DFTS II Pre-Solicitation Conference Final.pdf

TOGETHER, WE DELIVER.TOGETHER, WE DELIVER.

Defense Freight Transportation Services (DFTS) II

Pre-Solicitation Conference 14 June 2023

UNCLASSIFIED

TOGETHER, WE DELIVER.

Opening Remarks Tamara (Tammy) D. Thouvenot, SES

Deputy Director/PEO, Acquisition (USTRANSCOM) Col. David Payton, SES

Deputy Director, Strategic Acquisitions and Programs

(DLA)

INTRODUCTIONS

• TCAQ Specialized Transportation & Support Division

– Mr. Greg Hunt, Chief

– Ms. Lynda Lang, Deputy Chief

• Acquisition Team

– Mr. Christopher Frost, Contracting Officer

– Ms. Amy Burk, Contracting Specialist

– Ms. Cassie Range, Contracting Specialist

– Ms. Suzanne Mudd-Yarber, Director Small

Business

UNCLASSIFIED

UNCLASSIFIED

• DFTS Program Management

– Ms. Pam Hall, Division Chief

– LTC William Griffin, DFTS Program

Manager

• Defense Logistics Agency

– Mr. Joe Frey, DLA Contracting Officer

Representative

– Mr. Dominick Versace, DLA Contracting

Officer Representative

AGENDA

UNCLASSIFIED

UNCLASSIFIED

Time Topic Briefer 0700 Arrival / Registration 0800 Introduction and Opening Remarks Ms. Tamara Thouvenot

Requirements Overview Acquisition Strategy Request for Proposal Proposal Evaluations

- Business Proposal

- Small Business

- Technical Capability

- Past Performance

- Price

Acquisition Milestones

Mr. Christopher Frost Ms. Suzanne Mudd-Yarber Ms. Amy Burk

1030 One-on-One Sessions (In Person)

PRE-SOLICITATION CONFERENCE DISCLAIMER

• THANK YOU for your participation in our Market Research efforts. Your inputs are invaluable to the development of this acquisition.

– The primary purpose of the Pre-Solicitation Conference is to assist potential Offerors with proposal preparation / submission and obtain any additional industry feedback

• All questions and answers from today’s briefing will be posted to SAM.gov

• This presentation is not all inclusive and is intended to highlight key areas within the

Addendum to FAR 52.212-1 Instructions to Offerors – Commercial Items and FAR 52.212-2, Evaluation – Commercial Items.

• RFI #3 with draft solicitation posted to SAM.gov. Feedback due 21 June 2023 at 1200 CT

REQUIREMENTS OVERVIEW

• Single transportation services provider to support 300,000 annual DoD Freight All Kinds shipments

– Support Defense Logistics Agency (DLA) and Fleet Logistics Center Norfolk (FLCN)*

• Services include:

– Truck, time definite service level (TDSL), rail, and air transportation

– FEMA and Humanitarian / Contingency support

– State of the art Transportation Management System (TMS) to perform IT requirements of PWS

– Other service support

• HAZMAT

• International Customs Brokerage

• Storage

SERVICE DELIVERY SUMMARY (SDS)

UNCLASSIFIED

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PWS Paragraph Performance Objective Performance Threshold

1.15.2.1. On-Time Response 98% of shipments are responded to on time each month at the enterprise and shipper site levels

1.15.2.2. On-Time Pickup 98% of shipments are picked up on time each month at the enterprise and shipper site levels

1.15.2.3. On-Time Delivery 95% of shipments are delivered on time each month at the enterprise and shipper site levels

1.15.2.4. Loss and Damage Shipments 98% of shipments are loss and damage free each month

1.15.2.4. Loss and Damage Claims Status 98% of claims are resolved within 180 calendar days

1.15.2.5. IT System Availability 99% of the time each month the Contractor’s TMS is fully functional; 95% of the time each month the Contractor’s web-based tools are fully functional

4.4. Cyber-Incident Reporting No more than one late cyber-incident report or unreported cyber-incident in a 12-month period

DFTS II ACQUISITION STRATEGY

• Far Part 12, Acquisition of Commercial Products and Commercial Services, and FAR Part 15, Contracting by Negotiation

• Single Award, Fixed Price with Economic Price Adjustment

• Indefinite Delivery, Indefinite Quantity (IDIQ) Contract

• Period of Performance: 2-year base period, 5 1-year options, 6-month extension of services

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PERIOD ANTICIPATED START / END DATES

Base Period (2 Years) 01 May 2024 – 30 April 2026

Option Years (5, 1-year options) 1 May 2026 – 30 April 3031

Extension of Services (6 Months) 1 May 2031 – 31 October 2031

REQUEST FOR PROPOSAL (RFP) DOCUMENTS

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UNCLASSIFIED

• SF1449 and Clauses

• Attachment 1 – Performance Work Statement

– Appendix A - Accessorial Definitions

– Appendix B – Accessorial Approval Form

– Appendix C – Exception Codes

– Appendix D – Equipment Codes

– Appendix E – Agency and Site Unique

Requirements

– Appendix F – Rate Process and Request Form

– Appendix G – Shipping Site Implementation List

– Appendix H – FEMA Origin and Destination

– Appendix I – TR-12 Fuel Rate Adjustment Policy

– Appendix J – Economic Price Adjustment

Schedule

– Appendix K – Technical Directives

– Appendix L – Glossary

– Appendix M – Incident Priority Levels

– Appendix N – Modified NIST SP 800-171

Requirements

– Appendix O – NIST POAM Template

RFP DOCUMENTS (CONT’D)

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UNCLASSIFIED

• Attachment 2 – Pricing Rate Table

• Attachment 3 – Pricing Rate Table Map

• Attachment 4 – Contractor Plan for Continuation of Essential Contractor Services

• Attachment 5 – RFO Offeror Information Sheet

• Attachment 6 – Financial Information Questionnaire

• Attachment 7 – Small Business Subcontracting Plan Template

• Attachment 8 – Small Business Participation Commitment Plan

• Attachment 9 – Past Performance Questionnaire

• Attachment 10 – DFTS I Historical Data 2021-2022

• Attachment 11 – Wage Determination

Proposal Instructions Addendum to FAR 52.212-1 – Instructions to Offerors – Commercial Items

Proposal Evaluations

FAR 52.212-2 Evaluation – Commercial Items

PROPOSAL SUBMISSION (TENTATIVE)

• Offerors shall submit proposals via DoD Secure Access File Exchange (SAFE) https://safe.apps.mil/. Offerors shall request a “Drop-off Request Code” NLT 16:30 CT, 11 August 2023 by emailing Amy Burk at amy.g.burk.civ@mail.mil, Cassie Range at cassandra.a.range.civ@mail.mil, and Chris Frost at christopher.t.frost4.civ@mail.mil. An email from DoD SAFE will be sent with a request code authorizing offerors to Drop-Off documents.

• Hard copy, facsimile, or emailed proposals WILL NOT be accepted.

• Tentative dates and times listed. Monitor SAM.gov for official RFP posting.

UNCLASSIFIED

Deadline 16:30 PM CT, 14 August 2023

PROPOSAL OVERVIEW

• Offerors shall submit its proposal in four (4) separate volumes as identified below:

– Volume 1: Business Proposal

• No page limitation

– Volume 2: Technical Capability Proposal

• Limited to 50 pages. Page limit does not include the Small Business Participation Commitment Plan (Attachment 8)

– Volume 3: Past Performance Proposal

• Limited to 5 pages. Page limit does not include the questionnaire or consent letters.

– Volume 4: Price Proposal

• No page limitation. Must utilize Attachment 2 – Pricing Rate Table.

VOLUME 1: BUSINESS PROPOSAL

• The following completed items shall be provided in the

Business Proposal:

– Standard Form (SF) 1449, Solicitation for Commercial Items

– Signed copies of all solicitation amendments, if any

– Representations and Certifications (submitted online using https://www.sam.gov where available OR with the Offeror’s contract documentation)

– Mission Essential Contractor Services Plan (Attachment 4)

– Organizational Conflict of Interest (OCI) Statement

– Offeror Information Sheet (Attachment 5)

– Financial Questionnaire (Attachment 6)

– Small Business submission requirements discussed later.

BUSINESS PROPOSAL – EVALUATION CRITERIA

• The Offeror’s Business Proposal will be evaluated as Acceptable or Unacceptable, as defined below. The Government will not award to an Offeror that has an Unacceptable rating for this factor.

• To be rated Acceptable, the Offeror’s proposal shall conform to all requirements of the solicitation, including the Proposal Preparation Instructions under Addendum to FAR 52.212-1. The Offeror must be registered in SAM at the time of proposal submission. For the Mission Essential Contractor Services Plan, it shall be comprised of an adequate level of description to ensure continued execution of the operational tasks contained in the PWS. The plan complies with DFARS 252.237-7024.

Small Business Submission Requirements

Ms. Suzanne Mudd-Yarber

OVERVIEW

• Small Business Office

• Small Business Concerns Maximum Opportunities

• Small Business Subcontracting Plan

• Types of Subcontracting Plans

• Target Subcontracting Goals

• Small Business Utilization – Evaluation Factor

– Authority

– Application

– Subfactor 4

SMALL BUSINESS OFFICE

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USTRANSCOM

TCAQ-SB

508 Scott Drive Scott AFB, IL 62225-5357

Website: https://www.ustranscom.mil/dbw/osbp.cfm

Suzanne Mudd-Yarber Rory Brooks Director, Small Business Programs Small Business Professional suzanne.m.muddyarber.civ@mail.mil rory.j.brooks.civ@mail.mil transcom.scott.tcaq.mbx.sb@mail.mil

MAXIMUM OPPORTUNITIES FOR SB CONCERNS

• Small Business Concerns

– Foundation of our country

• Brick and mortar

– National interest

• Economic benefit

• Social Benefit

– Good news stories

• Brag about the opportunities you are providing to the small business concerns

SMALL BUSINESS SUBCONTRACTING PLAN

• Attachment 7 – Template

• Applies to Large Business Only

• Federal Acquisition Regulation (FAR) Part 19.704(a)

– 15 elements addressed in subcontracting plan

• Address all elements otherwise it is non-compliant and offeror may be considered ineligible for award

• Incorporated as a material part of the contract

– Compliant through the entire contract period of performance

SUBCONTRACTING PLAN TYPES

• Four Types of Small Business Subcontracting Plans

– Defined in FAR Part 19.701 and DFARS 219.702-70

• Commercial Plan

• Individual Subcontracting Plan

• Master Subcontracting Plan

• Comprehensive Subcontracting Plan

TARGET SUBCONTRACTING GOALS

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CATEGORY TARGET GOAL

Small Business (SB) 40% Small Disadvantaged Business (SDB) 5% Veteran Owned SB (includes SDVOSB) 3% Service-Disabled Veteran Owned SB (SDVOSB) 2% HUBZone 1% Woman Owned Small Business (WOSB) 10%

SMALL BUSINESS SUBCONTRACTING PLAN EXAMPLE

$40.00 Small

Business

$5.00 Small

Disadvantaged Business

$10.00 Women- Owned Small

Business

$2.00 Service- Disable Veteran

Owned Small Business

$3.00 Veteran- Owned Small

Business

$1.00 HUBZone Certified

Small Business

DFTS II Contractor $100.00 Worth of Work – Subcontracts $61.00 Worth

Tier 1

GOALS MET!

CATEGORY TARGET GOAL

Small Business (SB) 40% Small Disadvantaged Business (SDB) 5% Veteran Owned SB (includes SDVOSB) 3% Service-Disabled Veteran Owned SB (SDVOSB) 2% HUBZone 1% Woman Owned Small Business (WOSB) 10%

GOALS NOT MET!

$40.00 Small

Business

Large Business:

$7.00 Worth of

Work – Subcontracts

$5 worth

$10.00 Women- Owned Small

Business

$3.00 Service- Disable Veteran

Owned Small Business

Large Business:

$9.00 Worth of

Work – Subcontracts $7 worth

$1.00 HUBZone Certified

Small Business

DFTS II Contractor $100.00 Worth of Work – Subcontracts $70.00 Worth

Tier 1

$5.00 Small

Disadvantaged Business

Tier 2

$3.00 Veteran-Owned Small Business

Large Business:

$7.00 Worth of Work – Subcontracts $3 worth

Tier 3

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SB UTILIZATION – EVALUATION FACTOR

• Source Selection Evaluation Authority

– Defense Federal Acquisition Regulation Supplement (DFARS) 215.304(c)(i) In acquisitions that require use of the clause at FAR 52.219-9, Small Business Subcontracting Plan, other than those based on the lowest price technically acceptable source selection process (see FAR 15.101-2), the extent of participation of small businesses to include service-disabled veteran-owned small business concerns, HUBZone small business concerns, small disadvantaged business concerns, and women-owned small business concerns in performance of the contract shall be addressed in source selection.

The contracting officer shall evaluate the extent to which offerors identify and commit to small business performance of the contract, whether as a joint venture, teaming arrangement, or subcontractor.

• Source Selection Evaluation Applicability

– Separate from the subcontracting plan (not evaluated)

– Large Business concerns

– Small Business concerns

• Subfactor 4 – Small Business Participation Commitment Plan

– An offeror with an approved commercial subcontracting plan

• Self-certify on company letterhead that the company has made good faith effort to comply with their projected goals identified in the commercial subcontracting plan

• Include in letter the Federal Contracting Officer’s contact information who accepted the commercial subcontracting plan and accesses continual compliance with the plan over the lifecycle of the contract

• Subfactor 4 – Small Business Participation Commitment Plan (contd.)

– An offeror without an approved commercial subcontracting plan will complete the Small Business

Participation Commitment Plan (Attachment 8)

– The offeror will identify the total amount to be subcontracted to small and large business concerns

• Description of product or service

• Small Business category

• North American Industry Classification System (NAICS) code

• Breakout of the total dollars to be subcontracted to the small business category by product or service

UNCLASSIFIED

UNCLASSIFIED

Total Subcontracting Dollars (LB + SB)

Projected for Title of Program

$500,000.00 Fill in Block I2 with dollar value.

OFFEROR NAME:

UNIQUE IDENTIFIER:

CAGE CODE:

ADDRESS:

DESCRIPTION OF PRODUCT/SERVICE BEING PROCURED:

BUSINESS SIZE:

Name or Description of the Product or Service Being Subcontracted

Small Business Category NAICS Code

Total Subcontracting Dollars for Small Business

Concerns

Percentage of Subcontracting Dollars to Small Business Concerns (Value

Entered in Block F32)

Total Subcontracting Dollars for Small

Disadvantaged Business Concerns

Percentage of Subcontracting Dollars to Small Disadvantaged

Business Concerns (Value Entered in

Block H32)

Total Subcontracting Dollars for Veteran-

Owned Small Business Concerns

Percentage of Subcontracting Dollars to Veteran-Owned Small Business

Concerns (Value Entered in Block J32)

Total Subcontracting Dollars for Service-

Disabled Veteran-Owned Small Business Concerns

Percentage of Subcontracting Dollars to Service-Disabled Veteran-Owned Small

Business Concerns (Value Entered in

Block L32)

Total Subcontracting Dollars for Women-

Owned Small Business Concerns

Percentage of Subcontracting

Dollars to Women- Owned Small Business

Concerns (Value Entered in Block N32)

Total Subcontracting Dollars for HUBZone

Concerns

Percentage of Subcontracting

Dollars to HUBZone Concerns (Value

Entered in Block P32)

Trucking SB 484110 $25,000.00 Warehousing SB, SDB 493110 $10,000.00 $10,000.00 Pre-Built Pallets SB, VOSB 484122 $15,000.00 $15,000.00 Trucking SB, VOSB, SDVOSB 484121 $5,000.00 $5,000.00 $5,000.00 Container Repairs SB, WOSB 423830 $15,000.00 $15,000.00 Fuel/Petroleum SB, HUBZone 486910 $15,000.00 $15,000.00 IT Support SB, HUBZone 493110 $15,000.00 $15,000.00

Total Small Business Utilization by Category $100,000.00 20.00% $10,000.00 2.00% $20,000.00 4.00% $5,000.00 1.00% $15,000.00 3.00% $30,000.00 6.00%

ADDITIONAL SB RESOURCES

• APEX Accelerators (formally Procurement Technical Assistance Centers)

– Help SB get started with government acquisition including registration, certification, researching

– Dr. Theresa Ebeler, Center Director of the Western Illinois University APEX Accelerators Office

– Find a local APEX rep: HERE

• SB Procurement Center Representatives

– Assist small businesses who are trying to win federal contracts

– Contact a PCR near you: HERE

VOLUME 2/3: TECHNICAL CAPABILITY

AND PAST PERFORMANCE

PROPOSAL

Ms. Amy Burk

VOLUME 2: TECHNICAL CAPABILITY

• This volume shall address the Offeror’s Technical Capability and outline the Offeror’s understanding of the PWS requirements.

– Repeating the PWS without sufficient elaboration is not acceptable. Statements such as “the Offeror understands,” “can or will comply with all the requirements of the PWS,” or “standard procedures will be employed,” are insufficient.

– The Technical Capability Proposal shall exclude any reference to the price aspects of the proposal.

• The Offeror shall demonstrate its understanding of the work associated with the following sub-factors:

UNCLASSIFIED

UNCLASSIFIED

- Sub-factor 1: Information Technology

- Sub-factor 2: Implementation

- Sub-factor 3: Subcontractor Management

- Sub-factor 4: Small Business Participation Commitment Plan

- Sub-factor 5: Contractor Plan for Continuation of Essential Contractor Services

TECHNICAL CAPABILITY – EVALUATION CRITERIA

• The Offeror’s Technical Capability Proposal will be evaluated as Acceptable or Unacceptable at the subfactor level, as defined below.

• If any technical subfactor is rated as Unacceptable, the overall technical rating will be Unacceptable. If all technical subfactors are rated as Acceptable, the overall technical rating will be Acceptable. Offerors’ proposals must receive a rating of Acceptable for each of the five technical subfactors to be considered for award:

VOLUME 3: PAST PERFORMANCE

• Past Performance References

– The Offeror shall submit no more than 3 Offeror (Prime) past performance (PP) references and no more than 9 subcontractor PP references for services provided within the previous three calendar years similar in nature to the services described in this solicitation

– Past Performance Questionnaires (PPQ). Offerors shall complete Section 1 of the PPQ (Attachment

9) and send to each of the references included in the proposal. The PPQ shall be completed by the cognizant Contracting Officer/Agency the Offeror contracted with and emailed directly to Contract Specialist and Contracting Officer.

• Subcontractor Consent – Provide a letter from any and all proposed subcontractor(s) consenting to the release of their past performance information to the Offeror.

UNCLASSIFIED 33

PAST PERFORMANCE EVALUATION CRITERIA

Ongoing or performed within three calendar years of proposal due date.Recency

Relevancy

The Government will evaluate each Offeror’s past performance information using questionnaires and performance information independently obtained from Government or commercial sources.

For the purpose of this acquisition, scope, magnitude of effort, and complexity are collectively defined as providing services in the following areas:

- Subcontractor Management - Information Technology

- Transportation Services - Small Business Subcontracting

Past Performance - Evaluation Criteria (CONT’D)

Overall Past Performance

- After recency and relevancy ratings have been assigned for each past performance effort being evaluation, an overall Past Performance Confidence Assessment Rating will be assigned

VOLUME 4: PRICE PROPOSAL

Ms. Amy Burk

VOLUME 4: PRICE

UNCLASSIFIED

UNCLASSIFIED

Offerors provide detailed proposed prices across a number of domestic and international pricing components

Input Proposed Prices

Proposal evaluation process uses the proposed prices and estimated quantities to determine fair and reasonable as well as balanced pricing

Calculate Total Evaluated Price

VOLUME 4: PRICE (HIGH LEVEL PRICE STRUCTURE)

Component Domestic (CONUS to CONUS)

Domestic TDSL (CONUS to CONUS)

Schedule Truck (CONUS to CONUS)

Next Flight Out ((O)CONUS to (O)CONUS)

International ((O)CONUS to (O)CONUS)

Lane Structure 226 domestic origin service areas

226 domestic origin service areas

42 pre-defined routes

2 domestic origin service areas

66 standard rate areas (incl. domestic)

Tier of Service* Tier 1 / 2 Tier 1 N/A N/A Tier 1

Shipping Per cwt per mile (for specific weight and mileage bands) (based on 226 service areas)

Per cwt per mile (for specific weight and mileage bands for 1D, 2D, 3D shipment) (based on 226 service areas)

Per trip Per cwt per mile not to exceed

(based on 2 service areas)

Per cwt (based on 13 int’l service areas)

Accessorials

Mixed UoM (e.g., split delivery is by per shipment) (based on shipment type and weight break)

Mixed UoM (e.g., split delivery is by per shipment) (based on shipment type and weight break)

Mixed UoM (e.g., split delivery is by per shipment) (based on shipment type and weight break)

N/A Mixed UoM

(e.g., split delivery is by per shipment)

(based on shipment type and weight break)

38UNCLASSIFIED

*Tier 1: Contractor EDI 220 response within 4 hours of receipt of EDI 219, pick up order within 8 operational hours of EDI 219 receipt.

Tier 2: Contractor EDI 220 response within 24 hours of receipt of EDI 219, pick up order within 48 operation hours of EDI 219 receipt.

**UoM = Unit of Measure

PRICING TEMPLATE STRUCTURE (5 SECTIONS)

Information Domestic Price Tabs

International Price Tabs

Other Price Tabs

Data & TEP calculations

Instructions and information on the Pricing Rate Table, including how weights, mileages, and sections are defined

Guide to Pricing Rate Table Submission Checklist

(1a) Directions (1b) Service Areas

Pricing Rate Table for offerors to fill in all proposed prices for domestic shipping, including linehaul rates

(2a) Dom Linehaul Prices T1 (2b) Dom Linehaul Prices T2

(2c) Dom Linehaul Prices TDSL (2d) Schedule Truck Prices

(2e) Next Flight Out Not to Exceed

Requires Offeror Inputs

Pricing Rate Table for offerors to fill in all proposed prices for international shipping, including linehaul rates

(3a-c) (O)CONUS to (O)CONUS

Requires Offeror Inputs

Sections for offerors to input proposed prices for over-arching components (e.g., implementation, annual discounts)

(4a) Accessorials (4b) Additional Prices

(4c) Price Escalation Discount

Requires Offeror Inputs

Contains estimated quantities to calculate total price, and projects price per contract year based off proposed prices, price escalations, and those estimated quantities

Shipment Counts & Calculations Tabs

39UNCLASSIFIED

PRICE– EVALUATION CRITERIA

• Price will be evaluated for completeness and reasonableness; however, price will not be rated.

• To be eligible for award, the Offeror’s TEP must be determined fair and reasonable using one or more of the techniques set forth in FAR 15.404-1(b)(2). In addition, unit prices not included in the TEP, as identified in Attachment 2, Pricing Rate Table, will also be evaluated for fair and reasonableness using such techniques.

• IAW FAR 15-404-1(g), the Government may determine an Offeror to be ineligible for award if prices proposed are materially unbalanced and pose an unacceptable risk to the Government. Unbalanced pricing exists when, despite a fair and reasonable TEP, the price of one or more line items is significantly overstated or understated.

SOURCE SELECTION PROCESS FLOW

Proposal Submission

Initial Evaluations

Competitive Range

Determination Open

Discussions*

Request Final Proposal

Revisions*

Evaluate Final Proposal Revisions

Best Value Decision

Contract Award*

EVALUATION PROCESS OVERVIEW (FAR 52.212-2)

• Government intends to award a single Indefinite Delivery Indefinite Quantity (IDIQ) contract as a result of this solicitation after conducting discussions with Offerors whose proposals have been determined to be within the competitive range

– The Contracting Officer may limit the number of proposals in the competitive range to the greatest number that will permit an efficient competition among the most highly rated proposals

– The Offeror’s initial proposal should contain the Offeror’s best terms from a price and technical standpoint.

• Performance Price Tradeoff (PPT) procedures will be utilized in accordance with (IAW) FAR 15.101-1. Offerors' past performance will be evaluated on a basis approximately equal to cost or price considerations.

EVALUATION PROCESS OVERVIEW (CONT’D)

• To receive award, the Offeror must (1) be deemed responsible IAW FAR Part 9, (2) conform to all required terms and conditions, and (3) represent the best value to the Government price and other factors considered.

– This may result in an award to a higher rated, higher priced Offeror, where the decision is consistent with the evaluation factors and the Source Selection Authority (SSA) reasonably determines that the superior past performance of the higher priced Offeror outweighs the cost difference.

*TENTATIVE* ACQUISITION MILESTONES

CONTRACT ACTIONS ESTIMATED COMPLETION DATES

Issue Solicitation 13 July 2023

Receive Proposals / Initiate Source Selection Process

14 August 2023

Enter Discussions 22 December 2023

Request Final Proposal Revisions 02 February 2024

Award Contract 01 April 2024

Performance Start 01 May 2024

TOGETHER, WE DELIVER.TOGETHER, WE DELIVER.

Questions

BACK UP SLIDES

PRICING BACK UP SLIDES

SECTION 1 - INFORMATION

This section is divided into 4 tabs and provides information on all pricing components included in the TEP and directions for filling out the price proposal

Information Instructions and information on the Pricing Rate Table, including how weights, mileages, and peak vs non-peak seasons are defined

Tabs Description

Guide to Pricing Rate Table

• Provides similar background on the five sections of the RFP

• Provides definitions to commonly used acronyms

Submission Checklist • Allows offeror to track completion of each individual price sheet

Directions

• Instructions and requirements crucial to the pricing structure process

(e.g., services are included in each price, tiers of service required)

• Details of how prices are calculated for each element in the price sheets

Service Areas

• Origins and destinations for shipments included in the TEP

• List of all domestic Zip3s and their mapping to 226 service areas

• List of all international rate areas (additional information and maps are located in RFP Attachment 3)

1a

1b

SECTION 2 – DOMESTIC PRICING

The domestic pricing section is divided into 5 tabs containing each price element in domestic shipping

Domestic Prices Tabs for offerors to fill in all proposed prices for domestic shipping

Requires offeror inputs

Tabs Description

Linehaul Prices

• Tier 1 and Tier 2 Linehaul rates are proposed for each origin service area (226), mileage band (10 bands), and weight band (8 bands)

• There are 10 mileage bands from 0 – 4000+ miles

• There are 8 weight bands: 150-500 lbs, 501-1,000 lbs, 1,001-2000 lbs, 2,001-5,000 lbs, 5,001-10,000 lbs, 10,001 – 15,000 lbs, 15,001-20,000 lbs, 20,001+ lbs

• Tier 1 and Tier 2 Linehaul proposed prices are entered per cwt per mile

TDSL Linehaul Prices

• TDSL Linehaul rates are proposed for each origin service area (226), mileage band (10 bands), and weight band (7 bands)

• There are 10 mileage bands from 0 – 4000+ miles

• There are 7 weight bands: 150-500 lbs, 501-1,000 lbs, 1,001-2000 lbs, 2,001-3,000 lbs, 3,001-4,000 lbs, 4,001 – 5,000 lbs, 5,001+ lbs

• TDSL Linehaul proposed prices are entered per cwt per mile

2a

2b

2c

DOMESTIC SHIPMENT EXAMPLE

• Details:

– 40 cwt (4,000 lbs)

– Originating in Anniston, AL

– Being shipped 1,200 miles

– With a per cwt per mile price of $0.05

• 40 cwt x 1,200 miles x $0.050 per cwt per mile = $2,400.00

SECTION 2 – DOMESTIC PRICING (CONT’D)

The domestic pricing section is divided into 5 tabs containing each price element in domestic shipping

Domestic Prices Tabs for offerors to fill in all proposed prices for domestic shipping

Requires offeror inputs

Tabs Description

Scheduled Truck Prices

• Scheduled Truck rates are proposed for each origin / destination pair for 42 pre-defined routes

• Scheduled Truck prices are entered per trip

Next Flight Out Not to Exceed Prices

• Next Flight Out Not to Exceed rates are proposed for two origin service area (2), mileage band (5 bands), and weight band (7 bands)

• There are 5 mileage bands from 0 – 1500+ miles

• There are 7 weight bands: 0-500 lbs, 501-1,000 lbs, 1,001-2000 lbs, 2,001-

3,000 lbs, 3,001-4,000 lbs, 4,001 – 5,000 lbs, 5,001+ lbs

• Linehaul proposed prices are entered per cwt per mile. At the time of ordering a Next Flight Out service, the price per cwt could not exceed the cwt on file.

2d

2e

SECTION 3 – INTERNATIONAL PRICING

The international pricing section is divided into 3 tabs containing each price element in international shipping

International Prices

Tabs for offerors to fill in all proposed prices for international shipping

Requires offeror inputs

Tabs Description

(O)CONUS

to

(O)CONUS

Prices

• International prices are based on country to country O/D pairs – and proposed per cwt

• There are 66 origins / destinations (incl. domestic locations)

• CONUS to OCONUS shipments include both TDSL and Tier 1 shipment pricing.

3b

3a

3c

SECTION 4 – OTHER PRICES

This pricing section is divided into 3 tabs containing all other price elements included in the RFP

Other Prices Sections for offerors to input proposed prices for over-arching components

(e.g., accessorials, annual discounts)

Requires offeror inputs

Tabs Description

Accessorials

• Accessorial prices are proposed by shipment type and weight break.

• Unit of measure vary by accessorial.

• All other service costs not identified in this template shall be covered in the overall price of the shipment

Additional Prices

• There are various additional prices proposed in this sheet

– System Implementation (one-time amount)

– Site Implementation (proposed for each of the 24 sites)

– One time only administrative overhead fee (applied as a percentage of total linehaul)

– Equipment factors (proposed for each of the 20 equipment groupings)

Price Escalation Discounts

• IHS Markit Pricing and Purchasing Industry Forecasting is used to adjust rates in out years

• Offerors are also encouraged to propose discounts off of these yearly government-set price escalations

4a

4b

4c

SECTION 4 – OTHER PRICES (CONT’D)

• In order to protect the Contractor and Government against significant market fluctuations, an Annual Price Adjustment will be done using IHS Markit Cost Index

• Price escalation rates detailed in tab 4c – Price Escalation Discounts are forecasted. Price escalation rates will be updated to reflect the current IHS Markit Cost Index rates per PWS Appendix J at the time they are applied

• Price escalation rates are weighted for each category as follows: United States, Cost Index, General Freight Trucking Long-Distance LTL (85%) and United States, Cost Index, Scheduled Freight Air Transportation (15%). All domestic portions of a move are subject to a Fuel Rate Adjustment that is accounted for outside of the Annual Price Adjustment

• Offerors may propose discounts off the Government-set price escalation rates using tab 4c

SECTION 5 – DATA AND CALCULATIONS

The domestic and international price calculation sections autofill projected prices for each contract year based on proposed prices and estimated quantities

Data & TEP calculations

Contains estimated quantities to calculate total price, and projects price per contract year based off proposed prices, price escalations, and those estimated quantities

Tabs Description

Estimated Quantities

• There are a number of tabs (e.g., domestic shipment counts) which provide detailed estimated quantities

• Use this information to help drive a more refined price proposal in conjunction with Attachment 10 – DFTS I Historical Data 2021 - 2022

Calculations

• Prices are auto-calculated for all domestic and international price components included in the TEP (e.g., domestic linehaul, international linehaul)

• These tabs reference inputs from offeror price sheets and estimated quantities

QUESTIONS

TOGETHER, WE DELIVER.