RFI_2_Risk _CPARS _SB.pdf

SOURCE SELECTION INFORMATION SEE FAR 2.101 AND 3.104

MARKET RESEARCH

SSPARS – SOLICITATION NO: FA2517-15-R-8001

RFI No. 2 – Risk, CPARS Matrix, Small Business

The following questions are for market research purposes only to assist the United States Air

Force (USAF) in development of the acquisition strategy for the new contract. This is not a request for proposal. Your responses will not be shared with anyone outside the USAF.

The Air Force is committed to continuous improvement and is working on new initiatives to achieve affordable programs, control costs and incentivize innovation. The goal of these initiatives is to successfully accomplish the mission within the constraints of a declining defense budget. To achieve these goals it will be essential to partner with industry and realize savings from contractor-controlled costs and innovations.

1. For the next SSPARS contract, the USAF is considering a Firm-Fixed-Price (FFP) contract.

What “unknowns” would drive risk that could affect your FFP amount? For example, would it reduce risk if the Air Force established a separate labor-hour CLIN (i.e. for depot “surge” support or unanticipated escorts), or cost-reimbursable CLIN (i.e. for repair items)? What are the benefits and drawbacks of this approach?

2. Please review the attached “CPARS Performance Incentive Matrix” (note: all values are notional for illustrative purposes only). The intent of this matrix is to establish, up-front, objective goals that translate to CPARS ratings. This matrix combines the CPARS definitions with the contract requirements to establish clear, objective performance standards. The

Government is contemplating incorporating this (or similar) matrix into the solicitation and subsequent contract. Please provide any and all feedback on this matrix you feel would be beneficial for the Government to know. For example, what are the benefits of this approach?

What are the drawbacks? Would inclusion of this matrix make the contract more or less desirable to bid on?

a. The Government is interested in knowing industry’s thoughts if this matrix were tied to an “Incentive Option.” The Government is tentatively contemplating an Incentive Option arrangement, using the CPARS matrix, where an Incentive Option would be tied to performance. The determination of whether or not an incentive option would be granted would be made at least two years prior to that available Incentive Option. For example, the contract could consist of a base year, 4 basic option years, and three “Incentive

Option” years. If the contractor, throughout the first three years, consistently performed to the standards of “Very Good” or “Exceptional” based on the CPARS matrix, the

Government would have the option to extend the contract for the sixth year (the first

Incentive Option year). Under an Incentive Option, the unilateral right to extend the term of the contract remains with the Government. With this approach, there is a very small risk that the Contractor would “earn” an Incentive Option, but the option would not be exercised due to changing Government requirements. If that were to happen, the

Contactor would not be entitled to the extra year of performance, despite “earning” the option (however would still be given the “Very Good” or “Exceptional” CPARS rating).

Conversely, if the Contractor did not perform to the standard of “Very Good” or

“Exceptional,” the Government would not exercise the Incentive Option.

b. Is this a feasible approach? What benefits and drawbacks do you see using this approach?

Would such an arrangement affect your bid/no bid decision? How do you view the risk of such an approach? Please be specific and include any and all information you would like the Government to know and/or consider. If you have any questions about how to read the matrix or about how the Incentive Option process would work, please call the

Contracting Officer, Austin Frindt, at (719) 554-2940 to discuss.

3. In the event this acquisition is solicited as unrestricted, there will be a requirement for Large

Business offerors to provide a small business subcontracting plan. The Government is interested in input from industry regarding possible small business subcontracting opportunities.

a. Based on review of the statement of work and other information released to date, what percentage of total annual contract dollars are available to be subcontracted to small businesses?

b. Please provide the information by a list of functional areas of work that may be performed by small businesses including a description of all respective small businesses sub-categories (i.e. SB, WOSB, VOSB, SDVOSB, HUBZone) the corresponding functional areas of work capable of being performed by each of these small business categories along with the North American Industrial Classification code that represents the work, the anticipated subcontract value, and your recommendations on the percentage of total annual contract dollars subcontracted to small business including a break out of each of the small business sub-categories (i.e. SB, SDB, WOSB, VOSB, SDVOSB, HUBZone, etc.).

Small

Business

Type (i.e.

SDVOSB,

8(a), WOSB, HUBZone)

Description of

Services/Functional Area

NAICS Subcontract

Value

% of total contract value

NOTE: You should assign the NAICS code to each potential subcontract based on the nature of work being subcontracted. Be advised, that the contracting officer established

NAICS 517919 (All Other Telecommunications - $32.5M) for the basic contract. You are not bound to use this NAICS when reporting your small business subcontracting possibilities if the work you are subcontracting is not similar in nature to this NAICS.

For example, if small business subcontracting opportunities exist for Environmental

Consulting Services (NAICS 541620), use this NAICS code to report the small business subcontracting opportunities, and not NAICS 517919. In all cases, to qualify as a small business, subcontractors must meet the size standard (see 13 CFR 121) for the NAICS code of the subcontract.

c. Please provide any additional information related to small business subcontracting opportunities. Information submitted by the respondents to this RFI is strictly voluntary.

The Government will use this information as part of our on-going market research.