A000001.CO311-22.pdf

ORDER NUMBER:

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 or (c) By separate letter or electronic communication 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 letter or electronic communication, provided each letter or electronic communication makes reference to the solicitation and this amendment, and is received prior to the opening hour and date specified.

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

AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT 1. CONTRACT ID CODE

3. EFFECTIVE DATE 4. REQUISITION/PURCHASE REQUISITION NUMBER 5. PROJECT NUMBER (If applicable)

CODE

STANDARD FORM 30 (REV. 11/2016)

Prescribed by GSA FAR (48 CFR) 53.243

FACILITY CODE

9A. AMENDMENT OF SOLICITATION NUMBER

9B. DATED (SEE ITEM 11)

10A. MODIFICATION OF CONTRACT/ORDER NUMBER

10B. DATED (SEE ITEM 13)

11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

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

12. ACCOUNTING AND APPROPRIATION DATA (If required) copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted;

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

IT MODIFIES THE CONTRACT/ORDER NUMBER AS DESCRIBED IN ITEM 14.

CHECK ONE A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT ORDER

NUMBER IN ITEM 10A.

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

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

D. OTHER (Specify type of modification and authority)

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.

15C. DATE SIGNED

15A. NAME AND TITLE OF SIGNER (Type or print)

16C. DATE SIGNED

16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or print)

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

PAGE OF PAGES

6. ISSUED BY CODE

8. NAME AND ADDRESS OF CONTRACTOR (Number, street, county, State and ZIP Code)

CODE

15B. CONTRACTOR/OFFEROR

(Signature of person authorized to sign)

16B. UNITED STATES OF AMERICA

(Signature of Contracting Officer)

Previous edition unusable

X

391014499

Tina Jeffery

7. ADMINISTERED BY (If other than Item 6)

Tina Jeffery

606-599-4151 tina.jeffery@usdoj.gov

UNDETERMINED SOURCE

NA BLANK

WASHINGTON DC 20534

C03

UNICOR, FPI CENTRAL OFFICE

400 1ST ST NW

WASHINGTON DC 20534-0004

2. AMENDMENT/MODIFICATION NUMBER

000001

COCO

CO311-22

02/09/2022

X X x 1

PROVIDE RESPONSES TO QUESTIONS RECEIVED. CLOSING DATE REMAINS 3/18/2022. PLEASE PAGE 2.

A000001, RESPONSE TO QUESTIONS

CO311-22, FSA MARKET ANALYSIS

1. Other than the limitation on office furniture sales to nonprofits, and specific use cases for public entities (i.e. penal correction, disaster relief, emergency response), is FPI allowed to sell any product it currently manufactures to the new markets?

RESPONSE: Except for sales to D.C. government, the answer is NO. Not every product FPI makes can be sold under the new authorities.

Under the FSA Federal Prison Industries may sell products to— (1) public entities for use in prisons;

(2) public entities for use in disaster relief or emergency response; (3) the D.C. government; and, (4) except for office furniture, IRS-recognized non-profit organizations. Thus we have four new markets.

1. The term “public entity” means a State, a subdivision of a State, an Indian tribe, and an agency or governmental corporation or business of any of the foregoing.

2. “Use in prisons” is up to FPI to interpret reasonably. The most reasonable interpretation is plain English: anything that is going to be used in a prison may be sold to a public entity. That could be inmate clothing, inputs for a state correctional industry, correctional officer equipment, and furniture for offices located in an institution. If a public entity official tells us that they want to purchase an item for use in prisons, and the statement is reasonable, we should fill the order.

3. “Use in disaster relief or emergency response” is also up to FPI to interpret reasonably. Again, the most reasonable interpretation is plain English: anything that reasonably would be used is disaster relief or emergency response is fine. Examples include uniforms, vests, sandbags, protective equipment, and various tools. The key here is that the customer’s intended use. If a public entity official tells us that they want to purchase an item for use in disaster relief or emergency response, and the statement is reasonable, we should fill the order.

If a product that FPI manufactures does NOT have a use in a prison and/or disaster relief or emergency response then that item cannot be sold under markets #1 and 2. Therefore FPI cannot

“sell any product it currently manufactures to the new markets.” FPI must make a reasonable determination as to use under the first two markets. The statement of intended use from public entity officials is an important part of that determination.

The third new market, “the D.C. Government” has no restriction. Therefore FPI can sell any and all of its products to the District.

The final new market, as the question notes, has only one restriction – office furniture. Therefore

FPI can sell any and all of its products to “any organization described in subsection (c)(3), (c)(4), or

(d) of section 501 of the Internal Revenue Code of 1986 that is exempt from taxation under section

501(a) of such Code” except for office furniture.

2. Is it within scope to consider the sale of brand new-to-FPI products to the four new markets if the market and opportunity analyses identify opportunities to expand FPI’s SKUs/products?

RESPONSE: Yes. One of core objectives is to identify potential adjacent and/or new markets which FPI could leverage. As stated above, these new SKUs/products would need to meet legislative requirements restricting who and what we can produce/sell.

3. In addition to products that it can manufacture, are finished products that FPI packages and resells - e.g. emergency communication equipment for public entity emergency response – within scope?

RESPONSE: Yes, but there needs to be value-added/inmate labor component to the re-packaging/reselling. For example, if project entailed to kit up an emergency response communication package (i.e. packaging number of comms equipment, set up procedures SOP booklet, etc.) into single “turn-key” solution.

4. The market analysis (Task 3, Part I) includes a bullet stating that the analysis should include the “Identification of potential new markets that FPI is currently not addressing, based on FSA or markets traditionally not addressed by FPI? Can you clarify what is meant by “markets traditionally not addressed by FPI” aside from the four markets recently authorized under FSA?

RESPONSE: It has been decades, if ever, since FPI has strategically taken a step back to re-assess, aside from just FSA authorization, whether it was in right markets based on a comprehensive strategic review/SWOT analysis based on outcome of a robust market analysis. This is especially relevant given current move from offshoring to more “glocalization” of supply chains based on COVID and current events, federal government procurement push for “source from America”, and more remote working.

5. In the Situation Analysis (Task 2), the deliverable includes a bullet that references “potential factory locations.” Can you clarify the intent of this phrase? Is the intent to ask the Offeror to explore moving manufacturing capabilities within the existing FPI manufacturing footprint?

RESPONSE: Yes. If logistics/shipping is a key cost driver of new SKU/product in question, we would want to produce in area which makes most sense given FPI’s manufacturing potential footprint. This cost driver can be driven by at either or both ends of value chain (i.e. due to key supplier or key customer location). This footprint can essentially be any area, within certain limitations, of BOP correctional institution in place, if there is ROI business case which justifies it.

6. Will we have access to FPI’s historical sales and margin data? If so, at what level (e.g., transaction level, product level, customer level)? And how far back in time?

RESPONSE: Once contract is awarded to specific partner, we will be completely “open book” and will make all facts/data available once proper NDA’s are executed. Our legacy/historical data in SAP goes back to the year 2000. The levels of granularity and accuracy will depend on data being requested.

7. Will FPI’s Program Manager be assigned to this project on a full-time / near full-time basis?

RESPONSE: Given the scope and strategic importance of this project, we envision that FPI’s Program Manager will be on this project on a full-time basis.

8. Does FPI have an expected duration in mind for Task 2 that they can share?

RESPONSE: We believe this should take approximately 2 months. This is based on information currently available, to include a fairly recent (5 years ago) consultancy review of our factories, active access/engagement with our Business GM’s/Senior Leadership, and other information which will readily be available. We feel 2 months should be adequate for this “discovery” period. But this duration should be driven by the methodology and any additional fact-finding as encompassed in respective proposal. In other words, rather than dictating, we are open to proposed solutions.

9. Appendix A: Pricing Table, is there a pricing table for non-key personnel?

RESPONSE: Any personnel “category” which will be key cost driver and relevant to proposal and eventual implementation phase of project should be listed in addition to what is currently listed.

We are looking to “lock in” rates of personnel categories for next phase of project. Thus, only an SOW needs to be defined, which in turn will drive resource planning for number of resources in each category and duration of engagement required.

10. How should offerors price potential travel? Is FPI amenable to inserting a plug cost for ODCs to cover these unknown costs?

RESPONSE: Please refer to SOW, Section 7, page 8, for statement on travel costs. No travel should be priced with offer.

11. What is the planned start date; even an approximation (e.g., second half of April) is helpful for staffing purposes.

RESPONSE: We are targeting award and start date of project by last week in April 2022.

12. The RFQ stipulates that large businesses have to submit a subcontracting plan with their response. If we determine per FPI 1000K2 Subcontract Certification that the contract doesn’t provide for subcontracting possibilities, is a subcontracting plan still required?

RESPONSE: No, subcontracting plan is not required. Please complete the FPI 1000K2 certificate indicating there are not subcontracting opportunities.

13. If a subcontracting plan is not required, will the Government please provide a copy of the FPI 1000K2 Subcontract Certification?

RESPONSE: FPI 1000K2 is located at the bottom of page 25.

14. If the Small Business Subcontracting Plan requirement cannot be waived, would the Government please provide their small business goals for this scope of work?

RESPONSE: Please see response to question 12.

15. Would the Government consider alternative phased approaches to delivering the same or expanded scope of work?

RESPONSE: Primary proposal must address the approach/scope of work as defined in RFP.

Additional innovative approach/solutions can be provided for our further consideration. Please provide total cost for additional approach/solution provided.

16. In Section 3.3.2 Task 3, Part 2 – Opportunity Analysis, it states “End objective is to specifically define targeted strategies to drive growth and maximize profitability based on end results of Situational Analysis/Market Analysis.” Please define what you mean by “profitability”.

RESPONSE: The mission of Federal Prison Industries is to protect society and reduce crime by providing inmates with job training and practical work skills for reentry success.

“Profitability” as mentioned refers to revenues in excess of costs which will only be used to re-invest in inmate skill-development, capital equipment, and in additional new factories.

As FPI is self-sustaining and receives no appropriated funds for its operations, revenues generated by sales are used to cover the program’s operational expenses. Unlike commercial organizations, “profits” cannot be returned to shareholders. Rather, all of FPI’s revenues are eventually returned to the community.

17. Would the Government confirm they are asking for one of each of the identified types of Key Personnel, totaling three Key Personnel?

RESPONSE: These are not entirely prescriptive in name but rather by role/responsibility/expertise.

If proposed methodology requires different set of Key Personnel, rationale and reason which, if different from those stated in RFP, must be explicitly addressed.

18. CO309-22 (i.e., Overseas Market Analysis) was recently released. Would the Government confirm if there can be overlapping Key Personnel in the CO309-22 proposal and this proposal?

RESPONSE: We believe this strategically different level of work and therefore should require different skillsets and focus. But, if this is proposed, please state how these resources will be utilized and costed based on activity-based costing between 2 projects.