WPS III Section B - Supplies and Services - 06.30.2020.docx

Worldwide Protective Services III Section B

Section B – SUPPLIES OR SERVICES AND PRICES/COSTS

B.1 Overview

The U.S. Department of State (DOS), Bureau of Diplomatic Security (DS), is charged with ensuring that global security to the DOS and foreign affairs agencies is adequate and appropriate for protection of personnel, classified information, and national security-related activities. DS’ Office of Overseas Protective Operations, Worldwide Protective Services Division (DS/OPO/WPS) supports DS’s global protective and security mission, particularly in high threat/high risk environments, by deploying the additional needed resources (labor and non-labor) to strengthen DS’ security and protective posture in a surge or long-term capacity.

The objective of this Worldwide Protective Services (WPS) III contract is to secure best-in-class and on-time delivery of those Contractor-provided services and resources DS/OPO/WPS deems necessary to meet DS’ global security and protective responsibilities.

B.2 TYPE OF CONTRACT

a) This Solicitation contemplates award of multiple indefinite-delivery, indefinite-quantity (IDIQ) contracts, as defined in Federal Acquisition Regulation (FAR) 16.504 (Indefinite-Quantity Contracts).

b) The resultant contracts will be for non-commercial items.

c) The contract type(s) for an individual task order will be one or a combination identified in FAR part 16 (Types of Contracts), depending on one or more of the factors identified in FAR 16.104 (Factors in Selecting Contract Types).

d) If a task order will be performance-based, as described in FAR subpart 37.6 (Performance-based Acquisition), its requirements will be conveyed and administered at the task order level.

B.3 MINIMUM AND MAXIMUM QUANTITIES UNDER EACH and all TASK ORDERs

a) Within the individual IDIQ contract period of performance (i.e. includes the base period plus 9 option periods), the Government agrees to meet the contract minimum of $10,000 (inclusive of all direct costs, indirect costs, and profit/fee) through the issuance of task order(s). Anytime within the IDIQ contract period of performance, the Government may place a maximum order of $1.5 billion per individual task order.

b) The maximum quantity for all IDIQ contracts, during the period of performance, including any extension(s), shall be any quantity or combination of supplies and services not exceeding $15,000,000,000 (inclusive of all direct costs, indirect costs, and profit/fee). The maximum quantity is cumulative among all task orders.

c) At the end of the Base Year, contractors that have not been awarded task orders may invoice the government for the minimum guarantee.

B.4 PRICING FOR LABOR

This contract contains negotiated not-to-exceed (NTE) fully-burdened labor prices for all labor positions under both hourly-rate and daily-rate pricing models. (See Sections B.4.1 and B.4.2, below) The Government will select the labor pricing model it wishes to use when it requests task order proposals from IDIQ contract holders.

The fully-burdened labor rates in this contract include all direct, indirect, general and administrative costs and profit associated with providing the required skill. The fully-burdened labor rates include all labor and labor-related costs, such as, but not limited to, the following list of representative labor-related costs: salaries, wages, bonuses to include stock bonuses, incentive awards, employee stock options, stock appreciation rights, employee stock ownership plans, employee insurance, fringe benefits, contributions to pension, other post-retirement benefits, annuity, employee incentive compensation plans, incentive pay, shift differentials, vacation time, sick pay, holidays, and all other allowances based upon a comprehensive employee compensation plan. Payroll withholding taxes that are the liability of the employee shall not be included in the build-up of the fully-burdened labor rate.

The use of uncompensated overtime is not encouraged.

A Normal/Standard/Productive Workweek for workers who have legal status to work in the United States of America (e.g., United States citizens, United States resident aliens, and individuals with permits showing authorization to work in the United States), consists of 40-hours in the United States (CONUS) and 72-hours outside the United States (OCONUS).

This IDIQ contract does not contain any labor rates for workers that are host-country/local nationals and third-country nationals. The parties will negotiate and establish labor rates for host-country/local nationals and third-country nationals at the Task Order level.

The Contractor CONUS personnel’s workweek shall consist of eight (8) hours per day, five (5) days per week.

The Contractor OCONUS personnel’s workweek shall consist of 12 hours per day, six (6) days per week.

Contractor personnel shall be available for work 24 hours per day, seven (7) days per week, regardless of workweek number of days and hours indicated elsewhere under the contract.

B.4.1 NOT-TO-EXCEED (NTE) FULLY-BURDENED HOURLY LABOR RATES

a) Not-to-exceed fully-burdened hourly labor rates in U.S. currency for 40 hour workweeks for each labor category required under this contract are listed in Table 5 in the Pricing Schedule Spreadsheet.

b) Not-to-exceed fully-burdened hourly labor rates in U.S. currency for 72-hour workweeks for each labor category are listed in Table 5 in the Pricing Schedule Spreadsheet.

c) For labor-hour arrangements and the time portion of time-and-materials arrangements, the Government will pay the negotiated fixed fully-loaded hourly labor rate minus ___% (to be inserted at contract award) attributable to profit for those hours the Contractor incurs when replacing or correcting services or materials [reference FAR 52.246-6 (Inspection – Time-and-Material and Labor-Hour)].

B.4.2 NOT-TO-EXCEED (NTE) FULLY Burdened DAILY FIXED UNIT LABOR PRICES

a) Not-to-exceed fully-burdened daily labor rates in U.S. currency for CONUS positions. See Table 8 in pricing schedule spreadsheet.

b) Not-to-exceed fully-burdened daily labor rates in U.S. currency for OCONUS positions See Table 8 in pricing schedule spreadsheet.

B.4.2.1 Pricing for CONUS Positions

a) The Contractor CONUS personnel’s normal workweek shall consist of eight (8) hours per day, five (5) days per week. However, they shall be available 24 hours per day, seven (7) days per week. The fully loaded daily labor price for Contractor personnel filling CONUS positions shall be based on a forty (40) hour work week (eight (8) hours per day x five (5) days per week).

b) The Contractor may not simultaneously staff a position with more than one (1) individual, and the Contractor shall be paid only one (1) daily rate per position per day under firm fixed unit pricing arrangement. Likewise, Contractor personnel filling CONUS positions shall be wholly dedicated to WPS III-related tasks during that work time.

c) The Government will pay only the productive days and at the negotiated fixed fully-loaded daily labor price for each position under firm fixed unit pricing arrangements.

B.4.2.2 Pricing for OCONUS Positions

a) The Contractor OCONUS personnel’s normal workweek shall consist of 12 hours per day, six (6) days per week. However, they shall be available 24 hours per day, seven (7) days per week. The fully loaded daily labor price for Contractor personnel filling OCONUS positions shall be based on a seventy-two (72) hour work week (12 hours per day x six (6) days per week). Any Chief of Mission critical work required that extends beyond the 12 hours per day, six days per week, shall only be authorized and billed as additional and emergency (A&E) hours. DS/IP/OPO/WPS policy and standard operating procedures for additional and emergency hours are to be monitored and followed at all times. The Additional and Emergency policy and standard operating procedures can change at any time. The vendor is responsible for engaging program office for any updates.

b) The Contractor may not simultaneously staff a position with more than one (1) individual, and the Contractor shall be paid only one (1) daily rate per position per day. Likewise, Contractor personnel filling OCONUS positions shall be wholly dedicated to WPS III-related tasks during that work time.

c) The negotiated not-to-exceed (NTE) fully-loaded daily labor rate for each position is based on one United States citizen performing at three hundred [and] thirteen (313) annual productive days per year and includes costs for paid time off (e.g., vacation, sick leave).

d) The Government will pay only the productive days and at the negotiated fixed fully-loaded daily labor price for each position under firm-fixed unit pricing arrangements.

B.5 Not-to-exceed (nte) UNIT PRICES FOR MATERIAL AND EQUIPMENT

Material and Equipment prices will be negotiated at the task order level.

B.6 PROVISIONAL BILLING INDIRECT COST RATES

a) This section applies to cost-reimbursement arrangements (i.e., task orders or line items in a task order), materials portion of time-and-materials arrangements, and any progress payments based on costs under fixed-price arrangements.

b) Provisional billing indirect cost rates shall be submitted in Table 2 of the pricing schedule spreadsheet

c) The Contractor may recover, if consistent with FAR subpart 31.2 and the Contractor’s established (or disclosed, if contract is Cost Accounting Standards-covered) cost accounting practices, allowable indirect costs.

d) Only the Contractor's indirect cost rates are identified above.

e) The Contractor shall be reimbursed:

1. only the indirect cost rate descriptions identified in the table unless prior written approval was obtained by the Contractor’s cognizant Federal agency official (CFAO); and

2. at the negotiated provisional billing indirect cost rates until revised billing indirect cost rates or final indirect cost rates have been established by the Contractor’s CFAO.

f) After any additional (other than just a name change) indirect cost rate description has been approved in writing by the Contractor’s CFAO, negotiation of provisional billing indirect cost rates and ceiling indirect cost rates associated with such description will occur after the CFAO has issued his prior written approval of such description.

g) If any revised billing indirect cost rate or final indirect cost rate(s) established by the Contractor’s CFAO exceeds this contract’s respective ceiling indirect cost rate (see Section B.7), the Contractor shall be reimbursed at the contract’s ceiling indirect cost rate.

h) The Contractor shall make no change to its established (or disclosed, if contract is Cost Accounting Standards-covered) method of classifying or allocating indirect costs without the prior written approval of the Contractor’s CFAO.

i) The Contractor’s fiscal year period is the period used by the Contractor for cost accounting purposes.

B.7 CEILING INDIRECT COST RATES

a) This section applies to cost-reimbursement arrangements (i.e., task orders or line items in a task order), materials portion of time-and-materials arrangements, and any progress payments based on costs under fixed-price arrangements.

b) The Negotiated ceiling indirect cost rates shall be submitted in Table 3 of the pricing schedule spreadsheet

c) The negotiated ceiling indirect cost rates will be compared to the respective established final indirect cost rates, and the Government shall pay the lesser of the negotiated ceiling indirect cost rates and the respective established final indirect cost rates. See Section B.6(g) for the other usage of the negotiated ceiling indirect cost rates.

d) If the Government uses the quick-closeout procedure provided in FAR 52.216-7 (Allowable Cost and Payment), the Government will not pay indirect cost rates that exceed the respective negotiated ceiling indirect cost rates.

B.8 TRAVEL COSTS Under COST RE-IMBURSMENT TYPE TasK ORDERS

a) Travel under this contract is defined as Contractor air and ground transportation, lodging, meals and incidental expenses, and passport/visa costs.

b) Except as otherwise provided herein, the Contractor shall be paid its allowable travel costs in accordance with FAR 31.205-46 (Travel Costs).

c) The following items concern passports and visas:

1. The Contractor shall be responsible for ensuring that all personnel who will be required to travel outside the United States have a current and valid U.S. passport.

2. The Contractor shall be responsible for obtaining any visas required for travel to foreign countries under this contract.

3. The Contractor’s costs for obtaining and maintaining passports and/or visas will be generally allowable. The Government will not reimburse the Contractor for travel expenses when travel is cancelled or modified as a result of the Contractor’s failure to obtain a visa, and where the Government has determined that such failure is due to the action or inaction of the Contractor.

4. The Government will not reimburse the Contractor for visas if the contractor employee does not deploy and actually perform work and supply and services under the contract, boots on the ground.

5. The Government will establish separate sub-CLINs for all passport and visa costs.

B.9 POST HARDSHIP DIFFERENTIAL PAY AND DANGER PAY Under Cost Re-Imbursement type Task Orders

Post Hardship Differential Pay and Danger Pay, which are forms of incentive compensation, will be generally allowable. However, Government payment of such costs is contingent on the Contractor meeting all of the following requirements:

a) Paying Post Hardship Differential Pay and Danger Pay is part of the Contractor’s established incentive compensation plan or policy, or employer/employee agreement entered into in good faith before the services are rendered, pursuant to FAR 31.205-6(f)(1)(i) (Bonuses and Incentive Compensation).

b) When paying Post Hardship Differential Pay and Danger Pay is part of the Contractor’s established incentive compensation plan or policy, such plan or policy is followed consistently as to imply, in effect, an agreement to make such payment, pursuant to FAR 31.205-6(f)(1)(i) (Bonuses and Incentive Compensation).

c) The Contractor's basis for paying Post Hardship Differential Pay and Danger Pay is supported, pursuant to FAR 31.205-6(f)(1)(ii) (Bonuses and Incentive Compensation).

d) Payment of such costs is otherwise consistent with FAR subpart 31.2.

e) Payment will be made only for areas identified as Post Hardship Differential Pay areas and/or Danger Pay areas in Section 920 of the Department of State Standardized Regulations (DSSR), but only if such payment is:

1. at percentages that do not exceed the percentages (effective at the time of performance) listed in the Department of State Standardized Regulations (DSSR) (if the Contractor applies percentages to calculate its overseas allowances);

2. at dollar amounts that do not exceed the dollar amounts paid to eligible United States Government civilians after multiplying the DSSR percentages (effective at the time of performance) by the eligible individual’s basic compensation (if the Contractor pays overseas allowances based on a fixed dollar amount);

3. based on the number of actual hours worked rather than based on compensation (if the Contractor’s established compensation plan or policy or employer/employee agreement is based on the number of actual hours worked); and

4. for Contractor employees whose country of citizenship is not in the country of performance.

f) Payment will be made only for eligible employees. Eligible employees are employees:

1. whose country of citizenship is not in the task order place of performance; and

2. whose primary residence is in an area not identified in Section 920 of the DSSR, or an area identified in Section 920 of the DSSR with an applicable DSSR percentage that is less than the respective applicable DSSR percentage for the task order place of performance.

g) Payment will not be made for additional and emergency hours (Ref: 4 FAH-3 H-533.10-3 & 4 FAH-3 H-533.12-2).

B.10 Additional and Emergency hours

The Contractor agrees to perform this contract, so far as practicable, without using additional and emergency hours, particularly as a regular employment practice, except when lower overall costs to the Government will result or when it is necessary to meet urgent program needs [reference FAR 22.103-2 (Overtime – Policy)].

B.11 FIXED Not TO EXCEED (NTE) PROFIT PERCENTAGES Negotiated profit percentages are listed in Table 4 Pricing Spreadsheet for the years listed below.

Base Year:

Option Year 1:

Option Year 2:

Option Year 3:

Option Year 4:

Option Year 5:

Option Year 6:

Option Year 7:

Option Year 8:

Option Year 9:

6-Month Extension (FAR 52.217-8):

B.12 FIXED NOT TO EXCEED (NTE) fee PERCENTAGES Negotiated fee percentages are listed in Table 4 Pricing Spreadsheet for the years listed below.

Base Year:

Option Year 1:

Option Year 2:

Option Year 3:

Option Year 4:

Option Year 5:

Option Year 6:

Option Year 7:

Option Year 8:

Option Year 9:

6-Month Extension (FAR 52.217-8):

B.13 TRAINING

a) Training costs shall be negotiated and priced at the task order level.

B.14 NON-LABOR/MATERIAL/OTHER DIRECT COSTS

a) Other Direct Costs (e.g., including but limited to DBA insurance, licenses, taxes, permits, and registration fees) will be requested, proposed and negotiated at the task order level.

B.15 SELECTED SUB-CONTRACT LINE ITEM NUMBERS (CLINsSLINs) In addition to CLINs elsewhere identified in the contract to be used at the task order level, the following Sub-CLINs may be used for the following respective descriptions at the task order level:

Miscellaneous

Section C.7.8

B.16 PRICING BEYOND IDIQ

Pricing for task orders issued with period(s) of performance beyond the IDIQ period of performance end date will be agreed upon at the task order level. Firm Fixed Price and Time and Material task orders will be based on the labor rates applicable for the last period of performance of the IDIQ, plus a reasonable escalation not to exceed the Consumer Price Index for the final year of performance.