Amendment_3.pdf

AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT 1. CONTRACT ID CODE

Page Of Pages

1 9

2. AMENDMENT/MODIFICATION NO. 3. EFFECTIVE DATE 4. REQUISITION/PURCHASE REQ. NO. 5. PROJECT NO. (If applicable)

Amendment No. 3 See Block 16C.

6. Issued by CODE JC009 7. ADMINISTERED BY (If other than Item 6) CODE JC009 U.S. Department of Labor Employment and Training Administration Office of Contracts Management 90 7th Street Suite 18-300 San Francisco, CA 94103

SAME

8. NAME AND ADDRESS OF CONTRACTOR (No., street, county, State and ZIP Code) (X)CODE (X)

9A. AMENDMENT OF SOLICITATION NO.

1630J6-18-R-00001

TO ALL POTENTIAL OFFERORS CONCERNING REQUEST FOR PROPOSAL FOR

SACRAMENTO JOB CORPS CENTER

9B. DATED (SEE ITEM 11)

12-20-2017

10A. MODIFICATION OF

CONTRACT/ORDER NO.

10B. DATED (SEE ITEM 11)

CODE FACILITY CODE

11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers is extended, is not extended. Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended by one of the following methods: (a) By completing items 8 and 15 and returning copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted; or (c) By separate correspondence which includes a reference to the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to change an offer already submitted, such change may be made by written correspondence provided each correspondence makes reference to the solicitation and this amendment and is received prior to the opening hour and date specified.

12. ACCOUNTING AND APPROPRIATION DATA (If required)

Not Applicable

13. THIS ITEM ONLY APPLIES TO MODIFICATION OF CONTRACTS/ORDERS.

IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

CHECK ONE

A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT ORDER

NO. IN ITEM 10A.

B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying office, appropriation date, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b).

C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:

D. OTHER (Specify type of modification and authority)

E. IMPORTANT: Contractor is not, is required to sign this document and return copies to the issuing office.

14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings including solicitation/contract subject matter where feasible.)

This amendment provides clarifications to the questions on the following pages.

Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains unchanged and in full force and effect.

15A. NAME AND TITLE OF SIGNER (Type or print)

16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or print)

Chin-Jen Chang Contracting Officer

15B. CONTRACTOR/OFFEROR

15C. DATE

SIGNED

16B. UNITED STATES OF AMERICA

16C. DATE

SIGNED

(Signature of person authorized to sign) (Signature of Contracting Officer) 1-9-2018

Solicitation No. 1630J6-18-R-00001 Amendment No. 3

1. Refer to Page 4 of the RFP (Section B.2). Please clarify the second paragraph that states: “FFP CLINs 0002, 1002, 2002, and 3002 in the Pricing Schedule shall be based on fully burdened hourly rates.” The referenced CLINs are not consistently used for cost categories related to “hourly rates.” For example, CLIN 0002 includes SubCLINs such as academic supplies, clothing, dormitory supplies, etc.

The items listed above are considered fixed price items that compose the overall Center Operations price.

2. Refer to Page 5 (Section B.2). Please clarify the meaning of the not-to-exceed (NTE) reference used with the cost reimbursement contract section. We understand that NTEs are different from ceilings. Please confirm that contractors will be reimbursed for the actual costs of the service or item for these Contract Line Item Numbers (CLINs) and SubCLINs, as stated in this section: “The contractor will be reimbursed for the actual cost of the service or item.”

Please see Section B.2.

3. The Pricing Schedule narrative is not clear in regards to the requirements for the cost reimbursable CLINs. There are two paragraphs that describe cost reimbursement not-to-exceed CLINs. Please clarify/correct these sections. The language is not clear for the CLINs referenced. What pertains to the Center Operations cost reimbursable lines and which are the capital (Equipment, CTST, and CRA) lines?

Paragraph ten states: “…overall CLIN amount will be provided by the Government and will not be considered as part of the offeror’s total evaluated cost.” Is this section intended to refer to the cost reimbursable NTE for capital-type funding for Construction/Rehabilitation, Equipment, Career Technical Skills Training (CTST), and Demonstration Projects instead of the cost reimbursable NTE for Center Operations?

Similar language is included in Section L regarding the Business Management Proposal.

Please confirm that offerors are required to submit amounts in the Pricing Schedule for the cost reimbursable CLINs (0003, 1003, 2003, and 3003) and corresponding SubCLINs.

Does this section also refer to the capital-type funding instead of the Center Operations cost reimbursable NTE?

The paragraphs in Sections B.2 and L.7 are correct and are referencing the cost reimbursable not-to-exceed line items that are not considered part of the offerors’ proposed price. Those amounts will be provided at award.

4. Refer to Page 5 (Section B.2) and Page 38 (Section G.4). Section B states: “…the

Contractor to bill ½ of that unit price per semi-monthly invoice at the parent CLIN.”

I. The language in Section G for invoicing is inconsistent. Detail for the fully burdened labor rates is required.

a. The semi-monthly unit price will include the fully burdened labor rates. The FFP CLINs include staff lines and non-staff lines.

b. Please explain why the invoicing for the fixed-price CLINs/SubCLINs should not be as described in Section B. The detail labor rate for each employee should not be necessary. Billing by the unit cost will allow the contractor to bill for all of the SubCLINs (labor and non-labor) in the same format.

This language is consistent. Section B and G require contractors to bill/invoice ½ of the unit price on a semi-monthly basis.

II. Define the “Staffing Report from the FMS system” that is referenced to be included for the billing period. Is this a new report? The current FMS system report is not adequate for this purpose.

Financial Management System (FMS) has an area in Staffing Report that has the information required for invoicing.

III. Section G.4.i is titled “Outreach Administration and Center Transition Costs.” Please confirm this should be revised to “Outreach/Admissions and Career Transition Services.”

“Outreach Administration and Center Transition Costs” should be revised to “Outreach/Admissions and Career Transition Services.”

IV. It appears this contract will have a different invoicing process from the current PRH procedures for vouchering. Will the government provide the new procedures and a standard invoice worksheet to properly bill the government? Please clarify/correct.

The invoice process remains the same. Contractors may bill 50% of costs incurred on a semi-monthly basis for the 1st through the 15th and the 16th through 30th/31st.

5 Refer to Pages 6-13 (Section B.2). Please confirm the cost reimbursable CLINs 0003, 1003, 2003 and 3003 will be expected to be managed on the overall total cost by parent CLINs, instead of by SubCLINs. The contract may require adjustments among the SubCLIN lines in option year budgets based on actual experience.

The assumption described above is correct.

6. Refer to Pages 6-14 (Section B.2), Pricing Schedule, and Attachment J-1. The Pricing

Schedule in Section B.2 is not identical to the Pricing Summary in the Excel file. Please clarify if the RFP will be updated or revised as this form will be part of the resulting contract.

Section B.2 and Attachment J.1 are in agreement.

As the RFP later becomes the contract, please clarify how Attachment J-1 will be referenced in the final awarded contract. Several of the tables in Attachment J-1 are not consistent with the RFP or are entirely excluded from the RFP.

Attachment J-1 will be referenced as historical data.

7. There are many formula and linking issues with the Attachment J-1 Pricing Schedule, but the file includes instructions not to revise the formulas. Please clarify/revise the worksheet.

I. It appears the Attachment J-1 Pricing Summary is intended to summarize the base period total and option year annual amounts. The detail worksheets in the current file do not function properly to produce these totals. Most worksheets are calculating a monthly amount, and some are annual. Furthermore, the Pricing Summary does not multiply the monthly rate times the applicable number of months. Therefore, the Pricing Summary does not reflect correct amounts.

The formulas are calculated on monthly expenses. The overall value is calculated based on the performance period.

II. Are offerors expected to revise the formulas to correct the calculations? If so, how will the Government ensure the accuracy and consistency of the proposals for evaluation purposes?

Offerors are only authorized to remove the formula for the supplies, materials, uniforms, etc.

III. Formula Example:

a. The firm-fixed price CLIN references No. 28 (Contractor’s Technical Performance Incentive Fee), but it is linked to the calculation of the Cost Incentive Fee on the DFP (Demand for Payment) & Incentive Fees tab.

Please see revised Attachment J.1.

b. The OA/CTS firm-fixed price includes the surge CLIN for Base Periods.

Please see revised Attachment J.1.

8. Refer to Page 4 (Section B.2), Pricing Schedule, Page 40 (Section G.7), and Attachment

J-1 (Surge CLIN). The Pricing Schedule includes a CLIN for pricing of Surge OBS (On-board Strength). The Government notes: “Changes reflected in OBS shall be based on per student price in blocks of ten.” This appears to be a unit price in blocks of 10.

I. The increase in OBS is not a simple calculation using Student Year cost. Many of the costs in operating a center do not directly change as OBS changes; therefore, adjusting the contract strictly based on cost per student in blocks of ten is not reflective of what costs will change due to lower/higher OBS. Some costs are fixed regardless of OBS.

Additionally, the costs may differ based on trades that may be revised, the residential or non-residential designation of the slots, etc. Will the Government consider other methods to adjust the contract OBS instead of using per student price in blocks of ten?

Offerors should average costs that include all costs per student. Currently, there is no other option or method to adjust the contract other than OBS per student price in blocks of ten.

II. OBS Surge Price worksheet in Attachment J-1 incorrectly calculates the Total OBS Surge Price due to incorrect linking to the fraction of the per day price. The amount is not a Per Student Price. This results in an understated proposed rate and total price on the Pricing Summary.

These calculations are consistent with historical U.S Department of Labor calculations.

III. How will the rate, which is comprised of firm-fixed-price and cost reimbursable components, be modified into a contract that is a combination of both types?

This question is unclear. The Government is not able to provide an answer.

9. Refer to Page 16 (Section C.1.D), Page 25 (Section C.3.E.7), and Page 33 (Section F.5).

Based on the new requirements of the RFP, various sections of the Job Corps Policy and Requirements Handbook (PRH) are not relevant and/or require revision.

I. The PRH is referenced in the RFP as the requirement to follow including complying with all updates and amendments. The requirements must be held constant based on time of proposal/award. Otherwise, as the program lines are fixed price (Lines 01, 02, 03, and 04 – Academic and CTT), contractors will be forced to submit Requests for Equitable

Adjustments (REA) regularly as the proposed/fixed contract prices will be based on the current requirements. Job Corps’ annual revisions to the performance measures also have cost implications that will impact the fixed price lines. For example, the Office of Job Corps annually adjusts the performance measures and weights, which may shift the contractor’s focus and cause changes in the costs of the fixed-price lines.

Performance measures do not cause a significant impact on cost.

II. Provide a description of the monthly contract reporting responsibilities, as the PRH financial requirements must change with the implementation of the fixed-price components. The RFP includes the contract clause about financial management according to the PRH. Currently, the PRH does not address financial management of a firm-fixed-price contract. As the majority of the CLINs are fixed price, please confirm the contract will be granted a PRH waiver for budget and expense reporting. These changes may also require revisions to Financial Management System (FMS).

Where the PRH is silent, the contract will take precedence.

10. The fee information is incomplete and inconsistent in the RFP and Attachment J-1. The

RFP language would not be adequate to implement in a contract award. Please revise and clarify.

The Technical Performance Incentive Fee section describes the potential for contractors to earn a “technical performance excellence bonus” in addition to the regular technical performance fee. Neither the Center Operations fee chart nor Attachment J-1 includes a section for the calculation of this Performance Excellence Bonus. A rate and calculation must be identified in the proposal/contract. Please confirm the rate is 0.50% as outlined in other Job Corps RFPs. Clarify whether the offeror should revise the form.

This issue should be resolved on the new RFP posted under the solicitation number referenced by this amendment.

11. Refer to Page 44 (Section G.13). The language of this section is not clear or adequate for a contract implementation. As the RFP later becomes the contract, the language must be clarified/revised in the RFP/proposal phase. According to FAR 11.501(b), “Liquidated damages are used to compensate the Government for probable damages. Therefore, the liquidated damages rate must be a reasonable forecast of just compensation for the harm that is caused by late delivery or untimely performance of the particular contract.” We request the government to re-consider this section.

I. Job Corps policy and program changes significantly impact the OBS levels and student retention (i.e., enrollment freezes, student retention policies, behavior discipline guidelines, etc.), which are not within the contractor’s control.

While it is not written specifically in the PRH, the Government does not hold Centers that do not have this capability to this standard.

II. What is the government’s plan if the center’s OBS is below 95% at time of transition?

The new operator could potentially be penalized in the second month of operation at no fault of its own. Please confirm this clause will not be applicable during the first year of the contract.

The Government expects the awardee to have a transition plan that illustrates how to improve the OBS once performance starts.

III. As students enter Job Corps and terminate throughout the year, contractors are required to maintain an average OBS during the contract year. It is unreasonable to assess damages on a daily calculation of 95%. A percentage based on contract year average OBS is more reasonable and realistic.

The current requirement will not be changed.

IV. Please clarify the “value specified” as referenced in this section. The contract does not include a section identifying a value for vacant OBS slots. As only a portion of the contract is fixed price, it is not reasonable to base the assessment on the full student per day cost.

The cost reimbursable costs are based on actual costs and are not incurred if the OBS is low. Additionally, 20% or 100% of the value appears punitive and excessive. For example, in the Sacramento contract, 5% of the contracted OBS is less than 21 students. Minimal cost savings would be generated by the absence of 21 students for one additional day beyond 30 days. Will the government consider revising the calculation similar to the language for excessive leave days based on 20% of Student Per Day Cost?

The current requirements will not be changed.

V. Please confirm the liquidated damages will be executed via contract modification by the Government before the contractor is to subtract the amount from a subsequent voucher.

Please see Section G.13 of the RFP.

12. Refer to Page 44 (Section G.15). This section references reimbursement for GSA rental charges. Currently, Job Corps contractors do not process payments for GSA rental charges. Instead, they are handled by the national office. It appears this section is irrelevant and should be removed.

Comment has been noted.

13. Refer to Page 49 (Section H.6.B). Please confirm the reference to “Attachment J.14” should be corrected to “Attachment J.16” for the Davis-Bacon wage determinations.

The reference is hereby corrected to “Attachment J.16.”

14. Refer to Page 49 (Section H.6.C). The data table for wage requirements states, “In accordance with BLS data.” Could you please provide the data so that all contractors are using the same data?

Please refer to the following website for Bureau of Labor Statistics (BLS):

https://www.bls.gov/oes/current/oes_ca.htm.

15. Referring to indirect cost rates:

I. Section H.23 includes the G&A table, but neither the proposal instructions nor Attachment J-1 include this table. Where will this this be presented in the proposal?

This table may be presented in the narrative section of the Business Management Proposal where G&A costs are discussed.

II. Typically for close-out purposes, cost reimbursable contracts must identify the contracted ceiling rate. Where will this be identified in the proposal/contract?

This is a fixed-price combination contract type.

https://www.bls.gov/oes/current/oes_ca.htm

16. Refer to Page 64 (Section H.30). Please confirm this incentive section does not apply to this procurement as the personnel CLINs are firm-fixed-price and not under the same FAR restrictions as cost reimbursable-type contracts.

See Section H.30.

17. Refer to Page 94 (Section L.7). There are many references to Attachment J-3. Please confirm this attachment is irrelevant to this proposal and will be removed from this solicitation.

Attachment J-3 is listed as “RESERVED.” It is not embedded into the current RFP.

18. Refer to Page 102, Section L.7, Factor 5. Concerning transition into the center, the Government must clarify the transition processes for the change in the contract type from the current cost reimbursable contract to a firm-fixed-price contract (i.e., title passage for materials/inventory on hand, identification of property/materials, etc.). As some inventory items will be chargeable to the fixed-price lines, how will the supplies/materials be transferred between contractors during transition? Here are some examples of FFP SubCLINs:

a. Academic & CTT supplies (Lines 02 & 04)

b. Residential & recreation supplies (Line 06)

c. Student clothing (Line 08)

d. Dormitory supplies including linens (Line 10)

e. Staff and student office supplies (Line 16)

During transition, all expendables are transferred to the incoming contractor. The value will not change.

19. There are many problems with the Attachment J-1. The integrity of the file is questionable as the formulas and links are inconsistent and incomplete.

Please see revised Attachment J-1.

20. Attachment J-5 is blank. Please complete this form.

For the information in Attachment J-5, refer to Section C.3 (Career Technical Training) of the RFP. The Career Technical Training programs that qualify for Career Technical Skills Training (CTST) funding are listed.

21. Please confirm that the not-to-exceed amount in CLIN 0013 for Equipment applies to

Center Operations, Outreach/Admissions, and Career Transition Services.

CLIN 0013 applies to Center Operations, Outreach/Admissions, and Career Transition Services.

22. Please confirm that funding for repair or reconstruction of buildings will come from

Construction, Rehabilitation, and Acquisition (CRA) instead of Center Operations.

CRA funds will be used to repair or reconstruct buildings.

23. Refer to Page 5, Section B.2, Attachment J-1. This section includes the following paragraphs pertaining to the cost reimbursable not-to-exceed CLINs:

G&A, Profit/Fee: The Contractor shall propose the overall G&A, Profit/Fee amounts applicable to the Cost Reimbursement Not-to-Exceed CLINs.

Cost Reimbursable Not-to-Exceed (NTE) overall CLIN amount will be provided by the Government and will not be considered as part of the Offeror’s total evaluated cost.

Contractors will invoice for actual costs during the performance of this contract.

Also, the cost reimbursement NTE tab of Attachment J-1 indicates that the NTE amounts are to be set at the time of award. Therefore, should Sub CLINs 0003, 1003, 2003, and 3003 on the cost reimbursement NTE tab and the Pricing Summary tab be left blank?

Yes. These areas should be left blank.

G&A and Profit cannot be calculated for the cost reimbursement NTE CLINs at the time of proposal submission. Should these be presented as percentage amounts?

These should be presented as percentage amounts.

24. Refer to Attachment J-1:

Are offerors limited to proposing only the position titles listed in Attachment J-1?

The personnel tabs include Overhead and G/A columns. Please specify the difference.

Offerors may propose position titles not listed on Attachment J-1. The terms “Overhead” and “G&A” (General and Administrative) are used interchangeably to refer to costs which are not directly allocable.

Do the fee columns in the personnel tabs represent the offerors’ discretionary fee that is separate from the fees explained in section G.3?

The fee columns in the personnel tabs should match the fees in Section G.3.

The non-personnel tabs have blank headings across Row 14. Should the offeror add G&A and Profit columns or should these expenses be presented as a single fully burdened amount?

Offerors may add columns for G&A and profit. Offerors may also present these expenses as a single fully burdened amount if explanation is provided.

Cell F26 of the Pricing Summary tab contains an incorrect formula as it references cells F48 and F55 of the same tab which are not fee values. It appears that it was attempting to reference those cell addresses from the DFP & Incentives Tab.

See revised Attachment 1.

Please clarify the purpose for CLIN 0010 labeled “Termination” on the Pricing Summary tab which is located at Row 181 on the Pricing Summary tab. Is this different than Transition Out costs represented at Row 153?

“Termination” applies to a contract that is terminated for convenience or default.

25. This section refers to the PRH being incorporated into this RFP. We realize that this section also states that the RFP or resultant contract takes precedence over any conflicting provisions. We anticipate a vast number of conflicting provisions and requirements when comparing what currently exists in Appendix 502 of the PRH versus what is outlined in this RFP under Section G and others relating to costing structure. Are there plans to issue changes or clarifications to the PRH to address the many cost changes we see reflected in this RFP?

Changes are being considered.

26. Refer to Page 104, Section L.7, Factor 5.d. The language that begins this section says:

“A narrative justification for each cost reimbursable line item is required for all contract years. Include all explanatory narratives and necessary calculations showing how costs are determined.” Given that the cost reimbursable line items are NTE amounts to be set by the Government at time of award, how is a narrative justification applicable?

Regarding cost reimbursable line items, please provide a narrative explanation stating that “NTE amounts will be set by the Government at time of award.”