Attachment 1 - Section B.pdf

ATTACHMENT 1

SECTION B

The purpose of this strategic buffer is to ensure access to the material, not for the Government to own the material. The vendor will keep the title and custody of the material. As a result, the Government should only be paying for the carrying burden of the material, handling costs, and contract administration for the task orders awarded under this intended Indefinite Delivery Indefinite Quantity (IDIQ) contract. The Government intends to establish as a part of the IDIQ contract a fixed price-per-pound rate for four (4) intermediate forms of titanium metal (Ti 6-4):

Billet – Military Airframes, Sheet – Armor (Areo), Round – Engines, and Plate – Armor (Ground).

These established, price-per-pound rates shall apply to all subsequent task orders issued against the IDIQ contract and will include—within the rates—the carrying costs, contract administration fee and/or overhead fee, and costs for the performance of all applicable services required by the contract performance work statement (PWS) for each of the intermediate forms.

While there are a number of different ways to potentially calculate this, a few examples are shown below (the offeror is not required to utilize these specific methods to calculate rates):

Form Cost = [(London Metals Exchange Price + Value added due to processing) * Carrying Burden of inventory + flat rate per pound handling fee] contract administration fee normalized

Form Cost = [(London Metals Exchange Price * Value Modifier per form) * Carrying Burden of inventory + flat rate per pound handling fee] contract administration fee normalized

Form Cost = [(Cost of the ingot + Value added due to processing) * Carrying Burden of inventory + flat rate per pound handling fee] contract administration fee normalized

Due to the difference in the amount of work involved for each intermediate form, the price/rate for each will be different. The vendor is expected to rotate the material as rated orders come in;

this cost should be accounted for in the price-per-pound rate. In the examples above, it would fall into the flat rate handling fee. Note that the Government will not pay a per-rotation fee under this contract; rather, the offeror will treat rotation(s) as a firm-fixed price fee incorporated into the proposed price-per-pound rate.

The offeror is required to complete the following portion of the document as a part of its price proposal. First, the offeror shall complete the UNIT PRICE and TOTAL AMOUNT within the tables for each of the Contract Line Item Numbers (CLINs) X001, X002, X003, and X004 (for the base and two option periods). This portion is based on current Government estimates of future requirements, which are subject to change. This portion is for evaluation purposes, as it represents an approximate, estimated overall contract value.

Next, below each CLIN table, the offeror is required to provide a Per-Pound Rate for each of the intermediate forms represented by the CLIN(s). The Government intends to establish these price-per-pound rates as a part of the IDIQ contract award, which shall then form the basis for pricing all subsequent task orders issued against the IDIQ contract.

BASE ORDERING PERIOD

Task orders issued under the Base Ordering Period will be represented by the 000X series of Contract Line Item Numbers (CLINs).

CLIN MATERIAL CODE / DESCRIPTION QUANTITY

UNIT OF

ISSUE UNIT PRICE

TOTAL

AMOUNT

R706 / V00007632 – Logistics Support Services

TITANIUM STRATEGIC

BUFFER – MILITARY

AIRFRAMES: Storage and Rotation of 9,000 pounds of BILLET Intermediate Forms of Titanium (Ti 6-4) Metal

(Services are to be performed in strict accordance with the Performance Work Statement (PWS))

12 MO $__________ $____________

Price-per-pound rate for the storage and rotation of Billet intermediate forms during the

Base Ordering Period of the contract:

PRICING TERMS: Firm Fixed Price

PERIOD OF PERFORMANCE: 365 Days

ISSUE UNIT PRICE

Support Services

TITANIUM STRATEGIC

BUFFER – ARMOR (AREO):

Storage and Rotation of 10,000 pounds of SHEET Intermediate Forms of Titanium (Ti 6-4) Metal

(Services are to be performed in strict accordance with the PWS)

Price-per-pound rate for the storage and rotation of Sheet intermediate forms during the

ISSUE UNIT PRICE

Support Services

TITANIUM STRATEGIC

BUFFER – ENGINES: Storage and Rotation of 10,000 pounds of ROUND Intermediate Forms of Titanium (Ti 6-4) Metal

(Services are to be performed in strict

Price-per-pound rate for the storage and rotation of Round intermediate forms during the Base Ordering Period of the contract:

ISSUE UNIT PRICE

Support Services

TITANIUM STRATEGIC

BUFFER – ARMOR

(GROUND): Storage and Rotation of 10,000 pounds of PLATE Intermediate Forms of Titanium (Ti 6-4) Metal

(Services are to be performed in strict

Price-per-pound rate for the storage and rotation of Plate intermediate forms during the

OPTION 1 ORDERING PERIOD

Task orders issued under Option Ordering Period 1 will be represented by the 100X series of CLINs.

ISSUE UNIT PRICE

Support Services

TITANIUM STRATEGIC

BUFFER – MILITARY

AIRFRAMES: Storage and Rotation of 9,000 pounds of BILLET Intermediate Forms of Titanium (Ti 6-4) Metal

(Services are to be performed in strict

Option 1 Ordering Period of the contract:

ISSUE UNIT PRICE

Support Services

TITANIUM STRATEGIC

BUFFER – ARMOR (AREO):

Storage and Rotation of 10,000 pounds of SHEET Intermediate Forms of Titanium (Ti 6-4) Metal

(Services are to be performed in strict

ISSUE UNIT PRICE

Support Services

TITANIUM STRATEGIC

BUFFER – ENGINES: Storage and Rotation of 10,000 pounds of ROUND Intermediate Forms of Titanium (Ti 6-4) Metal

(Services are to be performed in strict the Option 1 Ordering Period of the contract:

ISSUE UNIT PRICE

Support Services

TITANIUM STRATEGIC

BUFFER – ARMOR

(GROUND): Storage and Rotation of 9,000 pounds of PLATE Intermediate Forms of Titanium (Ti 6-4) Metal

(Services are to be performed in strict

OPTION 2 ORDERING PERIOD

Task orders issued under Option Ordering Period 2 will be represented by the 200X series of CLINs.

ISSUE UNIT PRICE

Support Services

TITANIUM STRATEGIC

BUFFER – MILITARY

AIRFRAMES: Storage and Rotation of 9,000 pounds of BILLET Intermediate Forms of Titanium (Ti 6-4) Metal

(Services are to be performed in strict

Option 2 Ordering Period of the contract:

ISSUE UNIT PRICE

Support Services

TITANIUM STRATEGIC

BUFFER – ARMOR (AREO):

Storage and Rotation of 10,000 pounds of SHEET Intermediate Forms of Titanium (Ti 6-4) Metal

(Services are to be performed in strict

ISSUE UNIT PRICE

Support Services

TITANIUM STRATEGIC

BUFFER – ENGINES: Storage and Rotation of 9,000 pounds of ROUND Intermediate Forms of Titanium (Ti 6-4) Metal

(Services are to be performed in strict the Option 2 Ordering Period of the contract:

ISSUE UNIT PRICE

Support Services

TITANIUM STRATEGIC

BUFFER – ARMOR

(GROUND): Storage and Rotation of 9,000 pounds of PLATE Intermediate Forms of Titanium (Ti 6-4) Metal

(Services are to be performed in strict