RFP_72051923R00004_Amendment no. 1.pdf

(x) x x copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted ; or (c) By separate letter or electronic communication which includes a reference to the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGEMENT TO BE

RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR

OFFER. If by virtue of this amendment you desire to change an offer already submitted , such change may be made by letter or electronic communication, provided each letter or electronic communication makes reference to the solicitation and this amendment, and is received prior to the opening hour and date specified.

x

720519

13. THIS ITEM ONLY APPLIES TO MODIFICATION OF CONTRACTS/ORDERS. IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

12. ACCOUNTING AND APPROPRIATION DATA (If required) is not extended.is extended, Items 8 and 15, and returning ____1_______

Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended , by one of the following methods: (a) By completing

The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers

11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

FACILITY CODE CODE

10B. DATED (SEE ITEM 13)

10A. MODIFICATION OF CONTRACT/ORDER NO.

9B. DATED (SEE ITEM 11)

9A. AMENDMENT OF SOLICITATION

NO.

72051923R00004

CODE

8. NAME AND ADDRESS OF CONTRACTOR (No., street, county, State and ZIP Code)

7. ADMINISTERED BY (If other than Item 6)CODE 6. ISSUED BY

USAID/El Salvador Regional Office of Acquisition and Assistance San Salvador, El Salvador

PAGE OF PAGES

4. REQUISITION/PURCHASE REQ. NO.3. EFFECTIVE DATE2. AMENDMENT/MODIFICATION NO.

5. PROJECT NO. (If applicable)

1. CONTRACT ID CODE

AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT

03/31/2023

CHECK ONE A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT

B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying office, C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:

D. OTHER (Specify type of modification and authority) appropriation data, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b).

E. IMPORTANT: Contractor is not is required to sign this document and return __________________ copies to the issuing office.

ORDER NO. IN ITEM 10A.

15C. DATE SIGNED 16B. UNITED STATES OF AMERICA 15B. CONTRACTOR/OFFEROR 16C. DATE SIGNED

(Signature of person authorized to sign) (Signature of Contracting Officer)

STANDARD FORM 30 (REV. 11/2016)

Prescribed by GSA FAR (48 CFR) 53.243

Previous edition unusable

14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible.)

The solicitation is hereby reissued in its entirety. Major changes are listed below, however, the list is not all inclusive. Highlights were added to assist Offerors, but do not capture every change. It is the responsibility of the Offeror to carefully and fully review the revised requirement.

Section B has been significantly revised, please review it closely;

Section C contains limited, highlighted changes;

Section D.2 was removed and D.3 revised;

Section E was simplified and revised to account for additional order types;

Section F was revised significantly to simplify reporting and the section now contains ordering procedures, award types and related sections;

Continued ...

Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains unchanged and in full force and effect.

15A. NAME AND TITLE OF SIGNER (Type or print) 16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or print)

Agnes Tusjak

04/28/2023

4/28/2023

ITEM NO. SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

NAME OF OFFEROR OR CONTRACTOR

2 60CONTINUATION SHEET

PAGE OF

(A) (B) (C) (D) (E) (F)

REFERENCE NO. OF DOCUMENT BEING CONTINUED

72051923R00004/0001

Section G was revised significantly, ordering procedures and related sections were moved to F;

Section H was revised to remove certain requirements, no new requirements were added;

Section I was revised to incorporate clauses related to additional task order types;

Section J now includes a revised set of attachments, such as a new cost/price evaluation matrix and past performance information form;

Section K was revised to remove certain requirements, no new requirements were added;

Section L was substantially revised, please review it closely;

Section M was substantially revised, please review it closely.

The amendment contains the questions received from interested partners and USAID’s responses. Gray highlights suggest the questions are no longer relevant given the significant RFP revisions, rows with no highlights contain questions and responses still applicable.

Given the significant revisions, USAID is offering an additional round of questions. Please see details in the attached solicitation.

NSN 7540-01-152-8067 OPTIONAL FORM 336 (4-86)

Sponsored by GSA

FAR (48 CFR) 53.110

USAID Central America Regional Support Services, RFP No. 72051923R00004 Amendment No. 1 - Questions and Answers

Section / Attachment Number

Solicitation Requirement Question USAID Response

Cover Letter L.14

p. 1: Closing Date/Time: May 8, 2023

p. 152: Closing Date and Time: May 8, 2023 - 17:00 (El Salvador local time)

Given that the solicitation period occurs during three major world holidays (Ramadan, Passover, and Easter), and to allow maximum coordination with local partners who may be observing one or more of those holidays, would USAID consider extending the proposal closing date and time to May 15, 2023 - 17:00 (El Salvador local time)?

The solicitation is revised in its entirety, a new due date for proposals will be indicated in Amendment No. 1.

2 Cover page Due date Would USAID consider extending the deadline to submit by two weeks to Monday, May 22?

Please see response to Question #1.

3 Closing Date/Time “Closing Date and Time: May 8, 2023 - 17:00 (El Salvador local time)”

Would USAID be amenable to giving a small extension to the proposal submission deadline so that Offerors may adequately incorporate Amendment 01 revisions and responses to Questions, also in case of a large volume of questions received that may result in potential delays?

Please see response to Question #1.

4 N/A N/A Can USAID confirm if there is a vision for different services within the scope of work that will be procured for small businesses vs large businesses?

Not at this time. Please see Section C.

5 Section B.3: Labor (b)

b) The fully-loaded hourly labor rates for the contractor and major subcontractors is set forth in Attachment J.X [To be inserted at time of award].

Will USAID kindly remove the “and major subcontractors” phrase in section (b)

The solicitation has been revised in its entirety and this question is no longer applicable. Please review the extensive changes in Amendment No. 1. You may ask additional questions by the due date noted.

6 B.3 B.3 Labor

USAID states The fully-loaded hourly labor rates for the contractor and major subcontractors is set forth in Attachment J.X Typically there would be one set of rates for the Offeror and all subcontractors, however this language implies that the major subcontractors will have their own rate matrix or different rates than the Offeror. Can USAID please clarify?

Please see response to Question #5.

B.3 Section L

Volume VI Price Proposal

USAID states that each proposed NTE fully-loaded hourly labor rate shall consist of …any labor-related direct costs (eg, any direct fringe benefits, any direct bonuses), all costs associated with satisfying any local labor laws…”. It is our practice to directly bill CCN fringe benefits as ODCs. We are concerned that frequently changing local labor requirements will make these rates obsolete. Would USAID reconsider the requirement to set fully loaded NTEs for CCNs.

Please see response to Question #5.

B.4 B.5 Section L

Ceiling Indirect Cost Rates, Volume VI Price Proposal

Would USAID consider removing the requirement that small businesses establish ceilings on indirect rates, or minimally removing them at the IDIQ level? Although FAR

42.707 allows indirect rate ceilings, if a small business has an established NICRA and a reputable history of successful cost control on cost reimbursable type contracts, by requiring ceilings on indirect rates the government may impose unnecessary burden and risk to those small businesses as rates can fluctuate more significantly than for large businesses and are more difficult to predict. Ceilings also may inadvertently impose hardship in cases of force majeure as we recently learned from COVID. Given the IDIQ allows for lower risk type mechanisms such as T&M and FFP, we request this be reconsidered.

Indirect ceiling rates have been removed from the solicitation.

Please review Amendment No. 1

9 B.3.e The negotiated NTE fully loaded hourly labor rates are in US dollars.

Could USAID provide an exchange rate Offerors should use in the Pricing Matrix for country-specific pricing tables?

Offerors may use the exchange rate they find most appropriate based on market research and their organizational practices.

10 B.3.e The negotiated NTE fully loaded hourly labor rates are in US dollars.

Could USAID provide clarity surrounding inflation and escalation from year to year regarding fully loaded rates for focus countries?

While this section has been revised, a similar question may apply to the unburdened ceiling daily rates the RFP now contains. Determining the appropriate inflation is part of the offeror's cost and pricing approach, USAID will not provide additional information in this regard.

Cover Page

Section B

USAID Central America Regional Support Services, RFP No. 72051923R00004 Amendment No. 1 - Questions and Answers

Number

Solicitation Requirement Question USAID Response

11 B.3.h

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), all costs associated with satisfying any local labor laws, applicable indirect costs, and profit amount. It does not include any other costs.

Given that some Offerors may recover local staff benefits or compliance with labor laws through non-labor categories, can USAID reconsider the requirement of having direct benefits, bonuses, and costs with complying with labor laws as part of the NTE and rather have these benefits as ODCs? For example, the cost of locally mandated medical and other insurances may vary depending on the type of agreement and number of employees. As such, it is difficult to calculate these costs as part of NTF fully-loaded hourly labor rates.

Please see response to Question #5.

RFP Section B.4(f) – Ceiling indirect costs;

L.16.F.12 – Volume VI Price Proposal

Section B.4(f) states that ceiling indirect cost rates shall not exceed 10% of the respective provisional billing indirect cost rates.

Can USAID clarify if the 10% increase is for each contract period of performance? Please see response to Question #5.

RFP Section B.4(f) – Ceiling indirect costs;

L.16.F.12 – Volume VI Price Proposal

Section B.4(f) states that the ceiling indirect rates will apply to task order line items when payment is made on actual costs incurred (e.g., materials portion of T&M type, any progress payments based on costs under firm fixed price type)

Will USAID consider revising the ceiling indirect costs increases from 10% to 20% given that the period of performance is 7 years and indirect rates can fluctuate significantly during such a long period of performance. Specifically, fringe rates mainly consist of statutory costs that the offeror does not have control over.

Please see response to Question #8.

RFP Section B.7, p) and q)

The RFP states the “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.” “Once an eligible employee has served 42 calendar days in the task order place of performance, payment of post differential pay will be retroactive to day 1 served in the task order place of performance.”

The DSSR indicates that post hardship differential is paid from Day 1 for long-term positions (generally one year or more) and from Day 31 (as of 6/28/21) for short-term positions (generally less than a year). Can USAID please confirm this understanding and revise the RFP accordingly?

Please see response to Question #5.

15 B.3 (j)

At the task order level, the Government will specify and/or allow the Contractor to propose the labor categories required for a given task order’s performance. Contract-specified labor categories and discounted fully loaded hourly rates shall be used when applicable.

Can USAID clarify when discounted fully loaded hourly rates shall be required to be used?

Please see response to Question #5.

16 B.4(f)

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

Per this requirement, after every provisional billing rate is negotiated, the contractor will have to set a new ceiling rate for that period. For example, if the 1-1-2022 -until amended rate is 6% the ceiling rate is 6.6%. If, after audit, the 01-01-2023 -until amended rate is 7%, the new ceiling going forward from 1-1-2023 is 7.7%. Is this interpretation correct?

Please see response to Question #8.

17 B.10 (a)

At the task order level, when payment is made based on actual hours or costs incurred (e.g., time-and-materials arrangements, and progress payments based on costs under fixed-price arrangements), the Government will not reimburse costs for cost elements for which there were no estimated costs. Exceptions must be issued in writing by the Contracting Officer.

Section I.1 incorporates FAR 52.216-7 Allowable Cost and Payment and thus costs all amounts of payment must be determined “to be allowable by the Contracting Officer in accordance with Federal Acquisition Regulation (FAR) subpart 31.2.” In this section, the Government notes that they will not reimburse for costs for cost elements for which there were no estimated costs. Can USAID clarify what will happen if a cost meets the requirements of FAR 52.216-7 but was not an anticipated cost element at the time of award. For example, a contractor did not anticipate buying computers as USAID disposed of property to the project but later had to buy one because one of the disposed computers was inoperable.

Please see response to Question #5.

USAID Central America Regional Support Services, RFP No. 72051923R00004 Amendment No. 1 - Questions and Answers

Number

Solicitation Requirement Question USAID Response

18 B.3(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 5 - 10% attributable to profit for those hours the Contractor incurs when replacing or correcting services or materials [reference FAR 52.246-6 (Inspection – Time-and-Material and Labor-Hour)].

In B.3(p) USAID notes that it reserves the right to reduce fully loaded labor rates by 5- 10% attributable to profit for hours incurred when replacing or correcting services or materials. In Section L.16.F.VI(b)24. USAID requests that offerors identify in the cost narrative what percentage of the proposed NTE fully-loaded hourly labor rates is attributable to profit.

Would USAID please confirm that Section B.3(p) will be revised at contract award to identify the exact percentage that the offeror incorporates into its rate? For example, if an offeror indicates that profit has been incorporated as 5% of the NTE fully-loaded hourly labor rates, then should USAID require replacement or correction of services, USAID will only deduct 5% from the attributable hours?

Please see response to Question #5.

B.3(d) L.16.G.1(a)

p. 11: “The negotiated NTE fully-loaded hourly labor rates apply regardless of whether the individual performing the labor category works (either as an employee or consultant) for the prime contractor or a subcontractor.”

p. 172: G.1 SUBCONTRACTS

(a) FAR § 44.101 provides for any contract order entered into by a subcontractor to furnish supplies or services for performance of a prime contract or a subcontract. For every subcontract, the Offeror must submit separate spreadsheet tabs for each such subcontract with the same detail, organization, and format set forth above for the prime contractor in Attachment J.6 Pricing Matrix.

Section B.3(d) indicates that the offeror’s negotiated NTE fully-loaded labor rates apply to all personnel, including subcontractors’ personnel. However, G.1(a) indicates that “Offeror must submit separate spreadsheet tabs for each such subcontract with the same detail, organization, and format set forth above for the prime contractor in Attachment J.6 Pricing Matrix.” It is unclear why subcontractors would be asked to undertake the complex and time-consuming exercise of completing the pricing matrix if the prime’s proposed rates are the ones which would be included in a resulting IDIQ contract. It is also unclear how USAID would determine a total price for each bidder if the prime and all subcontractors submit individual pricing matrices. Given this, could USAID please confirm that only the prime offeror is required to complete the J.6 Pricing Matrix?

Please see response to Question #5.

RFP Sections B.3, p) and Section L.16, F. Price Proposal Information

B.3, 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 5 – 10% attributable to profit for those hours the Contractor incurs when replacing or correcting services or materials [reference FAR 52.246-6 (Inspection – Time-and-Material and Labor- Hour)].

L.16, F, #24. In the Narrative, pursuant to FAR 52.246-6(f) (Inspection – Time-and-Material and Labor-Hour), offerors shall identify the percentage of the proposed NTE fully-loaded hourly labor rates attributable to profit.

Section B.3 has already detailed the percentage of profit to be removed if corrective action is taken. Please clarify the requirement under L.16,F, #24.

Please see response to Question #5.

21 RFP Section B.4

f) …the ceiling indirect cost rates shall not exceed 10% of the respective provisional billing indirect cost rates…”

Offerors’ ongoing business operations, unique circumstances, year-on-year trends and forecasts, will impact their indirect rates differently. Accordingly, offerors should be able to propose ceilings that make the most business sense for them. This could include ceiling rates that may exceed the RFP referenced 10% cap on year-on-year ceiling rates, but with other years at a lower increase rate or no increase at all.

Accordingly, we request that USAID considers revising to say, “not to exceed on average 10% of the respective provisional billing indirect cost rates over the life of the contract.”

Please see response to Question #8.

22 RFP Section B.6, a)

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

Could USAID please confirm that iSOS and DBA expenses are authorized as part of reimbursable travel costs.

Please see response to Question #5.

23 RFP Section B.6, i) vi)

Travel Costs: 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.

Embassies of some countries prefer to work with visa processing agencies, resulting in the traveler’s deployment being delayed either due to slower-times associated with processing a visa directly by an individual, or delays with obtaining written approval by the CO to allow the cost. Would the Government authorize the use of third-party visa processing services in such circumstances where the country prefers use of visa-processing agencies?

USAID Central America Regional Support Services, RFP No. 72051923R00004 Amendment No. 1 - Questions and Answers

Number

Solicitation Requirement Question USAID Response

24 RFP Section B.6, k)

K.) Pursuant to FAR 47.402, 47.403, 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.

As airline schedules may change necessitating a change in carrier between the time of task order proposal submission and commencement of travel, can this memorandum be submitted before travel commences rather than with the proposal?

Please see response to Question #5.

RFP Section B.7, items n) through s)

Differentials and Allowances. 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.

The 42-day requirement was updated in DSSR effective 6/28/2021. The DSSR requirement now lists 30 days. Could USAID please clarify if contractors will be required to adhere to the 42-day requirement in AIDAR 752.2028 or 30-day requirement in DSSR 500.

Please see response to Question #5.

26 RFP Section B.7 Differentials and Allowances While consultants are not considered employees of the Contractor and will not be entitled to any company benefits or compensation packages, please confirm that consultants may be compensated with post differential and danger pay, if applicable.

Please see response to Question #5.

RFP Section B.9 And RFP Section I.1

B.9: The Government did not require and rely upon certified cost or pricing data, as described in FAR subpart 15.4, for award of the contract because adequate price competition had been obtained.

I.1: 52.215-12 SUBCONTRACTOR CERTIFIED COST AND PRICING

DATA Jun 2020 [which in turn requires that subcontractors comply with table 15-2 in FAR 15.408, should their budget be above the relevant threshold ($2 million, per FAR 15.403- 4(a)(1))]

Given that the prime is not required to provide certified cost and pricing data as part of its proposal due to the government reasonably anticipating adequate price competition to be obtained in the solicitation process, and given that this is an IDIQ requesting labor rates as opposed to a budget request of a task order, would USAID consider removing the referenced clause in I.1 for subcontractors to provide this information? If not, please provide guidance on how subcontractors would fill in Table 15-2 at this stage? And, this would limit any request to consent per Volume VII.

Subcontracting (See RFP Section L.16,G.(b) top of page 173).

Please see response to Question #5.

28 Section B.3 LABOR

“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 5 - 10% attributable to profit for those hours the Contractor incurs when replacing or correcting services or materials [reference FAR 52.246-6 (Inspection – Time-and-Material and Labor- Hour)].”

Can USAID please clarify this statement further, and explain how USAID will determine the profit percentage (%) deduction and under what types of scenarios this would apply?

Please see response to Question #5.

Section B.4

PROVISIONAL BILLING

INDIRECT COST RATES

and

Section B.5 CEILING

INDIRECT COST RATES

“f) After any additional (other than just a name change) indirect cost rate description has been approved in writing by the Contractor’s CFAO, negotiation of provisional billing indirect cost rates and establishment of ceiling indirect cost rates associated with such description will occur after the CFAO has issued their prior written approval of such description. In such a case, 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(s) established by the Contractor’s CFAO exceeds their contract’s respective ceiling indirect cost rate (see Section B.5), the Contractor shall be reimbursed at the contract’s ceiling indirect cost rate.”

All of Section B.5 requirements.

Sections B.4 f) and (g) and Section B.5 address the guidelines regarding indirect rate changes and ceilings. Could USAID please confirm that no indirect ceilings are required, as is customary, for Small Business prime Offerors? Indirect ceilings and caps on adjustment place an undue burden on small business Offerors particularly in the current climate of unprecedented inflation. A 10% cap on indirect rate increase is possibly unrealistic for small businesses.

Please see response to Question #8.

USAID Central America Regional Support Services, RFP No. 72051923R00004 Amendment No. 1 - Questions and Answers

Number

Solicitation Requirement Question USAID Response

Section B.10 ADVANCE

UNDERSTANDING

“a) At the task order level, when payment is made based on actual hours or costs incurred (e.g., time-and-materials arrangements, and progress payments based on costs under fixed-price arrangements), the Government will not reimburse costs for cost elements for which there were no estimated costs. Exceptions must be issued in writing by the Contracting Officer.”

Could USAID please clarify what is meant by “for which there were no estimated costs”? It is highly likely that there will be legitimate program costs that arise under a cost-reimbursement or T&M arrangement that was initially not included within the Task Order proposal. This statement is onerous and places undue risk upon the Contractor given the contractual mechanism envisioned here. Would USAID consider removing this section or delegating to the COR such approval? At a minimum, could USAID please add a clarification that the approval for said cost shall not be unreasonably withheld by the Contracting Officer?

Please see response to Question #5.

B.3 Labor, and L.16(F)17 Volume VI – Price Proposal

B.3(h). 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), Central America Regional Support Services (CARSS) RFP – 72051923R00004 Page 13 of 184 all costs associated with satisfying any local labor laws, applicable indirect costs, and profit amount. It does not include any other costs.

L.15(F)17. In Pricing Tables 5 through 9 (Tab 5. US Pricing, Tab

6. ES Pricing, Tab 7. G Pricing, Tab 8. H Pricing, and Tab 9. M Pricing), each proposed NTE fully-loaded hourly labor rate shall consist of a proposed unloaded hourly labor rate, any labor-related direct costs (e.g., any direct fringe benefits, any direct bonuses), all costs associated with satisfying any local labor laws, applicable indirect costs, and profit amount. It shall not include any other costs.

In some past solicitations that have required multi-country labor rates, USAID has provided a minimum/maximum range for country-specific local fringe benefits. For example, this information was provided on the USAID NextGen In-Country Logistics RFP, which required offerors to provide labor pricing information in four different countries. The benefit to USAID was that this information prevented offerors from drastically underpricing local direct fringe benefits, and pricing evaluation was therefore done in a way that focused on the offerors’ cost competitiveness, while ensuring that future cooperating country national personnel were provided with appropriate benefits. Would USAID consider providing similar direct fringe benefit ranges for El Salvador, Guatemala, Honduras, and Mexico?

Thank you for your question, while the solicitation is revised significantly, this question may still be relevant. Unfortunately, we will not be providing this information. However, the new RFP limits unburdened ceiling daily rates to expatriate staff only, therefore this question will be more applicable at the task order competition stage.

32 B.1 (f) “The contract types that may be awarded as orders under the resultant IDIQs include fixed price (FP), time and materials (T&M), labor-hour (LH) or a combination thereof.”

Section B.1(f) of the RFP does not include costreimbursement types of task orders. We respectfully request that USAID add the cost-reimbursement type to Section B.1(f) to provide USAID missions in the CARSS geography of focus the broadest range of options for implementation. Specifically, having a costreimbursement type task order may be an appropriate option given 1) the high value and seven-year period of performance of the IDIQ, 2) the designated places of performance have experienced economic volatility in recent years, 3) the named Central American economies are sensitive to factors such as inflation, crime, migration, and coronavirus-related events, and these factors are expected to remain at varying levels in the near future, and 4) most missions in the CARSS geography of focus have chosen to use mechanisms other than time and materials or fixed-price contracts in the last five years.

USAID Central America Regional Support Services, RFP No. 72051923R00004 Amendment No. 1 - Questions and Answers

Number

Solicitation Requirement Question USAID Response

33 B.3 (d) L.16, Volume VI –

Section B.3(d): “The negotiated NTE fully-loaded hourly labor rates apply regardless of whether the individual performing the labor category works (either as an employee or consultant) for the prime contractor or a subcontractor.”

Section L.16 (page 167): “At this time, the Government does not require submission of (prime) offerors’ or subcontractor offerors’ build-up of the proposed fully-loaded hourly labor rates, but the Government reserves the right to require such information during the source selection process, if necessary.”

Section L.16 (page 169): In Pricing Tables 5 through 9 (Tab 5. US Pricing, Tab 6. ES Pricing, Tab 7. G Pricing, Tab 8. H Pricing and Tab 9. M Pricing), under “NTE Rate,” offerors shall propose one not-to exceed (NTE) fully-loaded hourly labor rate per labor category per period, regardless of which entity (offeror, subcontractor offeror, and/or other) is anticipated to perform the labor category.”

Section G.1: “For every subcontract, the Offeror must submit separate spreadsheet tabs for each such subcontract with the same detail, organization, and format set forth above for the prime contractor in Attachment J.6 Pricing Matrix.”

Can USAID kindly confirm that one set of NTE fully-loaded hourly rates apply to all individuals performing the labor (for employees, consultants, prime contractor, or subcontractor)? There are references in the RFP to one set of fully-loaded rates and references to fully-loaded rates for the prime and subcontractors. Specifically, the following sections reference one set of rates:

- B.3(d), page 11, paragraph 9, “The negotiated NTE fully-loaded hourly labor rates apply regardless of whether the individual performing the labor category works (either as an employee or consultant) for the prime contractor or a subcontractor.”

- Section L.16, Volume VI Price Proposal, page 169, paragraph 8, “In Pricing Tables 5 through 9 (Tab 5. US Pricing, Tab 6. ES Pricing, Tab 7. G Pricing, Tab 8. H Pricing and Tab 9. M Pricing), under “NTE Rate,” offerors shall propose one not-to exceed (NTE) fully-loaded hourly labor rate per labor category per period, regardless of which entity (offeror, subcontractor offeror, and/or other) is anticipated to perform the labor category.”

The following sections reference subcontractors using their own set of fully-loaded rates:

- Section G.1 Subcontracts, page 72, paragraph 9, “For every subcontract, the Offeror must submit separate spreadsheet tabs for each such subcontract with the same detail, organization, and format set forth above for the prime contractor in Attachment J.6 Pricing Matrix.”

- Section L.16 F, Volume VI – Price Proposal, page 167, paragraph 2, “At this time, the Government does not require submission of (prime) offerors’ or subcontractor offerors’ build-up of the proposed fully-loaded hourly labor rates, but the Government reserves the right to require such information during the source selection process, if necessary.”

Please see response to Question #5.

34 B.3 (h)

“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), all costs associated with satisfying any local labor laws...”

Most offerors develop direct fringe benefits package based on local labor laws, which can change during implementation. Requiring offerors to include direct fringe benefits in the fully-loaded hourly rates does not allow for offerors to update the cost of changes to the local labor law at the time the change in the law occurs, as the fully loaded labor rates are fixed. While Section B.10(b) does allow for USAID to consider a request for equitable adjustment should a change in local laws occur, this will increase the burden of contract management and result in delays of accurate costs being billed to the U.S. government. Would USAID kindly consider removing direct fringe benefits costs from the fully-loaded rates, and allowing the costs to be billed as a direct material cost?

Please see response to Question #5.

35 B.4 (f) “…In such a case, 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%).”

While we understand that it is common for USAID contractors to offer ceilings on some rates to enhance their competitiveness, our understanding is that the government may only require indirect rate ceilings when the conditions of FAR 42.707(b) are met.

We believe that most established USAID contractors will not meet the regulatory conditions for government- mandated indirect rate ceilings. Accordingly, we respectfully request that USAID remove this language from, allowing offerors to propose indirect cost rate ceilings that take into consideration their accounting practices and methods for determining indirect cost rates.

Please see response to Question #8.

USAID Central America Regional Support Services, RFP No. 72051923R00004 Amendment No. 1 - Questions and Answers

Number

Solicitation Requirement Question USAID Response

36 B.6 (i) vi

“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.”

Some foreign embassies require the use of private visa procurement services to secure a visa, in which case private visa procurement services would be necessary for performance and therefore allocable to the contract. We respectfully request USAID modify this clause to allow contractors to use private visa procurement services without contracting officer approval when it is required by the foreign embassy.

Please see response to Question #5.

37 B.10 (a)

“At the task order level, when payment is made based on actual hours or costs incurred (e.g., time-and-materials arrangements, and progress payments based on costs under fixed-price arrangements), the Government will not reimburse costs for cost elements for which there were no estimated costs. Exceptions must be issued in writing by the Contracting Officer.”

It is our understanding that offerors may be reimbursed for actual hours or costs incurred if those costs are allowable, reasonable, and allocable. Actual performance of a contract will likely require the contractor to incur costs that may not have been estimated or proposed but which are still necessary for performance of a contract.

Requiring contracting officer approval for reimbursement of costs for which there were no cost estimates inhibits performance because it focuses the contractor’s and USAID’s attention on tracking the allocability of previously unforeseen, but now required, costs which in turn leaves less time and effort to focus on the technical results of performance. We kindly request USAID to remove this language to permit offerors to incur and be reimbursed for costs that are allowable, reasonable, and allocable.

Please see response to Question #5.

RFP

B.7 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.

We respectfully request USAID to update Post Hardship Differential allowance to reflect the updates on DSSR 500 effective August 1, 2021.

Please see response to Question #5.

RFP

B.10 g)

Task orders awarded under this contract will support foreign assistance projects under the Foreign Assistance Act of 1961 (Public Law 87-195). The Contractor shall not pay any taxes, import, or customs fees to the government of the host nation or aid receiving nation(s). As appropriate, USAID Missions concerned may assist in customs or other official clearances of contractor-acquired items and associated equipment for duty-free status. If taxes, import, or customs fees cannot be mitigated, the Contractor shall request directions from the Contracting Officer.

Would USAID please provide the development objective agreement or bilateral project agreement between the United States and the Cooperating country(ies) covering the support services to be provided under the CARSS program? If unable to provide the agreements, please provide the language that outlines the tax provisions applicable to USG contractors and their expatriate employees present in the cooperating country to implement work covered under the agreement.

Information related to the approach to different type of taxes in each country will be addressed by each TOCO at the Task Order-level. Therefore, the referenced paragrah has been removed from the RFP.

40 B.3

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

Given that Offeror’s labor rates apply to all subcontractor labor, would USAID remove the requirement listed on Page 172, G. VOLUME VII - SUBCONTRACTING G.1 SUBCONTRACTS, stating that, “For every subcontract, the Offeror must submit separate spreadsheet tabs for each such subcontract with the same detail, organization, and format set forth above for the prime contractor in Attachment J.6 Pricing Matrix.”?

USAID Central America Regional Support Services, RFP No. 72051923R00004 Amendment No. 1 - Questions and Answers

Number

Solicitation Requirement Question USAID Response

41 B.3

h) 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), all costs associated with satisfying any local labor laws (emphasis added), applicable indirect costs, and profit amount. It does not include any other costs.

Please define what costs are associated with local labor laws. For example, do they also include legal and payroll services in the country, or just the costs directly associated with the individual's employment such as PAYE, social security, etc.?

Thank you for your question, while the solicitaiton is revised significantly, this question may still be relevant. Unfortunately, we will not be providing this information. However, the new RFP limits unburdened ceiling daily rates to expatriate staff only, therefore this question will be more applicable at the task order competition stage.

42 B.3

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 5 - 10% attributable to profit for those hours the Contractor incurs when replacing or correcting services or materials [reference FAR 52.246-6 (Inspection – Time-and-Material and Labor- Hour)].

How will USAID determine what percentage is subtracted? Please see response to Question #5.

43 B.5

The solicitation includes multiple references to Ceiling Indirect Cost Rates, such as the Ceiling Indirect Cost Rates Table on page 15 and several references on page 168, e.g.,

5. In Pricing Table 1 (Tab 1. Prov. Bill. Ind. Cost Rates), the proposed provisional billing indirect cost rates shall not exceed the ceiling indirect cost rates proposed in Pricing Table 2 (Tab 2. Ceiling Indirect Cost Rates).

In our experience, small business Offerors are typically exempted from requirements to propose ceiling indirect cost rates on USAID proposals. Therefore, we respectfully ask that USAID exempt small business Offerors from proposing ceiling indirect cost rates.

Please see response to Question #8.

44 Section B.3 Labor

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), all costs associated with satisfying any local labor laws, 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) 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 Material, are post hardship differential pay and danger pay.

As direct fringe benefits and local labor law requirements may change over the period of performance of the IDIQ, they may not be accurately captured in the proposed fully-loaded hourly labor rates. Additionally, as contractors may have different fringe benefits packages, USAID may not be able to accurately compare and evaluate different proposed fully-loaded hourly labor rates. Finally, many contractors’ cost accounting standards dictate that direct fringe benefits and any other local labor law requirements as material costs are directly billed and as such they should not be considered part of labor. Could USAID kindly reconsider the build-up of the NTE fully-loaded hourly labor rates to include only an unloaded hourly labor rate, applicable indirect costs, and profit?

USAID Central America Regional Support Services, RFP No. 72051923R00004 Amendment No. 1 - Questions and Answers

Number

Solicitation Requirement Question USAID Response

SECTION B – SUPPLIES

AND SERVICES AND

PRICES/COSTS

L.16.

VOLUME VI – PRICE

PROPOSAL

VOLUME VII -

SUBCONTRACTING

B.3.b The fully-loaded hourly labor rates for the contractor and major subcontractors is set forth in Attachment J.X [To be inserted at time of award].

B.3.d The negotiated NTE fully-loaded hourly labor rates apply regardless of whether the individual performing the labor category works (either as an employee or consultant) for the prime contractor or a subcontractor.

In Pricing Tables 5 through 9 (Tab 5. US Pricing, Tab 6. ES Pricing, Tab 7. G Pricing, Tab 8. H Pricing and Tab 9. M Pricing), under “NTE Rate,” offerors shall propose one not-to exceed (NTE) fully-loaded hourly labor rate per labor category per period, regardless of which entity (offeror, subcontractor offeror, and/or other) is anticipated to perform the labor category.

The Offeror must submit separate spreadsheet tabs for each such subcontract with the same detail, organization, and format set forth above for the prime contractor in Attachment J.6 Pricing Matrix.

Section B, and specifically B.3.b and B.3,d indicate that there will be one set of NTE fully-loaded hourly labor rates for each IDIQ contract. However, under VOLUME VII, USAID is requesting a pricing matrix for each major subcontractor.

Would USAID please confirm that one set of NTE fully-loaded labor rates will apply to the prime contractor and its subcontractors upon award?

What is the purpose of the subcontractor pricing matrix submission in VOLUME VII?

If a pricing matrix for subcontractors will be required would USAID please clarify how these will be evaluated along with the prime’s pricing matrix per Section M?

If a pricing matrix for subcontractors is required, please see additional questions in number 15 below.

Please see response to Question #5.

46 C.5.1 Definition of local organization

In the first criteria/definition, USAID states that a local organization must “be organized under the laws of the recipient country (if already registered)”. Given the potential for CARSS to be scaled to include additional USAID Missions, as well as the likelihood of regional task orders, will USAID kindly define “recipient country” as any country across Latin American and Caribbean Regions?

At the task order level the term "recipient country" will depend on the task order place of performance.

Section C.5 Special Considerations

C.5.1 Sustainability and Maximizing use of local entities

In this section USAID uses the following terms: "Local Actors", "local organizations", "local entities", "local partnerships", "local implementors", "local offerors", "Local NGOS", "local institutions", "local firms", "local citizens. Can USAID confirm that the following terms are used interchangeably? If not, can USAID provide definitions distinguishing how USAID interprets each term?."?

A local entity means an individual, a corporation, a nonprofit organization, or another body of persons that—is legally organized under the laws of; has as its principal place of business or operations in; is majority owned by individuals who are citizens or lawful permanent residents of; and managed by a governing body the majority of who are citizens or lawful permanent residents of a country receiving assistance from funds appropriated under title III of this Act.

While the terms listed do not all refer to the same entity/group/etc,. however the offeror should be able to distinguish between them based on the context.

48 Section C.1 Purpose

USAID indicates that there is a potential to scale up the use of the contract to “include USAID Missions throughout the Latin American and Caribbean Regions.” If missions outside Central America utilize the mechanism, will the scope of work need to address migration or just fall into one or more of the CARSS Strategic Objectives?

The solicitation has been revised to broaden the place of performance. Section C has also been amended. Please review the changes.

49 Section C.4.1 Section C Can USAID please provide a definition or example of what is meant by “…. Workgroup performance”?

"Workgroup performance" refers to collaborative implementation between one or more local organizations or between local and non-local organizations in the execution of USAID programs and activities.

50 C.5.2 Such grants will be defined and managed under the Task Order.

Similar to the ODCs and Travel breakdown provided in in the Pricing Matrix, could USAID provide an estimated plug figure for Grants?

No. The amount of grants, if any, will depend on task order requirements and at this point an estimate is not available.

Section C

USAID Central America Regional Support Services, RFP No. 72051923R00004 Amendment No. 1 - Questions and Answers

Number

Solicitation Requirement Question USAID Response

51 Section C Purpose

USAID refers to the scope of CARSS being scaled up throughout Latin America and Caribbean region. Can USAID elaborate at this time on other countries that are under consideration?

Could USAID also share its MoU with the Mexican Agency for International Development Cooperation? Is there a specific reference to CARSS within this MoU?

Also, are there any similar MoU or institutional relationships in place with similar local counterpart entities in the targeted countries for implementation of CARSS activities?

The geographic scope of the IDIQ has been revised, please review the solicitation.

USAID will share necessary materials if and when task orders under CARSS require.

52 Section C / Section M Sustainability and Maximizing Use of Local Entities, Factor 3 - Use of Local Entities

Could USAID clarify its understanding of what organizations can be considered a local partner? Is it confined to partners only working within the targeted country itself or can it also include regionally established entities that are active in countries targeted for CARSS support?

To be considered a local organization, the organization must meet all criteria listed in Section C.5.1 of the RFP. The definition does not specifically prohibit being active outside of the recipient country.

53 Section C.4.3.3 “Supporting NGOs and other entities in the region focused on increasing the use of renewable energy”

Is this type of activity referring to community level SBCC and demand generation?

Private Sector? Government? And at what level, community, regional, national? ?

What other entities does USAID anticipate including in…