Quantcast Pricing Requirements -Cont.

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similar manner for the initial contract period and for subsequent option
periods. In many instances the initial contract period will be different
from the first option period so that using the month as a basis for prices
simplifies the examples.
Let us assume that the estimated monthly cost for the first contract item
shown on the EPRS in Figure 3-5 was $20,800 (see page 34 of the text).  In
order to complete pricing requirements section of the EPRS (shown in a
condensed form below), a decision must now be reached as to the appropriate
unit which should be used.
The unit should correspond to the unit of work which will be observed
in the field.  In this case, it is an individual container pickup. The
number of container pickups scheduled for a month is therefore 2600
pickups.
By filling in the Total Column (Column 10, Figure 3-5) first, calculating
the cost attributable to each work requirement based on the weight and given
that the number of pickup of containers is 2600 a month, the pricing
requirements section of the EPRS is completed as shown below.
EXPANDED PERFORMANCE REQUIREMENTS SUMMARY (EPRS)
- PRICING REQUIREMENTS
TOTAL
QTY.
UNIT
UNIT
WORK REQ. WEIGHT
ITEM NO.
PRICE
%
$20,800.00
$8.00
2600 EACH
001
100%
$18,720.00
$7.20
2600 EACH
A
90%
$2,080.00
$0.80
2600 EACH
B
10%
The correct choice of the "unit" in the EPRS is important because the unit
chosen has a direct bearing on the surveillance of performance and on the
Government's ability to calculate deductions to the contract price in the
event of defective or nonperformed work. The unit chosen should represent
an occurrence of the service being performed and should be measurable. As
shown in the EPRS in Figure 3-5, the unit for emptying containers is not the
number of containers but rather the number of pickups per month. Examples
of typical units for a refuse collection and disposal contract include:
CONTRACT REQUIREMENT
UNIT
Pickup Containers
EA (No. of pick ups accomplished)
Sludge
Gallons Refuse placed in Landfill
Cubic Yards (C.Y) measured in place
or Tons (Weighed at Landfill)
Special refusepickups
EA (No of pickups accomplished)
Disinfecting Chemicals
Drums (Drum capacity specified
in PWS)
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