(b)(3) For contractors following the contract cost principles in FAR subpart 31.2, Contracts With Commercial Organizations, pursuant to the procedures in FAR 42.1701(b), the administrative contracting officer shall require contractors to comply with the submission items in Table 215.403-1 in order to ensure that their forward pricing rate proposal is submitted in an acceptable form in accordance with FAR 15.403-5(b)(3). The contracting officer should request that the proposal be submitted to the Government at least 90 days prior to the proposed effective date of the rates. To ensure the proposal is complete, the contracting officer shall request that the contractor complete the Contractor Forward Pricing Rate Proposal Adequacy Checklist at Table 215.403-1, and submit it with the forward pricing rate proposal.
(3) For contractors following the contract cost principles in FAR subpart 31.2, Contracts With Commercial Organizations, pursuant to the procedures in FAR 42.1701(b), the administrative contracting officer shall require contractors to comply with the submission items in Table 215.403-1 in order to ensure that their forward pricing rate proposal is submitted in an acceptable form in accordance with FAR 15.403-5(b)(3). The contracting officer should request that the proposal be submitted to the Government at least 90 days prior to the proposed effective date of the rates. To ensure the proposal is complete, the contracting officer shall request that the contractor complete the Contractor Forward Pricing Rate Proposal Adequacy Checklist at Table 215.403-1, and submit it with the forward pricing rate proposal.
Table 215.403-1--Contractor Forward Pricing Rate Proposal Adequacy
Checklist
Complete the following checklist, providing the location of requested information, or an explanation of why the requested information is not provided, and submit it with the forward pricing rate proposal.
Contractor Forward Pricing Rate Proposal Adequacy Checklist------------------------------------------------------------------------
If not
provided,
Proposal page explain (may
Submission item No. (if use
applicable) continuation
pages)------------------------------------------------------------------------
General Instructions------------------------------------------------------------------------1. Is there a properly completed first Proposal Cover
page of the proposal as specified by Page.
the contracting officer?
Initial proposal elements include:
a. Name and address of contractor;
b. Name and telephone number of
point of contact;
c. Period covered;
d. The page of the proposal that
addresses--
1. Whether your organization is
subject to cost accounting
standards (CAS);
2. Whether your organization has
submitted a CAS Disclosure
Statement, and whether it has been
determined adequate;
3. Whether you have been notified
that you are or may be in
noncompliance with your Disclosure
Statement or CAS (other than a
noncompliance that the cognizant
Federal agency official had
determined to have an immaterial
cost impact), and if yes, an
explanation;
4. Whether any aspect of this
proposal is inconsistent with your
disclosed practices or applicable
CAS, and, if so, an explanation;
and whether the proposal is
consistent with established
estimating and accounting
principles and procedures and FAR
part 31, Cost Principles, and, if
not, an explanation;
e. The following statement: ``This
forward pricing rate proposal
reflects our estimates, as of the
date of submission entered in (f)
below and conforms with Table
215.403-1. By submitting this
proposal, we grant the Contracting
Officer and authorized
representative(s) the right to
examine those records, which
include books, documents,
accounting procedures and
practices, and other data,
regardless of type and form or
whether such supporting information
is specifically referenced or
included in the proposal as the
basis for each estimate, that will
permit an adequate evaluation of
the proposed rates and factors.'';
f. Date of submission; and
g. Name, title, and signature of
authorized representative.2. Summary of proposed direct and Immediately
indirect rates and factors, including following the
the proposed pool and base costs for proposal cover
each proposed indirect rate and factor. page.3. Table of Contents or index.
a. Does the proposal include a table
of contents or index identifying
and referencing all supporting data
accompanying or identified in the
proposal?
b. For supporting documentation not
provided with the proposal, does
the basis of each estimate in the
proposal include the location of
the documentation and the point of
contact (custodian) name, phone
number, and email address? Does the
proposal disclose known or
anticipated changes in business
activities or processes that could
materially impact the proposed
rates (if not previously provided)?
For example--4. a. Management initiatives to reduce
costs;
b. Changes in management objectives
as a result of economic conditions
and increased competitiveness;
c. Changes in accounting policies,
procedures, and practices including
(i) reclassification of expenses
from direct to indirect or vice
versa; (ii) new methods of
accumulating and allocating
indirect costs and the related
impact; and (iii) advance
agreements;
d. Company reorganizations
(including acquisitions or
divestitures);
e. Shutdown of facilities; or
f. Changes in business volume and/or
contract mix/type.5. Do proposed costs based on judgmental
factors include an explanation of the
estimating processes and methods used,
including those used in projecting from
known data?6. Does the proposal show trends and
budgetary data? Does the proposal
provide an explanation of how the data,
as well as any adjustments to the data,
were used?7. The proposal should reconcile to the
supporting data referenced. If the
proposal does not reconcile to the
supporting data referenced, identify
applicable page(s) and explain.8. The proposal should be internally
consistent. If the proposal is not
internally consistent, identify
applicable page(s) and explain.------------------------------------------------------------------------
Direct Labor------------------------------------------------------------------------
Direct Labor Rates Methodology and
Basis of Each Estimate9. a. Does the proposal include an
explanation of the methodology used to
develop the direct labor rates and
identify the basis of each estimate?
b. Does the proposal include or
identify the location of the
supporting documents for the base-
period labor rates (e.g., payroll
records)?10. Does the proposal identify
escalation factors for the out-year
labor rates, the costs to which
escalation is applicable, and the basis
of each factor used?11. Does the proposal identify planned
or anticipated changes in the
composition of labor rates, labor
categories, union agreements,
headcounts, or other factors that could
significantly impact the direct labor
rates?------------------------------------------------------------------------
Indirect Rates (Fringe, Overhead, G&A;, etc.)------------------------------------------------------------------------12. Indirect Rates Methodology and Basis
of Each Estimate.
a. Does the proposal identify the
basis of each estimate and provide
an explanation of the methodology
used to develop the indirect rates?
b. Does the proposal include or
identify the location of the
supporting documents for the
proposed rates?13. Does the proposal identify indirect
expenses by burden center, by cost
element, by year (including any
voluntary deletions, if applicable) in
a format that is consistent with the
accounting system used to accumulate
actual expenses?14. Does the proposal identify any
contingencies?15. Does the proposal identify planned
or anticipated changes in the nature,
type, or level of indirect costs,
including fringe benefits?16. Does the proposal identify
corporate, home office, shared
services, or other incoming allocated
costs and the source for those costs,
including location and point of contact
(custodian) name, phone number, and
email address?17. Does the proposal separately
identify all intermediate cost pools
and provide a reconciliation to show
where the costs will be allocated?18. Does the proposal identify the
escalation factors used to escalate
indirect costs for the out-years, the
costs to which escalation is
applicable, and the basis of each
factor used?19. Does the proposal provide details of
the development of the allocation base?20. Does the proposal include or
reference the supporting data for the
allocation base such as program
budgets, negotiation memoranda,
proposals, contract values, etc.?21. Does the proposal identify how the
proposed allocation bases reconcile
with its long range plans, strategic
plan, operating budgets, sales
forecasts, program budgets, etc.?------------------------------------------------------------------------
Cost of Money (COM)------------------------------------------------------------------------22. Cost of Money.
a. Are Cost of Money rates submitted
on Form CASB-CMF, with the Treasury
Rate used to compute COM identified
and a summary of the net book value
of assets, identified as
distributed and non-distributed?
b. Does the proposal identify the
support for the Form CASB-CMF, for
example, the underlying reports and
records supporting the net book
value of assets contained in the
form?------------------------------------------------------------------------
Other------------------------------------------------------------------------23. Does the proposal include a
comparison of prior forecasted costs to
actual results in the same format as
the proposal and an explanation/
analysis of any differences?24. If this is a revision to a previous
rate proposal or a forward pricing rate
agreement, does the new proposal
provide a summary of the changes in the
circumstances or the facts that the
contractor asserts require the change
to the rates?------------------------------------------------------------------------ [79 FR 73496, Dec. 11, 2014]