C. The Aviation Management Plan
D. The cost of government performance
E. Standard aviation operation cost elements--variable
a. Maintenance labor. All labor expended by mechanics, exclusive of the overhaul or major repair of components and engines.
b. Maintenance parts. This includes materials and parts consumed in aircraft maintenance and inspections, exclusive of materials and parts for engine overhaul, aircraft refurbishment, and/or repair of major components. Typical items in this category are tires, instruments, avionics, generators, relays, pumps, brakes, filters, airframe hardware, windows, interiors, paint, shafting, and bearings not inside components covered under an overhaul.
c. Maintenance contracts. This includes all contracted costs for unscheduled maintenance and for maintenance scheduled on a flying hour basis or based on the condition of the part or component.
d. Engine overhaul, aircraft refurbishment, and major component repairs. These are the materials and labor costs of overhauling engines, refurbishing aircraft, and/or repairing major aircraft components.
e. Reserves. This is for overhauling components of engines, and other major work including painting, refurbishment of the aircraft interior, and expenses not recognized in other maintenance accounts.
f. Add lines 5a through 5e and enter on line 5f for the total cost of direct variable maintenance and spares.
F. Standard aviation operation cost elements--fixed
a. Maintenance labor. This includes all projected labor expended by mechanics, technicians, and inspectors associated with maintenance scheduled on a calendar interval basis. This category also includes costs associated with non-allocated maintenance labor expenses; i.e., associated salaries, benefits, travel expenses, and training costs. These costs should be evenly allocated over the number of aircraft in the fleet.
b. Maintenance parts. This includes all parts and consumables used for maintenance scheduled on a calendar interval basis.
c. Maintenance contracts. This includes all contracted costs for maintenance or inspections scheduled on a calendar interval basis.
a. The acquisition cost is the value initially recorded on agency property/accounting records at the time of acquisition. If the aircraft is acquired through an interagency transfer, the acquisition cost is the greater of the aircraft net book value plus the cost of returning the aircraft to an airworthy, mission ready condition or the commercial retail value of that aircraft in average condition, as established by the Aircraft Bluebook Price Digest or other industry standard. If it is a military aircraft without a direct commercial equivalent, the acquisition cost is equal to the most comparable commercial equivalent plus the cost of returning the aircraft to an airworthy, mission ready condition. The following explains the relevant terms:
b. Useful life. Useful life is the estimated period during which the aircraft will be used. If a new aircraft has an airframe with a design life of 10,000 hours and the agency expects to fly the aircraft 500 hours per year, the useful life is twenty years.
c. Residual value. Residual value reflects the historically expected condition of the asset at the end of its useful life. It is the dollar value below which the asset will not be depreciated. Residual value is established at the time of acquisition. Agencies will select the lessor of the following methods to calculate the residual value of aircraft:
(1) Assume a 10 percent residual value for purposes of calculating the depreciable value of the aircraft and annual depreciation expenses.
(2) Select the average of the historic resale value of similar aircraft by age and type, as provided by GSA.
d. Reconstructions, conversions, refurbishment, and certification of ex-military aircraft. These maintenance efforts add value or prolong the life of aircraft. They are capital improvements that add to the Net Book Value of the asset (acquisition cost less accumulated depreciation). This revised total value should then be depreciated over the remaining or extended useful life of the asset.
e. Fully depreciated assets. If an asset has been fully depreciated or has exceeded its expected useful life, recalculate the depreciation schedule through the end of the cost comparison period.
a. Agencies should calculate annual in-house hull aircraft casualty insurance costs by multiplying the "Blue Book" or market value of the aircraft by the insurance factors provided annually by the General Services Administration's Aircraft Management Division. Enter these cost estimates on line 13a.
b. Agencies should calculate annual Federal aircraft liability insurance costs on the basis of the number of aircraft seats the agency has or will install, including pilots, over the course of the cost comparison period. Enter the aircraft liability cost developed using data provided annually by the General Services Administration's Aircraft Management Division on line 13b.
c. All other insurance costs incurred in the performance of the aviation service under study are calculated in accordance with Part II and entered on Line 13a or 13b, as appropriate.
d. Enter the total for all insurance (sum of lines 13a through 13c) on Line 13d.
a. The cost of capital is the annual cost to the Government of acquiring the funds necessary for capital investments. The cost of capital is applied to the outstanding balance of the aircraft purchase price for each year of the performance period.
b. The annual cost of capital is included for any depreciable asset acquired less than two years prior to or after the cost comparison that will be used as a part of the MEO. The cost of capital is only applicable to assets required by the MEO that will not be provided (GOCO) to the commercial source.
c. The cost of capital is calculated by applying OMB Circular A-94 "Discount Rates to be Used in Evaluating Deferred Costs and Benefits," plus any capital improvements.
d. If the purchase price is unknown, as in the case of a forfeited asset or interagency transfer, the acquisition cost is the greater of the aircraft net book value plus the cost of returning the aircraft to an airworthy, mission ready condition or the commercial retail value of that aircraft in average condition, as established by the Aircraft Bluebook Price Digest or other industry standard. If it is a military aircraft without a direct commercial equivalent, the acquisition cost is equal to the most comparable commercial equivalent plus the cost of returning the aircraft to an airworthy, mission ready condition.
e. Aircraft acquired through lease/purchase arrangements are not be burdened with the cost of capital. The cost of capital is assumed to exist in the lease/purchase agreement. At the transfer of title, depreciation expenses, calculated from the then existent market price of the aircraft, will be incurred.
G. Standard aviation operation cost elements--developing the cost of contract performance
a. The comparable cost of contract performance is to be calculated on the Aviation CCF.
b. The most efficient commercial cost of meeting the service requirement is to be entered if a solicitation was issued requesting formal bids. If GSA/FAMIS data is being used to estimate contract costs, this figure is established by reviewing existing contracts and rental/charter flight rate information provided by FAMIS or from other GSA approved sources.
c. Enter the estimated trip costs times the number of trips/missions or the hourly rate for that aircraft times the number of estimated flight hours from the PWS/PRS on line 19. If FAMIS does not reflect the aircraft services requirements, and reasonably accurate costs cannot be constructed by extrapolation from the FAMIS database, agencies may utilize other approved data sources.
a. Daily Availability/Standby/Guarantee Hours.
b. Additional Pilot and Crew Charges.
c. Additional Maintenance Support.
d. Airframe Alteration/Equipment Installation.
e. Equipment Not Provided by the Government.
f. Additional Ground Service Support.
g. Travel and Per Diem.
h. Service Equipment Mileage.
i. Airport Fees.
H. Aviation cost comparison of in-house versus contractor or ISSA performance.
a. If the result of the comparison is a decision to accomplish the work with contract resource and that decision is affirmed after adjustments by the public review, the agency will:
(1) Expand the Performance Requirements Summary developed under the aviation methodology to meet the requirements of a Performance Work Statement.
(2) Issue a formal solicitation for bids from the commercial sector and convert to contract.
b. If the decision of the aviation cost comparison is to accomplish the work with in-house resources, and that decision is affirmed after adjustments by the public review, the agency will announce the final decision in the Commerce Business Daily. The results will be recorded in the OMB Circular A-76 tracking system.
THE A-76 AIRCRAFT AND AVIATION COST COMPARISON FORM DIRECT OPERATION COST PER FLIGHT HOUR (PFH) 1. Fuel and and Other Fluids $_____ 2. Crew (PFH) _____ 3. Aircraft Lease or Rental _____ 4. Landing and Tie-Down Fees (If applicable) _____ 5. Variable Maintenance and Spares a. Maintenance Labor @ $___ per hour multiplied by ___ man-hours PFH ____ b. Maintenance Parts ____ c. Maintenance Contracts ____ d. Engine over-haul, etc. ____ e. Reserves ____ f. Total variable maintenance cost _____ 6. Total Direct Operating Cost Per Flight Hour _____ 7. Flight Hours for PWS. _____ 8. TOTAL DIRECT OPERATING COST (line 6 x line 7) $_____ FIXED OPERATING ANNUAL COST 9. Crew _____ 10. Fixed Maintenance a. Maintenance Labor _____ b. Maintenance Parts _____ c. Maintenance Contracts _____ 11. Aircraft Lease _____ 12. Depreciation _____ 13. Self Insurance a. Hull _____ b. Liability _____ c. Other c1. Casualty _____ c2. Personnel Liability _____ d. Total Self-Insurance _____ 14. Overhead _____ 15. Cost of Capital or Finance expense _____ 16. TOTAL FIXED OPERATING ANNUAL COST (Lines 9 thru 15)$_____ 17. TOTAL IN-HOUSE PERFORMANCE COST (Lines 8 + 16) $_____ CONTRACT AVIATION OPERATIONS COST WORKSHEET 18. Contract (PFH times number of hours) $_____ 19. Cost construction to meet PWS a. Daily availability/guarantee hours _____ b. Additional pilot and crew charges _____ c. Additional maintenance support _____ d. Airframe alteration/equipment installation _____ e. Equipment not provided by Government _____ f. Additional ground service support _____ g. Travel and per diem _____ h. Service equipment mileage _____ i. Airport fees _____ j. Other _____ 20. Contract Administration _____ 21. One-time Conversion _____ 22. Gain on Disposal/Transfer of Assets (deduct) (_____) 23. Federal income tax (deduct) (_____) 24. TOTAL CONTRACT PERFORMANCE COST $_____ ---------------------------------------------------------------- IN-HOUSE VERSUS CONTRACT PERFORMANCE Performance periods 1st 2nd 3rd Add'l TOTAL 25. In-house performance $______ $______ $______ $______ $______ 26. Contract performance $______ $______ $______ $______ $______ 27. Conversion Differential $______ 28. Adjusted Total Cost of In-House Performance $______ 29. Adjusted Total Cost of Contract Performance $______ 30. Decision - Line 29 minus Line 28: $______ 31. COST COMPARISON DECISION: Accomplish Work In-house (+) $______ Contract (-) $______ 32. 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 of the PWS/PRS. 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. 33. In-House Cost Estimate Prepared By:_________________ Date: ________ 34. Independent Reviewer: _________________________ Date: ________ _________________________ Office and Title "I certify that I have reviewed the PWS/PRS, Management Plan, In-house and GSA/FAMIS 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 PWS/PRS at the estimated costs included in this cost comparison is reasonably established, (2) that the selection and inclusion of contract performance costs are reasonable and, (3) that all costs entered on the cost comparison have been prepared in accordance with the principles and procedures of Circular A-76 and its Supplement. 35. Cost Comparison Completed By: ________________ Date: ________ 36. Contracting Officer: ________________ Date: ________ 37. Tentative Cost Comparison Decision Announced By: ________________ Date: ________ 38. Appeal Authority (if applicable): ________________ Date: _______
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