimate, and enter the costs on Line 3a.
COMPARE automatically computes the costs required for this entry based upon
the cost data entered for this line.
d. Rent. If rented or leased assets are used in the agency
tender but are not provided to all prospective providers as GFP in the solicitation,
an agency shall calculate rental and lease costs in the agency cost estimate
and enter the cost on Line 3. Rent is incurred for, but not limited to,
the use, operation and maintenance of land, building space, plant and machinery.
An agency shall calculate rental or lease costs that are associated with
the agency tender on an allocated basis for all performance periods for
which the costs will be incurred. For rent not provided as GFP but needed
to meet the requirements of the solicitation, a public reimbursable source
shall calculate rental and/or lease costs in accordance with this paragraph,
reflect these costs in the cost estimate, and enter the costs on Line 3a.
Agencies shall determine and manually input the cost data for this cost
entry into COMPARE.
e. Utilities. If utilities are provided for the agency
tender but are not provided for all prospective providers as GFP in the
solicitation, an agency shall calculate and enter the cost of utilities
on Line 3. Utility costs include, but are not limited to, electricity, telephone,
water, and sewage services. An agency shall calculate the amount of these
utility costs on an allocated or a metered basis for all performance periods
for which costs will be incurred. For utilities not provided as GFP but
needed to meet the requirements of the solicitation, a public reimbursable
source shall calculate costs for utilities in accordance with this paragraph,
reflect these costs in the cost estimate, and enter the costs on Line 3a.
Agencies shall determine and manually input the cost data for this cost
entry into COMPARE.
f. Insurance.
(1) Casualty Insurance. Agency and public reimbursable
sources shall calculate casualty insurance premiums in cost estimates
and enter these costs on Line 3 or Line 3a as appropriate for all materials
and supplies, minor items, and capital assets that are not provided to
all prospective providers as GFP in the solicitation, or if the solicitation
includes terms that specify that property losses may be assessed to private
sector sources. Agency and public reimbursable sources shall calculate
casualty insurance premiums for capital assets by multiplying the net
book value of each capital asset as of the beginning of each performance
period that the agency will use the capital asset by 0.005 (the casualty
insurance cost factor). Agency and public reimbursable sources shall calculate
casualty insurance premiums for minor items not provided to all prospective
providers by multiplying the annual cost, inflated as appropriate, of
each minor item by 0.005 (the casualty insurance cost factor). Agency
and public reimbursable sources shall calculate casualty insurance premiums
for materials and supplies by multiplying a one-month average value of
material and supplies by 0.005 (the casualty insurance cost factor) times
a one-month average value of material and supplies. Agency and public
reimbursable sources shall calculate casualty insurance premiums for each
performance period that they will use the capital assets, minor items,
materials, and supplies. COMPARE automatically calculates this entry if
the items are not government furnished. Agencies shall determine and manually
input the cost data into COMPARE for solicitations that specify that property
losses may be assessed to private sector sources.
(2) Government Furnished Property (GFP) Casualty Insurance.
While the FAR includes many GFP clauses that may be included in a solicitation,
the following table provides an extract of FAR GFP clauses that a solicitation
is likely to contain for a standard competition. The GFP clause, included
in the solicitation, determines whether casualty insurance costs for GFP
should be included on Line 3 or Line 3a, as appropriate. For solicitations
that include both firm-fixed-price and cost reimbursement CLINs in section
B, the solicitation identifies the GFP clause that applies to a specific
CLIN. For example, the solicitation may apply FAR clause 52.245-5 to the
material and supply ceiling cost, indicating that insurance is not required
for the material and supply dollars. The same solicitation may designate
FAR clause 52.245-2 to GFP vehicles, indicating that the vehicles require
casualty insurance. When vehicles leased from the General Services Administration
are used in the agency tender but are not provided to all prospective
providers as GFP in the solicitation, an agency shall include the cost
of casualty insurance on Line 3 if the General Services Administration
lease terms make the lessee liable for vehicle damage. Based upon the
FAR provisions included in the solicitation, agencies may be required
to determine and manually input the cost data into COMPARE.
(3) Liability Insurance. Agency and public reimbursable
sources shall calculate the cost of personnel liability insurance in cost
estimates and enter the cost on Line 3 or Line 3a, as appropriate. Agency
and public reimbursable sources shall calculate the cost of personnel
liability insurance by multiplying the total personnel-related costs on
Line 1 (or Line 1a, as appropriate) by 0.007 (the personnel liability
insurance cost factor). Agency and public reimbursable sources shall calculate
the cost of additional liability insurance (not associated with personnel
liability) that is assigned to the private sector in the solicitation
by multiplying the estimated liability ceiling identified in the solicitation
by 0.007 (the personnel liability insurance cost factor). If the solicitation
requires additional liability insurance to cover certain high-risk activities
(e.g., environmental, air traffic control, child care, ammunition handling,
air cargo, nuclear fuel handling), agency and public reimbursable sources
shall calculate the cost of this additional liability insurance in cost
estimates and enter this cost on Line 3 or Line 3a, as appropriate. COMPARE
automatically calculates this entry.
g.
Travel. Agency and public reimbursable sources shall calculate
the costs for travel not provided as government furnished to all prospective
providers in the solicitation and enter these costs on Line 3 or Line
3a, as appropriate. Agency and public reimbursable sources shall calculate
the projected cost of travel that will be expended by agency or public
reimbursable sources and identified in tenders unless the solicitation
includes a ceiling cost for travel reimbursement or states that travel
is government-furnished for all prospective providers. If the solicitation
includes a cost ceiling for travel, agency and public reimbursable sources
shall include the cost ceiling in cost estimates and enter the cost
on Line 3 or Line 3a, as appropriate. Unless a cost ceiling is provided,
agency and public reimbursable sources shall inflate travel costs for
all performance periods through the end of the last performance period
stated in the solicitation or as required by the economic price adjustment
clause in the solicitation. Agencies shall determine and manually input
the cost data for this cost entry into COMPARE.
h.
MEO Subcontracts. Agency and public reimbursable sources shall
include the cost of each subcontract included in a tender but not made
available to all prospective providers in the solicitation as a subcontract
in cost estimates and enter the costs on Line 3 or Line 3a, as appropriate.
Agency and public reimbursable sources shall calculate the total cost
of a subcontract by including the following in cost estimates (1) the
contract price for each contract, or cost estimate for each fee-for-service
agreement; (2) the cost of any related government-furnished material,
equipment, facilities, and services not provided to all prospective
providers as GFP in the solicitation; (3) inflation for all performance
periods through the end of the last performance period stated in the
solicitation, as appropriate; and (4) the offset for federal income
tax for each subcontract with the tax rate applicable to each subcontract
(see paragraph C12. in this attachment). Agencies shall determine and
manually input the cost data for this cost entry into COMPARE. COMPARE
automatically computes the applicable inflation and federal income tax
offset.
(1) Nonrecurring Workload. Agency and public reimbursable
sources may calculate overtime and surge or other types of nonrecurring
workload as an MEO subcontract cost, if the services are purchased using
either a government purchase card or a task order under an existing contract.
When purchasing services with a government purchase card or task order
under an existing contract, agencies and public reimbursable sources shall
calculate the cost of the purchased services in the cost estimate and
include (a) the offset for federal income tax for each subcontract with
the tax rate applicable to each subcontract (see the “Federal Income
Tax Adjustment” paragraph in this attachment), and (b) inflation
for all performance periods through the end of the last performance period
stated in the solicitation, as appropriate.
(2) Administration and Surveillance of Subcontracts.
Agencies and public reimbursable sources shall calculate the cost of labor
for (a) the administration and surveillance for each subcontract (for
both recurring and nonrecurring workload); and (b) administration of the
government purchase card program.
i.
Maintenance and Repair Costs. Agency and public reimbursable
sources shall calculate the cost of maintenance and repair, if applicable,
for capital assets and minor items to account for the cost of routine
maintenance on buildings and for equipment and enter these costs on
Line 3 or 3a, as appropriate. These costs do not include capital improvements
that add value to a capital asset, which are calculated in depreciation
costs. Agency and public reimbursable sources shall calculate maintenance
and repair costs (1) for capital assets and minor items that are not
provided to all prospective providers as GFP in the solicitation, and
(2) for capital assets or minor items that are provided to all prospective
service providers as GFP in the solicitation but maintenance, replacement,
or repair are not provided as GFP in the solicitation. Agencies shall
determine and manually input the cost data for this cost entry into
COMPARE.
j.
Other Costs. Agencies and public reimbursable sources shall
include costs that do not fit the other Line 3 or Line 3a categories
of cost in the “other costs” category of Line 3 or Line
3a. Examples of "other costs" include, but are not limited
to, purchased services for packaging and crating (if not already a included
in the cost of material and supplies), transportation costs; royalties,
overhead projectors, office equipment, tools, chairs, desks, and cabinets.
(1) Minor Items. As part of “other costs,”
agencies shall include 10 percent of the replacement cost of minor items
not provided to all prospective providers as GFP in the solicitation,
for each performance period included in the solicitation. If the minor
item is (a) to be jointly used by the agency tender (e.g., MEO) and another
agency activity that is not included in the streamlined or standard competition,
and (b) not provided to all prospective providers as GFP in the solicitation,
an agency shall prorate the cost of this joint usage of a minor item on
Line 3 based upon 10 percent of the purchase price. For minor items not
provided as GFP but needed to meet the requirements of the solicitation,
a public reimbursable source shall calculate 10 percent of the replacement
value of the minor items in the cost estimate and enter the cost on Line
3a, beginning with the first performance period the public reimbursable
source expects to replace the minor item and for all subsequent performance
periods stated in the solicitation. For minor items, and any necessary
replacements, that are provided as GFP in the solicitation, agencies and
public reimbursable sources shall not include costs. When minor items
are provided as GFP and prospective providers are responsible for replacement,
agencies and public reimbursable sources shall include 10 percent of the
replacement cost of the minor items in cost estimates, beginning with
the first performance period where replacement of the minor item is required
and all subsequent performance periods stated in the solicitation. Agencies
and public reimbursable sources shall include costs for casualty insurance
of minor items that are not GFP, including instances where the replacement
of the minor items is the responsibility of prospective providers. Agencies
shall determine and manually input the cost data for this SCF/SLCF line
into COMPARE. COMPARE automatically computes the 10 percent minor item
replacement cost.
(2) Award Fee. Before a solicitation may include an award
fee for an agency source (in addition to other prospective providers),
the CSO shall determine if an agency source may receive such an award
fee. If the award fee arrangements are approved by the CSO and the solicitation
states that the award fee will be available for all prospective providers,
the agency shall include the award fee in the cost estimate and enter
the fee on Line 3 as “other costs.” A public reimbursable
source shall include the award fee in the cost estimate and enter the
fee on Line 3a as “other costs.” Agency and public reimbursable
sources shall not inflate the cost of the award fee in cost estimates.
Agency and public reimbursable sources shall not inflate the cost of the
award fee in cost estimates. Agencies shall determine and manually input
the cost data for this cost entry into COMPARE.
(3) Training Costs. Agency and public reimbursable sources
shall calculate training costs for training not made available as government
furnished to all prospective providers in the solicitation and enter these
costs on Line 3 or 3a, as appropriate. Agency and public reimbursable
sources shall calculate training costs, including travel costs, for recurring
and/or specialized training necessary to maintain required licensing or
certification. Agencies shall determine and manually input the cost data
for this cost entry into COMPARE.
5. Overhead (SCF/SLCF Line 4/4a). Agency and public reimbursable
sources shall enter overhead in cost estimates on Line 4 or 4a, as appropriate.
An agency shall include overhead for a standard or streamlined competition
by overhead for each performance period by multiplying the SCF Line 1 civilian
position costs, including fringe benefits, by 12 percent (the overhead factor).
A public reimbursable cost estimate shall include overhead for a streamlined
or standard competition by calculating overhead for each performance period
by multiplying the SCF Line 1a civilian position costs, including fringe
benefits, by 12 percent (the overhead factor). Agency and public reimbursable
sources shall not calculate overhead for uniformed services labor costs.
COMPARE automatically calculates this SCF/SLCF line.
6. Additional Costs (SCF Line 5/5a). This SCF line includes
costs not otherwise represented or accounted for on Lines 1-4 or Lines 1a-4a.
An agency shall enter additional costs on SCF Line 5. A public reimbursable
source shall enter additional costs on SCF Line 5a. Additional costs include,
but are not limited to, costs resulting from unusual or special circumstances.
When these costs are included the source shall provide additional documentation
to explain the underlying assumptions and methods of computation. Agency
and public reimbursable sources shall include sufficient written documentation
of all additional costs included in cost estimates for the CO to conduct
price analysis and cost realism as required by Attachment B. Agencies and
public reimbursable sources shall not use Line 5 or Line 5a in a streamlined
competition. Agencies shall determine and manually input the cost data for
this SCF/SLCF line into COMPARE.
a.
Expansions of Existing Activities, New Requirements, or Conversions
From Private Sector to Agency Performance. An agency shall
enter the one-time additional costs of an expansion, new requirement
or conversion from a private sector or public reimbursable source to
agency performance on Line 5. An agency shall not include any new investment
by the agency in facilities and equipment as one-time costs. An agency
shall include the costs incurred when acquiring facilities or equipment
and installing the equipment in the capitalized cost. Government facilities
and equipment shall not normally be expanded to accommodate new or expanded
agency requirements if cost-effective private sector or public reimbursable
facilities and equipment are available. If the agency tender is dependent
upon the agency’s purchase or construction of new facilities or
other capital asset purchases, the standard competition should be delayed
until the approval to purchase or construct such items is obtained.
b.
Medical Physical Exams. Agency and public reimbursable sources
shall calculate the costs associated with the civilian safety and health
requirements of 29 C.F.R., including medical physical examinations,
and enter these costs on Line 5 or 5a, as appropriate. The cost of performing
medical physical exams is not included in the 12 percent overhead factor.
These medical physical exams are a direct cost to all prospective providers.
7. Total Cost of Agency Performance (SCF/SLCF Line 6/6a).
The total agency cost estimate calculated on Line 6 is the sum of Lines
1-5. The total public reimbursable cost estimate calculated on Line 6a is
the sum of Lines 1a-5a. COMPARE automatically calculates this SCF/SLCF line.
C.
ADJUSTED COST OF PRIVATE SECTOR OR PUBLIC REIMBURSABLE PERFORMANCE (SCF/SLCF
LINES 7-13).
1. Contract Price or Public Reimbursable Cost Estimate (SCF/SLCF
Line 7). In a standard competition, the CO shall enter the private
sector contract price(s), or public reimbursable cost estimate(s) on SCF
Line 7, as appropriate. In a streamlined competition, the agency shall enter
an estimated contract price or public reimbursable cost estimate on SLCF
Line 7.
a.
Contract Price. If a contract price(s) is entered on Line 7,
the CO shall comply with the source selection process requirements in
Attachment B and shall determine the contract price based on the contract
type stated in the solicitation.
(1) Sealed Bid Acquisition. The CO shall enter the firm
fixed price of the low responsible, responsive private sector offeror
on Line 7.
(2) Negotiated Acquisition.
(a) Firm Fixed Price Contract. The CO shall enter the
negotiated contract price on SCF Line 7.
(b) Firm Fixed Price Incentive Fee Contract. The CO
shall enter the target cost and target profit on SCF Line 7.
(c) Cost-Reimbursement Contracts (FAR 16.3).
1.
Cost Plus Incentive Fee Contract. The CO shall
enter the negotiated estimated cost plus incentive fee.
2.
Cost Plus Award Fee Contract. The CO shall enter the negotiated
estimated cost plus award fee.
3.
Cost Plus Fixed Fee Contract. The CO shall enter the negotiated
estimated cost plus fixed fee.
4.
Cost Sharing Contract. The CO shall enter the negotiated
estimate.
b.
Public Reimbursable Cost Estimate. If a cost estimate is submitted
by a public reimbursable source(s), the CO shall make the following
calculations to determine the cost to enter on SCF/SLCF Line 7 (1) calculate
the federal tax adjustment for any private sector contract price(s);
(2) subtract this federal tax calculation from the private sector contract
price(s); (3) compare these adjusted private sector contract price(s),
with all public reimbursable cost estimate(s) to determine the lowest
cost provider; and (4) enter the lowest cost on SCF/SLCF Line 7. The
CO shall enter the cost estimate submitted by a tax exempt organization
on SCF/SLCF Line 7 only if the calculations required by this paragraph
indicate the tax exempt organization is the lowest cost provider. The
CO shall document these calculations as part of the SCF supporting documentation.
c.
Tax-Exempt Organization. If a cost estimate is submitted by
a tax-exempt organization(s), the CO shall make the following calculations
to determine the cost to enter on SCF/SLCF Line 7 (1) calculate the
federal tax adjustment for any non-tax-exempt contract price(s); (2)
subtract this federal tax calculation from non-tax-exempt contract price(s);
(3) compare these adjusted private sector contract price(s), with any
tax-exempt organization(s) cost estimates and any public reimbursable
cost estimate(s) to determine the lowest cost provider; and (4) enter
the lowest cost on SCF Line 7. The CO shall enter the cost estimate
submitted by a tax exempt organization on SCF/SLCF Line 7 only if the
calculations required by this paragraph indicate the tax exempt organization
is the lowest cost provider. The CO shall document these calculations
as part of the SCF supporting documentation.
d.
Performance Bond. When a solicitation requires private sector
sources to provide a performance bond, the CO shall exclude the cost
from the private sector source’s contract price on SCF Line 7.
The solicitation bid structure should facilitate the elimination of
this cost (see Attachment B).
2. Contract Administration Costs (SCF/SLCF Line 8). An
agency shall calculate and enter contract administration costs on Line 8
using the Contract Administration Cost Factors and Allowable Grades in Figure
C6. based on the total MEO staffing (total Line 1 FTEs plus an estimate
of labor for MEO subcontracts). These contract administration cost factors
account for a full range of labor and non-labor requirements for contract
administration. Contract administration costs include the costs associated
with reviewing compliance with the terms of the contract, processing payments,
negotiating change orders, and monitoring the closeout of contract operations.
An agency shall not include the cost of surveillance performed by quality
assurance evaluators, as required by the quality assurance surveillance
plan, on SCF Line 8, since these are common costs regardless of the source
of the selected service provider (i.e., agency, public reimbursable, private
sector). Agencies shall inflate contract administration costs using the
Labor Inflation Cost Factors for Civilian Positions in Figure C1. COMPARE
automatically computes the costs required for this SCF/SLCF line based on
the factors in Figure C6. and agencies shall not include any other contract
administration costs.
3. Additional Costs (SCF Line 9). SCF Line 9 shall include
any additional costs to the agency, such as transportation or purchased
services, resulting from unusual or special circumstances. An agency shall
document these additional costs to describe the nature of the cost item,
and indicate the reason the additional cost will not be incurred if the
activity is performed by the agency source. When performance of an activity
is converted from agency performance to either a private sector or public
reimbursable source and the agency elects to retain existing equipment and
facilities on standby, solely for the purpose of maintaining an agency performance
capability, an agency shall not add these standby costs to the cost of the
private sector or public reimbursable performance on SCF Line 9. An agency
source shall include sufficient written documentation of all additional
costs included in cost estimates for the CO to conduct price analysis and
cost realism as required by Attachment B. Agencies shall not calculate Line
9 in a streamlined competition. Agencies shall determine and manually input
the cost data for this SCF/SLCF line into COMPARE.
a.
Nonprofit Agency Fees. When a Javits-Wagner-O'Day participating
nonprofit agency (as defined by FAR Part 8), such as NISH or the National
Institute for the Blind, participates in a standard competition, the
CO shall include the 4 percent fee paid to the Committee for Purchase
from People Who Are Blind, NISH, or National Institute for the Blind
on SCF Line 9. The CO shall determine if the 4 percent is included in
or excluded from the contract price. If the 4 percent is included in
the contract price, the CO shall enter the contract price on SCF Line
7 and shall not enter the 4 percent on SCF Line 9. If the 4 percent
is excluded from the contract price, the CO shall enter the contract
price on SCF Line 7 and shall enter the 4 percent fee on SCF Line 9.
b.
Incentive Fees. When an Indian Tribe competes as a private
sector source in a standard competition, or is a subcontractor to a
competing private sector source, and the Indian Incentive Program described
in FAR Part 26 is authorized, the CO shall include the 5 percent incentive
fee identified in FAR Part 26 on SCF Line 9.
4. One-time Conversion Costs (SCF Line 10). When an agency
converts an activity performed by government personnel to a private sector
or public reimbursable source, one-time conversion costs may be incurred
by the agency. An agency source shall include sufficient written documentation
of all one-time conversion costs included in cost estimates for the CO to
conduct price analysis and cost realism as required by Attachment B. Agencies
shall not calculate Line 10 in a streamlined competition. Agencies shall
calculate one-time conversion costs for severance costs and other costs
as provided below and shall not calculate any other one-time conversions
costs. COMPARE automatically calculates this SCF/SLCF line.
a.
Severance Costs. An agency shall calculate one-time conversion
costs for severance pay at 4 percent (the Severance Pay One-time Conversion
Cost Factor) of SCF Line 1 basic pay, adjusted for inflation, for the
first period of full performance (not the phase-in period) stated in
the solicitation. If the first period of full performance is less than
one full year, an agency shall annualize the basic pay only for the
purpose of determining one full year of severance pay one-time conversion
costs.
b.
Other Costs. An agency shall calculate other one-time conversion
costs as 1 percent (the Other Pay One-time Conversion Cost Factor) of
SCF Line 1 basic pay, adjusted for inflation, for the first period of
full performance stated in the solicitation (not the phase-in period).
Agencies shall not calculate any other one-time conversion costs except
this 1 percent. This “other cost” accounts for all other
one-time conversion costs such as relocation and retraining. If the
first period of full performance (not the phase-in period) is less than
one full year, an agency shall annualize the basic pay only for the
purpose of determining one full year of other pay one-time conversion
costs.
c.
Annualize Basic Pay. To annualize basic pay, divide the total
inflated basic pay reflected in the first period of full performance
on SCF Line 1 by the number of days in the second performance period
and then multiply the result by 365.25 days (which accounts for leap
year).
5. Gain on Assets (SCF Line 11). An agency shall calculate
the estimated gain on assets on SCF Line 11, with supporting documentation
to justify the type and calculation of asset disposal or transfer. The SCF
Line 11 entry is the gain from the sale or transfer of government assets
at the net book value of the asset as of the start date of the first performance
period. An agency shall calculate this gain to account for government material
or equipment included in the agency tender when this material or equipment
(a) is not provided to all prospective providers as GFP in the solicitation
and (b) is not needed by the agency if the standard competition results
in either a private sector or public reimbursable performance decision.
This gain on assets generates revenue for the government; therefore, the
cost reduces the total cost of private sector or public reimbursable performance.
An agency shall only enter a negative number or zero on SCF Line 11 to represent
a gain on assets. An agency source shall include sufficient written documentation
of all gain on assets costs included in cost estimates for the CO to conduct
price analysis and cost realism as required by Attachment B. Agencies shall
not calculate Line 11 in a streamlined competition. COMPARE automatically
calculates this SCF/SLCF line after the agency manually selects the period
in which the capital asset is disposed of or transferred.
6. Federal Income Tax Adjustment (SCF/SLCF Line 12). The
cost entered on Line 12 represents revenue generated for the government
that is subtracted from the total cost of private sector performance. An
agency shall only enter these costs as a negative number, unless the private
sector source is a tax-exempt organization. When entering the contract price,
the CO shall determine and enter the appropriate industry code from the
Tax Rate Table, which is based on the North American Industry Classification
System, to calculate Line 12. An agency shall use the Tax Rate Table on
the OMB website to calculate Line 12 for each performance period stated
in the solicitation. An agency shall enter on Line 12 the net increase of
federal income tax that is expected if a performance decision results in
a conversion from agency performance to private sector performance. The
Internal Revenue Service provides the Tax Rate Table by types of industry
and appropriate tax rates in relation to business receipts. The industry
groupings are based on the North American Industry Classification System.
COMPARE automatically calculates this SCF/SLCF line based on the tax rate
table entry input by an agency.
7. Total Adjusted Cost of Private Sector or Public Reimbursable
Performance (SCF/SLCF Line 13). In a standard competition, the
cost on Line 13 represents the total cost to the government of private sector
performance (or public reimbursable performance if a public reimbursable
cost estimate is entered on SCF Line 7), which is the sum of SCF Lines 7,
8, 9, 10, 11, and 12. In a streamlined competition, the cost on Line 13
represents the total cost to the government of private sector performance
(or public reimbursable performance if a public reimbursable cost estimate
is entered on SLCF Line 7), which is the sum of SLCF Lines 7, 8, and 12.
COMPARE automatically calculates this SCF/SLCF line. D.
CONVERSION DIFFERENTIAL (SCF LINE 14). An agency shall calculate
the conversion differential by multiplying SCF Line 1 personnel costs
for all performance periods by 10 percent. If the calculated conversion
differential is less than $10 million, the agency shall enter the calculated
conversion differential on Line 14. If the calculated conversion differential
is greater than or equal to $10 million, the agency shall enter $10 million
on Line 14. Agencies shall not calculate Line 14 in a streamlined competition.
COMPARE automatically calculates this SCF/SLCF line.
1. Expansions, New Requirements, or Conversions From Contract To
Agency Performance. An agency shall add the conversion differential
to SCF Line 6 of the agency cost estimate when an agency is performing a
standard competition and the potential exists for (a) a conversion from
a private sector provider (contract performance) to agency performance with
government personnel; (b) agency performance of a new requirement with government
personnel; or (c) agency performance with government personnel of an expansion
of requirements for an existing commercial activity. Since agency performance
of a new requirement or an expansion of an existing commercial activity
is justified based upon a standard competition, an agency shall calculate
the conversion differential as if the private sector source is the incumbent
provider for a new requirement or an expansion of an existing commercial
activity. For a standard competition of an expansion, the conversion differential
is distributed to agency, private sector, and public reimbursable sources
based on the percentage of SCF Line 1 attributed to the expansion workload,
as follows:
a.
Standard Competition of a Segregable Expansion. For a standard
competition of the segregable 30 percent of an expansion, an agency
shall add all of SCF Line 14 (conversion differential) to the total
cost of agency performance reflected on SCF Line 6 to generate the adjusted
total cost of agency performance on SCF Line 15.
b.
Standard Competition of Activity and Expansion. For a standard
competition of an entire expansion of a commercial activity (i.e., the
existing commercial activity performed by government positions plus
the 30+ percent expansion), an agency shall (1) multiply the conversion
differential on SCF Line 14 by the percentage of government position
costs on SCF Line 1 that represents the expansion of recurring workload;
(2) add the result to the total cost of agency performance reflected
on SCF Line 6; and (3) enter the adjusted total cost of agency performance
on SCF Line 15. The agency shall (1) multiply the percentage of SCF
Line 1 (personnel) costs that represents the agency work currently performed
by SCF Line 14 (conversion differential); (2) add the result to the
total cost of private sector or public reimbursable performance on SCF
Line 13; and (3) enter the total adjusted cost of private sector or
public reimbursable performance on SCF Line 16. The agency shall divide
the total SCF Line 1 costs assigned to the expanded work for all performance
periods by the total SCF Line 1 costs for all performance periods to
generate the percentage of agency position costs for the expanded work.
To generate the percentage of agency position costs for the work performed
by the agency, the agency shall divide the total SCF Line 1 costs assigned
to the work performed by the agency for all performance periods by the
total SCF Line 1 costs for all performance periods.
2. Partial Conversion From Private Sector to Agency Performance.
For a standard competition of a commercial activity where the incumbent
providers are a combination of private sector and agency sources, and the
agency tender converts the portion of the work performed by the private
sector performance to agency performance using government positions, the
agency shall apportion the conversion differential to each source based
upon the percentage of work performed by each incumbent source at the time
of public announcement. Therefore, an agency shall calculate the conversion
differential as follows: (a) calculate the conversion differential for the
agency tender, (b) calculate the value of the conversion differential for
the work performed by the private sector that will be converted to agency
performance using government positions, and (c) enter the difference on
SCF Line 14. If the agency tender includes an MEO subcontract, the agency
shall not calculate any conversion differential for the MEO subcontract
on the SCF.
E.
ADJUSTED TOTAL COST OF AGENCY PERFORMANCE (SCF LINE 15). If a
standard competition is conducted to determine whether a commercial activity
should be converted from private sector or public reimbursable performance
to agency performance, the agency shall add the conversion differential
from SCF Line 14 to SCF Line 6 and enter the sum on SCF Line 15. The total
amount for all performance periods on SCF Line 13 is then replicated on
SCF Line 16. Agencies shall not calculate Line 15 in a streamlined competition.
COMPARE automatically calculates this SCF/SLCF line.
F.
ADJUSTED TOTAL COST OF PRIVATE SECTOR OR PUBLIC REIMBURSABLE PERFORMANCE
(SCF LINE 16). If a standard competition is conducted to determine
whether an activity should be converted from agency performance to private
sector or public reimbursable performance, the agency shall add the conversion
differential from SCF Line 14 to SCF Line 13 and enter the sum on SCF
Line 16. The total amount for all performance periods on SCF Line 6 is
then replicated on SCF Line 15. Agencies shall not calculate Line 16 in
a streamlined competition. COMPARE automatically calculates this SCF/SLCF
line.
G.
THE COST DIFFERENCE (SCF/SLCF LINE 17). In a standard competition,
the agency shall calculate the cost difference by subtracting SCF Line
15 from SCF Line 16 and shall enter the sum on SCF Line 17. In a streamlined
competition, the agency shall calculate the cost difference by subtracting
SLCF Line 13 from SLCF Line 6 and shall enter the sum on SLCF Line 17.
COMPARE automatically calculates this SCF/SLCF line.
H.
LOW-COST PROVIDER (SCF/SLCF LINE 18). For a low-cost decision
in a standard competition, a positive number on Line 17 indicates a decision
for agency performance by government personnel, and a negative number
indicates a decision for a private sector or public reimbursable performance.
For either a low-cost decision or an other-than-low-cost decision in a
standard competition, the SSA’s decision is indicated by an “x”
on SCF Line 18. For an other-than-low-cost decision, the SSA shall document
the reasons for such a decision in accordance with Attachment B. For a
streamlined competition, the cost difference entered on SLCF Line 17 indicates
the low cost performance decision. COMPARE automatically calculates this
SCF/SLCF line.
Attachment
D
ACRONYMS
AND DEFINITIONS
A. ACRONYMS.
B.
DEFINITIONS. Agencies shall use these definitions to implement
and comply with this circular and the Attachments.
Activity.
A specific task or grouping of tasks that provides a specialized capability,
service or product based on a recurring government requirement. Depending
on the grouping of tasks, an activity may be an entire function or may
be a part of a function. An activity may be inherently governmental or
commercial in nature.
Adversely
Affected Employees. Federal civilian employees serving competitive
or excepted service appointments in Tenure Groups I, II, or III, who are
identified for release from their competitive level by an agency, in accordance
with 5 C.F.R. Part 351 and 5 U.S.C. Chapter 35, as a direct result of
a performance decision resulting from a streamlined or standard competition.
Agency
Cost Estimate. The part of the agency tender in a standard competition
that includes the agency’s cost proposal and represents the full
cost of agency performance of the commercial activity, based on the requirements
in the solicitation and the costing policy in Attachment C. The agency
cost estimate for a streamlined competition is developed in accordance
with Attachments B and C.
Agency
Performance. Performance of a commercial or inherently governmental
activity with government personnel. Often referred to as “in-house
performance.”
Agency
Source. A service provider staffed by government personnel.
Agency
Tender. The agency management plan submitted in response to a
solicitation for a standard competition. The agency tender includes an
MEO, agency cost estimate, MEO quality control plan, MEO phase-in plan,
and copies of any MEO subcontracts (with the private sector providers’
proprietary information redacted). The agency tender is prepared in accordance
with Attachment B and the solicitation requirements.
Agency
Tender Official (ATO). An inherently governmental agency official
with decision-making authority who is responsible for the agency tender
and represents the agency tender during source selection.
Annualize.
The calculation method to convert a cost to an annual basis.
The calculation converts a cost for a performance period that is less
than one full year into an annual cost to correctly reflect the cost in
a government cost estimate. This calculation is performed by first dividing
the cost in the performance period by the number of days in the performance
period to determine the corresponding daily cost and then multiplying
the daily cost by 365.25 days to determine the annualized cost. To account
for leap years, 365.25 is the average number of days in a year.
Basic
Pay. Basic pay for GS employees is a position’s annual
salary plus any other applicable civilian employee pay entitlements. Basic
pay for FWS employees is a position’s annual wages including shift
differential pay and environmental pay, plus any other applicable civilian
employee pay entitlements. Examples of other civilian employee pay entitlements
include, but are not limited to, night differential pay for FWS employees,
environmental differential pay, and premium pay (for civilian employee
fire fighters and law enforcement officers).
Capital
Improvement. An expenditure for a physical improvement to an
existing capital asset such as additions and major alterations that are
intended to improve performance or increase useful life.
Civilian
Employee. An individual who works for a federal agency on an
appointment without time limitation who is paid from appropriated funds,
which includes working capital funds. A foreign national employee, temporary
employee, term employee, non-appropriated fund employee, or uniformed
personnel is not included in this definition.
Commercial
Activity. A recurring service that could be performed by the
private sector. This recurring service is an agency requirement that is
funded and controlled through a contract, fee-for-service agreement, or
performance by government personnel. Commercial activities may be found
within, or throughout, organizations that perform inherently governmental
activities or classified work.
Common
Costs. Specific costs identified in the solicitation that will
be incurred by the government regardless of the provider (private sector,
public reimbursable, or agency). Common costs are sometimes referred to
as wash costs. Examples of common costs include government-furnished property,
security clearances, and joint inventories.
COMPARE.
The windows-based A-76 costing software that incorporates the costing
procedures of this circular. Agencies must use COMPARE to calculate and
document the costs on the SLCF for a streamlined competition or the SCF
for a standard competition. The software is available through the SHARE
A-76! web site at http://emissary.acq.osd.mil/inst/share.nsf/.
COMPARE
Version Control Log. The document that describes each of the
changes made in a particular version of the COMPARE software. This document
includes a brief description of the change, the area of the software program
affected by the change, and the impact the change has on the SCF/SLCF
and/or documentation.
COMPARE
User's Guide. A detailed guidebook for actual users of COMPARE
that includes an in-depth explanation of the use and features of the COMPARE
software program.
COMPARE
Tables. A specific set of master tables incorporated into the
COMPARE costing software that includes all of the approved standard cost
factors and rates used to calculate the SCF/SLCF costs.
Competition.
A formal evaluation of sources to provide a commercial activity that uses
pre-established rules (e.g., the FAR, this circular). Competitions between
private sector sources are performed in accordance with the FAR. Competitions
between agency, private sector, and public reimbursable sources are performed
in accordance with the FAR and this circular. The term “competition,”
as used in this circular includes streamlined and standard competitions
performed in accordance with this circular, and FAR-based competitions
for agency-performed activities, contracted services, new requirements,
expansions of existing work, and activities performed under fee-for-service
agreement. The term also includes cost comparisons, streamlined cost comparisons,
and direct conversions performed under previous versions of OMB Circular
A-76.
Competition
File. The documents used in a standard competition in addition
to the government contract files required by FAR Subpart 4.8. Agencies
maintain this file regardless of the source selected to perform the activity.
Competition
Officials. The agency officials appointed before a standard competition
is announced. These individuals perform key roles and have essential responsibilities
for the successful completion of the standard competition. Competition
officials are the agency tender official, contracting officer, source
selection authority, human resource advisor, and PWS team leader.
Competitive
Sourcing Official (CSO). An inherently governmental agency official
responsible for the implementation of this circular within the agency.
Component.
An organizational grouping within an agency, such as a bureau, center,
military service, or field activity.
Contracting
Officer (CO). An inherently governmental agency official who
participates on the PWS team, and is responsible for the issuance of the
solicitation and the source selection evaluation methodology. The CO awards
the contract and issues the MEO letter of obligation or fee-for-service
agreement resulting from a streamlined or standard competition. The CO
and the SSA may be the same individual.
Conversion
From Contract. A change in the performance of a commercial activity
from a private sector provider to agency performance.
Conversion
To Contract. A change in the performance of a commercial activity
from agency performance to a private sector provider.
Depreciation.
The decline in the value of a capital asset. Depreciation represents a
cost of ownership and the consumption of an asset’s useful life.
Direct
Labor. Manpower resources dedicated to performing the requirements
of the solicitation and labor for supervision and management related support
to the tender (e.g., MEO) such as labor for quality control.
Directly
Affected Employees. Civilian employees whose work is being competed
in a streamlined or standard competition.
Directly
Affected Government Personnel. Government personnel whose work
is being competed in a streamlined or standard competition.
Directly
Interested Party. The agency tender official who submitted the
agency tender; a single individual appointed by a majority of directly
affected employees as their agent; a private sector offeror; or the official
who certifies the public reimbursable tender.
Divestiture.
An agency’s decision to eliminate a government requirement for a
commercial activity. No service contract or fee-for-service agreement
exists between the agency and the private sector after a divestiture.
By divesting of a commercial activity, an agency elects not to control
the activity and cedes ownership and control of the activity’s associated
assets (e.g., equipment, facilities, property) and resources (agency manpower
and budgeting for the activity). The agency has no role in the financial
support, management, regulation, or oversight of a divested activity.
Moving, transferring, or converting a commercial activity from government
performance to private sector or public reimbursable performance is not
a divestiture.
Employee
Transition Plan. A written plan developed by the HRA for the
potential transition of the agency’s civilian employees to an MEO,
or to private sector or public reimbursable performance. This plan is
developed early in the streamlined or standard competition process, based
on the incumbent government organization, to identify projected employee
impacts and the time needed to accommodate such impacts, depending on
the potential outcomes of the competition. The employee transition plan
differs from a phase-in plan, which is developed by prospective providers
responding to a solicitation.
End
Date. The end date for a streamlined or standard competition
is the date that all SCF certifications are completed, signifying an agency’s
performance decision.
Expansion.
An increase in the operating cost of an existing commercial activity
based on modernization, replacement, upgrade, or increased workload. An
expansion of an existing commercial activity is an increase of 30 percent
or more in the activity’s operating costs (including the cost of
FTEs) or total capital investment.
FedBizOpps.gov.
The website where the government electronically advertises solicitations
or requirements.
Fee-for-Service
Agreement. A formal agreement between agencies, in which one
agency provides a service (a commercial activity) for a fee paid by another
agency. The agency providing the service is referred to in this circular
as a public reimbursable source.
First
Period of Full Performance. The performance period following
the phase-in period when the service provider becomes fully responsible
for performing the activity. The first performance period is used to implement
the new service provider’s phase-in plan; therefore, full performance
of the service provider does not occur until the second performance period,
which may be referred to as the base period, full performance, or the
first period of full performance. This first period of full performance
may be less than or more than 12 months. The first period of full performance
is the second performance period (the performance period immediately following
phase-in period) regardless of the second performance period’s length.
Foreign
National Employee. An employee that is not a United States citizen
who is employed by the United States Government and works outside the
United States, its territories or possessions, under a system in which
an Executive Agency is the official employer of the foreign national employee
and assumes responsibility for all administration and management functions
associated with the employee’s employment.
Full-Time
Equivalent (FTE). The staffing of Federal civilian employee positions,
expressed in terms of annual productive work hours (1,776) rather than
annual available hours that includes non-productive hours (2,080 hours).
FTEs may reflect civilian positions that are not necessarily staffed at
the time of public announcement and staffing of FTE positions may fluctuate
during a streamlined or standard competition. The staffing and threshold
FTE requirements stated in this circular reflect the workload performed
by these FTE positions, not the workload performed by actual government
personnel. FTEs do not include military personnel, uniformed services,
or contract support.
Function
Code. The numerical code used to categorize an agency’s
commercial and inherently governmental activities for inventory reporting
purposes.
Government
Furnished Property (GFP). Facilities, equipment, material, supplies,
or other services provided by the government for use by all prospective
providers in the solicitation. Costs for GFP included in a solicitation
are considered common costs. Replacement costs, insurance, maintenance
and repair costs for GFP may or may not be government-furnished, depending
on the provisions in the solicitation.
Government
Personnel. Civilian employees, foreign national employees, temporary
employees, term employees, non-appropriated fund employees, and uniformed
services personnel employed by an agency to perform activities.
Human
Resource Advisor (HRA). An inherently governmental agency official
who is a human resource expert and is responsible for performing human
resource-related actions to assist the ATO in developing the agency tender.
Incumbent
Service Provider. The source (i.e., agency, private sector, or
public reimbursable source) providing the service when a public announcement
is made of the streamlined or standard competition.
Information
Technology. Any equipment or interconnected system(s) or subsystem(s)
of equipment used in the automatic acquisition, storage, manipulation,
management, movement, control, display, switching, interchange, transmission,
or reception of data or information by the agency. For purposes of this
definition, equipment is used by an agency if the equipment is used directly
by the agency, or is used by a contractor under a contract with the agency
that requires (1) its use or (2) to a significant extent, its use in the
performance of a service or the furnishing of a product. The term "information
technology" includes computers, ancillary equipment, software, firmware
and similar procedures, services (including support services), and related
resources, and does not include any equipment that is acquired by a contractor
incidental to a contract; or contains imbedded information technology
that is used as an integral part of the product, but the principal function
of which is not the acquisition, storage, manipulation, management, movement,
control, display, switching, interchange, transmission, or reception of
data or information. For example, heating, ventilation, and air conditioning
equipment, such as thermostats or temperature control devices, and medical
equipment where information technology is integral to its operation, are
not information technology.
Inherently
Governmental Activities. An activity that is so intimately related
to the public interest as to mandate performance by government personnel
as provided by Attachment A.
Interested
Parties. For purposes of challenging the contents of an agency’s
commercial activities inventory pursuant to the Federal Activities Inventory
Reform Act, an interested party is (1) a private sector source that is
an actual or prospective offeror for a contract or other form of agreement
to perform the activity and has a direct economic interest in performing
the activity that would be adversely affected by a determination not to
procure the performance of the activity from a private sector source;
(2) a representative of any business or professional association that
includes within its membership private sector sources referred to in (1)
above; (3) an officer or employee of an organization within an executive
agency that is an actual or prospective offeror to perform the activity;
(4) the head of any labor organization referred to in section 7103(a)(4)
of title 5, United States Code, that includes within its membership officers
or employees of an organization referred to in paragraph (3).
Inventory.
A list of government personnel, by location, function, and position, performing
either commercial activities or inherently governmental activities.
MEO
Letter of Obligation. A formal agreement that an agency implements
when a standard or streamlined competition results in agency performance
(e.g., MEO).
MEO
Subcontracts. Contracts between an agency and the private sector
that are included in the agency tender or fee-for service agreements with
a public reimbursable source that are included in the agency tender. In
addition to the cost of MEO subcontracts, agency or public reimbursable
cost estimates must include support costs associated with MEO subcontracts
such as government-furnished property, and contract administration, inspection,
and surveillance.
MEO
Team. A group of individuals, comprised of technical and functional
experts, formed to assist the ATO in developing the agency tender.
Military
Personnel. Officers [as defined in 10 U.S.C. § 101(b)(1)]
and enlisted members [as defined in 10 U.S.C. § 101(b)(6)] of the
military services (defined as the Army, Navy, Air Force, and Marine Corps).
Most
Efficient Organization (MEO). The staffing plan of the agency
tender, developed to represent the agency’s most efficient and cost-effective
organization. An MEO is required for a standard competition and may include
a mix of government personnel and MEO subcontracts.
New
Requirement. An agency’s newly established need for a commercial
product or service that is not performed by (1) the agency with government
personnel; (2) a fee-for-service agreement with a public reimbursable
source; or (3) a contract with the private sector. An activity that is
performed by the agency and is reengineered, reorganized, modernized,
upgraded, expanded, or changed to become more efficient, but still essentially
provides the same service, is not considered a new requirement. New ways
of performing existing work are not new requirements.
Non-Pay
Categories of Costs. Costs in a cost estimate that are not related
to pay. Non-pay categories of costs include, but are not limited to, materials,
supplies, equipment, facilities, capital assets, and minor items and the
inflation for these costs.
Offer.
A private sector source’s formal response to a request for proposals
or invitation for bid. The term “offeror” refers to the specific
source rather than the response.
Overhead.
Overhead includes two major categories of cost, operations overhead
and general and administrative overhead. Operations overhead includes
costs that are not 100 percent attributable to the activity being competed
but are generally associated with the recurring management or support
of the activity. General and administrative overhead includes salaries,
equipment, space, and other tasks related to headquarters management,
accounting, personnel, legal support, data processing management, and
similar common services performed external to the activity, but in support
of the activity being competed. A standard twelve percent overhead factor
is an estimated federal agency overhead factor that is calculated in agency
and public reimbursable cost estimates for streamlined and standard competitions.
Past
Performance. An indicator that may be used in the source selection
process to evaluate a prospective provider’s previous performance
on work comparable to that being competed, for the purpose of predicting
the quality of future performance relative to other offers or public reimbursable
tenders. FAR 42.1501 describes the information used to evaluate past performance,
and FAR 15.305(a)(2) provides guidance for the consideration of past performance
in the source selection process.
Pay
Categories of Cost. Costs in a cost estimate associated with
the payroll for government personnel, including inflation.
Performance
Decision. The outcome of a streamlined or standard competition,
based on SLCF or SCF certifications.
Performance
Standards. Verifiable, measurable levels of service in terms
of quantity, quality, timeliness, location, and work units. Performance
standards are used in a performance-based PWS to (1) assess (i.e., inspect
and accept) the work during a period of performance; (2) provide a common
output-related basis for preparing private sector offers and public tenders;
and (3) compare the offers and tenders to the PWS. The requiring activity’s
acceptable levels of service are normally stated in the PWS. The solicitation
includes performance standards.
Performance
Work Statement (PWS). A statement in the solicitation that identifies
the technical, functional, and performance characteristics of the agency’s
requirements. The PWS is performance-based and describes the agency’s
needs (the “what”), not specific methods for meeting those
needs (the “how”). The PWS identifies essential outcomes to
be achieved, specifies the agency’s required performance standards,
and specifies the location, units, quality and timeliness of the work.
Phase-in
Plan. A prospective provider’s plan to replace the incumbent
provider(s) that is submitted in response to the solicitation. The phase-in
plan is implemented in the first performance period and includes details
on minimizing disruption, adverse personnel impacts, and start-up requirements.
The phase-in plan is different from the employee transition plan developed
by the HRA.
Privatization.
A federal agency decision to change a government-owned and government-operated
commercial activity or enterprise to private sector control and ownership.
When privatizing, the agency eliminates associated assets and resources
(manpower for and funding of the requirement). Since there is no government
ownership and control, no service contract or fee-for-service agreement
exists between the agency and the private sector after an agency privatizes
a commercial activity or enterprise. Moving work from agency performance
with government personnel to private sector performance where the agency
still funds the activity is not privatization.
Prospective
Providers. Private sector, public reimbursable, and agency sources
that may submit responses (offers or tenders) in response to an agency’s
solicitation.
Provider.
An agency, private sector, or public reimbursable source that
is performing, or will perform, a commercial activity; sometimes referred
to as a service provider.
Public
Announcement. An agency’s formal declaration that the agency
has made a (1) decision to perform a streamlined or standard competition,
or (2) performance decision in a streamlined or standard competition.
The CO makes these announcements via FedBizOpps.gov.
Public
Reimbursable Source. A service provider from a federal agency
that could perform a commercial activity for another federal agency on
a fee-for-service or reimbursable basis by using either civilian employees
or federal contracts with the private sector.
Public
Reimbursable Tender. A federal agency’s formal response
to another federal agency’s solicitation for offers or tenders.
The public reimbursable tender is developed in accordance with this circular
and includes a cost estimate, prepared in accordance with Attachment C.
PWS
Team. A group of individuals, comprised of technical and functional
experts, formed to develop the PWS and quality assurance surveillance
plan, and to assist the CO in developing the solicitation.
Quality
Assurance Surveillance. The government’s monitoring of
a service provider’s performance in accordance with the quality
assurance surveillance plan and the performance requirements identified
in the solicitation.
Quality
Assurance Surveillance Plan. The government’s inspection
plan. The quality assurance surveillance plan documents methods used to
measure performance of the service provider against the requirements in
the PWS. The agency relies on the service provider to monitor daily performance
using their own quality control plan, but retains the right to inspect
all services. When the agency makes a performance decision, the agency
re-evaluates and modifies the existing quality assurance surveillance
plan, based upon the selected provider and the selected provider’s
accepted quality control plan.
Quality
Control Plan. A self-inspection plan that is included in all
offers and tenders. The quality control plan describes the internal staffing
and procedures that the prospective provider will use to meet the quality,
quantity, timeliness, responsiveness, customer satisfaction, and other
service delivery requirements in the PWS.
Representatives
of Directly Affected Employees. In the case of directly affected
employees represented by a labor organization accorded exclusive recognition
under 5 U.S.C. § 7111, a representative is an individual designated
by that labor organization to represent its interests. In the case of
directly affected employees not represented by a labor organization under
5 U.S.C. § 7111, a representative is an individual appointed by directly
affected employees as their representative.
Residual
Value. The estimated value of a capital asset at the end of its
useful life as determined by application of the Useful Life and Disposal
Value Cost Factor.
Resources.
Funding allocated for contracts, manpower, facilities, material, or equipment
to perform agency requirements.
Segregable
Expansion. An increase to an existing commercial activity that
can be separately competed.
SHARE
A-76! The Department of Defense A-76 knowledge management system
used to share knowledge, information, and experience about public-private
competitions. This public site contains A-76-related guidance, sample
documents, best practices, tools, and links to other A-76 websites and
sources for A-76-related information. Users may post best practices used
in public-private competitions, research A-76 through the use of search
engines, and submit internet links to add to the available links in SHARE
A-76! The web site address is http://emissary.acq.osd.mil/inst/share.nsf/.
Solicitation
Closing Date. The due date for delivery of private sector offers,
public reimbursable tenders, and the agency tender, as stated in the solicitation.
Source.
One of three specific categories of service providers (i.e., agency, private
sector, or public reimbursable) that can perform a commercial activity
for an agency.
Source
Selection Authority (SSA). A competition official with decision-making
authority who is responsible for source selection as required by the FAR
and this circular. The SSA and CO may be the same individual.
Source
Selection Evaluation Board (SSEB). The team or board appointed
by the SSA to assist in a negotiated acquisition.
Standard
Competition Form (SCF). The agency form that documents and certifies
all costs calculated in the standard competition.
Start
Date. The start date for a streamlined or standard competition
is the date that the agency makes a formal public announcement of the
agency’s decision to perform a streamlined or standard competition.
Streamlined
Competition Form (SLCF). The agency form that documents and certifies
all costs calculated in the streamlined competition, in accordance with
Attachment C.
Uniformed
Services. Members of the armed forces (i.e., Army, Navy, Air
Force, Marine Corps, and Coast Guard) and other uniformed services (e.g.,
National Oceanic and Atmospheric Administration, Public Health Service).
Useful
Life. The estimated period of economic usefulness of a capital
asset.
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