You are soliciting a single-source proposal from Motley Systems to provide seven major components for the Motley I system. Your purchase request estimates total contract price at $900,000. Motley Systems is a well-established systems developer and producer. They have a remarkable record of accurate cost estimating and effective cost control. The Motley I was developed by Motley Systems exclusively for sale to the Government.
Answer the following questions:
1. Should Motley Systems be required to submit cost or pricing data? Why?
2. If Motley Systems is required to submit cost or pricing data, should the firm be required to submit a single summary cost breakdown for the entire proposal or a cost breakdown for each of the seven line items? Why?
3. After an initial review of Motley's $845,000 proposal you note that all the labor estimates are based on 'judgment." Motley has been building these systems and spare parts for more than two years. Is the firm required to provide historical cost data?
4. Is the firm required to use the historical cost data in developing its cost estimate?
5. On June 3, 19X2, you and George Motley reach an agreement on contratc price, based on a proposal submitted on April 15, 19X2. Contract award is projected for June 30, 19X2. No special cutoff dates for cost or pricing data submission were agreed to during contract negotiations. When should Motley be required to submit a Certificate of Current Cost or Pricing Data?
6. What should be the "as of" date for the certificate?