Responses - 22 June.pdf

FA4460-11-R-0005

COCESS

Little Rock AFB, AR

Responses to Questions

22 June 2011

RFI #1: Several interested parties submitted questions similar in nature to the following questions.

Supplemented with information from a United States Air Force Congressional Report from Feb

2011, it was brought to the attention of the Contracting Officer that it had been directed that Civil

Engineering Supply Function contracts should be handled as commodity contracts. It was reiterated that an Air Force Labor Advisor stated “The Service Contract Act applies to contracts whose PRINCIPLE purpose is the furnishing of services. Typically, this is determined by considering whether the majority of the value of the contract is for the purchase of commodities or service work.” Requests were received to delete clauses FAR 52.222-41, FAR 52.222-42 and FAR

52.222-43 from the Contract, and to remove Attachment 4, Wage Determination Rev-10 No. 2055-

2033. Requests were also received to change the NAICS code from 561110 to one of these options:

444130 or 423840.

Answer: The Government has reviewed regulations, Congressional Reports, and comments from interested parties, has consulted with local and Air Mobility Command small business advisors, and has consulted with the Small Business Administration while considering these issues. The following discoveries were made.

1) It is agreed that the Service Contract Act does not apply to this contract and should not have been incorporated in the solicitation. Amendment 001 posted with this document corrects this mistake. All

SCA clauses and the Wage Determination have been removed from the solicitation.

2) While several other bases, including Little Rock Air Force Base in prior years, have used NAICS

444130 to acquire COCESS-type contracts, it was determined that this is not the correct course of action.

The reason is found in 13 CFR 121.402(b):

(b) The procuring agency contracting officer, or authorized representative, designates the proper

NAICS code and size standard in a solicitation, selecting the NAICS code which best describes the principal purpose of the product or service being acquired. Primary consideration is given to the industry descriptions in the NAICS United States Manual, the product or service description in the solicitation and any attachments to it, the relative value and importance of the components of the procurement making up the end item being procured, and the function of the goods or services being purchased. Other factors considered include previous Government procurement classifications of the same or similar products or services, and the classification which would best serve the purposes of the Small Business Act. A procurement is usually classified according to the component which accounts for the greatest percentage of contract value. Procurements for supplies must be classified under the appropriate manufacturing NAICS code, not under the wholesale trade NAICS code.

Interested parties should be aware that all 40-series NAICS codes (including 444130 and 423840) would not meet the requirement to be a “manufacturing” NAICS code.

3) As stated in paragraph 1, the Government agrees that this is not a service contract and that it should be classified as a supply purchase. Based on the restriction in 13 CFR 121.402(b), a manufacturing NAICS classification that fit this acquisition best was chosen. The Government selected NAICS classification

335313 “Switchgear and Switchboard Apparatus Manufacturing”, because a large amount of the requirements under this contract are included in that NAICS classification. Offerors are reminded of the requirements relating to the Nonmanufacturer Rule. See http://www.sba.gov/content/non-manufacturer-waivers for a description of the rule and what is required. Amendment 001 posted with this document changes the NAICS code to 335313 and the size standard to 750 employees.

http://www.sba.gov/content/non-manufacturer-waivers http://www.sba.gov/content/non-manufacturer-waivers