Instructions_to_Offerors_Addendum.docx

ATTACHMENT 2

ADDENDUM TO FAR 52.212-1

INSTRUCTIONS TO OFFERORS

1.0. Program Structure and Objective

1.1.1. The Government plans to award a single contract for the High Frequency Global Communications (HFGCS) Antenna Program for thirteen (13) sites located worldwide. HFGCS is the Department of Defense (DoD) world-wide high power, high frequency global command, control, and communication (C3) and nuclear command, control, communications (NC3) network that provides beyond line of sight (BLOS) interoperable voice and data communications for strategic, tactical and air mobility forces. HFGCS is the primary high frequency (HF) platform directly supporting DoD air-ground-air heavy tanker, airlift, bomber, and C2 platforms, US Navy ship-to-shore HF, President of the United States (POTUS), US Navy (USN), US Coast Guard, and other Government agencies. The program supports MYSTIC STAR (MS), System of Cooperation among the American Air Forces (SICOFAA), and Defense Communications System (DCS) HF Entry missions and the North Atlantic Treaty Organization (NATO). HFGCS operates in the HF spectrum from 2-30 Megahertz (MHz) at a maximum output power of 4 kilowatts (kw).

The HFGCS antenna systems are Commercial-off-the-Shelf (COTS) equipment. The antenna subsystem extends from the respective Receive and Transmit Facility matrix input and includes; antenna, transmission media, cable pressurization systems, azimuth control systems, electrical power system, and above and below-grade grounding and lightning protection material. The antenna systems are Air Force and Navy assets at various stages of their lifecycles, some reaching obsolescence.

1.1.2. Award will be made on the basis of “best value” utilizing Tradeoff Source Selection Procedures. Award will be made to the contractor that provides the “best value” to the Government over the entire period of performance.

1.2. Budget/Funding Information

Initial funding will be obligated for the Firm-Fixed-Price (FFP) Contract Line Item Number (CLIN) for program support for the first year. This will satisfy the minimum contract guarantee.

2.0. General Instructions

2.1.1. This section of the Instructions to Offerors (ITO) provides general guidance for preparing proposals as well as specific instructions on the format and content of the proposal. The Offeror’s proposal must include all data and information requested by the ITO and must be submitted in accordance with these instructions. Any Offeror who submits an incomplete package may be considered ineligible for award. The offer shall be compliant with the requirements as stated in the Performance Work Statement (PWS) and appendices. Non-conformance with the instructions provided in the ITO may result in an unfavorable proposal evaluation.

2.1.2. The proposal shall be clear, concise, and shall include sufficient detail for effective evaluation and for substantiating the validity of stated claims. The proposal should not simply rephrase or restate the Government's requirements, but rather shall provide convincing rationale to address how the Offeror intends to meet these requirements. Offerors shall assume that the Government has no prior knowledge of their facilities and experience, and will base its evaluation on the information presented in the Offeror’s proposal.

2.1.3. Elaborate brochures, documentation, binding, detailed artwork, or other embellishments are unnecessary and are not desired.

2.1.4. The proposal acceptance period is specified in Block 9 of the SF 1449 of the model contract/solicitation. The Offeror shall make a clear statement in Block 24 of the SF 1449 of the proposal documentation volume that the proposal is valid until this date.

2.1.5. In accordance with FAR Subpart 4.8 (Government Contract Files), the Government will retain one copy of all unsuccessful proposals. Unless the Offeror requests otherwise, the Government will destroy extra copies of such unsuccessful proposals.

2.2. General Information

2.2.1. Point of Contact

The Contracting Officer (CO) is the sole point of contact for this acquisition. Address any questions or concerns you may have to the CO. Written requests for clarification may be sent to the CO at the address located in Block 9 of the SF 1449 of the model contract/solicitation.

2.2.2. Debriefings

The CO will promptly notify Offerors of any decision to exclude them from the competitive range, whereupon they may request and receive a debriefing in accordance with FAR 15.505. Offerors excluded from the competitive range may request a pre-award debriefing or they may choose to wait until after the source selection decision to request a post-award debriefing. However, Offerors excluded from the competitive range are entitled to no more than one debriefing for each proposal. The CO will notify unsuccessful Offerors in accordance with FAR 15.503. Upon such notification, unsuccessful Offerors may request and receive a debriefing. Offerors desiring a debriefing must make their request in accordance with the requirements of FAR 15.505 or 15.506, as applicable.

2.2.3. Discrepancies

If an Offeror believes that the requirements in these instructions contain an error, omission, or are otherwise unsound, the Offeror shall immediately notify the CO in writing with supporting rationale as well as the remedies the Offeror is asking the CO to consider as related to the omission or error. The Offeror is reminded that the Government reserves the right to award this effort based on the initial proposal, as received, without discussions. This reservation includes matters of additional or substitute pages of the initial proposal.

2.2.4. Electronic Reference Documents

All referenced documents for this solicitation are available on the Federal Business Opportunities (FedBizOpps) web site at http://www.fbo.gov. Potential Offerors are encouraged to subscribe for real-time e-mail notifications when information has been posted to the website for this solicitation. IAW Performance Work Statement (PWS—Attachment 1) vendors shall be required to submit an approved DD Form 2345 to the Government Contracting Officer in order to gain viewing access to the applicable documents posted in FedBizOpps for proposal purposes only.

2.2.5. Oral Presentation

Oral presentations will not be utilized.

2.2.6. Amendments to Solicitation

If this RFP is amended, all terms and conditions that are not amended remain unchanged and in full force and effect. Offerors shall acknowledge receipt of any amendment and provide confirmation upon submission of the Offeror’s proposal. Any unacknowledged amendments in the Offeror’s proposal are subject to solicitation provision FAR 52.212-1(f).

2.2.7. Submission, Modification, Revision, and Withdrawal of Proposals Proposals and modifications to proposals shall be submitted in sealed envelopes or packages in paper media and electronic media addressed to the CO at the address shown in Section A of the model contract/solicitation, and showing the time and date specified for receipt, the solicitation number, and the name and address of the Offeror.

2.3. Organization/Number of Copies/Page Limits

2.3.1. The Title Page of each volume must show solicitation number, name, address, and telephone and facsimile numbers of the Offeror and electronic e-mail address if available.

2.3.2. A Team List of the Offeror’s primary Point of Contacts shall be submitted in each volume using the format shown in Attachment 2 of the ITO.

2.3.3. The Offeror shall prepare the proposal as set forth in the Proposal Organization Table (Table 2.2 below). The titles and contents of the volumes shall be as defined in this table, all of which shall be within the required page limits and with the number of copies as specified in Table 2.2. The attachments identified in the table shall be separately bound in three-ring, loose-leaf binders, as necessary. The contents of each proposal volume are described in the ITO paragraph as noted in the table below.

Table 2.2. Proposal Organization

Volume

ITO

Paragraph Number

Volume Title Hard Copies/ Disk Copies

Page Limit

Unlimited

Unlimited

Unlimited

3.2.3 3.2.4 3.2.5 3.2.6 Subfactor 1 Management Subfactor 2 Logistics Subfactor 3 Installation/Repairs Subfactor 4 Installation Scenario

Unlimited

Unlimited

Tab Only

Max 5 pages per contract

Unlimited

Unlimited

Unlimited

Unlimited

Unlimited

Unlimited

N/A

N/A

Unlimited

Unlimited

2.3.4. Page Limitations

Page limitations shall be treated as maximums. If exceeded, the excess pages will not be considered in the evaluation of the proposal. Each page shall be counted except the following: blank pages, title pages, tables of contents, tabs, indexes, glossaries, and those noted in the Proposed Organization Chart as unlimited.

2.3.5. Pricing Information

All pricing information shall be addressed ONLY in the Price Proposal and Contract Documentation volumes. Cost tradeoff information, work hour estimates, and material kinds and quantities may be used in other volumes only as appropriate for presenting rationale for alternatives or design and tradeoff decisions.

2.3.6. Cross Referencing

Each volume shall be written on a stand-alone basis so that its contents may be evaluated without cross-referencing to other volumes of the proposal. Information required for proposal evaluation, which is not found in its designated volume, will be assumed to have been omitted from the proposal. Cross-referencing within a proposal volume is permitted when its use would conserve space without impairing clarity. The Offeror shall complete the cross-reference matrix provided in Table 2.3 that will indicate the corresponding proposal paragraph in that section which addresses the referenced item. The Offerors cross reference matrix shall include the proposal reference information as it relates to the instructions, PWS contents, RFP sections, CDRL references (if applicable), and the corresponding proposal paragraph in the section which addresses the reference item as part of Volume I –Technical; Volume II – Past Performance; Volume III –Price.

Table 2.3 Cross Reference Matrix

Cross Reference

PWS Para

Management

-2: 2.2.1

-1: 3.2.3

Logistics

-2: 2.2.2

Installation/Repair

-2: 2.2.3

Implement all maintenance actions

-1: 3.2.5

2.3.7. Indexing

Each volume shall contain a more detailed table of contents to delineate the subparagraphs within that volume. Tab indexing shall be used to identify sections.

2.3.8. Include an indexed list of Tables and Figures.

2.3.9. Glossary of Abbreviations and Acronyms

Each volume shall contain a glossary of all abbreviations and acronyms used, and with an explanation for each. Glossaries do not count against the page limitations for their respective volumes.

2.4. Page Size and Format

2.4.1. A page is defined as each face of a sheet of paper containing information. When both sides of a sheet display printed material, it shall be counted as two pages. Page size shall be 8.5 x 11 inches, not including foldouts. Page line spacing shall be 1.5 lines. Except for the reproduced sections of the solicitation document, the text size shall be no less than Arial 12 points. Tracking, kerning, and leading values shall not be changed from the default values of the word processing or page layout software. Use at least 1 inch margins on the top and bottom and 3/4 inch side margins. Pages shall be numbered sequentially by volume. These page format restrictions shall apply to responses to Evaluation Notice (ENs). These limitations shall apply to both electronic and hard copy proposals.

2.4.2. Legible tables, charts, graphs and figures shall be used wherever practical to depict organizations, systems and layout, implementation schedules, plans, etc. These displays shall be uncomplicated and shall not exceed 11 x 17 inches in size. Foldout pages shall fold entirely within the volume, and count as a single page. Foldout pages may only be used for large tables, charts, graphs, diagrams and schematics; not for pages of text. The following limitation only applies to the Technical Volume. Text intended for evaluation within all figures, charts, tables, and graphs, to include imbedded images, shall be no less than Arial 8-pt. These limitations shall apply to both electronic and hard copy proposals. Any text within figures, charts, tables, and graphs which do not meet this requirement will not be considered in the evaluation. These limitations shall apply to both electronic and hard copy proposals.

2.5. Binding and Labeling

Each volume of the proposal should be separately bound in a three-ring, loose-leaf binder permitting the volume to lie flat when open. Staples shall not be used. A cover sheet should be bound in each book, clearly marked as to volume number, title, copy number, solicitation identification and the Offeror’s name. The same identifying data should be placed on the spine of each binder. All unclassified document binders shall have a color other than red or other applicable security designation colors. Be sure to apply all appropriate markings including those prescribed in accordance with FAR 52.215-1(e), Restriction on Disclosure and Use of Data, and FAR 3.104-4, Disclosure, Protection, and Marking of Contractor Bid or Proposal Information and Source Selection Information.

2.6. Electronic Offers

The content and page size of electronic copies must be identical to the hard copies. When discrepancies exist between the written hard copies and those provided in electronic format, the written hard copies will take precedence in all cases. For electronic copies, indicate on each Compact Disc Read Only Memory (CD-ROM) the volume number and title. Use separate files to permit rapid location of all portions, including subfactors, required plans, exhibits, appendices, and attachments, if any. The Offeror shall submit volumes I through IV in electronic format. Each volume shall be submitted on a separate CD. If files are compressed, the necessary decompression program must be included. The electronic copies of the proposal shall be submitted in a format readable by Microsoft (MS) Word 2007 or 2010, MS Excel 2007 or 2010, MS-Project 2007 or 2010, and MS-Power Point 2007 or 2010.

2.7. Distribution

The "original" proposal shall be clearly identified. Proposals shall be addressed to the Contracting Officer and mailed to or arrangements can be made to hand deliver by contacting the POC:

DEPARTMENT OF THE AIR FORCE

AFLCMC/HBSK ATTN: KRISTEN A CARTER

3001 Staff Drive STE 2AJ85B Tinker AFB, OK 73145-3020 Telephone: 405-622-7267 or Rick Weber at 405-622-7272 E-mail: kristen.carter@us.af.mil

3.0. Factor 1 – Technical

3.1. General

The Technical Volume should be specific and complete. Legibility, clarity and coherence are very important. Your responses will be evaluated against the Technical subfactors defined in Addendum FAR 52.212-2, Evaluation Factors for Award. Using the instructions provided below, provide as specifically as possible the actual methodology you would use for accomplishing/satisfying these subfactors. All the requirements specified in the solicitation are mandatory. By your proposal submission, you are representing that your firm will perform all the requirements specified in the solicitation. It is neither necessary nor desirable for you to tell us so in your proposal. Do not merely reiterate the objectives or reformulate the requirements specified in the solicitation.

3.2. Format and Specific Content

3.2.1. Technical

In the Technical Volume, address your proposed approach to meeting the minimum performance or capability requirements of each technical subfactor.

3.2.2. Volume Organization

The Technical Volume shall be organized according to the following general outline:

(1) Team List Attach 2.0

(2) Table of Contents

(3) List of Table and Drawings

(4) Glossary

(5) Subfactor One – Management

(6) Subfactor Two – Logistics

(7) Subfactor Three – Installation/Repairs

(8) Subfactor Four – Installation Scenario

3.2.3. Subfactor One: Management

Offeror shall provide a Program Management Plan. The plan shall include the Offeror’s approach to managing all aspects of the HFGCS Antenna program. Identify any best practices/innovations proposed. At a minimum, the proposed plan shall provide all of the following essential elements:

· Provide an approach to perform continuous configuration management in conjunction with all maintenance activity IAW PWS paragraphs 1.1.1.2. The Government does not require Offerors to submit a formal configuration management plan (CMP) with the proposal. Instead the Offeror shall briefly describe the following configuration management elements.

· Planning (HFGCS CMP paragraph 3.1)

· Roles and responsibilities (HFGCS CMP paragraph 3.2)

· Identification (HFGCS CMP paragraph 3.3)

· Baselines (HFGCS CMP paragraph 3.4)

· Configuration change management (HFGCS CMP paragraph 3.5)

· Verification and audits (HFGCS CMP paragraph 3.7)

· Provide an approach for managing cost, schedule and performance for individual task orders for associated work done IAW PWS sections 1.1.2 (Installation), 1.1.3 (Depot Level Repair at HFGCS Sites), and 1.1.4 (Demolition and Disposal). The Government does not require the Offerors to address all PWS subparagraphs individually. As a minimum the proposal shall address an overall approach for the identified PWS sections.

· Provide an approach describing how current and future employees and subcontractors will be screened to assure favorable investigations through National Agency Check (NAC) IAW PWS paragraph 1.5.

3.2.4. Subfactor Two: Logistics

Offerors shall provide a logistics approach. At a minimum, the approach shall provide the following element:

· Describe an approach that demonstrates a capability to provide and transport antenna system and subsystem parts, material, equipment and personnel to and from all HFGCS sites worldwide. As a minimum Offerors shall address PWS requirements IAW section 1.15.2 and all subparagraphs.

3.2.5. Subfactor Three: Installation/Repair

Offeror shall provide an approach to accomplish installation and repairs. The approach shall include installing and repairing of HFGCS antenna systems and subsystems. At a minimum, the approach shall provide all of the following elements:

· Provide an approach to assess antenna and antenna subsystems structural, electrical and mechanical condition, IAW PWS paragraph 1.1.3.1 (Maintenance Assessments).

· Provide an approach to implement all depot-level actions on multiple antennas and subsystems IAW PWS paragraph 1.1.3.2 (Assessment Repairs) and 1.1.3.3 (Other Repairs).

· Provide an approach to install and demolish antennas and antenna subsystems IAW OEM specifications, military standards and PWS requirements, IAW PWS paragraphs 1.1.2.3 (Install), 1.1.2.4 (Grounding, bonding, shielding and lightning protection (GBSLP)), and 1.1.2.5 (Cabling/Transmission Lines).

3.2.6. Subfactor Four: Installation Scenario

Offeror shall provide an approach to accomplish the Installation Scenario provided in RFP Attachment 4. At a minimum, the approach shall provide all the following elements:

· Provide an installation plan for the sample scenario

· Approach shall provide types of labor, estimated hours, material, transportation (origin to site), equipment, and duration to include an integrated master schedule.

· Approach shall address technical subfactors 1 through 3. Offeror’s scenario proposal shall be consistent with the overall proposal.

4.0. Factor 2 – Past Performance

4.1. General

4.1.1. The Offeror shall address Past Performance associated with those aspects of the Offeror’s proposed technical approach for Factor 1 Technical; Subfactor 1—Management, Subfactor 2—Logistics and Subfactor 3-Installation/Repair. Technical Subfactor 4—Installation Scenario will not be evaluated for Past Performance. Each Offeror shall submit a past performance volume with its proposal, containing past performance information in accordance with the format contained in Attachment 1.1 of the ITO. The Past Performance volume shall include a team list, which includes the prime contractor, all significant subcontractors, teaming partners, and/or joint venture partners proposed to perform the work outlined in the solicitation. The Offeror shall describe the portion of effort each team member is proposed to perform in relation to the Factor 1 Technical subfactors, and Scope, Magnitude and Complexity. The Government Past Performance Evaluation Team (PPET) evaluates each member of the Offeror’s team for relevancy and performance, based on their proposed portion of effort. Therefore, it is important for the Offeror to provide a detailed portion of effort description, in order for the PPET to conduct an accurate assessment. For the Past Performance evaluation, the Government will use data provided by the Offeror in the Past Performance volume, as well as data obtained from other sources.

4.1.2. Along with the information required in this paragraph, the Offeror shall submit a consent letter (Attachment 1.4) executed by each subcontractor, teaming partner, and/or joint venture partner, authorizing release of adverse past performance information to the Offeror so the Offeror can respond to such information. For each identified effort for a commercial customer, the Offeror shall also submit a client authorization letter (Attachment 1.5) authorizing release to the Government of requested information on the Offeror’s performance.

4.2. Early Proposal Information

4.2.1. Each Offeror is requested to submit Volume III Past Performance for each relevant contract fifteen (15) calendar days prior to the solicitation closing date. Failure to submit early proposal information will not result in Offeror disqualification.

4.2.2. As soon as practicable, Offerors shall complete Section 1 of the attached Past Performance Questionnaire (Attachment 1.2) and e-mail it and the Performance Questionnaire Letter (Attachment 1.3) to all points of contacts (POCs) the Offeror has listed in the Past Performance Information Sheets (Attachment 1.1). The POCs will complete the questionnaires and forward them by email or mail to the following kristen.carter@us.af.mil. RESPONDENTS TO THE QUESTIONNAIRES SHALL NOT SEND THE COMPLETED INFORMATION SHEETS BACK TO THE OFFEROR. Offerors shall not follow-up with respondents to ensure they have completed the questionnaires. The PPET will conduct such follow-up with any POC as necessary.

4.3. Relevant Contracts

4.3.1. The Offeror shall provide Past Performance Information (PPI) on current or previous contracts. The PPI forms shall be completed in accordance with Addendum to FAR 52.212-1, Instruction to Offerors, and Past Performance Information Instructions (Attachment 1.1). The Offeror shall submit contracts which include all or some performance within the past three years, as defined in Addendum 52.212-2, Evaluation Criteria, para 2.3.2.1 Recency Assessment. Request each Offeror submit up to four (4) PPI forms for the prime contractor, and up to four (4) PPI forms for each significant subcontractor/teaming partner. Significant subcontractor is defined as a contractor who is proposed to perform over 10% of the total effort, or a contractor who is proposed to perform less than 10% of the total effort, but is determined to be performing a critical function. NOTE: The requested number of PPI forms for the prime and subcontractors are preferences, and not requirements. Offerors may submit more than the preferred number, if the Offeror believes the extra contracts are needed to fully describe their relevancy. Offerors who submit less than the preferred number of PPI forms are not automatically assigned an “Unknown Confidence” rating. Fewer numbers may be acceptable, if the Government determines there is sufficient information to determine a confidence rating. There is no limit on the number of PPI contracts allowed per team; however, Offerors are requested to limit responses to those efforts necessary for evaluation and relevant to the high frequency global communications antenna efforts.

NOTE: Printed hard copies of the pages generated from the PPI tool are subject to the limitations outlined in Addendum FAR 52.212-1, Instructions to Offerors.

4.3.2. PPI Relevant Contract Narrative

For each PPI form, the Offeror shall provide a narrative explaining what aspects of the contract is deemed relevant to the proposed effort, and to what aspects of the proposed effort they relate. Specifically, the narrative should focus on similarities to the Factor 1 Technical subfactors, Factor 3 Price, and Scope, Magnitude, and Complexity, as defined in Addendum FAR 52.212-2, Evaluation Criteria, paragraph 2.3.2.2, and should be tailored to the proposed portion of effort. Categorize the relevant information into the specific technical subfactors and price assessment used to evaluate the proposal. The narrative may include a discussion of efforts accomplished by the Offeror to resolve problems encountered on prior contracts as well as past efforts to identify and manage program risk. Merely having problems does not automatically equate to a Limited or No confidence rating, since the problems encountered may have been on a more complex program, or an Offeror may have subsequently demonstrated the ability to overcome the problems encountered. The Offeror shall clearly demonstrate management actions employed in overcoming problems and the effects of those actions, in terms of improvements achieved or problems rectified. This may allow the Offeror to be considered a higher confidence candidate. For example, submittal of quality performance indicators or other management indicators that clearly support that an Offeror has overcome past problems is required.

4.3.3. Organizational Structure Change History

Many companies have acquired, been acquired by, or otherwise merged with other companies and/or reorganized their divisions, business groups, subsidiary companies, etc. In many cases, these changes have taken place during the time of performance of relevant past efforts or between the conclusion of recent past efforts and this source selection. As a result, it is sometimes difficult to determine what past performance is relevant to this acquisition. To facilitate this relevancy determination, Offeror’s shall include a "roadmap" describing all such changes in the organization of the Offeror’s company. A pamphlet or other commercial document describing such reorganizations may suffice. As part of this explanation, show how these changes impact the relevance of any efforts you identify for past performance evaluation/performance confidence assessment. Since the Government intends to consider past performance information provided by other sources as well as that provided by the Offeror(s), the "roadmap" should be both specifically applicable to the efforts identified, yet general enough to apply to efforts on which the Government receives information from other sources.

5.0. Factor 3 – Price

5.1. General

5.1.1. In the price volume, the Offeror shall provide the following information in addition to the pricing in Supplies or Services and Prices/Cost Section of the solicitation and Price Matrix (ITO Attachment 3.0). These instructions are to assist you in submitting information required to evaluate the reasonableness of your proposed price. Compliance with these instructions is mandatory and failure to comply may result in rejection of your proposal.

Information beyond that required by this instruction shall not be submitted, unless you consider it essential to document or support your price position. All information relating to the proposed price including all required supporting documentation must be included in the section of the proposal designated as the Price Volume. Under no circumstances shall this information and documentation pertaining to pricing be included elsewhere in the proposal (except ITO Attachment 3.0, Price Matrix, which will be included in the Contract Volume). Pricing information in the Supplies or Services and Prices/Cost Section and the Price Matrix is the only Price information that shall be included in Contract Documentation (Volume IV).

The quantity data given in the Estimated Quantities Table (Addendum to FAR 52.212-2, paragraph 2.4.6) represent estimates to be completed during specific periods of performance. All such quantities will be used for evaluation purposes only and do not obligate the Government to exercise or guarantee such quantities or prices during the contract performance period.

5.1.2. Price Reasonableness, Balance, and Price Realism

Offeror’s proposal will be evaluated for reasonableness (including completeness), balance, and price realism. Unreasonable or unrealistic proposed prices, initially or subsequently, may be grounds for eliminating a proposal from competition on the basis that the Offeror does not understand the requirement. Additionally, unbalanced pricing may pose an unacceptable risk to the Government and may render an Offeror’s proposal ineligible for award. Offers should be sufficiently detailed to demonstrate their price reasonableness, balance, and price realism. The burden of proof for credibility of proposed prices rests with the Offeror.

5.1.2.1. Price Reasonableness

Reasonableness is based on an overall evaluated proposed price and must represent a price to the Government a prudent person would pay in the conduct of competitive business. Normally, price reasonableness is established through adequate price competition, but may also be determined through proposal analysis techniques. For completeness, Offerors must provide unit prices for all listed items. Incomplete proposals (without required unit prices) may render an Offeror’s proposal ineligible for award. To assist in the price reasonableness assessment Offerors are required to provide supporting explanation/rationale as outlined in this ITO.

5.1.2.2. Balanced Pricing

The Offeror is cautioned against submitting an offer that exhibits unbalanced pricing. Unbalanced pricing may increase performance risk and could result in payment of unreasonable prices. Unbalanced pricing exists when, despite an acceptable Total Evaluated Price (TEP), the price of one or more contract line items (CLINs) is significantly over or understated as indicated by application of price analysis techniques such that there is reasonable doubt the offer would result in the lowest overall price to the Government, even though it is the lowest TEP. Also, an offer could be so grossly unbalanced that acceptance of the offer would be tantamount to allowing an advanced payment. Balanced pricing is determined with respect to separately priced CLINs or SubCLINs, or quantity ranges within a CLIN, or significant unexplained variance in pricing from year to year.

To assist the determination of balanced pricing, Offerors shall complete the attached Price Matrix (ITO Attachment 3.0). Completion of the Pricing Matrix allows efficient comparison of proposed pricing with the PWS requirements. If what happens to be unbalanced pricing is due to sound rationale associated with, for example, the proposal’s technical approach, Offerors shall provide an explanation to account for any pricing that appears unbalanced.

5.1.2.3. Price Realism

Proposed pricing must demonstrate adequate understanding of the requirement and that the proposed pricing does not pose a risk to performance. Proposed pricing shall be realistic for the work required. Proposed pricing must be consistent with the proposed technical approach and show an understanding of the requirement, including program complexity.

5.2. Pricing Information Requirements

FAR part 12 applies overall to this acquisition. However, FAR Part 15 applies regarding price analysis as a basis for determining reasonable and balanced pricing. Additional information is not requested nor desired by the Government. However, if the Offeror believes additional data other than certified cost or pricing data is necessary to justify or clarify proposed pricing, it may be included in the Price Volume.

In accordance with FAR 15.403-3-1(b), prices based on adequate price competition do not require submission of certified cost or pricing data. In accordance with FAR 15.403-3(a), however, information other than cost or pricing data may be required to support price reasonableness. FAR 15.403-3(a)(1) provides for obtaining information other than cost or pricing data if needed to determine price reasonableness. Therefore, the FAR does not preclude the requirement for obtaining data other than certified cost or pricing data under certain circumstances and the Government reserves the right to obtain data as appropriate.

Should the CO determine proposed prices to appear unreasonable or unrealistic, the Offeror may be required to support price reasonableness or realism via other than certified cost or pricing data. If, after receipt of proposals, the CO determines that there is insufficient information available to determine price reasonableness or realism and none of the exceptions in FAR 15.403-1 apply, the Offeror shall be required to submit cost or pricing data.

Offerors shall complete the Price Matrix (ITO Attachment 3.0). Offerors must ensure all required proposed pricing is provided in the Price Matrix. All periods of performance must be priced. These includes one year Basic Period, six (6) one-year Option Periods, and a six (6) month Extension Period. Offerors shall propose pricing for the six (6) month Extension Period based on proposed pricing of the second Incentive Option Period. The spreadsheet automatically applies the second Incentive Option Year pricing as input in the spreadsheet for the six (6) month Extension Period.

Any omission of required pricing may result in an unfavorable proposal evaluation. An incomplete Price Matrix will be considered unreasonable since pricing completeness is part of the price reasonableness criteria.

Proposed unit prices will be evaluated using best estimated quantities consisting of estimates provided by the Government per year. These quantities utilized in the Estimated Quantities Table are based on historical “snapshot” of the number of estimated annual quantities projected per year of contract performance. These estimates are for evaluation purposes only and do not guarantee any level of effort or buy quantities after contract award.

5.3. Rounding

All proposed dollar amounts shall be rounded to the nearest dollar. However, hourly labor rates (fully loaded or burdened) shall be rounded to the nearest cent. If any pricing proposal deviates from this format, the Government will apply the specified format to determine the extended pricing and TEP.

5.4. Labor Requirements – Services Contract Labor Standards (SCLS) It is the responsibility of the Offeror and the subsequent contract awardee to comply with the SCLS. In this section of the Price Volume, a table shall be provided conforming (linking) the Offeror’s proposed job categories/skill levels considered subject to the SCLS with the job categories/skill levels of the Wage Determination (WD). This cross-reference provides a tie between the labor categories/skill levels proposed and the labor categories/skill levels listed in the WD.

5.5. Supporting Price Information

5.5.1. Estimating System

Provide a summary description of your standard estimating system or methods. Also, identify any deviations from your standard estimating procedures in preparing this proposal volume. Indicate whether you have Government approval of your system and if so, provide evidence of such approval.

5.5.2. Purchasing System

Provide a summary description of your purchasing system or methods (e.g., how material requirements are determined, how sources are selected, when firm quotes are obtained, what provision is made to ensure quantity and other discounts). Also, identify any deviations from your standard procedures in preparing this proposal. Indicate whether you have Government approval of your system and if so, provide evidence of such approval.

5.5.3. Accounting System

Provide a summary of your accounting system or methods. Indicate whether you have Government approval of your accounting system and if so, provide evidence of such approval. Also, identify any deviations from your standard procedures in preparing this proposal.

5.5.4. Explanation of Specific Estimating Techniques and Methods Explain the methodology used to estimate prices in the development of your proposed pricing. A variety of estimating techniques and methods are acceptable as a basis of estimate in proposed pricing. When responding to the Price volume requirements in the solicitation, the Offeror and associated subcontractors may use any generally accepted estimating techniques consistent with the Offeror’s Disclosure Statement as appropriate and if required based on current contracts per Defense Contract Audit Agency (DCAA) policy and guidance. Acceptable contemporary estimating methods can include Cost-to-cost and Cost-to-Non-Cost Estimating Relationships (CERs), commercially available parametric price models, in-house developed parametric price models, commercial catalogs, etc. The Government reserves the right to obtain information from the Contract Business Analysis Repository (CBAR) as considered necessary.

5.5.5. Past Experience Basis of Estimate

Where price estimates are based on past experience, identify the past experience, explain how the past experience relates to the current effort including similarities and differences and how price data available from the past experiences was adapted to the current effort pricing.

5.5.6. Price Assumptions Used in Development of Proposed Pricing Information to support reasonableness of proposed pricing is required including supporting data and estimating methodology to support price reasonableness. All significant assumptions (including indirect rates for the Offeror’s appropriate accounting period, volume or location discounts), scope limitations and/or qualifications of the pricing proposal shall be addressed and explained.

5.5.7. Proposed Price Reduction per Corporate/Management Decision If estimated prices to perform the proposed effort have been decreased due to a management decision, provide a summary of the reduction by major pricing element (e.g., material, labor, overhead, etc.). Also provide complete rationale for the reduction. Provide the estimated dollar and percentage of the reduction, explaining how such reductions are ensured not to increase performance risk to the Government.

5.5.8. Annual Price Changes

Proposed price increases greater than 5% per period shall be verified and addressed for reasonableness in this section.

5.5.9. Proposed Fixed Rates: Hourly Labor Rates for CLINs

The Price Matrix (ITO Attachment 3.0) includes CLINs (X002, X003, X004, X005, and X010) which contain rates. Proposed labor rates (e.g., fully burdened hourly labor rates for all types of labor) shall be in accordance with SCLSs, as applicable. It should be noted that proposed rates shall be provided for each year of the performance period.

All rates shall be proposed as Fixed-Priced (FFP) rates. Fixed-Priced rates are those rates proposed for all performance periods and are considered fixed at the proposed amount. These rates shall not be exceeded except for upward adjustments IAW updated SCLS wage determinations. Offerors are to indicate their understanding of proposed ceiling rates, acknowledging that such rates will apply to out-years (period of performance beyond year one of the basic period) in the future despite what current actuals are running at the time.

5.5.10. Probable Subcontractors and Subcontractor Pricing

Submit a list of the proposed probable subcontractors and inter-divisional transfers showing (a) the supplier, (b) description of effort, and (c) type of contract.

Include a detailed explanation of your determination of proposed subcontractor or vendor pricing considered fair and reasonable. As prime contractor, documentation is required to demonstrate subcontractor/vendor commercial quotes are considered fair and reasonable. Include a detailed description of your process for evaluating subcontractor/vendor pricing in your determination of fair and reasonable pricing.

Offerors are required to provide an explanation of how indirect costs (Including Material Handling costs), G&A and profit are applied to subcontractor proposal cost/pricing and whether all subcontractor costs, including indirect rates (particularly Material Handling rates), G&A, and profit are included as a total subcontract amount (i.e., prime treats all subcontractor/vendor costs as their direct cost to which the prime applies their own indirect costs, G&A, cost of money (COM) and profit). Also, include an explanation of your determination to utilize “make” or “buy” subcontractor or vendor parts.

5.6. Government Field Support Agencies

Identify the cognizant Defense Contract Audit Agency (DCAA) and Defense Contract Management Agency (DCMA) office responsible for administration of the Offeror’s Government contracts.

5.7. Contractor Furnished Property/Equipment/Tooling/Material (CFP/CFE/CFT/ CFM) If property, equipment and/or tooling is necessary to meet the requirement but is not provided in the PWS, it is the Contractor’s responsibility to obtain that property, equipment and/or tooling.

Verify your understanding and intention to provide property, material, equipment and tooling by distinguishing between those items provided by the contractor versus the Government. Also separately list your assumptions regarding facilities, equipment, parts and manpower provided by contractors (prime contractor, subcontractors and/or vendors).

5.8. Other Documentation

Other documentation considered by Offerors to be essential for support of proposed prices shall be presented in Section 2. As this effort is mostly a firm, fixed price contract, all risk associated with fluctuations in BEQs, subcontractor pricing at all tiers, market changes, etc… is to be considered and priced into the proposed prices now. Offerors shall be held to their proposed pricing. Pursuant to paragraph 5.5.7 above, Offeror is requested to address any proposed prices which reflect a business decision to offer prices at or below cost. It is Offerors’ responsibility to support proposed pricing to ensure demonstration of adequate understanding of the requirement as well as appreciation of program complexity and associated performance risk.

5.9. Submission of Price Models

Submit an electronically encoded price/cost model in support of the proposed Total Evaluated Price (TEP). Any price model submitted must be consistent with your approved estimating system and must duplicate the logic and mathematical formulae reflected in the paper copy of your proposal in the Price proposal volume. Any deviation must be fully explained. All unit prices for each CLIN or SubCLIN which requires proposed pricing must be provided. Price models submitted must comply with the following format requirements:

Data Files Should:

(a) Be submitted on a CD/DVD.

(b) Be in .XLS file format (MS-Excel 2007 or earlier) compatible format

5.10. Volume Organization

The Price volume shall consist of the following sections:

SECTION 1 – Table of Contents; include your rationale in response to the following paragraphs in Section1:

5.1.2 – Price Reasonableness, Balance, and Realism

5.2 – Pricing Information Requirements

SECTION 2 – Include your response to the following paragraphs in Section 2:

5.5 – Supporting Price Information

5.7 – Contractor Furnished Property/Equipment/Material/Facilities

5.8 – Other Documentation

SECTION 3 - Include your response to the following paragraphs in Section 3:

5.4 – Labor Requirements-Services Contract Labor Standards (SCLS) (Formerly Service Contract Act)

5.6 – Government Field Support Agencies

SECTION 4 – Include the following items in Section 4:

5.1.1 – Copy of Price Matrix (ITO Attachment 3.0) with Offeror’s proposed unit prices included.

5.9 – Submission of Price Models

6.0. Contract Documentation

6.1. Model Contract/Representations and Certifications

The purpose of this volume is to provide information to the Government for preparing the contract document and supporting file. The Offeror's proposal shall include a signed copy of the Model Contract.

6.1.1. Solicitation/Contract Form (Section A)

Completion of blocks 12, 17 and signature and date for blocks 30a, 30b and 30c of the SF1449. Signature by the Offeror on the SF1449 constitutes an offer, which the Government may accept. The "original" copy should be clearly marked under separate cover and should be provided without any punched holes.

6.1.2. Supplies or Services and Costs/Prices

Complete pricing information in the Price Matrix, ITO Attachment 3.

6.1.3. Contract Clauses (Section I)

The Offeror shall provide required information to complete clauses as required.

6.1.4. Representations, Certifications, and other Statements of Offerors (Section K) The Offeror has completed the annual representations and certification electronically via the System for Award Management (SAM) website at http://sam.gov. After reviewing the SAM database information, the Offeror verifies by submission of this offer that the representation and certifications currently posted electronically at FAR 52.212-3, Offeror Representations and Certifications—Commercial Items are correct.

6.2. Exceptions to Solicitation Requirements

Offerors are required to meet all solicitation requirements, such as terms and conditions, representations and certifications, and technical requirements, in addition to those identified as evaluation factors or subfactors. Failure to meet a requirement may result in an offer being ineligible for award. Offerors must clearly identify any exception to the solicitation terms and conditions and provide complete accompanying rationale. Each exception shall be specifically related to each paragraph and/or specific part of the solicitation to which the exception is taken. Provide rationale in support of the exception and fully explain its impact, if any, on the performance, schedule, cost, and specific requirements of the solicitation. This information shall be provided in the format and content of Table 6.2. Offerors are cautioned the Government could determine any identified exceptions to be unacceptable, which would make the proposal ineligible for award.

Table 6.2 - Solicitation Exceptions Solicitation Document Page/ Paragraph Requirement/ Portion Rationale

Page and Paragraph Numbers

why the requirement can/will not be met

6.3. Other Information Required

6.3.1. Ombudsman

An Ombudsman has been appointed to hear concerns from Offerors or potential Offerors during the proposal development phase of this acquisition. The Ombudsman for this acquisition is AFSC/PZC. This does not diminish the authority of the program director or CO, but communicates Offeror concerns, issues, disagreements and recommendations to the appropriate Government personnel. When requested, the Ombudsman shall maintain strict confidentiality as to the source of the concern. The Ombudsman does not participate in the evaluation of proposals or in the source selection process; interested parties are invited to call AFSC/PZC at 405-736-3273.

6.3.2. Authorized Offeror Personnel

Provide the name, title, and telephone number of the company/division point of contact regarding decisions made with respect to your proposal and who can obligate your company contractually. Also, identify those individuals authorized to negotiate with the Government.

6.3.3. Government Offices

Provide the mailing address, telephone and fax numbers and facility codes for the cognizant Contract Administration Office, DCAA, and Government Paying Office. Also, provide the name and telephone and fax number for the Administrative Contracting Officer (ACO).

6.3.4. Company/Division Address, Identifying Codes, and Applicable Designations Provide company/division's street address, county and facility code; CAGE code; DUNS code; TIN; size of business (large or small); and labor surplus area designation. This same information must be provided if the work for this contract will be performed at any other location(s). List all locations where work is to be performed and indicate whether such facility is a division, affiliate, or subcontractor, and the percentage of work to be performed at each location.

6.3.5. Attachments to the Model Contract

The Offeror shall provide the documents…