19AQMM21R0135 Solicitation B-M Draft.docx

19AQMM21R0135 – Draft RFP Table of Contents

Section B- Supplies or Services and Prices/Costs

B.1 OVERVIEW

The Integrated Logistics Management System (ILMS) is the Department of State’s (DOS’) enterprise supply chain management program. Using a suite of integrated technologies, ILMS supports the requisition, procurement, warehousing, transportation, receipt, and tracking of goods and services, domestically and overseas. Similarly, ILMS supports the processing and management of federal assistance, fleet management, as well as diplomatic pouch and mail (DPM) service. In addition, ILMS provides service management, allowing ILMS users to request Department-wide services, and facilitates the fulfillment of these services. ILMS advances the Department’s mission by getting the right resources to the right place at the right time. The Contractor shall deploy, operate, maintain, enhance, and support ILMS and its global users.

B.2 TYPE OF CONTRACT

a. This is a single award indefinite-delivery, indefinite-quantity (IDIQ) contract, as defined in Federal Acquisition Regulation (FAR) 16.504 (Indefinite-Quantity Contracts).

b. This contract is for non-commercial items. Specific tasks or work to be performed will be identified at the task order level.

Note: Because the Government anticipates that the majority of performance under the contract will be for services, “task order” is used predominantly throughout this contract. However, the Government reserves the right to issue delivery orders. Where a contract term or condition references “task order,” such term or condition shall apply, also, to “delivery order.”

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.

e. This is a nonpersonal services contract, as defined in FAR 37.101 (Definitions). Inherently governmental functions, as described in FAR 7.503 (Policy) or by the ordering agency, are prohibited under this contract. The Government will neither supervise Contractor employees nor control the method by which the Contractor performs the required tasks. The Contractor shall manage its employees and guard against any actions that are of the nature of personal services or give the perception of personal services. The Contractor shall notify the Contracting Officer immediately if it perceives any actions that constitute personal services. This contract shall not be used to perform any inherently governmental functions.

B.3 MINIMUM AND MAXIMUM CONTRACT QUANTITIES

a. The Government shall meet the contract minimum of $50,000 (inclusive of all direct costs, indirect costs, and profit/fee) through the issuance of task order(s) within the contract’s period of performance.

b. The maximum quantity for the contract’s period of performance, including any extension(s), shall be any quantity or combination of supplies and services not exceeding $2,500,000,000 (inclusive of all direct costs, indirect costs, and profit/fee).

B.4 NOT-TO-EXCEED (NTE) FULLY-LOADED HOURLY LABOR RATES

a. This section applies to labor-hour arrangements (i.e., task orders or line items in a task order), the time portion of time-and-materials arrangements, and when negotiating the fixed price under fixed-price arrangements.

b. The negotiated NTE fully-loaded hourly labor rates are located in Section J’s Attachment 1 (Not-to-Exceed Fully-Loaded Hourly Labor Rates).

c. The labor category description for each labor category identified in Section B.4(b) is located in Section J’s Attachment 1.

d. The negotiated NTE fully-loaded hourly labor rates are in United States currency.

e. The negotiated NTE fully-loaded hourly labor rates apply regardless of whether the individual performing the labor works (either as an employee or consultant) for the prime contractor or a subcontractor.

f. The negotiated NTE fully-loaded hourly labor rates labeled as “Cont Site” in Section J’s Attachment 1 apply to performance at a Contractor site or subcontractor site.

g. The negotiated NTE fully-loaded hourly labor rates labeled as “Govt Site” in Section J’s Attachment 1 apply to performance at a Government site or telework site (e.g., private residence).

h. The negotiated NTE fully-loaded hourly labor rates apply regardless of whether the labor category is performing: 1) in the continental United States (CONUS), or 2) outside the continental United States (OCONUS) when the individual performing the labor category is working under a 40-hour normal workweek or on temporary duty (TDY) status under any normal workweek. TDY is defined as less than a year.

i. The negotiated NTE fully-loaded hourly labor rates are based on contractor employee, subcontractor employee, and/or consultant performance primarily in the Washington, DC, area. At the task order level, the Contractor shall propose and be paid at fully-loaded hourly labor rates that are less than the respective negotiated NTE fully-loaded hourly labor rates when contractor employee, subcontractor employee, and/or consultant performance is in an area whose market normally commands a lower salary (e.g., Charleston, South Carolina). The U.S. Office of Personnel Management’s General Schedule Locality Pay Tables for the applicable year will be used, at least in part, to determine market conditions for domestic performance.

Otherwise, at the task order level, the Contractor will be given an opportunity to propose fully-loaded hourly labor rates that match or are lower than the respective negotiated NTE fully-loaded hourly labor rates. The Contractor will be paid only at fully-loaded hourly labor rates that are equal to or are less than the respective negotiated NTE fully-loaded hourly labor rates.

j. Each negotiated NTE fully-loaded hourly labor rate consists of an unloaded hourly labor rate, any labor-related direct costs (e.g., any direct fringe benefits, any direct bonuses), applicable indirect costs, and profit amount. It does not include any other costs.

Any other costs that are part of the Contractor’s established compensation plan and consistent with FAR part 31 shall be allocated separately as an ODC (other direct cost) (under fixed-price and cost-reimbursement arrangements) or as a direct material (under time-and-materials arrangements) at the task order level. Examples of such costs, if applicable, that shall be allocated separately as an ODC or direct material at the task order level, are post hardship differential pay and danger pay.

k. Any costs included in the negotiated NTE fully-loaded hourly labor rates shall not be charged elsewhere under this contract.

l. The fully-loaded hourly labor rates awarded as part of an individual task order will apply only to that task order.

m. The fully-loaded hourly labor rates awarded as part of an individual task order will also apply to each equitable adjustment resulting from any change to the task order requirement.

n. The following describes the normal workweek for Contractor and subcontractor employees:

1) A normal workweek falls within a consecutive seven-day period.

2) The negotiated NTE fully-loaded hourly labor rates apply to a normal workweek of 40 hours, regardless of the days and times comprising the normal workweek.

3) A normal workweek of 40 hours is based on performance of eight hours per day multiplied by five days per week.

4) A normal workweek of 40 hours applies to performance in the continental United States (CONUS) and outside the continental United States (OCONUS). “CONUS” means the 48 contiguous states, Alaska, Hawaii, and the District of Columbia.

5) For non-TDY performance, if the normal workweek for an individual task order differs from a 40-hour normal workweek, both parties will negotiate labor rates based on the normal workweek for the individual task order. Such negotiated rates will apply only to that task order, unless additionally negotiated into the contract.

o. The negotiated NTE fully-loaded hourly labor rates apply only to the labor categories specified in Section J’s Attachment 1. Any additional labor categories will be specified and their associated labor rates will be negotiated at the IDIQ level or task order level. Additional labor categories and associated labor rates negotiated for an individual task order will apply only to that task order, unless additionally negotiated into the contract.

Any additional labor category specified at the task order level may have a description that falls within the broad description of a contract-specified labor category description. In such a case, the IDIQ contractor shall propose, for the contemplated task order, the contract-specified labor category that corresponds to the task order-specified labor category, and a fully-loaded hourly labor rate(s) that does not exceed the respective NTE fully-loaded hourly labor rate(s) previously negotiated for the contract-specified category. For example, the description for a task order-specified Program Manager may fall within the broad description of the contract-specified Business Integration Manager 1.

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

q. The negotiated NTE fully-loaded hourly labor rates are based on 1,880 normal productive hours per year. In the rare case when such individuals are performing OCONUS for a given task order on a non-TDY basis and the normal productive hours per year differ from 1,880, the NTE fully-loaded hourly labor rates applicable to the given task order shall replace the negotiated rates (i.e., those negotiated in Section J’s Attachment 1) and shall be calculated as follows:

1) NTE fully-loaded hourly labor rate negotiated in Section J’s Attachment 1 x 1,880 hours = X

2) X divided by normal productive hours per year for task order = Y

3) Y = NTE fully-loaded hourly labor rate applicable to the given task order

B.5 PROVISIONAL BILLING INDIRECT COST RATES

a. This section applies to arrangements (i.e., task orders or line items in a task order) when payment is made based on actual costs incurred (e.g., type in cost-reimbursement category, materials portion of time-and-materials type, fixed-price incentive types, and any progress payments based on costs under the firm-fixed-price type).

b. The following table displays the negotiated provisional billing indirect cost rates:

Indirect Cost Rate Description Negotiated Provisional Billing Indirect Cost Rate

Allocation Base

Contractor Fiscal Year Period

To be inserted at IDIQ award

c. The Contractor may recover allowable indirect costs if such costs are consistent with the FAR [e.g., FAR 31.109(h)(13), FAR 31.110(b), and FAR subparts 31.2 and 42.7], and the Contractor’s established or disclosed cost accounting practices.

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, establishment 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. In such a case, the provisional billing indirect cost rates shall match the respective rates established by the CFAO [e.g., in a provisional billing rate (PBR) letter, forward pricing rate agreement (FPRA), or forward pricing rate recommendation (FPRR) (normally in the form of a letter or memorandum) – see Section B.5(j)], and the ceiling indirect cost rates shall not exceed 10% of the respective provisional billing indirect cost rates (e.g. provisional rate of 5.0%, ceiling rate shall not exceed 5.5%).

g. If any revised billing indirect cost rate or final indirect cost rate established by the Contractor’s CFAO exceeds this contract’s respective ceiling indirect cost rate (see Section B.6), the Contractor shall be reimbursed at the contract’s ceiling indirect cost rate.

h. The Contractor shall make no change to its established 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.

j. Examples of documentation showing the CFAO’s establishment of provisional billing or revised billing indirect cost rates, as it relates to Sections B.5(e), (f), (g), and (k), are PBR letters, FPRAs, and FPRRs. The Contracting Officer may modify unilaterally, as frequently as such documents are issued, Section B.5(b) to incorporate the PBR, FPRA, or FPRR rates, for all fiscal years identified in the applicable document. If the contract expiration date, plus the six-month option to extend period, is later than the last fiscal year in the applicable document, the rates in the last fiscal year in the applicable document will be extended through the six-month option to extend period in Section B.5(b). Where the date of at least two documents matches, the order of precedence shall be: 1) PBR letter for its effective period only, 2) FPRA for all periods subsequent to the PBR letter’s effective period, and 3) FPRR for all periods subsequent to the PBR letter’s effective period. The rates in Section B.5(b) will not exceed the ceiling rates in Section B.6(b).

k. If the Contractor’s CFAO has established, in writing, provisional billing indirect cost rates for any additional indirect cost rate descriptions, or revised billing indirect cost rates for any existing indirect cost rate descriptions, such rates will apply, subject to the ceiling indirect cost rates in Section B.6(b), even if the contract has not yet been modified to include these rates.

l. Modification proposals (e.g., requests for equitable adjustment) shall be priced with the rates in the documents according to the following order of precedence: 1) FPRA for its effective period, 2) FPRR for its effective period, and 3) PBR letter for its effective period. However, if the modification expiration date, plus any six-month option to extend period, is later than the last fiscal year in the applicable document, the rates in the last fiscal year in the applicable document shall be proposed through the modification expiration date, plus any six-month option to extend period. The proposed rates shall not exceed the ceiling rates in Section B.6(b).

B.6 CEILING INDIRECT COST RATES

a. This section applies to arrangements (i.e., task orders or line items in a task order) when payment is made based on actual costs incurred (e.g., type in cost-reimbursement category, materials portion of time-and-materials type, fixed-price incentive types, and any progress payments based on costs under the firm-fixed-price type).

b. The following table displays the negotiated ceiling indirect cost rates:

Allocation Base Contractor Fiscal Year Period

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.5(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.7 TRAVEL COSTS

a. Travel under this contract is defined as Contractor air and ground transportation, lodging, meals and incidental expenses (M&IE), and passport and visa costs. The Government will pay for travel only when it requires it.

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. Travel costs are authorized for travel beyond a 50-miles’ radius of the Contractor employee’s local place of performance (official duty station) whenever work is required to be accomplished at a remote work site.

d. Local travel shall be processed as follows:

1. If the Government requires a Contractor employee to work an entire normal work day at a site other than the employee’s local place of performance (official duty station) and the radius between the two locations is within 50 miles, travel costs are generally allowable, but only for any difference in costs between the employee’s normal daily commuting expense and commuting expense resulting from the most economical means of transportation available to the employee after considering: any physical or medical needs of the employee; and mission requirements.

Payment for time associated with such travel is unallowable.

2. If the Government requires a Contractor employee to work part of a normal work day at a site other than the Contractor employee’s local place of performance (official duty station) and the radius between the two locations is within 50 miles, all travel costs are generally allowable, but only for those costs resulting from the most economical means of transportation available to the employee after considering: any physical or medical needs of the employee; and mission requirements.

For this section, “part of a normal work day” is one in which the employee arrives at the start of his normal work day to his local place of performance (official duty station) and departs at the end of his normal work day from his local place of performance (official duty station). An example is an employee having to attend a meeting at a Department of State site in the middle of the work day.

Payment for time associated with such travel is generally allowable as long as such time is counted as part of the employee’s normal work day.

3. If the Government requires a Contractor employee to work part of a normal work day at a site other than the employee’s local place of performance (official duty station) and the radius between the two locations is within 50 miles, travel costs are generally allowable, but only for any difference in costs between the employee’s normal daily commuting expense and commuting expense resulting from the most economical means of transportation available to the employee, after considering: any physical or medical needs of the employee; and mission requirements.

For this section, “part of a normal work day” is only one of the following:

a) one in which the employee arrives at the start of his normal work day to his local place of performance (official duty station); or

b) one in which the employee departs at the end of his normal work day from his local place of performance (official duty station).

An example is an employee having to attend an all-morning local meeting and returning afterwards to his local place of performance (official duty station).

Payment for time associated with going from the employee’s local place of performance (official duty station) to a site other than the employee’s local place of performance (official duty station) is generally allowable as long as such time is counted as part of the employee’s normal work day.

Payment for time associated with returning from a site other than the employee’s local place of performance (official duty station) to the employee’s local place of performance (official duty station) is generally allowable as long as such time is counted as part of the employee’s normal work day.

e. No travel costs (or associated labor time during travel) shall be allowable for regular commuting or telecommuting beyond (or within) a 50-miles’ radius of the Contractor’s local place of performance (official duty station).

f. Costs when using a privately owned vehicle (POV) for official travel are allowable provided that such costs do not exceed costs that would have resulted from use of other reasonable transportation methods (e.g., taxi, airplane, train). Reasonable associated costs, such as tolls and parking fees, are also generally allowable.

g. When traveling in a POV for official travel, the Contractor shall be paid mileage costs at a rate that does not exceed the POV mileage rate established by the Internal Revenue Service.

h. Costs for car rentals for official travel are allowable pursuant to the following:

1. such rentals are consistent with good business practice;

2. such costs do not exceed costs that would have resulted from use of other reasonable transportation methods (e.g., taxi, airplane, train); and

3. such costs do not exceed the actual cost of renting a compact automobile (maximum of one automobile for four Contractor personnel), unless extenuating circumstances (e.g., excess baggage) require other arrangements and Contracting Officer approval is obtained.

Reasonable associated costs, such as tolls and parking fees, are also generally allowable.

i. The Government will pay the Contractor, under the applicable labor category CLIN(s), for each Contractor employee’s travel time to or from authorized work locations as long as the following are met:

1. Payment of travel time described herein is in accordance with the Contractor’s established travel policy.

2. Travel time begins no earlier than two (2) hours prior to the scheduled departure time and concludes upon arrival to the initial destination point (e.g., airport) at the place of performance.

3. The Government will not pay for a Contractor employee’s time spent in layovers that are for the convenience of the Contractor employee or Contractor.

4. The Government will not pay more than eight (8) hours per day per Contractor employee for travel time.

5. The Government will not pay for a Contractor employee’s travel time that is outside the employee’s regular working hours.

6. The Government will not pay for a Contractor employee more than the number of hours in the employee’s normal workweek. “Number of hours” includes productive time hours, travel time hours, and paid time off hours (e.g., sick, vacation, holiday).

7. “Productive time hours” consist of hours that, other than travel time hours, directly benefit the contract.

8. Exceptions must be authorized in advance and in writing by the Contracting Officer.

j. Costs for travel that has been modified or cancelled are not allowable unless such modification or cancellation was caused by the Government or otherwise beyond the control of the Contractor.

k. 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, but the Contractor shall pro-rate equitably such costs if they will benefit cost objectives (e.g., contracts) other than this cost objective.

4. 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.

5. The Government will not reimburse the Contractor for the use of private visa procurement services provided by a third party unless prior written approval was obtained by the Contracting Officer. When requesting written approval, the Contractor shall submit a cost-benefit analysis to the Contracting Officer.

l. Pursuant to FAR 47.402 (Policy), FAR 47.403 (Guidelines for Implementation of the Fly America Act), and the Fly America Act, the Contractor shall use a U.S.-flag air carrier service unless an exception exists. If such conditions exist under a fixed-price arrangement (i.e., task order or line item in a task order), the Contractor shall submit with its task order proposal a memorandum explaining why it does not intend to use a U.S.-flag air carrier service. Inclusion of such costs in the awarded fixed-price is contingent upon Government acceptance of such explanation.

If such conditions exist under arrangements when payment is made based on actual costs incurred (e.g., type in cost-reimbursement category, materials portion of time-and-materials type, any progress payments based on costs under firm-fixed-price type, fixed-price incentive types), the Contractor shall submit with its voucher a memorandum explaining why it did not use a U.S.-flag air carrier service. Reimbursement is contingent upon Government acceptance of such explanation.

B.8 POST HARDSHIP DIFFERENTIAL PAY AND DANGER PAY

Post Hardship Differential Pay and Danger Pay, which are forms of incentive compensation, will be generally allowable and allocated separately as an ODC (other direct cost) at the task order level. 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).

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 for a given workweek for an eligible employee will not exceed the dollar amount resulting from multiplying the applicable DSSR percentage by the employee’s basic compensation for the given workweek.

h. The applicable DSSR percentage will be the DSSR percentage effective at the time of task order proposal(s) (or upon task order award if feasible) under fixed-price arrangements (i.e., task orders or line items in a task order).

i. The applicable DSSR percentage will be the DSSR percentage effective at the time of task order performance for arrangements when payment is made based on actual costs incurred (e.g., type in cost-reimbursement category, materials portion of time-and-materials type, any progress payments based on costs under firm-fixed-price type, fixed-price incentive types).

j. An eligible employee’s basic compensation for a given workweek is the dollar amount attributable to the employee as a result of the employee’s productive hours and paid time off (e.g., sick, vacation, holiday) hours for the given workweek. It is the employee’s base salary/unloaded compensation for the given workweek. However, such compensation must:

1. benefit the task order; and/or

2. be an equitable amount that is necessary to support the overall operation of the business, although a direct relationship to any particular cost objective (e.g., task order) cannot be shown.

k. The number of hours included in an eligible employee’s basic compensation for a given workweek cannot exceed the number of hours for the task order’s normal workweek.

l. Basic compensation included in the fixed-price under fixed-price arrangements will consist of each eligible employee’s negotiated base salary/unloaded compensation for the task order period of performance.

m. Basic compensation will consist of actual incurred base salary/unloaded compensation for arrangements when payment is made based on actual costs incurred (e.g., type in cost-reimbursement category, materials portion of time-and-materials type, any progress payments based on costs under firm-fixed-price type, fixed-price incentive types).

n. An eligible employee may receive Post Hardship Differential Pay and Danger Pay during paid time off only when the employee takes paid time off in the task order place of performance or in another Post Hardship Differential Pay and Danger Pay area, respectively.

o. When an eligible employee takes paid time off in another Post Hardship Differential Pay and/or Danger Pay area, payment will be based on the applicable DSSR percentage(s) for the task order place of performance.

p. Payment of Post Hardship Differential Pay for an eligible employee will not commence until the eligible employee has served 42 calendar days in the task order place of performance. Payment will commence on the first productive or non-productive day after day 42, and will not be retroactive to days previously served unless paragraph “q” immediately below applies. The 42 calendar days are not required to be consecutive, and “served” consists of productive time, paid time off, and time otherwise spent in the task order place of performance.

q. Once an eligible employee has served 42 calendar days in the task order place of performance, payment of Post Hardship Differential Pay will be retroactive to day 1 served in the task order place of performance if the task order place of performance is in an area identified in Footnote N in the Post Classification and Payment Tables in Section 920 of the DSSR. Currently, Afghanistan, Iraq, and Syria are the only such areas.

r. Payment of Post Hardship Differential Pay for an eligible employee will conclude when the eligible employee departs the task order place of performance, unless such departure is to another Post Hardship Differential Pay area during paid time off.

s. For Post Hardship Differential Pay, when an eligible employee has not yet served 42 calendar days and returns to the task order place of performance after an absence from the task order place of performance, the number of days served resumes on the day of return. For example, if an eligible employee served 30 calendar days in the task order place of performance and departed the task order place of performance for 14 days, the day of return (day 44) will be considered day 31 of days served.

t. Payment of Danger Pay for an eligible employee will commence on the day of arrival in the task order place of performance and conclude on the day of departure from the task order place of performance, unless such departure is to another Danger Pay area during paid time off.

B.9 DEFENSE BASE ACT (DBA) INSURANCE

a. DBA insurance is required when the Defense Base Act applies [see FAR 28.305 (Overseas Workers’ Compensation and War-Hazard Insurance)], which includes all open procurements above the micro-purchase threshold providing workers overseas.

b. DBA Insurance costs shall be allocated separately as an ODC at the task order level.

c. DBA Insurance costs are unallowable for performance in the United States.

d. When DBA Insurance is required, its costs are generally allowable, but only for covered Contractor and subcontractor employees. The following are covered Contractor and subcontractor employees:

1. United States citizens or residents;

2. Individuals hired in the United States or its possessions, regardless of citizenship; and

3. Local nationals (LNs) and third country nationals (TCNs) unless the DBA insurance requirement for these employees has been waived by the U.S. Department of Labor. Refer to https://www.dol.gov/owcp/dlhwc/dbawaivers/dbawaivers.htm for a listing, by location, of applicable DBA waivers and conditions.

Note 1: Department of Labor waivers do not apply to the individuals identified under “1” and “2” above.

Note 2: The Department of Labor waiver is valid only if alternative worker’s compensation benefits are provided to the waived employees pursuant to applicable local law. If there are no local worker’s compensation laws, the waiver has no effect, and LNs and TCNs (if applicable by local law) shall be included and covered under the DBA.

e. DBA Insurance costs shall accord with the terms of the Contractor’s DBA Insurance policy, law, and regulation.

f. The Contractor’s DBA Insurance policy shall be with a carrier approved by the United States Department of Labor to provide DBA Insurance, or the Contractor shall be a self-insured employer authorized by the United States Department of Labor to provide DBA Insurance. A list of Department of Labor approved carriers may be found at http://www.dol.gov/owcp/dlhwc/lscarrier.htm.

g. The Contractor shall submit, to the Contracting Officer and COR, evidence of DBA insurance at the task order level, in advance of personnel travel. If there is a Department of Labor waiver for the travel destination, the Contractor shall provide written notification to this effect to the Contracting Officer and COR.

h. The clause at FAR 52.228-3 [Workers’ Compensation Insurance (Defense Base Act)] applies when the Defense Base Act applies. See FAR 28.305 (Overseas Workers Compensation and War-Hazard Insurance).

i. The clause at FAR 52.228-4 (Workers’ Compensation and War-Hazard Insurance Overseas) applies when the Secretary of Labor waives the applicability of the Defense Base Act with respect to any contract, subcontract, work location, or classification of employees upon the written request of the head of any department or other agency of the United States. See FAR 28.305(d) (Overseas Workers Compensation and War-Hazard Insurance).

B.10 OVERTIME

a. The Contractor agrees to perform this contract, so far as practicable, without using overtime, 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. Overtime is defined as time worked in excess of the number of hours in a normal workweek.

c. A normal workweek is defined as the number of hours per week the Government requires for routine performance at the task order place of performance, or the number of hours per week an employee normally works at regular/straight-time compensation at the task order place of performance.

d. “Number of hours” includes productive time hours, travel time hours, and paid time off hours (e.g., sick, vacation, holiday).

e. “Productive time hours” consist of hours that, other than travel time hours, directly benefit the contract.

f. “Travel time hours” consist of hours spent by the employee traveling to or from authorized work locations. See Section B.7(i) for further information.

g. For fixed-price arrangements (i.e., task orders or line items in a task order), the Government will not pay for overtime beyond the fixed price negotiated in the task order. The only potential exception is when the Government’s fixed-price requirements change. In such a case, the Government will communicate such change pursuant to FAR 52.243-1 (Changes – Fixed-Price) and will consider any proposed overtime costs as part of a subsequent request for equitable adjustment.

h. The following applies to cost-reimbursement arrangements and the materials portion of time-and-materials arrangements (task orders or line items in a task order):

1. Government payment for overtime must be authorized in advance of any Contractor employee’s performance of overtime and in writing by the Contracting Officer when the Contractor requests an overtime premium cost that exceeds $0.00. Such request shall be submitted in writing to the Contracting Officer and shall address each item under FAR 52.222-2(b) (Payment for Overtime Premiums).

2. Evidence showing the Contracting Officer’s approval shall be sent with each invoice on which overtime containing a premium cost that exceeds $0.00 is being billed.

3. Advance Government authorization for any Contractor employee’s performance of overtime is not required when the overtime premium cost does not exceed $0.00.

4. Unless advance authorization has been granted pursuant to Section B.10(h)(1), any Government payment for Contractor employee overtime will be made at the actual incurred straight-time hourly labor rate that the Contractor pays the Contractor employee and determined allowable by the Contracting Officer, pursuant to FAR 31.201-2 (Determining Allowability).

5. Government payment for overtime must not conflict with any Contractor uncompensated overtime policy or practice. If the Contractor has such a policy or practice, the Government will not compensate the Contractor for overtime costs in accordance with such policy or practice.

i. The following applies to labor-hour arrangements and the time portion of time-and-materials arrangements (task orders or line items in a task order):

1. Government payment for overtime will be made at fully-loaded hourly labor rates that do not exceed the fixed fully-loaded hourly labor rates negotiated in the task order.

2. Government payment of overtime will be made only if the Contractor compensates the Contractor employee for the employee’s overtime performance. Contractor payment for each overtime hour shall be, at a minimum, at the regular hourly labor rate that the employee normally receives for normal workweek performance.

3. Advance Government authorization for any Contractor employee’s performance of overtime is not required.

B.11 NOT-TO-EXCEED (NTE) PROFIT PERCENTAGES

a. In order to avoid the cost-plus-a-percentage-of-cost system of contracting [see FAR 16.102(c) (Policies)], this section applies only prior to task order performance or prior to any modification performance. Thus, the percentages negotiated herein (or discounts to such percentages) shall be applied only to proposed/estimated costs and never to actual incurred costs.

b. This section applies when profit is an applicable element (e.g., under fixed-price, labor-hour, and time portion of time-and-materials arrangements) and when:

1. proposing and negotiating new cost elements (e.g., new labor categories and other direct costs) in the contract or task order; and/or

2. changes (i.e., additions and/or deletions) in negotiated contract or task order pricing occur.

c. Examples of this section’s applicability are when proposing and negotiating:

1. fully-loaded hourly labor rates for labor categories not already identified in the contract or task order;

2. fixed-price task orders;

3. fixed-price line items in a task order; and/or

4. equitable adjustments under fixed-price task orders or line items in a task order.

d. The following are the negotiated NTE profit percentage(s):

Base Year: To be inserted at IDIQ award 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:

Six-Month Option to Extend (see FAR 52.217-8):

B.12 NOT-TO-EXCEED (NTE) FEE PERCENTAGES

a. In order to avoid the cost-plus-a-percentage-of-cost system of contracting [see FAR 16.102(c) (Policies)], this section applies only prior to task order performance or prior to any modification performance. Thus, the percentages negotiated herein (or discounts to such percentages) shall be applied only to proposed/estimated costs and never to actual incurred costs.

b. This section applies when fee is an applicable element and when:

1. `proposing and negotiating cost elements already identified in the contract (e.g., existing labor categories and other direct costs);

2. proposing and negotiating new cost elements (e.g., new labor categories and other direct costs) in a task order; and/or

3. changes (i.e., additions and/or deletions) in negotiated task order pricing occur.

c. Examples of this section’s applicability are when proposing and negotiating:

1. the award fee portion, if applicable, of firm-fixed-price task orders; the fixed fee portion of cost-plus-fixed-fee task orders; and the award fee portion of cost-plus-award-fee task orders;

2. the award fee portion, if applicable, of firm-fixed-price line items in a task order; the fixed fee portion of cost-plus-fixed-fee line items in a task order; and the award fee portion of cost-plus-award-fee line items in a task order; and/or

3. equitable adjustments to the: award fee portion, if applicable, of firm-fixed-price task orders or line items in a task order; fixed fee portion of cost-plus-fixed-fee task orders or line items in a task order; and award fee portion of cost-plus-award-fee task orders or line items in a task order.

Note 1: For cost-plus-award-fee task orders or line items in a task order, the percentages negotiated herein (or discounts to such percentages) shall apply to the proposed award fee, not the base fee.

Note 2: For cost-plus-award-fee task orders or line items in a task order, the base fee shall be $0.00, unless otherwise stipulated in the task order solicitation or task order.

d. The following are the negotiated NTE fee percentage(s):

Base Year: To be inserted at IDIQ award 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:

Six-Month Option to Extend (see FAR 52.217-8):

B.13 FIXED FEE

a. This section applies to cost-plus-fixed-fee task orders or cost-plus-fixed-fee line items in a task order.

b. If, pursuant to FAR 16.306(a) (Cost-Plus-Fixed-Fee Contracts), changes in the work to be performed under the task order or cost-plus-fixed-fee line item(s) occur [pursuant to FAR 52.243-2 (Changes – Cost-Reimbursement)], the Government and Contractor will adjust the negotiated fixed fee by multiplying the fee percentage in the task order to the sum of the new estimated direct costs and applicable indirect costs.

In such a case, applicable indirect costs will be calculated by multiplying the negotiated applicable provisional billing indirect cost rates (or established revised billing rates or final indirect cost rates, subject to negotiated ceiling indirect cost rates – see Sections B.5 and B.6) by the new estimated costs whose elements are included in the respective allocation bases identified in Sections B.5 and B.6.

c. Unless otherwise stipulated in the task order, the negotiated fixed fee for each performance period will be paid in monthly installments by dividing the negotiated fixed fee for the performance period by the number of months in the performance period, minus the applicable withholding of a fixed fee reserve pursuant to FAR 52.216-8(b) (Fixed Fee).

However, full monthly payment is contingent upon the Contractor meeting the acceptable quality levels, measurable performance standards, or…