SECTION B.pdf

SECTION B - SUPPLIES OR SERVICES/PRICES

B.1 General

The Navigation Technical Assistance Contract (NAVTAC) II is a Single Award, Indefinite-Delivery, Indefinite-Quantity (IDIQ) contract to provide contractor support services through the performance of a wide range of services as broadly described in Section C, Statement of Work. The Contractor must provide, by issued Task Orders (TOs), all management, supervision, labor, facilities, and materials necessary to perform support services on an Indefinite-Delivery, Indefinite-Quantity (IDIQ) basis.

B.2 Indefinite-Delivery/Indefinite-Quantity (IDIQ)

(a) NAVTAC II is a single award Indefinite-Delivery, Indefinite-Quantity (IDIQ) contract to provide contractor support services to the Navigation Programs Group and Performance Based Navigation Office.

The NAVTAC II contract is structured and managed by the rules for TO contracts. In particular, 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 NAVTAC II contract may include Time and Materials (T&M), Labor-Hour (L-H), or Firm Fixed Price (FFP) TOs allowed by the FAA AMS Section T3.2.4 Types of Contracts, and as outlined 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 NAVTAC II contract.

B.3 Base and Optional Ordering Periods

The term of the NAVTAC II contract is a five (5) year base ordering period and two (2) one-year optional ordering period. TOs may be issued at any time during the base and/or option period. The performance periods will be specified in the TO and may include option periods.

This is not a multi-year contract as defined in AMS Section T3.2.4 Types of Contracts. For more details, see Section F.

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 $325,562,929.00 for all years.

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.

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“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.6 Contract Line Item Number (CLIN) Structure

The Contract Line Item Number (CLIN) structure for this contract is provided in Tables B-1 through B-3.

All efforts under this contract will be ordered and invoiced in accordance with this CLIN structure and performed in accordance with the Statement of Work and individual Task Orders. The CLIN structure for each Task Order issued under the contract will be set up at the time of issuance of the Task Order. Task Orders issued under this contract will be awarded using various contract types, depending upon the requirement(s).

Table B-1 – Contract Line Item Structure for Base Period (5 years)

CLIN

SUB

CLIN1 CLIN DESCRIPTION

BASE PERIOD

(Contract Years 1-5)

CEILING

AMOUNTS2

Professional and Technical Support Services – in accordance with the Contract Statement of Work

0001 Firm Fixed Price, inclusive of all costs and fee.

5% of the Contract

Ceiling3

X001A FFP for F&E Funded Requirements To be determined at task order level

X001B FFP for O&M Funded Requirements To be determined at task order level

0002 Time and Materials, fully burdened labor and fee only 95% of the of the Contract Ceiling4

X002A T&M, for F&E Funded Requirements To be determined at task order level

X002B T&M, for O&M Funded Requirements To be determined at task order level

Pre-approved Travel Expenses (does not include labor hours related to travel) To be determined at task order level

Other Direct Costs (Materials, and Equipment for the performance of Task Order Support) for CLIN 0002

To be determined at task order level

FFP Client–dedicated Facility Lease Total Costs as defined and per requirements in Section C.3.9.4 To be determined at task order level

FFP Contractor Program Management Total Costs per requirements in Section C.3.9.1-C.3.9.1.4 and C.9.1.4

To be determined at task order level

(The Remainder of the Page Left Intentionally Blank)

1 SUBCLINs are established for the purpose of separating funding type by Alpha notation. ‘A’ prescribes the use of F&E funding; ‘B’ prescribes the use of Operations (Ops) funding.

2 These are estimated costs that are not to be exceeded without the approval of the Contracting Officer.

3 The Government reserves the right to re-align funding and associated SOW between the FFP and T&M CLINs.

4 The Government reserves the right to re-align funding and associated SOW between the FFP and T&M CLINs.

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Table B-2 – Contract Line Item Structure for Option Period 1

CLIN5 CLIN DESCRIPTION

OPTION PERIOD 1

(Year 6)-CEILING

AMOUNTS6

1001 Firm Fixed Price, inclusive of all costs and fee.

5% of the of the

Contract Ceiling 7

1001A FFP for F&E Funded Requirements To be determined at task order level

1001B FFP for O&M Funded Requirements To be determined at task order level

1002 Time and Materials, fully burdened labor and fee only 95% of the of the Contract Ceiling8

1002A T&M, for F&E Funded Requirements To be determined at task order level

1002B T&M, for O&M Funded Requirements To be determined at task order level

Pre-approved Travel Expenses (does not include labor hours related to travel) To be determined at task order level

Other Direct Costs (Materials, and Equipment for the performance of Task Order Support) for CLIN 1002

To be determined at task order level

FFP Client–dedicated Facility Lease Total Costs as defined and per requirements in Section C.3.9.4 To be determined at task order level

FFP Contractor Program Management Total Costs per requirements in Section C.3.9.1-C.3.9.1. and C.9.1.4

To be determined at

5 SUBCLINs are established for the purpose of separating funding type by Alpha notation. ‘A’ prescribes the use of F&E funding; ‘B’ prescribes the use of Operations (Ops) funding.

6 These are estimated costs that are not to be exceeded without the approval of the Contracting Officer.

7 The Government reserves the right to re-align funding and associated SOW between the FFP and T&M CLINs.

8 The Government reserves the right to re-align funding and associated SOW between the FFP and T&M CLINs.

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Table B-3 – Contract Line Item Structure for Option Period 2

CLIN9 CLIN DESCRIPTION

OPTION PERIOD 2

(Contract Year 7)-

CEILING

AMOUNTS10

2001 Firm Fixed Price, inclusive of all costs and fee.

5% of the Contract

Ceiling11

2001A FFP for F&E Funded Requirements To be determined at task order level

2001B FFP for O&M Funded Requirements To be determined at task order level

2002 Time and Materials, fully burdened labor and fee only 95% of the IGCE

Ceiling 12

2002A T&M, for F&E Funded Requirements To be determined at task order level

2002B T&M, for O&M Funded Requirements To be determined at task order level

Pre-approved Travel Expenses (does not include labor hours related to travel) To be determined at task order level

Other Direct Costs (Materials, and Equipment for the performance of Task Order Support) for CLIN 2002

To be determined at task order level

FFP Client–dedicated Facility Lease Total Costs as defined and per requirements in Section C.3.9.4 To be determined at task order level

FFP Contractor Program Management Total Costs per requirements in Section C.3.9.1-C.3.9.1. and C.9.1.4 To be determined at

9 SUBCLINs are established for the purpose of separating funding type by Alpha notation. ‘A’ prescribes the use of F&E funding; ‘B’ prescribes the use of Operations (Ops) funding.

10 These are estimated costs that are not to be exceeded without the approval of the Contracting Officer.

11 The Government reserves the right to re-align funding and associated SOW between the FFP and T&M CLINs.

12 The Government reserves the right to re-align funding and associated SOW between the FFP and T&M CLINs.

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B.7 Contract Pricing

The following section describes pricing requirements for Time and Materials (T&M)/ Labor-Hour (L-H) TOs. Pricing requirements for any Firm Fixed Price and Fixed Price TOs will be included in the instructions requesting a TO proposals.

B.7.1 Time and Material Labor/Labor Hour Pricing

A. Ceiling Rates for T&M and L-H Task Orders

Attachment J-1, Labor Rate Tables, specifies the maximum fixed hourly rate that the contractor may charge under T&M and L-H TOs under this contract. All TOs issued on a T&M or L-H basis will be subject to the maximum labor rates set forth in Attachment J-1 Labor Rate Tables. The labor rates in Attachment J-1 reflect fully-burdened hourly rates for each labor category and will apply to all direct labor hours regardless of whether the labor hour is expended by the contractor or by one of its subcontractors. The labor rates in Attachment J-1 are fully-burdened and include direct labor and all indirect costs applicable, including fringe benefits, overhead, G&A, and profit. These fixed hourly rates are ceiling (maximum) rates the prime contractor may charge the FAA for each labor category in each given performance year. The contractor may elect to propose lower hourly rates on a TO-by-TO basis.

The rates in Attachment J-1 are based on the contractor’s established accounting practices for recording uncompensated overtime. These practices are reflected in the table. If in Attachment J-1, Labor Rate Tables, the rates were computed based on the recording of all hours, then the contractor will be permitted to bill at the hourly rate for all hours worked. If the rates were computed based on recording only 40 hours per week, then the contractor will be permitted to bill only on the basis of a 40 hour week.

Indirect costs allocated to any direct materials and other direct costs must be proposed consistent with the payment requirements in the clause at AMS Clause 3.3.1-5, Payments under Time and Materials and Labor-Hour Contracts (May 2001).

B. No Change To Rates if Subcontractors are Added or Deleted

The fixed hourly labor rates, in Attachment J001, Labor Rate Tables, represent the ceiling (maximum) hourly rates the Contractor may charge the FAA for each labor category in each given performance year. The fixed hourly labor rates in Attachment J-1 will not change after the contract award even if the Contractor removes a subcontractor or the Contractor adds a new subcontractor to its team.

C. Government vs. Contractor Sites

The following describes Government and Contractor Site Rates:

1) Government Site Rates: When performing at Government sites, the Contractor must furnish fully-burdened labor rates that take into account the Government will provide office space, furniture and office equipment and supplies necessary for the Contractor personnel to perform the work specified in the individual TOs , in accordance with the contractor’s established accounting practices.

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2) Contractor Site Rates: When performing at a Contractor site, the fully-burdened labor rates must 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, ordinary business software, such as word processing, spreadsheets, graphics, etc. unless provided as GFE, normal copying and reproduction costs in accordance with the contractor’s established accounting practices

D. T&M/L-H 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 Attachments J-1, Labor Rate Tables, or at lower rates, if proposed by the Contractor, 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. 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, without a formal modification. Reimbursement under the contract must be governed by the clause at AMS 3.3.1-5 Payments under Time-and-Materials and Labor-Hour Contracts (May 2001).

E. Materials

Materials are defined in the clause at AMS T3.2.4 Contract Types (Payments under Time and Materials and Labor Hour Contracts). 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.

F. Travel (all order types)

If authorized in the task order, travel will be reimbursed at actual direct cost in accordance with the limitations set forth in AMS T.3.3.2, Contract Cost Principles (Contracts with Commercial Organizations). Profit is not allowed for travel costs. Indirect costs may be applied to travel in accordance with the Contractor’s usual accounting practices consistent with AMS T.3.3.2, Contract Cost Principles (Contracts with Commercial Organizations). Travel will be a separate Not-To-Exceed CLIN on orders, unless travel has been specifically included as part of the final price in negotiated fully firm-fixed price TOs.

B.7.2 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 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, burdened with applicable indirect rates, in accordance with established accounting practices.

Any total rate 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. Profit will be negotiated against the total FFP for the TO.

Partial payment of FFP type TOs may be negotiated based on the completion of milestones. For FFP

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“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 type TOs, the TO proposal instructions will detail how the FFP prices will be established based upon the technical requirements, milestones (if applicable) and deliverables.

B.7.3 NAVTAC II Program Management Support and Facility Lease Pricing

Contract-level program management support costs must not be included as a percentage of each individual labor category rate and must be included and priced as a separate FFP cost in CLIN 0006, 1006, and 2006. These encompass support for contract-level management, reporting requirements (See Section F, Deliveries or Performance) and related travel and meeting attendance costs associated with the Contractor’s program management staff, as it relates to overall management of the NAVTAC II Program as well as overall program management of in/out transition efforts. These “program management” support costs are differentiated from individual task order “Task Order Lead” or “Project Manager” support costs, which are billed as hourly labor rates against individual task orders for direct support to the effort performed under those task orders. This will result in direct billings at the task order level for labor hours in the “Task Order Lead” or “Project Manager” categories, to specifically support project management for task orders, if required by the FAA for one or a group of task orders.

The following tables B-4 and B-5 shall list the annual Firm Fixed Prices for Facility Lease and Contractor Program Management Costs by contract year, respectively. The summed annual FFP for the base period and each option year from each table will be entered into Tables B-1 through B-3 as applicable.

Table B-4 – FFP Client–Dedicated Facility Lease Cost Break Out for Base Years and Option Years

CLIN Contract Period Performance Years Annual FFP Facility Lease

Costs

Base Period

(Years 1 – Year 5)

Year 1 $__________ Year 2 $__________ Year 3 $__________ Year 4 $__________ Year 5 $__________

1005 Option Period 1 (Year 6) Year 6 $__________ 2005 Option Period 2 (Year 7) Year 7 $__________

Table B-5 – FFP Contractor Program Management Cost Break Out for Base Years and Option Years

Contract Period Performance Years

Annual FFP Contractor Program Management

Costs

Base Period

(Year 1 – Year 5)

Year 1 $__________ Year 2 $__________ Year 3 $__________ Year 4 $__________ Year 5 $__________

1006 Option Period 1 (Year 6) Year 6 $__________ 2006 Option Period 2 (Year 7) Year 7 $__________

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B.8 Rate Refreshment

The labor rates in Attachment J-1, Labor Rate Tables, are fixed for all contract year periods; however, the Contractor may submit a proposal reducing the fixed hourly rates 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 interest of the Government. If the rates are accepted, the Government will modify the contract by incorporating the new rates into Attachment J-1, Labor Rate Tables.

B.9 Additional Labor Categories

Additional labor categories under Attachment J-1 Labor Categories are not anticipated. However, given the dynamic nature of the SOW, and the duration of this NAVTAC II Contract, emergency or unforeseen circumstances may necessitate the addition of labor categories throughout the ordering period of this IDIQ Contract. Additional labor categories may be proposed by the Contractor and must be determined to be reasonable and necessary to perform the work required and all associated labor rates will be determined to be fair and reasonable by the NAVTAC II Contracting Officer (CO) at the IDIQ contract level. The CO must also perform a scope determination to ensure that the additional labor categories are within the scope of this IDIQ contract before modifying the contract to include those additional labor categories. Additional labor categories may not be added at the Task Order level. Any labor rates invoiced or otherwise charged by the contractor that are not in accordance with the agreed upon labor rates of Section B of the IDIQ contract may be subject to rejection at the Task Order level CO’s discretion.

B.10 Work Outside the Continental United States (OCONUS)

It is anticipated that there may be TOs under this contract which may require work outside the United States. The Government reserves the right to make determinations of fair and reasonable pricing at the TO level for OCONUS TOs.

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