Amend_0002_Section_J_Attachment_J_-_CLIN_and_Invoicing_Supplement.docx

Solicitation #19AQMM18R0428 Section J, Attachment J Amendment 0002

ATTACHMENT J – CONTRACT LINE ITEM NUMBER AND INVOICING SUPPLEMENT

This document provides a detailed description of the numbering scheme for the contract line item numbers (CLINs) that make up the contract. Additionally, notional scenarios for different CLIN types include sample contract pricing to demonstrate how the Government anticipates seeing the CLIN structure and associated pricing being used during contract performance. Please note that all prices, labor categories, and labor rates used in these scenarios are entirely fictitious and in no way reflect actual or anticipated pricing under the contract.

FIRM FIXED PRICE (FFP) CLIN FORMAT AND SAMPLE SCENARIO

The FFP CLINs include the 099 Transition CLIN; CLINs X01 through X05, covering the five (5) Core Mission Fulfillment work products; and CLIN x12, covering the FFP option of Project Support Services.

Transition CLIN As there is only one instance of this CLIN, it was assigned a CLIN number of 099 to avoid confusing it with any of the other CLINs. If opting to use this CLIN, the contractor would include a price for this CLIN in their pricing tables. In this scenario, the contractor has quoted a price of $30,000 for the transition CLIN. (Note: if the contractor opted not to use this CLIN, the quoted price would be $0.00)

Transition

Table 1, Excerpt of Pricing Tables for Transition

The Government anticipates that the contractor would invoice against this CLIN in equal installments for each invoicing period for the duration of the contractor proposed transition period.

Core Mission Fulfillment CLINs As illustrated in the table below, the first digit (X) of the CLIN shall identify the contract year, followed by the two digit identification of the work product, and lastly the letter indicating the base or incremental step CLIN (A for base, B-K for steps). As an example, CLIN 002A refers to the Base Year (0), for Immigrant Visa Fulfillment (02), for the base volume (A).

001A – 005A 001B-K – 005B-K Base Year base volume CLINs Base Year Step CLINs

101A – 105A 101B-K – 105B-K Option Year One (1) base volume CLINs Option Year One (1) Step CLINs

201A – 205A 201B-K – 205B-K Option Year Two (2) base volume CLINs Option Year Two (2) Step CLINs

301A – 305A 301B-K – 305B-K Option Year Three (3) base volume CLINs Option Year Three (3) Step CLINs

401A – 405A 401B-K – 405B-K Option Year Four (4) of base volume CLINs Option Year Four (4) Step CLINs

Table 2, FFP Contract Line Item Number Format

Base and Step CLINs Each FFP CLIN contains a Base CLIN, which is tied to Government’s base estimate of work units to be processed in that contract year. The Contractor shall invoice annual FFP Base CLIN amounts using the sum of actual “volume of units processed” as they occur in each invoicing period. For each contract year, if service units fall at or below the base volume of a particular FFP CLIN, the Contractor will invoice for their quoted price relative to the base CLIN only. For all FFP CLINs, the base CLIN price/ceiling will eventually be paid in full over the course of the year (notwithstanding any effects from the performance disincentive plan), even if actual volume of units processed is less than the amount of units covered in the base CLIN.

To provide flexibility for situations in which the actual volume in a given contract year is higher than the base volume, the Government has established additional CLINs, called “step” CLINs. Each FFP work product has 10 associated step CLINs that are available to cover units processed above the base volume/CLIN. Each step CLIN covers volume increments equal to 10% of the base CLIN. For example, if the base volume CLIN for a work product covers 100,000 units, each step CLIN would cover 10,000 units. The first step would cover units 100,001 thru 110,000, the second step would cover units 110,001 thru 120,000, and so on.

When processed units fall within a step CLIN, the Contractor will be able to invoice for their quoted price relative to the particular step CLIN. Additionally, the Contractor shall invoice individual step CLIN amounts in ascending numerical order using the sum of actual “volume of units processed” as they occur for each invoicing period after the baseline amount is exhausted. In other words, the Contractor can only invoice for a step CLIN once the previous CLIN has been fully exhausted, including the base CLIN. The step CLIN structure allows the contract to cover actual volume at twice as much as the initial Government estimate in any given year, for any given FFP work product.

FFP Step CLIN Scenario For a scenario in which Immigrant Visa Intake volume exceeds the base estimate for the Base Year of the contract, the step CLINs would be applied in the following manner. The Base Year CLIN (001A) for Immigrant Visa Intake volume covers 381,000 units. First assume that the Contractor quotes a total price of $342,900, equivalent to an individual unit price of $0.90, for CLIN001A. However, for this scenario, the actual volume of Immigrant Visa Intake units processed in the base year of the contract exceeds the base volume/CLIN by 25%, resulting in a total volume of 476,250 units, or 95,250 units above the base. Therefore, in this scenario, the Contractor would invoice actual units processed during the base year at a cost of $0.90 per unit until completing the first 381,000 units and invoicing for the entire cost ($342,900) of the base CLIN. For the remaining 95,250 units processed, the contractor would invoice against the appropriate step CLIN based on the units processed and the unit price associated with each applicable step CLINs.

Core Mission Fulfillment Services – FFP

Table 3, Excerpt of Pricing Tables for FFP CLIN Invoicing Scenario

Each step CLIN (001B thru 001K) covers units processed above the base CLIN in increments of 10%, which for Intake translates to 38,100 units per step CLIN. As portrayed in the table below, in this scenario, the Contractor would invoice the first 38,100 units processed above the base estimate against the first step CLIN (001B) at its equivalent per unit price of $0.80/unit. After exhausting the first step CLIN, the Contractor would begin invoicing the next 38,100 units processed against the second step CLIN (001C) at its equivalent per unit price of $1.00/unit. Lastly, after exhausting the second step CLIN, the Contractor would begin invoicing against the third step CLIN (001D), which would cover the remaining 19,050 units processed, at the equivalent per unit price of $0.90/unit.

Table 4, Example Calculation of Total Fees for Volume Above Base Estimate Using these figures, the contractor would receive a total of $85,725 for processing Immigrant Visa Intake units above the base CLIN (001B thru D), in addition to the $342,900 received for the base CLIN (001A).

Project Support Services – FFP CLIN CLIN x12 is to be used in conjunction with approved project charters (per RFP C.6.1) for which unit based pricing is more appropriate. Although technically a FFP CLIN, it differs from the other FFP CLINs in that it includes no step CLINs and that the Government has prescribed an overall ceiling of $100,000.

The first digit of this series of CLINs represents the contract year (X), and the letter following the last digit indicates the applicable charter, with ‘A’ corresponding to the first charter, ‘B’ corresponding to the second charter, and so on. This scenario assumes that one of the centers would like to pilot a new case fulfillment process on 1,000 cases during option year three. This scenario also assumes this is the first approved project charter of option year three and that the Government has accepted a ceiling price for CLIN 312A of $1,000 for the cost of the pilot, or an equivalent unit price of $1.00/unit. Once the Government and contractor modify the contract to activate and fund the relevant CLIN (312A in this example) and the contractor begins working against the charter, the contractor would be able to invoice for units processed up to the established ceiling against the applicable CLIN (again, 312A in this example).

The table below gives a snapshot of the CLINs in this scenario assuming that the Contractor has already processed and invoiced for 500 units under the pilot project associated with CLIN 312A.

Table 5, Project Support Services (FFP) Funding / Invoicing Snapshot

LABOR HOUR (LH) CLIN FORMAT AND SAMPLE SCENARIO

As seen in the table below, the LH CLINs utilize a similar format to that of the FFP CLINs. The LH CLINs range from X06 to X11, covering the five (5) Specialized Mission Fulfillment services (x06 to x10) and the Project Support Services CLIN (x11) to be used in conjunction with approved project charters. The first digit (X) of the LH CLIN identifies the contract year, followed by the two digit identification of the service, a letter (A or B) to indicate where the labor is performed, and lastly a number to correspond to each unique LCAT priced under that CLIN and location combination. As an example, CLIN 006A-1 refers to the Base Year (0), for the Fraud Prevention Unit (06) for work performed at NVC (A) and the first LCAT utilized (-1).

006 – 011 006A-1 thru -y – 011A-1 thru -y 006B-1 thru -y – 011B-1 thru -y Base Year LH CLINs Base Year LH CLINs, NVC Labor by LCAT Base Year LH CLINs, KCC Labor by LCAT

106 – 111 106A-1 thru -y – 111A-1 thru -y 106B-1 thru -y – 111B-1 thru -y Option Year One (1) LH CLINs Option Year One (1) LH CLINs, NVC Labor by LCAT Option Year One (1) LH CLINs, KCC Labor by LCAT

206 – 211 206A-1 thru -y – 211A-1 thru -y 206A-1 thru -y – 211B-1 thru -y Option Year Two (2) LH CLINs Option Year Two (2) LH CLINs, NVC Labor by LCAT Option Year Two (2) LH CLINs, KCC Labor by LCAT

306 – 311 306A-1 thru -y – 311A-1 thru -y 306A-1 thru -y – 311B-1 thru -y Option Year Three (3) LH CLINs Option Year Three (3) LH CLINs, NVC Labor by LCAT Option Year Three (3) LH CLINs, KCC Labor by LCAT

406 – 411 406A-1 thru -y – 411A-1 thru -y 406A-1 thru -y – 411B-1 thru -y Option Year Four (4) LH CLINs Option Year Four (4) LH CLINs, NVC Labor by LCAT Option Year Four (4) LH CLINs, KCC Labor by LCAT

Table 6, LH CLIN Format

LH CLIN Scenario This scenario assumes that the contractor submitted pricing tables and an LCAT price list for option year two as follows:

Table 7, Excerpt of LCAT Price List

Specialized Mission Fulfillment Services – LH

FPU – KCC Labor

Table 8, Excerpt of LH CLIN Pricing Tables for FPU at KCC

As individuals at KCC who are performing in fraud prevention analyst and fraud prevention team leader roles expend hours on FPU activities, the contractor would track these hours and invoice them against their proposed pricing. This scenario assumes that, part way through option year two, the contractor has expended 2,000 hours across all individuals fulfilling the Fraud Prevention Analyst LCAT, and 1,000 hours across all individuals fulfilling the Fraud Prevention Team Leader LCAT. The table below presents a funding / invoice snapshot for this scenario.

(per example) Funds Remaining

Table 9, LH CLIN Funding / Invoice Snapshot

Project Support Services – LH CLIN CLIN x11 is to be used in conjunction with approved project charters (per RFP C.6.1) for which labor hour pricing is more appropriate. In practice, this CLIN and its sub-CLINs function like all other LH CLINs and like the LH CLIN scenario provided above. The primary difference is that the Government has prescribed an overall ceiling of $400,000. Once the Government and contractor modify the contract to activate and fund relevant sub-CLINs, the contractor would be able to invoice for hours expended against the LCATs and corresponding sub-CLINs for the individuals who are performing work against the charter.

COST REIMBURSABLE (CR) CLIN FORMAT AND SAMPLE SCENARIO

CLINs x13A and x13B are cost reimbursable (CR) CLINs for other direct costs (ODC) to be used primarily for travel and center-specific materials. The Government has prescribed a ceiling of $720,000 and $200,000 for ODCs at NVC and KCC, respectively, for each contract year. For the CR CLINs, the first digit (X) refers to the contract year, and the ‘A’ or ‘B’ following the last digit refers to NVC or KCC, respectively.

This scenario assumes the contractor has already invoiced for $500,000 worth of ODCs at NVC and $100,000 worth of ODCs at KCC through month six of option year four, and that several contract staff at NVC travel to the U.S. Embassy in London during month seven, incurring a total of $20,000 in reimbursable expenses. The Contractor would invoice $20,000 against CLIN 413A for these expenses. The table below gives a snapshot of the ODC CLINs based on the assumptions in this scenario.

Table 10, CR CLIN Funding / Invoicing Snapshot