DFO Segment 2 Section B Draft 2.pdf

PART I – SECTION B SUPPLIES OR SERVICES AND PRICES/COSTS

Screening Information Request (SIR) 693KA8-21-R-00001

1 | P a g e “This contract may contain information considered sensitive unclassified information (SUI) and would merit protection from unauthorized disclosure under 5 U.S.C, Section 552(b)(4). No information shall be released except as authorized by the Contracting Officer.”

B.1 GENERAL

The Dual Frequency Operation 2 (DFO-2) contract is a Single Award, Indefinite-Delivery, Indefinite-Quantity (IDIQ) contract to provide Dual Frequency navigation systems and ancillary support solutions through performance of a wide range of support services as described in Section C, Statement of Work. The Contractor shall provide, in accordance with issued Delivery Orders (DOs)/Task Orders (TOs), all management, supervision, labor, facilities, and materials necessary to perform DFO-2 support services on an IDIQ basis.

B.2 BASE AND OPTION PERIODS

The term of the DFO-2 contract consists of a six (6) year base period and two (2) two-year option periods. This is not a multi-Period contract as defined in AMS Part T3.2.4/ Subsection A/ Subsection 8, Multi-year Contracting. TOs may be issued at any time during the base and/or option period. The performance periods for the TOs will be specified in the TOs and may include option periods.

Table B-1 – Contract Line Item Structure for Base Period Periods and Option Periods Base Period CLINS Description of Contract Type 0001 (Contract Period 1) Cost Type CLIN, inclusive of all costs and fee 0002 (Contract Period 1) Firm Fixed Price, inclusive of all costs and fee 0003 (Contract Period 1) Time and Materials/Labor Hour, fully burdened labor and fee only

0004 (Contract Period 1) Other Direct Costs, Cost Reimbursement & Applicable G&A or Handling Fee

1001 (Contract Period 2) Cost Type CLIN, inclusive of all costs and fee 1002 (Contract Period 2) Firm Fixed Price, inclusive of all costs and fee 1003 (Contract Period 2) Time and Materials/Labor Hour, fully burdened labor and fee only

1004 (Contract Period 2) Other Direct Costs, Cost Reimbursement & Applicable G&A or Handling Fee

2001 (Contract Period 3) Cost Type CLIN, inclusive of all costs and fee 2002 (Contract Period 3) Firm Fixed Price, inclusive of all costs and fee 2003 (Contract Period 3) Time and Materials/Labor Hour, fully burdened labor and fee only

2004 (Contract Period 3) Other Direct Costs, Cost Reimbursement & Applicable G&A or Handling Fee

3001 (Contract Period 4) Cost Type CLIN, inclusive of all costs and fee 3002 (Contract Period 4) Firm Fixed Price, inclusive of all costs and fee 3003 (Contract Period 4) Time and Materials/Labor Hour, fully burdened labor and fee only

3004 (Contract Period 4) Other Direct Costs, Cost Reimbursement & Applicable G&A or Handling Fee

4001 (Contract Period 5) Cost Type CLIN, inclusive of all costs and fee 4002 (Contract Period 5) Firm Fixed Price, inclusive of all costs and fee 4003 (Contract Period 5) Time and Materials/Labor Hour, fully burdened labor and fee only

4004 (Contract Period 5) Other Direct Costs, Cost Reimbursement & Applicable G&A or Handling Fee

5001 (Contract Period 6) Cost Type CLIN, inclusive of all costs and fee 5002 (Contract Period 6) Firm Fixed Price, inclusive of all costs and fee 5003 (Contract Period 6) Time and Materials/Labor Hour, fully burdened labor and fee only

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5004 (Contract Period 6) Other Direct Costs, Cost Reimbursement & Applicable G&A or Handling Fee

Option Period 1 CLINS Description of Contract Type 6001 (Contract Period 7) Cost Type CLIN, inclusive of all costs and fee 6002 (Contract Period 7) Firm Fixed Price, inclusive of all costs and fee 6003 (Contract Period 7 Time and Materials/Labor Hour, fully burdened labor and fee only 6004 (Contract Period 7) Other Direct Costs, Cost Reimbursement & Applicable G&A or

Handling Fee 7001 (Contract Period 8) Cost Type CLIN, inclusive of all costs and fee 7002 (Contract Period 8) Firm Fixed Price, inclusive of all costs and fee 7003 (Contract Period 8) Time and Materials/Labor Hour, fully burdened labor and fee only 7003 (Contract Period 8) Other Direct Costs, Cost Reimbursement & Applicable G&A or

Handling Fee

Option Period 2 CLINS Description of Contract Type 8001 (Contract Period 9) Cost Type CLIN, inclusive of all costs and fee 8002 (Contract Period 9) Firm Fixed Price, inclusive of all costs and fee 8003 (Contract Period 9) Time and Materials/Labor Hour, fully burdened labor and fee only 8004 (Contract Period 9) Other Direct Costs, Cost Reimbursement & Applicable G&A or

Handling Fee 9001 (Contract Period 10) Cost Type CLIN, inclusive of all costs and fee 9002 (Contract Period 10) Firm Fixed Price, inclusive of all costs and fee 9003 (Contract Period 10) Time and Materials/Labor Hour, fully burdened labor and fee only 9004 (Contract Period 10) Other Direct Costs, Cost Reimbursement & Applicable G&A or

Handling Fee

All Task Orders will utilize one or more of the above CLINs, but individual TO CLIN substructure will be based upon the specific requirements of the task order. In the contract, Option Periods will exchange the first digit with a following digit for option periods, i.e.:

Base Period 1 = 0001, 0002, 0003, Option 1 Period 2 = 6001, 6002, 6003, Option 2 Period 2 = 8001, 8002, 8003, etc.

The ceiling and funding allocations between CLINs on Delivery/Task Orders are estimated distribution values that are not to be exceeded without the approval of the Contracting Officer. The Government reserves the right to re-align funding between CLINs via modification.

B.3 INDEFINITE-DELIVERY/INDEFINITE-QUANTITY (IDIQ)

(a) TO awards issued against this contract will be placed using the procedures described in Section G, Contract Administration Data.

(b) The types of TOs issued against DFO-2 may be Cost Reimbursement, Time and Materials (T&M), Labor-Hour (L-H), and Firm-Fixed-Price (FFP) in accordance with Acquisition Management System (AMS) Part T3.2.4/ Subsection A/ Subsection 5, Indefinite-

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Delivery, and as set forth in Section G, Contract Administration Data, and Section I, Contract Clauses.

(c) Indefinite-Delivery, Indefinite-Quantity (IDIQ), Blanket Purchase Agreements (BPAs), and Letter Contracts are not permissible TO types under the DFO-2 contract. Orders for which DFO-2 navigation systems and ancillary support services outcomes are not the principal purpose are not permissible TO types under the DFO-2 contract.

Task Orders may include options as defined in AMS Part T3.2.4/ Subsection A-Type of Contracts/ Subsection 9-Options.

B.4 MAXIMUM CONTRACT LIMITATION

Task Orders may order vastly differing quantities, under differing Tasks and Labor Categories (see AMS Clauses 3.2.4-16 Ordering and 3.2.4-20 Indefinite Quantity), but in no event will the aggregate value of all Task Orders issued against this contract exceed $XXX,XXX,XXX.XX for all Periods.

B.5 GUARANTEED MINIMUM QUANTITY OF WORK

The Government guarantees that it will order at least $10,000 of work (the “Minimum Guaranteed Value”) during the term of this contract (the “Minimum Order Guarantee”).

The Government has fully met the Minimum Guarantee once the aggregate dollar value of the TOs placed on this contract equals or exceeds the Minimum Guaranteed Value. The Government has no obligation to issue Task Orders to the Contractor beyond the minimum guaranteed amount. The exercise of any optional ordering periods does not re-establish the contract minimum guaranteed amount.

B.6 CONTRACT PRICING

B.6.1 Cost Reimbursement Pricing All Cost-reimbursement type task orders provide for payment of allowable incurred costs, to the extent prescribed in the contract. These contracts establish an estimate of total cost for the required work and establish a ceiling that the contractor may not exceed (except at its own risk) without the CO’s approval. Cost-reimbursement contracts are appropriate when uncertainties involved in contract performance do not permit costs to be estimated with sufficient accuracy to use any type of fixed-price contract.

All TOs issued on a Cost Reimbursement basis will be priced in accordance with approved DCAA/DCMA (or AMS Clause 3.3.2-1 FAA Cost Principles and Procedures) rates. Direct and indirect cost rates will be established on a TO basis. For Cost Reimbursement Task Orders, the Contractor will provide complete supporting schedules identifying all applicable direct and indirect rate estimates building up to the TO cost. Contractors should submit their most recent DCMA (or other Government Agency) approved provisional indirect billing rates, if available, and actual rates for both direct and indirect rates. Contractors without audited rates shall propose indirect rates in accordance with AMS 3.3.2-1 FAA Cost Principles and Procedures. The fee, if, applicable will be negotiated for each TO consistent with statutory limitations.

B.6.2 Time-and-Materials, Labor-Hour/Firm-Fixed-Price Pricing

4 | P a g e “This contract may contain information considered sensitive unclassified information (SUI) and would merit protection from unauthorized disclosure under 5 U.S.C, Section 552(b)(4). No information shall be released except as authorized by the Contracting Officer.”

All TOs issued on a T&M, L-H, or FFP basis will be subject to the pricing set forth in Section J – List of Attachments, Attachment B-1, Labor Rate Tables. The labor rates in this attachment reflect fully-burdened hourly rates for each labor category and will apply to all direct labor hours under time and material and labor-hour priced TOs. The fully-burdened labor rates include all direct labor and indirect costs applicable to that direct labor (such as fringe benefits, overhead, G&A), and profit. These fixed hourly rates are ceiling rates and will apply to the prime contractor and core team members.

The labor rate table must be based upon the prime contractor and each team member’s established accounting practices for recording uncompensated overtime. The accounting practices for each member identified in the contractor proposal (e.g., prime contractor records all hours; “Team Member A” records 40 hours per week; “Team Member B” records all hours, etc.), and the descriptions of the methods are incorporated into the contract and will be effective for T&M and labor-hour task orders.

The indirect rates applicable to direct materials, subcontracts for supplies, and other direct costs established in Attachment J-37, Labor Rate Tables, are ceiling rates and shall apply. There are no indirect ceiling rates for core team members. However, the contractor may elect to propose lower indirect rates on a task-by-task basis. NO AMOUNTS WILL BE PAID FOR

MATERIALS UNDER LABOR-HOUR ITEMS IN THIS CONTRACT OR ORDERS.

Team Member: The fixed hourly labor rates, in Attachment J-37, Labor Rate Tables, represent the hourly ceiling rates of the prime contractor and subcontractors in accordance with AMS 3.3.1.5. The blended rates apply for all subcontractors (including the Prime contractor).

However, the subcontractors are not required to participate in all labor categories for the purposes of contract pricing and task order performance. The blended rates will not change after the contract award when a subcontractor is removed or added to the contract. If a new subcontractor is added, the new subcontractor will be termed as “subcontractor” and treated as such for the purposes of pricing and billing at the task order level (i.e., the new member must use the blended rates).

(a) The labor rates set forth in the table reflect fully-burdened rates for performance at a Government site and for performance at a Contractor site.

1. Government Site Rates. When performing at Government sites, the Contractor shall furnish fully-burdened labor rates. The Government will provide office space, furniture and office equipment and supplies, as described in Section H.X, Government Property, Information, and Workspace, and as specified in the individual task orders.

2. Contractor Site Rates. When performing at a Contractor site, the fully-burdened labor rates shall include applicable indirect costs for office space and all normal supplies and services required to support the work. This includes, but is not limited to, telephones; faxes;

copiers; personal computers; postage, including courier services such as Federal Express;

ordinary business software, such as word processing, spreadsheets, graphics, etc.; normal copying and reproduction costs.

5 | P a g e “This contract may contain information considered sensitive unclassified information (SUI) and would merit protection from unauthorized disclosure under 5 U.S.C, Section 552(b)(4). No information shall be released except as authorized by the Contracting Officer.”

(b) Only Government-required labor categories are included in Attachment J-37, Labor Rate Tables. Additional labor categories may be proposed and added to meet specific TO requirements, in accordance with Section B.6.3, Rate Refreshment.

B.6.3 Firm-Fixed-Price (FFP) Task Orders For FFP type task orders, the quantity of each item or labor category ordered will be multiplied against the rate listed in this schedule, or as negotiated if lower rates are proposed for the TO;

and the cumulative extended total of all items ordered will define the firm-fixed price for the TO. Travel and materials, if applicable, may be estimated for each TO, including applicable indirect costs, subject to the indirect ceiling rates established in the contract. Any amounts negotiated for travel and materials will be added to the extended price of all ordered items to arrive at the total firm-fixed price for the TO. Partial or progress payments under FFP type TOs may be negotiated based on the completion of milestones/deliverables in accordance with applicable AMS clauses in contract or TOs.

B.6.4 Time and Material (T&M/Labor Hour) Task Orders For T&M or L-H type task orders, the quantity of hours ordered from each labor category will be specified as deliverable hours billable at the ceiling rates specified in Attachment B-1, Labor Rate Tables, or as negotiated, if lower rates are proposed for the TO. Materials will be estimated for each TO and may include applicable indirect costs computed in accordance with the contractor’s established accounting practices, subject to the indirect ceiling rates established in the contract. For T&M type task orders, profit on materials is not allowable. The cumulative extended total of all labor categories ordered plus materials/applicable indirect costs will define the TO ceiling price. TOs may authorize adjustments between labor category quantities of up to 10% within the established task labor ceiling price by prior CO written approval, without a formal modification. Reimbursement under the contract shall be governed by the clause at AMS 3.3.1-5, Payments under Time and Materials and Labor-Hour Contracts.

Labor. Attachment X-1, Labor Rate Tables, shall include descriptions of the Prime contractor and each core team member’s established accounting practices for recording and billing for labor hours under task orders. The table lists the Prime contractor and each core team member separately to assure that the accounting practices for each are clearly identified (e.g., Prime contractor records all hours; “Core Team Member A” records forty (40) hours per week; “Core Team member B” records all hours, etc.). The descriptions are incorporated into the contract and orders and are effective for T&M and labor-hour task orders.

In the performance of T&M and labor-hour task orders, the hours billed shall show the labor hours performed by the prime contractor and each core team member separately. If the established accounting practices described in the contract are to record and bill a standard number of hours per week (e.g., forty (40) hours), the labor hours will be billed only on the basis of a standard number of hours. If the established accounting practices described in the contract are to record and bill all hours worked by employees, including uncompensated overtime, the labor hours billed will be based on all hours worked. If the contractor provides that its established accounting practices are to record and bill all hours worked but it is found after award that the established accounting practices at the time of award were not based on recording all hours worked by employees, the Government shall be entitled to a price

6 | P a g e “This contract may contain information considered sensitive unclassified information (SUI) and would merit protection from unauthorized disclosure under 5 U.S.C, Section 552(b)(4). No information shall be released except as authorized by the Contracting Officer.”

adjustment on all payments for labor hours under the T&M and labor hour order. The amount of the price adjustment shall be the difference between the number of hours billed based on recording all hours worked and the hours that would have been recorded using a standard number of hours (e.g., forty (40) hours).

a) Subcontractor Rates. Addition of New Subcontractor after Task Order Award requiring a task order modification. If a DFO-2 Prime adds a new subcontractor after task order award, the subcontractor must use the fixed hourly rates already present in the IDIQ.

b) Materials. Materials are defined in the clause at AMS 3.3.1-5, Payments Under Time and Materials and Labor Hour Contracts (July 2018).

Materials means—

• Direct materials, including supplies transferred between divisions, subsidiaries, or affiliates of the Contractor under a common control;

• Subcontracts for supplies and incidental services for which there is no labor category specified in the contract;

• Other direct costs (e.g., incidental services for which there is no labor category specified in the contract, travel, computer usage charges, etc.); and,

• Applicable indirect costs.

Indirect costs allocated to any direct materials and other direct costs shall be proposed consistent with the payment requirements of AMS 3.3.1-5, Payments Under Time and Materials and Labor–Hour Contracts, paragraph (b)(5), as follows:

(i) “The Contractor may include allocable indirect costs and other direct costs to the extent they are—Comprised only of costs that are clearly excluded from the hourly rate;

(ii) Allocated in accordance with the Contractor's written or established accounting practices; and

(iii) Indirect costs are not applied to subcontracts that are paid at the hourly rates.”

Indirect costs allocated to any direct materials and other direct costs shall be proposed consistent with AMS 3.2.4-5, Allowable Cost and Payment clause.

The cost of general purpose items required for the conduct of the Contractor’s normal business operations are not allowable materials in the performance of task orders under this contract. See also Section G and Section H for additional limitations on materials and mandatory support documentation.

Profit is not allowed on materials under a T&M type task order.

7 | P a g e “This contract may contain information considered sensitive unclassified information (SUI) and would merit protection from unauthorized disclosure under 5 U.S.C, Section 552(b)(4). No information shall be released except as authorized by the Contracting Officer.”

c) Travel (all order types). If authorized in the task order, travel will be reimbursed at actual direct costs in accordance with the limitations set forth in AMS 3.3.2-2 Reimbursement for Travel and Subsistence (April 2010). No profit is allowed for travel. Subject to the ceiling rates in the table, indirect costs may be applied to travel in accordance with the Contractor’s established accounting practices consistent with 3.3.2-1, FAA Cost Principles). Travel will be a separate Not-To-Exceed CLIN on orders.

B.6.5 Rate Refreshment The labor rates under the Time-and-Materials/Labor Hour CLINS are fixed ceiling rates for all contract Period periods; however, the Contractor may submit a proposal reducing the fixed hourly rates and/or indirect rates applicable to materials at any time during the life of this contract. The Government will review these proposals and determine if the revised rates are realistic and in the best interests of the Government. If the rates are accepted, the Government will modify the contract by incorporating the new rates into Attachment B-1, Labor Rate Tables.

At any time and throughout the life of the contract, at the request of either the Contractor or the Government, the Contractor may propose additional labor categories, rates and descriptions in addition to the Government labor categories. These additional Task Order Unique labor categories, rates, and descriptions will be negotiated on a case-by-case basis (See Section G.X, Cost/Price Proposals, for process).

B.6.6 Total Cost of Ownership Pricing Individual TOs may require the Contractor to structure its price proposal to provide for the total cost of ownership. For example, instead of, or in addition to, providing a cost proposal based on fixed hourly rates, specific task orders may require pricing on a per seat/workstation, usage rates, or other similar basis to determine the total life cycle cost.

B.6.7 Work Outside the Contiguous United States (OCONUS) It is anticipated that there may be minimal work under this contract outside the Contiguous United States. It is anticipated that any OCONUS work will not have a materially significant impact on the contract. Rates for OCONUS work will be negotiated on a TO by TO basis and may exceed the established ceiling rates. The Government reserves the right to make determinations of fair and reasonable pricing at the TO level.

B.7 LABOR SUBJECT TO THE SERVICE CONTRACT ACT (SCA)

In accordance with AMS T.3.6.2, Labor Laws, all contract labor categories supporting DFO-2 correspond to bona fide executive, administrative, or professional employees, who will perform professional services generally exempt from the SCA.

If the principal purpose of a task order is to furnish services in the United States through the use of service employees and to the extent that any labor is subject to the SCA and within scope of an DFO-2 task order and the DFO-2 contract, the Contracting Officer must identify such work under a separate CLIN on the order, and apply wages in accordance with AMS 3.6.2-28, Service Contract Act of 1965, as Amended.

8 | P a g e “This contract may contain information considered sensitive unclassified information (SUI) and would merit protection from unauthorized disclosure under 5 U.S.C, Section 552(b)(4). No information shall be released except as authorized by the Contracting Officer.”

The DFO-2 contract does not include all applicable flow-down clauses for labor categories subject to the SCA. Each task order will be tailored to include the appropriate clauses.

END OF SECTION B

END OF SECTION B