Yes.
Labour allocations is you staffing cost. Including NI, Insurance, Uniform costs.
If you have not done many Tenders before they want to know where every penny is going and WHY!
Tendering is not just a case of here our price £15,000 - 5,000 per year x 3
They want to know how you have arrived at that price. You may also have an (acceptable) % in which you are allowed to increase the price as well.
My advice is to read it carefully. You will also need to supply an introduction of your company, why you are suitable candiate for the above works, i.e. experience, teams, equipment...
Hope this is of some help.
PS You will need to be competitive here....