Submitting Business Proposals/ Cost Reports

1. Submitting Business Proposals/ Cost Reports Presented by: Danielle Andrews, MHA Clarissa Whatley, MPA April 6, 2009

2. Business Proposal Concerns • Lack of sufficient cost detail (i.e.: unit cost and volume detail) • Lack of supporting documentation (i.e.: cost justification) • Incomplete business proposals (i.e.: RFP-requested details not provided)

3. Labor/Salary • Break-out all proposal salary per task: • Job Title (brief description of job duties) • Employee Name • Total Hours • Hourly Wage • If contactor is awarded a special project, 1 employee cannot work more than 1 FTE across multiple contracts. • Contractor should note within business proposal how salary was determined.

4. Subcontractors/Consultants • Thorough break-out of… • Labor rates • Determination if rate is fully loaded (only if rate includes more than salary) • Travel costs • (trip, purpose, traveler, per diem, air fare, mileage, car rental) • ODCs • Letter or voucher from contractor of proposed salary, hours and detailed justification of work. • Justification from contractor of need and reasonableness.

5. Travel • Thorough break-out… • trip, purpose, traveler, per diem, air fare, mileage, car rental • Follow the Federal Travel Regulations (FTR) • Approved rates can be found on www.gsa.gov • Begin utilizing the new travel Excel spreadsheets

6. Other Direct Costs/G&A • Thorough break-out of… • Unit price and volume • Justification of methodology utilized • Relevant supporting documentation • Price Quotes • Detailed cost per FTE data • Market surveys • Historical data • Catalog prices • Previous billing statements/vouchers

7. Printing and Reproduction Example

8. DO Show all unit cost and volume detail Directly charge for contract-specific items Indirectly charge general items Explain rationale of how cost were determined reasonable (narrative and spreadsheet) DON’T Bill for any food or beverages Only list charges in total Dos and Don’ts

9. General Rule of Thumb • The more substantive detail you provide; the better!! CMS will request additional supporting documentation from contractors if the appropriate details aren’t included in the proposal. Thus creating re-work on all involved parties. • ULTIMATE GOAL: Successfully award the contract!

10. Cost Reports • Purpose: CMS to monitor government funding and spending. • The cost information supplied should reflect actual cost incurred for the reported period by task. • Contractors can add lines to the labor/temp. labor section of Excel. • Special projects must be broken out for each project owned by the contractor. • Submit cost reports based on the instructions found in RFP • Helpful if contractor submits narrative about special circumstances or situations.

11. Cost Reports • Fixed Price Contractors • Task by task reporting of all cost categories • Submit on a semi-annual basis only

12. Cost Reports • Cost Reimbursement Contracts (including: special projects) • Submit monthly and semi-annual cost reports • Must report… • Travel • Continuing education • Meetings/conferences • Dues/subscriptions • Consultants/subcontracts • BOD costs/fees • Legal fees • Printing/reproduction

13. Cost Reports • Instructions will be given to all contractors regarding the cost report once the 18-month extension is awarded. • CMS is looking to revise the cost report for the ESRD Re-Design, we are interested in hearing your suggestions.

14. Contact Information Danielle Y. Andrews, MHA 7500 Security Blvd. MSC S3-02-01 Baltimore, MD 21244-1850 Telephone #: (410) 786-7227 E-mail Address: danielle.andrews@cms.hhs.gov Clarissa Whatley, MPA 7500 Security Blvd. MSC S3-02-01 Baltimore, MD 21244-1850 Telephone #: (410) 786-7154 E-mail Address: clarissa.whatley@cms.hhs.gov

15. Questions?