SUPPLEMENTAL NOTES

Army rates to calculate Contractor Full Time Equivalents for FY11 Inventory of Contracts for Services

The attached spreadsheet "PSC CMRA Factors" contains Army data to support the calculation of contractor full-time equivalents for your FY2011 Inventory of Contracts for Services, per the December 29th Guidance (also attached - see page 4, item #5 of the attachment).

We have made changes to the CFTE formula. The attached CMRA Rate Equivalence spreadsheet shows the algebraic factoring and simplification Army used to reduce the steps needed to compute CFTE from obligated dollars based on data reported by their contractors in the Contractor Manpower Reporting Application (CMRA).

The Guidance includes the formula CFTE = (Total Dollar Amount Obligated for a specific PSC for a contract, task/delivery order, interagency agreement X CFTE in corresponding category) / Total Dollar Amount Invoiced for the corresponding labor category

Which has been reduced to:

CFTE = "Total Dollar Amount Obligated for a Specific PSC" X "CFTE Factor [In Corresponding PSC]"

There are four sheets on the PSC CMRA Factors spreadsheet that may be used as follows:

1. "Generating Force - 4" - use the factors on this sheet that correspond to the appropriate PSCs for all contract services provided excluding any support provided in Iraq or Afghanistan.

2. "IA - 4" use the factors on this sheet that correspond to the appropriate PSCs for all contract services provided within Iraq or Afghanistan.

3. "Generating Force - 1" - use the factor on this sheet only if the appropriate 4 digit code does not appear on the "Generating Force - 4" sheet (as Army does not have the 4 digit level of detail for all PSCs), for all contract services provided excluding any support provided in Iraq or Afghanistan.

4. "IA - 1" - use the factor on this sheet only if the appropriate 4 digit code does not appear on the "IA - 4" sheet (as Army does not have the 4 digit level of detail for all PSCs), for all contract services provided within Iraq or Afghanistan.

As an illustration, using notional figures in the new formula:

Example: PSC CODE H110 - Quality Control Svcs/Weapons (not provided in Iraq or Afghanistan).

Obligation amount = $65 Million.

CFTE Factor = 0.000009996258946

CFTE = (65,000,000 X 000009996258946) = 649.76

Should Components choose to use this data, for the appropriate corresponding product service code, the total amount obligated for a contract action, task, or delivery order should be multiplied by the "CFTE Factor" listed on the appropriate spreadsheet as described above to generate a contractor full-time equivalent number.