75F4012500059_QA_5-12-25.pdf

FDA Solicitation No.: 75F40125R00059 Questions and Answers Date: May 12, 2025

The purpose of this is to answer questions submitted in accordance with Section E.2.1.1 of the solicitation;

Q1: Reference: Section B.2.2 Pricing Schedule Can the government clarify what specifically amounts for “Increased Quantity-Separately Priced Line Item”? Is this for supplies purchases, additional labor needed, or travel costs?

A1: The Increased Quantity-Separately Priced Line Item is primarily for additional labor needed. It does not specifically cover supplies purchases or travel costs. Each 52.217-7 option item is for additional, identical services at the same hourly rates current at the time of option exercise if the Government determines that additional funding is required. This approach is designed to mitigate the historically high risk of large amounts of funds going un-obligated at the end of a given fiscal year under contracts that underrun the award amount, including option years, for unplanned reasons (i.e., the COVID-19 pandemic, economic turmoil, scientific research, etc.); mitigating this risk then, in turn, frees up those current year funds for other mission-critical efforts.

For example, during the course of Option Year 2, the Office of Scientific Coordination (OSC) takes on additional research which results in an increased workload for the Pathology contractor. The Government may then exercise the Increased Quantity-Separately Priced Line Item for that line item, in any amount up to the ceiling amount of $908,032. Let’s say the Government exercises that line item for $400,000 to adequately fund the remainder of that fiscal year. This leaves an un-obligated amount of $508,032, which can then be used to fund other mission-critical requirements for that fiscal year that may not otherwise have had funding. Traditionally, the additional option line item would have been exercised in the full amount of $908,032; if the contract only required an additional $400,000, then the remaining $508,032 would have been unavailable for the remainder of the fiscal year and therefore not eligible for de-obligation until the contract has expired.

Q2: Reference: Incumbent eligibility to respond to solicitation Is the incumbent eligible to bid on this requirement?

A2: Yes.

Q3: Reference: Attachment 2 – Pricing Schedule Can the government clarify what is meant by "Subcontractors will be paid at the same hourly rate as the prime"?

A3: This means that in the contract, the hourly rates for subcontractors and prime contractor employees will be the same for each labor category. The government will not have separate labor rates in the contract for subcontractors vs prime employees with the same labor category title. This simplifies the pricing structure and ensures consistency across all personnel performing work under the contract, regardless of whether they are employed by the prime contractor or a subcontractor.

For example, if the contract rate for a 'Pathologist' is $100 per hour, this rate applies to both prime contractor employees and subcontractors in that category. However, if a subcontractor's actual labor rate is lower than the contract rate, the Contractor is to invoice the government at a discounted rate for that subcontractor's work.

Q4: Reference: Attachment 2 – Pricing Schedule Would the government reconsider requiring prime rates and subcontractor rates to be the same as there are costs associated with priming to a subcontractor?

A4: The government will maintain the requirement for prime and subcontractor rates to be the same in the contract. This approach is intended to simplify the pricing structure and ensure consistency across all personnel. See Question 3 answer. Also see solicitation page 62 “Loaded hourly rates shall be applicable to Subcontractors.” And page 62 “Loaded hourly rates shall be applicable to Subcontractors; however, discounts for subcontract billable rates maybe be used when invoicing.”