Questions and Answers_8.11.23.pdf

Questions & Answers For Solicitation 73351023Q0304

Regional Innovation Cluster (RIC) Initiative

1. Our existing RIC contract would overlap by about three months, what advice do you have for us?

There are multiple current Regional Innovation Clusters (RICs) who have contracts ending in December 2023 or January 2024. These RICs are eligible to apply for this solicitation. If they receive an award, SBA’s Office of Investment and Innovation will work with each individual RIC to ensure compliance and completion of previous contract and beginning of new contract.

Additionally, previous work as a RIC can be included as Past Performance or Prior Experience.

2. In Section 2.0, Scope or Mission, of the Statement of Objectives, what does “TA” mean?

TA stands for Technical Assistance.

3. Section 5.0, Performance Based Objectives, I.E., Required Results, of the Statement of Objectives calls for offerors to establish links between spending and outcomes. Direct causality is often difficult to provide, what level of proof is required?

Cluster administrators will be required to provide quarterly and annual reports to SBA’s Office of Investment and Innovation (OII) demonstrating continued activity within the Regional Innovation Cluster (RIC) and progress towards goals and objectives stated by the cluster administrator in their proposal. The anticipated small business metrics utilized by OII to measure the activity of each RIC are included in section 5.2.1 of the Statement of Objectives.

4. Are cluster administrators required to report on all of the Small Business Metrics listed in section 5.2.1 of the Statement of Objectives or can this list be modified given our method or approach being utilized?

SBA’s Office of Investment and Innovation will ask for the same metrics to be included in quarterly and annual reports from all the Regional Innovation Clusters (RICs). In quarterly and annual reports, there will be the opportunity for each RIC to provide narratives and qualitative information in addition to the small business metrics to demonstrate the unique attributes and approaches of each RIC.

5. Section 5.4 of the Statement of Objectives says, “The Contractor shall also comply with SBA requests for independent assessment studies.” What does “Comply” mean?

SBA reserves the right to request additional qualitative and quantitative data from the cluster administrators. SBA will work with the cluster administrators to ensure such requests are within the capacity of each RIC.

Additionally, each RIC is required to participate in an annual survey of the Regional Innovation Cluster (RIC) program by a contractor and disseminate information of the survey to participating small businesses and large organizations within the cluster.

6. The SBA Terms and Conditions describes Key Personnel. Does the entire team need to be specified now, or can we add them as we go?

The Key Personnel needed to achieve the stated goals and objectives of the RICs must be included in the proposal. Key Personnel can change throughout the duration of the contract but any requests to change key personnel must be submitted in writing with an attached resume of the new personnel to the contracting officer (CO).

7. Section 5.c of SBA Terms and conditions addresses organizational conflicts of interest. Do you need statements now that we comply and are without conflict or is this required when / if a conflict is discovered?

If awarded a contract, the company’s signature on the contract warrants that, to the best of the Contractor's knowledge and belief, there are no relevant facts or circumstances which would give rise to an organizational conflict of interest, as defined in FAR Subpart 9.5, and that the Contractor has disclosed all relevant information regarding any actual or potential conflict.

8. Section 8 of SBA Terms and Conditions mentions Contractor Performance Assessment Reporting System (CPARS). CPARS is new to us, how much work/effort/hours is associated with complying with this?

Please see the link for CPARS training for “Contractor Representative” (CPARS Training by Roles). This may help inform your understanding of this requirement.

CPARS is required for all contracts/orders above the Simplified Acquisition Threshold ($250K).

9. Are letters of support required, helpful or not needed at all?

Letters of support are not required. If letters of support are included in either the Cluster Qualification and Key Personnel or Technical Approach and Performance Work Statement, they will count towards the page maximum of each section.

https://www.cpars.gov/lc_role.htm https://www.cpars.gov/lc_role.htm

10. For Past performance or Prior Experience – we’ve been focusing almost exclusively on the current RIC effort. I am not aware of any other funding that is similar to cluster development work in our resume. Are two required?

At least two and up to four examples of past performance or prior experience are required. Prior experience can include work done in conjunction with programs or efforts not supported by the federal government.

11. How is this related to the NSF Engines program and the EDA Tech Hubs?

The Regional Innovation Cluster (RIC) program is separate from the National Science Foundation’s (NSF) Regional Innovation Engines Program and the Economic Development Administration’s (EDA) Regional Technology and Innovation Hubs program. Applicants and cluster administrators are encouraged to collaborate with awardees of other federal programs and eligible to apply to other federal programs as long as they continue to comply with the terms and conditions of the RICs contract.

12. Is this solicitation only available to new RICs? Given the 100% small business set aside, it appears you are no longer allowing nonprofits and universities to be the prime contractor. Is that true?

No, this solicitation is not only available to new Regional Innovation Clusters (RICs). RICs with contracts expiring in December 2023 or January 2024 are eligible to apply and organizations that have previously been a RIC are eligible to apply. Organizations other than for-profit small businesses under the $19 million size standard of NAICS code 541690, Other Scientific and Technical Consulting Services, are not eligible. We encourage offerors to partner with nonprofits, universities, economic development organizations, technical assistance providers, and other organizations to achieve the goals and objectives stated in proposals. Small businesses must perform at least 51% of the work in order to receive a small business set aside award.

13. Will Nikeena Brown confirm receipt of applications submitted?

Yes.

14. How many clusters will you contract with?

The government intends to make multiple awards under this solicitation.

15. Do the clusters have to be in a specific region?

The SBA is not prioritizing any specific region when evaluating responses to the solicitation. Offerors must specify the intended region of cluster services. Offers that support innovation clusters in rural areas or HubZones are of interest.

16. Are nonprofits able to apply for this solicitation?

This contract is a small business set aside therefore nonprofits cannot be the prime applicant on the offer. We encourage offerors to partner with nonprofits, universities, economic development organizations, technical assistance providers, and other organizations to achieve the goals and objectives stated in proposals. Small businesses must perform at least 51% of the work in order to receive a small business set aside award.

17. What is the average number of people served you would like to see from each grantee during this grant project?

Each regional cluster is unique, SBA does not dictate the number of businesses or entrepreneurs during the period of performance.

18. The solicitation speaks much about “Region”. Please define region for us.

A region may cross municipal, county, and other jurisdictional boundaries. The region in which a cluster will administer services can include multiple localities across multiple states.

A regional cluster is a geographically-concentrated, interconnected network of synergistic or complementary businesses, suppliers and associated organizations engaged in or with a particular industry sector, with active channels for business transactions, communications, and dialogue that share specialized infrastructure, labor markets and services.

19. I have a question about where the clusters will be located. For example, my business is based in South Florida, if I was awarded this contract what would be my region?

The region in which the cluster will deliver services needs to be defined by the offeror and can cross municipal, county, and other jurisdictional boundaries. The location in which the cluster administrator is headquartered can be a part of the region and cluster services can extend past the municipal boundary in which the cluster administrator or organizations participating in the cluster are located.

20. Can an organization submit applications for two separate Regional Innovation Clusters (RICs) under this one solicitation?

No. In accordance with 52.212-1 Instructions to Offerors-Commercial Items of the Solicitation, Offerors cannot submit multiple offers against the solicitation.

21. Can an organization receive multiple contracts for separate RICs under this one solicitation?

No. Offerors can only submit one offer towards the solicitation and therefore can only receive one contract.

22. We would like to know if this is a brand-new contract OR if there is (was) an incumbent performing these services. If not brand new, could you please provide the current / previous contract number?

The Regional Innovation Cluster (RIC) program began in September 2010 and has supported cluster activity for various industries and regions across the country since its inception. The SBA has continuously procured RIC services across various regions and industries since September 2010. A list of regional clusters currently supported through active SBA contracts can be found at: https://www.sba.gov/local-assistance/regional-innovation-clusters. SBA is seeking new offers to support the RIC initiative through this solicitation.

23. Are there any required templates to be used, beyond the excel files provided?

The only two templates required for use in quote submissions are Attachment 2 – Past Performance – Prior Experience Information and Attachment 3 – Pricing Schedule_Bases and Options.

24. I’m not seeing any guidance regarding the application format, etc. Is there a template we should be using for our application or a document that provides specifics on fonts, spacing, margins etc. which I sometimes see for other types of applications.

Offerors will submit quotes, not applications. Instructions to Offerors can be found at the SAM.gov link. Offerors can find information required, supporting details, how to format volumes, due dates, etc on the solicitation page at SAM.gov.

https://www.sba.gov/local-assistance/regional-innovation-clusters

25. If a group of more than one organization is partnering together for a proposal, do the past performance references need to come from only the lead small business on the proposal or can the partnering organizations past performance be used as well?

The past performance references should support the vendor who is completing the majority of the work (at least 51%); the prime contractor. The solicitation allows for “at least 2 but up to 4” past performance references. Therefore, the prime contractor should provide at least 2 past performance references. Other past performances references may be provided but should not exceed the total number of 4.

26. Can RIC Funding be used by the awarded entity (acting as the Innovation Cluster lead) to pay other members that are participants of the Innovation Cluster to conduct research and development for different technologies for entirely new types of products that, once fully developed, will be marketed and sold by the awarded entity. We will also use profit-sharing to pay other members of the consortium. The awarded entity would also provide mentoring, consulting, and lead efforts to seek grants and other funding for continued R&D and to evolve the Innovation Cluster into an Industry Cluster (a supply chain for the awarded entity’s products and services).

The goal of the Regional Innovation Cluster (RIC) program is to provide business support services to small businesses within the designated region and industry.

The cluster administrator can subcontract up to 49% of the work as long as the subcontracted work improves the delivery of business support services to small businesses.

SBA will work with cluster administrators to ensure all expended funds align with the goals of the RIC program.

27. Can RIC Funding be used by the awarded entity to invest in assets for other firms that are participants in the Innovation Cluster, such as research, manufacturing, and testing equipment, etc.?

The goal of the Regional Innovation Cluster is to provide business support services to small businesses within the designated region and industry. Any assets invested in would have to improve the ability of the cluster administrator to deliver services to participating small businesses. SBA will work with all cluster administrators to ensure all expended funds align with the goals of the Regional Innovation Cluster (RIC) program.

28. Can RIC funding be transferred from the awarded entity to participants in the Innovation Cluster?

Cluster administrators can subcontract up to 49% of the work of the regional innovation cluster (RIC) to other entities. This work should support delivery of cluster services, examples of such services are listed on page five of the solicitation under the Statement of Objectives.

29. Does a small business need to have employees currently employed to execute the contract, or may small businesses that are applying hire after the September contract start date?

Key Personnel must be employed at the time of the quote submission. Key Personnel can change throughout the duration of the contract but any requests to change key personnel must be submitted in writing with an attached resume of the new personnel to the contracting officer (CO).

30. Is there a cap to indirect costs?

The Pricing Schedule allows cost estimates for “Labor, Other Direct Costs, Travel, Events”. Possible ODC’s may include subcontracts for supplies or incidental costs for which there is not a labor or expense category specified in the contract. These expenses should not include the "costs of doing business". All proposed costs must be justifiable and reasonable.

31. The RFP states” The SBA does not have a target industry or geography.

Interested vendors shall propose their target industry and geographic location for the RIC efforts in their proposal”. Do we need to provide justification of the region we propose and the specific industries?

Yes, SBA would like to see a justification of why you chose your specific region and industry. SBA would like to see the existing expertise and relationships that will support the innovation cluster’s activities in the specified region.

32. Can the prime bidder use their teaming partners (subcontractors) past performance to be evaluated?

The past performance references should support the offeror who is completing the majority of the work (at least 51%); the prime contractor. The solicitation allows for “at least 2 but up to 4” past performance references. Therefore, the prime contractor should provide at least 2 past performance references. Other past performances references may be provided but should not exceed the total number of 4.

33. We have no intention of proposing any subcontract work. Is there a requirement to state this somewhere? And either way, is the “Attachment 4” required in the proposal?

There is no requirement to state the non-use of subcontractors. Attachment 4 is required when subcontractors are proposed.

34. If we have community buy-in from local government, the chamber, universities and nonprofits and other for profits, do we need to include a contact from each in the proposal and would they be considered key personnel, or just the personnel/team putting together the cluster and implementing the plan need to be included as key personnel.

SBA is interested in seeing partnerships and relationships that will support the work of the innovation cluster in the specified. Points of contacts from organizations that would be involved in the cluster are not needed and would not be considered key personnel. Key personnel are those from the prime contractor or subcontractors that are considered essential to successful performance.

35. Pg 6: Can you provide more clarification and/or provide an example of how a proposer could measure the impact of cluster spending on regional economic growth? Will all these metrics be required during the base year period? Pg 6 references performance metrics that need to be reported.

SBA’s Office of Investment and Innovation will require quarterly and annual reports to demonstrate continued activity within the Regional Innovation Cluster (RIC) and progress towards goals and objectives stated by the cluster administrator in the proposal and to demonstrate impact of spending on regional economic growth. Metrics are required to be reported during the base year while SBA recognizes new clusters will require time to initiate activities and see progress towards metrics. In addition to the metrics included in quarterly and annual reports, RICs can also include qualitative metrics and narratives to further demonstrate impact on regional economic growth and the unique attributes and approaches of their cluster.

36. Pg 30: Is it the SBA’s desire to only work with nonprofits or educational institutions with existing networks sufficient for cluster design or expansion? Table A.2 references required documents that are to be submitted as an appendix. The documentation required, such as an annual report, impact assessment report, by-laws, and board of directors, appears consistent with the documentation required of an organization with nonprofit status or an educational institution. Limited Liability Corporations and Corporations would not be able to respond substantially to Appendix A's requirements.

This contract is a small business set aside therefore nonprofits or educational institutions cannot be the prime applicant on the offer and organizations other than for-profit small businesses under the $19 million size standard of NAICS code 541690, Other Scientific and Technical Consulting Services, are not eligible. We encourage offerors to partner with nonprofits, universities, economic development organizations, technical assistance providers, and other organizations to achieve the goals and objectives stated in proposals. Small businesses must perform at least 51% of the work in order to receive a small business set aside award.

Documents listed in Table A.2 are required. The vendor must submit all documentation for the submission to be considered complete. SBA recognizes vendors may utilize different terminology or titles for the documents. The vendor, to the best of their ability, must submit the documents that best align with those requested in Table A.2.

37. If the small business entity has worked with individual business owners and other for profit organizations to perform similar tasks and outcomes in the proposed target industry in the offeror's response, can they be used as references for prior experience?

Yes. Prior experience does not have to be done via projects supported by or in conjunction with the federal government but should address the recency and relevancy of such work to the Regional Innovation Cluster program.

38. When considering that bringing together key partners and putting together a strategic plan can take time (ex 3-4 months), and then advertising to the community for businesses to participate (2-3 months), is the expectation that businesses who participate be fully through the process by the end of Year 1, or can that support carry on into Option Year 2?

SBA recognizes new clusters will require time to initiate activities and see progress towards metrics. Strategic development, advertising, and marketing can extend past the base year of the contract. SBA does expect cluster service delivery to businesses to occur in the base year.

39. Does the “Past Performance” only apply to the Lead Applicant, or does it also extend to teaming members?

The past performance references should support the offeror who is completing the majority of the work (at least 51%) - the prime contractor. The solicitation allows for “at least 2 but up to 4” past performance references. Therefore, the prime contractor should provide at least 2 past performance references. Other past performances references may be provided but should not exceed the total number of 4.

40. For the Partnerships, is it sufficient to include names of entities with which we have an established relationship in addition to those that we intend to include? Or do you have certain requirements in relation to such. Do you require Memorandum’s of understanding as part of application?

It is sufficient to include names of entities with which there are established relationships in addition to those that are intended to become a part of the cluster. Memorandums of understanding or other similar documents are not required in the application.

41. For the tax status, are you asking for that of the Applicant or are you asking about the prospective tax status of an entity to manage the Regional Innovation Cluster?

The tax status of the prime offeror, who would be the administrator of the Regional Innovation Cluster, is required.

42. For the following elements, does it refer to the Applicant or the proposed Regional Innovation Cluster - Misson Statement, Tax Status, Article of Incorporation, By-laws, Operating Guidelines.

The prime offeror would be the administrator of the Regional Innovation Cluster.

All documents requested in Table A.2 would be from the prime offeror.

43. Do services need to be provided on-site or is it possible to also include virtual services?

Services can be delivered in-person or virtually. Each cluster is unique and therefore the mix of in-person or virtual services will be at the discretion of the cluster administrator and should reflect the needs of the small businesses in the region and industry.

44. Is the deadline still 21 August or is there an extension?

The deadline is August 21 at 10 AM ET. Per the Solicitation (pg. 31 of 36), Note:

Due to the Government’s award schedule, extension of this date is not possible.

45. The call states “The estimated range for this requirement is between $400,000.00 and $500,000.00 per year.” But elsewhere it states that annual budget would be no more than $100,000. Does it mean there will be around 4-5 awards? Because Page 2: REQUIREMENT OVERVIEW: This requirement is being processed in accordance with the procedures under FAR Part 13 - Simplified Acquisition Procedures, Subpart 13.5 - Simplified Procedures for Certain Commercial Items. The Small Business Administration (SBA) intends to make up to 4 awards from this solicitation for Regional Innovation Cluster (RIC) performance-based services.

For clarification, the Government intends to make multiple awards as a result of this Solicitation. The estimated range for this requirement is $400,000 - 500,000 per year; offerors should not interpret this as a ceiling or a floor, rather this information is provided as a courtesy. The final awards will be determined after the complete evaluation of all offers and the determination of the best value and best suited quotes. SBA finds no direct reference to $100,000 in the Solicitation.

46. We took a look at existing clusters at https://www.sba.gov/local-assistance/regional-innovation-clusters . Some are managed by 501C3 firms and others are entities dedicated solely to the cluster. Accordingly, will the applicant be expected to create a new entity to manage/supervise the cluster?

This contract is a small business set aside therefore nonprofits cannot be the prime offeror. It is at the discretion of the prime offeror how the cluster will be administered within their organization.

47. Can you provide samples of annual/quarterly reports by existing clusters?

SBA will work with cluster administrators on the proper format and submission criteria of quarterly and annual reports. The anticipated small business metrics to be included in quarterly and annual reports are included in section 5.2.1 of the Statement of Objectives.

48. Suppose the awardee lists an entity (for instance, PTAC – now called APEX) as part of the proposed cluster in its application. But during the execution the said entity (PTAC, for argument sake) declines to participate, then will SBA use its convening power? As such what level of support can the awardee expect from SBA to nudge participants to join the cluster?

SBA recognizes the challenges in building regional innovation clusters and not all anticipated organizations will engage in formal or informal relationships with the cluster administrators. SBA’s Office of Investment and Innovation, to the best of its ability, will connect cluster administrators with its existing network of entrepreneurial support organizations (ESOs) and engage the clusters through regular meetings, conferences, and other events.

49. It is unclear whether the contract will be Fixed Price or Time and Material or Cost Plus.

Per the Solicitation (pg. 5 of 36), the contract type is Time and Materials.

50. Regarding the use of partner organizations. If we have partners that will fall under a lead organization, do we list their staff as individuals with a labor category, hours, and a rate?

Key personnel to be included in the submission are only those for the prime offeror and any subcontractors. Submissions should only include labor category, hours and rates for direct work which is billed against the contract.

51. The pricing documents call out labor Categories. Can you please clarify if you have various labor categories you would like us to use or if we define those in our program design?

Labor categories must be identified at the time of the quote submission. Offerors should propose Labor categories that are consistent with their proposed technical approach and proposed cluster/region.