Wind_River_Questions_-8-12-2014.pdf

Question Page Original Question and

Response (in Red or Blue)

Follow-Up Question Contracting Officer’s Response

#5 1 st Please provide an annual fuel and utility estimate for the

Wind River Center.

Since this is a brand new facility, therefore there are no historical uti l i ty costs available.

Since no utility cost estimates are being given it will be difficult to propose an amount. Typically the government provides the estimate for all contractors to include in the price as utilities can be a significant cost to the contract. Is it expected that contractors will leave the estimate blank and the contract’s estimated cost will be increased after award based on actual costs?

Please see the attached estimate for utility expenses. Please keep in mind that since there are no actual utility costs for this center that this is simply an estimate that draws upon utility information from similarly sized centers.

#8 1 st The RFP indicates the offerer shall determine the inflationary r a t e used for projecting costs. The staff compensation report indicates a 1.40% inflationary rate. Please clarify.

The Job Corps Inflation Rate is O.OO%.

We believe the 1.4% on the Nat’l Staff

Comp. Report was meant for the report only. In L.6.I.4.d.1 it states, “For the purposes of this RFP, the inflationary rate used in projecting costs shall be determined by the offeror”. We believe the comment about Job Corps inflation rate of 0.00% be rescinded.

The Contracting Officer wishes to correct the answer in response to this question. The 1.4% inflationary rate that is in the National Staff

Compensation Report was meant solely for the report. Contractors shall propose their own estimated inflationary rate which will be analyzed during DOL’s cost analysis, negotiated during discussions (if necessary) and become part of the resulting contract.

#10 1 st Since the Wind

River Center will be a new

Center, can the government provide the anticipated start date and build-up plan for student arrivals?

At what date does the government anticipate the

Center will reach 100%

OBS capacity?

The anticipated award date is January 1 , 2015. The successful offeror will coordinate with the

Outreach/Admission providers and the Dallas Job

Corps Regional Office to establish an OBS build-up plan and timeline.

This answer states the build-up plan will be provided after award. Please provide a build-up plan as it is essential in knowing how to cost the build-up period.

Please see the attached estimated build up plan and note the Wind River Job

Corps Center does not have

Outreach/Admissions (OA) attach to this contract. Arrival goals will be finalized post award with the assigned

OA contractor(s).

#11 1

Will the contractor be responsible to procure furniture, furnishings and equipment for the Center, including all CTT Trades?

No.

What will the successful contractor’s responsibilities be for procuring center material during start up, specifically center furniture and other capital items?

Typically, the new contractor is responsible for procuring the new furniture during the start-up period.

This decision will impact the contractor’s start-up plan and resources required for start-up activities.

The Contracting Officer wishes to correct the answer in response to this question. The contractor will be responsible for procuring furniture, furnishings and equipment for the center, including all CTT trades. These costs will be a part of the NTE line for

Construction, Rehabilitation and

Acquisition (CRA) CLIN 5001. Please see the attached list of anticipated equipment, furnishings and furniture.

After contract award, the Government intends to provide the contractor a list of required CTT equipment and furniture binders that provide specifications, pricing, floor plans and three recommended bids from the GSA schedule. Note: The cost of furniture, furnishings and equipment should not be included in the pricing schedule of the proposal, as it is funding through an

NTE line.

#12 1

Previous start-up RFPs included a Start-up Plan. Will there be a Start-up Plan required for this procurement? Will this be a separate section in the Cost

Proposal?

A separate section can be added to accommodate a detailed start- up plan.

Is a start-up plan required or optional?

What are the specific requirements for the start-up plan? What is the page limit? Is it a requirement of the RFP?

Which volume (Staff Resources or

Technical Approach) should include the start-up plan? How will it be evaluated?

The start up plan is required and shall be a part of the Staff Resources

Proposal. Section L.6.I.3.g is amended to read as follows: Start-up Plan: The incumbent shall submit a Start-up plan.

The Start-up plan shall include the period of time required for each action, staff requirements, and major steps to be accomplished during the Start-up.

Costs associated with the Start-up Plan shall be submitted as part of the

Business Management Proposal.

Attached is information regarding the

Government’s expectations for the

Start-up plan.

The Center is scheduled to begin Start-up January 1, 2015 with the Build-up scheduled to begin May 12, 2015.

Costs associated with the Start-up Plan shall be submitted as part of the

Business Management Proposal.

#13 2nd Since this is a start- up contract and there is no incumbent operator, what is the length of time the government estimates the contractor has to hire staff, procure equipment and recruit students prior to the opening of the Center?

To ensure proper equipment training, several maintenance and cafeteria staff will have specific start dates. The specific dates will be provided during the post award conference.

Recruitment of students i s not part of the scope of this contract.

Response states that several maintenance staff and cafeteria staff will have specific start dates but they will be provided during the post award conference. If they are available, why are they not being shared with potential offerers so everyone will be able to provide consistent pricing for these positions? Are there specific hire dates for other positions? For start-up proposals, the cost is dependent on the hire dates of staff.

Please see the attached estimated expectations regarding the Start-up plan.

It is anticipated that the center will begin accepting students May 12, 2015 and OBS will be at 300 by November

20, 2015. Offerors should provide separate 2110’s for the

Startup/transition period from January

1, 2015 through May 11, 2015 and the

Build-up period from May 12, 2015 through December 31, 2015

The anticipated date for the successful offeror to take occupancy of the center is March 1, 2015. All maintenance staff must be hired and onboard by March

15, 2015 to receive formal instruction/training on center equipment.

#1 5 th Please clarify the anticipated contract start date and confirm that the student ramp-up will begin in month 7 of the first year, which would start in July.

The anticipated contract start date will be

January 1, 2015 and student ramp-up will begin on or about May 5, 2015.

The answer is confusing. In parts of the proposal it states that the build-up period will begin on July 1 but you state here students start arriving on May 5.

Usually, the start-up period ends when students begin arriving. (Thus, the build-up period coincides with the arrival of students.) Is it intended for the start-up period to be 6 months (Jan –

June), and the build-up period to follow for 6 months (July – Dec), during which students start arriving.

The anticipated contract start date will be January 1, 2015 and the first student input will begin May 12, 2015.

#3 5 th Please clarify the location of this entry. Since this position is a full-time staff, not intermittent or part-time, they will be located on line 13 in the 2110.

We believe OA/CTS staff need to be on

Line 09 instead of 13. On page 75, Line

09 of the staffing chart, in the RFP there is a space for “Incidental OA/CTS

Staff”.

The OA/CTS Coordinator is a full-time position that is attached to center operations and should be included in line 13 of the 2110. It is improper to code these staff under Line 09, as breakout OA funding will not be provided. Only center operations

CLINS will be funded.

#6 8 th How many GSA vehicles does DOL plan to assign to the Wind River center?

All associated costs with GSA vehicles will be processed at the Job

Corps National

Office.

Although we understand that GSA

Vehicles costs will be processed at the

National Office we still need to know how many vehicles are on center for insurance purposes, etc.

Please see the attached anticipated GSA fleet information.

#3 12

OBS below 95% for continuous six month period is referenced yet for the first year of the contract, OBS will not be at full capacity.

Does the government still intend to utilize this section during the startup and build-up periods?

No, it does not apply to the first base year.

This section was not changed in the

Revised RFP. In the Final Model RFP, this paragraph was removed entirely.

The Contracting Officer wishes to correct the answer in response to this question. Please see the revised section

C, Center Design, of the Statement of work below.

Section G describes the fee structure.

We believe Wind River should have a fixed fee for the 1 st and 2 nd Years as the center is new it would be difficult to obtain a high OMS rating. We believe the structure should be the same as the

New Hampshire JCC.

The solicitation is amended to reflect a cost plus fixed fee of 4.0% for the base period and a cost plus incentive fee structure for the option years.

#7 13th Will the government provide the curriculum, equipment and supply needs, instructor qualifications, and CTT certifications for the proposed Energy

Technician/Extraction

CTT program in order to accurately cost staff salaries, training supplies, certification costs, etc.?

No, the Energy Extraction

Trade is still in development and the requested information i s not available at this time.

The response states the Energy

Extraction trade is still in development, so no pricing information for curriculum, supplies and materials, equipment repairs and rentals, CTT certifications and costs, instructor qualifications, memberships in organizations, is available. Do offerers provide an estimate or leave as $0 cost with provision for Request for Equitable

Adjustment for actual costs incurred?

Without this information, contractors have no basis for the government’s expectations and what will be required to qualify as a completer in this trade.

Although the ETT is still in development, the estimated staff salary per FTE is $100,000. All offerors shall use this salary information as an estimate for the associated FTE.

All other associated costs will be funded through the contract on the

CRA, not to exceed (NTE) line.

Therefore, offerors will not be provided with the curriculum, equipment and supply needs at this time.

#13 14th The RFP does not include the Executive Order-

Minimum Wage for

Contractors, which takes effect on January 1, 2015.

Based on the start date of

January I, 2015, the

Executive Order seems relevant to this contract.

Please clarify/correct.

The applicable DBA and

SCA wage determinations are cited in Section J of the revised solicitation.

The answer is not consistent with the question. The question was concerning new federal contract minimum wage of

$10.10 per hour that is relevant to this contract. The answer related to DBA and SCA wage determinations, which are applicable regardless of the new executive order.

By its terms, the Order applies to contracts where the solicitation has been issued on or after January 1, 2015.

However, the Department of Labor is working on rules to implement the order and the Department has asserted that within 60 days of the Secretary of Labor issuing final regulations, the Federal

Acquisition Regulatory Council (FAR

Council) will amend the Federal

Acquisition Regulation (FAR) to provide for inclusion of a contract clause in Federal procurement solicitations and contracts subject to the

Order.

Once such FAR clause is issued, the

Contracting Officer will assess the clauses’ impact, if any, on this contract.

#15 15

Please clarify the appropriate Davis-Bacon w a g e determination to incorporate into subcontracts. The RFP states: "Contracts shall also ensure that they are incorporating the prevailing Davis Bacon

Wage Determination as of the day that the subcontract is awarded."

Does this mean to incorporate the current WD that is effective in the contract? Based on the

FAR and the Wage

Determination

Online .gov website, the contracting officer should incorporate a new WD with each option year and only WD’s incorporated by the contracting officer are applicable to a contract.

The current wage determinations apply to the base contract and to possible subcontracts.

Will the RFP language be revised to clarify the application of the Davis-

Bacon wage determinations?

Contractors are required to comply with the wage determination that is incorporated into the contract. And, Contracting Officers will incorporate new wage determinations, when applicable, at the time of contract option year award.

#16 15

Please clarify if Davis-

Bacon applies only to subcontracts awarded by contractors.

Yes (also Service Contract

Act wage determinations).

Answer to question regarding DBA applying only to subcontractors is different from answer provided to same question for New Hampshire RFP.

The Contracting Officer wishes to correct the answer in response to this question. The Davis-Bacon wage determination applies to both the prime contractor and subcontractors.

#18 15 th The RFP includes FAR

52.232-8- Discounts for

Prompt Payment, which is relevant for fixed-price supply contract or fixed-price service contracts.

Please clarify if discounts for prompt payments will be considered by the government for this cost-reimbursable-fixed-fee contract.

See the revised solicitation.

The answer references the revised solicitation, but the FAR 52.232-8 –

Discounts for Prompt Payment is still included in the solicitation. Please clarify if discounts for prompt payments will be considered by the government for this contract. If so, this is new to Job

Corps procurements.

The solicitation is amended to remove

FAR 52.232-8, Discounts for Prompt

Payment.

#20 15

National Staff

Compensation Report-

The Pay Group 1 references a Minimum salary level of

$20,640. This report does not seem to incorporate the

Federal Contract Minimum wage of $10.10/hour, which becomes effective

January 1, 2015. The new required hourly wage would result in a minimum salary of at least $21,008/year.

Please clarify/revise.

The Minimum Wage doesn't change until 1/l/15 and the Department of

Labor has until 10/1/14 to issue

'implementing regulations'.

When the regulations have been issued Job Corps Pay

Grades will be changed accordingly.

Answer states that National Staff

Compensation Report will be changed when “implementing regulations” are issued. Will this impact the Wind River procurement?

Please see the answer above regarding the implementation of Executive Order

13658 and its potential impact on this contract.

Page 8, Section

C.1.C

New

Quest.

The revised RFP references disallowed costs for exceeding 103% of the contracted OBS “at any point during each Program Year.” In the Final Model

RFP, this section was revised to reference the contract year average

OBS.

Please see the answer above regarding

Section C, Center Design of the

Statement of Work.

101 Page 101 of the RFP says the Past

Performance narrative has a 10-page limit, but page 110 says it has a 5-page limit. Which is it?

Past Performance narrative has a 10-page limitation.

History for New Job Corps Centers shows that in Section F.5 Deliverables that an input schedule is applicable.

Please clarify what parameters you are requesting without making an input schedule apply in this RFP?

Please see the attached build-up plan.

Will the contractor need to purchase all miscellaneous recreational items such as weight machines, pool tables, etc.

and all kitchen items such as work tables, pots, pans, etc.

Yes, the contractor will be required to purchase all of these items. However, all of the items will be funded through

NTE CLINS. Thus, offerors need not price these items out in their

Cost/Business Management Proposal.

2. Section B, Supplies or Services and Prices/Costs is deleted and replaced as follows:

SECTION B SUPPLIES OR SERVICES AND PRICES/COSTS

The U.S. Department of Labor, Job Corps has a requirement for operating the Wind River Job Corps center located at 4200 Airport

Road, Riverton, Wyoming 82501.

The North American Industry Classification System (NAICS) code for this acquisition is 611519. The small business size standard is

$35.5M.

The contractor shall operate the aforementioned Job Corps center, which includes provision of academic, career technical, career success skills, and career development training, and related support services, for an estimated total of 130 residential male students, 130 residential female students, 20 nonresidential male students and 20 nonresidential female students. The contractor shall operate residential quarters

(housing) and services to all students as applicable.

The contractor shall provide Outreach and Admissions services in the state of

___N/A___ and shall ensure the arrival of a minimum of ___N/A___ students into the Job Corps program annually for residential male and female students, and nonresidential male and female students.

The contractor shall provide Post-Center Career Transition Services annually for __N/A__ youth returning to the state(s) of

______N/A_________.

All operations, services, and deliverables under these items shall be provided as specified in Sections C and F of this document.

The amount to be reimbursed to the contractor for purchased accountable property and exclusive of excess personal property (as defined in the DOL Property Handbook for Employment and Training Administration contractors, including revisions and amendments thereto), is provided in the pricing schedule below.

The contractor agrees that the costs generated under rehabilitation and equipment shall be maintained in a separate accounting classification to be entitled "Capital Expense Accounts," as outlined in PRH Chapter 5 and Appendix 502.

The Government and the contractor recognize that the estimated costs provided for in each of the 2 years of the initial contract (base) period and in each of the option periods are solely for the individual periods designated and are not considered to be a cumulative amount.

LINE

ITEM

DESCRIPTION ESTIMATED

COST

FUNDS

OBLIGATED

FUNDING

THROUGH

Start-Up Period – January 1, 2015 through May 11, 2015

0001a Center Operations (A)

0001b Center Operations Fixed

Fee (A)

Build-Up Period – May 12, 2015 through December 31, 2015

0001a Center Operations (A)

Full Center Operations Base Period – January 1, 2016 through December 31, 2016

Option Year One – January 1, 2017 through December 31, 2017

1001a Center Operations (A)

1001b Center Operations

Technical Performance

Incentive Fee (A)

1001c Center Operations Cost

Option Year Two January 1, 2018 through December 31, 2018

2001a Center Operations (A)

2001b Center Operations

2001c Center Operations Cost

Incentive Fee, (A)

Option Year Three January 1, 2019 through December 31, 2019

3001a Center Operations (A)

3001b Center Operations

3001c Center Operations Cost

Transition Out – Period of Performance TBD

4001t Transition Out Period (A)

NOT TO EXCEED LINE ITEMS

Period of Performance – Entire Duration of the Contract

LINE

ITEM

(CLIN)

DESCRIPTION

NTE

CEILING

FUNDS

OBLIGATED

FUNDING

THROUGH

NTE CEILING

BALANCE (NTE

Ceiling-Funds

Obligated)

Construction, Rehabilitation and Acquisition

(CRA)(B1)

5002 Equipment (B2)

Career technical

Skills Training

(B4)

Student

Transportation

(D)

5005 Other Support (S)

Demonstration

Projects - TBD

The above NTE amounts are for the total of the 5-year contract period, to include a possible six months in accordance with FAR 52.217-8, Option to Extend Services.

*For capital line items including Construction, Rehabilitation, and Acquisition; Equipment; and Career Technical Skills Training (CTST), a “not to exceed” (NTE) ceiling will apply for the base period and each option year of the contract, to include a possible six months under

FAR 52.217-8, Option to Extend Services.

**For Demonstration Projects, a “not to exceed” ceiling will be negotiated at the time that Demonstration projects, if any, are identified, and incorporated by contract modification.

***Note: Construction, Rehabilitation, and Acquisition (CRA), Equipment, Career Technical Skills Training, Student Transportation and

Other Support is not broken down by year. The above NTE amounts are for the total of the 5-year contract period, to include a possible six months under FAR 52.217-8, Option to Extend Services.

****As a start-up operation, the contractor will have access to the center upon substantial completion of the facility. It is anticipated this will occur on or about March 1, 2015. It is anticipated the first student input will arrive on or about May 12, 2015.

Further, there shall be no fixed fee based on work involved with capital effort, which consists of work or purchases funded under the

Construction, Rehabilitation, and Acquisition; Equipment; and CTST categories listed above. There shall be no increase in fixed fee unless there is an increase in the level of effort approved by the Contracting Officer. Indirect cost charges shall not be allowed for or based on Construction, Rehabilitation, and Acquisition; Equipment; or CTST costs.

3. Section C of the Statement of Work, Section C, Center Design is revised as follows:

C. Center Design

The center shall operate at a planned, average on-board strength as noted below:

Category Number

Residential Male Students 130

Residential Female Students 130

Subtotal Residential Students 260

Nonresidential Male Students 20

Nonresidential Female Students 20

Subtotal Nonresidential Students 40

Total Planned Average On-Board Strength 300

The contractor shall be continually prepared to receive a sufficient number of students to maintain the average on-board strength capacity noted above and a surge capacity of up to 103 percent, where facilities can accommodate the increased capacity. Performance up to 103 percent of capacity shall be performed within the estimated cost of this contract.

During each Contract Year, the contractor shall not exceed an average of 103% of the planned OBS specified above. The contractor cannot request students or otherwise indicate availability to accept students to the extent fulfilling that request would put the center over the Contract Year average OBS of 103%. All costs incurred resulting from any enrollments which cause the contractor’s OBS to exceed the Contract Year average of 103%, shall be deemed unallowable. In addition, the Department reserves the right to pursue legal action or otherwise seek relief against any contractors exceeding 103% Contract Year average.

In the event that nonresidential students are enrolled, they shall be provided the following services, in addition to the core services available to all students:

1. Transportation to and from the training site for training days and for limited recreational activities.

2. A locker, lock, and nonresidential student lounge.

3. Lunch on all training days.

4. Breakfast on all training days.

5. Supper and weekend meals if the student wishes to remain on center. Center transportation is not mandatory when students stay for supper and weekend meals.

6. All benefits residential students receive, except as noted herein.

Nonresidential students shall be considered to be in the performance of duty as Federal employees from the time they physically arrive at any scheduled center activity or program until they leave such activity or program.

4. Section F.2, Type of Contract is amended as follows:

F.2 TYPE OF CONTRACT

Years 1 and 2 (Start-up, Build-up, Full Operations Base Period) is a cost plus fixed fee type contract.

Years 3 through 5 the contract is a Cost-plus-incentive-fee contract.

5. Section F.3, Period of Performance is amended as follows:

F.3 PERIOD OF PERFORMANCE

The contractor shall perform necessary functions related to a transition period for assuming responsibility for the operation of the center for a period of one year, starting on the effective date of contract award. There will be a Start-Up period will be January 1, 2015 through

May 11, 2015. Build-up will be from May 12, 2015 through December 31, 2015. Full Center Operations base period will be from

January 1, 2016 through December 31, 2016. In addition, there will be three, one-year options at the Government’s discretion

6. Section G.3, Fees is amended as follows:

G.3 FEES

G.3.1 Fixed Fee

During the first two years of the contract, the type of contract will be cost, plus fixed fee. The fixed fee shall be 4.0%

G.3.1 Technical Performance Incentive Fee:

During the three option year of the contract, the type of contract will be cost plus incentive fee.

Under the terms of this cost plus incentive fee arrangement, the contractor shall have the opportunity to earn a technical performance incentive fee and a technical performance excellence bonus for center operations, and for Outreach/Admissions (OA), and Career

Transition Services (CTS), if applicable, based on achievement of goals. The technical performance incentive fee shall range from 0% to

2.4% of total direct and indirect costs, excluding fee, CRA (CLIN 5001), equipment (CLIN 5002), CTST (CLIN 5003), and demonstration projects (5004).

Annually, the Employment & Training Administration, Office of Job Corps, will establish and publish the performance range for the upcoming Program Year. Performance ranges may fluctuate from year to year based on performance history for the preceding year. To ensure that eventual costs to the Government do not exceed budget availability, the performance range will be set so that there is a balanced distribution between higher and lower performers.

The performance range will identify maximum and minimum incentive fee payment levels as follows:

Maximum: level at which the contractor receives the maximum available incentive fee payment (2.4%)

Minimum: level below which the contractor receives no incentive fee payment (0%)

Incremental incentive fee payment levels will be established for each level of OMS performance (to one decimal point) within each

Program Year’s established performance range; i.e., amounts will be established incrementally for 90.0%, 90.1%, 90.2%, etc.

The contractor’s performance and the amount of technical performance incentive fee earned shall be determined annually after the close of the contract year, based on achievement of Program Year goals within the Office of Job Corps’ Outcome Measurement System. Each contractor’s performance will be evaluated based on the portion of the contract year that occurred during the Program Year for which the performance range was in effect.

In order to motivate and reward excellence in performance, those contractors whose performance exceeds the top of the National

Performance Range will be eligible to earn a technical performance excellence bonus. The bonus will be awarded for performance above the top of the National Performance Range The amount of the performance excellence bonus pool for the contract will be equal to 10% of the maximum total of the minimum cost incentive fee (2.0%) + technical performance incentive fee (2.4%). The bonus pool will be distributed in equal incremental amounts throughout the bonus range.

Under the resultant terms of this contract, the minimum cost incentive fee (described below), the technical performance incentive fee, and the maximum technical performance excellence bonus for Center Operations shall be as follows:

Center Operations:

Contract

Year

Minimum

Cost

Incentive

Fee

(2.0%)

Minimum

Technical

Performance

Incentive

Fee (0%)

Average

Technical

Performance

Incentive Fee

(1.2%)

Maximum

Performance

Incentive Fee

(2.4%)

Maximum

Technical

Performance

Excellence Bonus

(.44%)

G.3.2 Cost Incentive Fee:

The contractor shall also perform under the parameters of a cost incentive fee structure during the three option years. Under the incentive fee structure, the contractor shall have the opportunity to earn a cost incentive fee, based upon the relationship between the contractor’s actual costs versus its target cost for each contract year.

The cost incentive fee shall range from 2.0% to 3.6% of total direct and indirect costs, excluding CRA (CLIN 5001), equipment (CLIN

5002), CTST (CLIN 5003), and demonstration projects (5004). However, the contractor’s minimum cost incentive fee of 2% may be unilaterally reduced to 0% by the Contracting Officer if the contractor’s actual costs exceed the target cost by greater than 10%.

The following shall form the basis of the contractor’s cost incentive structure:

Term Definition of Term Center

Operations

OA CTS

Target Cost

Contractor’s current contract year’s estimated operations cost (i.e., that contract year’s approved operations budget as shown on form 2181 within

FMS), excluding fees, CRA

(CLIN 5001), equipment

(CLIN 5002), CTST (CLIN

5003), and demonstration projects (5004).

Option Year

One:

Option Year

Two:

Option Year

Three:

N/A N/A

Actual Cost

The actual operations costs incurred by the contract as a result of contract performance

(i.e., as shown on form 2110), excluding fees, CRA (CLIN

5001), equipment (CLIN

5002), CTST (CLIN 5003),

and demonstration projects

(5004)

Option Year

One:

Option Year

Two:

Option Year

Three:

Minimum

Cost

Incentive

Fee

Minimum Cost Incentive Fee =

2.0% of total direct and indirect costs, excluding fees, CRA (CLIN 5001), equipment

(CLIN 5002), CTST (CLIN

5003), and demonstration projects (5004).

Please note that the minimum cost incentive fee operates in the same way as a fixed fee and therefore, the dollar amount of the minimum fee does not increase as the contractor’s costs increase, unless approved by the Contracting

Officer.

Contractor’s minimum cost incentive fee of 2% may be unilaterally reduced to 0% by the Contracting Officer if the contractor’s actual costs exceed the target cost by greater than 10%.

Option Year

One:

Option Year

Two:

Option Year

Three:

N/A N/A

Maximum

Cost

Fee

Maximum Cost Incentive Fee

Possible = 3.6% of total direct and indirect costs, excluding fees, CRA (CLIN 5001), equipment (CLIN 5002), CTST (CLIN 5003), and demonstration projects (5004).

Option Year

One:

Option Year

Two:

Option Year

Three:

N/A N/A

Target Cost

Incentive fee

2.8% of total direct and indirect costs, excluding fees, CRA (CLIN 5001), equipment

Option Year

One:

Option Year

This is the cost incentive fee that the contractor earns if the contractor’s actual costs are equal to the Target

Cost

(CLIN 5002), CTST (CLIN

5003), and demonstration projects (5004).

Two:

Option Year

Three:

Term Definition of Term Center

Operations

OA CTS

Cost

Overrun and Cost

Underrun variances

A cost overrun variance occurs when actual operations cost is more than the budgeted cost in a given contract year.

A cost underrun variance occurs when actual operations cost is less than the budgeted cost in a given contract year.

The contract year’s variance will be reported on the form

2110.

N/A N/A

Fee

Adjustment

Formula – used to calculate

Cost

Fee Earned

Cost Sharing Ratio for cost overruns =

20% Government / 80%

Contractor

Benefit Ratio for cost underruns =

80% Government / 20%

Contractor

Calculation of the Final

Cost

Incentive

Fee earned

(see Note

2)

Final Cost Incentive Fee =

Target Cost Incentive Fee + /-

(Cost Underrun or Cost

Overrun variance * Contractor

Share)

(see Note 2)

Option Year

One:

Option Year

Two:

Option Year

Three:

Note 1: In accordance with cost reporting requirements as found in Appendices 502 and 503 of the PRH.

Note 2: The Final Cost Incentive Fee earned will not be less than 2.0% of total direct and indirect costs (minimum cost incentive fee) and not more than 3.6% of total direct and indirect costs (maximum cost incentive fee). Contractor’s minimum cost incentive fee of 2% may be unilaterally reduced to 0% by the Contracting Officer if the contractor’s Actual costs exceed the Target cost by greater than

10%.

G.3.3 Billing and Payment of Fees:

Fixed Fee:

During the first two years of the contract, the contractor will be permitted to bill the total amount of the fixed fee in 48 increments. Thus, each invoice shall include 1/48 of the total fixed fee.

Cost Incentive Fee:

The contractor will be permitted to invoice the 2.0% minimum cost incentive fee (fixed fee) on a twice a monthly basis, to be included in the invoice described in Section G.5, Invoice Requirements. On its invoice, the contractor would invoice the total minimum cost incentive fee in equal increments. For example, if the estimated cost for operations during base year 1 (a 12-month period of performance) is

$12,000,000, then 2% of $12,000,000 is $240,000, and the contractor could include on each invoice 1/24th of $240,000 or $10,000.

Upon completion of the contract year, the Contracting Officer will determine the amount of cost incentive fee earned by the contractor, using the cost incentive fee calculation identified in the table above. If additional cost incentive fee is earned, above the minimum 2.0% which the contractor has already billed, the Contracting Officer will issue a unilateral contract modification to increase the estimated cost and funding on the contract’s cost incentive fee line. Upon receipt of the modification, the contractor would include the additional cost incentive fee earned on the next monthly invoice. If there is no additional fee earned, the Contracting Office will advise the contractor accordingly.

As stated above, the contractor’s minimum cost incentive fee of 2% may be unilaterally reduced to 0% by the Contracting Officer if the contractor’s actual costs exceed the target cost by greater than 10%. If the contractor’s cost incentive fee is reduced to 0%, the contractor shall be required to reimburse the Government for all cost incentive fee that was invoiced during the course of contract performance. This determination will be made by the Contracting Officer, upon completion of each contract year.

Technical Performance Incentive Fee:

Upon completion of the contract year, the Contracting Officer will utilize the Office of Job Corps’ Outcome Measurement System (OMS) data to evaluate the contractor’s overall technical performance, based on achievement of Program Years’ goals, and will determine the level of technical performance incentive fee earned by the contractor. The Contracting Officer will then issue a unilateral contract modification to increase the estimated cost and funding on the contract’s technical performance incentive fee line if incentive fee is earned. Upon receipt of the modification, the contractor would include the technical performance incentive fee earned on the next monthly invoice. Performance Excellence Bonuses will be awarded at the end of the contract year as well. Please note that the contractor shall not invoice for any technical performance incentive fee or Performance Excellence Bonuses until the unilateral modification has been awarded. If there is no additional fee earned, the Contracting Office will advise the contractor accordingly.

7. Section G.7, Student Per Year Cost and Per Day Cost is amended as follows:

G.7 STUDENT PER YEAR COST AND PER DAY COST

The Student Per Year Cost and Per Day Cost in whole dollars are as follows:

Period of Performance

Total Estimated Cost

(excluding OA, CTS, CRA, equipment, CTST and student transportation)

OBS

Student Per Year Cost

(Total Estimated

Cost/OBS)

Student Per Day Cost (Student

Per Year Cost/406*15%)

Full Center Operations Base

Period

8. Section L.6.I.3, Staff Resources Proposal, is amended as follows:

3. Staff Resources Proposal (PRH Chapter 5)

The Staff Resources Proposal shall consist of the information described below. The page limitation for this section excludes the staffing chart provided in accordance with Section J of this RFP, resumes, staff schedules and position descriptions.

a. Organization: A detailed organization chart covering all staff for the Center. Include any contracted or National

Training Contractor staff with each, if applicable, and a completed Staffing Chart (Attachment J-4).

b. Schedules: Staff schedules showing coverage of critical functions for residential living, career preparation, academic and career technical training, counseling and security.

c. Key Personnel: Key personnel is the Center Director

Offerors shall indicate whether the person being proposed as key personnel is currently being proposed for a center staff position on any other proposals.

Offerors must notify the Contracting Officer in writing of any change in the availability of proposed key personnel when the change in status occurs, at any point in the procurement process.

i. Resume: Provide resume and position description of the proposed Center Director.

(excluding OA, CTS, CRA, equipment, CTST and student transportation)

OBS

Student Per Year Cost

(Total Estimated

Cost/OBS)

Student Per Day Cost (Student

Per Year Cost/365*15%)

Option Year One $

Option Year Two $

Option Year Three $

Average $

The resume shall include information on the nominee’s educational and training accomplishments, as well as past work and other relevant experience, including any special accomplishments and skills. In addition to the resume, offerors shall provide a letter of commitment from the Center Director proposed to work on the contract.

d. Position Descriptions: Provide position descriptions for the following personnel:

i. Deputy Center Director

ii. Administration Director/Manager

iii. Programs Director

iv. Training Managers (Academic and Career Technical Training)

v. Career Success Manager (Social Development Manager)

e. Corporate Oversight: Explanation of corporate services and support (General and Administrative services) that will be provided to this contract. Describe the experience and specific areas of expertise of corporate staff that will provide oversight.

f. Staff Development & Incentives: A narrative detailing what efforts the contractor will make to develop retain, and reward staff. Include what specific incentives will be provided and how these may be earned. In addition, include what specific positions will be eligible for an incentive payment, timetable for such payment, and whether or not such payments will be charged to this contract.

g. Start-up: All offerors shall submit a start-up plan.

The Start-up plan shall include the period of time required for each action, staff requirements, and major steps to be accomplished during the start-up.

9. Section L.6.I.4, Business Management Proposal, is amended as follows:

4. Business Management Proposal (Cost Proposal & Small Business Subcontracting Plan)

Costs shall be mentioned only in the Cost Proposal, and in no other sections of the proposal. Offerors shall not propose costs for capital line items including: Construction, Rehabilitation and Acquisition (CRA), Equipment, and Career

Technical Skills Training (CTST). The Not to Exceed amount for these categories shall be determined post-award.

In addition to the written cost proposal, offerors shall provide the following on CD using EXCEL 2007 or earlier version:

Financial Display By Year, ETA 2110 Format (Attachment J-3)

Staffing Chart (Attachment J.4)

The Offeror’s Cost Proposal shall consist of the following and in the order stated: (Sample forms and attachments are shown in Section J)

a. Business Management Data

1) A completed Standard Form 33, Solicitation, Offer and Award

2) Statement of Financial Capability (ETA 8554)

3) Applicable Certifications and Cost Accounting Standards Notices and Certification as required in Section K of this RFP.

4) A copy of the Offeror’s Indirect Cost Negotiation Agreement from the Cognizant Federal agency. The Cost Proposal may propose a G&A ceiling rate higher or lower than the approved provisional rate. The proposed rate, if accepted, will become the ceiling for the entire contract period, including option years. Offerors must calculate G&A Expense at the proposed G&A ceiling rate. If the offeror does not have an approved rate, the submission shall include a proposed rate along with supporting justification.

5) A statement from an accounting firm that certifies that the contractor’s cost accounting system meets all of the items listed in Section II., Evaluation Checklist, on SF form 1408, Preaward Survey of Prospective Contractor Accounting System.

Please note that SF from 1408 or a statement that references all of the information contained in the form 1408 is sufficient.

b. Staff Salary Structure and Compensation Plan

1) Total Compensation Plan

This plan shall include a description of salaries and fringe benefits, and any bonuses, monetary awards, and other contingent payment plans for all staff charged directly to this contract. The narrative must explain the policy under which these payments will be dispersed.

Offerors shall justify proposed salary levels using prevailing wage rate data from the local labor market, the National Job

Corps Staff Compensation data as described below, or a combination of both.

Offerors may propose adjustments to staff compensation expense due to vacancy savings, overtime expense, night differentials, holiday differentials and other factors.

In developing staff compensation plans, offerors shall give consideration to the National Job Corps Staff Compensation

Report (Attachment J-13). This table reflects independent, expert advice that has been given to the U.S. Department of

Labor concerning the average salary levels that would be competitive within the local labor market. The data in the table that is attached to this RFP has been adjusted for inflation to reflect salary levels that will be appropriate at the beginning of the contract performance period, and to reflect labor cost conditions in the center’s locality. The amounts shown on the table reflect the average annual salary ranges for each category of position along with an allowance for employer paid fringe benefits equaling 24.8% of base salary costs.

2) Staff Salary Structure

This shall include a description of the offeror’s salary grade structure including positions in each grade, and annual salary ranges for each grade level.

The National Job Corps Staff Compensation Report (Attachment J-13) organizes data to reflect a model national salary structure for most of the job categories typically employed at Job Corps centers.

3) Staffing Chart

The offeror shall include a completed Staffing Chart that will indicate the number of staff for each center function.

(Attachment J-4), which shall also be included in the Staff Resources Proposal. Please submit a completed Attachment J.4 in hard copy as well as on CD using EXCEL 2007 or earlier version

c. Pricing Schedule and Cost Detail: Offeror shall include completed Attachments J-1 and J-3. Please note that the amounts in the

Not to Exceed Line Items (CLINS 5001 through 5004) will be provided by the Government and will not be considered as part of the offeror’s total evaluated cost. However, the total cost of the Not to Exceed Line Items will be included in the total estimated cost of the awardee’s contract. Please also note that offerors shall propose the maximum technical performance incentive fee

(2.4%) and the maximum cost incentive fee (3.6%) for the purpose of cost analysis and contract award amount.

d. Narrative Cost Detail – Center, OA and CTS

1) A narrative justification for each line item of the ETA 2110, Attachment J.3, for all contract years. Include all explanatory narratives and necessary calculations showing how costs are determined. Please note that for option years, the contractor only has to provide a narrative where the rational and justification for the option year costs differs from the full operations base period costs.

For the purposes of this RFP, the inflationary rate used in projecting costs shall be determined by the offeror. The

Government will then consider this proposed inflationary rate during its cost realism analysis and negotiated during discussions if necessary. The resulting inflationary rate will then become a part of the contract.

Cost justifications based solely on historical data may be considered insufficient to support cost proposals. Historical data may be used to the extent that it can be shown to be relevant to this specific procurement, reflective of any changed conditions and circumstances. Provide narrative justification for each line item showing how the labor, material, travel, subcontractors, facility maintenance, and other costs outlined on the ETA 2110 were determined. Include the backup data to support the type of labor and estimated numbers of staff within each labor category.

The facility shall be provided as Government-furnished property at no cost to the contractor.

Under those ETA 2110 line items relating to staff costs, show the following: (1) position title; (2) number of positions in terms of full-time equivalents (FTEs); (3) range of annual salaries/wages for the position title; (4) average direct annual salary/wages on a per FTE basis (5) average benefits and other indirect employee compensation costs on a per FTE basis;

(6) total employee compensation cost to the contract for each position title. Individual, separate staff position costs will be included in the narrative justification for each line item of the ETA 2110. Do not consolidate costs for similar positions.

Show each position cost separately.

Include a breakdown of the amount estimated for travel, including destination, duration, purpose and cost (per diem and transportation).

Include backup data to support the estimated amount of material and subcontracting (if applicable), including description of materials to be procured, basis for proposed subcontract, and amounts proposed.

Subcontract information shall contain the list of names and addresses of any proposed subcontractors or consultants the offeror intends to use in the performance of the contract. Include the following information about subcontractors in excess of $25,000:

i.Will the subcontractor be able to start performance at the beginning of the contract period?

ii.What is the total cost of each subcontract?

iii.What experience does the subcontractor have in this technical area?

iv.What services (skills) will the subcontractor provide?

v.What steps did the offeror take to ensure that this subcontract is the best value.

vi.Confirmation that there is no conflict of interest between the prime contractor and the subcontractor.

e. Transition Costs

Please note that the Government will analyze transition out costs for reasonableness. However, transition out costs will not be considered as part of the offeror’s evaluated cost nor will it be factored into the Government’s Best Value, Trade Off analysis. The transition out costs will be identified in the awardee’s pricing schedule at the time of award and will be considered as part of the total awarded estimated cost.

The Transition Costs section of the Business Management Proposal encompasses three things:

1) Offerors shall include in the Transition Costs subsection of their Business Management, a description of all costs that the offeror reasonably anticipates it will occur as part of transition-out activities at the end of the contract that will result from this solicitation. The Employment and Training Administration understands that this estimate is dependent upon some factors that are unknown at the time of the proposal preparation, such as the amount of unpaid leave. However, offerors are asked to use their best business judgment in preparing this estimate. These expenses will appear in CLIN

4001 on the pricing schedule.

It is the intent of the Government to have an orderly operation during the last 30 days of any incumbent's contract (see

FAR Clause 52.237-3, Continuity of Service). Therefore, the incumbent contractor will be allowed the normal costs of operating the center for the final month of the contract. The incumbent's administrative activities required to orient the incoming contractor will be an allowable direct cost.

It is the Government's expectation that the outgoing contractor will use persons already included in its organizational indirect cost package for such activities joint physical inventory counts and reconciliation, student pay reconciliation with the new contractor and final billings after contract expiration.

The allowable cost for Transition-Out will be limited to earned but unpaid leave, and any other costs determined to be reasonable, allowable and allocable by the Contracting Officer.

f. Small Business Subcontracting Plan (Does not apply to Small Businesses)

Offerors shall submit a subcontracting plan prepared in accordance with FAR Clause 52.219.9. The plan shall cover the base two

(2) year contract period, and each of the option years. The plan must separately address subcontracting with 1) small business, 2) small disadvantaged business (includes 8(a) businesses), 3) women-owned small business, 4) veteran owned small businesses

(includes service disabled veteran owned small businesses), 5) service disabled veteran owned small businesses, and 6) HUBZone concerns. The offeror shall complete and submit Attachment J-6, Subcontracting Plan Summary Sheet both in hard copy and on

CD using EXCEL 2003 or earlier version.

The contractor shall determine the dollar value of services to be subcontracted. Of that amount, the contractor must, at a minimum, award subcontracts so as to achieve the following goals:

Small Businesses 61%

Small Disadvantaged Businesses 11%

Women-owned Small Businesses 7%

HUBZone Small Businesses 3%

Veteran Owned Small Businesses 3%

Service Disabled Veteran Owned

Small Businesses 3%

The Department of Labor encourages subcontracting key program components to small business concerns. Key components include personnel to deliver social development, academic education, career technical training and administration. For proposed subcontracting of key components, the appropriate section of the technical proposal must describe in detail the organizational relationships and procedures established to ensure proper management, oversight, training, coordination, etc.