[Federal Register Volume 76, Number 232 (Friday, December 2, 2011)]
[Proposed Rules]
[Pages 75512-75517]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-30907]
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 215 and 252
RIN 0750-AH47
Defense Federal Acquisition Regulation Supplement: Proposal
Adequacy Checklist (DFARS Case 2011-D042)
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Proposed rule.
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SUMMARY: DoD is proposing to amend the Defense Federal Acquisition
Regulation Supplement to incorporate a proposal adequacy checklist for
proposals in response to solicitations that require submission of
certified cost or pricing data.
DATES: Comments on the proposed rule should be submitted in writing to
the address shown below on or before January 31, 2012, to be considered
in the formation of a final rule.
ADDRESSES: Submit comments identified by DFARS Case 2011-D042, using
any of the following methods:
[cir] Regulations.gov: http://www.regulations.gov. Submit comments
via the Federal eRulemaking portal by entering ``DFARS Case 2011-D042
under the heading ``Enter keyword or ID'' and selecting ``Search.''
Select the link ``Submit a Comment'' that corresponds with ``DFARS Case
2011-D042.'' Follow the instructions provided at the ``Submit a
Comment'' screen. Please include your name, company name (if any), and
``DFARS Case 2011-D011'' on your attached document.
[cir] E-mail: [email protected]. Include DFARS Case 2011-D011 in the
subject line of the message.
[cir] Fax: 703-614-1254.
[cir] Mail: Defense Acquisition Regulations System, Attn: Dustin
Pitsch, OUSD (AT&L) DPAP/DARS, Room 3B855, 3060 Defense Pentagon,
Washington, DC 20301-3060.
Comments received generally will be posted without change to http://www.regulations.gov, including any personal information provided. To
confirm receipt of your comment(s), please check http://www.regulations.gov, approximately two to three days after submission
to verify posting (except allow 30 days for posting of comments
submitted by mail).
FOR FURTHER INFORMATION CONTACT: Mr. Dustin Pitsch, telephone 703-602-
0289.
SUPPLEMENTARY INFORMATION:
I. Background
This proposed rule supports one of DoD's Better Buying Power
initiatives by incorporating the requirement for a proposal adequacy
checklist into the Defense Federal Acquisition Regulation Supplement
(DFARS) at section 215.408, and an associated solicitation provision at
DFARS 252.215-70XX, to ensure offerors take responsibility for
submitting thorough, accurate, and complete proposals. The provision
should be included in solicitations that require the submission of
certified cost or pricing data.
II. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess
all costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). E.O.
13563 emphasizes the importance of quantifying both costs
[[Page 75513]]
and benefits, of reducing costs, of harmonizing rules, and of promoting
flexibility. This is a significant regulatory action and, therefore,
was subject to review under section 6(b) of E.O. 12866, Regulatory
Planning and Review, dated September 30, 1993. This rule is not a major
rule under 5 U.S.C. 804.
III. Regulatory Flexibility Act
DoD does not expect this proposed rule to have a significant
economic impact on a substantial number of small entities within the
meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq.
However, an Initial Regulatory Flexibility Analysis has been performed
and is summarized as follows:
This proposed rule amends the DFARS to add a checklist for DoD
contractors to complete under solicitations that require the submission
of certified cost or pricing data, if the contracting officer chooses
to use the provision. This rule will implement one of DoD's Better
Buying Power initiatives.
The objective of the rule is to ensure that offerors submit
thorough, accurate, and complete proposals. By completing the
checklist, offerors will be able to self validate the adequacy of their
proposals. The legal basis for the rule is 41 U.S.C. 1303.
The rule will apply to actions where cost and pricing data is
required, at the discretion of the contracting officer. Based on data
collected in FPDS-NG for FY2008-FY2010, there are on average 905
actions per year that met the criteria where the proposal adequacy
checklist could be utilized. On average, 420 of those actions were with
small business concerns.
The rule imposes no new reporting requirements. The rule does not
duplicate, overlap, or conflict with any other Federal rules.
No alternatives were identified that would meet the objectives of
the rule. Excluding the small number of small business concerns that
may be subject to the rule would not be in the best interest of the
small business concerns or the Government, because the proposal
adequacy checklist was created directly from requirements already in
the Federal Acquisition Regulation. While the checklist does not add
burden, it provides a useful tool for ensuring proposal adequacy.
DoD invites comments from small business concerns and other
interested parties on the expected impact of this rule on small
entities.
DoD will also consider comments from small entities concerning the
existing regulations in subparts affected by this rule in accordance
with 5 U.S.C. 610. Interested parties must submit such comments
separately and should cite 5 U.S.C. 610 (DFARS Case 2011-D042), in
correspondence.
IV. Paperwork Reduction Act
The rule contains information collection requirements that require
the approval of the Office of Management and Budget under the Paperwork
Reduction Act (44 U.S.C. chapter 35; however, these changes to the
DFARS do not impose additional information collection requirements to
the paperwork burden previously approved under OMB Control Number 9000-
0013, entitled ``Cost or Pricing Data Exemption Information.''
List of Subjects in 48 CFR Parts 215 and 252
Government procurement.
Mary Overstreet,
Editor, Defense Acquisition Regulations System.
Therefore, 48 CFR parts 215 and 252 are proposed to be amended as
follows:
1. The authority citation for 48 CFR parts 215 and 252 continues to
read as follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
PART 215--CONTRACTING BY NEGOTIATION
2. Amend Section 215.408 to add new paragraph (3) to read as
follows:
215.408 Solicitation provisions and contract clauses.
* * * * *
(3) When the solicitation requires the submission of certified cost
and pricing data, the contracting officer should include 252.215-70XX,
Proposal Adequacy Checklist, in the solicitation.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
3. Add section 252.215-70XX to read as follows:
252.215-70XX Proposal Adequacy Checklist.
As prescribed in 215.408(3), use the following provision:
PROPOSAL ADEQUACY CHECKLIST (DATE)
The offeror shall complete the following checklist, providing
location of requested information, or an explanation of why the
requested information is not provided. Completion of this checklist
in no way reduces the responsibility to fully comply with all of the
requirements of 41 U.S.C. chapter 35, Truthful Cost or Pricing Data,
and any other special requirements of the solicitation.
Proposal Adequacy Checklist
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If not provided
Proposal page EXPLAIN (may use
References Submission item No. continuation
pages)
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GENERAL INSTRUCTIONS
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1. Paragraph A(1) FAR 15.408, Table Is there a properly completed first ................ ................
15-2, Section I. page of the proposal per FAR 15.408
Table 15-2 I.A or as specified in the
solicitation?
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2. Paragraph A(7) FAR 15.408, Table Does the proposal identify the need ................ ................
15-2, Section I. for Government-furnished material/
tooling/test equipment? Include the
lending contract number and
Contracting Officer contact
information if known.
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[[Page 75514]]
3. Paragraph A(8) FAR 15.408, Table Does the proposal include ................ ................
15-2, Section I. identification of any CAS non-
compliances, or other estimating
deficiencies that may impact the
proposed price?
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4. Paragraph A(8) FAR 15.408, Table Does the proposal disclose any other ................ ................
15-2, Section I. known activity that could materially
impact the costs; such as, existing
excess material, changes in
production methods, make-or-buy
decisions, company re-organizations,
new business, or new technology?
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5. Paragraph B FAR 15.408, Table 15- Is an Index of all certified cost or ................ ................
2, Section I. pricing data and information
accompanying or identified in the
proposal provided and appropriately
referenced?
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6. FAR 15.403-1(b).................. Are there any exceptions to submission ................ ................
of certified cost or pricing data
pursuant to FAR 15.403-1(b)? If so,
is supporting documentation included
in the proposal?
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7. Paragraph C(2)(i) FAR 15.408, Does the proposal disclose the ................ ................
Table 15-2, Section I. judgmental factors applied and the
mathematical or other methods used in
the estimate, including those used in
projecting from known data?
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8. Paragraph C(2)(ii) FAR 15.408, Does the proposal disclose the nature ................ ................
Table 15-2, Section I. and amount of any contingencies
included in the proposed price?
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9. Paragraph D FAR 15.408, Table 15- Does the proposal explain the basis of ................ ................
2, Section I. all cost estimating relationships
(CERs) (labor hours or material)
proposed on other than a discrete
basis?
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10. Paragraphs D and E FAR 15.408, Is there a summary of total cost by ................ ................
Table 15-2, Section I. element of cost and are the elements
of cost cross-referenced to the
supporting cost or pricing data?
(Breakdowns for each cost element
must be consistent with your cost
accounting system.)
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11. Paragraph D FAR 15.408, Table 15- Is total price by cost element ................ ................
2, Section I. provided by year? Identify if by
Calendar Year (CY) or Government
Fiscal Year (GFY) or both, as
required.
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12. Paragraphs D and E FAR 15.408, If more than one Contract Line Item ................ ................
Table 15-2, Section I. Number (CLIN) or sub Contract Line
Item Number (sub-CLIN) is proposed as
required by the RFP, are there
summary total amounts covering all
line items for each element of cost
and is it cross-referenced to the
supporting cost or pricing data?
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13. Paragraph E FAR 15.408, Table 15- Are CLIN prices by cost element ................ ................
2, Section I. provided by year? Identify if by CY
or GFY or both, as required.
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14. Paragraph E FAR 15.408, Table 15- Are recurring and non-recurring costs ................ ................
2, Section I. segregated at both the CLIN/sub-CLIN
and total cost levels?
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15. Paragraph F FAR 15.408, Table 15- Does the proposal identify any ................ ................
2, Section I. incurred costs for work performed
before the submission of the
proposal?
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16. Paragraph G FAR 15.408, Table 15- Is there a Government forward pricing ................ ................
2, Section I. rate agreement (FPRA)? If so,
identify and include.
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COST ELEMENTS
MATERIALS AND SERVICES
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17. Paragraph AFAR 15.408, Table 15- Does the proposal include a ................ ................
2, Section II. description of supplies or services
and the basis on which the supply or
service meets the Government's
requirements?
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18. Paragraph A FAR 15.408, Table 15- Does the proposal include a ................ ................
2, Section II. consolidated summary of individual
material and services to include the
basis for pricing? The offeror's
consolidated summary shall include
raw materials, parts, components,
assemblies, subcontracts and services
to be produced or performed by
others, identifying as a minimum the
item, source, quantity, and price.
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[[Page 75515]]
SUBCONTRACTS (Purchased materials or services)
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19.................................. Does the proposal identify those ................ ................
actions for which assist audits have
been requested by the contractor or a
subcontractor and identify the
request date and scheduled receipt
date?
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20. FAR 15.404-3(c)................. Per the thresholds of FAR 15.404-3(c), ................ ................
Subcontract Pricing Considerations,
does the proposal include a copy of
the applicable subcontractor's
proposal(s)?
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21. Paragraph A FAR 15.408, Table 15- Is the subcontractor Price/Cost ................ ................
2, Section II. Analysis establishing the
reasonableness of each proposed
subcontract included with the
proposal?
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22.................................. If the offeror's Price/Cost Analyses ................ ................
are not provided with the proposal,
does the proposal include a matrix
identifying dates for receipt of
subcontractor proposal, completion of
fact finding for purposes of Price/
Cost Analysis, and submission of the
Price/Cost Analysis?
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COMMERCIAL ITEM DETERMINATIONS
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23. FAR 2.101 FAR 15.403-1 (b)(3) or Are commercial items being proposed ................ ................
(b)(5). either at the prime or subcontractor
level that would be exempt from
certified cost or pricing data
requirements?
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24. FAR 2.101....................... Has the contractor specifically ................ ................
identified the type of commercial
item claim (FAR 2.101 commercial item
definition, paragraphs (1) through
(8)), and the basis on which the item
meets the definition?
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25. FAR 2.101 FAR 15.403-1.......... For modified commercial items (FAR ................ ................
2.101 commercial item definition
paragraph (3)); did the contractor
classify the modification(s) as
either--
A modification of a type ................ ................
customarily available in the
commercial marketplace (paragraph
(3)(i)); or
A minor modification ................ ................
(paragraph (3)(ii)) of a type not
customarily available in the
commercial marketplace made to meet
Federal Government requirements not
exceeding the thresholds in FAR
15.403-1(c)(3)(iii)(B)? (see note
below)
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26. FAR 2.101....................... For proposed commercial items ``of a ................ ................
type'', or ``evolved'' or modified
(FAR 2.101 commercial item definition
paragraphs (1) through (3)), did the
contractor provide a technical
description of the differences
between the proposed item and the
comparison item(s)?
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27. FAR 15.402(a)(2) FAR 15.403- Does the proposal include a ................ ................
1(c)(3)(ii) FAR 15.403-3(c) FAR determination of price reasonableness
15.404-3(b) FAR 15.404-3(c) FAR for all commercial items offered?
15.406-2.
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ADEQUATE PRICE COMPETITION
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28. Paragraph A(1) FAR 15.408, Table Does the proposal support the degree ................ ................
15-2, Section II. of competition and the basis for
establishing the source and
reasonableness of price for each
subcontract or purchase order priced
on a competitive basis exceeding the
threshold for certified cost or
pricing data?
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INTERORGANIZATIONAL TRANSFERS
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29. Paragraph A.(2) FAR 15.408, For inter-organizational transfers ................ ................
Table 15-2, Section II. proposed at cost, does the proposal
include a complete cost proposal in
compliance with Table 15-2?
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[[Page 75516]]
30. FAR 31.205-26(e) FAR 15.403-1... For inter-organizational transfers ................ ................
proposed at price in accordance with
FAR 31.205-26(e), does the proposal
provide an analysis by the prime that
supports the exception from certified
cost or pricing data in accordance
with FAR 15.403-1?
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DIRECT LABOR
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31. Paragraph B FAR 15.408, Table 15- Does the proposal include a time ................ ................
2, Section II. phased (i.e.; monthly, quarterly)
breakdown of labor hours, rates and
costs by category or skill level? If
labor is the allocation base for
indirect costs, the labor cost must
be summarized in order that the
applicable overhead rate can be
applied.
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32. Paragraph B FAR 15.408, Table 15- For labor Basis of Estimates (BOEs),
2, Section II. does the proposal include labor
categories, labor hours, task
descriptions, Statement of Work
reference, applicable CLIN, Work
Breakdown Structure, rationale for
estimate, applicable history, and
time-phasing?
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33. Paragraphs B and C, FAR 15.408, Does the proposal include all rates ................ ................
Table 15-2, Section II. and factors by year that are utilized
in the development of the proposal
and the basis of those rates and
factors (FPRA/FPRP)? The Offeror
shall identify the official submittal
of such rate and factor data.
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34. FAR subpart 22.10............... If covered by the Service Contract ................ ................
Labor Standards statute (41 U.S.C.
chapter 67), are the rates in the
proposal in compliance with the
minimum rates specified in the
statute?
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INDIRECT COSTS
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35. Paragraph C FAR 15.408, Table 15- Does the proposal indicate the basis ................ ................
2, Section II. of estimate for proposed indirect
costs? (Support for the indirect
rates could consist of cost
breakdowns, trends, and budgetary
data.)
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OTHER COSTS
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36. Paragraph D FAR 15.408, Table 15- Does the proposal include other direct ................ ................
2, Section II. costs and the basis for pricing? If
travel is included does the proposal
include number of trips, number of
people, number of days per trip,
locations, and rates (e.g. airfare,
per diem, hotel, car rental, etc)?
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37. Paragraph E FAR 15.408, Table 15- If royalties exceed $1,500 does the ................ ................
2, Section II. proposal provide the information/data
identified by Table 15-2?
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38. Paragraph F FAR 15.408, Table 15- When facilities capital cost of money ................ ................
2, Section II. is proposed, does the proposal
include submission of Form CASB-CMF
or reference to an FPRP/FPRA and show
the calculation of the proposed
amount?
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FORMATS FOR SUBMISSION OF LINE ITEM SUMMARIES
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39. FAR 15.408, Table 15-2, Section Are all cost element breakdowns ................ ................
III. provided using the applicable format
prescribed in FAR 15.408, Table 15-2
III? (or alternative format if
specified in the RFP)
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40. Paragraph B FAR 15.408, Table 15- If the proposal is for a modification ................ ................
2, Section III. or change order, have cost of work
deleted (credits) and cost of work
added (debits) been provided in the
format described in FAR 15.408, Table
15-2.III.B?
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41. Paragraph C FAR 15.408, Table 15- For price revisions/redeterminations, ................ ................
2, Section III. does the proposal follow the format
in FAR 15.408, Table 15-2.III.C?
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[[Page 75517]]
OTHER
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42. FAR 16.4........................ If an incentive contract type, does ................ ................
the proposal include offeror proposed
target cost, target profit or fee,
share ratio, and, when applicable,
minimum/maximum fee, ceiling price?
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43. FAR 15.404-4(c)(4)(i)........... Is proposed fee in accordance with
statutory guidance?
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44. FAR 16.203-4(a)(1).............. If Economic Price Adjustments are ................ ................
being proposed, does the proposal
show the rationale and application
for the proposed indices?
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45. FAR 32.1000..................... If the offeror is proposing ................ ................
Performance-Based Payments have they
provided an expenditure profile,
proposed events and their projected
dates, proposed values for each
event, completion criteria, and
identification of which events are
severable or cumulative?
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46. FAR 15.408(n)................... Excessive Pass-through Charges-- ................ ................
Identification of Subcontract Effort:
If the offeror intends to subcontract
more than 70% of the total cost of
work to be performed, does the
proposal identify: (i) The amount of
the offeror's indirect costs and
profit applicable to the work to be
performed by the proposed
subcontractor(s); and (ii) a
description of the added value
provided by the offeror as related to
the work to be performed by the
proposed subcontractor(s)?
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47.................................. Does the proposal identify the ................ ................
location and point of contact for any
certified cost or pricing data
referenced in, but not provided with,
the proposal?
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(End of provision)
[FR Doc. 2011-30907 Filed 12-1-11; 8:45 am]
BILLING CODE 5001-06-P