Compare Baseline

1
COMPARE Overview
2
COMPARE Overview

• Part One
• COMPARE Overview
• Preliminary Planning Baseline Cost
• Adjusted Baseline Cost
• Part Two
• Agency Cost Estimate

3
COMPARE Overview

• COMPARE is a cost comparison software designed to
  standardize the A-76 costing methodology and
  documentation
• It is a mandatory requirement for Preliminary
  Planning and Adjusted Baseline Cost Estimates and
  also the Agency Cost Estimate
• Baseline Costing For Public-Private Competitions,
  dated August 1, 2005 provides mandatory guidance
  for baseline costing
• http//www.dla.mil/j-3/A-76/DoDBaselineCosting.p
  df
• Purpose
• Tool that captures the competition costs and
  summarizes on
• Preliminary Planning Baseline Costs Report (BCR),
  Adjusted Baseline Costs Report (BCR) or
  Standard/Streamlined Competition Form (SCF or
  SLCF)
• Automatically calculates and updates costs
  including equipment depreciation, severance,
  contract administration, etc.
• Provides an auditable trail of all costs and
  allows cost information to be
• Collected
• Tracked
• Sourced

4
COMPARE Overview (cont)

• Specific guidelines for using the COMPARE
  software are provided on the SHARE A-76 Web site,
  in the COMPARE Users Guide, and Attachment C of
  OMB Circular A-76
• These sources should be checked frequently
  because updates to the COMPARE software occur
  regularly

http//www.comparea76.com/
The Office of the Deputy Under Secretary of
Defense (Installations Environment) Housing
Competitive Sourcing Office will release COMPARE
Version 3.0 on November 14, 2006.  The
primary difference in Version 3.0 is that the
programming and data management platform has been
upgraded to Microsoft Access 2003 technology.
5
Baseline Cost Models in COMPARE

• COMPARE has two types of baseline cost models
• Preliminary Planning Baseline Cost
• Adjusted Baseline Cost
• Preliminary Planning Baseline cost is used before
  the competition, during preliminary planning, to
  determine historical costs of the activity being
  studied
• Adjusted Baseline cost is used after the start of
  the competition to project the historical costs
  over the timeframe specified in the solicitation
  and is tailored to meet the requirements of the
  solicitation

6
Overview of Differences in COMPARE Models
7
COMPARE Overview

• Part One
• COMPARE Overview
• Preliminary Planning Baseline Cost
• Adjusted Baseline Cost
• Part Two
• Agency Cost Estimate

8
Preliminary Planning Baseline Cost

• Provided actual costs from a historical period
• Costs are used during preliminary planning
• Each preliminary planning baseline cost must
  reflect one year
• All costs from yearlong timeframe are included.
  Including costs from unusual requirements (eg.
  Natural disasters, mobilization)
• Cost data entered into lines 1-6 only. All other
  lines are disabled
• No costs are inflated or prorated
• Preliminary Planning Baseline files have a .p76
  extension
• Files can be converted to an Adjusted Baseline
  Cost file after preliminary planning
• Produces a Baseline Cost Report (BCR)

9
Preliminary Planning Baseline Lines 1-6
The Preliminary Planning Team is responsible for
inputting Lines 1-6 for the BCR

• Line 1 Personnel Costs
• Line 2 Material and Supply Costs
• Line 3 Other Specifically Attributable Costs
• (Liability Insurance)
• Line 4 Overhead Costs
• Line 5 Additional
  
• Line 6 Total Preliminary Planning Baseline Cost
• Total of Lines 1-5
• automatically calculated by COMPARE

10
Line 1 Personnel Costs for Preliminary Planning
Historical costs of personnel

• Include costs of all direct in-house labor and
  supervision for the activity currently under
  preliminary planning.
• Any subcontract administration and surveillance
• Include any internal quality control duties
• Includes any vacant positions waiting to be
  staffed

Salary costs using General Schedule (GS) Step 5
and Federal Wage System (FWS) Step 4

• Applicable special salary rate tables are used
• http//opm.gov/oca/06tables/indexGS.asp
• Includes all salaries/wages, and fringe benefits
• Include premium pay hours (e.g. overtime) per
  position/grade
• Usually based upon historical hours from pay
  records

11
Line 1 Personnel Costs for Preliminary Planning
Labor Escalation

• Personnel costs are not inflated in a Preliminary
  Planning Baseline cost because the performance
  period is for one year only
• Economic Price Adjustment (EPA) can be selected
  on Line 1, but has no effect on the final price
  as there is no inflation

12
Line 1 Other Entitlements

• Part of Basic Pay and earn full fringe benefits
• Usually FWS Employees only
• Environmental Differential Pay (EDP)
• Applies to workers that are exposed to a working
  condition that falls within one of the categories
  in the CFR (Appendix A to Subpart E of Part 532)
  differential rates and categories
• Multiply percentage rate for exposure by the
  basic hourly rate of a WG-10, step 2 multiply
  that amount by the number of EDP hours to be paid
• Night Shift Differential
• Percentage of normal hourly rate paid for non-
  overtime work when a majority of the scheduled
  hours occur during specified timeframes
• 7.5 when majority of scheduled hours occur 3
  p.m. 12 a.m.
• 10 when majority of scheduled hours occur 11
  p.m. 8 a.m.

13
Line 1 Fringe Benefits

• Fringe benefits in COMPARE are based on the Civil
  Service Retirement System (CSRS)
• Full or part-time permanent civilian positions
  36.45
• Medicare benefit cost factor 1.45
• Misc. Fringe Benefit 1.70
• Workmens compensation, bonuses, awards, and
  unemployment programs
• The standard civilian retirement benefit cost
  factor for civilian positions is 26.6 percent of
  the positions basic pay (20.4 percent retirement
  pension plus 6.2 percent for retiree health)
• Intermittent and temporary civilian positions
  7.65
• Only earn a percentage for FICA
• Old Age Survivors Insurance Benefit 6.20
• Medicare 1.45
• Includes awards based on annual performance
  ratings does not include cash awards for special
  acts

• The insurance and health benefit cost factor for
  civilian positions, based on actual cost, is 6.7
  percent of the positions basic pay (0.2 percent
  for life insurance benefits and 6.5 percent for
  health benefits)

14
Line 1 Other Civilian Pay

• Other Civilian pay is calculated from historical
  records and entered in COMPARE as the cost per
  FTE
• Overtime
• For FWS and FLSA Nonexempt GS positions,
  calculate one and one-half times the hourly rate
  of basic pay
• For FLSA Exempt GS positions with rates of basic
  pay greater than the basic pay for GS-10, step 1,
  the overtime hourly rate is the greater of
• the hourly rate of basic pay for GS-10, step 1,
  multiplied by 1.5
• the employees hourly rate of basic pay
• Holiday Pay
• Additional pay for work on a holiday at a rate
  equal to the hourly rate
• Sunday Pay
• Additional pay at a rate of 25 of the hourly
  rate for full-time positions whose regularly
  scheduled workweek includes Sunday

15
Line 1 Other Civilian Pay

• Cash Awards
• Include cash awards given for special acts that
  are over and above a civilian employees expected
  annual performance
• Night Differential for GS Positions
• Pay at the rate of 10 of the hourly rate for
  employees who work between 6 p.m. and 6 a.m. if
  the regular tour of duty includes work during
  such hours
• Hazardous Duty Pay (HDP) for GS Positions
• Additional pay to GS employees for the
  performance of hazardous duty or duty involving
  physical hardship
• See CFR listing (Appendix A to Subpart I of Part
  550) for differential rates and categories
• Multiply percentage rate for exposure by the
  employees hourly rate
• Multiply that amount by the number of HDP hours
  to be paid

16
Line 1 Determining Number of FTE

• The number of FTE used in the Preliminary
  Planning Baseline cost are calculated based on
  the number of hours used by the workforce
  performing the activity being studied
• To calculate the number of FTE to be inputted
  into COMPARE
• Identify the total number of annual available
  hours of work performed by the workforce in a
  specific grade during the baseline year
• Calculate the number of FTE by dividing the total
  number of annual available hours by 2,087 (annual
  available hours)
• Example
• 10 Full time positions x 2,087 Hours 20,870
  Hours
• 5 Temporary positions x 180 Hours 900 Hours
• Total Hours 20,870 900 21,770 Hours
• Total FTE 21,770/2087 10.431 FTE

17
Line 1 Determining Number of FTE
18
Line 2 Material and Supply Costs

• All costs are included, even those expected to be
  Government Furnished in the solicitation
• N must be selected for the GFP column
• Includes costs for goods such as raw materials,
  parts, subassemblies, components, fuel, and
  office supplies
• Actual historical usage of materials and supplies
  used to carry out the activity being studied.
• Any shared costs should be identified and should
  be based on the percent of usage by the activity
  being studied
• EPA is enabled on this line, but the selection
  makes no difference as there is no inflation

19
Line 3 Other Specifically Attributable Costs

• Depreciation
• Facilities
• Cost of Capital
• Rent
• Utilities
• Insurance
• Travel
• MEO Subcontracts
• Maintenance and Repair
• Other Costs

20
Line 3 Other Specifically Attributable Costs

• Rent
• Include the cost of rented or leased assets used
  to carry out the activity being studied
• Rent is incurred for, but not limited to, the
  use, operation, and maintenance of land, building
  space, plant and machinery
• Include all rent, even that which is expected to
  be GFP
• Any shared costs are to be calculated using the
  percent usage by the activity being studied
• Utilities
• Include any historical utilities
• Include all utilities, even those expected to be
  GFP
• Utility costs include, but are not limited to,
  electricity, telephone, water, and sewage
  services
• Any shared costs are to be calculated using the
  percent usage by the activity being studied

21
Line 3 Other Specifically Attributable Costs

• Insurance
• Liability Insurance
• Standard factor of 0.007 multiplied by total
  personnel-related costs on Line 1
• Casualty Insurance
• Standard factor of 0.005 applied to
• net book value of each capital asset
• annual cost of minor items
• one-month average value of materials and supplies
  
• COMPARE automatically calculates insurance

22
Line 3 Other Specifically Attributable Costs

• Travel
• Include costs for travel that took place over the
  one year timeframe
• Include any known recurring requirements even if
  not encountered in the year timeframe
• All subcontracts supporting activity being
  studied
• Labeled as MEO Subcontract Costs Worksheet in
  COMPARE, but there is no MEO at this point in
  the competition
• Include the cost of each subcontract used to
  support the activity under study
• Include applicable federal income tax offset
• COMPARE automatically computes this
• Include the cost of labor for administration and
  surveillance of each subcontract

23
Line 3 Other Specifically Attributable Costs

• Maintenance and Repair
• Historical cost of maintenance and repair, if
  applicable, for capital assets and minor items
• Other Costs
• Include costs that do not fit other Line 3
  categories
• Minor Items
• Individual assets costing less than 25,000
• Since no items are GFP, include 10 of the
  replacement cost of minor items
• Training
• Historical training costs, including travel
  costs, for recurring and/or specialized training
  necessary to maintain required licensing or
  certification

24
Line 4 Overhead

• Standard rate of 12 of the Line 1 civilian
  position labor costs, including fringe benefits
• COMPARE automatically calculates this line

25
Line 5 Additional Costs

• Catch all category for costs not otherwise
  represented or accounted for on Lines 1-4
• Medical Physical Exams
• No costs on this line are inflated or prorated
• Sufficient written documentation of all costs on
  this line must be included

26
Line 6 Total Preliminary Planning Baseline Cost

• The sum of Lines 1-5
• Automatic computation by COMPARE

27
COMPARE Overview

• Part One
• COMPARE Overview
• Preliminary Planning Baseline Cost
• Adjusted Baseline Cost
• Part Two
• Agency Cost Estimate

28
COMPARE and Adjusted Baseline Cost

• Used to project the Preliminary Planning Costs
  into the future
• Performance periods match those of the final
  solicitation
• Incorporates adjustments to account for
  requirements of the solicitation
• Cost data entered into lines 1-6 only. All other
  lines are disabled
• Costs are inflated and prorated using the factors
  in table 8 and based on the length of the
  performance periods
• GFP identified in the solicitation is not
  included
• Produces a Baseline Cost Report (BCR)
• COMPARE can automatically convert Preliminary
  Planning Baseline files (.p76) to Adjusted
  Baseline Cost files (.b76)

29
Converting Preliminary Planning to Adjusted
Baseline

• COMPARE can convert Preliminary Planning Baseline
  cost (.p76) files to Adjusted Baseline Cost
  (.b76) files at the start of the competition
• A second file with a .b76 extension is created,
  leaving the Preliminary Planning File unchanged
• From the main Competition Information screen in
  COMPARE, use the Convert File button and
  choose Adjusted Baseline Cost (ABC) .b76 as the
  file type is converted

30
Line 1 Personnel Costs for Adjusted Baseline
Labor Escalation -

• Inflation for wages and salaries of civilian
  positions and private sector service positions is
  included in all proposals (agency and private
  sector)
• An economic price adjustment (EPA) for services
  and construction labor is determined by the
  Service Contract Act (SCA), the Davis-Bacon Act,
  and FAR Part 22
• Check solicitation for Federal Acquisition
  Regulations (FAR) clause 52.222-43 or 52.222-44
• Does not include inflation applied to all
  civilian positions for all performance periods
• Does include inflation in accordance with
  Attachment C, Section B, paragraph 2.k.(2) of the
  A-76 Circular

31
Line 3 Other Specifically Attributable Costs
For Adjusted Baseline

• GFP Casualty Insurance
• Table (Figure C5.) provides likely GFP FAR
  clauses that a solicitation is likely to contain
• Depending on the FAR provisions included in the
  solicitation, agencies may be required to
  determine and manually input the cost data into
  COMPARE

32
Line 4 Overhead

• Standard rate of 12 of the Line 1 civilian
  position labor costs, including fringe benefits
• COMPARE automatically calculates this line

33
Line 5 Additional Costs

• Catch all category for costs not otherwise
  represented or accounted for on Lines 1-4
• Medical Physical Exams
• Costs on this line are inflated and prorated
• Sufficient written documentation of all costs on
  this line must be included

34
Line 6 Total Adjusted Baseline Cost

• The sum of Lines 1-5
• Automatic computation by COMPARE

35
Questions?
36
COMPARE Overview

• Part One
• COMPARE Overview
• Preliminary Planning Baseline Cost
• Adjusted Baseline Cost
• Part Two
• Agency Cost Estimate

37
COMPARE and Agency Cost Estimate (ACE)

• COMPARE is used to standardize the A-76 costing
  methodology and documentation
• It is a mandatory requirement for all
  streamlined and standard A-76 competitions
• Purpose
• Tool that captures the ACE and summarizes the
  
  entire A-76 process on a single sheet
  of paper
• Standard Competition Form (SCF) or
• Streamlined Competition Form (SLCF)
• Automatically calculates and updates costs
  including
  inflation factors,
  equipment depreciation, severance, contract
  administration, etc.
• Provides an auditable trail of MEO costs and
  allows cost information to be
• Collected
• Tracked
• Sourced

The SCF or SLCF is used to compare the estimated
in-house cost with the cost of the public
reimbursable/contract performance to aid in the
performance decision
38
Agency Cost Estimates Lines 1-6

• In the Agency Cost Estimate, Lines 1-6 are
  calculated the same as Lines 1-6 in the Adjusted
  Baseline Cost
• All costs are inflated and prorated where
  appropriate according to the requirements of the
  solicitation
• Costs reflect the requirements of the
  solicitation

39
Agency Cost Estimate Lines 1-6
The Agency Tender Team is responsible for
inputting Lines 1-6 for the ACE

• Line 1 Personnel Costs
• Line 2 Material and Supply Costs
• Line 3 Other Specifically Attributable Costs
• (Liability Insurance)
• Line 4 Overhead Costs
• Line 5 Additional
  
• Line 6 Total Cost of Agency Performance
• Total of Lines 1-5
• automatically calculated by COMPARE

40
Line 1 Personnel Costs

• Costs for MEO personnel to accomplish the
  requirements in the PWS
• Include costs of all direct in-house labor and
  supervision that are necessary to perform the
  service or provide the product
• MEO subcontract administration and surveillance
• Include MEO internal quality control duties
• Include labor costs for MEO administration and
  inspection (i.e. monitor performance and
  compliance with the MEO letter of obligation)
• Cost grades using General Schedule (GS) Step 5
  and Federal Wage System (FWS) Step 4
• Applicable Special Salary Rate Tables are used

41
Line 1 Personnel Costs

• Includes all salaries/wages, and fringe benefits
• Economic Price Adjustment (EPA) and labor
  escalation
• Include premium pay hours (e.g. overtime) per
  position/grade
• Usually based upon historical hours from pay
  records

42
Line 1 Personnel Costs
Labor Escalation -

• Inflation for wages and salaries of civilian
  positions and private sector service positions is
  included in all proposals (agency and private
  sector)
• An economic price adjustment (EPA) for services
  and construction labor is determined by the
  Service Contract Act (SCA), the Davis-Bacon Act,
  and FAR Part 22
• Check solicitation for Federal Acquisition
  Regulations (FAR) clause 52.222-43 or 52.222-44
• Does not include inflation applied to all
  civilian positions for all performance periods
• Does include inflation in accordance with
  Attachment C, Section B, paragraph 2.k.(2) of the
  A-76 Circular

43
Line 1 Labor Escalation

• SCA requires payment of prevailing wage rates and
  fringe benefits on contracts to provide services
  to the federal government
• Wage determinations list prevailing rates
• Prevailing rate is minimum rate that the
  contractor must pay employees working on the
  contract
• Economic adjustments negotiated with contracting
  when new wage determination issued

44
Line 1 Labor Escalation

• Look at Fair Labor Standards Act (FLSA)
  classifications on position descriptions as a
  guide to make EPA determinations
• Exempt under FLSA NO to EPA
• Non-exempt under FLSA YES to EPA
• Costs for civilian positions subject to EPA
  inflate through the end of first full period of
  performance only
• Assume offerors will not inflate costs for
  positions subject to the SCA
• Costs for civilian positions not subject EPA
  inflate for all performance periods

45
Line 1 Other Entitlements

• Part of Basic Pay and earn full fringe benefits
• Usually FWS Employees only
• Environmental Differential Pay
• Applies to workers that are exposed to a working
  condition that falls within one of the categories
  in the CFR (Appendix A to Subpart E of Part 532)
  differential rates and categories
• Multiply percentage rate for exposure by the
  basic hourly rate of a WG-10, step 2 Multiply
  that amount by the number of EDP hours to be paid
• Night Shift Differential

46
Line 1 Fringe Benefits

• Fringe benefits in COMPARE are based on the Civil
  Service Retirement System (CSRS)
• Full or part-time permanent civilian positions
  32.85
• Medicare factor 1.45
• Misc. Fringe Benefit 1.70
• Workmens compensation, bonuses, awards, and
  unemployment programs
• Pension 18.90
• Retiree Health 5.10
• Other Benefits 5.70
  
• Intermittent and temporary civilian positions
  7.65
• Only earn a percentage for FICA
• Old Age Survivors Insurance Benefit 6.20
• Medicare 1.45
• Includes awards based on annual performance
  ratings does not include cash awards for special
  acts

47
Line 1 Other Civilian Pay

• Overtime
• For FWS and FLSA Nonexempt GS positions,
  calculate one and one-half times the hourly rate
  of basic pay
• For FLSA Exempt GS positions with rates of basic
  pay greater than the basic pay for GS-10, step 1,
  the overtime hourly rate is the greater of
• (1) the hourly rate of basic pay for GS-10, step
  1, multiplied by 1.5
• (2) the employees hourly rate of basic pay
• Holiday Pay
• Additional pay for work on a holiday at a rate
  equal to the hourly rate
• Sunday Pay
• Additional pay at a rate of 25 of the hourly
  rate for full-time positions whose regularly
  scheduled workweek includes Sunday

48
Line 1 Other Civilian Pay

• Cash Awards
• Include cash awards given for special acts that
  are over and above a civilian employees expected
  annual performance
• Night Differential for GS Positions
• Pay at the rate of 10 of the hourly rate for
  employees who work between 6 p.m. and 6 a.m. if
  the regular tour of duty includes work during
  such hours
• Hazardous Duty Pay for GS Positions
• Additional pay to GS employees for the
  performance of hazardous duty or duty involving
  physical hardship
• See CFR listing (Appendix A to Subpart I of Part
  550) for differential rates and categories
• Multiply percentage rate for exposure by the
  employees hourly rate
• Multiply that amount by the number of HDP hours
  to be paid

49
Line 1 - Position Types

• Full-time/Part-time (FT/PT) Permanent
• Full fringe benefits 32.85
• 1,776 annual productive hours
• 2,087 paid hours
• Temporary
• FICA only 7.65
• 1,776 annual productive hours

• Intermittent
• FICA only 7.65
• 2,007 annual productive hours
• Seasonal
• 1,776 annual productive hours
• Permanent Seasonal 32.85
• Temporary Seasonal 7.65

• THE QUESTION ASKED IN EVERY COMPETITION
• WHERE DID 1,776 HOURS COME FROM?
• There are 2,087 productive hours in a non-leap
  year
• For estimating purposes a factor of 2,087
  (365.25/7 days 52.17857 weeks per year) is used
  to account for the leap year
• Then 10 holidays (80 hours) is subtracted to
  arrive at 2,007 hours
• The remaining difference (2,007 1,776) of 231
  hours accounts for an average of all other
  non-productive time categories, such as
• Annual leave, sick leave, organizational duties,
  jury duty, blood drives, leave without pay,
  family leave, education, training, etc.

50
Line 2 Material and Supply Costs

• Includes costs for goods such as raw materials,
  parts, subassemblies, components, fuel, and
  office supplies
• Adjust historical or engineering estimates of
  material and supply use, and cost data, to
  reflect the solicitation requirements
• Record the sources of the material information
• Do not include costs for materials and supplies
  that are government furnished
• If the solicitation includes a cost ceiling, the
  agency estimate shall include this

51
Line 3 Other Specifically Attributable Costs

• Depreciation
• Facilities
• Cost of Capital
• Rent
• Utilities
• Insurance
• Travel
• MEO Subcontracts
• Maintenance and Repair
• Other Costs

52
Line 3 Other Specifically Attributable Costs

• Depreciation
• Capital Assets major items costing 25,000 or
  more
• Depreciate capital assets NOT provided to all
  prospective providers as Government Furnished
  Property (GFP)
• Facilities
• If NOT provided as GFP, use the useful life
  expectancies in Figure C4. of the Circular to
  estimate the cost of facilities
• Cost of Capital
• Calculate for capital assets in the cost estimate
  if the item is (1) not provided as GFP, and (2)
  scheduled for purchase within any of the
  performance periods in the solicitation

53
Line 3 Other Specifically Attributable Costs

• Rent
• Include the cost of rented or leased assets used
  in the agency tender, but not provided as GFP
• Rent is incurred for, but not limited to, the
  use, operation, and maintenance of land, building
  space, plant and machinery
• Utilities
• Include any utilities not provided as GFP
• Utility costs include, but are not limited to,
  electricity, telephone, water, and sewage
  services
• Insurance
• Liability Insurance
• Standard factor of 0.007 multiplied by total
  personnel - related costs on Line 1
• COMPARE automatically calculates this entry

54
Line 3 Other Specifically Attributable Costs

• Insurance
• Liability Insurance
• Standard factor of 0.007 multiplied by total
  personnel-related costs on Line 1
• Casualty Insurance
• Standard factor of 0.005 applied to
• net book value of each capital asset
• annual cost of minor items
• one-month average value of materials and supplies
  
• COMPARE automatically calculates insurance

55
Line 3 Other Specifically Attributable Costs

• Travel
• Include costs for travel not provided as
  government furnished
• If the solicitation includes a cost ceiling for
  travel, the agency cost estimate shall include
  this cost
• MEO Subcontracts
• Include the cost of each subcontract included in
  a tender, but not made available to all
  prospective providers
• Include applicable inflation and federal income
  tax offset
• COMPARE automatically computes
• Include the cost of labor for administration and
  surveillance of each subcontract

56
Line 3 Other Specifically Attributable Costs

• Maintenance and Repair
• Calculate the cost of maintenance and repair, if
  applicable, for capital assets and minor items to
  account for the cost of routine maintenance on
  buildings and for equipment
• Other Costs
• Include costs that do not fit other Line 3
  categories
• Minor Items
• Individual assets costing less than 25,000
• Include 10 of the replacement cost of minor
  items not provided as GFP
• Training
• Calculate training costs, including travel costs,
  for recurring and/or specialized training
  necessary to maintain required licensing or
  certification

57
Line 4 Overhead

• Standard rate of 12 of the Line 1 civilian
  position labor costs, including fringe benefits
• COMPARE automatically calculates this line

58
Line 5 Additional Costs

• Catch all category for costs not otherwise
  represented or accounted for on Lines 1-4
• Medical Physical Exams
• Sufficient written documentation of all costs on
  this line must be included

59
Line 6 Total Cost of Agency Performance

• The sum of Lines 1-5
• Automatic computation by COMPARE

60
Private Sector or Public Reimbursable
Performance Lines 7-13
The KO is responsible for Line 7. The Agency
Tender Team is responsible for Lines 9 and 11

• Line 7 Contract Price or Public Reimbursable
  Cost Estimate
• Line 8 Contract Administration Costs
• Line 9 Additional Costs
• Line 10 One-time Conversion Costs
• Line 11 Gain on Assets
• Line 12 Federal Income Tax Adjustment
• Line 13 Total Adjusted Cost of Private Sector
  or Public Reimbursable Performance
• total of Lines 8, 9 10, minus Lines 11 12
• automatically calculated by COMPARE

61
Line 7 Contract Price or Public Reimbursable
Cost Estimate

• KO enters the private sector contract price(s),
  or public reimbursable cost estimate(s) on Line 7
  of the SCF, as appropriate
• If contract price entered, the KO shall comply
  with the source selection process requirements in
  Attachment B of the Circular
• Determine contract price based on the contract
  type stated in the solicitation (e.g. for Cost
  Plus Award Fee Contract enter negotiated
  estimated cost plus award fee)

62
Line 8 Contract Administration

• Added to Contractors offer
• Costs over and above administrative costs to
  administer the same work performed by in-house
  employees
• Accounts for full range of labor and non-labor
  requirements
• Costs associated with reviewing compliance with
  the terms of the contract, processing payments,
  negotiating change orders, and monitoring the
  closeout of contract operations
• Does NOT include cost of surveillance performed
  by quality assurance evaluators
• These are common costs regardless of the source
  of the selected service provider
• Does NOT include staff for quality control part
  of MEO

63
Line 8 Contract Administration

• Allowable FTE and grade structure based on total
  Line 1 staffing (Figure C6. of the Circular)

64
Line 9 - Additional

• Not commonly used
• Any additional costs to the agency, such as
  transportation or purchased services, resulting
  from unusual or special circumstances
• Costs must be documented
• Indicate the reason the additional cost will not
  be incurred if the activity is performed by the
  agency source

65
Line 10 One-time Conversion Costs

• One-time costs incurred by the agency for
  converting an activity performed by government
  personnel to a private sector or public
  reimbursable source
• Severance Costs
• 4 of Line 1 Basic Pay, adjusted for inflation,
  for the first period of full performance (not the
  phase-in period)
• Other Costs
• 1 of Line 1 Basic Pay, adjusted for inflation,
  for the first period of full performance (not the
  phase-in period)
• Accounts for all other one-time conversion costs
  such as relocation and retraining

66
Line 11 Gain on Assets

• Estimated gain on assets from the sale or
  transfer of government assets at the net book
  value of the asset
• Generates revenue for the government therefore,
  the cost reduces the total cost of private sector
  or public reimbursable performance
• Only negative number or zero can be entered

67
Line 12 Federal Income Tax Adjustment

• Considers the potential Federal income tax
  revenue to the government unless the private
  sector source is a tax-exempt organization
• KO selects appropriate tax code when entering
  contract price
• COMPARE automatically applies the rate
• Estimated amount of Federal income tax will be
  entered as a deduction, therefore reducing the
  cost of the contract price

68
Line 13 Total Adjusted Cost of Private Sector
or Public Reimbursable Performance

• The sum of Lines 7-12
• Represents the total cost to the government of
  private sector performance
• Automatic computation by COMPARE

69
Decision Lines 14-18

• Line 14 Conversion Differential
• Line 15 Adjusted Total Cost of Agency
  Performance
• Line 16 Adjusted Total Cost of Private Sector
  or Public Reimbursable Performance
• Line 17 Cost Difference (Line 16 minus Line
  15)
• Line 18 Low-Cost Provider
• Agency Provider
• Private Sector Provider
• Public Reimbursable Provider

70
Line 14 Conversion Differential

• A conversion differential of 10 percent of
  personnel costs from Line 1 (or 10M) must be met
  before converting to or from agency, private
  sector, or public reimbursable performance
• The conversion differential precludes conversions
  based on marginal estimated savings, and captures
  non-quantifiable costs related to a conversion,
  such as disruption and decreased productivity
• Conversion differential applies to all standard
  competitions
• It depends for streamlined competitions
• Transportation - Treasury must create an MEO if
  study is more than 10 FTE - and get conversion
  differential
• Interior and Defense get conversion differential
  for any study of more than 10 FTE
• All others - no conversion differential for
  streamlined studies

Automatic computation by COMPARE
71
Lines 15-18

• Line 15 Adjusted Total Cost of Agency
  Performance
• Line 6 Total
• Line 16 Adjusted Total Cost of Private Sector
  or Public Reimbursable Performance
• Line 13 Total Line 14 Total
• Line 17 Cost Difference
• Line 16 minus Line 15
• Line 18 Low-Cost Provider
• The appropriate decision is shown

Lines 15-18 are all automatically computed by
COMPARE
72
Standard Competition Form (SCF)
Figure C2. OMB Circular No. A-76
73
Standard Competition Form (SCF) (contd.)
Figure C2. OMB Circular No. A-76
74
Standard Competition Form (SCF) (contd.)
Figure B4. OMB A-76 Circular
75
COMPARE TABLE Changes occur and adjustments that
AT / MEO teams should be cognizant of published
changes

• TABLE CHANGESThe following table update(s) are
  complete and ready to download to COMPARE as
  provided in the release information section
  below(1) Master Table 5 This change updates
  the Military/Uniformed Services Composite Pay
  Rates to reflect the 2007 rates provided in the
  column titled Annual Rate Billable to Other
  Federal Agencies, in Tab K of the Office of the
  Under Secretary of Defense (Comptroller) Memo,
  subject FY2007 Department of Defense (DoD)
  Military Personnel Composite Standard Pay and
  Reimbursement Rates(1) Master Table 7 This
  change updates the Civilian Position Full Fringe
  Benefit Cost Factor to include updates to the
  Insurance and Health Benefit and Standard
  Civilian Retirement Benefit Factors as published
  by OMB in the Federal Register on November 1,
  2006(1) Master Table 7 This change updates the
  Special Class Retirement Cost Factors for Air
  Traffic Control, Law Enforcement and Fire
  Protection professions as published by OMB in the
  Federal Register on November 1, 2006(1) Master
  Table 8 This change incorporates the Military
  Civilian Labor and Operations Maintenance
  inflation factors as published by OMB in the
  Federal Register on November 1, 2006(2) Master
  Table 8 This change incorporates the Fuels
  inflation factors from the FY07 Greenbook
  published by the Office of the Under Secretary of
  Defense (Comptroller)(3) Master Table 14 This
  change incorporates the revised Tax Rates table
  as published by OMB and approved in the Federal
  Register on November 1, 2006

RELEASE INFORMATIONThe above update is included
in this release of the COMPARE Master Table
Update File and will be available for download
after 900 AM November 1, 2006. The table
version date for Master Tables 5, 7, 8 and 14
will display 11/01/06 once the update is
successfully loaded into COMPARE
76
Questions?
Presented by David Price, Associate, Booz Allen
work 703- 902-5384 email price_david_at_bah.com