FAR11

JMG - That was the other method that I have seen but has been somewhat controversial with industry as to realistic rates. What happens if 3 of 6 contractors are "buying in" then the statistical analysis would be unrealistically low? I was trying to see if I could find another alternative then using the data set proposed by bidders. I'm not sure what makes up the data on salary.com and glassceiling.com to trust the information.

I am interested in hearing other's feedback on their methodology for cost realism. Most RFPs that I have seen utilize a hierarchal system for direct and indirect labor rates such as the following:

Direct Labor: Payroll, DCMA FPRR/FPRA, letters of intent, contractor's methodology

Indirect: DCMA FPRR/FPRA, historical actuals

Many contractors do not give the requested documents or give a methodology that is difficult to verify. I am looking for another alternative to determine realism (i.e. someone is not lowballing) in the event that substantial data is not given.

Also, I agree that labor category definitions/mix is important but responses from contractors often just repeat what the government provided.

I'm looking for input on performing cost realism on direct labor rates and indirect rates in a competitive CPFF LOE environment. Any input is greatly appreciated.

It would be very useful to know if the contractor has an approved accounting and purchasing system. I find it very difficult to get this information in a timely manner.