NOTICE_TO_ALL_OFFERORS.pdf

29 June 2015

NOTICE TO ALL OFFERORS

AFSC/PZIOC OPERATIONAL CONTRACTING

The Government team is posting the following information to ensure all offerors have the same information:

General

Q&A #1

As a multiple award contract, and individual Task Orders being competed amongst awardees, it does not seem to make sense for competitive bids to be solicited under coefficients or UPB scenarios. Please consider removing the coefficient and UPB requirements from this project.

Government Response: The Government appreciates the contractor feedback. However, it is the intention of the Tinker AFB to proceed with competitive bids utilizing coefficients and RS

Means UPB.

The utilization of RS Means (UPB) and Coefficients is integral to the delivery order process. This price summary back-up data will be utilized to ensure the contractor has an understanding of the requirement. The RS Means (UPB) data may be used to help determine technical acceptability. (NOTE: The Government will not negotiate quantities and line items. However, the Government may enter into discussions if (2, or more) technically acceptable offers are not received). Additionally, the data will be utilized in subsequent change requests due to unforeseen site conditions, user change request etc...

Q&A #2

Once a Task Order is competed, is the successful contractor's price subject to further review and or negotiation?

Government Response: Delivery Orders will be awarded on a Best Value or Lowest Price Technically Acceptable (LPTA) basis. In all competitive environments the price will not be negotiated.

However, in the event that the Government does not have enough technically acceptable offerors (2, or more) TAFB will open discussions and provide evaluation notices to each offeror not deemed technically acceptable. (NOTE: This should not be construed as negotiations)

Q&A #3

The means price book city modifier for Oklahoma City does not reflect the local pricing at Tinker AFB Area. Please consider eliminating the city modifier.

Government Response:

The City Cost Factor will be used. As stated in the SOW, the coefficient should account for the

Contractor’s perception of the accuracy of the UPB.

Q&A #4

Very rarely, if ever, are Geotechnical Engineers on staff of an A-E firm. The industry standard is that the A-E will team with a firm that solely specializes in Geotechnical Engineering. In its’ current state, the draft RFP section L paragraph 3.2.2 will severely limit the number of A-E firms that can clear the technical criteria.

Can the section L paragraph 3.2.2 wording be modified to say – “on the staff and /or team of the primary A-E Firm subcontractor.”?

Government Response: Please refer to Section L paragraph 3.1.

A “Staffing Letter of Intent is acceptable but, must be provided with applicable license/certification”.

Q&A #6

With the understanding all numbers are estimates and not guaranteed in terms of percentages, of the total work anticipated what is the approximate anticipated distribution of:

a. design-build delivery orders ? (20%, 40%, 60%, 80%, etc.)

b. designed/bid/build delivery orders? (20%, 40%, 60%, 80%, etc.)

It is anticipated that the majority of orders will be Design-Build (approximately 65-85%).

Q&A #7

With the understanding all numbers are estimates and not guaranteed:

Either from historical data over the past five years or from forecasts of anticipated work, what is the approximate number of total delivery orders which will be competed?

Based on historical data and projections, it is anticipated that 90-140 orders will be placed.

Q&A #8

The pre-solicitation indicates the scope of services will include design-build delivery orders which include design services. Construction General Liability Insurance does not provide any liability coverage for design work. In order to provide general liability insurance on design services (for any errors or omissions) a separate policy has to be purchased.

a. Does the FAR require liability insurance coverage for design services?

b. Will the prime contractor be required to provide professional liability insurance; and, if so with what minimum limits per occurrence and for the aggregate.

Government Response:

a. FAR requires liability insurance for any project over $150K performed on a

Government Installation. In regards to the A-E Design the Government does not require a specific insurance policy to cover the design unless it is over $1M.

However, in accordance with FAR 36.609-2 Redesign Responsibility for Design Errors or

Deficiencies and FAR 52.236-23 Responsibility of the Architect-Engineering Contractor, the A-E shall be responsible for the professional quality, technical accuracy, and the coordination of all designs, drawings, specifications, and other services furnished by the

Contractor under this contract. The Contractor shall, without additional compensation, correct or revise any errors or deficiencies in its designs, drawings, specifications, and other services.

For additional information please refer to FAR 52.236-23

b. Please refer to FAR Clause 52.228-5 Insurance---Work on Government Installation

Q&A #9

Will bid bonds be required with each delivery order proposal or is the bid bond only required for the

MACC master contract proposal?

Government Response: A bonding surety letter per Technical Subfactor #2 of Section L&M is required for the basic contract (source selection).

The Government intends to request only bid guarantee letters for each Fair Opportunity Notice

(FON), project competed. However, the Government reserves the right to require bid bonds for each Fair Opportunity Notice (FON) issued.

Q&A #10

With regard to the price proposal and calculation of the modifier or coefficient multiplier to be applied towards means pricing:

a. For trade contractor pricing there are different levels of trade professionals throughout the industry.

People who are able to pass more stringent requirements and background checks are often at a higher pay scale than personnel who may not be able to pass stringent requirements and be cleared. What is the minimum security clearance criteria for being allowed to work on base or what are the criteria’s that will prevent a worker from being cleared to work on base? This will help determine the modifier or coefficient level needed for successful performance utilizing personnel who can pass the required clearances.

b. For the MACC master contract proposal what is the amount of bid bond that will potentially be tied up for the 240 day acceptance period? Is it for the guaranteed minimum of $ 5,000 or for the maximum delivery order amount of $5,000,000 or for the $ 20,000,000 maximum award amount over 4 years or for some other amount?

a. Contractor personnel will need to pass a local background check run by 72 SFS Pass &

Identification. Some examples of items discovered in the background check that would deny access to the base are: unable to verify the individuals claimed identity; the individual has submitted fraudulent information concerning his identity; active arrest warrants; felony conviction within the past ten years; convicted of espionage, sabotage, treason, terrorism, murder, sexual assault, armed robbery, rape, child molestation, child pornography, trafficking in humans, or drug possession with intent to sell; individual’s name appears on any Federal or

State Sex Offender registry; conviction of a firearms or explosive violation in the last ten years;

four or more DUI convictions in the past two years; or more than two convictions involving a controlled substance within the past year. This list is not comprehensive. Individuals that are denied access have the right to appeal.

b. A Bid Bond will not be required for the basic contract. Instead refer to Technical Subfactor #2

Bonding. Each company will be required to submit a “bonding surety letter” from an A.M. Best

A- rated Surety. The Letter should state your company is capable of receiving bonding for a minimum $10M per project and $20M aggregate.

Q&A #11

Will ALL orders be competed among the successful MACC master contract awardees?

Government Response: It is the intention of the Government to compete each delivery order via a FON. However, the Government reserves the right to award a delivery order sole source in certain situations outlined in FAR 16.505(b)(2)

Exceptions to Fair Opportunity Notice (FON):

1. Unusual and Compelling Urgency

2. Only one source because of unique capability or highly specialized capability

3. Logical follow-on to a previous action that was awarded using a FON

4. Minimum order guarantee (completed upon basic contract awards)

5. Statute expressly authorizes the purchase be made from a specified source

6. Section 1331 of Public Law 111-240 (15 U.S.C. 644(r)), contracting officers may, at their discretion, set aside orders for any of the small business concerns

Q&A #12

Will ANY orders be negotiated with just one contractor?

Government Response: Competed delivery orders will not be negotiated with any contractor unless the following:

1. The Government has only one technically acceptable offeror after meaningful discussions.

2. An exception to Fair Opportunity Notice is exercised and the order is directly sourced to one company

NOTE: After a delivery order has been awarded the contract is considered sole source.

Subsequent change requests due to unforeseen site conditions will be negotiated.

Q&A #13

Will all orders be awarded based on total price regarding, based upon the successful MACC prime contractor proposal quantities or will the Air Force ever determine the quantities and base the order upon those quantities?

Government Response: All competitive orders will be awarded based either on best value, or

LPTA as described in Q&A #2. In a sole source environment the Government may negotiate quantities provided based on drawings, specifications etc.

Q&A #14

Will any orders be issued unilaterally based upon Air Force quantities and a MACC contractor’s guaranteed maximum modifier?

Government Response: No

Q&A #15

We understand each MACC awardee is required to submit a proposal on EVERY delivery order:

a. Generally speaking, what amount of notice will be provided prior to the pre-proposal conference on each delivery order?

b. Generally speaking, what amount of time will be provided to quantify and price each delivery order?

a. The Government makes every attempt to give at least a 4- 5 work days notice prior to pre- proposal site visit. Once a site visit is conducted the Government will allow a few days for a Q&A session

b. The amount of time given for each delivery order will vary depending on complexity, Q&A session etc…

Q&A #16

Delivery Order Quantity Adjustments or Firm Fixed Price Agreements:

a. We understand if scope is added or deducted after the award of a delivery order then the modification would reflect the corresponding increases and decreases in quantities. Does this apply to final quantities as well?

b. If applicable, an adjustable quantity provision (if any) would work in both directions, rendering both credits and adds on individual items and either weighing in to add money for contractors with deficient quantities or deducting money from contractors with surplus quantities. For delivery orders with no modifications once a delivery order is awarded and the delivery order work is completed, is a delivery order considered to be a firm fixed price agreement OR is the delivery order subject to Air Force audit of the actual quantities in place and a final quantity and cost adjustment, either higher or lower, based on the difference in the actual quantities and the delivery order contractor’s estimated quantities?

c. A Means book is good for a theoretical estimate that is external to the process. Performance of the actual work will be done by the available local trades under the current local market supply and demand resource conditions. The Means book does not perform. The Contractor has to find available trades to physically do the work and can’t just point and click on the computer or call 1-800 in the back of the Means book and then a bunch of workers plus a saw and a bulldozer show up and come do the work for you at the Means price. Point and Click construction by Mouse is a fantasy that has not yet happened.

Not enough robots. We call this theory vs. “can do” reality when it comes to estimating. Theory is on paper and the Reality is “can do” boots on the ground and actually going to get something built. For each delivery order contractors will be performing internal “can do” estimates of what the current conditions dictate is feasible. The contractors will then have to force fit the Means line items and coefficient to match the internal “can do” reality estimate they have already done.

From the conference description of each awardee competing with quantities and a possible voluntary reduction of the guaranteed maximum modifier or coefficient, a scenario can occur where a proposal is received with materially differing quantities as a method to adjust the total delivery order proposed price, in order to compensate for an inordinately high or inordinately low modifier or coefficient and meet the MACC awardees total internal estimate.

When the modifier applied to quantities results in a surplus beyond what is needed to achieve the minimum “can do” estimate with actual quantities, the awardee has two options for a downward adjustment 1. Voluntarily reduce the modifier or 2. Manipulate the Means estimate to understate the quantities. When the modifier applied to quantities results in a deficit or a shortage of fund to achieve the minimum “can do” estimate with actual quantities, the awardee’s only option is to inflate their quantities to achieve the minimum boots on the ground feasibility $ to do the project.

Another factor is quantities involve judgment taking into account waste and productivity for the particular type of work (trade) and the particular application (job specific unique project). Judgment is different from estimator to estimator and quantities will vary. Construction Professionals with hands on experience often disagree with theoretical estimates from Professors who have never built anything.

Converting “can do” reality delivery order estimates into itemized quantities that are force fit into the Means book takes extra time and man hours on every proposal escalates the modifier required to have a profitable contract.

Considering these variables and the inadequate time to develop the appropriate differential equation and algorithms for a thorough analysis of each scenario when the Contractor quantity is materially different than the government’s quantities here are the questions:

1. Will the government require the contractor to change the quantities?

2. How will change orders involving changes in quantities are handled?

3. Will the government evaluate the total price only and/or convert to FFP upon award?

4. If the quantities are not subject to audit is there any benefit to the Air Force of adding the overhead hours to preparing itemized means estimates on every delivery order?

1. During the FON proposal evaluation and initial delivery order award, the Government will not negotiate any quantities, line items etc… the RS Means back-up will be used as data to help determine the understanding of the work to be performed. The contractor is encouraged to provide a RS Means back-up that is as accurate as possible and a direct reflection of the work to be performed, because this will be associated with technical acceptability. The RS Means back-up will be referenced during technical evaluation of any sole source change request.

The delivery order awarded will be a Firm-Fixed Price award, this means the contractor cannot request an equitable adjustment to the line items, quantities, price after contract award for work to be performed under the original SOW.

2. Change Request will not be considered a change in quantity. Contractors will submit a separate proposal for the change request SOW requirements. This change request proposal will be evaluated and negotiated RS Means line items and quantities. The change request proposals will only be allowed to reference new work required in the Change Request SOW.(this means the Government will not allow the contractor an opportunity to become “well” on any missed work, additional costs accrued for work proposed on the original delivery order.

3. The basic award will be made via “Best Value Determination” as outlined in section L&M.

Each subsequent delivery order will be awarded Firm-Fixed Price based on the evaluation criteria established in the Fair Opportunity Notice (FON). This may be Lowest Price Technically

Acceptable, or Best Value Determination.

4. The utilization of RS Means back-up is considered value added to the Air Force. It will be utilized to help determine technical comprehension and technical acceptability of requirements, In addition, it will be utilized in the process of reviewing and negotiating change request due to unforeseen site conditions, user requested changes etc.

Q&A #17

MACC awardee office facility and infrastructure requirements:

a. Is each successful MACC awardee required to staff an office on or near Tinker AFB? If there is a requirement for an office on base can the Air Force furnish office space?

b. What special proprietary software’s will be required if any to be used by a successful MACC awardee under the master contract?

a. Per SOW paragraph 1.9.4., the contractor will not be allowed space on-base office space for administrative and management personnel. Paragraph 2.2.1 and 2.2.2 discuss Home Office and

On-Site Management. On-site should be interpreted as in the local area.

b. No special or proprietary software is required by the contract. Note: Drawings shall be supplied in both PDF and dwg formats. Other documents shall be PDF. DWG files shall be compatible with AutoCAD 2014.

NOTICE TO ALL OFFERORS

AFSC/PZIOC OPERATIONAL CONTRACTING

The Government team is posting the following information to ensure all offerors have the same information: