PSA HIV RFP P0005 Questions and Answers Round 2 .pdf
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- Attached to
- Request for Proposals (RFP): NextGen Global Health Supply Chain - Procurement Service Agent (PSA), HIV/AIDS
- Solicitation number
- 7200AA21R00097
About this file
This document contains the revised responses to select questions from Amendment 3 of Request for Proposals (RFP) No. 7200AA21R00097 for the NextGen Global Health Supply Chain - Procurement Service Agent (PSA), HIV/AIDS requirement. The key details are:
The RFP is for a 10-year contract consisting of a 5-year base period, a 3-year option period, and a 2-year option period to support USAID's Office of Global Health. Offerors have raised concerns about the lack of a letter of credit or advance payment mechanism, which would require them to finance up to $500 million per year in commodity costs. In response, USAID has incorporated FAR 52.232-12, Advance Payments, into the amended RFP. The full proposal due date is April 26, 2024, and failure to comply with the submission dates will deem the proposal non-responsive.
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RFP No. 7200AA21R00097 Amendment 5 Procurement Service Agent HIV/AIDS
USAID NextGen Global Health Supply Chain
REVISED RESPONSES TO SELECT QUESTIONS FROM AMENDMENT 3
# Section Reference Question Answer
Section G
18 RFP Amendment 0002, Questions and Answers, Page 26, Answer to Question 98
Answer to Question 98 (regarding page 54, Sub-section G.2 of the original solicitation) states that USAID will not consider issuing a letter of credit under this contract. Given the nearly $5 billion commodity plug figure for this contract, without a letter of credit or other advanced funding means the contractor must obtain access to roughly $500 million per year in financing to cover the cost of capital from the time the supplier is paid until the contractor is reimbursed — which would result in prohibitively high and unrecoverable interest expenses (conservatively estimated at $40M or more over the life of the contract). If Offerors are expected to bear this expense, then the economics of the contract will not be viable and otherwise qualified Offerors may not respond to USAID’s solicitation. As such, consistent with how the Agency addressed this issue in 2014 with RFP No. SOL-OAA-12- 000128 for the USAID Global Health Supply Chain Program, we kindly request that USAID incorporate FAR 52.232-12, ADVANCE PAYMENTS (MAY 2001), by reference into the contract.
FAR 52.232-12 Advance Payments has been incorporated into the amended RFP in Section I.
RFP No. 7200AA21R00097 Amendment 5 Procurement Service Agent HIV/AIDS
USAID NextGen Global Health Supply Chain
# Section Reference Question Answer
19 Responses to Questions, Page 26, #98
As USAID will not consider issuing a Letter of Credit under this contract, how will USAID support the contractor's ability to make prompt payments to commodity suppliers for the $4.8 billion commodity plug? Would USAID consider advance payments, specifically for commodity vendor payments?
FAR 52.232-12 Advance Payments has been incorporated into the amended RFP in Section I.
Section H
20 FAR Clause 52.232-12 We noticed that this solicitation did not include FAR Clause 52.232-12 (Advance Payments) in the RFP documents. Would the government be willing to add the Advance Payment clause to the solicitation?
FAR 52.232-12 Advance Payments has been incorporated into the amended RFP in Section I.
Section I
24 Revised RFP Amendment 2, Page 124, I.10
Given USAID's desire to promote competition in the NextGen procurements and the magnitude of the commodity costs, which would be prohibitive for most offerors to incur and carry until reimbursement, would USAID consider allowing advanced payments on commodity costs in line with FAR 52.232-12 as a part of the contract?
FAR 52.232-12 Advance Payments has been incorporated into the amended RFP in Section I.
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