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About Mayonayze

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  1. Hope everyone is gearing up for a happy 4th of July! In my research, i am finding that there appear to be multiple approaches to calculating cost wrap rates, so i was hoping to have the WIFCON crew to weigh in. The options as i have seen them: (1+Fringe Rate + OH Rate) * (1+G&A Rate) = Wrap Option 1 1 + Fringe Rate + OH Rate + G&A Rate = Wrap Option 2 (1+ Fringe Rate)*(1+ OH Rate)*(1+G&A Rate) = Wrap Option 3 These calculations all obviously yield different cost wraps assuming the component rates are the same. Please provide any experience you have with these options and any explanation into which method applies to what sort of situation. TIA!!!
  2. Hypothetical: a company is bidding a contract which, if awarded, will triple its direct labor base. The company has forward pricing indirect rates, but those rates do not accurately represent the true indirect cost realized if the program is awarded. Can the company request DCMA to allow them to bid a ‘win-only’ adjusted set of indirect rates to use in calculating cost and price on the program? If so, what is the process? Does it vary based on contract type?
  3. Mayonayze

    Contractor CAS Segmentation

    'At a fundamental level, you can tell segmentation by G&A rates. Each individual segment must have, by definition, its own unique G&A rate.' so if there is not a link between a regulatory coding mechanism and CAS disclosure, is it possible that there is a link between specific indirect pools and coding?
  4. What are the unique identifying codes/registrations that a contractor is required to have in order to create a new business segment that will carry it's own CAS disclosure statement? For instance, is a DUNS required to establish a new CAS disclosed segment? Some of the larger contractors have dozens of disclosed CAS segments, how does the government keep track of these dozens of disclosures for the larger contractors? By unique segment operating headquarters address?
  5. Mayonayze

    TEP = Sum of Labor Rates

    How was that section M structured? Did it state that it wasn't going to evaluate price as part of the best value evaluation? This section M clearly states that price is part of the evaluation and has a distinct weighting compared to other evaluation factors.
  6. I am reviewing a DRFP Q&A where the Government states that their expected means of calculating the TEP in a best value evaluation for a highly complex multiple award IDIQ CLS program will be to simply sum the labor rates in a labor rate table attachment. I have never seen this before, and am wondering what the merits/limitations are of this price evaluation methodology in a best value competition. For clarification: LCAT / HOURLY RATE PM /120 PC / 70 SE / 110 ME / 90 JE / 50 TEP 440 Thoughts?
  7. Good morning, Team! I am trying to locate resources that would be helpful in an initial charting of the Canadian governement (defense particularly) procurement regulation and best practices. As with all of my requests here, i am sure that 90% of the response will be "you can't do it alone, hire a specialist" and i always appreciate that feedback. But we are early in the process and rolling on a shoe-string budget, so i hope that helps stave off the 'you're dumb, get a specialist' feedback Any help would be greatly appreciated! TIA!
  8. Thanks! I understand the complexity (as it eludes many of our resident CPA's) and that i probably have been taught a few wrong things about it along the way. Which is why i was looking for a good resource or reference for making better sense of it and educating myself on it. The cash flow implications are of particular interest, so if there is a certain rung of the rabbit hole addressing that area, specifically, i would like to pull my chute there. TIA!!!!
  9. Team, Where can i find some information detailing the treatment of these two kinds of assets? To be clear, a project asset is something procured for use on a single program whereas a capital asset is something purchased that can benefit multiple programs. Is there a difference in the time period of capitalization? Who takes title to the asset and when? Does CAS treat them differently or is it something that varies by each contractor's disclosure? Is there a distinct diffference in how to price either of these two classifications of assets?
  10. Sorry for the late reply, Team! In my simple example, there are no other costs to consider other than the hammer as a material line-item. G&A for HR,Finance, BD, and similar. M&H for the procure-to-pay resources. The general observation is that the hammer (itself) does not benefit from Payroll, Benefits, Capture Support, and other G&A allocation, so its cost is neither absorbed into that base nor is G&A allocated to it in a cost build-up; under the VA construct. However, the labor resources in the M&H procure-to-pay pool do benefit from the G&A allocation and so they are absorbed into the G&A base and hit with the allocation in the cost build-up for the hammer. The hammer does benefit from procure-to-pay in M&H so its cost is absorbed into that base and allocated the rate in the cost build up. Conversely, in the TCI example, the base cost of the hammer is absorbed into the G&A allocation and assessed G&A in the calculation of the cost build-up for the hammer. Hammer will receive a paycheck and benefits this week The ask in my original post was to make sure that these concepts were sound and not in direct offense of CAS guidelines. Sorry for any confusion, or if the example is oversimplified and therefore not demonstrative of the fundamental compliance baselines for each type of disclosure.
  11. Please review the below examples and advise on how to correct: Cost-type contract requires purchase of a hammer. Company A has a TCI CAS disclosure. Cost is as follows: Cost of Hammer x (1 + M&H) = Subtotal Subtotal x (1 + G&A) = Total cost of hammer Company B has a similar contract requiring purchase of a hammer but has a Value-Add CAS disclosure. Cost is as follows: Cost of Hammer x M&H = M&H base Cost of Hammer x (1 + M&H) = subtotal 1 M&H base x (1 + G&A) = subtotal 2 Subtotal 1 + Subtotal 2 = Total cost of hammer
  12. *sips tea* very well then. good day to you.
  13. if not the FAR, then perhaps the WIFCON bag of wisdom can shake forth a nugget of advice or experience?
  14. not yet, i just didn't know if there were provisions set forth in the FAR that outlined the criteria for a waiver.
  15. Trying to find the section of the FAR that deals with these kinds of contract arrangements. under what circumstances are relief from the NTE labor rate granted? if the basis of pricing provides for a $50k salary based on statistical compensation analysis and salary surveys, but the market for this particular LCAT is highly volatile and by the time a task-order for this labor is released, the mid-point of the compa-ratio range has moved up and we can't find these guys for less than $55k, then are we stuck holding $5k of that salary in unallowable? doesn't seem to be in the true nature of a CPFF contract...