Att L1 - ASI TPMS SAMPLE TASK removed.docx

N00421-27-R-1008 Attachment L1 Attachment L1 - Instructions, Conditions and Notices to Bidders (SEP 2026)

PART A: GENERAL INSTRUCTIONS

1.0 GENERAL

All Offers must be UNCLASSIFIED.

1.1 This Request For Offer (RFO) is a Small Business Set-aside competition in accordance with FAR 52.219-6 Notice of Total Small Business Set-Aside. Only qualified businesses that currently hold a SeaPort- Next Generation (NxG) MAC will be considered for Task Order (TO) award. The Government intends to award a single TO as a result of this competition. This competition will be conducted using Fair Opportunity Procedures in accordance with Federal Acquisition Regulation (FAR) 16.507-2. Contractors are advised that this RFO is not being conducted under FAR Subpart 15.3. The Contractor must prepare and provide Offers in accordance with the instructions provided herein.

1.2 The Contractor must submit sufficient information, in accordance with the instructions in Section J, Attachment L1, to clearly demonstrate a thorough understanding of and compliance with all aspects of the RFO. In preparing the Offer, Contractors are advised that quality of information provided is more important than quantity. The Offer must not include information unrelated to the specific requirements of Section J, Attachment L1, nor must it contain elaborate brochures or other presentation material beyond what is necessary for a complete and effective response. The burden of proof for all substantiation within the Offer rests with the Contractor.

Information must not be repeated in multiple volumes. Detailed information must be included in the most logical place and where overlap exists, summarized and cross-referenced in other sections. Cost information (e.g., dollar values and/or hourly rates) must appear only in Volume 2– Cost/Price.

1.3 The Contractor must respond to all requirements of the RFO without altering or rearranging the structure of the RFO.

1.4 Alternate Offers are not acceptable. Taking exception or deviating from any term or condition of the RFO may render the Offer ineligible for award, unless the RFO expressly authorizes such an exception or deviation regarding that specific term or condition.

1.5 As used in this RFO, the following terms are defined:

“Contractor” means the prime contractor or Joint Venture with its CAGE code identified in Block 15A on Standard Form (SF) 33 Solicitation, Offer, and Award.

“Subcontractor” means any supplier, distributor, vendor, or firm that furnishes supplies or services to or for a prime contractor.

“Principal Subcontractor” means a subcontractor who provides at least 20% of the proposed total cost/price (excluding the Contractor’s profit/fee) of the Contract/Task Order, or provides one or more Key Personnel.

“Interchanges” means fluid interaction(s) between the Contracting Officer and the Contractor(s) that may address any aspect of the Offer and may or may not be documented in real time. Interchanges may be conducted at any time and may be conducted with one, some, none, or all of the Contractors who submitted an Offer.

2.0 OFFER FORMAT

2.1 The Offer must be structured so that its volume/paragraph number matches the corresponding volume/paragraph numbering in Section J, Attachment L1 – Instructions to Contractors, "Part B: Specific Instructions”. The Contractor may add lower tier subparagraphs. If the Contractor does not provide a response to a specific paragraph, a rationale must be included.

2.2 The Contractor must use Microsoft Office (MS) 2016 compatible software, and Adobe software, if applicable, to develop the Offer. Any Adobe documents, letters, other signed documents, and evidence of compliance must be provided as a fully searchable Portable Document Format (.pdf) file. Numerical data presented in MS Office formats must not be presented as images (e.g., pasted as a picture out of an MS Excel file). MS Excel spreadsheets must use formulas and functions to the maximum extent practicable. Use of software other than MS Office 2016 is prohibited unless explicitly authorized for non-Adobe PDF or non-MS Office submissions. The Contractor must provide the Government with full unprotected, and unlocked access to all MS Excel files and underlying data. If the Government is unable to access any document, the Offer may not be evaluated or considered for award.

2.3 The Contractor must submit the Offer in separate volumes in accordance with the naming convention and page limitations specified in Table 1. Any pages in excess of the page limitations specified in Table 1 will not be considered or evaluated. Adobe/.pdf documents page limitations will be enforced and applied to the printed version of the document. As such, text and/or information included via a “text overflow indicator” (plus sign at the bottom of the text) will not be evaluated. “Front matter” - such as a cover letter/page, table of contents, and lists of definitions or acronyms - does not count towards the page limits. Any technical or cost information submitted within the “front matter” will not be considered or evaluated.

Each Volume or Attachment must be submitted as a single file whenever possible. File names must follow the prescribed naming convention and include no more than three letters identifying the Contractor (e.g., ABC_V1_AttT1.docx; RST_V2_AttC1.xlsx).

Photographs and pictures are not permitted. Do not include hyperlinks, embed sound,or video files, scrollable content blocks, or ZIP files. Tables are permitted.

Table 1 – Offer Naming Convention and Page Limitations

only Microsoft Word 2016/.docx

Attachment P2 only Adobe Acrobat/.pdf

Attachment C1 only Microsoft Excel 2016/.xlsx

Attachment C2 only Microsoft Word 2016/.docx or Adobe Acrobat/.pdf

Annex 1

Annex 2

2.4 Each volume must contain the following information:

· Cover and title page

· Title of Offer and Offer number as applicable

· Contractor’s or Subcontractor’s name, address, CAGE Code, and Point of Contact (POC) (Name) and Contact Information (Email Address and Phone Number)

· Contractor’s SeaPort-NxG MAC contract number (Contractor only)

· RFO number

· Offer volume number

· Table of Contents (The table of contents must provide sufficient detail to enable easy location of important elements)

2.5 Offers must be formatted using letter-sized (8.5” x 11”) pages, single-spaced, with one-inch margins all around. Pages must be numbered sequentially. Use 12-point Times New Roman font, without compressed or condensed spacing. between lines or characters to circumvent the provided page limits. When using Government-supplied templates (i.e., Attachments T1, T2, P1, P2, C1, C2, and C3), do not modify the font or scaling, except that headers and footers may be reduced to 9-point font size. Contractors may remove the turquoise highlighted instruction text from Attachment T1.

To ensure clarity and efficiency in data presentation, all graphs, charts, and tables submitted as attachments must adhere to specific formatting guidelines. The content within these visual aids should be rendered in 10-point Times New Roman font, single-spaced, without any reduction in font size. Contractors should exercise discretion in utilizing these formats, opting for them only when they effectively convey information. To facilitate accurate data interpretation, a grid should be incorporated into each graph, chart, and table, enabling direct reading of values. Acceptable image formats are JPEG and PNG. The Contractor is encouraged to simplify the color palette used in creating figures; minimize size of graphics files; and avoid scanned images.

2.6 The Contractor bears full responsibility for ensuring the integrity of all electronic Offers submitted, including the absence of any viruses or malicious software. Prior to submission, the Contractor must perform a comprehensive anti-virus scan on all electronic Offer documents. As a condition of acceptance, the Contractor must certify within the Offer cover letter that all electronic information delivered throughout the evaluation process, including the original Offer, responses to interchanges, and any revised Offers, has been thoroughly scanned and confirmed to be free of viruses. This certification must explicitly identify the specific anti-virus software utilized, its version number, and the virus definition file employed in the scan.

2.7 The Volume 3 Cost/Price attachments must be submitted as separate files. The Contractor and Subcontractor responses in Attachment C1 must be unprotected and unlocked, with formulas intact to show mathematical operations and the spreadsheets must be formatted on letter size (8.5” X 11”) paper.

3.0 RFO QUESTIONS

3.1 Questions regarding the RFO must be submitted via email to the Contract Specialist at olivia.e.bossert.civ@us.navy.mil and to the Contracting Officer at carolyn.a.emmart.civ@us.navy.mil. Each question or comment should reference the applicable document, page number, and paragraph number. Contractors must not include any proprietary information in a question, because the Government will provide the question and answer to all potential Contractors. All RFO questions must be submitted no later than 12:30 p.m. Eastern Time on the 14th calendar day after the date that this RFO was issued. The Government is under no obligation to answer questions received after that date but may answer the question if time permits.

4.0 FAIR OPPORTUNITY OFFER

Contractors/Subcontractors must not submit hard copies of the Offer.

4.1 All volumes of the Offer must be submitted electronically through the Solicitation Module of the Procurement Integrated Enterprise Environment (PIEE) at https://piee.eb.mil under RFO Number N00421-27-R-1008. No other submissions, such as mail, hand-carried, or other electronic system (e.g., DOD SAFE) are authorized by the RFO unless specifically authorized by the Contracting Officer pursuant to paragraph 4.2 below. For instructions on how to post an Offer, refer to the Posting Offer demonstration: https://pieetraining.eb.mil/wbt/sol/Posting_Offer.pdf.

4.1.1 Offers must be marked “Controlled Unclassified Information” and “Source Selection Information – See FAR 2.101 and 3.104”.

CUI Marking:

Controlled by: Department of Navy Controlled by: NAWCAD WOLF Procurement Group CUI Category: SSEL Distribution: DL Only POC: Olivia Bossert, olivia.e.bossert.civ@us.navy.mil

4.1.2 It is the Contractor’s responsibility to follow the registration instructions found on the PIEE website. It is advised that all potential prime contractors and their subcontractors ensure the proper company POC’s are registered in the site based on their CAGE codes and have the proper roles assigned well in advance of the RFO closing date. Subcontractors are only required to register in PIEE if they want to submit their proprietary Offer information separate from the prime Offer. Documents submitted by the subcontractor directly to the Government must have the prime contractor’s name, CAGE, and RFO number on the first page of the document.

4.1.3 It is the contractor’s responsibility to confirm receipt of Offers and all electronic communications. Screen shots of the submission should be taken to validate that a submission was accepted in the PIEE system against this solicitation. The Government is not obligated to search for incorrectly submitted Offers in PIEE.

4.1.4 The submission date for all Volumes must be no later than the date and time specified in Block 9 of the SF 33 of the RFO. Contractors are highly encouraged to submit electronic Offers by 5:00 p.m. Eastern Time one business day prior to the date specified in the RFO for receipt of Offers (See FAR 15.107(b)(i)).

4.1.5 If there is an unanticipated PIEE System outage within 24 hours of the Offer due date and the outage has interrupted normal Government processes so that Offers cannot be received by the exact time specified in the RFO, the contractor must immediately notify the Contracting Officer. This notification must occur prior to the Offer submission deadline and must be made in writing. The notification may be in conjunction with verbal notification, but verbal notification alone must not be sufficient. The contractor must obtain written approval from the Contracting Officer to submit the Offer via an alternate method as shown in paragraph 4.2 or the Contracting Officer may advise the contractor that the Government will follow the procedures set forth in FAR 15.107(c) to amend the RFO closing date.

4.1.6 In the event that the Contractor alleges technical difficulties and does not notify the Contracting Officer until after the closing date and time, the Contracting Officer will make a determination, based on the RFO instructions, if the Contractor’s late task order proposal submission is accepted.

4.2 The following alternate methods may be utilized when authorized by the Contracting Officer in accordance with paragraph 4.1.5.

4.2.1 Contractor Offers Submitted by Carrier: The contractor must submit electronic CD-ROM Offers via a commercial carrier with next-day delivery and provide the Government with a tracking number. The Contractor must use the address provided below:

NAWCAD Procurement Group Olivia Bossert and Carolyn Emmart 47060 Liljencrantz Road, Bldg. 433 Patuxent River, MD 20670 RFO Number: N00421-2-R-1008

4.2.2 Hand Carried Offers: Hand carried Offers must be delivered to the address above, attention Carolyn Emmart, Contracting Officer (240-587-9334) and Olivia Bossert, Contract Specialist (771-237-1344). If an Offer or amendment is hand carried, the Contractor must have current base access to deliver the Offer. Without base access, the Contractor may not get beyond the installation security gate to deliver the Offer. Guards are not authorized to accept Offers. Delivery time must be coordinated with the contracting office to ensure availability to sign for the package.

4.2.3 Regardless of which alternate method is used, the Contractor must package the CD-ROMs in the most efficient manner possible, grouping like Volumes to the maximum extent possible. Each Volume must be on a separate CD- ROM. The package must include all Offer Volumes including the digitally signed document(s) submitted as part of the Cost/Price Volume. The package must include a packing slip detailing the contents to include the title and Volume number.

4.2.4 The package must be stamped or marked “Controlled Unclassified Information” and “Source Selection Information – See FAR 2.101 and 3.104.”

CUI Marking:

Controlled by: Department of Navy Controlled by: NAWCAD WOLF Procurement Group CUI Category: SSEL Distribution: DL Only POC: Olivia Bossert, olivia.e.bossert.civ@us.navy.mil

PART B: SPECIFIC INSTRUCTIONS

1.0 VOLUME 1: TECHNICAL

This volume must not contain any reference to cost/price aspects of the Offer.

To be eligible for award, the Contractor must provide information in accordance with the directions below. The Contractor must provide its response to Volume 1 - Technical within the following two documents. No other format will be considered.

Key Personnel (Attachment Tl) Sample Tasks (Attachment T2)

1.1 KEY PERSONNEL

The Contractor must provide a completed Attachment Tl for each Key Personnel proposed. Each individual proposed as Key Personnel must have a separate Attachment Tl, with Parts I-IV and the Qualification Matrix completed for each submission.

The following definitions apply:

• "contingent hire" is an individual who has committed, under a signed Letter of Commitment, to being employed by the Contractor with a stated salary, if the Contractor is awarded the TO.

• "prospective hire" is an individual that the Contractor has committed to hiring if the Contractor is awarded the TO whose identity may not be known until after TO award.

• "current personnel" is an individual currently on the Contractor's or one of the proposed Subcontractor's payroll.

Only current or contingent hire personnel may be proposed as Key Personnel. No prospective hires may be proposed as Key Personnel.

1.1.3 Within Attachment T1 (Parts I – IV), the Contractor must demonstrate that each proposed Key Personnel meets the minimum qualifications stated in Section J, Attachment 01 - SOW, Paragraph 3.4 for the applicable labor category. All experience requirements (e.g., functional experience and any specific experience such as leading a team or supervision) must be achieved by the date stated in Block 9 of the Standard Form (SF) 33 and clearly documented in Attachment T1.

The Contractor must ensure that the nature of the experience aligns with the stated requirement. For example, if five (5) years of Team Lead experience are required, the experience must include specific examples of leading a team through execution, rather than general supervisory experience. Supervisory experience reflects administrative oversight of personnel. If a labor category requires supervisory experience, the terms “supervisor,” “supervised,” or “supervision” should be used, rather than “team lead,” “leader,” or “manager,” when describing duties involving personnel supervision.

1.1.4 In the Key Personnel Qualification Matrix section of Attachment T1, the Contractor must explain how each proposed Key Personnel’s experience meets the minimum qualifications in Section J, Attachment 01 - SOW, Paragraph 3.4. Only experience documented in the “Resume” Section (Parts I – IV) of the Attachment T1 will be considered.

1.1.5 The Government may verify experience, education, certifications, and clearances.

1.2 Reserved

2.0 VOLUME 2: PAST PERFORMANCE

To be eligible for award, the Contractor must adhere to the directions and submit the following information under Volume 2 – Past Performance.

1. The Contractor must complete and submit an Attachment P1, “Past Performance Information Form”. No other format will be considered.

1. If necessary, the Contractor must complete and submit an Attachment P2, “Contractor Performance Assessment Questionnaire (CPAQ)” in accordance with Section J, Attachment L1, Part B, Paragraph 2.6. No other format will be considered.

Additionally, Contractors must separately submit Annex 1 – Past Performance Supporting Documents and Annex 2 – Past Performance CRM. These Annexes are not physically a component of Volume 2 – Past Performance but do support the information submitted within Volume 2 – Past Performance.

2.2.1 Contractors must only reference one (1) contract or one (1) task/delivery order within each Attachment P1, Past Performance Information Form.

2.2.1.1 Contractors must not provide a Multiple Award Contract (MAC) IDIQ as a contract reference and instead must identify a specific task/delivery order as the contract reference within a single Attachment P1, Past Performance Information Form. Since Contractors must compete for orders under a MAC IDIQ, the ceiling value and complexity of the MAC IDIQ are not representative of one particular Contractor. A Contractor’s task/delivery order issued against the MAC IDIQ will provide the Government more accurate insight to recency, relevancy, and complexity of the contract reference as it relates to this RFO.

2.2.1.2 If Contractors choose to use a Single Award (SA) Indefinite Delivery Indefinite Quantity (IDIQ) contract, either the SA IDIQ contract itself or a specific task/delivery order issued against the SA IDIQ can be provided as the contract reference within a single Attachment P1, Past Performance Information Form. Contractors are encouraged to consider which (the SA IDIQ or the TO/DO) a CPARS is completed against when selecting which to reference within an Attachment P1, Past Performance Information Form.

2.2.2 For contract references (contract or delivery/task order) where the Contractor performed as a Subcontractor, the Contractor must clearly identify the applicable portion of the contract or delivery/task order requirements that they performed.

Example:

Contract Reference Number (contract or delivery/task order) identified in Attachment P1:

2.6 The primary source of past performance information will be CPARS. If a CPAR exists for multiple years for the same contract/order, all periods of performance within the recency period specified above, for that contract/order, will be used for evaluation. In the event a CPAR does not exist for a contract reference (contract or delivery/task order), and the past performance is for a Government contract/order, the Contractor must submit an Attachment P2, Contractor Performance Assessment Questionnaire (CPAQ), to the Program Manager, or Contracting Officer Representative (COR), or Technical Point of Contact (TPOC). The Program Manager, or COR, or TPOC must be a Government employee and will be the Assessing Official (person completing the CPAQ). In the event a contract reference (contract or delivery/task order) is for past performance of a commercial contract, not in support of a Government requirement, then the Contractor must submit an Attachment P2, CPAQ to the commercial entity, and the Assessing Official (person completing the CPAQ) is not required to be a Government employee. The Contractor must include instructions for the Assessing Official to send completed questionnaires within two (2) weeks of its receipt via e-mail to Olivia Bossert, at olivia.e.bossert.civ@us.navy.mil and Carolyn Emmart, at carolyn.a.emmart.civ@us.navy.mil, thereby allowing the Program Manager, COR, or TPOC approximately two (2) weeks to complete their response.

All CPAQs should be received by Olivia Bossert and Carolyn Emmart by the RFO closing date and time.

3.0 VOLUME 3: COST/PRICE

(a) To be eligible for award, the Contractor and Subcontractors must adhere to the directions and submit the following information under Volume 3 – Cost/Price.

(1) The Contractor and all Subcontractors proposing a cost reimbursable contract type (e.g. Cost Plus Award Fee (CPAF), Cost Plus Fixed Fee (CPFF), etc.) must complete and submit an Attachment C1 - Cost Reimbursable Workbook. No other format will be evaluated.

(2) The Contractor and all Subcontractors proposing a cost reimbursable contract type must complete and submit an Attachment C2 - Cost Reimbursable Narrative. No other format will be evaluated.

(3) All Subcontractors proposing a contract type other than cost reimbursable (e.g. Firm Fixed Price (FFP), Firm Fixed Price Level of Effort (FFP LOE), Time and Material (T&M), etc.) must only complete and submit Attachment C3 - Fixed/T&M Price Narrative (no Attachment C1 required). No other format will be evaluated.

(b) Unpriced subcontractors must not be proposed.

(c) Offers must be valid for at least 180 calendar days after being submitted.

3.1 Cost Reimbursable Workbook, Attachment C1

3.1.1 This paragraph applies only to the Prime Contractor. The Contractor must submit a completed Cost Workbook that contains pricing for all requirements in the SOW and all CLINs for the base year and option years 1-4. The contractor must not propose costs/price associated with FAR 52.217-8 Option to Extend Services.

Section B is a worksheet within Attachment C1 and will be auto populated based on the Cost Summary worksheet within Attachment C1. Specifically, Section B values will be based on the ‘TO Award Total Labor Cost Plus Fixed Fee (CPFF)’ row values within the Cost Summary worksheet. The percentages below will be applied to the total values for each PoP (eg. Base year, Option Year 1, etc.) to automatically calculate appropriation CLIN ceiling values within each PoP. The Contractor is responsible for ensuring the accumulated totals of CLINs for each PoP and for the overall total proposed cost/price of the entire effort within the Section B worksheet are consistent with the values in the ‘TO Award Total Labor CPFF’ row of the Cost Summary worksheet. In the event of any discrepancy between the cost/price information in the Section B worksheet and the Cost Summary Worksheet, both within Attachment C1, the values in the Section B worksheet will prevail and be considered final. Please be aware that such discrepancies may impact the fair and reasonableness assessment of the Offer and could affect eligibility for TO award.

3.1.2 Instructions for Completing Attachment C1

The Contractor must complete Attachment C1 following the “Instructions” worksheet within Attachment C1. The Subcontractor must follow the specific instructions for Subcontractors within the “Instructions” worksheet of Attachment C1. The Prime Contractor and Subcontractors are required to provide their inputs within the "Indirect Rates and Fee" and "Cost Summary" worksheets of Attachment C1.

3.1.3 Cost Buildup and Labor Rates

3.1.3.1 For the Contractor: The Contractor must also complete the "Fully Burdened Labor Rates" (FBLRs) worksheet (see Section J, Attachment L1, Part B, Paragraph 3.3.3) in accordance with the “Instructions” worksheet within Attachment C1. FBLRs are defined as direct labor rates plus all applicable burdens, including indirect rates, fees, and subcontractor pass-through costs. For Subcontractor labor, the Contractor's Attachment C1 must show FBLRs that include any pass-through charges, such as handling fees. The Contractor must fully disclose the buildup of its proposed cost/price and must not use fully burdened hourly rates when pricing the labor for its own employees in the "Cost Summary" worksheet.

3.1.3.2 For Subcontractors: If a Subcontractor proposes a cost-reimbursable contract type and uses FBLRs in its Offer to the Contractor, the Subcontractor must provide its own separate Attachment C1 to the Government, detailing the buildup of those rates. Subcontractors must document and provide an explanation (See Section J, Attachment L1, Part B, Paragraph 3.3.7) if its fully burdened labor rates derived from its own Attachment C1 do not match the fully burdened labor rates provided in its Offer to the Contractor.

3.1.4 Minimum Labor Cost. The total labor cost of this requirement is expected to exceed $44,206,048. The minimum amount is based on the fully burdened labor cost, including fee, for the entire period of performance, which covers the base period and all option periods. This calculation does not include Other Direct Costs (ODCs) or the potential six-month task order extension under FAR 52.217-8. Any Offer that does not meet the minimum dollar amount established must include a justification that explains why the Offer is below the minimum. The justification must be included as an Enclosure to Attachment C2.

3.2 Cost Reimbursable Narrative, Attachment C2 (Part I – Administrative Information)

3.2.1 The Contractor and Subcontractors must complete Part I of Attachment C2 in accordance with the instructions within Attachment C2.

3.2.2 The Contractor must provide as an Enclosure to Attachment C2 the following:

3.2.2.1 A signed SF33 for the RFO and a signed SF30 for each amendment.

3.2.3 The Contractor and Subcontractors must provide as an Enclosure to Attachment C2 the following:

3.2.3.1 The most current Defense Contract Audit Agency (DCAA) Direct and/or Indirect Rate Approval Letters; DCAA Forward Pricing Rate Agreement or Recommendation; and/or Defense Contract Management Agency (DCMA) Letters (such as accounting system letters, property management system letters, etc.), as applicable.

3.2.3.2 A completed Section K of the RFO.

3.2.3.3 Signed Representations, Certifications, and Acknowledgements and/or System for Award Management (SAM).

3.2.3.4 An OCI disclosure and OCI Mitigation Plan, if applicable, based on the Contractor’s, and Subcontractor’s, completion of KTXT.209-9511, Organizational Conflicts of Interest Representation (Services).

3.2.3.5 Letters of Commitment, see paragraph 3.3.1.1.3 below.

3.2.4 The Contractor must provide documentation verifying that it has an adequate and acceptable accounting system in accordance with DFARS 252.242-7999, Accounting System Administration, as an Enclosure to Attachment C2.

3.2.4.1 If the Contractor's accounting system has not been reviewed and deemed adequate by DCAA or DCMA, the Contractor must provide the following:

• A statement in Table 4 of the cost/price narrative stating that its Accounting System has not been reviewed or determined adequate by DCAA or DCMA (as applicable).

• A completed “Pre-award Survey of Prospective Accounting System Checklist” (located at: https://www.dcaa.mil/Checklists-Tools/Pre-award-Accounting-System-Adequacy-Checklist/). This checklist must be provided as an Enclosure to Attachment C2.

Please be advised that the Government may request a Pre-award Survey of a Prospective Contractor Accounting System through DCAA in advance of TO award using the checklist submitted with the Offer. Contractors are reminded of their obligation to maintain an adequate accounting system as defined by DFARS 252.242-7999. If the Government cannot determine the adequacy of the Contractor's accounting system through the DCAA's Pre-Award Survey, the Contractor may be deemed non-responsible and ineligible for TO award. Additional information about the audit process can be found at the DCAA website at https://www.dcaa.mil/Guidance/Audit-Process-Overview/.

3.2.5 Subcontractors proposing a cost-reimbursable subcontract must provide documentation verifying their accounting system's adequacy and acceptability, as per DFARS 252.242-7999, as an enclosure to Attachment C2.

3.2.5.1 Subcontractors whose accounting systems have not been deemed adequate by DCAA or DCMA are ineligible for cost-reimbursable subcontracts.

3.3 Cost Reimbursable Narrative, Attachment C2 (Parts II – XV)

3.3.1 The Contractor and Subcontractors must provide a cost narrative that outlines all ground rules and assumptions made while preparing the Cost/Price Offer and justifies the basis for each cost element listed below:

3.3.1.1 Direct labor rates. The Contractor and Subcontractors must submit unburdened labor rates for all proposed personnel (current, contingent, and prospective hires). If composite or category averages are used, provide a detailed breakdown and explanation of how these rates were developed. Include a narrative describing the derivation of labor rates and the use of uncompensated overtime, if applicable.

3.3.1.1.1 Current Employees. For all proposed current employees, the Contractor and Subcontractors must provide payroll verification by completing Table 6 – Hourly Direct Labor Rates for Current Employees in its entirety. If there any differences between the payroll-verified rates and the proposed rates, provide a justification within Attachment C2, Part II.

3.3.1.1.2 Prospective Hires. For all proposed prospective hires, the Contractor and Subcontractors must propose direct labor rates equal to or greater than the direct labor rates stated in the “Minimum Direct Labor Rates” (MDLR) worksheet within Attachment C1.

The MDLR’s are based on the following:

Rate Tiers by Experience Level

After analyzing the Independent Government Cost Estimate (IGCE) and rates from similar contracts, the government established the following BLS percentile tiers for non-SCLS positions.:

Geographic and Alternative Data Sources

Primary Geographic Areas: For all positions, the Government used May 2025 BLS wage data for the Lexington Park, MD area.

The rates from the BLS wage data were escalated by 3.30% annually to reflect the anticipated Period of Performance (PoP) start date of this TO. The escalation rate was determined utilizing BLS Table 9, Employment Economic Cost Index for Wages and Salaries for Private Industry Workers by Occupational Group and Industry subgroup titled, “Management, professional, and related” for the 12-month period ending 30 June 2026.

3.3.1.1.3 Contingent Hires. The Contractor and Subcontractors must submit a Letter of Commitment for each contingent hire (key and non-key) as an enclosure to Attachment C2. The Letter of Commitment is a separate written agreement signed by the potential employee(s). Each Letter of Commitment must include at a minimum: the contingent hire’s name, labor category to be filling, salary information, and the contingent hire’s signature and date. No information within any Letter of Commitment must be redacted. Subcontractors must provide this information either as a separate submission or included in the Contractor's Volume 3 – Cost/Price Offer.

3.3.1.2 Escalation

3.3.1.2.1 Escalation on labor for Base Year. If necessary, the Contractor and Subcontractors must escalate their current direct labor rates to align with the anticipated PoP start date of this TO. The Contractor and Subcontractor must indicate when their company typically implements direct labor rate increases and whether a rate increase is anticipated prior to the TO PoP start date.

Proposed escalation rates must be supported by historical data. If the Contractor and/or Subcontractors do not have historical data, they must propose an escalation rate of 3.30% or higher for non-SCLS labor categories when a rate increase is anticipated prior to the TO PoP start date.

If current direct labor rates are not escalated to reflect the base period start date and the company's customary direct rate increases, and no justification is provided, the Government may adjust the proposed direct labor rates accordingly. For example, if the proposed direct labor rates are based on 2026 data and performance begins in 2027, the Contractor must escalate the rates to reflect a 2027 start.

3.3.1.2.2 Escalation on labor for Option Years. The Contractor and Subcontractors must address labor escalation for all labor categories and justify the specific escalation rates proposed in Attachment C2, Part III. The Company’s historical escalation rates for the past three years must be provided in Attachment C2, Part III, Table 7.

Offers that do not propose labor escalation or explain its absence may be considered unrealistically low. In such cases, the Government may adjust the Offer to include escalation for option years 1-4.

3.3.1.2.2.1 The Contractor and Subcontractors must propose escalation rates supported by historical data. If historical data is unavailable, an escalation rate of 3.30% or higher must be proposed for non-SCLS labor categories in option years 1-4. The 3.30% is derived using BLS Table 9, Employment Economic Cost Index for Wages and Salaries for Private Industry Workers by Occupational Group and Industry subgroup titled, “Management, professional, and related” for the 12-month period ending 30 Jun 2026.

3.3.1.3 Indirect costs (i.e., Overhead, Fringe Benefits, General & Administrative (G&A), etc.) and bases to which they apply.

The Contractor and Subcontractors must ensure consistency between the narrative description of Indirect Costs stated in Attachment C2, and how the Indirect Costs are calculated within Attachment C1.

3.3.1.3.1 The Contractor and Subcontractors must provide the last three years of historical actual indirect rates within Attachment C2, Part IV, Table 8.

3.3.1.3.2 The Contractor and Subcontractors must submit detailed justification of the proposed indirect rates in Attachment C2, Part IV. If any of the proposed Indirect rates differ from the historical actual rates and/or DCAA/DCMA information, a justification must be provided for the variance must be included in Attachment C2, Part IV.

3.3.1.4 Estimating Practices. The Contractor and Subcontractors must provide supporting information to explain its estimating practices within Attachment C2, Part V.

3.3.1.5 Profit/Fee

3.3.1.5.1 Contractors, including Subcontractors, must identify proposed fee rates, total fee amounts, and the cost elements to which the fee is being applied within Attachment C2, Part VI. Fee rates must be clearly distinguishable. Fee must not be applied to ODCs. The Contractor must ensure the proposed fee rate does not exceed fee rate stated in the Maximum Profit/Fee Rate – Applicable to Cost Plus Fixed Fee CLINs Only which is in its SeaPort-NxG MAC award.

3.3.1.5.2 (Applicable to Prime Contractors Only): Fixed fee (rounded to exactly two (2) decimal places) must be calculated based on a fee per hour methodology in accordance with HTXT.232-9510, Payment of Fixed Fee (NAVAIR)(OCT 2005). The fee per hour must be calculated by dividing the total Fixed Fee proposed for all years of the task order by the total LOE hours. The Contractor must confirm that the total Fixed Fee value stated in Attachment C1 equals the amount derived by multiplying the proposed fee per hour and total LOE. NOTE: SEE ADDITIONAL INFORMATION (STEP 20) IN THE INSTRUCTIONS TAB OF THE C1.

3.3.1.6 ODCs by specific cost element: (i.e. Material, Travel) Contractors, including Subcontractors, must provide a narrative that addresses any assumptions made during the preparation of the cost/price proposal and discuss the basis for travel and material costs, including any indirect costs being applied to each specific cost element within Attachment C2, Part VII.

3.3.1.7 Cost of Money (COM): If claiming Cost of Money (COM) as an allowable cost, the Contractor and Subcontractors must submit a DD 1861 as an enclosure to Attachment C2 and provide calculations for the proposed amount in Attachment C2, Part VIII.

3.3.2 Price Reasonableness Determination. In accordance with FAR 15.404-8(a), the Contractor must conduct appropriate cost or price analysis to establish the reasonableness of the proposed subcontract prices. The results of these analyses must be included in its cost reimbursable narrative. Provide a detailed explanation for the basis of this determination for each proposed Subcontractor, regardless of proposed subcontract type, in Attachment C2, Part IX, or as an Enclosure.

3.3.3 Fully Burdened Labor Rates (FBLRs). The Contractor must submit annual FBLRs for all proposed personnel (current, contingent, and prospective hires) for both the Contractor and each Subcontractor, using the "Fully Burdened Labor Rates" worksheet in Attachment C1 (see Section J, Attachment L1, Part B, Paragraph 3.1.3.1). Proposed annual fully burdened labor costs/prices may be subject to the NAVAIR labor tripwire identified in Section J, Attachment M1, Part B, Paragraph 4.5. If an employee's proposed annual fully burdened labor value exceeds the labor tripwire, Contractors and Subcontractors must provide a justification in Attachment C2, Part X, explaining the reasonableness for exceeding the labor tripwire for the applicable employee(s).

3.3.4 Maximum Pass-Through Rate. The Contractor must provide its proposed pass-through rate for this TO and clearly identify the indirect burdens and bases the burdens are being applied to when calculating the pass-through rate. The Contractor must provide the pass-through rate stated within the Maximum Pass-Through Rates - Applicable to all TO types which is in its SeaPort-NxG MAC award, within Attachment C2, Part XI.

3.3.5 Reserved.

3.3.6 Investments. The Government is not soliciting any investments. However, if the proposed cost/price appears low due to a corporate decision to absorb costs (e.g., lower than usual burdens or rates), the Contractor and Subcontractors must fully identify and explain any such investments in Attachment C2, Part XIII. These investments will be incorporated into the Task Order (TO) to establish a rate cap and ensure its enforceability throughout the TO's duration.

3.3.7 Additional Information. The Contractor and Subcontractors may include additional cost/price information that does not clearly align with the preceding subparagraphs of Section J, Attachment L1, Part B, Paragraph 3.0 within Attachment C2, Part XIV.

3.3.8 Changes to Attachment C1 or Attachment C2. The Contractor and Subcontractors must include a narrative to describe any changes made to the Attachment C1 and/or C2 (provided with the RFO) within Attachment C2, Part XV.

3.3.9 Authorized Signature. The Contractor and Subcontractors must provide authorized representative information and an authorized representative signature in Attachment C2, Part XVI validating all information provided is accurate.

3.4 Fixed/T&M Price Narrative, Attachment C3

Subcontractors proposing a contract type other than cost reimbursable (e.g., FFP, FFP LOE, T&M, etc.) are not required to provide the same level of details as required under cost reimbursable Offers and must only complete and submit a Fixed/T&M Price Narrative, Attachment C3.

3.4.1 Subcontractors must complete Part I of the Attachment C3 in accordance with the instructions within Attachment C3.

3.4.2 Subcontractors must provide, as an Enclosure to Attachment C3, the following:

3.4.2.1 A completed Section K of the RFO.

3.4.2.2 An OCI disclosure and OCI Mitigation Plan, if applicable, based on the Subcontractor’s completion of KTXT.209-9511, Organizational Conflict of Interest Representation (Services).

3.4.2.3 Letter of Commitment for each proposed Contingent Hire, if proposing a Key Personnel. Required information within the Letter of Commitment is specified in Section J, Attachment L1, Part B, Paragraph 3.3.1.1.3.

3.4.3 Deviations from the information requested within Attachment C3. Subcontractors must include a narrative to describe any deviations from the information requested within Attachment C3, Part II.

3.4.4 Authorized Signature. Subcontractors must provide authorized representative information and provide an authorized representative signature in Attachment C3, Part III validating all information provided is accurate.

3.5 GOVERNMENT FURNISHED INFORMATION

3.5.1 Labor Hours

The Government estimate is 447,840.00 hours for the entire work effort, inclusive of all option periods but exclusive of the potential extension via FAR 52.217-8 Option to Extend Services. A work-year is defined as 1,920 hours exclusive of holidays and leave and must be utilized for proposal purposes.

For evaluation purposes, the Contractor must propose the labor categories and hours by location as outlined in Section J, Attachment C4 – LCAT Capacity Labor Hours.

3.5.2 Other Direct Costs (ODCs).

3.5.2.1 The Contractor must use the Government-provided "Not to Exceed" (NTE) values for Other Direct Costs (ODCs) as the capped total amounts. The Contractor is responsible for applying the applicable indirect burdens in accordance with their disclosed accounting practices to derive the allowable direct cost amounts such that, when the burdens are applied, the total does not exceed the NTE values established by the Government. If the Contractor chooses not to burden ODCs, then the Contractor must propose an H-clause (example provided below) to identify this special term and condition. No fee must be applied to ODCs.

“[CONTRACTOR NAME] recognizes that [INDIRECT COST] is typically applied to ODCs in accordance with our accounting practices. However, [CONTRACTOR NAME] did not propose [INDIRECT COST] on ODCs within the Offer, and therefore those costs are unallowable in the execution of this TO and if invoiced will be subject to FAR 52.242-3 Penalties for Unallowable Costs.”

3.5.2.2 The Government's NTE for ODCs, for the Contractor and all subcontract efforts, are listed below.

3.5.3 Incumbent Information.

This procurement, ASI TPMS, is a consolidation of two current ASI Division procurements: Airborne Systems Integration Division Management Support (ASIMS) and Rapid Acquisition Services (RAS). The incumbent Contractors/Current Contract Numbers are:

a. ASIMS Contract Number: N0042122F3011

b. RAS Contract Number: N0042122F3008