Q A_3.pdf

Question:

I hope you can help me to understand the new pricing sheet and formulas that have been updated in amendment 6. I followed your example and when I do the math for these items I am having to reduce the unit square footage pricing to less than a cent in areas where the square footage and frequency are high and then the annual pricing is still not coming out correctly. For example on the previous sheet for pricing the frequency was not a factor in the formula.

Please advise some assistance to help me to understand because the unit price increases for additional frequency and taking the unit pricing down to the 4th and 5th decimal point when the total square footage when entering the frequency is over a million is bring the unit pricing down to an extremely low rate.

Answer:

Offerors shall consider the frequency for each task from the provided workload estimate (i.e 95,195 sq ft x 52 times per year = 4,950,140 sq ft annually, ref. Att 4 Workload Estimate, Level 1 PAFB01) when determining their unit price per task on the price list. The Government provided an example in Addendum to 52.212-2 para 2.3.2 as part of Amendment 6. It is possible that the unit pricing for each task could be carried out multiple decimal points (i.e.

.000025). The annual frequency is necessary for offerors to understand that they are not cleaning 95,195 sq ft annually, rather 4,950,140 sq ft annually for Level 1 PAFB01, as provided in the example above. The Government added the workload estimate data from attachment 4 to the price list (attachment 2) for ease of referencing when pricing tasks.

For Offerors’ reference, see addendum to FAR 52.212-2, Para 2.3.2:

2.3.2 Price Evaluation. The Government will complete evaluations by multiplying the estimated amount issued each frequency by the estimated annual frequency by the Offeror’s proposed unit price, as displayed on the Price List dated 24 July 2015 (issued with Amendment 6). The total of multiplying the estimated amount issued each frequency by the estimated annual frequency by the Offeror’s proposed unit price as displayed on the Price List will be considered the offeror’s total annual proposed price for each task. Below is an example of how an Offeror’s proposed unit pricing can affect total annual price calculations for the same task:

A B C D E F G Item Task Unit Issued Estimated

Amount Issued Each Frequency

Estimated Annual Frequency

Offeror’s Proposed Unit Price

Total Annual Price = (Column D multiplied by Column E multiplied by Column F)

PAFB01 PAFB-

SWEEP/MOP

PWS Para 1.1.1

SF 95,195 52 0.25 $1,237.535.00

PAFB01 PAFB-

SWEEP/MOP

PWS Para 1.1.1

SF 95,195 52 0.0025 $12,375.35

Total Annual Price

$1,249,910.35

Total 5-Year Price

$6,249,551.75

A Total Evaluated Price will be calculated by adding the total annual price proposed for each task and then multiplying the total price by five (5). The Price List is for the five-year ordering period (there are no option periods). Supply costs and associated General and Administrative (G&A) cost plus profit or fee, must be included in the unit price for each task listed in the Price List and shall be effective for the entire five-year ordering period.

Price will be evaluated for reasonableness and affordability.