6/25/2014. Navy Small Business Innovation Research (SBIR) Program. Navy Needs Are Diverse
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1 Navy Small Business Innovation Research (SBIR) Program 1 Navy Needs Are Diverse 2 1
2 SBIR Program Phases I, II III Feasibility Study Phase I contracts award with SBIR funding up to $80k with a $70k option. Deliverable Reports Engineering Development Phase II contracts award with SBIR funding up to $1,000,000 with a $250k option. Deliverable Prototype Demonstration/Implementation Phase III contracts award with Program or outside investor funding without ceiling limits. 3 Differences Phase I s 1. Firm-Fixed Price 2. Cost accounting system not required 3. Very little negotiating on price 4. Deliverables are reports 5. Payment after delivery of reports Phase II s 1. Cost-Plus-Fixed Fee 2. Approved cost accounting system before award 3. All Costs and Fee will be validated and negotiated 4. Deliverables are reports and a prototype 5. Payment after receipt of actual invoices 4 2
3 1. Contract Type Firm Fixed Price Contracts (Phase I s) The contractor submits their deliverable (usually a report) outlined in their contract and the Government will pay the contractor the amount outlined in the contract for each report (no more, no less). Cost Plus Fixed Fee Contracts (Phase II s) The contractor will do the work outlined in their contract and submit monthly invoices, the Government will pay all costs (over or under the amount the negotiated amount) and all of the fee agreed upon Accounting System All cost contracts over $700,000 (FAR Threshold for Certified Cost or Pricing Data) must obtain and maintain a Defense Contract Audit Agency (DCAA) approved cost accounting system prior to the award of the Phase II contract. You do not have to have one before you can submit the Phase II proposal and you are not able to request that a representative from DCAA perform an audit on your accounting system, only the Contracting Officer has that right. After receipt of the requested proposal the Contracting Officer will request an audit if necessary. If the contractor has had an audit in the past and the audit states that DCAA has approved your system we will only require that you confirm that you have maintained that system. No new audit is required. The contractor should submit their provisional billing rates to DCAA at the end of each year and be able to submit proof that they have done so. 6 3
4 3. Cost Validation Phase I Cost Proposals Very little if any of the costs on a Phase I cost proposal are validated since, due to the price limitations, most proposals are priced very close to the maximum allowed ceiling. The price varies very little so the best value source selection decision is essentially one of technical merit. Phase II Cost Proposals All costs are validated If you have an audit from the current year the Government will get some of the information from DCAA but we look to the contractor to provide some information Direct Labor if DCAA does not have current rates the contractor will be asked to provide payroll records Travel give as much detail as possible (where, when and why) and the Navy s contract negotiator will confirm if the proposed cost is fair Material Give current quotes 7 3. Cost Validation Continued Subcontractor be prepared to provide a cost proposal from the subcontractor for their work with the same level of detail that we require of the prime contractor; if the subcontractor will not disclose their rates to you we will contact them so they can provide them directly to the Government with the understanding that we will not disclose them Fee The usual range is between six and nine percent, it will be negotiated before award 8 4
5 4. Deliverables Phase I Contracts Only reports are due as stated in your contract Phase II Contracts Reports are due as stated in your contract along with a working prototype during the base period of the contract Invoice Payment Phase I Contracts Clause WIDE AREA WORKFLOW PAYMENT INSTRUCTIONS is located in Section G of your contract be sure to following all of the directions A representative of the Government must approve your invoice in the Wide Area Workflow (WAWF) system before you can get paid by Defense Finance and Accounting Service (DFAS) Phase II Contracts Clause WIDE AREA WORKFLOW PAYMENT INSTRUCTIONS is located in Section G of your contract be sure to following all of the directions DFAS will automatically pay the invoice if the Government does not object; except for the final payment which DFAS will contact the Government to ensure all deliverables have been received 10 5
6 What Can Help If you do not have a DCAA approved accounting system be prepared to be audited by DCAA If you have an approved system ensure that your yearly provisional billing rates have been submitted to DCAA Use the format for the cost proposal that is provided on the proposal submittal website After submitting your proposal be prepared to submit all of your cost verification upon request from the government negotiator 11 Things to Remember After award of a contract only the Contracting Officer is authorized to change your contract and that will be done only with a signed modification to the contract If you are having trouble with any part of your process (having problems getting paid, can not reach the Technical Point of Contact, etc.) contact the contracts office and they should be able to help or be able to point you in the right direction. Never do any work that is not listed in the contract, if something changes from when the contract was award you should always get a signed modification from the Contracting Office. 12 6
7 Questions? Should you have any questions that have not be answered about cost proposals, the procurement process or contract negotiations I will be happy to help. My contact information is as follows: Tammy Ryman Tammy.ryman@navy.mil
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