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We are a DoD prime contractor, and a subcontractor submitted a proposal to us.

the Subs proposal is FFP , it exceeds 2M threshold, my question is in order to be compliant on the cover page with FAR 15.408, does the Fee need to be separated out from the quoted price, and the total price?

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1 hour ago, general_correspondence said:

... my question is in order to be compliant on the cover page with FAR 15.408, does the Fee need to be separated out from the quoted price, and the total price?

Table 15-2 General Instruction A.(6) states that "proposed cost; profit or fee; and total" information (FFP proposals include profit, not fee) needs to be provided on 1st page of pricing proposal. Are you having questions about that? It is assumed that FAR 52.215-12 is included in your prime, has been flowed to the subcontractor, and no exceptions apply to the requirement for cost or pricing data.

Edited by Neil Roberts
duplicate language deleted

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So the short answer is "likely yes."

If you determine that it's subject to Certified Cost or Pricing Data (exceeds $2M and is not otherwise exempt based on flowdown or exemptions listed in 15.403-1 shown here) then you'll need to write a cost analysis.  That analysis covers each cost element separately as well as profit.

Taking it one step further, if you need training on cost analysis or want to outsource this effort, this is something we do regularly on behalf of DoD Primes and would be happy to do so for your company as well.

Patrick

 

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thanks everyone, yes it is subject to certified cost and pricing, and yes Neil FAR 52.215-12 is in our prime contract, but if the subcontractor making the offeror skipped over the "profit" is their proposal non responsive, and non compliant?

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4 minutes ago, general_correspondence said:

if the subcontractor making the offeror skipped over the "profit" is their proposal non responsive, and non compliant?

What do you mean "skipped over"?  In any event, the rules that apply to a prime proposal, e.g., responsiveness, do not apply to proposals from potential subcontractors unless the prime says they do.

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2 minutes ago, general_correspondence said:

...but if the subcontractor making the offeror skipped over the "profit" is their proposal non responsive, and non compliant?

Characterizing responsiveness depends. For example, if there is a grand total amount and an amount for total cost, could the difference between the two could be assumed for now to be profit even if the proposal didn't say so? Is that non-responsive or is it a technical deficiency? What is gained or lost by calling it non-responsive or non-compliant. If this is not competitive, calling it non-responsive or non-compliant seems like shooting yourself in the foot...just call it to their attention and request a revision. Did the RFP indicate what would be non-responsive or non-compliant? These are rhetorical comments.    

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the proposed cost, is the same number as the total cost.  they skipped over the profit portion.  So retread, that means it looks like this:

proposed cost: $ 2,000,001             Profit/Fee: ___________              Total: $2,000,001

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40 minutes ago, general_correspondence said:

the proposed cost, is the same number as the total cost.  they skipped over the profit portion.  So retread, that means it looks like this:

proposed cost: $ 2,000,001             Profit/Fee: ___________              Total: $2,000,001

Some subcontractors claim proprietary/competitive reasons why it will not disclose elements to a prime contractor. Is that the case here? You have a total but no breakdown of elements????

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It would appear that the sub didn’t provide cost data if it simply provided a total price.

Regardless of whether “certified” cost or pricing data is required, you can require a sole source sub to provide some detailed breakdown of the price into its cost elements and profit or fee for a significant sized subcontract (or for any size sole source, non-commercial subcontract for that matter, if necessary).

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Anybody want to know if the subK is claiming commerciality?

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22 minutes ago, here_2_help said:

Anybody want to know if the subK is claiming commerciality?

Well, I asked the original poster if the subcontract is subject to certified cost or pricing data, and he or she answered YES to that question.  

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36 minutes ago, ji20874 said:

Well, I asked the original poster if the subcontract is subject to certified cost or pricing data, and he or she answered YES to that question.  

Point taken. We are relying on the OP's knowledge of 15.403. Probably a necessary thing.

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14 hours ago, joel hoffman said:

It would appear that the sub didn’t provide cost data if it simply provided a total price.

Not necessarily.  A proposal is not cost or pricing data.

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On 6/24/2020 at 6:34 AM, general_correspondence said:

We are a DoD prime contractor, and a subcontractor submitted a proposal to us.

the Subs proposal is FFP , it exceeds 2M threshold, my question is in order to be compliant on the cover page with FAR 15.408, does the Fee need to be separated out from the quoted price, and the total price?

GC, can't yet figure out why you are focusing solely on profit and I have little to go on as to what the rest of the subcontract proposal looks like. So, it appears that your company may be in breach of its prime contract requirement per 52.215-12. Suggest you add a clause in the subcontract that if seller does not comply with FAR 52.215-12, and this results in Government reduction of your company's prime contract price, and/or the Government imposes a penalty, your company may recover said amount from subcontractor.

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