Responses - 9 July.pdf

FA4460-11-R-0005

COCESS

Little Rock AFB, AR

Responses to Questions

9 July 2011

RFI #2: The CLIN structure for this solicitation still only asks offerors to provide pricing for a monthly store charge. However, at the Addendum to 52.212-1(C)(1)(b) (page 53 of 58), offerors are instructed to provide all proposed unit and extended prices in the Pricing Schedule. Does this instruction apply to proposed prices for Appendices 2 and 3 to the solicitation? If so, will prices for individual items be fixed for the term of the contract? Will the basis of award be based on an offeror’s proposed price for individual items? We request that this be clarified. In addition, we request that fields for proposed unit and extended price be added to Appendices 2 and 3.

Answer #2: Pricing should only be entered in Section B of the Solicitation for CLINs 0001, 1001, 2001, 3001, and 4001. The item lists in attachments 2 and 3 are for reference only to aid in planning. See the

Revised Statement of Work attached with Amendment 0003 for clarification on the Fixed-Price items in the Bench Stock List and the Non Stocked Items List. Actual pricing for these items will be determined after award and will be based on actual cost of the items.

RFI #3: If prices will become fixed for the duration of the contract, then we must note that no provision seems to be in place for Economic Price Adjustments. Holding prices for five years represents what we submit is unreasonable risk to contractors, as many of the commodities found on Appendices 2 and 3 are extremely price volatile. If these prices are to become fixed, we request that provisions for an EPA be added to this contract.

Answer #3: See the Revised Statement of Work attached with Amendment 0003 for clarification on the

Fixed-Price items in the Bench Stock List and the Non Stocked Items List. The added language allows the Contractor to submit revised item pricing on the fixed-price items for each contract period.

RFI #4: The Solicitation remains unclear regarding the pricing for non-priced items. At paragraph

1.4 of the Statement of Work (page 6 of 19), this solicitation states that the price for non-priced items are to be negotiated at a “fair and reasonable” price. This term has been generally understood in COCESS contracts to allow the contractor to earn a reasonable and modest profit on the sale of all items sold through the COCESS. Please clarify if that is the case for this solicitation.

In addition, we request that the Statement of Work be amended to specifically address the allowance of profit for non-priced items.

Answer #4: See the Revised Statement of Work attached with Amendment 0003 for clarification on the non-priced items. All items will be provided to the Government at cost. There is no allowance for the addition of profit for any items delivered under the COCESS contract. Any profit and overhead must be accounted for under the fixed-price CLINs for COCESS Store Operation.

RFI #5: At paragraph 52.216-19 (page 28-29 of 58), this solicitation sets a minimum order limitation of $1 thousand. We submit that this figure is so high as to represent unreasonable risk to the contractor. As a quick inspection of Appendices 2 and 3 will easily verify, most of the individual items sold through the COCESS are significantly less than $1 thousand. A contractor has significant expenses that must be borne in the operation of the COCESS. The costs include the carrying cost of inventory (high use/consumable items must be stocked for immediate purchase), telecommunications, office equipment, material handling equipment, payroll, etc. Without the opportunity to capture the sales of items with and extended price less than $1 thousand, it would be virtually impossible for the sales generated by the COCESS generate sufficient revenue to recompense the contractor those operational costs. We request that the minimum order threshold for 52.216-19 be reduced to 1¢.

Answer #5: The order limitation referenced in this RFI does not relate to the value of individual items delivered under the COCESS contract. This solicitation is set up to award a “Requirements” type

Indefinite Delivery Indefinite Quantity contract for the operation of a COCESS store. The CLINs on the solicitation and in the resultant contract are in units of Month or Lump Sum. The intent is to only place orders that will cover the duration of an entire contract period (i.e. base year, option year). The minimum order you refer to is in relation to an order off the main contract for a specified period of COCESS store operation. For example, we may order 1 year of store operation, an estimated lump sum of $75,600.00 in bench stock items and an estimated lump sum of $1,147,500.00 in non-stocked items. An unlikely, but possible situation would be that we order 1 month of store operation, and some combination of estimated lump sums of bench stock items and non-stocked items. A request for a stocked, non-stocked, or non-priced item through a current COCESS delivery order is not considered an “order” in relation to 52.216-

19.

RFI #6: We remain extremely confused regarding use of NAICS code 335313 for this solicitation.

In order to address the recent non-manufacturer clause ruling by the SBA, most recent COCESS solicitations have been released under full and open (non-restricted) competition under NAICS code 332510 (see the solicitations in the past year at Ellsworth AFB, Barksdale AFB, Moody AFB.

National-General states that it is a qualified small, woman owned business under NAICS code

332510. We respectfully request that this solicitation be re-issued under NAICS 332510, under full and open competition.

Answer #6: This requirement has been amended (amendment 0003) to change the acquisition method from “100% Small Business Set-Aside” to unrestricted/full and open competition. This will allow any interested vendor to submit an offer. For our purposes only (obtaining small business credit, no factor in award decision), any small business that qualifies as a small business under NAICS 332510 would also qualify as a small business under NAICS 335313 based on the SBA’s table of size standards.

RFI #7: Request that this solicitation be indefinitely extended until these problems are resolved.

We submit that no responsible bidder can present a proposal for this solicitation at present. In our opinion, the amendments necessary in order to convert this solicitation from its original release as a service contract to its present structure as a commodities contract necessitate modified basic contract and material changes to the Statement of Work.

Answer #7: Amendment 0003 extends the solicitation due date by 30 calendar days.

RFI #8: The CLINs cited in paragraph 4.1.16 are for Bench Stock Items and not Non-Priced items.

Should the CLINs be changed?

Answer #8: The Statement of Work was revised to clarify this paragraph.