Attachment J-03 WOI TERP Procedures 6-25-2020.pdf

HQ0858-20-R-0011

Section J, Attachment 3

TEAMS-Next Solicitation HQ0858-20-R-0011

Section J, Attachment 3

TEAMS-Next Emergent Requirements

Package (TERP) Procedures

19 May 2020

Approved for Public Release 20-MDA-10566 (9 Sep 20)

Section J, Attachment

3 TERP Procedures

1.0 Purpose

As set forth in Statement of Work (SOW) (Attachment 1) paragraph 3.6, “Emergent Requirements”, Option CLIN 0001 of this contract includes a reserve pool of unexercised Cost-Plus Fixed Fee, Level of Effort (CPFF-LOE) hours to support future emergent, in-scope requirements. Specifically, additional LOE may be procured, on a case-by-case, incremental basis, in support of any requirements set forth in SOW paragraph 3.0. The resulting increase in LOE will be negotiated via a TEAMS-Next Emergent Requirements Package (TERP), bilaterally signed by the Government and the Contractor, and executed in a subsequent contract modification. (The cost and fee per hour of the subject labor category and location will not be subject to negotiation, since these amounts were established during competition.)

Should the Government choose to award an emergent requirement, it will be awarded per the procedures set forth herein. CLIN 0001 provides for an increase in hours of up to 40% of the total LOE set forth in the competitive solicitation. Conversely, if and when a decrease in effort is required for an existing requirement, a reverse TERP will be bilaterally negotiated to reduce and reallocate hours and associated CPFF from the active CLIN to CLIN 0001. (The cost and fee per hour of the subject labor category and location will not be subject to negotiation, since these amounts were established during competition.)

2.0 Procedures

2.1 Period of Performance for Option CLIN 0001.

If and when labor CLINs for Option Years 1, 2, and 3 are exercised, a corresponding no-cost period of performance extension for the Emergent Requirements Option (CLIN 0001) will be executed in parallel, such that the maximum hours and estimated cost (up to 40% of the competitively awarded contract) may be available through the entire contract PoP.

2.2 Request for TERP.

When the Government identifies an emergent, in-scope requirement, the Contracting Officer will issue a Request for TERP (R-TERP) to the Contractor utilizing the form at Section J Attachment

04. The R-TERP will include, but not be limited to, the specific SOW paragraph task(s) being increased (from SOW section 3.0), the affected CLIN(s), the duration of the added effort (whether short-term or recurring for the remainder of the contract), and the location (including whether on-site or off-site).

The R-TERP will be priced by completing the Section J Attachment 05 TERP Pricing Model “Option Pricing Sheet Blank” worksheet. The TERP Pricing Model “Option Pricing Sheet Blank” worksheet will be pre-populated by the Government to dictate the Government’s anticipated solution in terms of: total hours, location, site, desired labor categories, or total hours by labor category (e.g. skill mix) by completing columns C through G. The Government may defer to the contractor to propose its optimal solution for labor categories and/or skill mix for Government evaluation and negotiation. The Government will either complete columns I through P to determine the number of months of support in the emergent requirement, or defer that

3 TERP Procedures responsibility to the contractor. An alpha process may also be utilized between the Government and contractor to accommodate a more expedient negotiation.

In addition to an increase in LOE, the Government may also dictate corresponding adjustment(s) in estimated cost for Travel and/or ODC.

The Contractor shall also update Section J Attachment 19 Excel Price Workbook (EPW) to add the LOE included in the Section J Attachment 05 TERP Pricing Model.

2.3 TERP Proposal.

The contractor shall deliver a TERP proposal within 5 calendar days of R-TERP issuance, unless the Contracting Officer approves a later suspense. Timely submission will be tracked for CPAR purposes. The contractor shall complete the TERP form (Section J Attachment 4) and the TERP Pricing Model (Section J Attachment 5). Whether the negotiated hours, labor categories, and/or skill mix are dictated by the Government (in the R-TERP) or proposed by the contractor, the contractor shall complete Section J Attachment 05 TERP Pricing Model for the emergent requirement. Section J, Attachment 5 rates were set forth as part of the competitive award of this contract and shall be utilized when increasing or decreasing labor and total CPFF from/to the Emergent Option CLIN (0001). No cells in the TERP Pricing Model shall be modified except for those in the “Option Pricing Sheet Blank” worksheet columns C through G and I through P. The proposed TERP Pricing Model calculates the estimated cost, fixed fee, and total CPFF based on the inputs provided in “Option Pricing Sheet Blank” worksheet columns C through G and I through P.

Additionally, if the Government has not already identified an increase in the Travel/ODC CLIN and the contractor determines the increase in LOE necessitates a corresponding increase in either Travel or ODC, the contractor may specify either or both (along with rationale) in its TERP proposal. These adjustments would only be to the estimated cost for the Travel/ODC CLIN, and Forms 100 (Travel) and 70 (ODC) would still be required for authorization of either on a case-by-case basis.

The TERP proposal shall also include a revised Section J Attachment 19 EPW, which adds the proposed TERP LOE into the baseline of the EPW. Once the TERP is awarded, the new EPW will be incorporated in the contract as Section J Attachment 19.

2.4 TERP Exercise Procedure.

Once negotiated, the TERP document shall be signed by the Contracting Officer and a representative authorized to commit the contractor. A subsequent contract modification will be executed to realign the authorized ceiling (estimated cost/fee) and hours (LOE) from CLIN 0001 to the affected CLIN(s). The contractor shall not incur cost against a TERP prior to authorization.

Through a contract modification, CLIN 0001 will be drawn down by the total hours and estimated CPFF from the negotiated TERP, such that the maximum value of the contract (inclusive of all unexercised options) will remain unchanged (zero sum). Conversely, increases in either Travel or ODC will not be drawn down from CLIN 0001; these increases will actually be implemented as a net increase in maximum contract value (inclusive of options) by increasing the affected CLINs

3 TERP Procedures without a corresponding decrease to CLIN 0001.

The following notional example assumes a TERP will increase existing effort by 9,600 hours (through the remainder of the base period only) at a total CPFF of $1,600,000; no associated increase in Travel or ODC. The LOE increase will be allocated among 2 stakeholder CLINs (SN and TC), as follows:

3,840 hours to CLIN 0300 for Sensors (SN) support (CPFF value: $736K) 5,760 hours to CLIN 0320 for Targets (TC) support (CPFF value: $864K)

CLIN 0001 (unexercised option) will be decreased by 9,600 hours and $1.6M CPFF CLIN 0300 (SN Base CLIN) will be increased by 3,840 hours and $736K CPFF CLIN 0320 (TC Base CLIN) will be increased by 5,760 hours and $864K CPFF.

As shown in the example above, the adjustment in LOE is derived by a realignment between CLINs 0001 and 0300/0320, not an overall increase in the maximum contract value (inclusive of options).

No TERPs may be issued after all LOE has been drawn down from CLIN 0001. If the CLIN 0001 estimated CPFF has been completely drawn down to $0 and there are still remaining LOE hours under CLIN 0001 (e.g. if a disproportionate amount of higher priced labor has been authorized under prior TERPs), the Government may elect to purchase the remaining hours as an increase in contract value, subject to funds availability.

2.5 Fixed Fee.

Adjustments in fixed fee associated with TERPs shall not affect the billing and payment procedures for fee earned. Specifically, the contractor shall follow the invoicing procedures for fixed fee as set forth in clause G-08, “Payment of Fixed Fee (Ordering – Level of Effort) (JUN 2012)”.

2.6 Reverse TERP.

If, over the course of performance, it is determined that a particular effort is no longer required for the remainder of the PoP, a Reverse TERP may be utilized to preserve the hours (LOE) and associated CPFF for other/future use. The decremented LOE will be negotiated utilizing the same TERP procedure above, only in reverse. The negotiated hours and CPFF will be reduced from the affected CLINs and realigned as an increase (in LOE and CPFF) to CLIN 0001. (The cost and fee per hour of the subject labor category and location will not be subject to negotiation, since these amounts were established during competition.)

2.7 Modification Authority.

For purposes of contractual modification authority, all TERPs shall be issued pursuant to this Section J Attachment. If, however, a TERP also drives a change in SOW (including labor categories), CDRLs, or any other terms and conditions of the contract, the “Changes” clause shall also be cited accordingly.