Questions_and_Answers_-_47PM0618R0010_-_6-8-2018.doc

Questions and Answers

47PM0618R0010

Q.1) INDEMNIFICATION: The solicitation under Section H.3 (Page H-3), requires that the indemnification as outlined in this paragraph shall also apply even though the injury, death or damage may have been caused by the negligence of the Government. This requirement conflicts with FAR Subpart 28.3, (Insurance) and the factors that must be considered when determining insurance coverage. We have been advised by our insurer that coverage that exonerates an additional insured (the GSA) who is negligent is outside of their underwriting capabilities. They further advise it will be completely outside the insurance capabilities of any subcontractors. Finally, we are advised this provision might actually conflict with the Federal Tort Claims Act. Before we are obliged to expend more resources on dealing with this provision and its implementation in the RFP, please confirm the necessity for this requirement, or amend the RFP to delete.

A. Section H.3 (REVISED) Q.2) PAST PERFORMANCE QUESTIONNAIRE: Clarify that the Government will send the Past Performance Questionnaires (Attachment J.12) to the references and does not require offerors to forward them before delivery of the proposal.

A. The Government will send the Past Performance Questionnaires to the references and will obtain the information.

Q.3) PARKING REVENUE PAYMENTS: Under Section C.4.4.2 (“Parking Garage Program Functions to be Performed”), at Page C-26, all parking revenue is to be paid to the GSA by the TCM.

The District of Columbia imposes parking taxes on the individual parkers, both Federal and non- Federal tenants and transients. If all of the parking revenue is to be turned over to the GSA account, where will the TCM get the money to pay the DC parking taxes? Or in this case does revenue mean receipts after the DC Parking Tax has been withheld?

A. Revenue means receipts after the DC Parking Tax has been withheld. The TCM shall pay the applicable District of Columbia parking taxes using the revenues generated through any non-cash payments (i.e., check and credit card).

C.4.4.2 – Revenue Collection Activities (REVISED)

Q.4) MINIMUM REVENUE GUARANTEES: Throughout Section B.2 there are performance incentives and disincentives for the contractor’s failure to meet the Minimum Revenue Guarantees for numerous key areas.

(A) Please provide GSA’s rationale for determining the Minimum Revenue Guarantee for each of the MRG categories. The age and condition of the RRB/ITC will significantly impact the contractor’s ability to successfully compete, capture and retain tenants seeking Class A office space and event space. In addition the downtown DC market is saturated with available Class A space in the surrounding area which have more amenities than currently available at the RRB/ITC.

A. This information is considered Source Selection Sensitive and will not be released.

(B) There are inconsistencies throughout the RFP as it pertains to a contractor’s eligibility to earn an award fee. In accordance with Section H10, the contractor cannot receive an Award Fee for the CLIN’s not exceeding the Minimum Revenue Guarantee. Other parts of the RFP indicate that an award fee cannot be earned unless all MRG categories are exceeded. Conversely, the Award Fee Performance Evaluation Plan (Attachment J.14) does not require achievement of the MRGs in order to receive the award fee. Requiring that all MRGs be met in order to be eligible for an award fee is a major disincentive for contractors. Please confirm that a contractor is eligible for an award fee when the award fee criteria set forth in Attachment J.14 are met, regardless of whether individual MRGs are achieved.

A. Section H.10 (REVISED) Q.5) AWARD FEE: Under the Award Fee Plan, Attachment J.14, please explain the basis for determining the number of events necessary to achieve 100% of the Award Fee Pool for Indoor Activities.

A. This information is considered Source Selection Sensitive and will not be released.

Q.6) DEFINITIONS: Throughout the RFP the terms “Gross Receipts”, Gross Revenues”, “Revenues” and “Ancillary Services” are used. Those terms do not seem to be defined in

FAR 2.1.

Please provide a definition of the above referenced terms. GSA seems to indicate that at section J-4, definitions will be added at the time of award. However, a clear common understanding of the definition of these and other economic terms is necessary for the preparation of the RFP response. Can these terms be added to J-4 now?

A. Gross Receipts shall mean the total sales receipts received prior to the deduction of expenses.

Gross Revenue means the total sales receipts received prior to the deduction of expenses.

The terms gross receipts and Gross Revenue have been used interchangeably. Whenever the terms are used they mean the same.

Ancillary Services include all other conference center services provided other than food/beverage services and room rental services.

Section C.4.3.2. (REVISED) Q.7) ANCILLARY CONFERENCE CENTER SERVICES: In Section C.4.3.2 (“ITC Conference Center in Specific Functions to be Performed), on Page C-22, Other Ancillary Conference Center Services Provided. This paragraph states that the TCM shall provide GSA with fifty percentage (50%) of the net revenue for other ancillary conference center services as set forth in Section B.

Please clarify if the TCM is to provide fifty percent of the net revenue (i.e., after expenses to provide the service) or fifty percent of the gross revenue (which would mean that the TCM is obligated to pay for the cost of the service out of its half of the gross).

The TCM is to provide 50% of net revenue after paying for the service expense.

Q.8) VENDING: In Section C.4.3.2 (“ITC Conference Center, Specific Functions to be Performed), on page C-23 (“Vending”), it states that vending not specified in the scope that includes selling any services or merchandise is prohibited by the TCM and others in any ITC space unless the TCM receives prior approval from the GSA.

a. Is this subsection intended to prohibit vending by exhibitors who are participating in contracted events, A. The intent is to prohibit vending other than what is conducted during an event and to prohibit vending by an event holder only if that activity conflicts with existing policies or retail operations.

b. and is the prior approval on a case-by-case basis or can the TCM establish a policy which would be approved by the GSA in advance?

A. The TCM should provide a policy for this type of activity. This should be added to the conference center “Requirement” list. If vending activities are not covered by this policy, they shall be evaluated on a case-by-case basis.

C.4.3.2 (REVISED)

Q.9) BUSINESS SERVICE CENTER: In Section C.4.3.2 (“ITC Center Specific Functions to be Performed”), on Page 23 (“Business Center”), it states that the TCM shall establish an on-site business center to assist event holders and attendees with any additional services required including making copies, faxing, printing documents, etc. Please clarify if the TCM can charge for these business services and if so where will the revenue go?

A. Yes, the TCM can charge for these services and revenues under this activity should be considered Ancillary Services.

Q. 10) OFF-SITE, SELF-PERFORMED CATERING: Section C.4.3.2 (“On-Site and Off-Site

Food and Beverage Operations”), Page C-21 requires that off-site, self-performed catering by the TCM shall receive prior GSA review and approval.

a. Clarify if this means that GSA must approve each and every individual off-premises event or can the TCM establish a policy and operate under it;

A. GSA must review and approve each and every individual off-premise event.

b. Clarify whether GSA reserves the right to “cancel” events previously approved by GSA and if so, what grounds would GSA use to “cancel” the off-premises event.

A. Yes, the Government reserves the right to cancel events off-premises events previously approved. The grounds for the cancellation would be stated at the time a cancellation is made by the Government.

Q.11) COLLECTION OF ROOM RENTAL: In Section C.4.3.2 (“ITC Conference Center Specific Functions to be Performed”), on Page C-22 (“Room Rent Guarantee”), the RFP states that the guaranteed revenue for the room rental shall be paid to the GSA in 12 equal monthly installments. However, Section C.4.11.1, Page C-41 (“Overview”), it is stated that all revenues from conference center room rentals are to be deposited directly into GSA’s designated U.S. Treasury account.

Clarify why the revenues from the room rental would still go directly into the GSA’s U.S. Treasury Account since the TCM has already paid them to GSA in monthly installments. Doing so will result in GSA collecting the room rental twice. In addition, clarify that this requirement only applies to room rental revenues collected in excess of the MRG.

A. The TCM shall remit room rent revenue to the GSA on a weekly basis. All room rent payments shall be collected by the TCM and then remitted into a specified U.S. Treasury Account. As with all of the MRG’s, amounts under and above the MRG level shall be remitted to the GSA. The GSA shall receive 100 percent of all room rent payments collected by the TCM and these payments shall be remitted once, on a weekly basis, as collected. Failure to meet the specified MRG will result in the

Contractor being assessed a disincentive dollar for dollar payment to the Government for each dollar below the MRG. Please see amendment to Sections C.4.3.2 and C.4.11.1.

Q.12) FEDERAL EVENT RATIO: In Section C.4.3.2 (“ITC Conference Center Specific Functions to be Performed”), Page C-22, (“Federal Event Ratio”), states that the TCM must hold a minimum of 25% federal events, defined as contracted directly with a federal entity, per year. The paragraph further states that if the ratio is not met, all revenue collected in association with the non-federal events shall be paid directly to the GSA at the end of the GSA fiscal year. Federal agencies have been required to significantly decrease spending on federally sponsored and attended conferences since 2013. This has had a significant impact on booking events and conferences within the federal sector. Given the current environment, please provide GSA’s rationale for determining that the contractor must hold a minimum of 25% for federal events. The contract requirement that the contractor pay GSA if the ratio is not met is an unfair penalty based on the current environment. In addition, such a restriction is an impediment to achieving the MRGs.

A. The shortfall recovery process will be applied at the Government's discretion in order to consider and evaluate circumstances that may have impeded the TCM's ability to achieve the 25% of federal events ratio.

Q.13) After GSA issues an amendment to address industry questions please verify that GSA will allow sufficient time from the date of the issuance of the amendment, to the RFP closing date, (June 15, 2018), for prospective offerors to review the answers and determine the impact on technical and price proposals.

A. The Government intends to provide sufficient time for the offerors to consider the information to formulate its offers resulting from the responses to the questions. However, the Government does not intend to consider another set of questions. The questions received on June 1, 2018 will represent the last set of questions that the Government intends to respond to.

Q. 14) The RFP is being procured through full and open commercial item competition. Please clarify the accuracy of GSA’s requirement for the submission of a cost-element breakdown for each key program area. FAR 15.402 states that no further additional information is necessary beyond the proposed prices submitted by the competing Offerors when the goods and services are being acquired through competition.

A. This is a comprehensive requirement; adequate information is required to evaluate the proposed prices and to make a finding that these prices are fair and reasonable. Please see

FAR 15.403-3.

Q.15) SMALL BUSINESS PLANS AND GOALS: Section G.2, (Subcontract Reporting”), Page 2 identifies a requirement for setting a goal regarding a “Small disadvantaged Veteran-Owned Small Business (SDBOB)”

Please clarify if this reference was meant to state “Service Disabled Veteran Owned Small Business”. If there was not an error in terminology, please clarify and/or define what is meant by Small Disadvantaged Veteran-Owned Small Business. The same applies to the reference Housing & Urban Development Business. Please clarify if this is intended to state “Historically Underutilized Business Zone (HUBZone) Small Business.

If this is not the intent, please define what is intended. The same apparent contradiction appears in Section L.14.6 (Page L-11).

A. HUBZone = Historically Underutilized Business Zone

SDBOB is revised to the following: Service Disabled Veteran Owned Small Business (SDVOSB) Q. 16) Section L.14.6 (“The Subcontract Management Plan”), Page L-11, states that “There shall be no double counting of all dollar amounts. The denominator used to arrive at the percentage goals for Small Business (SB), Veteran-Owned Small Business (VOSB), Small Disadvantaged Veteran-Owned Business (SDVOSB), Small Disadvantaged Business (SDB), Small Woman-Owned Business (SWOB) and Housing & Urban Development Business (HUB Zones) must be the total amount subcontracted and not expressed in a percentage of the total contract amount.”

Clarify your reference to double counting and the intent of this requirement. Typically, in most Government procurements, if the successful contractor is subcontracting to a small, woman-owned, HUB Zone business, then under FAR 52.219-9, the prime contractor would report the dollar value of the subcontractor in all three categories (small business, woman-owned, HUB Zone, etc.).

A. The subcontracting goals must be reported as a percentage of the dollars being subcontracted. The subcontracting total amount will be applied to all socio economic categories applicable and not to exceed the total subcontracting total amount.

Q. 17) COST AND PRICING DATA: Section L.2 (Page L-2), incorporates FAR 52.215-20, (Requirement for Cost or Pricing Data or Information Other than Cost or Pricing Data, Oct 1997, Alternate IV). Alternate IV states “submission of cost or pricing data is not required” and the provision goes on to require that the Government insert a description of the information and the format that is required.

Please clarify what description is supposed to be included within the fill-in.

A. The Government requires that Offerors provide sufficient information other than cost and pricing data to enable the Government to make an evaluation of the Offeror’s proposal. The Government requires the submission of the following data:

The Offeror shall, follow the format in Section B to provide a breakout of price for each Key Program area: Each Key Program area shall include the following cost breakout:

-direct labor & direct material costs

-labor & material overhead percentages

-general & administrative expenses

-profit

Additionally, the offeror shall clearly identify all subcontracted prices and include the name and address of the proposed subcontractor. Written quotations for all subcontracted services must be included with the cost proposal. For the Base Period and each Option Period, the Offeror shall follow the format in Section B in terms of a total price for each time period.

The Offeror shall break out its proposed profit separately. Through negotiations, the Government will allow a normal profit and all or part of any remaining proposed profit will be allocated towards the award fee pool that is set forth in the Award Fee Performance Evaluation Plan. (Attachment J.14). Section L.16(2). (REVISED) Q.18) PROPOSAL SUBMISSION INSTRUCTIONS: RFP L.11(D) specifies a 12 point font for submission of the technical proposal.

Typically, font type and size for graphics, charts and tables are somewhat smaller than the proposal text. Please clarify if it would be acceptable for graphics, charts and tables to be in a smaller but easily readable type size in order to set the graphics apart from the text and facilitate evaluation.

A. Yes. Graphics, charts and tables, may be somewhat smaller than 12 pitch fonts as long as they are readable.

Q.19) SECTION B.2.1.5 and B.2.1.6: Section B.2.1.5 requires close-out services to occur September 8, 2020 through December 7, 2020. Section B.2.1.6 is for a 6 month extension (September 8, 2020 through March 7, 2020. Please clarify (a) if the close-out term overlaps with the 6 month extension, and (b) if the term for the 6 month extension should read September 8, 2020 through March 7, 2021 in lieu of March 7, 2020.

A. Section B.2.1.6 for the 6 month extension should read September 8, 2020 through March 7, 2021. If the 6 month extension is exercised B.2.1.5 Option Period 1B (Contract Close-Out) (Year 2) should read March 8, 2021 through June 7, 2021.

Section B (REVISED)

Q.20) ANNUAL OPERATING BUDGET FOR PARKING GARAGE: In Section C.4.4.2 (“Operating Budget”), at Page C-28, the Government requires the TCM to prepare for review and approval an annual operating plan and an associated annual parking budget.

The amount of money proposed by each offeror to operate the garage is part of the RFP response which becomes the annual budget. Therefore, if the cost of operating the parking garage is to be included in the fixed-price for services of the TCM, why is GSA reviewing and approving the annual parking budget?

A. The Annual Operating Budget for Parking Garage is required for program oversight and transparency to plan for future funding operations. The TCM shall submit for GSA review and approval an annual garage operating plan. The TCM shall manage and operate the Garage in accordance with the approved annual operating plan.

Section C.4.4.2, Operating Plan (REVISED) Q.21) ANNUAL MARKETING PLAN AND BUDGET PLAN: Section C.4.8.2 (“Marketing Plan and Budget”), at Page C-37, paragraph C.4.8.2. states (1) that the TCM shall prepare and submit to GSA an annual marketing plan and budget plan to include each budget expenditure line item and a description of all marketing activities to take place within the ITC and (2) all activities and expenditures must receive prior GSA review and approval.

Clarify the requirement for GSA approval since the marketing requirement is part of the fixed price services of the TCM and should not require GSA approval. The same clarification is required for the requirement to submit all marketing expenses for approval as part of the yearly budget review process.

A. The TCM shall prepare and submit to GSA an annual marketing plan to include a description of all marketing activities to take place within the ITC. All activities must receive prior GSA review and approval.

Q.22) DELIVERABLES IN GENERAL: Please clarify the need to provide annual budget information for any deliverable which requires this type of information. The amount of money proposed, and accepted by GSA, is incorporated into the contract and becomes the annual budget. Therefore, if the cost of operating different program areas under the deliverables are included in the fixed-price for services of the TCM, why is GSA reviewing and approving budgets for certain program areas on an annual basis?

A. Deliverables are required for program oversight and stewardship of trade center funds and to determine the level of acceptability of ITC operations.

Q.23) PRICE PROPOSAL EVALUATION: Section M.7, (“Price Proposal Evaluation”), at Page M-4, states “proposals will be assessed to identify any aspects that could have significant negative cost or revenue consequences for the Government.”

Section L.15.2 (“Other Than Cost and Pricing Data”), at Page L-13, requires offerors to submit “other than cost and pricing data.” However, there is no mention in Section L.15.2 for the offeror to address proposal aspects that could have revenue consequences. We can fully appreciate the desire of the Government to evaluate such consequences, but it is requested that the Government clarify where in the Price Proposal submission such interest should be addressed. Further, please clarify how the offeror’s approach will be graded in Section M as part of the evaluated price.

A. The Offerors should address revenue consequences in its technical proposal. The Government will use the “Other Than Cost and Pricing Data” to help with its best value determination for evaluating the Offeror’s proposal. The Offerors price proposal shall reflect all of the necessary resources and cost required to perform all aspects of the requirements set forth in the RFP.

Section M.2 through M.8 sets forth the process and criteria that the Government will use to evaluate the proposals, including the Offerors technical and price proposals.

24) ALLOWABLE PROFIT: FAR 16.404(a)(1) (“Fixed-price contracts with award fees”) provides that a fixed priced contract with an award fee provisions “shall….”[e]stablish a fixed price (including normal profit) for the effort. This price will be paid for satisfactory contract performance.” (emphasis added). That provision also mandates that the “[a]ward fee earned (if any) will be paid in addition to that fixed price…”(emphasis added). Furthermore, the three percent profit cap/limit included in the solicitation is far below a “normal profit” that would be paid for the contract effort contemplated under the firm-fixed price CLINS in Section B.2.1.

A.) Because the RFP provides for creating and funding the Award Fee Pool (CLINs in Section B.2.9) with monies that would typically be part of the contractor’s “normal profit” for the firm fixed price contract effort (i.e., the difference between the contractor’s costs with three percent profit and the contractor’s firm-fixed price), should not the RFP require that the award fee (if any) to be paid be an amount in addition to the contractor’s normal profit?

There is no CLIN for Profit or Allowable Profit.

B.) Specifically, how and when will GSA create the Award Fee Pool from the profit projections proposed in the CLINS in Section B.2.1?

It will be determined by what is proposed and through any resultant negotiations with the TCM.

Q.25) The following documents are missing from Section J:

J.9 Collective Bargaining Agreement with Parking & Service Workers Union UNITE HERE (Parking

CBA)

See Attachment.

J.10 Collective Bargaining Agreement with Service Employees International Union (Cleaning CBA)

See Attachment.

J.15 GSA Form 527

See Attachment.

J.16 Disclosure of Lobbying Activities Form

See Attachment.

Q.26) Throughout the solicitation reference is made to providing the highest level of service and maintenance, congruent with private industry Class-A urban office buildings with a 5-star standards.

Please clarify if the RRB/ITC is considered a “Class A” office building against private industry standards.

A. The Ronald Reagan Building / International Trade Center is considered a “Class A” office building.

Q.27) Please clarify the accuracy of Attachment J.5, Kitchen Equipment and the date the inventory was taken.

A. The revised Attachment J.5 Kitchen Equipment inventory was taken on May 23, 2018.

Q.28) C.4.3.2 WIRELESS FIDELITY (WIFI) SYSTEM: Section C.4.3.2 addresses the TCM’s use of the GSA owned Wireless Fidelity (WiFi) System to enable wireless connectivity to all public interior and exterior areas. The current WiFi system is outdated and requires workarounds, at the contractor’s own expense, to enable conference and event holder connectivity. The availability of state-of-the art WiFi equipment is critical to capture conference and event business and to support customer satisfaction. It is our understanding that GSA is in the process of procuring a new WiFi system. Please clarify when the new system will be available.

A. The WiFi System will be available between Fiscal Year 2019 and Fiscal Year 2020.

Q.29) F.5.6 DELIVERABLES:

(a) The due dates for the annual deliverables do not appear to coincide with the period of performance under Implementation (Option 1). It is suggested that in lieu of specifying exact dates for the following deliverables GSA specifies that the due date for the annual deliverables be required “within 20 days after the exercise of the option” (as is required under F.5.7, see F&B and Catering Certifications). For semi-annual deliverables the due date would be 6 months thereafter.

Trade Events

Trade Program Planning

Trade Contract Lists

Conference Center Projected Revenue

Parking – Updated Operating Plan

Projected Revenue

Construction – Construction Budget

Licensing – Updated Licensing Plan

Marketing – Updated Marketing Plan

Security – Updated Security Plan

Information Technology – Updated Operating Plan

A. The annual deliverables will be required within 20 days after the exercise of the option.

(b) Please clarify why detailed information (to include budget information, personnel) is required for the following items since this is a firm-fixed priced contract with an incentive fee. The cost of performing all services required under Section C for the base period and option period will be included in the offeror’s price proposal. Therefore, no additional information should be required from the contractor.

F.5.5.3

25. Information Technology – Budget Plan

26. Budget & Finance – Expenditure Analysis

30. CFM – Employee Hours and Employee Duties

32. Employee Staffing Schedules

38. General, Operational, Staffing and Budget plan

F.5.6 through F.5.18

Revenue Collected: This item requires monthly reports/monthly summaries of revenue collected and reports must include each line item deposit to correspond to the approved projected revenue budget line items. Projected revenue budget line items are not submitted by the contractor or approved by GSA. Please clarify the need for matching deposits to projected revenue line items.

Parking – Budget Plan/Information

Construction Budgets

Marketing Budgets

IT – Operating Budget

H.R. – List of all Employees, Titles, Duties, etc.

Activation – Cost of Conducting the Activities

The information required (budget information and personnel) and revenue collected information is needed for program oversight and stewardship of revenue.

Q.30) LICENSING OF SPACE: Please clarify if the required deliverables under the Licensing of Space should reflect that the TCM develop and submit a 2 year pro forma for licenses (references throughout the solicitation show a 2 year pro forma where other references require a 10 year pro forma). Since this is a 2 year contract we believe the references should cite 2 years in lieu of 10.

A. The TCM should develop and submit a 2 year pro forma for licenses.

Q.31) The technical proposal, factor 3, staffing plan, requires the submission of resumes (not to exceed

3 pages each) for key personnel. Please clarify if the 30 page limitation excludes the key personnel resumes.

A. The 30 page limitation excludes key personnel resumes.

Q.32) POSSESSORY INTEREST TAX FOR TENANTS OCCUPYING OFFICE AND RETAIL

SPACE: Does the D.C. Government levy possessory interest tax for tenants occupying office and retail space? If so please explain how the taxes are paid.

A. The D.C. Government levies possessory interest tax for tenants occupying office and retail space.

The taxes are paid by the Licensee.

Q.33) There appears to be an error in the numbering of the evaluation factors under Volume I, Section L. The number 4 is repeated.

A. The correct numbering of the evaluation factors under Volume, Section L is as follows:

1. Introduction

2. Technical Approach

3. Staffing Plan

4. Relevant Corporate Experience

5. Management Plan /Quality Control Plan/Financial Internal Control Plan

6. Minimum Revenue Guarantees

7. The Subcontract Management Plan

PAGE