C. Developing the requesting agency's in-house motor vehicle fleet management costs
D. Developing comparable motor vehicle fleet costs
--Contract Administration Costs
--One-time Conversion Costs
--Gain/Loss on Disposal/Transfer of Assets
--Federal Income Taxes
--Other Adjustment Costs
a. One-time conversion costs may result when a contractor, IFMS or ISSA offeror takes over the operation of the fleet. This can involve the costs of the transfer of Government-owned supplies or temporary labor costs incurred to facilitate the transition to a new fleet manager.
b. When items of material become available for transfer to the contractor, IFMS or ISSA, material related conversion costs may result. If materials consumed as a part of the requesting agency's MEO are clearly identified in the PWS to be transferred to the contractor, IFMS or ISSA, the value of those materials and supplies are common costs and not considered a part of the comparison.
c. If, however, those same materials are not to be provided to the contractor, IFMS or ISSA offeror, but are instead to be transferred to another agency location or excessed, the value of that material should be subtracted from the contract, IFMS or ISSA offers as a net savings to the Government resulting from the conversion.
a. If an agency requires the contractor, IFMS or ISSA to replace existing Government (agency) owned vehicles (assets) by a specific date, the projected fair market value of those existing assets, as established by generally available industry guides, are subtracted from the contractor's, IFMS or ISSA's cost estimates. These values represent a net "savings" caused by conversion.
b. Agencies may provide that vehicle replacement by the contractor, IFMS or ISSA offeror will be in accordance with the Government's existing or MEO replacement schedule. In this case, all parties to the competition should assume replacement at the same rate. Values from existing fleet to the Government apply to all alternatives equally.
c. Agencies may also continue to provide vehicles for contractor, IFMS or ISSA fleet management. No adjustments are necessary.
d. Finally, agencies may require replacement by the contractor, IFMS or ISSA offeror and may allow the IFMS or ISSA offeror to simply assume ownership of the existing fleet as Federal agencies. In this case, the agency, IFMS or ISSA offeror receives a gain--and a considerable competitive advantage over the contract bid--estimated at the fair market value of the existing fleet. An amount equal to the fair market value of the existing fleet is added to the agency, IFMS or ISSA offeror bid at Line 19 for cost comparison purposes.
a. Agencies should recognize the current contract support identified in Line 6, above. Calculate the total Federal Income Tax, based upon the contractor's offer (Line 9) and Appendix 5, Tax Rate Table. Subtract from the contractor's estimated tax liability the Federal taxes paid within the in- house cost estimate (estimated from the appropriate share of Line 6 and as described in the Management Plan) and enter the remainder.
b. The same treatment may be afforded to the GSA/IFMS or ISSA offer, if the offeror certifies the value of its contract support contained within its overall cost estimate. This estimate must be available to the requesting agency's Independent Review Officer for review and concurrence.
7. Conversion differential (Line 7, Line 14 and Line 21).
a. It is not the intent of this Supplement to require the IFMS or other potential ISSA offerors to alter their methods of operation to provide unique or site specific services. While such services may meet agency missions and may legitimately be included in the solicitation, additional adjustments to the IFMS/ISSA cost estimate may be necessary to reflect differences in the bids. Examples of such services include: dispatching, vehicle transition, maintenance work warranties, certain disposal services/costs, accessory installations and removals, tire replacements, etc.
b. Agencies should identify the differences between the requirements of the solicitation (contractor bid) and the IFMS/ISSA cost estimate. The agency determines if any item or combination of items will impact the agency's ability to perform. If the agency's ability to perform would be adversely impacted, the IFMS/ISSA cost estimates may be rejected as non-responsive. If the differences will have minimal agency performance implications, and/or can continue to be performed by agency personnel, the IFMS/ISSA cost estimates will be adjusted for purposes of comparison with the contractor and MEO offers, based upon the comparable costs contained in the agency's MEO.
c. A complete record of all adjustments to the contractor's, IFMS and ISSA's cost estimates should be maintained and made available to the public upon request.
E. Motor vehicle cost comparison
THE A-76/MV COST COMPARISON FORM FOR MOTOR VEHICLE FLEETS Performance Periods (Fiscal Years) Base Option Option Option Option A. DEVELOPMENT OF IN-HOUSE COSTS Year Yr 1 Yr 2 Yr 3 Yr 4 Total ----- ----- ----- ----- ----- ------- 1. Personnel 2. Material 3. Other Direct 4. Cost of Capital 5. Overhead 6. Additional 7. Conversion Differential ----- ----- ----- ----- ----- ------- 8. Total In-house B. DEVELOPMENT OF CONTRACT COSTS 9. Contract Price 10. Contract Administration 11. One-time Conversion 12. Gain on Disposal 13. Federal Income Taxes ( ) ( ) ( ) ( ) ( ) ( ) 14. Conversion Differential ----- ----- ----- ----- ----- ------- 15. Total Adjusted Contract Price C. DEVELOPMENT OF IFMS OR ISSA COSTS 16. IFMS/ISSA cost estimate 17. Contract Administration 18. One-time Conversion 19. Gain on Disposal 20. Federal Income Taxes ( ) ( ) ( ) ( ) ( ) ( ) 21. Conversion Differential 22. Other Scope Adjustments ----- ----- ----- ----- ----- ------ 23. Total Adjusted IFMS or ISSA Price D. COST COMPARISON 24. In-House -------- 25. Contract -------- 26. IFMS and/or ISSA -------- E. DECISION _____ Retain In-House _____ Contract _____ Consolidate to GSA/IFMS or ISSA _____ Convert from Contract to: In-house, IFMS or ISSA THE A-76/MV COST COMPARISON FORM FOR MOTOR VEHICLE FLEETS 27. In-House MEO Certified By:__________________________ Date: _______ __________________________ Office and Title "I certify that, to the best of my knowledge and belief, the in-house organization reflected in this cost comparison is the most efficient and cost effective organization that is fully capable of performing the scope of work and tasks required by the Performance Work Statement. I further certify that I have obtained from the appropriate authority concurrence that the organizational structure, as proposed, can and will be fully implemented - subject to this cost comparison, in accordance with all applicable Federal regulations. 28. In-House Cost Estimate Prepared By:_________________ Date: ________ 29. Independent Reviewer: _________________________ Date: ________ _________________________ Office and Title "I certify that I have reviewed the PWS, Management Plan, In- house, GSA/IFMS or ISSA cost estimates and supporting documentation available prior to bid opening and, to the best of my knowledge and ability, have determined that: (1) the ability of the in-house MEO to perform the work contained in the Performance Work Statement at the estimated costs included in this cost comparison is reasonably established and, (2) that all costs entered on the cost comparison have been prepared in accordance with the requirements of Circular A-76 and its Supplement. 30. Cost Comparison Completed By: _________________ Date: ________ 31. Contracting Officer: _________________ Date: ________ 32. Tentative Cost Comparison Decision Announced By: _________________ Date: ________ 33. Appeal Authority (if applicable): _________________ Date: ________
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