SUBCONTRACTOR PROPOSAL COMPLIANCE CHECKLIST (SPCC)
PREPARATION GUIDELINES
FAR 15.403-4 sets forth those circumstances in which subcontractors are required to submit certified cost or pricing data. The responsibility for providing well-prepared and fully supportable cost proposals for sole source acquisitions that exceed the TINA threshold lies solely with the subcontractor. The basis and rationale for all proposed costs shall be provided as part of the proposal so that the Buyer may rely on the information as sufficiently current to permit negotiation of a fair and reasonable price.
The attached SPCC must be completed and submitted as part of your proposal if certified cost or pricing data are required to be submitted; and may be requested by the RFP instructions under other circumstances. Items within the SPCC that do not contain specific FAR references are needed for Buyer review and negotiation, as applicable. Contact the LM Aero Buyer as soon as possible prior to proposal submittal if there is uncertainty as to whether a checklist item is a requirement, how to correctly respond to, or adequately comply with, any of the specific items on this SPCC. Non-compliances with the enclosed checklist will require immediate correction in order to proceed with proposal evaluation and negotiation, however, completion of the checklist does not relieve you from your responsibility to comply with regulations and any special requirements of the solicitation.
In addition, it is highly recommended that you flow this (or a similar) checklist to your sub-tier suppliers/affiliates where certified cost and pricing data is required and that you use the elements of the SPCC (or elements of a similar checklist) to evaluate the adequacy of a sub-tier supplier’s/affiliate’s proposal.
You are advised that the contracting officer/buyer may determine costs associated with revising/reworking inadequate cost proposals as unreasonable, and must consider the nature and extent of any proposal inadequacies when assessing/negotiating profit.
SPECIAL NOTE TO SUBCONTRACTOR: To indicate that you have complied with an Item, unless otherwise indicated, you must provide the specific location in the proposal where compliancy can be verified in the “PROPOSAL LOCATION” column. For example “Cost Volume; Section B; pages 19-21”. In order to preclude delays in negotiations and contract award, you must discuss the basis for all “negative” responses (i.e., no entry provided in the “PROPOSAL LOCATION” column) in the “PROVIDE EXPLANATION” column.
NOTE TO BUYER: Once returned in the Subcontractor’s proposal, the Buyer is to complete the left side of the SPCC, to determine if the responses are compliant/responsive to identify any responses that need to be revised/corrected. In completing the LM Aero section, for those items in the FAR Compliance Section, they should be assessed as either “C” for Compliant or “NC” for Non-Compliant. In the RFP Response Section the items should be assessed as either “R” for Responsive or “NR” for Non-Responsive.
Subcontractor Proposal Compliance Checklist
Subcontractor: / Program:Proposal No.: / Effort:
Date: / Subcontractor Reviewer:
Note 1: There is a clear distinction between submitting cost or pricing data and merely making available books, records, and other documentation without identification. The requirement for submission of cost or pricing data is met when all accurate cost or pricing data reasonably available to the offeror have been submitted, either actually or by specific identification to Lockheed Martin. As later information comes into your possession, it should be submitted promptly to Lockheed Martin in a manner that clearly shows how the information relates to the offeror’s price proposal. The requirement for submission of cost or pricing data continues up to the time of agreement on price, or an earlier date agreed upon between the parties if applicable.
Note 2: By submitting your proposal, you grant the contracting officer (CO) or an authorized representative (Lockheed Martin) the right to examine records that formed the basis for the pricing proposal. That examination can take place at any time before award. It may include those books, records, documents, and other types of factual information (regardless of form or whether the information is specifically referenced in the proposal as the basis for pricing) that will permit an adequate evaluation of the proposed price.
LM OnlyC / LM Only
NC / ITEM # / ITEM DESCRIPTION / REFERENCE / PROPOSAL LOCATION (must be specific) / PROVIDE EXPLANATION IF Not Provided (use continuation page if necessary) /
I. F A R C O M P L I A N C E S E C T I O N
GENERAL INSTRUCTIONS
1 / Is there a properly completed first page of the proposal in accordance with all requirements of Table 15-2, Section I, Paragraph A and/or as specified by the Buyer in the solicitation?
(A positive response indicates compliance with all 11 items specified in the FAR reference) / FAR 15.408, Table 15-2, Section I, Paragraph A. (1) – (11)
2 / Is an Index, appropriately referenced, of all certified cost or pricing data and information accompanying or identified in the proposal, provided and appropriately referenced? / FAR 15.408, Table 15-2, Section I, Paragraph B.
Note / You must annotate any future additions and/or revisions, up to the date of agreement on price, or an earlier date agreed upon by the parties, on a supplemental index. As required by the RFP, this index and all supplements must be included as an attachment to your Certificate of Current Cost or Pricing Data to be provided at the conclusion of negotiations. / FAR 15.408, Table 15-2, Section I, Paragraph B.
RFP
3 / As part of the specific information required, have you submitted, with your proposal, certified cost or pricing data as defined in FAR 2.101, and have you clearly identified on your cover sheet that certified cost or pricing data are included as part of the proposal? / FAR 15.408, Table 15-2, Section I, Paragraph C.(1)
Note / In addition, you must submit with your proposal any information reasonably required to explain your estimating process. / FAR 15.408, Table 15-2, Section I, Paragraph C.(2)
4 / Does the proposal disclose the judgmental factors applied and the mathematical or other methods used in the estimate, including those used in projecting from known data? / FAR 15.408, Table 15-2, Section I, Paragraph C.(2)(i)
5 / Does the proposal disclose the nature and amount of any contingencies included in the proposed price? / FAR 15.408, Table 15-2, Section I, Paragraph C.(2)(ii)
6 / Are there any exceptions to submission of certified cost or pricing data pursuant to FAR 15.403-1(b)? If so, is supporting documentation included in the proposal? / FAR 15.403-1(b)
Note / If the total price of the proposal meets or exceeds the threshold for certified cost or pricing data, this SPCC is required even if a portion of that total value qualifies as an exception. Address exception(s) with the Buyer prior to submittal of your proposal.
7 / Is there a summary of total cost by element of cost and are the elements of cost cross-referenced to the supporting cost or pricing data? (Breakdowns for each cost element must be consistent with your cost accounting system including breakdown by year and identified if by CY or GFY.) / FAR 15.408, Table 15-2, Section I, Paragraph D.
8 / If more than one proposal line item, Contract Line Item Number (CLIN) or sub Contract Line Item Number (Sub-CLIN) is proposed as required by the RFP, are there summary total amounts by year (specify if CY or GFY) covering all line items for each element of cost and is it cross-referenced to the supporting cost or pricing data? / FAR 15.408, Table 15-2, Section I, Paragraphs D and E
9 / Are recurring and non-recurring costs segregated at both the CLIN/Sub-CLIN and total cost levels? / FAR 15.408, Table 15-2, Section I, Paragraphs E.
10 / Does the proposal identify actual hours, and cost incurred as well as hours/cost to complete and the time phasing associated with these hours/costs? This information/data is to be provided consistent with cost element summaries. / FAR 15.408, Table 15-2, Section I., Paragraph F., and Section III
MATERIALS and SERVICES
Note / The BOM should include estimated raw materials, parts, components, assemblies, subcontracts and services to be produced or performed by others, not included elsewhere in your proposal.
11 / Is a consolidated priced summary of individual material quantities and services, referred to as a Consolidated Bill of Material (CBOM), included in your proposal and have you provided as a minimum the basis of the pricing (vendor quotes, invoice prices, etc.), item, source, quantity, and price? / FAR 15.408, Table 15-2, Section II, Paragraph A.
Note / Consolidated Bill of Material (CBOM). A CBOM is a consolidated priced summary of individual material quantities and subcontract items included in the various tasks, orders, or contract line items being proposed and the basis for pricing (negotiated/invoice prices, vendor quotes, average unit pricing, prior purchase history, long term agreements, etc.) The offeror’s CBOM shall include estimated raw materials, parts, components, assemblies, subcontracts and services to be produced or performed by others.
Note / Depending on your system, inter-organizational transfers may be included as part of a total CBOM or be a separate CBOM.
Note / The CBOMs must be in an electronic format that is able to be sorted.
Note / Additional CBOMs may be required or desired for separate CLIN end item deliverables (e.g., Alternate Mission Equipment, Special Test Equipment, Spares, etc.).
SUBCONTRACTS (Purchased materials or services)
12 / If the subcontract or purchase order exceeds the threshold for certified cost or pricing data and none of the exceptions to TINA apply, does the proposal include the subcontractor’s Price/Cost Analysis establishing the reasonableness of each subcontract price? / FAR 15.403-4, FAR 15.408, Table 15-2, Section II., Paragraph A.
13 / If your subcontractor Price/Cost Analyses are not provided with the proposal, does your proposal include a matrix identifying dates for receipt of your subcontractor’s proposal, completion of fact finding for purposes of Price/Cost Analysis, and submission of the Price/Cost Analyses? / FAR 15.403-4, FAR 15.408, Table 15-2, Section II., Paragraph A.
Note / As later information/data comes into your possession, it should be submitted promptly to the Buyer in a manner that clearly shows how the information/data relates to the offeror’s price proposal. The requirement for submission of certified cost or pricing data continues up to the time of agreement on price, or an earlier date agreed upon between the parties if applicable.
Note / Analyses not provided with the proposal may result in a delay to audit, fact-finding and negotiations. Analyses not included with the proposal shall be provided as soon as possible after the proposal submission date and shall be accomplished in sufficient time to support the definitization/contract award schedule.
14 / Does the proposal identify those actions where assist audits have been requested, or may need to be requested by the subcontractor or sub-tier subcontractor(s) and identify the request date and scheduled receipt date? / DFARS 215.404-3
Note / The need for assist audits resulting from proprietary data rights assertions at any tier must be identified to the Buyer as soon as possible in the proposal build cycle. Notwithstanding assist audits performed by the government, subcontractors must still perform and provide Price/Cost Analysis.
15 / In accordance with the thresholds of FAR 15.404-3(b)3 and (c), Subcontract Pricing Considerations, does the proposal include the applicable sub-tier subcontractor’s certified cost or pricing data? / FAR 15.404-3(b)3 and (c)
INTERORGANIZATIONAL TRANSFERS
16 / For inter-organizational transfers proposed at cost, does the proposal include a separate breakdown of cost elements? / FAR 15.408, Table 15-2, Section II, Paragraph A(2)
Note / Inter-organizational work is considered to be part of the certified cost or pricing data submission of the subcontractor. The performing company’s certified cost or pricing data must be included in the Performing Company’s submittal. As such, the subcontractor’s responsibility for conducting Cost/Price Analysis does not apply to its inter-organizational transfers. However, prior to the submission, the Performing Company shall (a) ensure that all statement of work tasks are addressed without duplication and are consistent with the overall program performance schedule and, (b) ensure ground rules and assumptions are consistent with the Performing Company’s submittal.
17 / For inter-organizational transfers proposed at price in accordance with FAR 31.205-26(e), does the proposal provide an analysis by the subcontractor that supports the exception from certified cost or pricing data in accordance with FAR 15.403-1(b) / FAR 31.205-26(e)(2); FAR 15.403-1(b)
ADEQUATE PRICE COMPETITION
18 / Does the proposal support the degree of competition and the basis for establishing the source and reasonableness of price for each subcontract or purchase order priced on a competitive basis exceeding the threshold for certified cost or pricing data? / FAR 15.408, Table 15-2, Section II, Paragraph A(1)
COMMERCIAL ITEM DETERMINATIONS
19 / Are you proposing commercial items either at your level or other sub-tier subcontractor level for which you are claiming an exemption from certified cost or pricing data requirements in accordance with provision 52.215-20? / FAR 2.101,
FAR 15.403-1 (b)(3) or (b)(5),
FAR 52.215-20
Note / If you are modifying a commercial item or are providing a modified commercial item, there may be circumstances that require the submission of certified cost or pricing data (see Note to checklist item 22 below).
20 / Has the sub-tier supplier provided support for subcontractor assertions of commerciality and any sub-tier subcontractor Commercial Item Determinations (CIDs)
Note / A sub-tier supplier CID includes the following information/data in addition to the subcontractor’s independent price analysis and conclusion of the sub-tier supplier’s commerciality assertion. (see checklist item 24.D.)
21 / Has the sub-tier supplier specifically identified the type of commercial item claim (FAR 2.101 commercial item sub-definitions (1) through (8)), and the basis on which the item meets the definition? / FAR 2.101
22 / For modified commercial items (commercial item sub definition) (3); did the sub-tier subcontractor classify the modification(s) as either:
A. Of a type customarily available in the commercial marketplace
(FAR 2.101 commercial item sub-definition (3)(i)) or