Attachment D Questions with Answers.pdf

Page # RFP Section Reference

Question Answer

6 B.2, Price/Cost Schedule

Please confirm our understanding that offerors may propose to deliver a quantity of .5 FTL (3,456 flags), 1 FTL (6,912 flags), and/or 1.5 FTLs (10,368 flags) per month, but not more than

1.5 FTL per month, exclusive of the Optional CLINs (0002, 1002, 2002, 3002 and 4002).

Correct. Offerors may propose quatitiies in intervals of .5 FTL, 1 FTL, and 1.5 FTL.

6 B.2, Price/Cost Schedule

Please confirm our understanding that the maximum quantity of flags that the Government is soliciting per offeror, exclusive of the Optional CLINS (0002, 1002, 2002, 3002, and 4002), is 124,416 flags per year (10,368 x 12) or 622,080 flags (124,416 x 5) for the five-year term of the contract.

Page 47 of the solicitation states that a total of 1,347,840 (Required and Optional Quantities) will be awarded under this solicitation. Required quantity is 1,244,160 and Optional Quantity is 103,680. Please refer to Section E.2 for the factors determining individual contract award: "Contractors shall be awarded a quantity of flags based upon ...".

6 B.2, Price/Cost Schedule

If the Offeror can manufacture/deliver more than 124,416 flags per year, may we offer to supply additional quantities to the Government under this solicitation without prejudicing our bid, and will that offer be considered?

The Government anticipates award to a minimum of two offerors that, which combined, could provide the required number of flags under this soliciation. However, Offerors may provide two separate offers/proposals (one of which may be the maximum the contractor could provide). Any offer shall utilize the Attachment A delivery schedule, per the solicitation, utilizing the CLINs in increments of .5, 1, 1.5

FTL.

47 E.2 The solicitation states that “[a] maximum quantity of 1,347,840 burial flags (required and optional quantities) shall be awarded as a result of this solicitation.” How was this total amount determined?

Flags quantites were determined by the program office/requiring activity based on expected supply demands in accordance with the Veterans Benefits Administration (VBA) as the burial flag is an entitlement (refer to Section B.4)

47 E.2 The Government’s procurement strategy seems to be constructed in a manner that will drive up the prices it will pay for the flags given that unit prices associated with a contract to supply .5 FTLs per month (3,456) will necessarily be higher than the price to supply 1.5 FTLs (19,368 flags) or more per month. Has the Government considered making a true IDIQ award under which it will place orders to the offeror/manufacturer that provides the best price and delivery schedule for the flags while reserving the right to place additional orders to alternate suppliers in the event delivery or performance delays are experienced?

The type of contract for this soliciation was selected in accordance with the FAR 16.502 Definite-quantity contracts, for a definite quantity of specific supplies (high level of specificity as required by statute) or services for a fixed period. Prices not determined to be fair and reasonable will not be eligible for award.

10 B.3 Re the statement that “the Delivery Schedule shall be incorporated into the contract at the time of award,” please confirm our understanding that the delivery schedule established at the contract award will be consistent with the delivery schedule proposed by the offeror.

Please refer to Section E.2 for the factors determining individual contract award: "Contractors shall be awarded a quantity of flags based upon ...". Per the solicitation, the Government may engage in discussions (refer to Section E.3 C) if VA determines to award a quantity that differs from the offer.

26 C.3 The clause at FAR 52.219-4, Notice of Price Evaluation for HUBZone Small Business Concerns (SEP 2021) is checked.

This clause entitles a HUBZone small business offeror/manufacturer to receive a 10% price evaluation preference when competing against large business manufacturers under unrestricted procurement. Yet on page 55, the VA proposes to provide a 20% price evaluation preference for SDVOSB concerns and a 10% price evaluation preference for VOSB concerns, regardless of whether they supply the product of a small business manufacturer or a large business. This latter preference negates (or in the case of an SDVOSB distributor supersedes) the evaluation preference that HUBZone manufacturers are entitled to receive on unrestricted procurement where they are competing with large business manufacturers. Consequently, the Veteran Evaluation Preferences provided on Page 55 should either be deleted or VOSB offeror is proposing to supply the product of a small business manufacturer.

Under this solicitation, a HUBZone entity is provided a 10% price preference IAW FAR 52.219-4 unless the entity waives that preference; a VOSB recieves a 10% price preference; and an SDVOSB a 20% price preference. If an entity is both a HUBZone and a Veteran-Owned entity, both preferences shall be applied (added together, for example:

20% SDVOSB + 10% HUBZone = 30% total price preference).

26 C.3 The clause at FAR 52.219-9, Small Business Subcontracting Plan, is not checked. Why is there no requirement for small business subcontracting plans under this procurement to enhance opportunities for small business manufacturers as subcontractors? See FAR 19.702.

The clause at FAR 52.219-9 has been checked (please refer to Solicitation Amendment 0001).

35 C.8 & C.9 The RFP contains two clauses wherein the Government may require delivery of increased quantities – Section C.8, Option for Increase Quantity, and Section C.9, Option for Increased Quantity – Separately Priced Item. Please confirm that the Clause in Section C.9 applies solely to the unit prices proposed by the offeror under Optional CLINs 0002, 1002, 2002, 3002, and 4002, and is not an option separate and apart from those CLINs.

Correct; FAR clause 52.217-7 (Section C.9) applies to the optional CLINs.

35 C.8 Regarding the clause in Section C.8, Option for Increased Quantity, this appears to be an additional option available to the Government to increase quantities beyond those priced under the Schedule in Section B.2. Please confirm this understanding and clarify the following:

Correct; FAR clause 52.217-6 (Section C.8) allows for increased quantities beyond the contract delivery schedule.

(a) What unit prices apply to these increased quantities?

(b) In light of the fact that the maximum order quantity under Section C.6 is listed as “TBD,” what limits apply to such increased quantities?

a) Per the clause, pricing is "at the unit price specified Delivery of the added items shall continue at the same rate as the like items".

b) The maximum order quantity for a single item shall be congruent with the offeror's delivery schedule, not to exceed the offeror's proposed maximum monthly quantity. The maximum order quantity for a combination of items shall not exceed the offeror's proposed maximum monthly quantity plus one additional proposed maximum monthly quantity per order.

35 C.8 & C.9 Under the clauses at C.8 and C.9, the Government states that the options may be exercised “within 90 days.” Please clarify what this means, i.e., within 90 days of what date or time frame?

Within 90 days of a contract modification executed either for the Optional CLIN IAW Section C.8 or for the Increased Quantities IAW Section C.9.

51 E.2 Regarding the requirements for Volume III, Manufacturing Source, what information is required to be furnished in this volume if the offeror is a manufacturer of the burial flags?

A statement asserting that the offeror is the manufacturer.

The vendor's UEI will be verified by VA in SAM for the solicitation NAICS code.

51 E.2 Regarding the requirements for Volume III, Manufacturing Source, if an offeror proposes to obtain flags from a single manufacturer that utilizes more than one manufacturing facility to produce the burial flags, may each facility deemed a separate manufacturing source?

The offeror submitting the proposal shall identify its Unique Entity Identifer (UEI) assigned by the System for Award Management (SAM); the UEI is the offeror/proposer for the solicitation. If the offeror is not a manufacturer, but is a distributor, that offeror/distributor shall provide the Authorized Distributor Letter, which identifies the manufacturer. That manufacturer shall be construed by VA as a single manufacturing source, regardless of its manufacturing processes, facility locations, number of facility locations, suppliers, etc.

52 E.2 The solicitation appears to require Offerors to complete and submit Attachment B with their pricing proposal. Attachment B is requesting or requiring offerors to detail the Offeror's cost elements (including their indirect costs) that support their proposed unit prices. FAR 15.404-1(b)(1) states that “Contracting officers shall obtain data other than certified cost or pricing data from the offeror or contractor for all acquisitions (including commercial acquisitions) if that is the contracting officer’s only means to determine the price to be fair and reasonable.” Given that this is a competitive procurement, doesn't price competition serve as the basis for assessing price reasonableness? If yes, the requirement to submit Attachment B does not appear to be appropriate given the nature of the procurement. May the offeror decline to submit this information without prejudicing the acceptability of its

The VA is awarding Firm-Fixed Price with Economic Price Adjustment (FFP EPA) contracts as a result of this solicitation. Please refer to the solicitation C.4 52.216-4 Economic Price Adjustment-Labor and Material (Jan 2017).

In accordance with FAR Clause 52.216-4 as provided in the soliciation, future price adjustments may be made based on economic conditions. Per the clause, these elements are therefore required to establish pricing for the contract. The offeror may not decline to provide this information as it is required for the FFP EPA contract.

53 E.3 The Government appears to be seeking to restrict awards to proven manufacturers of the burial flags to a limited quantity not to exceed 1.5 FTL per month even though its entire requirements exceed that quantity. Has the Government prepared and completed an authorized determination and finding to so restrict contract awards to certain offerors as required by FAR Part 6? If so, please publicly disseminate that determination and finding.

The governement is not restricting this contract to "proven manufacturers" or "certain offerors"; any manufacturer or distributor may propose for this solicitaiton and provide samples for F.A.T. First Article Testing in support of this soliciation. The Government anticipates awarding 2 to 5 contracts under this RFP; the contractor may propose any number of flags in increments of .5, 1, 1.5 FTLs utilizing the CLINs provided (refer also to cell D4 above).

56 E.3 The Government states that it will evalaute price reasonableness based on based upon market conditions in effect at the time of the solicitation for labor and material. Does that mean the Government believes that price competition will not be present and that price reasonableness would then be determined without regard to the pricing submitted in response to the RFP? Why assume that there will not be effective price competition for the procurement?

The Government evaluates price in accordance with the Federal Acquisition Regulation (FAR) 15.404-1 Proposal Analysis Techniques:

"The contracting officer is responsible for evaluating the reasonableness of the offered prices. The analytical techniques and procedures described in this subsection may be used, singly or in combination with others, to ensure that the final price is fair and reasonable. The complexity and circumstances of each acquisition should determine the level of detail of the analysis required."

53 E.3 Is the Government currently procuring and does it intend to continue to procure burial flags from AbilityOne suppliers separate and apart from this procurement?

Yes. This solicitation is for 50% of the VA's flag requirement IAW FAR Parts 12 and 15 (refer to solicitation Section B.1);

the Government is soliciting 1,347,840 flags under this solicitation.

53 E.3 Will AbilityOne suppliers be eligible to submit offers under this procurement?

No.

53 E.3 Will AbilityOne suppliers be eligible to serve as manufacturing sources under this procurement?

No.

53 E.3 How will the VA ensure that AbilityOne suppliers are not being provided an unfair pricing advantage under this solicitation by proposing higher than market prices under the procurements reserved for AbilityOne suppliers, thereby enabling them to subsidize and reduce their pricing under this solicitation?

Not applicable; refer to cells D20, D21 above.

1 General Given that the VA has previously procured the Burial Flags under contracts that were set aside for SDVOSB suppliers, what is the VA’s rationale for not utilizing an SDVOSB set aside for this procurement as contemplated by VAAR 819.7005?

When conducted as full and open, distributors to include VOSB and SDVOSBs may provide flags from any size manufacturer; this, essentially increases the opportunity for participation in the solicitation. VA requires diversification of manufacturing sources (or distributors of varying manufacturing sources) per the solicitation to reduce schedule and performance risk for this VBA entitlement.

1 General What is the VA’s rationale for not utilizing a tiered evaluation of offers as directed by VA Procurement Policy Memorandum 2018-4?

VA Procurement Policy Memorandum 2018-4 does not apply to full and open solicitations; additionally, per paragraph 3 of the Memorandum, "the use of tiered evaluations is not mandatory".

1 General Please provide the VA Form 2268 supporting the Government’s determination to: (a) Not set aside this procurement for SDVOSB or VOSB concerns; and (b) Not provided a tiered evaluation of offers with a preference for contracts with SDVOSB or VOSB concerns.

This Q&A has addressed these questions. Please refer to cells D23 and D24.

1 General Has the VA experienced any meaningful disruptions in the supply of burial flags by SDVOSB distributors, even during the pandemic?

Per the solicitation Section E.2 A, "The diversification of a manufacturing base is essential to ensure a consistent flag supply within Federal CID Specifications. In addition to the COVID-19 Pandemic which has threatened supply chain integrity, this and other potential disasters can derail flag production. As a result, it is in the best interest of VA to diversify its manufacturing base, ensuring awards to multiple manufacturers (and/or distributors of multiple manufacturers)."

4 & 6 B.1 & B.2 The solicitation states the date range of the contract is 11/1/22

– 10/31/23, but on page 6 it states the term is 12/1/22 – 11/20/22. Please confirm which is correct.

Page 4 has been updated to reflect an anticipated contract base period of 12/1/22 - 11/30/23.

4 & 6 B.1 & B.2 The solicitation seems to contemplate that deliveries for each Option Year shall commence in December of the year following the option exercise. How will the Government ensure that their option exercise is issued timely to support that delivery schedule?

Refer to the Solicitation FAR Clause 52.217-9, which states that the Government may extend the contract 90 days prior to expiration via modification, provided that the Government provides notice of intent 120 days prior to expiration.

17 SOW, 3.2 Please confirm that First Article waivers are available to prior manufacturers of the burial flag that have supplied product to the VA via a distributor.

Yes, confirmed.

37 C.12 The solicitation contains the clause at FAR 52.247-29, FOB Origin even though the current contracts for the burial flags have been awarded on a FOB Destination basis and even though all the deliveries go to the same Government destination, which makes the cost of freight to the Government’s facility readily determinable. What is the purpose of specifying FOB Origin and not FOB Destination? We are concerned that flag shipments may be delayed, causing payment delays, because of delays associated with receiving Government bills of lading.

The FOB Origin requirement has been removed from the Solicitation (refer to solicitation Amendment 1).

37 C.12 How and where will the Government perform inspection and acceptance of the flags given the FOB Origin terms? Will distributors of the burial flags need to arrange for an inspection of the flag at the manufacturing source?

The FOB Origin requirement has been removed from the Solicitation (refer to solicitation Amendment 1).

52 E.2 Please confirm that an offer by an SDVOSB distributor will, in all cases, receive a 20% price preference.

Per the solicitation, a VIP-certified SDVOSB shall receive the stated price preference.

53 E.2 The requirement to complete Attachment B and disclose cost information related to the unit pricing of commercial items may deter manufacturers from competing for this procurement, which is contrary to the Government’s stated goal of obtaining additional manufacturing sources. Why is this requirement being imposed as it has not been required in the past?

The VA is awarding Firm-Fixed Price with Economic Price Adjustment (FFP EPA) contracts as a result of this solicitation. Please refer to the solicitation C.4 52.216-4 Economic Price Adjustment-Labor and Material (Jan 2017).

In accordance with FAR Clause 52.216-4 as provided in the soliciation, future price adjustments may be made based on economic conditions. Per the clause, these elements are therefore required to establish pricing for the contract.