Price_Model _Rates _and_evaluation_of_price.pdf

Price Model, Rate and Evaluation of Price

Q: In the “Directions” tab, instruction #2 within Directions for PRIME talks about modifying appropriate loaded rates in the “Loading Factors” tab. There are no rate tables, or rate buildup cells in the “Loading Factors” tab. Are we to simply enter our fully burdened rates into the “Base Yr” tab?

A: Enter fully burdened rates in base year tab and escalation rates in Loading Factors tab and the option years will calculate.

Q: You show 1880 hours in the Price Table, will this be the standard hour rate for bids?

A: The 1,880 hours were selected as the multiplier for the IDIQ pricing evaluation. Task Order pricing may be priced at different hours in response to specific task order requirements. 1,800 hours is not a mandatory FTE calculation.

Q: What information is required in the “Esc Rate calculation” tab? The instruction on line

2 states “PLACE YOUR ESC. SPREADSHEETS HERE and THEN LINK FULLY

BURDENED RATE TO “Client (Gov’t) Site” TAB. There is no tab entitled “Client (Gov’t)

Site.” There are “Client (Gov’t) Site” columns, as well as “Contractor Site” columns within the “Base Yr” through “PoP C” tabs, however all but the “Base Yr” tab are linked back to the “Base Yr” tab.

A: Esc Rate TAB was updated to reference columns vs. a TAB. If deviating from the escalation calculation found in the Loading Factors TAB that information shall be identified under the

Esc Rate TAB. At a minimum explanation for the escalation rates shall be provided.

Q: Price Table Spreadsheet: The “Directions” tab has this statement: “4. Price the rates for a period of performance start date of 15 October 2013.” However, the “Base Yr” tab shows initial PoP of 8 May 2014.

A: Price table has been updated to reflect 8 May 14.

Q: Price Table Spreadsheet: Total Overall Evaluated Price calculation implies that Client site and Contractor site labor rates are equally weighted (as are all labor categories). Are these plugged values for the draft, or the actual evaluation strategy?

A: Actual evaluation strategy.

Q: Price Table Spreadsheet: Since your acquisition strategy is for Small Businesses, how do you intend to handle the various responses you will receive from the questions on the

“Loading Factors” tab of the Price Table spreadsheet? Specifically:

Do you have a Forward Pricing Rate Agreement?

Does the Prime have a DCMA Approved Purchasing System

Provide the date DCMA approved your Purchasing System

If you have an Approved or Adequate Accting System provide Date of

Audit & Audit #

Note: Small Businesses do not generally have these approvals and operate within GAAP (best commercial practices, etc.).

A: The Government understands that most small businesses will not have these credentials, they will not be held against offerors. Offerors providing that information will not receive extra credit either. In the event a Cost Plus Fixed Fee task order is let the information listed above will be on file and will assist in performing cost analysis at the task order level.

Q: Price Table: Are pricing worksheets required from all teammates/subcontractors, or only major teammates/subcontractors performing 10% or more of the effort?

A: Only a single pricing worksheet will be submitted to the Government. The pricing provided will become the maximum rates for task orders as outlined in Section L. All teammates and subcontractors shall have to comply with the maximum rates.

Q: The directions provided in the Pricing Model indicates rates shall be priced for a period of performance start date of 15 October 2013 while the Base Year tab reflects a period of performance start date of 8 May 2014, and Section L.2.0 indicates the ordering period will start on 13 March 2014. Can the Government please clarify the start date for the ordering period?

A: Price table has been updated to reflect 8 May 14.

Q: DRFP Price Table:

Should the pricing period data start on the date indicated in the Price worksheet

Instructions Tab, 15 Oct 2015, or the date ranges indicated at the top of the first pricing period column, 8 May 2014 to 7 May 2015?

A: The base period will begin 8 May 2014 and the first option year will begin 8 May 2015.

Q: There is a concern that there won’t be rates high enough to support the gray beards.

A: Each company will have to determine which category the gray beards would fit and then price that category accordingly. Considering areas outside the Omaha area, those rates shall be competed at the task order level. Reference Section L 5.2.1.

Q: Rate question: Is it anticipated to have a single rate structure or rates available for different areas, etc.?

A. Considering areas outside the Omaha area, those rates shall be competed at the task order level. Reference Section L 5.2.1.

Q: Was it your intent that the prime submit one set of rates that the subs fall under?

A: Yes.

Q: Will USAMS III have Grey Beard Support and a High Labor Category Rate to match?

A: Each company will have to determine which category the gray beards would fit and then price that category accordingly. Considering areas outside the Omaha area, those rates shall be competed at the task order level. Reference Section L 5.2.1.

Q: Is it anticipated a single rate structure will be used for all geographical locations both

CONUS and OCONUS?

Q: While it is widely recognized that USAMS II task orders are being bid at significantly lower rates than USAMS I, how doesn't he government plan to weed-out unrealistically low bids & rate structures that cannot be sustained if the economy improves?

A: Section M3.3.3. Unrealistically low proposed prices, initially or subsequently, may be grounds for eliminating a proposal from competition. An example of an unrealistically low proposed price would be proposed labor rates that were so low that the Government could not make a reasonable determination that an offeror could successfully provide qualified personnel for the labor categories proposed.

This strategy will be used at the Prime IDIQ price evaluation level and at individual task order levels.

Q: Are the labor rates submitted with the proposal package considered to be maximum labor rates for the contractor? Is there any case/exception where the contract may be allowed to increase the rates over the life of the contract?

Rates would not be increased at anytime over the life of the contract

Q: Price Table: Should Prime Offeror Pricing worksheet provide maximum rates that apply to the entire team, or are Pricing worksheets required from individual teammates/subcontractors?

A. The Prime and all teammates and subcontractors shall have to comply with the maximum rates.

Q: Is there any case or exception where the contract may be allowed to increase the rates over the life of the contract?

Rates would not be increased at anytime over the life of the contract

Q: Cost of living in Omaha Nebraska to Washing DC is like day light and dark. If we have to stick to those max rates for the Omaha area, we are also stuck to those rates for the DC area.

Q: There is a single rate table for on-site and off-site. We’re not sure how that accommodates higher skill levels, such as those at DC. Retention will be really difficult unless you provide some sort of way to allow pricing flexibility for these areas. Should there be an Extra Load Factor or table to ensure competitive rates?

Q: Pricing: While it is widely recognized that USAMS II is bidding significantly lower than

USAMS I, how is the Gov’t going to weed out the extremely low rate if the economy corrects?

A: Section M3.3.3. Unrealistically low proposed prices, initially or subsequently, may be grounds for eliminating a proposal from competition. An example of an unrealistically low proposed price would be proposed labor rates that were so low that the Government could not make a reasonable determination that an offeror could successfully provide qualified personnel for the labor categories proposed.

This strategy will be used at the Prime IDIQ price evaluation level and at individual task order levels.

Q: Now that CYBERCOM will become a significant user of this contract vehicle, will there be allowances/consideration at the contract or task order level for higher cost regions (e.g.

NCR)?

Q: Question leading in to the pricing section where it talks about being audited and forward pricing rate agreements. It looks like there is information that is not applicable to small business.

either. In the event a Cost Plus Fixed Fee task order is let the information listed above will be on file and will assist in performing cost analysis at the task order level.

Q: % of work that is going to be SCA. It is up to each individual company whether they want to bid SCA rates or not. If they are SCA, we would like to know that in advance on the task orders, so that we may price accordingly.

A: Services under USAMS are almost exclusively exempt from SCA through the professional services exemption. SCA wage determinations will be includes as attachments to the IDIQ. At the task order level the contractors have the ability to choose labor categories when responding to a solicitation.

Q: Price Realism: As a sub on USAMS II we have submitted candidates and won some.

What we’ve seen is from a pricing stand point, you start off with a rate deck by labor category, and that is something to discount from. Will the pricing realism be based on the

USAMS II level or something else?

A: The pricing table submitted in response to the USAMS III RFP will become the maximum rates allowed on task orders. Task order labor categories may be discounted.

Q: When you say price analysis, are you going to have a base line?

A: Review FAR 15.404-1 and reference Section M 3.3 for price analysis evaluation guidance.

Q: Will contracting consider adding the requirement to require the company to submit their compensation plans to ensure the quality/retainment of the contract? There are some efforts where a lot of that is being eliminated in straight of submitting a 10-99.

A: The pricing table includes a TAB titled Benefit Summary; companies will explain professional employee compensation plans here. Sections M 3.1.3.1.2 and M 3.2.2.2.1.1.2 are evaluation areas where companies shall address ability to attract, recruit, hire, train, and retain qualified personnel.

Q: Where the issue comes in is that if they have a different price structure that allows them not to pay all of those benefits, there rates will come in so low.

A: The ability to attract, recruit, hire, train, and retain qualified personnel are requirements in the technical volume and past performance volume.

Q: With regard to tradeoff between past performance and price, what will be the basis for that? We are concerned in a previous proposal at TRANSCOM, similar to this, when price was thrown in 6-7 awardees that had never been in that area and subsequent to that, they low balled the prices and no one was able to fill the positions with those prices.

A: Past Performance remains the most important factor as detailed in Section M 1.3. Section

M3.3.3. Unrealistically low proposed prices, initially or subsequently, may be grounds for eliminating a proposal from competition. An example of an unrealistically low proposed price would be proposed labor rates that were so low that the Government could not make a reasonable determination that an offeror could successfully provide qualified personnel for the labor categories proposed.

Q: Emphasis on price and the issue is that price really comes down to the task order level.

Is there a way to do pricing? The scenario is how much emphasis/weight you are putting on price at the IDIQ level because it really matters at the task order level.

A: Evaluating price is a mandatory evaluation criteria. Past Performance remains the most important factor as detailed in Section M 1.3.

Q: If they don’t know the mission sets, have past performance, is there price realism in there to see if their prices are realistic?

A: Technical evaluations and past performance evaluations will be conducted separately from price. Within the price evaluation unrealistically low proposed prices or an unbalanced offer will be evaluated in accordance with Sections M 3.3.3 and M 3.3.4.

Q: Will there be a cut line as there was on USAMS II. Will proposals be tiered and then ranked by price?

A: Every proposal will be evaluated. See Section M 1.0 for evaluation steps.

Q: Our concern on pricing is the LPTA model. Any pricing competition is always going to happen at the task order level. Recommend look at multipliers for a geographical market areas.

A: The USAMS III evaluation is a trade-off between past performance and price see Section M

1.3. Considering areas outside the Omaha area, those rates shall be competed at the task order

Q: There’s talent retention issue because of price which directly affects salary. We think the best way to address it is to address it in the rates.

A: The pricing table includes a TAB titled Benefit Summary; companies will explain

Q: Staffing stability is a concern for us. We don’t know economically what the state of the nation will be in 3-5 years. IDIQ rates are maximums. Give yourself some latitude to put some more expensive SME’s in there so that you do not limit yourself to being unable to fill these positions at the maximum level.

A: Each company will have to determine which category the expensive SME’s would fit and then price that category accordingly. Considering areas outside the Omaha area, those rates shall be competed at the task order level. Reference Section L 5.2.1.

Q: A financial responsibility task. That means that you need to have a DCAA approved system.

A: Small Business have an exemption to Cost Account Standards FAR Subpart 9903.2 –CAS

Program Requirements 9903.201-1(b)(3). Small Businesses generally operate within GAAP. If required the Government will work with the SBA to obtain certificates of competency and determinations of responsibility, FAR 19.6.

Q: In our corporation, we have very strict qualifications on what we pay people due to

DCAA approved numbers/systems. Small businesses a lot of times don’t do that. I expect that some of them will turn in bids and their low ball numbers will not be good for your business.

A: Within the price evaluation unrealistically low proposed prices or an unbalanced offer will be evaluated in accordance with Sections M 3.3.3 and M 3.3.4. The pricing table includes a TAB titled Benefit Summary; companies will explain professional employee compensation plans here.

Sections M 3.1.3.1.2 and M 3.2.2.2.1.1.2 are evaluation areas where companies shall address ability to attract, recruit, hire, train, and retain qualified personnel. If required the Government will work with the SBA to obtain certificates of competency and determinations of responsibility, FAR 19.6.

Q: Interesting to see Scientific SME, Homeland Security Specialist, etc. Is there going to be a job description that goes out with the name of the SME?

A: Reference pricing model TAB titled Labor Cat Description.

Q: You show 1880 hours in the price model. Is that sort of your standard bid model?

A: The 1,880 hours were selected as the multiplier for the IDIQ pricing evaluation. Task Order pricing may be priced at different hours in response to specific task order requirements. 1,800 hours is not a mandatory FTE calculation.

Q: Do you give an hour forecast for Task Orders?

A: In the solicitation letter it is common that the number of FTE’s the Government anticipates is included.

Q: The projection of Cost Plus Task order competition indicates a qualified small business will have to have a DCAA approved accounting system. This condition can possibly limit participation by otherwise qualified small businesses. Would the Gov’t consider a time and material best value approach to the acquisition?

either. In the event a Cost Plus Fixed Fee task order is let the information listed above will be on file and will assist in performing cost analysis at the task order level. Small Business has an exemption to Cost Account Standards FAR Subpart 9903.2 –CAS Program Requirements

9903.201-1(b)(3). Small Businesses generally operate within GAAP. If required the Government will work with the SBA to obtain certificates of competency and determinations of responsibility, FAR 19.6. We no longer have approval to issue labor hour type task orders under

USAMS II and that contract type will not be included under USAMS III.

Q: Can you provide further insight into what you’re looking for Rate and Descriptions for

Scientific SME, Home Land Security Specialist, and Threat Specialist, etc.?

A: Reference pricing model TAB titled Labor Cat Description. Descriptions are set by the

Government. The rates are up to the companies responding to the RFP.

Q: How will price realism be determined? Will it be based on the awarded value of USAMS

II Task Orders or some other means?

Q: Is there any situation where a contractor may be allowed to add labor categories to the contract that were not originally proposed/provided?

A: No

Q: Will contracting consider adding the requirement to provide the company’s standard employee benefit/compensation package to the bid submission (cost volume) in order to ensure all resources provided will have a reasonable quality of life?

A: The pricing table includes a TAB titled Benefit Summary, companies will explain

Q: One concern is the order of the source selection. Our concern relates to pricing.

Methodology of source selection lines every one up in order of price. We have no ability to show a higher quality or a lower risk in technical factors. In the award of the contract, price should not be the number one quality factor.

A: The USAMS III evaluation is a trade-off between past performance and price see Section M

1.3. Every proposal will be evaluated. See Section M 1.0 for evaluation steps.

Q: Can the Government provide more information on how the total evaluated price will be calculated? (ref M3.3.1.) Are you going to look at the bottom total column?

Q: How will the Government prevent possible price setting/collusion if a large team is bidding on multiple teams for the same task orders? You have the possibility that task order bidding teams can drive the task order award by offering preferred pricing to a particular small business - putting the award of the task order primarily in the hands of the incumbent contractor, rather than in the hands of the Government source selection team.

A: Prime contractors are responsible for managing proposal responses both at the IDIQ level and task order level. Prime contractors will have to consider the scenario presented and determine if a subcontract arrangement with a large business that operates that way is in the company’s best interest. Any company found guilty of improper business practices and personal conflicts of interest are subject to suspension and disbarment.