VETS 2 Pricing

This page contains the following pricing resources for the VETS 2 GWAC:

• VETS 2 Contract Labor Rates
• Contract Pricing and Competition
• Work Performed Outside the US

VETS 2 Contract Labor Rates

The VETS 2 Maximum Rates for each contractor are available within the VETS 2 GWAC Pricing [XLSX - 2 MB].

The description for each VETS 2 labor category can be found within the VETS 2 Labor Category Listing [PDF - 95 KB].

The maximum labor rates attached above include:

• Direct Labor Cost;
• Overhead;
• General and Administrative Expenses;
• Fringe Benefits; and
• Profit.

These rates apply only to time-and-materials and labor-hour orders. Distinct rates were established for Government Site and Contractor Site. They are inclusive of work within the Contiguous United States and already include the US Government security classification up through the Secret level. They do not include the 0.75 percent contract access fee

Contract Pricing and Competition

All contract holders must be provided a fair opportunity to be considered for all orders in accordance with Federal Acquisition Regulation (FAR) 16.505 unless an exception applies. Exceptions include an urgent need, only one capable awardee, and a logical follow-on to an order already issued under the contract. The full list of exceptions is in FAR 16.505(b)(2)(i). You must document exceptions.

If you allow adequate price competition, generally you do not need any more information to determine whether the cost or price is reasonable. You can find guidelines on adequate price competition in FAR 15.403-1(c)(1). Employ the cost and price negotiation policies provided in the FAR 15.4 and use your agency’s policies as you see fit.

A 2009 memo [PDF] from the Office of Federal Procurement Policy, Increasing Competition and Structuring Contracts for the Best Results, recommends that contracting officers avoid noncompetitive, cost-reimbursement, labor-hour, and time-and-materials contracts as a way to increase competition and avoid overpaying for critical IT systems.

Work Performed Outside the US

The Department of State's Office of Allowances publishes quarterly reports that will help you price work to be performed abroad, including:

• Cost of living;
• Per diem rate maximums;
• Quarters allowances;
• Hardship differentials; and
• Danger pay allowances.