Attachment 5 Questions Comments PreSol Transcript.docx

Questions/Comments taken from Verbatim Transcript of Pre-Solicitation Conference of May 23, 2011

1. Herb Baum, REDA International.

In the presentation, it was noted that ED reserves the right to make one or more awards per task order. In the answers to questions that was read later on -- I think it was question nine -- you had responded that ED would make one award per task order. So I'm asking -- in my mind I see this as being two different answers to the same question. We'd just like to know which is the right one.

Response: There will be one or more contractor(s) awarded tasks in each group—A and B. For each of the sixteen (16) individual Performance Work Statements (PWS) in this first round of competition there will be one award. In this first round of competition for the ESSIN, an eligible contractor may submit proposals for as few as one or as many as the total number of Performance Work Statements open to that contractor’s Group. It is possible for a contractor to win an award for each response submitted. A contractor could also not receive an award for any of the responses or bids submitted. If the contractor wins multiple awards, there will be a contract for each award. In order to be a part of the ESSI Network, a contractor must receive an award for at least one response or bid.

2. Tom Jesulaitis from AIR.

I think I have a couple of concerns about the current structure of the pre-solicitation RFP. 2A. Why I came up today in this conversation where I thought I heard you say that for the small business set-aside tasks that 51% of the total value of the task order had to be accomplished by the small business. I had been under the impression that 51% of the labor of the task had to be accomplished by the small business to avoid having a large business do all the work and the small business do the travel arrangements. So I think I would suggest some clarification that when a small business task is being issued as to what percentage of the work that is being done by the small.

Response: Helen Chang—you are correct, per the FAR clause 52219-4, Limitation on subcontracting, the requirement that the small business conducts more than 50 percent of the work to be considered as the prime contractor, applies to the cost of personnel.

The second concern has to do with the department having an emphasis now on the focus on these tasks being issued as expressed tasks; in some cases, expressed level-of-effort tasks. While I have a problem with that, what I do have a concern that is where within this pre-solicitation there is some inconsistency in the federal -- in the Department of Education's implementation of fixed-price tasks. So, for example, in the monthly report, I see where the department is requiring level-of-effort by person, is requiring costs by labor, costs by category, wants to know each individual's labor rates. These, to me, are issues that typically are not part of the fixed-price tasking. If the government is really looking to do these in a fixed-price mode, then the government is buying a product. It is buying a deliverable. It is expected to buy and accept a deliverable, and it's not buying people. So it is up to the contractor to ensure that the quality of the product is delivered such that it's acceptable. That I think it is beyond the scope for the government to require that kind of cost- reimbursable reporting. Same thing with key personnel; if the government is buying a fixed-price deliverable, and is what I'm hearing the government was going to do, then how the contractor delivers the work that the contractor needs in order to deliver that is the contractor's work. So I would -- you know, that's my concern, and I would hope you would take that into account as you go through again and look at the -- especially the reporting requirements as it would apply.

Response: ED must know the names of each person working on a task each month to ensure that each person with access to personally identifiable information has completed the required security clearance application. This is necessary to fulfill the requirements for information security and data access.

[Part of the answer by Helen Chang, part by Marilyn Seastrom] MS CHANG: Being as I was just doing research on subcontracting for Cain (ph). I have the clause: 52219-4 Limitation on Subcontracting. And he is correct. The 50% refers to the cost of personnel.

And with regard to the second question, the reason that we included the requirement for naming personnel has to do not with -- I think the concerns that you were thinking of -- but with the fact that in order to monitor the contractor's security and to ensure that all the staff working on projects have the necessary contractor security clearance, we -- need to have that information as to who is working on an individual task each month so we can make sure we're in compliance with the security clearance requirements government wide.

3. MS. HARDAWAY: My name is Bridgett Hardaway, and I'm with GEARS.

You mentioned 16 Performance Work Statements and 25 total for the year. How many of them will be Group B?

Response: Of the 16 Performance Work Statements in this first round of competition, 8 of the 16 Performance Work Statements, or 50 percent, are in Category B—small business. The count of 25 is an estimate, we do not know at this time the exact number of tasks that we will have, nor the final distribution of tasks between the two Categories.

4. A question received. If a successful offeror now a large business becomes a small business this fall, may the company bid on small business Group B task in the fall? And does that have to do with the NAICS code?

The Department’s preference is to follow SBA guidance, which is subject to change, and large businesses will be required to re-certify at the end of the Base period plus 4 option years. However, the Government reserves the right to request recertification at any point in the contract.

MR. TURNER: Mark Turner, Optimal Solutions Group.

5. So if a small business is awarded this contract in Category B and subsequently grows to a large business, is it still allowed to bid in Category B as a small business?

The Department’s preference is to follow SBA guidance, which is subject to change, and small businesses will be required to re-certify at the end of the Base period plus 4 option years. However, the Government reserves the right to request recertification at any point in the contract.

Recertification is required when a small business concern becomes other than small due to acquisition or merger, such as when the contractor is acquired and operated as a subsidiary of a large business or is merged with a large business.

MR. MCAFEE: Paul McAffe from Children's Institute.

6. First, an observation on that one. Winning one of these awards could push a small business in the large business classification so that would be an issue to address. My question is related to the 3% service disabled veteran-owned small business set-aside. Will you be requiring that those SDVOSBs be Center for Veterans Enterprise verified?

Yes. We will do all verifications with the help of our small business liaison in Small Business Office.

Alean Miller: Since Helen is here Helen, could you come to the mic and briefly talk about joint ventures? What that is in case there're companies here who don't understand or know what a joint ventures is.

MS. CHANG. …

A Joint Venture is a legal entity in the nature of a partnership engaged in the joint prosecution of a particular action for mutual profit. FAR 9.603 provides that the government will recognize the integrity and validity of joint venture if the arrangement is identified and fully disclosed to the government.

Joint Ventures must still follow guidance on SBA size standards and NAICS codes in Table of Small Business Size Standards Matched to North American Industry Classification System Codes (www.sba.gov) to determine large or small business designation.

UNIDENTIFIED SPEAKER: I though a joint venture could be a small and a large business.

MS. CHANG: A Joint Venture is a legal entity in the nature of a partnership engaged in the joint prosecution of a particular action for mutual profit. FAR 9.603 provides that the government will recognize the integrity and validity of joint venture if the arrangement is identified and fully disclosed to the government.

Joint Ventures must still follow guidance on SBA size standards and NAICS codes in Table of Small Business Size Standards Matched to North American Industry Classification System Codes (www.sba.gov) to determine large or small business designation.

MR. MARKER: That's not the way other government -- pardon me. Microphones. I'm David Marker from Weststat. I know that joint ventures can be two small, but they can also be a small and a large, and with the small as the management -- there's some term for that. So it is bid as the small, and there are certain restrictions that are different than on the 51-49. So if that's the kind of joint venture you're open to, that's very important for us to know that. In other words, on the Category B, if -- if joint ventures that are a mixture of a large and small can bid together, that -- that would be very helpful for you to clarify.

A Joint Venture is a legal entity in the nature of a partnership engaged in the joint prosecution of a particular action for mutual profit. FAR 9.603 provides that the government will recognize the integrity and validity of joint venture if the arrangement is identified and fully disclosed to the government.

Joint Ventures must still follow guidance on SBA size standards and NAICS codes in Table of Small Business Size Standards Matched to North American Industry Classification System Codes (www.sba.gov) to determine large or small business designation.

7. MR. MARKER:

While I'm up here, if I could just follow up on Tom Jesulaitis's very good question and Marilyn's very reasonable response though for security clearances you need to know who's working on it even if it's fixed-price. But if that's the case, if the reporting requirement could be that you have to report who worked every month on it and not all of the financials that go with that, that would seem to be more in keeping with the requirements of firm-fixed price work.

MS. JOHNSON: Any other questions, comments, concerns? If Helen could come back up and address or provide -- … -- or provide some clarification of our understanding of joint ventures is whenever you do join a partnership, all the members become primes. Is that our understanding of that? That all the members are primes cause -- because you all will be sharing equally in those.

MS. CHANG: No. No. A joint venture is a legal entity that has its own DUNS number. It's not --it's not two businesses joined -- I should say legal entity.

MS. CHANG: Either large or small, but it's a legal entity with its own DUNS number.

A Joint Venture is a legal entity in the nature of a partnership engaged in the joint prosecution of a particular action for mutual profit. FAR 9.603 provides that the government will recognize the integrity and validity of joint venture if the arrangement is identified and fully disclosed to the government.

Joint Ventures must still follow guidance on SBA size standards and NAICS codes in Table of Small Business Size Standards Matched to North American Industry Classification System Codes (www.sba.gov) to determine large or small business designation.