Sample Cost and Price Format Tool

DISCLAIMER: The sample cost and price format and instructional information provided below is to help small businesses with a better understanding of acquisitions covered under the Service Contract Labor Standard statute, and does not constitute an official cost and price proposal format by the government.

For many small businesses, a service contract covered under the Service Contract Labor Standard (SCLS) statute is their first prime contract with the government. The following sample cost and price format with instructions are available to help small businesses when submitting their proposal to a solicitation for a Firm Fixed Price contract that is covered under SCLS and includes the Department of Labor’s (DOL) prevailing wage rates (Wage Determinations). You can learn more about the applicability of SCLS and prevailing wage rates in the Federal Acquisition Regulation (FAR) at Subpart 22.10 and DOL’s website at https://www.wdol.gov. Additional information on cost and price can be found on the Defense Contract Audit Agency (DCAA) website at https://www.dcaa.mil.

(1) Sample A - This format captures the total proposed contract price which includes total price for all contract line items for all contract periods.

(2) Sample B – This format captures total proposed price for each contract period. The combined total price for all contract line items for the period should be included.

(3) Sample C - This format captures total proposed price for each contract line item (CLIN) within each Contract Period.

(4) Sample D – This format captures a breakdown by cost element of all proposed labor costs for each CLIN in each contract period. There should be one breakdown for each CLIN in each contract period.

(5) Sample E – This format should be used to capture an itemized breakdown of all "Other Direct Costs" for each CLIN in each contract period. Again, one breakdown for each CLIN in each contract period should be used.

Narrative explanations which address and explain all cost elements applied in determining the total proposed prices; basis of proposed exempt salaries; formulas applied in computations and their basis; rates applied and rationale for their use; standard accounting practices for determining cost of depreciation and basis upon which items are determined expensed or capitalized; and any other information the offeror determines will aid in evaluation of the cost proposal.

Proposal of appropriate labor categories are the responsibility of offerors. If a classification considered necessary for performance of the work is missing from the DOL Wage Determination, the offeror must initiate a request for approval for a proposed wage and benefit rate by preparing an SF-1444, Request for Authorization of Additional Classification and Rate, at the time of employment of the unlisted craft. Typically, the offeror submits the completed SF-1444 to the contracting officer.

Supporting documentation to substantiate reasonableness of costs proposed. This documentation includes, but is not limited to: copies of letters from insurance carriers showing applicable rates for Workmen's Compensation, General Liability, or other applicable insurance; copy of notice from the State Employment Security Commission showing applicable State Unemployment Insurance rates and maximum wage base; statement of company policy for vacation, sick leave, health and welfare, pensions/401k plans, and any other applicable benefits for employees not covered by the Department of Labor Wage Determinations; multiple vendor and/or subcontractor quotes or justification for sole source; copies of applicable pages from commercial catalogs or published price lists; and a breakdown of the elements included in the offeror's G&A pool with an explanation of the method and rationale used to compute the rate. Sole source justifications shall not only provide a justification for acquisition from one source only, but also provide a justification as to how the quoted price was determined fair and reasonable.

Proposed prices shall be: reasonable in relation to contract requirements and workload quantities. Proposed staffing (labor categories and labor hours/man-years) reflected in the labor cost breakdown should be easily tracked to manpower/staffing required as part of the quality proposal.

 


SAMPLE A (FIRM FIXED PRICE – BEST VALUE)
TOTAL COST SUMMARY ALL CONTRACT PERIODS
COST ELEMENT TOTAL PROPOSED COST
(1) TOTAL DIRECT LABOR _____________________
(2) TOTAL FRINGE BENEFITS _____________________
(3) TOTAL LABOR BURDEN _____________________
(4) TOTAL LABOR COSTS _____________________
(5) TOTAL OTHER DIRECT COSTS _____________________
(6) TOTAL SUBCONTRACT COSTS _____________________
(7) TOTAL COSTS _____________________
(8) G & A _____________________
(9) SUBTOTAL _____________________
(10) PROFIT _____________________
(11) TOTAL CONTRACT COST _____________________

INSTRUCTIONS This summary is to provide total proposed costs for all contract periods (PHASE-IN, BASE & ALL OPTIONS); therefore, only one summary will be completed.

(1), (2), & (3) – This should be the sum of all contract periods, taken from lines (1), (2), & (3) of the "TOTAL COST SUMMRY BY CONTRACT PERIOD" (SAMPLE B)

(4) – Total of lines (1), (2), & (3) of this summary.

(5) – This should be the sum for all contract periods taken from line (5) of the "TOTAL COST SUMMARY BY CONTRACT PERIOD" (SAMPLE B).

(6) – This should be the sum for all contract periods taken from line (6) of the "TOTAL COST SUMMARY BY CONTRACT PERIOD" (SAMPLE B).

(7) – Total of lines (4), (5), & (6), of this summary.

(8) – This should be the sum for all contract periods taken from line (8) of the "TOTAL COST SUMMARY BY CONTRACT PERIOD" (SAMPLE B).

(9) – Total of lines (7) & (8) of this summary.

(10) – This should be the sum for all contract periods taken from line (10) of the "TOTAL COST SUMMARY BY CONTRACT PERIOD" (SAMPLE B).

(11) – Total of lines (9) & (10) of this summary.

 


SAMPLE B (FIRM FIXED PRICE – BEST VALUE)
TOTAL COST SUMMARY ALL CONTRACT PERIODS
(insert applicable contract period)
COST ELEMENT TOTAL PROPOSED COST
(1) TOTAL DIRECT LABOR _____________________
(2) TOTAL FRINGE BENEFITS _____________________
(3) TOTAL LABOR BURDEN _____________________
(4) TOTAL LABOR COSTS _____________________
(5) TOTAL OTHER DIRECT COSTS _____________________
(6) TOTAL SUBCONTRACT COSTS _____________________
(7) TOTAL COSTS _____________________
(8) G & A _____________________
(9) SUBTOTAL _____________________
(10) PROFIT _____________________
(11) TOTAL CONTRACT COST _____________________

INSTRUCTIONS

This summary is to provide total proposed costs for each contract period (one PHASE-IN, one for the BASE YEAR, and one for each of the OPTION PERIODS). In the title above, insert the applicable contract period.

(1), (2), & (3) – This should be the combined total of all CLINS within the contract period, taken from lines (1), (2), & (3) of each “TOTAL COST SUMMARY BY CLIN” (SAMPLE C).

(4) – Total of lines (1), (2), & (3) of this summary.

(5) – This should be the combined total of all CLINS within the contract period, taken from line (5) of "TOTAL COST SUMMARY BY CLIN” (SAMPLE C).

(6) – This should be the combined total of all CLINS within the contract period, taken from line (6) of the "TOTAL COST SUMMARY BY CLIN” (SAMPLE C).

(7) – Total of lines (4), (5), & (6) of this summary.

(8) – This should be the combined total of all CLINS within the contract period, taken from line (8) of the “TOTAL COST SUMMARY BY CLIN” (SAMPLE C).

(9) – Total of lines (7) & (8) of this summary.

(10) – This should be the combined total of all CLINS within the contract period, taken from line (10) of the “TOTAL COST SUMMARY BY CLIN” (SAMPLE C).

(11) – Total of lines (9) & (10) of this summary.

 


SAMPLE C (FIRM FIXED PRICE – BEST VALUE)
TOTAL COST SUMMARY BY CLIN
(insert applicable CLIN)
(insert applicable contract period)
COST ELEMENT TOTAL PROPOSED COST
(1) TOTAL DIRECT LABOR _____________________
(2) TOTAL FRINGE BENEFITS _____________________
(3) TOTAL LABOR BURDEN _____________________
(4) TOTAL LABOR COSTS _____________________
(5) TOTAL OTHER DIRECT COSTS _____________________
(6) TOTAL SUBCONTRACT COSTS _____________________
(7) TOTAL COSTS _____________________
(8) G & A (*insert rate) _____________________
(9) SUBTOTAL _____________________
(10) PROFIT _____________________
(11) TOTAL CONTRACT COST _____________________

INSTRUCTIONS This summary is to provide total proposed costs for each CLIN within the contract period; therefore, there will be as many prepared as there are CLINS within each applicable contract period. In the title above, insert the applicable CLIN and contract period. (1), (2), & (3) – line (1) should be the total of column (E) from the “LABOR COST BREAKDOWN” (SAMPLE D) for the applicable CLIN; line (2) should be the total of column (N) of the “LABOR COST BREAKDOWN” (SAMPLE D) for the applicable CLIN; and line (3) should be the total of column (T) of the “LABOR COST BREAKDOWN” (SAMPLE D) for the applicable CLIN. (4) – Total of lines (1), (2), & (3) of this summary. (5) – This should be the total of each applicable CLIN taken from the “TOTAL OTHER DIRECT COSTS” (SAMPLE E). (6) – This should be the total of all subcontract costs for each applicable CLIN. Offeror should provide copies of all subcontractor quotes, preferably from multiple vendors with justification as to which vendors price is applicable and how price reasonableness was determined. (7) – Total of lines (4), (5), & (6), of this summary. (8) – This should be the proposed G&A rate times line (7). Offeror should insert the applicable G&A rate in parenthesis beside the word “G&A” on this line. (9) – Total of lines (7) & (8) of this summary. (10) – This should be the proposed profit rate times (9). Offeror should insert the applicable profit rate in parenthesis beside the word “PROFIT” on this line. (11) – Total of lines (9) & (10) of this summary.

 


SAMPLE D (FIRM FIXED PRICE – BEST VALUE)
CLICK HERE FOR THE LABOR COST BREAKDOWN
SAMPLE E (FIRM FIXED PRICE – BEST VALUE)
OTHER DIRECT COSTS
(insert applicable CLIN)
(insert applicable contract period)
COST ELEMENT QUANTITY UNIT OF MEASURE UNIT PRICE TOTAL PRICE
SUPPLIES _____________________ _____________________ _____________________ _____________________
TOTAL SUPPLY COST _____________________ _____________________ _____________________ _____________________
MATERIALS _____________________ _____________________ _____________________ _____________________
TOTAL MATERIALS COST _____________________ _____________________ _____________________ _____________________
EQUIPMENT _____________________ _____________________ _____________________ _____________________
TOTAL EQUIPMENT COST _____________________ _____________________ _____________________ _____________________
TOTAL OTHER DIRECT COST _____________________ _____________________ _____________________ _____________________

INSTRUCTIONS This breakdown will be computed to indicate proposed costs per CLIN per contract period other than those for labor, and subcontracts. Insert the applicable CLIN and contract period at the top of the page. The “TOTAL OTHER DIRECT COSTS” will be the combined total price of supplies, materials, equipment, and any other applicable costs. Costs should be itemized under each cost element to reflect specific types and quantities. More lines may be added as needed; more cost elements may be added as needed; the above is a sample format only and does not place limitations on other direct costs claimed. Elements which do not apply should be omitted, and elements of other direct costs not shown, but applicable to your costs, should be added. Supporting documentation in the form of multiple vendor quotes, copies of applicable catalog cuts or published price lists, and/or justifications for sole source items should be readily available to be included with your proposal. Quite often contracting officers request supporting documentation in order to evaluate proposals.

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