Response_to_Ktr_questions_REV_3.pdf

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Follow-up to Amendment FA8121-19-R-0003-0001 and Q&A Responses.

BOTTOM LINE UP FRONT - Contractor is confused by the secondary CLIN quantities that appear to indicate repair occurrence for material replacement. Request the USAF publish realistic repair occurrence factors for 4-9 and liner replacement for both USAF and FMS requirements. Can this be accomplished by the USAF?

Answer: These are considered realistic repairs occurrences as they are based on historical data from past contracts and are the Government’s Best Estimated Quantities (BEQs).

FA8121-19-R-0003-0001 CLIN Structure is as follows:

CLINs Base Y1 Y2 Y3 Y4 Total

0001AA Primary Remanufacture 60 60 60 60 60 300

0001AB 4-9 Replacement (louver) 45 45 45 45 45 225

0001AC Liner Replacement N/A N/A N/A N/A N/A N/A

0002AA Primary Remanufacture 15 15 15 15 15 75

0002AB 4-9 Replacement (louver) 15 15 15 15 15 75

0002AC Liner Replacement 15 15 15 15 15 75

Follow-up to Government responses 3,4, and 5, Secondary subCLINs.

Question: Per the Government Q&A responses posted 7/16/2019, Secondary subCLINs are to include labor and material. SubCLIN X001AC, USAF Inner Liner Replacement, has a N/A (Not Applicable). How is the contractor to address labor? See below for proposed response.

Answer: Primary repair (0001AA and 0002AA) will contain all labor. CLINs for secondary replacement (0001AB, 0001AC, 0002AB and 0002AC) will contain all material. See Pre Amble in Solicitation Amendment 0003.

CLIN STRUCTURE PROPOSED CHANGES: I propose the following CLIN structure revisions. See page 2 for expanded CLIN structure (base year example):

CLINs Base Y1 Y2 Y3 Y4 Total

0001AA Primary Remanufacture 60 60 60 60 60 300

0001AB

4-9 Replacement (louver)

MATERIAL ONLY $____ $____ $____ $____ $____ $____

0001AC

Liner Replacement

MATERIAL ONLY N/A N/A N/A N/A N/A N/A

0002AA Primary Remanufacture 15 15 15 15 15 75

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0002AB

4-9 Replacement

(louver)MATERIAL ONLY $____ $____ $____ $____ $____ $____

0002AC

Liner Replacement

MATERIAL ONLY $____ $____ $____ $____ $____ $____

Expanded CLIN structure example:

0001 (Informational USAF)

0001AA Primary Remanufacture – All labor and material excluding material price for (1) Secondary subCLIN 0001AB, Detail 4-9 replacement, and (2) Secondary subCLIN 0001AC, Inner Liner Replacement .

BEQ U/I Unit Price Amount

60 ea $_________ $_________

0001AB Secondary Detail 4-9 Replacement – Material Only The Government shall pay the contractor for newly furnished material (CFM) incorporated in the combustion chamber.

Unit Price (ea)

0001AC Secondary Inner Liner Replacement – Material Only

Unit Price (ea) per occurrence

NSP

0002 (Informational FMS)

0002AA Primary Remanufacture – All labor and material excluding material price for (1) Secondary subCLIN 0002AB, Detail 4-9 replacement, and (2) Secondary subCLIN 0002AC, Inner Liner Replacement .

BEQ U/I Unit Price Amount

15 ea $_________ $_________

0001AB Secondary Detail 4-9 Replacement – Material Only The Government shall pay the contractor for newly furnished material (CFM) incorporated in the combustion chamber.

Unit Price (ea) per occurrence

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0001AC Secondary Inner Liner Replacement – Material Only

Unit Price (ea) per occurrence

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SCRAP FOLLOW-UP

Contractor has analyzed the historical spares and repair projections from 2016 forward and calculate a historical condemnation rate between 26.1% and 51.7% year over year.

22 May 2019 Government Responses:

a. What condemnation rate should be utilized when developing unit prices for FA8 J 21-19-R-0003?

34%

d. How many parts, condemnations and repairs, will the repair contractor have to process in order to achieve the BEQ quantity? 30%

Clarification Requested Contractor is confused by response to question 6.a. and 6.d. and believe they contain conflicting information.

The stated condemnation rate for pricing (question 6.a.) is 34%. That would mean the contractor would have to clean and inspect 103 parts in order to repair the basic BEQ quantity of 75 as 28 of the parts would condemn.

We expected to see a quantity in the response to question 6.d that would confirm the condemnation rate for pricing, but the answer was 30%. By this response one would calculate the contractor would have to clean and inspect 98 parts in order to repair the BEQ quantity of 75 as 23 of the parts would condemn.

Question: What is the condemnation rate and how many parts would a contractor have to clean and inspect in order to make the basic and subsequent BEQs serviceable?

Answer: The assumption to meet the BEQ is correct. The contractor should be checking CEMS before any cleaning/inspecting and this rate also takes those into account.

CLIN REPAIR MIX AND REPAIR OCCURRENCE

BIDLINK.NET Public Search CLINs FA812110D0011 Orders dated 16 Jul 2019. Assumption is quarterly orders

BIDLINK DATA Contractor Estimate

Date Contract Order Number Line Qty

Per Qtr Qty Occurrence Workscope

1/13/16 FA812110D0011 14 4001AA 168 56 74% Primary?

1/13/16 FA812110D0011 14 4001AB 60 20 26% 4-9 replace?

12/14/15 FA812110D0011 13 4001AA 36 12 73% Primary?

12/14/15 FA812110D0011 13 4001AB 13 4 27% 4-9 replace?

9/4/15 FA812110D0011 12 4001AD 7 2 FMS?

9/4/15 FA812110D0011 12 4001AA 36 12 73% Primary?

9/4/15 FA812110D0011 12 4001AB 13 4 27% 4-9 replace?

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8/10/15 FA812110D0011 11 4001AD 7 2 FMS?

8/10/15 FA812110D0011 11 4001AB 13 4 27% 4-9 replace?

8/10/15 FA812110D0011 11 4001AA 36 12 73% Primary?

Questions regarding current contract repair mix:

Background Repair Occurrence

- The current price matrix of 60 primary, 45 4-9s, and 0 liners suggests a repair occurrence of 57%, 43%, and 0% respectively.

- Reference the BIZLINK data.

o Contractor estimates that CLINs AA, AB, AC, and AD are Primary, 4-9 replacement, liner replacement, and FMS CLINs, respectively. Is this correct?

No, contractor is correct concerning CLINs AA and AB, however, CLIN AC was the original liner replacement CLIN for USAF before the Government provided them as GFM while CLIN AD is the liner replacement CLIN for USAF after the Government provided the liners as GFM.

o If correct, that would suggest a repair occurrence for USAF of approximately 73% primary repairs, 27% 4-9 replacement, and 0% liner replacement. The FMS requirement is very low 2 or less each quarter for a primary repair and no 4-9 or liner replacements.

-The FMS CLINs for primary (15 each), 4-9 (15 each), and louver (15 each) repairs leads one to believe that repair occurrence is 100% louver and liner replacement coupled with the primary repair.

Answer: There is very little historical data on FMS occurrences, therefore FMS CLINs will remain the same.

Question: Available data indicates wildly varying occurrence factors for primary, 4-9, and liner repairs.

What is the occurrence factor based upon competed delivery orders for the past 3 years for primary, 4- 9, and liner repairs?

Answer: Please see below for USAF:

ACTUAL PROD % REPAIRED

AA AB AD AB/AA AD/AA

FY17 85 47 11 55% 13%

FY18 58 32 12 55% 21%

FY19 34 16 4 47% 12%

Total 177 95 27 54% 15%