Proposal Adequacy Checklists are not new, but their requirement in some acquisitions is – especially within DoD and NASA. Some professionals may be familiar with items such as FAR 15.408 Table 15-2, but may not realize how the checklist can be used to improve the quality of your proposals, improve your reputation as a responsible and knowledgeable bidder, increase your win rate, and give you the answers to the final exam. Learn practical tips you can use on your next proposal! Proposal Adequacy Checklists are not new, but their requirement in some acquisitions is – especially within DoD and NASA. Some professionals may be familiar with items such as FAR 15.408 Table 15-2, but may not realize how the checklist can be used to improve the quality of your proposals, improve your reputation as a responsible and knowledgeable bidder, increase your win rate, and give you the answers to the final exam. The Checklists are now required when the offeror is expected to submit certified cost or pricing data. However, the Checklists are a useful tool in ensuring that you have developed an adequate proposal that addresses the customer’s needs and presents that data and information in a logical format that can be easily reviewed or audited. For complex acquisitions (such as for technical items, systems, platforms, and vehicles), the Checklist addresses GFE (Government Furnished Equipment), CAS (Cost Accounting Standards), and CBOM (Costed Bill of Material). It also reminds the offeror to provide data by CLIN/Sub-CLIN with sub-totals and totals. Finally, the Checklist addresses cost pools, rates, and exemptions. The first part of the presentation will provide an overview of the Checklist, recent regulatory changes (including DoD and NASA), tips and tricks, and common mistakes in individual proposals. The second portion of the presentation will show how the Checklist can be used at a higher level for developing internal policies and procedures. These internal policies and procedures lead to training for the proposal and business development team so they can gather the proper information in the format required by the customer. At an even higher level, the Checklist can be used as a guide in developing accounting and time collection systems, pricing tools, proposal systems, and proposal templates. The ultimate goal is to increase your win rate by providing a solution (your technical solution) to the customer in a format that allows them to make the best informed decision they can make.

2. Proposal Adequacy
Checklist—The New Normal
Breakout Session # B01
Robert E Jones Advisor LeftRobert E. Jones, Advisor, Left
Brain Professionals Inc.
Suzanne Camden, Accounting, g
Manager, Colonna's Shipyard
Monday, July 28
2:30 PM 3:45 PM2:30 PM – 3:45 PM

3. What Is the
Proposal Adequacy Checklist?
• A consolidation of existing regulatory
requirements to communicate adequate
proposal expectations to contractors.
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4. Why Do We Have It?Why Do We Have It?
• Systematic failure to submit may lead to
estimating system deficiency report
• The expected benefit is a reduced numberp
of inadequate proposals, thereby making
the acquisition process more efficient.q p
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5. Who Administers the PAC?Who Administers the PAC?
• Issued with RFP by COy
– DoD/DFARS (36 items)
– DCAA (points to DFARS)(p )
– DCMA (38 items)
– NASA (34 items)NASA (34 items)
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6. When Is It Required?When Is It Required?
• When certified cost or pricing data is
required
– The PAC addresses exemptions, so you may
be required to submit the PAC even if you are
exempt from submitting certified cost or pricing
d tdata
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7. Will Other Agencies Adopt the PAC?Will Other Agencies Adopt the PAC?
• DoD March 18, 2013
• NASA February 26, 2014
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8. Takeaway #1Takeaway #1
• You have the exam in your hands!
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9. What Does the PAC Look Like?What Does the PAC Look Like?
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10. General InformationGeneral Information
• Completed first page
• Need for GFE
• Non-compliance with CASNon compliance with CAS
• Activities that could materially impact costs
I d• Index
• Exceptions to submitting certified cost or
pricing data
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11. General InformationGeneral Information
• Judgment factors
• Contingencies
• BoE relationshipsBoE relationships
• Subtotals that "cross and foot" and are
indexedindexed
• FPRA
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12. Cost ElementsCost Elements
• Materials and Services
• Subcontracts
– Purchased Materials and Services
• CBOMCBOM
• Subcontractor proposals
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13. Exceptions to
Certified Cost or Pricing Data
• Specifically identifed type of commercial
item?
• Classify modifications?y
• "Of a type" or "evolved" comparison
provided?provided?
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14. Inter-organizational TransfersInter organizational Transfers
• Support for data submitted either at cost or
price
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15. Direct LaborDirect Labor
• Time phased
• Breakdown and summary by labor
categoryg y
• BoE with labor categories, hours, and task
descriptionsdescriptions
15

16. Indirect CostsIndirect Costs
• Support for indirect rates
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17. Other CostsOther Costs
• ODCs and basis of pricing
• Royalties
• Facilities capital cost of moneyFacilities capital cost of money
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18. Formats for Submission
Of Line Item Summaries
• Are cost elements provided IAW FAR
15.408, Table 15-2 III
• Are change order/mods IAW 15.408, Tableg ,
15-2.III.B
• Are price revisions/redeterminations IAWAre price revisions/redeterminations IAW
FAR 15.408, Table 15- 2.III.C
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19. FAR 15 408 Table 15-2FAR 15.408 Table 15 2
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20. OtherOther
• Incentive - proposed target cost, target
profit or fee, share ratio, etc.
• EPA – rationale for adjustmentj
• PBA IAW FAR 52.232-28
• Excessive pass throughs identified• Excessive pass-throughs identified
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21. Differences Among PAC VersionsDifferences Among PAC Versions
• Variations in grouping and details, but
content is essentially the same
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22. How Many "No's" Are AllowedHow Many No s Are Allowed
• No set criteria, though several "No's" could
indicate an inadequate proposal
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23. Takeaway #2Takeaway #2
• Build internal policies and procedures
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24. Frequently Asked QuestionsFrequently Asked Questions
• What if I don't submit a checklist?
If systematic, auditor could submit an
estimating system deficiency report
• Do I have to flow down to subcontractor?
It depends, read the RFP to the sub
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25. Takeaway #3Takeaway #3
• Save time and simplify negotiations
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26. ResourcesResources
• DFARS Case 2011-D042
• http://goo.gl/6MYcmd
• DCAA Memo on Proposal Adequacyp q y
Checklist
• http://www dcaa mil/mmr/13-PSP-020 pdfhttp://www.dcaa.mil/mmr/13 PSP 020.pdf
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27. ResourcesResources
• DCAA Contract Pricing Proposal Adequacy
Checklist
• http://www.acq.osd.mil/dpap/dars/dfars/html/cu
rrent/252215.htm#252.215-7009
• DCMA Proposal Adequacy Checklistp q y
• http://guidebook.dcma.mil/120/DCMA_Propos
al_Adequacy_Checklist.pdf
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28. ResourcesResources
• NASA Proposal Adequacy Checklist
• http://www.hq.nasa.gov/office/procurement/reg
s/5215-16.htm#52_215-77
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29. 3 Takeaways3 Takeaways
• You have the final exam in your hands!
• Build internal policies and procedures
• Save time and simplify negotiationsSave time and simplify negotiations
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30. QuestionsQuestions
Robert E. Jones
robert@leftbrainpro.com
(513) 728-1163
Suzanne Camden
suzannecamden@hotmail comsuzannecamden@hotmail.com
(757) 572-1716
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