Attachment 14 - MJU-76 Ordering Procedures.pdf

MJU-76 ORDERING PROCEDURES UNDER MULTIPLE AWARD CONTRACT

1) One or more delivery orders (DOs) may be issued during the life of this contract. In accordance with RFO 16.507-2, Fair Opportunity Procedures, the CO will provide all awardees a "fair opportunity" to be considered for each order in excess of $15,000 unless one of the conditions below applies:

A. The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays.

B. Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.

C. The order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order.

D. It is necessary to place an order to satisfy a minimum guarantee.

E. For orders exceeding the simplified acquisition threshold, a statute expressly authorizes or requires that the purchase be made from a specified source.

Any contractor delay in production greater than 45 days may require a new First Article at the contractor’s expense.

This will not apply to excusable delays per RFO 52.249-14.

2) The award of future, after DO1, MJU-76 delivery orders for production will follow the ordering procedures listed below:

A) The Government will evaluate price and past performance through a tradeoff methodology. Past performance will be evaluated solely for performance under the MJU-76B IDIQ. The government may limit the quantity of flares, percent split/award, for an offeror that has a Marginal or Unsatisfactory CPARS rating for any evaluation factor within the last 12 months for the base MJU-76/B IDIQ; this limitation is at the sole discretion of the Government.

CPARS evaluation factors include: Technical, Schedule, Management, and Small Business Subcontracting. A Marginal rating may result in a reduction of offeror’s split award to 30% of the buy to budget dollars. An Unsatisfactory rating may result in a reduction of offeror’s split award to 0%, no resulting award.

B) Each awardee will be provided a pricing table with a request for order proposal. The pricing table will require each awardee to propose pricing for order items; e.g. unit pricing on given quantity ranges for USG and FMS Production Units (CLINs 0004, 0005, & 0006), lot pricing for First Article/MSE Testing (CLIN 0003), and/or MSE Administration (CLIN 0002). All proposed pricing must be submitted on the pricing table / TEP Worksheet provided. For subsequent delivery orders (DO 2+), contractors will be allowed to submit new competitive price bids in response to each Fair Opportunity Proposal Request (FOPR) / Letter Request for Order Proposal (LRFOP). The Government reserves the right to establish a unique, FOPR-specific Affordability Cap and evaluation scenario (e.g., evaluating strictly CLIN 0004 production bands at higher quantities like 50,000 units) in individual FOPRs based on available fiscal year funding. Proposals exceeding the specified cap will be excluded from award consideration.

C) The basis for the split-award amounts for all delivery orders competed after the initial award (DO 2+) is expected to be based on the difference in proposed Total Evaluated Prices (TEP) submitted in response to the Fair Opportunity Proposal Request (FOPR). The split percentages for DO 1 are established during the initial source selection in accordance with Section M, Paragraph 2.3. The split percentages identified in Table 1 will be in effect for competitive orders issued for Years One, Two, and Three of the 5 Year Ordering Period. The split percentages identified in Table 2 will be in effect for Years Four, Five, and Option Year. Award values may not equate to exact split percentages due to rounding and the non-splitting of individual FMS country funds. FMS funds may be awarded to only one offeror due to the non-splitting of FMS country funds. The total dollar amount of future delivery orders will be based on the available budget at the time each delivery order is placed; the total dollar amount is the sum of available funds for both USG and FMS.

D) The total evaluated price will include the proposed unit prices, applicable to individual orders, as calculated in the "TEP Worksheet" and the quantity ranges for Production CLINs (0004, 0005, 0006); CLINs 0002 and 0003 will be requested as needed in LRFOP and included in the TEP when requested. For Production CLINs, the Government will utilize pre-determined notional quantities for the listed quantity bands for all order years.

Notional quantities are a quantity within the price bands lower and upper quantity range. Notional quantities may or may not be applied to all the quantity bands for the TEP calculation. The notional quantities will not be disclosed to the Offerors. The TEP calculation will be computed as follows: 1) the Government will multiply the listed quantity by the proposed unit price from each contractor’s proposed prices in selected quantity bands; 2) the Government will then multiply the pre-determined notional quantities by the offeror’s proposed quantity band unit price; 3) the Government will then sum the extended prices of each notional quantity with other priced CLINs (0002 & 0003) as applicable to each order, this summation constitutes the TEP.

Example of TEP Calculation:

CLIN Description Type Lower

Quantity Upper Quantity

U/I Unit Price

Notional Quantity

Extended Price

0002 (MSE) Admin Portion FFP N/A 1 Lo $10

$ 10

0003 First Article/ MSE Testing

FFP N/A 1 Lo $20

$ 20

0004, 0005, Production Price Band 1 FFP

EA

$40

0004, 0005, Production Price Band 2 FFP

$35

Production Price Band 3 FFP

$25

$ 375

0004, 0005, Production Price Band 4 FFP

$20

Production Price Band 5 FFP

$15

$ 675

0007 DATA - Exhibit A NSP N/A

LO NSP

TEP $ 1,080

TEP= $10 + $20 + ($25 x 15) + ($15 x 45)

TEP= $10 + $20 + $375 + $675

TEP= $1,080

E) The Government will split award amounts on each delivery order based on the difference between each Offeror’s TEP percentage as described in the following (Table 1 used for below example):

In the event two offers are submitted in response to a FOPR, the split order award amounts will be based (as close to) on the percentage difference in TEP between each contractor.

Table 1 (DO 2+ Order Years 1, 2 & 3)

Difference in TEP Expected Split

<5% 50% 50%

≥5% & <10% 55% 45%

≥10% & <25% 60% 40%

≥25% & <35% 65% 35%

≥35% & <45% 70% 30%

≥45% 100% 0%

Two Offer Example:

Offeror #1 TEP: $1,080 Offeror #2 TEP: $1,000 The difference in TEP between offeror #1 and offeror #2 is 8% (($1080- $1000)/ ($1000) *100%) which would result in a 55/45 (see Table 1) split with offeror #2 receiving 55% of the total amount in budget dollars and offeror #1 receiving 45% of the total amount in dollars. In this example, if the total amount of budget dollars equals $1,000,000, the order amounts would be as follows:

Offeror #1: $450,000 Offeror #2: $550,000

The percent difference in calculated TEP is determined as follows: (highest-price minus lowest-price), divided by the lowest-price, multiplied by 100%. The percent difference in the calculated TEP will be rounded to the nearest whole number. When calculating the total quantity of flares based off the order amount, the government will round to the nearest whole flare.

Table 2 (Order Years 4, 5, & Option Year)

Difference in TEP Expected Split

<5% 55% 45%

≥5% & <15% 60% 40%

≥15% & <25% 65% 35%

≥25% & <45% 70% 30%

≥45% 100% 0%

Note: Option year CLINs are not restated in Procedures. For the purpose of these instructions, Option year CLINs shall be interpreted to represent the same CLINs referenced above, except for the first digit replaced with “1” in CLIN numbering. The Letter Request for Order Proposal will communicate when option CLINs are being requested.

3) The award of future MJU-76 source directed delivery orders will follow the ordering procedures listed below:

A. The procuring contracting officer (PCO) will issue an RFP to the designated source per the country's Letter of Offer and Agreement (LOA)/ International Agreement of Competitive Restrictions (IACR). The PCO may request pricing and conduct negotiations in accordance with applicable regulations. The sole offeror will be required to provide certified cost or pricing data on any proposal exceeding the threshold stated in RFO 15.403-4(a)(1), or other than certified cost or pricing data if the proposal does not meet the threshold and price analysis alone is insufficient.

B. These same procedures will be followed in the event only one awardable offer is submitted in response to a competed delivery order IAW RFO DFARS 216.505-70.

4) Performance can be authorized under this contract only by issuing individual orders signed by the PCO. Orders shall be issued by the PCO in writing and shall be dated and numbered. Orders will set forth as applicable (1) the supplies, data, or other items being ordered and include attachments, (2) the quantities to be furnished, (3) delivery dates, (4) packing and shipping instructions, and (5) funds obligated. An order is considered “issued” when the government electronically signs and distributes the order into the Electronic Document Access (EDA) System. The issued order will then be electronically delivered to the contractor’s representative via email. Order modifications thereto may be issued only by the PCO or by the administrative contracting officer (ACO).

5) These ordering procedures do not guarantee the contractor issuance of any delivery order above the minimum award amount guarantee for this contract.