FLEET NUMERICAL METEOROLOGY AND OCEANOGRAPHY CENTER INFORMATION TECHNOLOGY SERVICES FINAL by rakewon

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									FLEET NUMERICAL METEOROLOGY AND
      OCEANOGRAPHY CENTER

    INFORMATION TECHNOLOGY
           SERVICES

                      FINAL

   Baseline Costs Estimate (BCE) Report




         Prepared by E.L. Hamm & Associates Inc.
                   4801 Columbus Street
             Virginia Beach, VA 23462-6751
                       757-497-5000
                   elhamm@verizon.net


                     24 March 2006
                         This Preliminary Planning Baseline Costs Report was prepared by:


                                            FNMOC’s Preliminary Planning Team




                                                       Points of Contact
                                        CSACOE COR/PM: David Jespersen (619) 532-1272
                                        CSACOE CO: Samantha S. Durella (619) 532-3758
                   FNMOC Navy Technical Representative (PP Team Leader): James Copeland (831)-656-
                                               4496




                                                  This effort was assisted by:


                                                 E.L. Hamm & Associates, Inc.
                                                 4801 Columbus Street, Suite 400
                                                 Virginia Beach, Virginia 23462
                                             (757) 497-5000, FAX (757) 497-5707




FOR OFFICIAL USE ONLY                   - FOUO
Do not release without prior approval
FLEET NUMERICAL METEROLOGYAND                  INFORMATION TECHNOLOGY SERVICES
OCEANOGRAPHY CENTER MONTEREY, CA
                              BASELINE COSTS REPORT

                                          TABLE OF CONTENTS

INTRODUCTION......................................................................................................................... 1
  COMPARE PROGRAM DISCUSSION ................................................................................ 1
  INFLATION FACTORS .......................................................................................................... 2
SECTION 1: COST OF AGENCY PERFORMANCE ............................................................ 2
  LINE 1 – PERSONNEL COSTS ............................................................................................. 2
  LINE 2 – MATERIAL AND SUPPLY COSTS...................................................................... 4
  LINE 3 – OTHER SPECIFICALLY ATTRIBUTABLE COSTS........................................ 4
  LINE 4 – OVERHEAD COSTS............................................................................................... 6
  LINE 5 – ADDITIONAL COSTS............................................................................................ 6
  LINE 6 – TOTAL COST OF AGENCY PERFORMANCE................................................. 6
                                                 ATTACHMENTS

          ATTACHMENT 1                             COMPARE Preliminary Planning Baseline Costs
                                                   Report
          ATTACHMENT 2                             IT Personnel & Cost Report
          ATTACHMENT 3                             Pay Tables
          ATTACHMENT 4                             COMPARE Line 1 Personnel Costs Worksheets
          ATTACHMENT 5                             C1.F1 Other Pay and Entitlements Worksheets
          ATTACHMENT 6                             Personnel Staffing Summary
          ATTACHMENT 7                             COMPARE Line 2 Materials and Supplies Costs
                                                   Worksheets
          ATTACHMENT 8                             COMPARE Line 3 Other Specifically
                                                   Attributable Costs Worksheets
          ATTACHMENT 9                             Other Specifically Attributable Costs
          ATTACHMENT 10                            COMPARE Line 4 Overhead
          ATTACHMENT 11                            COMPARE Line 6 Total Cost of Agency
                                                   Performance


                                                    APPENDICES

          APPENDIX A                               COMPARE Cost Records
          APPENDIX B                               COMPARE Study Tables




E.L. HAMM & ASSOCIATES, INC.                                                                                                  Page ii
FLEET NUMERICAL METEROLOGYAND                    INFORMATION TECHNOLOGY SERVICES
OCEANOGRAPHY CENTER MONTEREY, CA

                                BASELINE COSTS REPORT
         PRELIMINARY PLANNING BASELINE COSTS
                         for
          INFORMATION TECHNOLOGY SERVICES
INTRODUCTION
   This document contains the Preliminary Planning Baseline Costs and supporting
   documentation for the performance of Information Technology (IT) services at the
   Fleet Numerical Meteorology and Oceanography Center (FNMOC), Monterey,
   California. The cost elements were developed in accordance with procedures contained
   in the Department of Defense Baseline Costing for Public and Private Competition
   (August 1, 2005), the Office of Management and Budget (OMB) Circular No. A-76
   (Revised), Performance of Commercial Activities dated May 29, 2003 (hereafter
   referred to as the Circular) and Navy Commercial Activities (CA) Program OPNAV
   Instruction 4860.7c. Preliminary planning baseline costs are historical in nature. Cost
   data was collected for fiscal year (FY) 2005 which ended on 30 September 2005.
   Some data, labor in particular, was analyzed using the OMB Circular No. A-76
   Commercial Activities Cost Comparison System (COMPARE). Information about the
   software is available at www.compareA76.com/.
   Attachment 1 is the COMPARE Preliminary Planning Baseline Costs Report (BCR).
   The BCR displays costs by category for in-house performance of IT services. Costs
   provided by the activity are in Attachment 2. All in-house costs are included, including
   those that may later be classified as common costs and excluded from an Agency Cost
   Estimate.
   COMPARE divides costs into three broad categories:
     •   1 – Cost of Agency Performance - Lines 1 through 6.
     •   2 – Cost of Private Sector Performance - Lines 7 through 13.
     •   3 – Decision Calculations - Lines 14 through 18.
   Preliminary planning costs deal exclusively with the cost of agency performance.
   Therefore only costs found on COMPARE Lines 1 through 6 are addressed.
COMPARE PROGRAM DISCUSSION
   Version 2.1a of the COMPARE program was used to analyze costs. Tables used in this
   study incorporate all changes through A-76 Transmittal Memorandum 25 and include
   COMPARE updates through March 21, 2006.
   All personnel in this study are located at FNMOC Monterey, CA. The pay table used
   for General Schedule (GS) employees is SAN FRANCISCO-OAKLAND-SAN JOSE,
   CA (including Monterey County, CA) effective January 11, 2004. The pay table used
   for Federal Wage System (FWS) employees is San Francisco, California (SF) Wage
   Area) AC-0018R, effective November 28, 2004. The pay table used for military
   personnel is the Military Composite Standard Pay and Reimbursement Rates for the
   U.S. Navy FY 2005 effective October 1, 2004. This is the most accurate military pay
   table for the study but because COMPARE will not permit tables beginning on or after
E.L. HAMM & ASSOCIATES, INC.                                                          Page 1
FLEET NUMERICAL METEROLOGYAND            INFORMATION TECHNOLOGY SERVICES
OCEANOGRAPHY CENTER MONTEREY, CA
                           BASELINE COSTS REPORT

   the start of the first performance period the effective date entered in COMPARE is
   September 30, 2004. Copies of the pay tables used in this study are in Attachment 3.
   Historic pay tables are used because the effective date(s) of the tables must be before
   the start of the first period in COMPARE.
INFLATION FACTORS
   Source data was obtained from historical records. Costs dependent upon fiscal year
   (FY) pricing are entered in FY 2005 dollars. According to DoD Baseline Costing
   Guide, preliminary planning costs are not inflated. However, the effective pay tables
   used in this study are all prior to the start of the first performance period for the reason
   stated above. The effective date for GS pay tables is January 11, 2004. The start of the
   performance period is October 1, 2004. The COMPARE costs are adjusted, based on
   the internal complex calculations. The calculations take in to account the number of
   days between the effective pay table and the performance period dates. These costs are
   not inflated, but merely adjusted and is apart of COMPARE.
SECTION 1: COST OF AGENCY PERFORMANCE
   This section describes the cost elements included in the determination of the preliminary
   planning baseline costs. The BCR identifies the categories of Government costs that may
   be incurred on COMPARE Lines 1 through 6.
       • Line 1 – Personnel Costs
       • Line 2 – Material & Supply Costs
       • Line 3 – Other Specifically Attributable Costs
       • Line 4 – Overhead Costs
       • Line 5 – Additional Costs
       • Line 6 – Total Cost of Agency Performance
   These line items are discussed below.
LINE 1 – PERSONNEL COSTS
   For personnel costs, the COMPARE program requires each pay entitlement to be
   specified by position. Attachment 4 identifies each position associated with IT
   Services by position title, grade, and number of full-time equivalent personnel (FTE).
   GS positions are costed at Step 5, FWS positions at Step 4, and military labor of
   opportunity at the military composite standard pay and reimbursement rate billable to
   other federal agencies. All position pay rates, full FTE pay and applicable benefits are
   identified commensurate with the current pay rates of equivalent personnel.
   Labor costs include, but are not limited to, direct labor; labor for supervision and
   management related support such as labor for quality control, labor for administration
   and inspection, labor for contract administration and surveillance for subcontracts, and
   indirect labor. Agency direct labor costs are based on the Government personnel costs
   for labor dedicated to IT services.



E.L. HAMM & ASSOCIATES, INC.                                                            Page 2
FLEET NUMERICAL METEROLOGYAND            INFORMATION TECHNOLOGY SERVICES
OCEANOGRAPHY CENTER MONTEREY, CA
                           BASELINE COSTS REPORT

   Personnel costs are entered on BCR Line 1. Personnel cost data is manually entered
   into COMPARE, after which COMPARE automatically computes Line 1 totals based
   upon user inputs.
   The entries in Attachment 4, COMPARE Line 1 Personnel Costs Worksheet, include
   the following column descriptions:
   •   Position Title or Skill (Column A): Each current and authorized position is listed in
       this column.
   •   Grade (Column B): The current position grades.
   •   Number FTEs Required (Column C): The staffing levels costed reflect the "as is"
       organization as determined during scoping and grouping.
   •   Annual Salary/Wages (Column D): The annual wage is determined by multiplying
       the annual salary for each position by the number of FTEs assigned to that position.
       The wage rates used for all positions were taken from the previously cited pay tables
   •   Other Entitlements (Column E): Other entitlements include pay entitlements that
       earn fringe benefits for FWS employees. Examples include shift differential and
       environmental pay. There are no other entitlements in this study.
   •   Basic Pay (Column F): The basic pay for each position is the sum of the Annual
       Wages and the Other Entitlements.
   •   Fringe Benefits or Federal Insurance Contribution Act (FICA) (Column G): Fringe
       benefits for permanent employees were determined in accordance with Office of
       Management and Budget A-76 Transmittal Memorandums and the Circular
       Attachment C, Paragraph B.2.f:

            Appropriated Fund Full-Time and Part-Time Permanent Civilian Positions
                                     Retirement     24.00%
                                     Insurance       5.70%
                                     Other           1.70%
                                     Medicare        1.45%
                                     Total          32.85% of employee’s basic pay

   •   Other Added Pay (Column H): Other added pay includes those entitlements that do
       not earn fringe benefits, such as overtime, holiday, and Sunday pay for all employees
       and differential and hazard pay for GS employees, but that are burdened with 1.45%
       Medicare benefits and 6.2% for Old Age and Survivors Death Insurance benefits.
       Actual overtime hours worked has been included in the cost of labor. Other added
       pay is shown in Attachment 5.
   •   Other Pay and Medicare (Column I): 1.45% Medicare and 6.2% Old Age and
       Survivors Death Insurance on the other added pay amount in column H.
   •   Overseas Allowance (J): This column is used for both Overseas Allowance and the
       Cost of Living Allowance (COLA) paid to GS employees located outside the
E.L. HAMM & ASSOCIATES, INC.                                                         Page 3
FLEET NUMERICAL METEROLOGYAND            INFORMATION TECHNOLOGY SERVICES
OCEANOGRAPHY CENTER MONTEREY, CA
                           BASELINE COSTS REPORT

       continental U.S. There are no fringe benefits associated with either of these
       amounts, and, because all personnel in this study are located within the continental
       U.S., this section does not apply to this study.
   •   Personnel Cost (Column K): The total personnel cost for each position includes
       basic pay, fringe benefits, other added pay, Medicare, and overseas
       allowance/COLA (the sum of columns F through J).
   The staffing summary relating the IT positions, grades, and annual FTEs used to enter
   the data into COMPARE are shown in Attachment 6.
LINE 2 – MATERIAL AND SUPPLY COSTS
   Material and supply costs are based on actual purchases for FY 2005. Items to be
   included in material and supply costs are those used by the activity to perform the
   functions under study and that are immediately consumed upon use. Minor property
   purchases are not included on this line because they are not immediately consumed
   when used. Line 2 Materials and supplies worksheets are shown in Attachment 7.
LINE 3 – OTHER SPECIFICALLY ATTRIBUTABLE COSTS
   Other specifically attributable costs are costs that are directly related to the functions
   under study. Such costs include depreciation, facilities, cost of capital, rent, utilities,
   insurance, travel, subcontracts, maintenance and repair, minor items and other costs.
   Other costs worksheets are shown in Attachment 8.
       •   Depreciation: Depreciation is the method used to spread the cost of tangible
           capital assets, less residual value, over the useful life of the assets. Only capital
           assets costing $25,000 or more are depreciated. COMPARE automatically
           computes the costs required for this entry based upon the cost data entered for
           this line. Depreciation is shown in Attachment 8-A.
       •   Facilities: Facility costs are determined by establishing the useful life
           expectancies by the type of facility. There are no facility costs in this study.
           Maintenance and repair of the building is listed elsewhere. .
       •   Cost of Capital: The annual cost of capital is calculated for all capital
           equipment based on the cost, purchase date, and estimated useful life. In cases
           where the item has exceeded its useful life and is still service, COMPARE
           extends the useful through the end of the performance period and adjusts the
           depreciation and cost of capital accordingly There are no costs of capital in this
           study.
       •   Rent: Rent is defined as the cost incurred for the use, operation and maintenance
           of land, building space, plant and machinery, etc., by the activity under study.
           Rental costs are shown in Attachment 8 -C. The rental space square footage
           calculations are shown in Attachment 9.
       •   Utilities: Utilities include, but are not limited to, charges for electricity,
           telephone, water, and sewage services, that are required to perform the
           functions under study. Utility costs are shown in Attachment 8-E.
E.L. HAMM & ASSOCIATES, INC.                                                                Page 4
FLEET NUMERICAL METEROLOGYAND            INFORMATION TECHNOLOGY SERVICES
OCEANOGRAPHY CENTER MONTEREY, CA
                           BASELINE COSTS REPORT


       •   Insurance: There are three types of insurance: Casualty insurance, GFP
           Casualty Insurance and Liability insurance. The insurance rates are specified in
           the Circular, Attachment C, Paragraph B.4.f. COMPARE computes insurance
           costs, which are shown in Attachment 8-G.
               1) Casualty insurance is generally computed by applying 0.5% to the net book
           value of Government equipment and/or facilities, plus the average value of
           materials and supplies.
               2) The GFP casualty insurance FAR clauses contained in a solicitation
           determines whether casualty insurance costs for GFP should be included on Line
           3. Based upon the FAR provisions included in a solicitation, Agencies may be
           required to determine and manually input the cost data into COMPARE. Because
           this is a preliminary planning study, all costs are considered; therefore, GFP
           casualty insurance costs are included.
               3) Liability insurance is computed by applying 0.7% to the personnel costs,
           including fringe, on Line 1. COMPARE automatically calculates this entry.
       •   Travel: This is the cost of travel expended by the Agency to perform the
           functions under study. Travel costs are included in Attachment 8-D.
       •   Subcontracts: This is the cost of subcontracts used by the Agency to perform the
           functions under study. Contract ManPower Equivalents (CMEs) must be
           determined for each subcontract. COMPARE automatically computes the
           applicable inflation and federal income tax offset. There is no tax offset for
           services such as vehicles leased from other Government sources. There are no
           subcontracts costs in the study.
       •   Maintenance and Repair Costs: Maintenance and repair is the cost incurred to keep
           buildings and equipment in normal operating condition. It also includes purchased
           maintenance service costs for those assets that are needed for Agency performance of
           the functions under study. Maintenance and repair costs are assumed to be included
           in the rental costs.
       •   Minor Items: Minor items are defined as items costing less than $25,000.00 each that
           are not immediately consumed when used. Ten percent of the replacement cost of
           minor items required to perform the functions under study is charged to the study
           each year. COMPARE automatically computes the 10% minor item replacement
           cost. Minor items costs are shown in Attachment 8-B. A list of minor property items
           are shown in Attachment 9
       •   Other Costs: These are the specifically attributable costs that do not properly fit
           into one of the other cost elements.
              1) Training: This category covers the expected cost of Agency training, for
                 recurring and/or specialized training necessary to maintain required
                 licensing or certification for the functions under study. Training costs are
                 shown as Attachment 8-F.

E.L. HAMM & ASSOCIATES, INC.                                                           Page 5
FLEET NUMERICAL METEROLOGYAND            INFORMATION TECHNOLOGY SERVICES
OCEANOGRAPHY CENTER MONTEREY, CA
                           BASELINE COSTS REPORT

              2) Transportation of Things: These are specific services purchased to
                 perform transportation of things required for performance of the
                 functions under study. There are no transportation costs in this study.
              3) Communications and Postage: These are recurring costs for
                 communications and postage. There are no communications and
                 postage costs in this study.
              4) Printing: These are costs associated with the printing, copying, and
                 reproduction of printed material. There are no printing costs in this
                 study.
LINE 4 – OVERHEAD COSTS
   Overhead is calculated by multiplying Line 1 (including fringe benefits) by 12% (the
   overhead factor) and entering the total on Line 4. COMPARE automatically computes
   overhead. Overhead costs are shown as Attachment 10.
LINE 5 – ADDITIONAL COSTS
   This cost element includes costs not otherwise represented or accounted for on Lines 1
   through 4. This cost category should reflect those additional costs resulting from unusual
   or special circumstances that may be encountered in particular comparisons. Agencies
   shall provide sufficient written documentation for all additional costs included in cost
   estimates to allow for price analysis and cost realism. There are no additional costs in
   this study.
LINE 6 – TOTAL COST OF AGENCY PERFORMANCE
   The total Agency cost is the sum of Lines 1 through 5. COMPARE automatically
   calculates this BCR line. The total agency costs are shown in Attachment 11.




E.L. HAMM & ASSOCIATES, INC.                                                         Page 6

								
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