Addendum_II_-_Azucar.pdf

Solicitation AG-6395-S-16-0011 for Bulk Sugar

ADDENDUM II

1. CLARIFICATION REGARDING POSSIBLE ECONOMIC PRICE ADJUSTMENT:

□ A detailed description how the offered pricing might be subject to changes based on the world market and local market prices of sugar. An Economic Price Adjustment clause (FAR

52.216-2) may be included in the contract - Attachment 1 - and the allowable aggregate price increase percentage in the contract clause, FAR 52.216-2(c)(1), is negotiable based on the description provided.

Regarding the above requirement for the inclusion of the Economic Price Adjustment clause

(FAR 52.216-2), the detailed description should include information from the offeror such as:

how long prices would be held fixed before an initial adjustment and subsequent adjustments, what specific information will affect an Economic Price Adjustment (market price indexes, local wholesale price quotes, etc.), and what percentage of the offered price is affected by the external market conditions. The offered Economic Price Adjustment approach will be one of the evaluation factors for the best value award determination per the updated Evaluation provision

(FAR 52.212-2) included below, to replace the initial Evaluation provision from Attachment 1.

52.212-2 Evaluation—Commercial Items (OCT 2014)

(a) The Government will award a contract resulting from this solicitation to the responsible offeror whose offer conforming to the solicitation will be most advantageous to the Government, price and other factors considered. The following factors shall be used to evaluate offers:

(i) technical capability of the item offered to meet the Government requirement;

(ii) price;

(iii) past performance.

Technical capability and past performance, when combined, are equally important when compared to price. A competitive firm-fixed price, indefinite delivery, indefinite quantity award will be made to the responsible firm with the best value quote trading off expected value against probable costs. The quote, at a minimum, must meet or exceed the acceptability standards for non-cost factors: technical capability based on the SOW, and past performance.

(b) Options. The Government will evaluate offers for award purposes by adding the total price for all options to the total price for the basic requirement. The Government may determine that an offer is unacceptable if the option prices are significantly unbalanced. Evaluation of options shall not obligate the Government to exercise the option(s).

(c) A written notice of award or acceptance of an offer, mailed or otherwise furnished to the successful offeror within the time for acceptance specified in the offer, shall result in a binding contract without further action by either party. Before the offer’s specified expiration time, the Government may

Solicitation AG-6395-S-16-0011 for Bulk Sugar accept an offer (or part of an offer), whether or not there are negotiations after its receipt, unless a written notice of withdrawal is received before award.

(End of provision)

2. CLARIFICATION REGARDING THE IVA PROCESS:

Regarding the Constancia de Exencíon (Tax Exemption Certificate) for the IVA, the resulting contract will also include IVA language such that:

*The line item prices are to include the IVA. The actual net price, the amount the USDA will pay is 12% less than the price listed on the line item with the IVA.

SCHEDULE NOTES

1) The vendor’s price includes Guatemalan National Value Added Tax (12% Impuesto Valor Agregado IVA) as required by local statutes. The USDA Moscamed Program is tax exempt. The vendor will include “IVA” in their line item price and on their invoices; however, the USDA Moscamed Program will provide a Constancia de Exencíon (Tax Exemption Certificate) and pay the net price versus the price including IVA as allowed by local statutes and international treaties.

The contractor will be given the certificate after we are provided with an invoice showing the price of the IVA. Then the USDA will pay the amount, less the amount of the IVA.