Industry Questionnaire 20110325.docx

Industry Questionnaire

1. The Government is considering utilizing Firm Fixed Price (FFP) CLINS with step-ladder (banding) pricing structure based on anticipated hours of flying (see the example below). Address any pros/cons/concerns you wish to identify with this type of pricing structure.

2. If presented with incentive options, what structure would be most beneficial for your firm:

a. 5 Year FFP (Basic plus 4 one-year options)

b. 5 Year FFP (Basic plus 4 one-year options) with two Incentive Options (Total 7 Years)

c. 5 Year FFP (Basic plus 4 one-year options) with Incentive Fee – Identify preferable incentives.

3. If the Government utilizes a 5 Year FFP with two Incentive options approach, where you could “earn” or “lose” an option based on performance, what are the perceived risks?

4. Have you had or do you currently have Government contracts that utilize Award Term or Incentive Options? If yes, tell us about your experience.

5. Provide information that demonstrates economies of scale relative to execution of a 5 Year FFP contract verses 7 Year FFP. For example, how does the Government benefit from a longer contract in terms of contractor operational efficiency, capital investment, cost control, etc…?

6. Provide feedback relative to the government’s approach to soliciting services, new ideas or on-going concerns relative to doing business with the Government.

Please email your response to Liz Preston at elizabeth.preston@us.af.mil not later than 8 April 2011.

000X The contractor will provide steady state aircraft MO manintenance services per total aircraft inventory and airframe (maintenance labor not directly associated with flying hours, management of aerospace ground equipment, survival shops operations, historical data reporting, maintenance info system support, CTK maintenance, FOD prevention, off station recovery, exclusive of travel costs etc...).

See PWS and appendix 3BA for projected total aircraft inventory and workload projections.

000X The HQ AETC flying hour program allocation provided by HQ AETC/A3 will fall into one of the flying hour bands (A-G), which will determine the median hour multiplier to be used. The price shall be in effect for the entire performance period. Movement from one price band to another during the performance period due to a change in the cumulative annual flying hour requirement that will breach upper or lower annual limits of the executed band will be executed via a unilateral contract modification.

For example: The government would establish a Firm Fixed Price for the Flying Hour Maintenance Services CLIN by multiplying the negotiated flying hour maintenance unit price for the flying hour band by the median hour multiplier for the band. Using the Most Likely Range in the table below, the fixed price would be established:

Maintenance Price Per Flying Hour

000X 35,049 $300 $10,514,700 $876,225

EXAMPLE: ADJUSTMENTS WHERE A CHANGE IN THE PAA FORECAST MOVES THE PAA INTO A DIFFERENT BAND:

The government may adjust the flying hour allocation during the course of the year. This may be done to factor in changes in student load or the course syllabus. When this occurs and the change results in the cumulative annual allocation moving from one price band into another price band, the contracting officer will issue a contract modification that employs the new maintenance unit price per flying hour. The change in price will become effective on the effective date the modification and will not impact the rates used earlier in the performance period. (The change will not be retro-active) This will allow the contractor to make necessary changes to staffing and skills mix required to meet the remainder of the flying training mission. Using the prices in the example above, the following is an example of a change that decreases the flying hours 6 months into a 12-month contract performance period.

For example - Due to a change in student loads, the government must adjust the annual program allocation as follows:

From 33,700 To: 31,700 Reduced by 2,000

This change in flying hours results in movement from flying hour band “D,” to Flying Hour band “C”

The price for CLIN/SLIN X004AA is changed to read as follows:

FROM:

X004 35,049 $300 $10,514,700 $876,225

To:

X004 32,595 $304 $9,908,880 $825,740

Total CLIN Price Changed