AF_Trademark_Services_RFI_-_Questions_and_Answers.pdf

AF Trademark Services

Request for Information

Questions and Answers

18 Aug 15

1. RFI Question #11: By “license management software program” are you referring to an online portal to manage assets and product approvals, and/or an online royalty administration program?

RESPONSE: The license management tool needs to be a comprehensive solution that manages assets and product approval, licensing fees, license agreement generation, licensee profiles, violations, audit notices, accounting and insurance, at a minimum. Clarification will be added to the Request for Proposal (RFP) Statement of Objective (SOO).

2. SOO Background Question: Can you please clarify whether the $2.2 million in “licensing fees” since 2012 refers to royalties plus low-fee licenses and is this cumulative from 2012 through 2014? Is $4 million in sales for only 4th quarter 2014 or through the full year 2014?

Are “sales” defined as wholesale or retail sales?

RESPONSE A: “$2.2 million in licensing fees since 2012” is the total amount of royalties, minimum royalties, late fees, advance fees, flat-rate fees, etc., that the Air Force collected from 1

Jan 2012 – 31 Dec 2014.

RESPONSE B: Licensees reported $4M in sales of licensed AF-branded merchandise for 4Q/14

(Oct-Dec).

RESPONSE C: Reported sales are net sales (gross invoice price invoiced to distributors or customers, less actual and customary returns and separately listed applicable taxes).

3. SOO 3.7 Question: Do all U.S. Air Force license products need to be “Made in the U.S.A.”

or is there a certain percentage that must comply?

RESPONSE: The Air Force is not currently requiring products to be made in the U.S.A., although we encourage these products. We do require licensees to adhere to our Standards of

Manufacturing Practices (http://www.trademark.af.mil/socialresponsibility.asp), which prohibits

AF-branded merchandise from including goods sourced from areas on the Labor Department’s list of child labor/forced labor.

4. SOO 4.3.2. Question: Please define “low-fee”

RESPONSE: Our current practice is to offer a flat-rate 3-5 year license to qualified companies that do not exceed a pre-identified company sales volume. The one-time fee is paid at the execution of the agreement. That flat-rate can range from $100 - $500, depending on various factors – size of company, uniqueness of product, etc.

5. SOO 4.8.1. Question: What is meant by “Air Force to access its accounts?” Does this section refer to an online portal to manage assets and product approvals, and/or an online royalty http://www.trademark.af.mil/socialresponsibility.asp administration program to access financials? Also, how are your financials (royalty collection and administration) handled currently?

RESPONSE A: The Licensing Team would need usernames/passwords to the comprehensive license management solution referenced above so we could have visibility on all AF applicants and licensees.

RESPONSE B: Royalty collections and administrations are handled in house. Licensees report their quarterly sales through our current license management tool – Trademarx Online – which generates an invoice that they submit with their payment. Licensees mail their payments to the

Trademark Licensing Office, where the payment is recorded in Trademarx Online in order to maintain accurate accounting records. After documenting receipt of payment, the checks are sent to the Defense Finance Accounting Service for deposit.

6. Will the vendor eventually selected need to become certified as a federal government contractor and what would be involved in that process?

RESPONSE: All vendors must be registered in System Award Management (SAM) to be considered for award. Vendors can begin the process by visiting:

https://www.sam.gov/portal/SAM/#1 https://www.sam.gov/portal/SAM/#1