Verifying Rates for SBIR Phase I

[Sue1234]

I am working on a SBIR Phase I POM and trying to verify labor, fringe benefits, overhead and G&A rates. I have requested verification from DCAA and they cannot verify the rates because they do not have any information on the vendor. I requested pay stubs but what was sent to me is not complete. I asked if they had any other government contracts and they said that they had an Air Force contract. I asked for the contract number so I could contact the Contracting Officer to see how they verified these rates and the vendor will not give me this information. Does anyone know of any other way short of a DCAA audit that I could use to verify these rates.

[here_2_help]

I am working on a SBIR Phase I POM and trying to verify labor, fringe benefits, overhead and G&A rates. I have requested verification from DCAA and they cannot verify the rates because they do not have any information on the vendor. I requested pay stubs but what was sent to me is not complete. I asked if they had any other government contracts and they said that they had an Air Force contract. I asked for the contract number so I could contact the Contracting Officer to see how they verified these rates and the vendor will not give me this information. Does anyone know of any other way short of a DCAA audit that I could use to verify these rates.

No I don't have a good answer for you. But I have a couple of questions/thoughts. Some of the questions may be stupid, because I'm not an SBIR expert. So sorry if I'm about to expose my ignorance.

1. If the vendor will not give you information related to its current USAF contract, what else is it not telling you? How do you expect the relationship to be with the vendor going forward?

2. Even if you asked DCAA to "verify" the rates, the most likely scenario is that the agency will not be able to do so--at least for a number of months. Most small businesses aren't set up the way DCAA wants them to be, and they will have a difficult time meeting SF 1408 requirements. Most small businesses fail their first DCAA audit, as well as the second and sometimes the third one as well.

3. What contract type to you intend to award? Do you really need all the cost information you are asking for?

Hope this is helpful (in some way).

[civ_1102]

Are actually doing a Phase I SBIR on a CPFF basis? That is probably your first mistake. Be that as it may, if you are using a contract type where you are required to perform cost realism or cost analysis (as it sounds like may be the case), you could proceed by informing the prospective contractor that you cannot complete your analysis without this information and they will therefore not get an award. That might convicne them to provide you with the data you need. Regarding DCAA, if this company has never had their rates audited, I strongly doubt DCAA is going to give you any help on a $100,000 SBIR phase I award. And if they do, expect to wait awhile.

[Sue1234]

No I don't have a good answer for you. But I have a couple of questions/thoughts. Some of the questions may be stupid, because I'm not an SBIR expert. So sorry if I'm about to expose my ignorance.

1. If the vendor will not give you information related to its current USAF contract, what else is it not telling you? How do you expect the relationship to be with the vendor going forward?

2. Even if you asked DCAA to "verify" the rates, the most likely scenario is that the agency will not be able to do so--at least for a number of months. Most small businesses aren't set up the way DCAA wants them to be, and they will have a difficult time meeting SF 1408 requirements. Most small businesses fail their first DCAA audit, as well as the second and sometimes the third one as well.

3. What contract type to you intend to award? Do you really need all the cost information you are asking for?

Hope this is helpful (in some way).

1. I have been wondering about the relationship myself. I was able to get a copy of the contract from DCMA and am not sure why the contractor did not want to provide it. Maybe since he is new, he only has the one other contract, he does not understand how contracting in the government works.

2. DCAA could not verify the rates and suggested DCMA who also could not verify the rates but could provide a copy of the contract.

3. It is a FFP contract and for our POMs they want all this information in there.

Thanks

[Sue1234]

Are actually doing a Phase I SBIR on a CPFF basis? That is probably your first mistake. Be that as it may, if you are using a contract type where you are required to perform cost realism or cost analysis (as it sounds like may be the case), you could proceed by informing the prospective contractor that you cannot complete your analysis without this information and they will therefore not get an award. That might convicne them to provide you with the data you need. Regarding DCAA, if this company has never had their rates audited, I strongly doubt DCAA is going to give you any help on a $100,000 SBIR phase I award. And if they do, expect to wait awhile.

DCAA does not want to do an audit for such a low price. This is a FFP but our agency requires us to do spreadsheets to verify the information so that we can determine if we need to negotiate.

[civ_1102]

Well then assuming that your RFP contained the provision for it, tell the offeror that they will need to submit information other than cost/pricing data in the form ofpayroll documents etc and that if they do not provide it, you will be unable to issue an award to them. Second, I would challenge your agency policy through appropriate channels. Ask them if the risk involved with awarding an SBIR phase I on a FFP basis is truly worth the administrative expense of the analysis that they are requiring?

[Guest Vern Edwards]

Why don't you develop your spreadsheet, send it to the contractor, and tell it to fill in the blanks and provide supporting data?