A rom or a rough order of ____ (rom) estimate provides a rough idea of what a project will cost.

Interim Policy Letter (IPL) 96-001, Lightning Bolt #4

SUBJECT: Interim Policy Letter (IPL) 96-012 26 Apr 96

EFFECTIVE DATE/IMPLEMENTATION: The AFMCFARS changes included in this letter are to be incorporated in solicitations issued on or after the date of this IPL. Incorporate these changes in solicitations issued prior to the date of this IPL if such incorporation will not delay award. This Interim Policy Letter will be superseded by an AFMCAC published at a later date. Ensure distribution to all Contracting Officers.

1. This IPL implements the following approved cases:

a. Additions to Part 5332, Contract Financing, Rough Order of Magnitude (ROM) AFMCFARS 5332.791 and 5352.232-9002 (Case 96-144). In the past, industry has requested the Government to provide funding information during the Request for Proposal (RFP) process to enable them to be more responsive to Government requirements. This provision provides offerors program funding estimates for their consideration in proposal development. The provision provides such information by expressing funding estimates as a Rough Order of Magnitude (ROM) and Fiscal Year percentage amounts rather than as exact budgetary dollar amounts. (Attachment 1)

b. Additions to Packing, Marking, and Consignment Instructions, AFMCFARS 5347.305-10(a)(96) and 5352.247-9005 (Lightning Bolt Case 96-97). This action amends the prescription to clarify that the clause applies when resealable packaging is needed for the F.O.B.destination deliveries. This language and clause were originally published in IPL 96-009 as Attachment 9. This change only adds additional language to Part 5347.305-10(a)(96). (Supersedes IPL 96-009, paragraph 1.i., Atch 9, dated 26 Feb 96) (Attachment 2)

2. If you have any questions, please call me or have your staff call my action officer, Ms. Chris Shockey,

HQ AFMC/PKPB, DSN 787-6757.

/// signed ///

LINDA G. WILLIAMS, SES

Deputy Director of Contracting

Attachments:

1. AFMCFAR Case 96-144

2. AFMCFAR Case 96-97

cc: HQ AFMC/IG/IK

5332.791 Rough Order of Magnitude (ROM) program estimate profile provision.

The Contracting Officer(CO) may include the provision, 5352.232-9002, Rough Order of Magnitude (ROM) Program Estimate Profile, in Section L of solicitations to provide offerors program funding estimates for their consideration in proposal development. It should not be used if funding considerations are otherwise addressed in the solicitation as a basis for award. The funding information provided should not exceed 6 years consistent with the current Fiscal Year Development Plan (FYDP). The provision is mainly intended for large multiple-year systems acquisitions. The provision includes a total ROM dollar amount as well as ROMs and corresponding percentage amounts by fiscal year. The total ROM amount should be cited whenever the clause is included in the RFP; however, the ROMs by fiscal year should only be used when the contract is to be incrementally funded. The program manager is responsible for providing the ROM numbers to COs. COs must ensure any changes to funding information during the RFP award process are conveyed to all offerors and, if appropriate, the offerors have an opportunity to update their proposals. This provision shall not be incorporated in awarded contracts.

5352.232-9002 Rough Order of Magnitude (ROM) Program Estimate Profile.

In accordance with 5332.791, insert the following provision in Section L substantially as written in solicitations:

ROUGH ORDER OF MAGNITUDE (ROM)PROGRAM ESTIMATE PROFILE (MAR 96)

This provision contains a total Government Rough Order of Magnitude (ROM) program estimate by Fiscal Year for the effort reflected in this solicitation. The offerors may consider these ROMs in developing their proposal. However, strict adherence to the funding profile incorporated herein will not be a consideration in the source selection decision and offerors are encouraged to develop best-value proposals. The government makes no assurances that the projected funds will be made available for this program nor shall this solicitation provision be the basis for a claim under the contract in the event the projected funds fail to materialize. This provision will not be incorporated in any contracts awarded as a result of this solicitation.

Atch 1

FISCAL YEAR ROM % of Total K

FY ____ (Contract Award Date ____) $____ ___%

FY ____ $____ ___%

FY ____ $____ ___%

FY ____ $____ ___%

FY ____ (Contract Completion Date: $____ ___%

____ )

TOTALS $____ 100 %

(End of Provision)

5347.305-10 Packing, marking, and consignment instructions.

(a)(96) The Contracting Officer shall insert the clause at 5352.247-9005, Packaging for Inspection and Acceptance at Destination, in Section D of all solicitations and contracts when material requires 100 per cent inspection at destination and packaging must be resealable.

5352.247-9005 Packaging for Inspection and Acceptance at Destination.

As prescribed at 5347.305-10(a)(96), insert the following clause in Section D of the solicitation and contract:

PACKAGING FOR INSPECTION ANDACCEPTANCE AT DESTINATION (FEB 1996)

Items requiring inspection and acceptance of material at destination must be preserved, packaged, and packed so that all containers are capable of being opened and resealed. The contractor shall be responsible for ensuring that the material being supplied under this contract is provided adequate physical protection to prevent corrosion or damage during shipment and storage, unless the damage or deterioration is due to fault of the government.

(End of Clause)

Atch 2

What is a ROM cost estimate?

Rough order of Magnitude (ROM) Cost A ROM Cost is a general approximation of the cost of providing a stated service. It is based on experience, costs of similar services, or on a cursory examination of other vendor's rates. A ROM Cost is usually provided to a Customer who is seeking general information.

What is a ROM rough order of magnitude?

A rough order of magnitude estimate, also known as ROM, is an estimation of a project's level of effort and cost to complete. ROM estimates take place early in a project life cycle and guide strategy and planning choices.

What is a rough estimate called?

Preliminary Estimate Preliminary estimates are also called rough or approximate estimates, according to Civil Engineering Daily. This is because they are not final—they give a ballpark idea of how much a project will cost.

What is rough estimate of a project?

A Rough Cost Estimate is an initial estimate that uses prior experience and other non-project data to estimate the cost of a project. It is also called a Rough Order of Magnitude (ROM) estimate, or a Conceptual Estimate.