Additional Instructions Pertaining To Supplemental Budget

240 - Additional Instructions Pertaining To Supplemental Budget Requests (SBRs) - (Rev. 1, 08-30-02) A1-1256, B1-4256 A. General These instructions pertain to SBRs filed after action is taken on the initial BR discussed in §230. An SBR is a contractor's request for additional funding after the FY has begun. The SBR is a request for additional funding for one or more activities. To the extent that the request, if approved, would result in a reclassification of the non-incremental costs and hours charged to other activities/functions, the contractor shall submit a schedule of non-incremental costs in accordance with §100.6C. It is not copied from either the NOBA or the BR. The contractor shall use the BPRs as a basis for providing its SBR justification. A SBR is generally filed after the contractor receives a NOBA for the full FY and it determines that there are insufficient funds to perform the statement of work outlined in the BPRs and the NOBA. A SBR may also be required if there is a special project for which it would like to request funding. Refer to §100.6 regarding PIs. An SBR may also be required in response to a CMS-generated request that a contractor perform a specific task. Such a CMS-generated request should be in writing and may include written procedures, manual issuances or any written request for work pertaining to special projects. A copy of the SBR, with rationale, must be sent to both the contractor's RO and CO at the time the SBR is transmitted via CAFM II. It shall send a copy to CO to the same address that it sends its BR. See §230.2 for address. B. Definitions The contractor shall base the SBR on the latest released NOBA or negotiated budget and any outstanding SBRs. An SBR is appropriate if there is a need for a change in total funding, a transfer of funds among functions, and/or a change in workload. The contractor shall select the correct activity code and enter incremental costs including hours and workload. It shall annotate in the Remarks section of the Activity Screen the NOBA number on which the current SBR is based. EXAMPLE: An SBR requesting additional claims funding of $200,000, workload of 150,000 along with additional telephone inquiries funding of $100,000 and workload of 25,000 would be transmitted as follows: Activity Code 11001, (Bills/Claims Processing): $200,000 Workload 150,000 Activity Code 13001, (Telephone Inquiries): $100,000 Workload 25,000 Remarks: This SBR is based on NOBA #1. The contractor shall not include funding previously requested and denied unless it is specifically re-requesting funding for this item and has provided a revised budget justification to support the request. C. Shared Systems The CMS requires that each user group designate one of its members to submit SBRs for systems improvements on behalf of the group or, if the servicing subcontractor (the subcontractor performing the systems improvement work) is also a Medicare contractor, that the SBR be submitted by that Medicare contractor. If the servicing subcontractor is a commercial vendor, the SBR must be submitted by the designee on behalf of the group through the designee's parallel RO or the designated RO with a copy to CO. If the servicing subcontractor is another Medicare contractor, that contractor submits the SBR to its parallel RO or the designated RO with a copy to CO. In all cases, the SBR submitted is consolidated to include the request for the servicing subcontractor and any related funds requested by the other user group members. However, the consolidated SBR will clearly state the amount(s) requested on behalf of each user as well as the servicing subcontractor, any unique user expenses for each user pertaining to the shared system activity, and delineate projected savings for each user. All funding through the NOBA is to the designee or Medicare contractor. Cost reporting corresponds to the NOBA. User unique expenses such as training and/or related travel are funded directly to each user with costs reported accordingly. This applies even though the requested funds are included in the consolidated SBR. The designated contractor is responsible for amending its subcontract with the maintenance vendor, requesting prior approval if the project costs exceed its threshold in the prime contract and accounting for proper expenditure of the project funds. D. Minimum Documentation Requirements – Justification A complete SBR must include transmission on CAFM II and submission of a written justification supporting the request. An appropriate official must submit the justification. The justification must provide sufficient detail for each cost category (see §90.9 and below) and explicitly link the request to the BPRs and/or general instructions that require the work and cost. If the request equals or exceeds the smaller of $100,000 or 5 percent of the total PM or MIP NOBA, whichever is applicable, the contractor shall define the major steps necessary to accomplish the proposed effort (at least 3 steps) and provide an operational and financial rationale which addresses each of the cost categories for each step. If the activity cannot be broken down into at least 3 steps, it shall explain why not. The operational rationale should explain the scope and types of efforts contemplated. The financial rationale should explain how the estimated funding needs were determined for each cost category through the identification of assumptions, supporting information and calculations used to arrive at the estimated amounts. 1. Salaries/Wages and Fringe Benefits The contractor shall provide job classes, number of employees (actual or FTEs), rates, period of work, major deliverables and/or milestones with dates. It shall discuss any premium payments. (These two cost categories may be combined.) 2. EDP Equipment The contractor shall discuss how the amount was determined or allocated and identify any extraordinary items required. If any equipment is to be leased or purchased, it shall provide details and, if appropriate, include a cost-benefit analysis. 3. Subcontracts The contractor shall identify subcontractor, scope, major deliverables, period of work and rates. 4. Other Direct Costs The contractor shall discuss how the amount was determined or allocated and any extraordinary items required. If any items are to be leased or purchased, it shall provide details and, if appropriate, include a cost-benefit analysis. 5. Overhead/G&A The contractor shall discuss how the amount was determined or allocated and any extraordinary items required. (These two cost categories may be combined.) 6. Hours The contractor shall identify and discuss both direct and subcontract hours. 7. Workloads The contractor shall identify and discuss all significant workloads.