SF-30R.doc

MBR-WR Long Term Stewardship – Solicitation # AG-82X9-S-12-9001 Amendment 1

USDA Forest Service 740 Simms Street

Golden, CO 80401

SAME AS BLOCK 6

MBR - WR Long Term Stewardship

9B. DATED (SEE ITEM 11)

FORMCHECKBOX

10A. MODIFICATION OF CONTRACT/ORDER NO.

10B. DATED (SEE ITEM 13)

11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

FORMCHECKBOX

The above numbered solicitation is amended as set forth in item 14. The hour and date specified for receipt of Offers FORMCHECKBOX is extended, FORMCHECKBOX is not extended.

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 Items 8 and 15, and returning _1_ copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted;

or (c) By separate letter or telegram which includes a reference to the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT 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 telegram or letter, provided each telegram or letter makes reference to the solicitation and this amendment, and is received prior to the opening hour and date specified.

12. ACCOUNTING AND APPROPRIATION DATA (If required)

13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS,

IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

THE CONTRACT ORDER NO. IN ITEM 10A.

FORMCHECKBOX

FORMCHECKBOX

B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying office, appropriation date, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b).

FORMCHECKBOX

C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:

FORMCHECKBOX

D. OTHER (Specify type of modification and authority)

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

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

This amendment to the solicitation deletes the original versions of some clauses and replaces them with revised versions; lists the show-me trip attendees; provides Procurement Technical Assistance Center contact information; provides service contract act wage rates; provides cruise information; provides updated task orders; and answers questions asked at the show-me trip. See attached pages and attachments for details.

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.

MARTIN A. MARTINEZ

(Signature of person authorized to sign)

(Signature of Contracting Officer)

Show me Trip Questions and Answers

June 25 – 27, 2012

GENERAL STATEMENTS

If the Forest Service decides to make some changes to the solicitation they will be made in writing, and posted to the Federal Business Opportunities website via an amendment.

There were some handouts at the show-me trip meeting, which included updates to the task orders posted to the Federal Business Opportunities website. These task orders are provided for discussions purposes only. Official copies of the task orders and other solicitation documents will only be made available through the Federal Business Opportunities website.

The Forest Service will perform required pre-haul road maintenance or will pay Contractor to perform required pre-haul road maintenance at the cost allowance rates listed in H.27 of the Solicitation. Contractor will be responsible for maintaining roads during haul and post haul with no compensation by the Government (see H.27).

Contractor will not be required to pay surface replacement deposits for any task orders issued under this Solicitation unless mutually agreed otherwise.

The requirement that forest product value (prices) are to be re-determined at the end of the 3rd, 6th, and 9th program years will be removed from the Solicitation. Delete the original version of K-D.3.5# in Appendix B and replace with the following:

K-D.3.5# – SCHEDULED RATE REDETERMINATION. Contracting Officer may redetermine cost allowance rates or make contractual modifications listed below at the conclusion of the 3rd, 6th, and 9th program years as set forth in this provision. Rate redetermination shall be made in accordance with the standard Forest Service methods and appraisal data in effect 45 days prior to rate redetermination. The redetermined rates will become effective 30 days later and will only apply to task orders issued after redetermined rates become effective.

In scheduled rate redeterminations, Contracting Officer may make modifications in minimum specifications for trees or products in Division A of Appendix B, road maintenance requirements in Appendix D, deposits or cost allowances in Part I Section H, logging methods in Appendix B or Part I Section H, slash disposal in Appendix B and Part I Section H, weight factors in Appendix E, and fire precautionary measures in Part I Section H. Modifications can be made to the extent that such changes are reasonably necessary to protect the interest of the United States. Such modifications shall be limited to requirements generally being included in Forest Service contracts in the Region at the time of rate redetermination and with which Contractor can reasonably comply. Such changes shall be reflected in the rate redetermination, but changes affecting rates shall not be implemented until the redetermined rates become effective.

The unit of measure is the Green Ton. The scaling method will be 100% weight scale unless otherwise mutually agreed to in writing (see Appendix B).

ATTACHMENTS TO THIS AMENDMENT

1.

Procurement Technical Assistance Centers contact information

2.

List of Show Me Trip Attendees

3.

Service Contract Act Wage Rates

4.

No Name Task Order Cruise Data

5.

Pink 895 Task Order Cruise Data

6.

Spruce Gulch Task Order Cruise Data

7.

North Deep Creek Task Order Cruise Data

8.

North Deep Creek Task Order Trees per Acre

9.

Ophir North Task Order Cruise Data

10.

Ophir North Task Order Trees per Acre

11.

Spring Creek Task Order Cruise Data

12.

Spring Creek Task Order Trees per Acre

13.

West Grouse Landing Pile Calculation Spreadhseet

QUESTIONS & ANSWERS

Q1: What percent of task orders can be sub-contracted to others?

A1: The solicitation is silent on this issue. The prime contractor will be responsible for the sub-contractor’s work. Contractor’s are encouraged to list potential sub-contractors in their proposal (see L.16, evaluation factor 1, paragraph b, 1, b).

Q2: Is the small business size standard listed in L.10 correct?

A2: No. Change the size standard from $16.5 million to $17.5 million.

Q3: Do we have to specify in our proposal whether our subcontractors are small businesses or veteran owned small businesses?

A3: Clause 52.219-9 requires large businesses to supply this information at the Contracting Officer’s request. Small businesses do not have to supply this information.

Q4: Regarding the proposal - Is there a limit on the number of pages the contractor can submit?

A4: No, however direct and concise responses to the evaluation factors is recommended.

Q5: If we submit a 20 page proposal that conforms to the solicitation, and an alternate proposal that changes a couple of items from the original proposal, does the alternate proposal have to include the 20 pages of information from the original proposal? Or can the alternate proposal state it is the same as the original except for the couple of items, and list the corresponding change in pricing?

A5: The alternate can reference the original proposal and specify the changes being made.

Q6: Are there resources available to contractors to help them submit an acceptable proposal?

A6: The Forest Service does not have this type of publication. However, the Procurement Technical Assistance Centers (PTAC) are a great resource for contractors. One of the free services they offer is the review of a contractor’s proposal. Attachment 1 to this amendment is a list of the PTAC offices in Colorado.

Q7: Regarding product removal – do saw logs, non-sawlogs and biomass have to go out on separate trucks, or can the 3 classes of products be commingled on one truck?

A7: The solicitation provides instructions on how the Forest Service will determine a weighted average cost for the 3 product classes (see page 34 of 160 in the solicitation). Using a weighted average allows loads to be commingled, except for small tree and miscellaneous biomass products which will be sorted, weighed and paid for separately unless otherwise agreed in writing. All product removed will be paid for by the contractor in accordance with the successful contractor’s bid rates in Section B.2 of the Schedule of Items (see page 33 of 160).

Q8: Does timber have to paid for prior to cutting as it is on a timber sale contract?

A8: Yes. See clause G.5. Product Payment Guarantee – Payment can be made in one of three ways – cash, bond, or stewardship credits. A Stewardship credit is money that is earned from the performance of service work (listed in section B.1 of the Schedule of Items) that the contractor chooses to trade for the value of timber instead of being paid for the service work.

Q9: Evaluation Factor “Benefits to the Local Community” – on current projects it seems like a lot of the workers’ vehicles are from out of state. Will the Forest Service hold the successful contractor accountable for what they state in their proposal regarding this evaluation factor?

A9: Yes. Contractors will be expected to provide the caliber and quality of people stated in their proposal. These people are expected to be from the locations specified in your proposal. Failure by the contractor to provide what is promised in their proposal could result in the Forest Service seeking a contract price reduction.

Q10: Is another question and answer session scheduled?

A10: No. However, as stated on page 146 of the solicitation, contractors may submit questions to Contracting Officer Martin Martinez in Golden, CO.

Q11: Are contractors required to carry workmen’s compensation insurance for their employees working on this project?

A11: Yes. Contractors must comply with all Federal, State and local laws. This includes workmen’s compensation.

Q12: Does OSHA apply.

A12: Yes. Contractors are expected to comply with all applicable OSHA regulations including, but not limited to, 29 CFR 1910.266 Logging Standards.

Q13: Are the task orders included with the solicitation representative of all future task orders?

A13: No. Refer to the Schedule of Items for the many different treatments that may be done over the 10 year life of this project.

Q14: Will partial payments be allowed?

A14: The payment clause states that partial payments may be made for accepted work. To be accepted, all of the work has to meet the contract specifications. A task order may have several different payment units. Once a payment unit meets all contract specifications, payment may be made for that payment unit.

Q15: If a fire burns up the trees on an active task order, will the acres be replaced? How will the contractor be compensated for lost timber?

A15: The Termination for Convenience of the Government clause (referenced in section I) and Appendix B, paragraph I.1.2 Liability for Loss address this issue.

Q16: If the successful contractor sells his company in the future, can the contract transfer to the new owners?

A16: Yes. This is referred to as a novation agreement, and is discussed in detail in Federal Acquisition Regulations 42.12.

Q17: Why are there no Service Contract Act wage rates on the Federal Business Opportunities website?

A17: They will be added as an attachment 3 to this amendment.

Q18: How does the Forest Service estimate forest products (sawtimber, non-sawtimber and biomass) during cruising?

A18: Refer to Appendix E, Section 1. Forest Product Volume Measurements. Forest Service personnel will estimate individual tree defect and forest product using ocular estimation where applicable.

Q19: What are contractors required to submit in their proposals?

A19: Instructions for preparation of bid proposals is listed in the solicitation at L.16, paragraph A, B, and C.

Q20: How will benefit to the local community be evaluated?

A20: Benefit to the local community will be evaluated using the sub-criteria listed in the solicitation at M.2, paragraph A, number 2.

Q21: Can logging operations be conducted in the winter?

A21: This is generally discussed in the solicitation at C.2, a. iii and in Section F. The timing of operations may be restricted as listed in F.4.1, F.4.1.1 and/or F.4.1.2 if specified in the individual task order.

Q22: Can you clarify wildlife reserve trees?

A22: Wildlife reserve trees are discussed in the solicitation at H.9.1 and H.9.2.

Q23: Can logging operations be conducted during big game rifle seasons?

A23: This is generally discussed in the solicitation at C.2, a. iii and in Section F. The timing of operations may be restricted as listed in F.4.1, F.4.1.1 and/or F.4.1.2 if specified in the individual task order.

Q24: Can winter range restrictions be waived?

A24: This is generally discussed in the solicitation at C.2, a. iii and in Section F. A waiver of restrictions may be requested by the Contractor and the Forest Service may consider accepting the request. Approval will be based on site specific conditions at the time of the request in coordination with Resource Specialists and the Contracting Officer’s Representative.

Q25: Would the Forest Service consider including a cost adjustment for adverse skidding situations similar to the log skid adjustment in Sections B.1.a and B.1.b of the Solicitation?

A25: Yes. In Section B.1a and B.1.b of the Schedule of Items add the following paragraphs after the AVERAGE SKID DISTANCE ADJUSTMENT clause:

ADVERSE SKID ADJUSTMENT – Applies to items 13A thru 18J, 20A thru 20H, 21A thru 21D, 22A thru 22Y, & 24A thru 24E)

Adverse Skid Adjustment – An adjustment will be made to the amount paid for work requiring removal of non-sawtimber and/or biomass products when more than 20% of the volume in a unit requires adverse (uphill) skidding on slopes exceeding +20% for a distance of 200 feet or more.

The adjustment will be calculated as follows:

Adjustment = $2 + [$.0103 X (Average adverse skid distance in feet – 200 feet)]

EXAMPLE : The products on 20 acres of the 50 acre unit will be adverse skid on slopes > 20%. The average skid distance (AYD) for the adverse skid is 900 feet. The average number of tons/acre of forest products to be adverse skid is 50 tons/acre (estimated from cruise). The bid price for the service work in the unit is $550 per acre.

$2 + [$0.0103 X (900’ – 200’)] =$9.21/ ton adjustment

$9.21/ton X 50 tons/ acre x (20 acres of adverse skid /50 acres total) = $180.20/ acre adjustment

$550 / acre + $180.20 / acre adjustment = $730.20 per acre

$730.20 per acres would be the adjusted price paid for the service work in this unit.

Q26: The Consumer Price Index used for the Economic Price Adjustment in H.45 of the Solicitation does not adequately address changes in the cost of diesel fuel. Would the Forest Service consider using another Index to address changes in fuel prices over the term of the contract?

A26: Yes. The Forest Service will amend the Solicitation to include a Diesel Fuel adjustment on a task order basis. The CPI table used for the annual Economic Price Adjustment will also be changed.

Delete the original clause at H.45 ECONOMIC PRICE ADJUSTMENT AND RATE RETERMINATION, and replace with the following:

H.45 ECONOMIC PRICE ADJUSTMENT AND RATE RETERMINATION

Economic Price Adjustment: There are 3 categories of items for which prices need to be adjusted throughout the term of the contract:

1) service work (Section B.1, B.1.a, and B.1.b),

2) road maintenance (H.27 and Appendix D)

3) temporary road construction (H.25 and Appendix C).

The Base Line for these items is hereby established as the prices reflected on the first year of the contract.

These adjustments are clarified below.

A). Service Work: The Government will apply two indexes to adjust the price of the service work. The adjustments will be made as described below.

The first adjustment will be made on an annual basis using the index titled: Consumer Price Index (CPI) – Urban Wage Earners and Clerical Workers, Area: U.S. City Average, Series ID: CWUR0000SA0L1E, Item: All items less food and energy. The base period price will be the price provided by the contractor and accepted by the government at the time of contract award. An annual price adjustment will be made within 40 calendar days of the anniversary date of contract award. The annual rate of price increase or decrease will be applied to each price listed in Sections B.1 and B.1A, and B.1.b. The new prices will be rounded to the nearest penny. The new prices will not be retroactive to any outstanding task orders; the new prices will only apply to task orders issued after the date of price adjustment. Regardless of the increase or decrease of the referenced index, the government limits the annual increase or decrease in prices that is based on this index to no more than 4% in any given year. Increases in price above 4% in any given year shall be borne by the contractor. Decreases in price greater than 4% in any given year shall be borne by the government. The CPI referenced above is published by the U.S. Department of Labor, Bureau of Labor Statistics and can be found on their website at: http://www.bls.gov/cpi/home.htm. Once the annual price adjustment has been incorporated into the contract, the prices will not be changed even if the Bureau of Labor Statistics issues revised numbers for the period of adjustment. This first adjustment is to compensate the contractor for annual increases in labor and materials - exclusive of diesel fuel. It is intended to compensate the contractor for any increased wage and/or fringe benefits required by the incorporation of an updated wage determination under the Service Contract Act. If the contractor claims that this adjustment is inadequate to compensate for an updated wage determination, the contracting officer shall take into consideration the amount of adjustment made herein and subtract that amount from any amount determined to be due under the Service Contract Act.

The second adjustment, referred to as the Diesel Adjustment, will be made and applied to each task order at the time of issuance. The Diesel Adjustment will apply to All Schedule Item Numbers in B.1. The Diesel Adjustment will be made based on data provided by the Energy Information Administration. The statistic that will be used is: Weekly Retail On-Highway Diesel Prices, Average All Types, Region: Rocky Mountain. This statistic is currently available on the Energy Information Administration’s website at: http://www.eia.doe.gov/. The Base Period Price will be $ 3.40 per gallon. The base period price will not change; it will remain the same throughout the contract term. The Item Number Prices for the Task Order will be determined by applying the most recent Weekly Retail price information available, in the manner described by the 3 formulas below.

(Weekly Retail Price – Base Period Price) X .10 = Percentage of Adjustment

Base Period Price

(Percentage of Adjustment X Current Bid Item Price) = Dollar value of Adjustment

Dollar value of Adjustment + Current Bid Item Price = Item Number Price for Task Order

Here is an example of how the formulas work when the Weekly Retail Price exceeds the Base Period Price:

($4.00 - $3.40) X .1 = .0177(rounded to 4 decimal places)

$3.40

.0177 x $650.00 = $ 11.51(rounded to nearest penny)

$11.51 + $650.00 = $661.51

Here is an example of how the formulas work when the Weekly Retail Price is less than the Base Period Price:

($3.00 - $3.40) X .1 = - 0.0118(rounded to 4 decimal places)

$3.40

-0.0118 x $ 650.00 = - $ 7.67(rounded to nearest penny)

- $ 7.67 + $650.00 = $641.93

B. Road Maintenance & Temporary Road Work: Price adjustment will be made at the time of Scheduled Rate Redeterminations required under K-D.3.5# and will be based on the version of the Cost Estimating Guide for Road Construction that is in effect for Region 2 at the time of Rate Redetermination. The new prices will not be retroactive to any outstanding task orders; the new prices will only apply to task orders issued after the date of price adjustment.

C. As part of an alternate proposal, vendors may suggest a different method of calculating the price adjustments listed above, preferably one that is based on established indices.

Q27: Is there a cost allowance if the contractor is required to build road?

A27: The Forest Service will pay the contractor for cost allowance items related to construction, obliteration, and closure of temporary roads farther than ¼ mile from treatment unit boundaries. The Forest Service will not pay the contactor for any required temporary road construction, closure, or obliteration within ¼ mile from treatment unit boundaries or within treatment unit boundaries (see H.25 of the Solicitation).

Specified (non-temporary) road construction is considered to be within the scope of this contract but is not included in the Schedule of Items. If specified (non-temporary) road construction work is required it would only be added to the task order by mutual agreement with pricing negotiated between the contractor and the Forest Service (see H.48 in the Solicitation). If terms for the construction of specified roads are not mutually agreed to, or if the Forest Service believes it to be in the Governments best interest, the Forest Service has the option to have specified non-temporary road constructed by another contractor outside of this contract.

Q28: Will contractors be required to remove sawtimber size trees that have deteriorated to the point that they do not meet the minimum utilization standards for sawtimber? If so, how is the contractor compensated for removing those trees?

A28: Yes. The contractor will be required to remove and pay for sawtimber size trees that are designated for cutting and removal, even if they have deteriorated to the point that they no longer meet the minimum specification for a 10.67 merchantability factor (one 8 foot piece per tree that is approximately 1/3 sound). Minimum merchantability utilization specifications and merchantability factors are defined in FSH 2409.11a, National Forest Cubic Scaling Handbook, 5/91 as amended.

Sawtimber size trees designated for removal that do not meet the minimum merchantability factor specification of 10.67 then fall into the non-sawtimber product category and will be removed and paid for as non-sawtimber products. The non-sawtimber tree count bid categories in B.1.a and B.1.b will include non-sawtimber size trees designated for removal and sawtimber size trees that fall into the non-sawtimber category because they do not meet the 10.67 minimum merchantability factor specifications for sawtimber. Bid rates are based on the number of non-sawtimber trees designated for removal (non-sawtimber size trees plus sawtimber size trees that fall into the non-sawtimber product category because they do not meet the 10.67 minimum merchantability factor specifications.