Develop Cost Estimate
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 Streamlined Competition
Form (SLCF).
How do I calculate the 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.
How do I calculate the cost of private sector
or public reimbursable performance?
An agency determines 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 enters and certifies an estimated contract price
or public reimbursable cost on SLCF Line 7 in accordance with Attachment C for a
minimum of three performance periods.
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.
Can the same person prepare both the agency and the private
sector/public reimbursable cost estimate?
No. An agency must ensure that the individual(s) preparing the agency cost estimate
and the individual(s) preparing the private sector/public reimbursable cost estimate
be different and shall not share information concerning their respective estimates.
What does the SCF look like? How do I set it up?
Below is a summary of the Standard Competition Form. You may use it as a guide when
developing the SCF for your competition.
SUMMARY OF STANDARD COMPETITION FORM (SCF)
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COST OF AGENCY PERFORMANCE
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SCF Line 1: Personnel Costs. Agency labor costs for direct and
indirect labor necessary to meet the requirements in the solicitation.
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SCF Line 2: Material and Supply Costs. Agency cost of materials
and supplies such as office supplies, including handling and inflation.
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SCF Line 3: Other Specifically Attributable Costs. Other agency
costs such as the cost of capital, depreciation capital assets, rent, utilities,
insurance, and MEO subcontracts.
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SCF Line 4: Overhead Costs. Twelve percent of agency personnel
costs reflected on SCF Line 1.
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SCF Line 5: Additional Costs. Agency costs not otherwise accounted
for on SCF Lines 1-4, such as phase-in costs and one-time conversion costs for an
expansion, new requirement, or conversion from a private sector or public reimbursable
provider to agency performance.
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SCF Line 6: Total Cost of Agency Performance. The sum of SCF Lines
1-5.
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COST OF PUBLIC REIMBURSABLE PERFORMANCE
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The guidance for a public reimbursable source to complete SCF Lines 1a-6a is the
same as the guidance to complete SCF Lines 1-6.
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ADJUSTED COST OF PRIVATE SECTOR OR PUBLIC REIMBURSABLE PERFORMANCE
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SCF Line 7: Contract Price or Public Reimbursable Cost Estimate.
The contract price (based on the type of acquisition, source selection process,
and contract type required by the solicitation), or the public reimbursable cost
on SCF Line 6a.
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SCF Line 8: Contact Administration Costs. Costs for administering
the contract.
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SCF Line 9: Additional Costs. Costs incurred by the agency that
are added to the private sector or public reimbursable provider’s price/cost.
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SCF Line 10: One-time Conversion Costs. Costs based on 5% of Line
1, incurred by the agency as a result of awarding a contract.
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SCF Line 11: Gain on Assets. Revenue generated from the sale/transfer
of agency assets when converting from agency performance.
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SCF Line 12: Federal Income Tax Adjustment. Revenue for the government
when a private sector provider pays federal income tax.
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SCF Line 13: Total Adjusted Cost of Private Sector or Public Reimbursable Performance.
The sum of Lines 7-12.
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COST OF PERFORMANCE DECISION CALCULATIONS
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SCF Line 14: Conversion Differential. The lesser of 10% of agency
labor costs or $10 M is added to the non-incumbent provider.
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SCF Line 15: Adjusted Total Cost of Agency Performance. If a private
sector or public reimbursable source is the incumbent provider, the conversion differential
is added to the cost of agency performance (SCF Line 6) and the sum is the “adjusted
total cost of agency performance” on SCF Line 15.
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SCF Line 16: Adjusted Total Cost of Private Sector or Public Reimbursable Performance.
If the agency is the incumbent provider, the conversion differential is added to
SCF Line 13 and the sum is the “adjusted total cost of private sector or public
reimbursable performance” on SCF Line 16.
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SCF Line 17: Cost Difference. SCF Line 15 is subtracted from SCF
Line 16 to reflect the “cost difference” on SCF Line 17. A positive number indicates
performance decision for agency performance and a negative number indicates a performance
decision for a private sector or public reimbursable provider.
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SCF Line 18: Low-Cost Provider. The low-cost provider based on
the calculations on the SCF.
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